Knowledge Base
Modular construction, answered.
Everything we get asked about cost, schedule, code compliance, logistics, design, quality, and sustainability. If you don't see your question here, reach our team directly.
Cost and Pricing
How much does Factory Modular construction cost per square foot?
- Indicative pricing runs $103 to $147 per square foot depending on building type and unit mix. Townhouses and single-family homes price lowest because they share no corridor area. Apartments and hotels price toward the upper end because of higher wet-room density and structural redundancy. These figures cover module manufacturing, ocean freight, port logistics, and onshore transport. Site work, foundation, permitting, and crane installation are separate.
Why is Factory Modular up to 40% less than conventional construction?
- Three structural cost differences. First, factory labor in Vietnam runs a fraction of U.S. union rates for equivalent skilled trades. Second, factory environments eliminate the schedule overruns and material waste that drive site-built budgets over budget. Third, parallel scheduling means the modules are 98% complete by the time you finish your foundation, compressing the total carry period dramatically.
What costs are not included in a Factory Modular quote?
- Site preparation, foundation work, local building permits, the crane and rigging contractor, final utility connections, and common-area finishing on multifamily projects. These belong to your local general contractor and vary heavily by site, jurisdiction, and project type. We can recommend qualified GCs in California if you need one.
Is the preliminary estimate a fixed price?
- No. The estimator and indicative pricing give you a reliable range for feasibility analysis, typically within plus or minus 10% of the eventual fixed-price contract. The fixed-price contract is issued after design development, when scope, finishes, and program are locked. After that, there are no change orders.
Are there any hidden fees?
- No. Our supplier margin is baked into the rates you see, and exclusions are itemized in writing on every quote. The most common surprise on modular projects is site-work cost, which is your GC's scope, not ours. We flag this on every preliminary estimate so you can budget accurately.
How does financing work with modular construction?
- Most lenders treat factory-built modular as a deposit-and-progress-payments structure. You pay a deposit when the factory order is placed, progress payments tied to factory milestones (typically structural completion, MEPF rough-in, finish-out), and a final payment at delivery. Construction loans typically draw on a parallel schedule for site work. The compressed total timeline means a shorter carry and less interest expense than conventional builds.
Schedule and Delivery
How long does a Factory Modular project take from groundbreak to occupancy?
- About 8 months for typical multifamily, hotel, and workforce housing projects. Conventional site-built equivalents take 18 to 24 months. The schedule compression comes from factory production running in parallel with site work, not in sequence.
How can factory production run in parallel with site work?
- Once design development is complete, the factory begins module production while your civil contractor breaks ground on site. By the time foundations and underground utilities are finished, the modules are arriving at the U.S. West Coast port and trucking to site. The crane sets them in days, then your GC commissions utilities and finishes the common areas. The total elapsed time is roughly the length of the factory build, not the sum of factory build plus site build.
What happens if the factory hits a delay?
- Factory production schedules are tracked weekly with photo and video documentation on the Conqa QA platform. Any schedule slip is visible early, with enough lead time to adjust the construction-loan draw schedule and crew mobilization. Because the modules are weather-protected indoors, the factory does not experience the weather-driven slips that hit U.S. site builds.
When does the construction loan start drawing?
- Typically at site mobilization, the same as conventional construction. The difference is the total draw period is much shorter. A modular project that completes in 8 months versus a conventional 20-month build means roughly 60% less interest carry on the construction loan.
Code and Compliance
Are Factory Modular buildings IBC code compliant?
- Yes. Modules are engineered and built to the International Building Code for the jurisdiction where they will be installed. Structural, mechanical, electrical, and fire-rating requirements are designed in from the start. Third-party inspections at the factory document compliance before modules ship.
Are Factory Modular buildings HUD code compliant?
- For HUD-funded projects, yes. We coordinate with the project sponsor and the HUD field office on certification requirements before factory production begins. Our team has shipped projects funded under HUD workforce housing and transitional housing programs.
How does California seismic code work for imported modules?
