Colorado-Real-Estate-Journal_458967

Page 16 — Multifamily Properties Quarterly — May 2025 www.crej.com DESIGN D evelopers today are manag- ing more than just projects. They are managing volatil- ity. Material costs are fluc- tuating, labor remains con- strained, capital is harder to secure, and approval timelines are uncer- tain. These pressures require early decisions that build in adaptability and reduce risk. These challenges are pushing developers to consider alterna- tive construction methods. Off-site modular box and panelized con- struction methods are gaining trac- tion, especially for affordable and workforce housing, but to capitalize on these benefits, flexibility must be built into the design from the beginning. We have spent years refining a modular box-friendly design approach that anticipates the spatial and structural parameters required for modular box construc- tion – such as standardized unit widths, vertical alignment and transportation clearances – with- out locking in a final method. This way, developers can delay the con- struction decision until more cost or market information is available, without redesigning from scratch. For example, a project designed within modular box dimensions can shift to on-site stick-built or off-site panelized construction with minor adjustments. The reverse is rarely possible. A modular box-first design approach allows for more flexibility later in the process. Panelized construction where wall and floor panels are prefabricated off-site streamlines site work, reduces labor needs and minimizes waste. It offers some of the efficiency gains of modular box construction while allowing greater flexibility for site conditions. Our modular box-friendly design approach supports an informed comparison between modular, panelized, and traditional construction methods, allowing developers to select the right sys- tem based on project constraints and market conditions. The key planning steps include: n Understanding builder specifica- tions. Each modular box fabricator has its own requirements, from box size limits to utility placement. Starting with these specifications avoids rework later. n Structuring unit layouts around modular box logic . Floor plans must be broken into modular boxes that optimize transport and assembly. Efficient design supports both cost control and fabrication feasibility. n Adapting to evolving changes. A modular box-friendly design allows developers to pivot without compromising the plan. If financial assumptions or market dynamics change, the project can still move forward using another method. When the design accommo- dates multiple construction types, developers can get real compara- tive estimates, which create room for negotiation and smarter value engineering – especially useful in a climate of rising interest rates and fluctuating bids. While modular box construction isn’t a fit for every project, it should be considered for projects with: limited local labor or subcontractor availability; short or seasonal con- struction windows; sites in hard-to- access or weather-sensitive regions; affordable housing projects where modular can be combined with funding like LIHTC or Proposition 123; and urban infill developments where minimizing on-site disrup- tion is critical. In these cases, modular box con- struction can help maintain sched- ule certainty and quality control. Because much of the construc- tion happens in a factory, weather delays and trade scheduling con- flicts are reduced, and simultaneous site and factory work compresses timelines. Still, modular box construction is not a silver bullet. It can require upfront costs to hold pricing and a space in the manufacturing line. It also demands a high level of coor- dination at the front end of the project. Transport logistics must be mapped out early, and site access Uncertainty: Designing for construction flexibility Doug Van Lerberghe Principal, director of strategic ventures, Kephart Please see Van Lerberghe, Page 26 A recent affordable housing project began with Kephart’s modular box-friendly design approach and ultimately shifted to on-site stick-built construction.