Did you know despite the numerous advantages of modular construction, many North American owner organizations remain reluctant to fully embrace off-site project delivery methods. According to recent research, only 38% of owner organizations have a high rate of acceptance of off-site projects, and nearly 50% still opt for the traditional design-bid-build approach. Obstacles to the widespread acceptance of modular include the following:
• Image Problem. Modular has a poor image due to traditional misconceptions about quality, price, and the potential for customization. Modular is often associated with low-quality, uniform, aesthetically unappealing housing.
• Lack of awareness. More than 70% of general contractors say their primary reasons for not choosing modular construction are: 1) clients aren’t requesting modular projects and 2) architects aren’t developing designs for modular projects. Due to the
irregular nature of demand, off-site factory space is underutilized.
• Risk Aversion. The building industry is risk averse. Both builders and clients are overly cautious when it comes to adopting new processes and technologies. Contractors, in particular, are wary of investing significant funds in off-site factories. Further, there is increased risk involved in committing to particular off-site suppliers due to the underdeveloped state of the market.