What drives the cost of modular construction

Pacarada Modular Building Systems, Kelkheim (Taunus), Germany · Last updated: September 2026

What does modular construction cost per square metre? There is no reliable flat price, because, as with conventional construction, the cost depends on the project. But some factors have a particularly strong effect in modular construction. Knowing them early lets you control the cost.

1. Repetition and grid

The more identical or similar modules a building has, the more efficient series production in the factory becomes. A well-thought-out grid is therefore one of the biggest cost levers. Variety is still possible: through the facade, the combination of floor plans and the finishes.

2. Early, finalised design

The factory works from fixed drawings. Changes after production starts are expensive. It pays off when the architect, structural engineer and modular construction partner plan together from the start and the design is matched to the system.

3. Degree of prefabrication

The more is finished in the factory, the less work is left for the site. In the Pacarada system this includes finished bathroom pods and a plug-in electrical installation as in the automotive industry, prepared in the factory and simply plugged together on site.

4. Transport and assembly

The size and weight of the modules, the distance between factory and site, the crane class and site access all affect the cost. Where large room modules would be uneconomical to transport, the Pacarada system can work with columns and beams (1D) or flat wall and floor elements (2D).

5. Site and foundations

Ground conditions, foundations and connections to water, drainage and power cost much the same in modular as in conventional construction. A soil survey therefore belongs at the start of every cost estimate.

6. Building class and standards

Height and use determine the requirements for fire protection and sound insulation. The energy standard affects costs and possible funding. With the Pacarada system a new building with 123 apartments was built at In der Au 18 in Frankfurt am Main to the Effizienzhaus 40 standard with QNG and DGNB.

7. Construction time as a cost factor

Time is money: a shorter construction time reduces interim financing and site costs and allows earlier use or letting. When an office building at Holzhofallee 36 in Darmstadt was converted into 197 homes, construction with the Pacarada system was 44% faster than conventional construction.

8. Life cycle

Because everything in the Pacarada system is bolted and plugged, a building can later be converted or dismantled, and its components can be reused instead of being disposed of. That counts when you look not only at construction costs but at the cost over the building’s whole service life.

The factors at a glance

Factor	What you can do
Repetition and grid	Match floor plans to a common grid
Design	Involve the modular partner before the design is fixed
Prefabrication	Have as much as possible finished in the factory
Transport and assembly	Check site access and crane position early
Site and foundations	Start with a soil survey
Standards	Settle the energy standard and funding early
Construction time	Plan factory production in parallel with site work
Life cycle	Consider dismantling and reuse from the start

Frequently asked questions

Is modular construction cheaper than conventional construction?

Not automatically. Modular construction mainly saves time and makes costs more predictable: construction time is usually shorter, fewer skilled workers are needed on site, and risks such as weather or delays in individual trades have less effect. What that means in euros depends on the project.

When should I involve a modular partner?

As early as possible, ideally before the design is fixed. The building can then be matched to the system grid and later redesigns can be avoided.

How do I get a cost estimate for my project?

Send us the building type, project location and, if available, drawings or a site plan via the contact form. Pacarada Modular Building Systems in Kelkheim (Taunus), Germany, will give you a first assessment for your site.