The $1 Billion Hidden Cost of Construction: On-Site Construction Theft
Whether you’re just starting to research modular construction or you’ve got a modular project, or two, under your belt, one of the first things you’ll learn is that modular construction often results in shorter timelines and smaller budgets than traditional construction. Recent surveys show that the average modular building costs $100 – $125 per every square foot while a traditionally constructed building costs $180 – $200 per every square foot. In addition, modular buildings are ready for occupancy up to 50% faster.
These time and cost savings are possible because of the ability to overlap off-site construction and on-site preparation during the modular construction process. But there is another hidden cost of construction that causes traditional construction to be more expensive . . . construction site theft.
According to the National Equipment Register, construction job site theft and vandalism cost the industry up to $1 billion each year, a total that’s jumped 10% in the past twenty years. Some of the most popular items stolen from construction sites include:
- Heavy equipment
- Copper and scrap metals
- Lumber and drywall
- Power tools
- Appliances and furnishing
When builders are victims of construction theft, it’s not just the cost of replacing their equipment that affects their bottom line. They will also have to deal with these hidden costs of construction theft:
- Renting replacement equipment to finish the job
- Purchasing new building materials to replace stolen items
- Project downtime and missed deadlines
- Delaying future projects
- Increased insurance premiums
So, how can modular buildings offer an alternative to break the trend of rising construction costs due to on-site theft? A factory setting that can be more thoroughly secured is the answer. The majority of modular construction takes place off-site in a factory environment, meaning lumber; drywall; electrical, plumbing, and roofing supplies; power tools and most construction equipment is stored in a locked facility at the end of each day. This makes them much less vulnerable to theft and keeps costs down for modular builders.
To cut out the hidden cost of construction, consider modular construction on your next building or expansion projects. Contact Vanguard’s modular building experts for a quote.