- Modules are engineered to California seismic design categories for the specific project location. Structural connections, anchor systems, and module-to-foundation details are designed by licensed California structural engineers and reviewed by your project structural EOR. Inspections at the factory document weld quality and connection integrity before modules ship.
How does inspection work for buildings constructed overseas?
- Modules are inspected continuously at the factory by Conqa-platform inspectors, with photo and video documentation of every assembly stage. A U.S.-certified third-party inspection agency reviews and signs off on the factory build to satisfy your local building department. Any on-site inspections for foundations, connections, and utility tie-ins are handled by your local jurisdiction in the normal way.
How are local building permits handled?
- Permits are your contractor's responsibility, the same as on any project. We provide the full module specification package, structural calculations, MEPF documentation, and third-party inspection reports needed for permit submission. We have shipped projects permitted across California, Nevada, Texas, and the Pacific Northwest.
Logistics and Shipping
How do modules ship from Vietnam to U.S. project sites?
- Modules are loaded onto container ships in Vietnam, cross the Pacific to a primary West Coast port, then truck overland on permitted wide-load transport to your site. Ocean transit takes roughly three weeks. Onshore trucking is typically same-day or next-day for California, several days for Mountain West or beyond.
What are the maximum module dimensions for road transport?
- Module dimensions are designed within the permitted wide-load envelope for U.S. interstate transport. Standard maximums are roughly 16 feet wide and 65 feet long, with case-by-case permits for larger envelopes. Module heights are designed to clear interstate overpass minimums on the route to your project.
What if the project site has restricted access?
- Tight sites are common and manageable. The team conducts a route survey from the port to your site early in design development, accounting for low overpasses, weight-limited bridges, turning radii, and any seasonal road restrictions. If route constraints affect module dimensions, those constraints feed back into the design before production begins.
How are modules protected during ocean transit?
- Modules ship sealed and weather-tight. Finished interiors are protected with internal shoring and protective films. Exterior cladding and rough openings are sealed to prevent water and dust intrusion. Spot checks happen at port arrival before trucking is dispatched.
Design and Architecture
Can my existing architect work with modular?
- Yes, if they have modular experience. Most architects without modular experience design buildings that cannot be efficiently built in modules, requiring redesign and lost fees. Our recommended path is to bring our integrated architecture team, Studio 3Eight, in early. They are modular-native, provide full BIM documentation, and coordinate directly with the factory engineering team.
What is BIM coordination and why does it matter for modular?
- Building Information Modeling is a 3D coordinated model that includes structure, MEPF, finishes, and clash detection across all trades. For modular construction, BIM coordination prevents the most expensive class of error: a module arriving on site that does not align with what the foundation or adjacent modules expect. Our team requires full BIM coordination before production starts.
What design flexibility do I have with modular?
- Significant flexibility within the dimensional envelope of road-transportable modules. Unit layouts, finishes, fixtures, facade systems, roof profiles, and circulation can all be customized. The constraint is the module footprint and the way modules join together. Buildings designed within those rules look identical to conventional construction in the finished state.
How are modules joined on site?
- Modules are crane-set onto prepared foundations and connected at the floor, wall, and roof seams. Structural connections are welded or bolted per the engineering design. MEPF systems are joined at pre-installed quick-connect points. Interior seams are taped, finished, and painted on site so the finished interior is continuous and shows no module joint lines.
Quality and Materials
What materials are used in Factory Modular buildings?
- Structural steel frames, code-rated wall and floor assemblies, commercial-grade MEPF systems, and finish-level interior and exterior materials specified to match the project's design intent. Material specifications match or exceed equivalent U.S. site-built construction. Specifications are reviewed and approved by the project architect and engineering team before production begins.
How is quality assurance documented?
- Every stage of factory production is documented on the Conqa platform with photo, video, and inspector sign-off. The QA record covers structural welding, MEPF rough-in, finish installation, and final factory inspection. The complete record is available to the project owner, GC, and lender on request. This level of documentation exceeds what is available on most site-built projects.
What happens if a defect is discovered after installation?
- The factory carries product warranties that extend to the installed condition. Warranty work for module-level defects is coordinated through our team. Site-related defects, such as installation, utility connection, or common-area work, are warrantied through your general contractor under the standard contract terms.
