Commercial Modular Construction: A Straight Answer on Whether It Fits
Modular is a method, not a type. It is very good for some commercial projects and genuinely wrong for others, and the difference is knowable early. This page covers what modular does to a commercial project, which of the five verticals we build in, and the specific conditions that make us tell a developer to build conventionally.
Irontown Modular is a commercial modular construction company operating a 70,000 square foot factory in Spanish Fork, Utah, and serving the Western US: Arizona, California, Colorado, Idaho, Montana, Nevada, Oregon, Utah and Wyoming. Founded in 1984, it builds hospitality, multifamily, workforce housing, resort cabin and glamping projects as finished modules, with 551 quality control checkpoints per module. Typical projects run 20 to 100 modules. Built work includes 50 cabins at Tenaya Lodge near Yosemite and a 4-story, 32-unit apartment building in Salt Lake City.
What commercial modular actually is
Volumetric modules are built in a factory, finished inside, then transported and craned into place on prepared foundations. They are built to the same codes as site-built, IBC and IRC, and are regulated at the state level rather than locally. The result is a permanent building.
The confusion worth clearing up: modular is not a category of building. It is a way of building. A modular hotel is a hotel. A modular apartment building is an apartment building. Nothing about the finished asset is unusual, including how it appraises and how it is financed.
What it changes about a project
site work and factory production run at the same time
- Site work
- Factory, set and finish
Weather stops being a schedule variable for the vertical construction, because it happens indoors. In seasonal markets this is frequently the largest single advantage.
The workforce is regular and local to the factory rather than commuting to a remote site, which is why the advantage grows as the site gets harder.
Decisions move earlier. Design has to be committed before production starts. This is the real cost of the method and it is the thing owners most often underestimate.
What it does not change
Site work, utilities, grading and foundations remain conventional scope on a conventional schedule. On spread-out projects this is often the larger share of the budget. At Tenaya, land and infrastructure were $13.8M of a $22M project against $6M in cabin modules.
Entitlement does not get faster. If approvals are the bottleneck, modular does not help.
Cost is not automatically lower. In markets with available labor and a normal building season, direct costs often land close to even. The reliable gains are schedule and cost certainty.
The five verticals we build
Hospitality. Hotels and hotel expansions, 1 to 5 stories. See the modular hotel construction page.
Multifamily. Apartment buildings and townhomes, including supportive and affordable housing, up to 4 stories with an elevator. See the modular multifamily page.
Workforce housing. Employee and staff housing for resorts, operators and public agencies. See the workforce housing page.
Resort. Standalone guest cabins on resort properties, built as permanent structures. See the resort cabins page.
Glamping. Park model units built to ANSI 119.5 for campground and RV resort operators. See the glamping page.
Why we say no
We turn down projects, and we would rather do it on the first call than the fifth. A project that does not fit the factory costs the owner money and costs us a reference.
Under about 10 modules, mobilization, transport and crane costs do not spread across enough units.
Highly customized designs where little repeats. Repetition is the economic engine and without it you pay for a factory you are not using.
Unresolved entitlements or approvals fragmented across agencies. Production cannot start against a design that might still change.
Teams that need to keep changing design deep into construction. That is a legitimate requirement and it is a conventional-build requirement.
Sites that cannot take a truck and a crane.
Projects outside the Western US, because transport distance eventually eats the advantage.
Fit criteria
We say no
Works when the units repeat closely
The sweet spot
You want a bigger factory than ours
We have built at 12, 15 and 16 modules when the site or the season made it worth it.
The lane, stated plainly:
- 20 to 100 modules is the sweet spot. Down to about 10 when the units repeat closely or the site is hard to build on conventionally. Under about 10 the math usually fails. Above 100, you want a larger factory.
- Roughly $3M to $10M of modular scope.
- Hospitality, multifamily, workforce housing, resort cabins, glamping.
- Western US: Arizona, California, Colorado, Idaho, Montana, Nevada, Oregon, Utah, Wyoming.
- Repeating unit layouts rather than one-off custom geometry.
- Sites where labor, weather, season or access is the binding constraint. That is where the method pays.
- Owners who can commit to design early.
When this is the wrong call
If any of these describe your project, call us and we will say so directly:
- Under about 10 modules, or a single custom building.
- Every unit different.
- Entitlements unresolved.
- Design still moving.
- No crane or truck access.
- Outside the nine states.
Common questions
What is commercial modular construction?
Buildings assembled as finished volumetric modules in a factory, then transported and craned onto prepared foundations. Built to the same IBC and IRC codes as site-built, regulated at the state level, and permanent once set.
Is modular construction cheaper?
Sometimes, and it is the wrong first question. In remote or labor-scarce markets direct costs can come in meaningfully lower, as at Tenaya where they landed about 30 percent under the site-built budget. In easy markets they often land close to even. The dependable advantages are schedule and cost certainty.
How much faster is it?
It depends entirely on how constrained your site is. Reported time savings on our projects range from about 6 months on an accessible urban infill site to about 18 months in seasonal mountain and coastal markets. The gain comes from running factory and site work simultaneously.
What size projects do you take?
20 to 100 modules is the sweet spot, and we build down to about 10 when the units repeat closely or the site is hard to build on conventionally. Roughly $3M to $10M of modular scope either way. A small, high specification project in a remote resort market can reach $3M on its own. Larger than 100 modules is better served by a bigger factory.
Do modular buildings meet code?
Yes. Same IBC and IRC codes as site-built, plus ANSI 119.5 for park model units. Modules are inspected during construction in the factory, station by station, with 551 quality control checkpoints per module.
Will it look modular?
No. Cladding, glazing and detailing are specified by your architect and largely applied after the set. Our Salt Lake City project met historic district approvals with brick, Hardie and stucco.
How does financing and appraisal work?
A modular commercial building is a permanent structure on a permanent foundation and appraises as real property. Park models are the exception, being classified as recreational vehicles and often financed as chattel.
Where do you build?
The factory is in Spanish Fork, Utah, and we serve the Western US: Arizona, California, Colorado, Idaho, Montana, Nevada, Oregon, Utah and Wyoming.
When should we involve a factory?
At feasibility, before design is complete. Modular decisions are cheapest early and most expensive after the drawings are done. The sooner we are involved, the better the answer we can give you, including when the answer is that modular is wrong for your project.
"The sooner we can be involved, the better."Kam Valgardson, President, Irontown Modular
Still early? Take the project sheets.
One page each on Tenaya, TOSA, and Big Sur: what the developer was facing, what modular did, and the numbers as they landed. Name and email, nothing else.
Have a commercial project you want a straight read on?
A feasibility review looks at economics, schedule, logistics and your goals, and tells you if it does not pencil. Consultative, not a sales process.
Request a feasibility reviewor call 1-877-849-1215