'Building Smarter Is Not Optional': The Benefits Of Modular Construction In Today's Development Landscape

For the past five years, the construction industry has struggled to keep projects on time and on budget. Every change order can push schedules back by months, even years, leaving developers exposed to risk at every turn while constantly juggling trades, material supplies and approvals. Outdated processes and site-dependent timelines make certainty nearly impossible.

These market conditions have created added instability for commercial development amid rising demand, said Konstantin Daskalov, vice president of U.S. operations at Stack Modular, a global leader in structural steel volumetric modular construction, delivering fully finished mid- to high-rise buildings with full-service support from early design collaboration to on-site installation.

And while the market is likely to weather this volatility, it calls for a fundamental change in how commercial development is structured, he said. 

“Some of the biggest systemic flaws in traditional construction today are the constant schedule overruns and budget blowouts,” Daskalov said. “It’s a system built on reacting to problems rather than preventing them from the start, unlike modular construction that offers a controlled, repeatable process from day one.”

Offset Risk, Increase Efficiency

To help reduce some of the risks associated with traditional development, some contractors have inflated their bids by nearly 10% to help cushion against the costly setbacks inherent in this method. Others are implementing stricter legal clauses in their contracts to safeguard themselves from potential losses if a project comes to a halt. 

Daskalov said that modular construction, with its increased precision, quality and efficiency, is "the solution" to what the construction industry has been searching for: an alternative way to build with predictable cost and schedule.

“Modular construction, especially volumetric steel systems, is gaining attention, but it’s still widely misunderstood,” Daskalov said. “At Stack, we’re not just a module manufacturer, we’re a partner in revolutionizing how the world builds. With install-ready modules, full supply chain control and over 15 years of global delivery, we help our partners build faster, smarter and with more certainty.” 

Benefits Of Modular Construction 

Modular construction made up 5.1% of all U.S. building activity in 2024. With annual growth projected at nearly 5%, momentum is being driven by sectors where Stack is already leading, including multifamily, senior housing and hospitality, through the delivery of high-performance, install-ready modular solutions.

The benefits of modular construction cannot be overstated, Daskalov said, with speed to market, cost certainty and superior quality control/value being the most important reasons why forward-thinking developers are making the switch. 

On average, modular construction shortens project timelines by up to 30% compared to traditional builds, which often run 35% to 50% behind schedule. Stack leads the industry in accelerating delivery, with proven performance in 14-plus countries and over 750K SF of manufacturing capacity across four facilities in Shanghai — ready to deliver anywhere in the world.

Modular projects are manufactured in a controlled factory environment with fully custom-engineered plans developed to the client’s vision, local codes and specifications. They consistently deliver greater budget predictability, especially when designed for modular from the start, Daskalov said. This is achieved without compromising the highest standards of quality and performance.

In addition to cost certainty and time savings, Stack’s factory-based approach streamlines permitting and inspections. Each module is preapproved by the California Department of Housing and Community Development prior to reaching the site, backed by Stack's certified quality assurance and quality control process. This gives developers a major advantage in markets where permitting delays and on-site inspections can stretch months beyond projections.

“With modular builds, we plan from the inside out, not the outside in like traditional architecture,” Daskalov said. “Every module is designed with precise manufacturing plans, eliminating guesswork and site rework. The result is cost and schedule certainty — a rare advantage in today’s market.”

With modular builds, he added, materials are procured ahead of time and utilized as needed to maintain aggressive manufacturing. Not only is this more economical, but it alleviates one of the biggest setbacks the industry faces today: long lead times. This has proven to be especially useful due to the average supply chain disruption adding nearly five months to a project timeline, with some key materials like electrical equipment taking north of a year to deliver. 

Where Modular Can Fall Short

While the benefits of modular construction are clear, Daskalov said the industry has struggled to adopt it, and today it represents only a small share of U.S. construction. The issue isn’t inefficiency, high cost or poor aesthetics. Rather, because of the industry’s reluctance to fully embrace new ideas and implement modern building methods like modular, he said.

“Some developers that have tried modular construction have noticed that the expected benefits or efficiencies aren’t always delivered as predicted,” he said. “The key to true manufacturing speed and quality lies in a well-designed, modularly engineered and consistent quality product and manufacturing capacity, which many modular firms have not come to the table with yet.”

Daskalov said the most common disconnect he sees as a barrier to success in the modular industry is taking the old-school approach to design and construction and applying it to modular builds. This simply won’t work. 

“It’s likely they have the wrong project team set up, impractical designs or over-pricing of the on-site scope,” Daskalov said. “Developers and general contractors often treat modular companies as subs or suppliers, which defeats its purpose. They’re not fully embracing the modular mindset.”

The Stack Solution

With Stack Modular’s complete integrated project delivery method, the firm is brought on board from day one to drive efficient modular building design, Daskalov said. Working closely with the developer, contractor, architect and engineers, Stack remains involved throughout the process, handling everything from preconstruction, logistics and procurement to quality control, manufacturing and delivery and assembly processes. 

“We approach each project from the developer’s perspective,” Daskalov said. "We provide the solution to make projects pencil, we don’t just sell the best steel modular product on the market.”

In the near future, he said, modular construction will continue to pick up market share as more developers recognize the predictability, efficiency and quality of modular delivery. Adoption is expected to accelerate — particularly in sectors such as multifamily, hospitality, senior living and institutional housing, he said.

“Building smarter is not optional,” Daskalov said. “Modular construction isn’t just a competitive advantage, it’s a necessary evolution of high-performance building.”

This article was produced in collaboration between Studio B and Stack Modular. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.