What is the expected lifespan of a Factory Modular building?
- Same as equivalent conventional construction. Steel-frame modular buildings have a design life of 50 years or more, with major systems (roofing, MEPF, finishes) on the standard refurbishment cycles for the building type. Multiple Factory Modular projects from the early 2010s are still in service today.
Sustainability and ESG
How much CO2 does modular construction save versus conventional?
- Roughly 43% lower CO2 emissions during construction compared to equivalent site-built projects, based on peer-reviewed research (Kouhirostami and Chini, Modular and Offsite Construction Summit, Edmonton 2022). The savings come from controlled factory environments, reduced material waste, and shorter site-equipment runtime.
Is modular construction more sustainable than conventional?
- On embodied carbon during construction, yes, by roughly 43% per the cited research. Operating carbon depends on building envelope and MEPF specifications, which are independent of factory versus site assembly. Factory Modular's controlled assembly enables tighter envelopes and better-coordinated insulation than typical site-built construction, which can also reduce operational energy use.
Are modules recyclable at end of life?
- The structural steel frames are recyclable to standard scrap-steel processes. Most MEPF components, fixtures, and finishes follow the same end-of-life pathways as their site-built equivalents. The factory production process generates roughly 80% less construction waste during the build versus equivalent site-built projects.
Project Types and Sizing
What is the minimum project size?
- For hospitality, 25 or more keys is the threshold below which logistics and mobilization erode the cost advantage. For multifamily, the floor is typically 24 units. For workforce or transitional housing, smaller pilot projects are evaluated case-by-case. For single-family or townhouses, projects with multiple homes are more efficient than one-off custom homes.
What is the maximum project size?
- We have shipped projects of 180 units and more. The constraint is not factory capacity but the project's site, logistics, and crane-set sequencing. Larger projects are typically broken into phased deliveries timed to the foundation completion schedule.
Can modular construction work for mid-rise apartments (5-6 stories)?
- Yes. Mid-rise modular is one of our highest-volume building types. Structural steel modules stack efficiently up to six stories with corridor modules between unit blocks. Above six stories, modular is feasible but starts requiring more site-built structural elements to handle wind and seismic loads, which can reduce the cost advantage.
Does modular construction look like modular when finished?
- No, when designed properly. Module joints are taped, finished, and painted on site so interior surfaces are continuous. Exterior facades can be installed at the factory or as a site overlay so the building reads as conventional construction. Hotel guests and apartment residents typically cannot tell a finished modular building from a conventionally built one.
Can Factory Modular handle workforce or transitional housing?
- Yes. Workforce, transitional, and emergency housing are major use cases for modular. The combination of fixed-price contracting, 8-month schedules, and HUD code compliance makes modular a strong fit for projects where speed-to-occupancy and budget certainty drive the funding case.
Working with Factory Modular
How do I get started?
- Use the project estimator on this site to generate an indicative cost for your program in under two minutes. From there, we either schedule a call to discuss the program in detail or begin a feasibility study against your specific site. There is no commitment at either step.
Can I tour the factory?
- Yes, for active projects. We coordinate factory tours in Vietnam for development partners who are in design development or production. Tours are not offered for early-stage feasibility, but we can share factory tour video and the Conqa QA documentation early in the process.
Where is Factory Modular based?
- Our U.S. operations are based in the Temecula Valley, California. Our manufacturing partner operates four factories in Vietnam totaling more than 40,000 square meters of production area. Our integrated architecture team, Studio 3Eight, is based in Vietnam with full BIM and modular-native design capabilities.
Who actually builds the modules?
- Our manufacturing partner in Vietnam, in operation for more than 25 years, with over 450 full-time employees and an in-house design and engineering team of 70 or more. They have shipped completed modular projects to the United States, Australia, New Zealand, and the United Kingdom.
What does the contract look like?
- A fixed-price supply contract for modules, ocean freight, and onshore transport, with progress payments tied to factory milestones. Site work and general contracting are handled separately under your GC's contract. Together they form your total project budget, which is fixed once design development is complete.
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