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The Future of Construction: Modular Construction

In this Insights article, we discuss modular construction and highlight its benefits while exploring the regulatory compliance challenges that it presents.

A crane on top of a building hoisting a heavy object

With the global demand for newly constructed commercial, industrial and residential buildings expected to increase by four percent over the next decade, the industry is actively seeking new and innovative methods of construction to help meet that need.

Modular construction is one of several modern methods of construction (MMC) increasingly being used by architects, designers and building contractors to speed the development of new construction projects and to improve the quality, reliability and energy efficiency of the final building product. In fact, modular construction is one of the fastest-growing construction methods, with the global modular construction market expected to grow from $95 billion (USD) in 2025 to more than $150 billion (USD) by the year 2032.

Modular construction offers many significant advantages over traditional construction methods. However, just like traditional construction methods, modular construction components are subject to building standards and codes to support compliance with applicable regulations and safety requirements. Proactively demonstrating compliance with these requirements can broaden market acceptance of modular components and contribute to more efficient building approval processes.

What is modular construction?

Modular construction is a process in which frequently used sections, components and materials (or “modules”) are manufactured or prefabricated off site under controlled conditions for use in the construction of a new building or structure. This approach allows for the uniform production of these modules so that they align with the prescribed design specifications. Then, when the modules are assembled on site, the final structure meets the building regulations and standards applicable to a given construction project.

The modern use of modular construction techniques has been with us since the early 2000s, when developers were exploring new ways to build residential homes and apartments more quickly and economically. More recently, the use of modular construction has expanded to include commercial and industrial building projects.

A major example of its broader application is the 1000-bed Huoshenshan Hospital in Wuhan, China, which was built in just 10 days in early 2020 at the beginning of the COVID-19 pandemic. Other examples of modular construction include Terminal 2E at the Paris-Charles de Gaulle Airport and The Stack, a 28-story residential building constructed in 2014 in the Inwood section of New York City.

What are the advantages of modular construction?

Using modular technologies and techniques in the design and construction of new buildings offers a number of important benefits, including:

Increased sustainability — The controlled manufacturing of modular systems and components provides more opportunities to use environmentally sustainable materials and energy-efficient production practices, thereby saving energy and reducing overall carbon emissions.

Reduced waste — Similarly, more direct control over the production of modular components contributes to efficient use of materials and the ability to easily reuse excess materials. Both factors support efforts to reduce the amount of waste generated.

Higher quality — Off-site production of modular components allows builders to bring increased attention to the quality of materials and production methods, thereby helping to ensure that the finished modular components meet the most exacting standards and requirements.

Faster completion time — Projects using modular construction systems and components can significantly accelerate the pace of on-site construction, allowing buildings to be constructed and completed more quickly, without regard to weather conditions or other site-specific factors.

Lower overall construction costs — In the end, these — and other benefits of modular construction — can help to reduce construction time and the associated labor costs, thereby lowering the overall financial investment required for construction projects.

Compliance challenges of modular construction

Construction projects of all types are subject to compliance with a wide range of both international and domestic standards, codes and other regulations. In the U.S., for example, most state and local governments require that buildings and their systems must be compliant with requirements outlined in the National Electrical Code® (NEC) and further detailed in individual standards by the National Fire Protection Association (NFPA) prior to receiving an occupancy permit.

In addition to general requirements, some types of industrial and commercial structures are subject to further regulations that address quality and safety considerations specific to the intended use of the structure. For example, data centers and other buildings designed to support the communications infrastructure are subject to more strict fire safety codes, which require the installation and maintenance of more robust fire protection and suppression systems.

For traditional structures that are entirely built on site, assessing compliance typically involves regular in-person inspections by local officials and building code authorities who verify that the constructed structure aligns with the applicable requirements. Large or complex structures will often require multiple visits by local code officials throughout the construction process, and the issuance of a permit can extend for weeks — or even months — beyond the project’s actual completion date.

This process can become even more complex when modular construction and other MMC approaches are applied. Local building authorities typically do not have the resources to inspect modules and modular components produced off site and cannot evaluate systems and equipment pre-installed within modular walls or behind panels.

Therefore, builders of projects that include modular construction should take a proactive approach in addressing building code compliance requirements as they apply to modules and modular components, including inspecting modules at the facilities where they are produced.

How can UL Solutions support compliance with regulations?

UL Solutions offers developers and builders seeking to leverage the benefits of modular construction (and other MMC technologies) a complete portfolio of inspection services that can help you bring your construction project to completion on time and on budget.

Our approach starts with a comprehensive review of the design and construction plan for modular systems and components intended for a given construction project. Prepared by UL Solutions’ team of experts, this review evaluates the specific regulatory and code requirements and standards that are applicable in the context of the project, as well as the anticipated gaps between the module as designed and the applicable building and safety codes and standards. This allows the builder to make the necessary changes to the module design or its construction, thereby supporting efforts to develop modules that meet or exceed codes or other requirements.  

From there, we develop a rigorous plan for the review and inspection of individually produced modular systems and components at their point of production. UL Solutions has building code and standard experts throughout the U.S. and around the world who can conduct in-person inspections of both the module production process and the finished projects.

Finally, for those project developers and builders using non-listed building products, UL Solutions can provide a product certification or an on-site field evaluation of products that can be used to support claims of compliance with code requirements or other applicable regulations.

Conclusion

To successfully meet the anticipated future demand for more new building structures, modular construction and other MMC methods offer developers and contractors many advantages, including faster project completion times, higher-quality projects, reduced energy consumption and lower costs. At the same time, compliance with building codes and other regulations is essential.

UL Solutions stands ready to help modular construction developers achieve compliance via comprehensive design reviews, on-site inspections and product evaluations. Our global experts work alongside your team to spot potential code issues early, keeping your innovative projects moving forward smoothly. With UL Solutions as your partner, you can deliver compliant, high-quality structures while still enjoying the speed, sustainability and cost benefits that make modular construction such a smart choice for today’s building needs. 

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