Profitability in Prefabrication

Prefabrication is the practice of assembling components of a structure or an entire structure before it reaches the construction site where it will be located. Prefabrication is usually done in a factory or on a manufacturing site. The concept of prefab was often seen as something negative when it came to electrical work since it seemed limited to certain types of jobs and many contractors thought it took their work away. However, in modern times, prefabrication is becoming more and more popular. Let’s take a look at the process of prefabrication and how it can work in modern technologies.


The Benefits of Prefabrication

Prefabrication can have many benefits for a contractor. One of the most important benefit is lowering costs. Prefabrication lowers costs in many ways. The prefabricated components can speed up construction time resulting in lower labor costs. Also, prefabrication helps protect the materials being used. They are in an indoor location where they are protected. Therefore, there is a reduced risk of them needing to be replaced due to damage caused by the elements. The risk of theft and vandalism of these materials is also reduced since construction is being done in an indoor, contained location. The computerization of the production process permits a high degree of customization at an affordable cost. The quality control and factory sealing ensures energy efficiency.

These money saving benefits can be beneficial for both the contractor and the home owner. The contractor benefits from higher profitability and the ability to offer more competitive rates.  The homeowner can get lower prices on their construction costs. Home owners also benefit because the income required to qualify for a high ratio mortgage is reduced by a third, compared to those applying for a mortgage for a conventionally built home.

Other benefits of prefabrication include the fact that the use of an indoor facility for manufacturing allows work to be done year round.  Also, the mechanization used in prefabrication allows for more precise output resulting in better quality and conformity to building codes.


There can be obstacles with prefab if the specs are incorrect, the field workers are not properly educated, or the necessary materials are not available. That’s why it’s important to prepare properly before starting prefab work. Make sure each worker is well trained, that there is good communication between all aspects of contractors working on the job and that all needed materials are in place before beginning.

Overall, the benefits of prefabrication are overwhelming and it seems to be becoming the wave of the future in contracting and construction. It’s safer, more cost effective and leads to greater productivity. With a bit of research and education, you can find out how to make prefabrication work for you.