Z modular makes bold moves to convert more hotel designs

Dive Brief:

Z Modular is offering hospitality industry owners and developers, for a limited time only, the chance to convert any hotel project floor plan into a modular one for $20,000, a 60% savings off its standard fee of $50,000. The discounted price is good through Nov. 30, according to the Birmingham, Alabama-based company.
The new schematics, which Z Modular said could be turned around in as little as 10 days, will include a parametric Revit model; an MEP (mechanical, electrical and plumbing) design; an order of magnitude, which will include an estimated price per square foot; project schedule with recommended completion phases; and a conceptual floor plan. The company said the ideal size hotel for its offer is four to 10 stories and 60,000 square feet to 200,000 square feet. For owners that choose to go with modular after evaluating their Z Modular plan, the company will then provide a more detailed design, which can be manufactured at one of the company's North American facilities.
Modular construction, the company said, is particularly compatible with hotel projects because the designs are typically repeatable. In addition, hotel projects can benefit from the tighter completion schedules industry owners are demanding.

Dive Insight:

In a McKinsey & Co. report from earlier this year, the research and consulting firm found that modular construction could save $22 billion annually on projects in the U.S. and Europe, increase overall construction industry productivity and shave between 20% and 50% off of traditional construction schedules. As far as per-project costs are concerned, McKinsey said that going modular could save as much as 20% but risks losses in the neighborhood of 10% if there are issues around material or delivery pricing.

In order to reap the rewards of going modular, however, McKinsey said that project decision-makers must choose the appropriate materials and design; overcome modular construction challenges in the areas of design, manufacturing, technology, logistics and assembly; and take advantage of projects where they can achieve scale and repetition.

McKinsey also said that public agencies are in a good position to shift the industry toward the use of more modular construction. As an example of public owners willing to make this push, the New York City Department of Preservation and Housing has incorporated modular construction into its Housing New York 2.0 initiative, which has the goal of building or preserving 200,000 affordable homes by 2022 and 300,000 by 2026. The city is promoting modular and other innovative design methods as a way to lower its construction costs, bring homes to market on an accelerated schedule and meet the city's ever-changing housing needs.

In April, Skender announced that it would partner with Z Modular to build multifamily housing components in its new Chicago plant using Z Modular’s proprietary VectorBloc system.

The healthcare industry is also at the beginning of what looks like a shift toward modular construction. This week, EIR Healthcare, a manufacturer of modular spaces for the healthcare industry, announced that it had entered into a partnership with mid-Atlantic general contractor IMC Construction to use EIR's MedModular product. IMC will be able to use the customizable "smart hospital room in a box" for a variety of structures such as hospitals, surgical centers, medical office buildings, labs, urgent care centers and stand-alone emergency rooms. Some of the goals of the partnership are to reduce the standard fixed costs of healthcare-related construction and deliver a room with the necessary medical technology already pre-installed and tested.