Analysis of Costs and Benefits of Panelized and Modular Prefabricated Homes

Abstract

This study presents a comprehensive analysis of the costs and benefits of the two main construction methods in the prefabricated homes category: panelized and modular. The main goal is to provide a framework of the implications and tradeoffs of both construction methods for single family homes, as well as determine which is more cost effective. The methodology consists of a qualitative analysis that includes the overview of the benefits of each construction method over the other, and quantitative analysis which compares the cost of the finished homes per square foot to determine which one is more cost effective. Both analyses are conducted by evaluating two case studies of single family homes with similar characteristics, one built with panels and the other with modules. The benefits identified for panelized homes have to do with transportation, equipment and machinery, and insulation technology; on the other hand, the benefits for modular homes are related to quality control, on-site work and trades. The quantitative results showed that the modular construction method is only marginally more cost effective than the panelized construction method under the given circumstances. As a second part of the quantitative analysis, the panel case study was calculated as if it would be built with modules, and the results of both analyses were consistent, but both with the same limitations. Through the proposed method, it is possible to evaluate the cost effectiveness of the two construction methods for single family prefabricated home projects which could serve as a valuable tool for decision making.