10 Pitfalls to Avoid in Modular Construction
Delivering on the Promise: Lessons from 200+ Modular Projects
At the Bisnow Bay Area Affordable Housing Summit, Guerdon founder Lad Dawson gave a keynote titled “Modular Construction Done Right.” Drawing on experience from over 200 West Coast modular developments, Lad unpacked why some modular projects fail to deliver on their promise—and what developers can do differently.
Here are his top 10 takeaways:
#10. The Cost per Square Foot Fallacy
Focusing on unit cost per square foot can lead to misleading comparisons. Instead, evaluate total cost per living unit and maximize factory scope to minimize costly on-site work.
#9. Choosing the Lowest Bidder Over the Right Partner
Modular success requires more than manufacturing—it takes a partner with a proven track record, integrated services, and robust QA systems. Vet them thoroughly.
#8. The Myth of Precon Schedule Recovery
Delays in preconstruction—like late material procurement—cascade through the entire timeline. Plan early, and don’t assume you can “make it up later.”
#7. The Moving Target of Design Lock
Mid-production changes in a modular environment are expensive and disruptive. Enforce clear design lock deadlines with full team alignment.
#6. Neglecting Precision and QA
Modular builds demand tight tolerances. Invest in multi-stage quality checks to ensure modules ship right the first time.
#5. Ignoring Supply Chain Strategy
Secure 65–75% of materials early. Leverage manufacturers’ existing supply networks and standardize specs to reduce cost and risk.
#4. Skipping the Prototype Phase
A first-built prototype can catch issues before mass production. It’s your chance to fine-tune details and streamline on-site coordination.
#3. Exposing Modules to the Elements
Weather-related damage is preventable. Every stage—from wrapping to crane set—needs protocols for waterproofing and accountability.
#2. Lack of Collaboration Between Factory & GC
Success hinges on early, integrated teamwork. That means value engineering, scope clarity, and shared responsibility on-site.
#1. Backward Design Thinking
Designing a building first and trying to “modularize” it later leads to inefficiencies. Involve the factory from day one and design for modular.
Lad’s formula for modular success is simple:
- Select your factory early
- Form an integrated team from the start
- Standardize and optimize designs
- Continuously improve from project to project
Want to avoid common mistakes and realize modular’s full promise of better quality, faster schedules, and lower costs? Start with the right strategy.
