More Than Modular: Rethinking Prefabrication with a Tiered Manufacturing Model 

The demand for speed, efficiency and cost control in construction has never been greater. As industries grapple with labor shortages, supply chain disruptions and increasingly complex builds, prefabrication and modular construction have emerged as critical solutions. But how do teams determine the right level of prefabrication for their project?

A structured, tiered approach to manufacturing can optimize project outcomes, balancing efficiency, cost and flexibility. By categorizing prefabrication efforts into six defined levels, project teams can systematically scale their approach to manufacturing and clearly communicate expectations across detailing, fabrication and site teams.

The McKinstry Manufacturing Playbook outlines a progressive approach to prefabrication, where each level builds upon the previous one. This framework enables teams to choose the right balance between on-site construction and off-site fabrication based on constraints for the project. Factors such as site logistics, a compressed (or absent) preconstruction timeline and the maturity of the BIM model can significantly influence which manufacturing level is feasible.

1. Material Delivered and Installed on Site – Traditional on-site construction with no prefabrication.

2. Organized Materials – Simple organization of materials or equipment (e.g., kit of parts for diffusers in a basket) by a single trade.

3. Pre-Cut and Tagged Materials – Material is cut to length and organized (e.g., “bag and tag” kits) by a single trade.

4. Fabricated Assemblies – Material is cut and joined into components (e.g., pipe fabrication), combining materials and labor into pre-assembled components that integrate one or more trades or services.

5. Multi-Service Assemblies – Fabricated components with multiple trades or services (e.g., duct spooling, pump skids).

6. Modular Structural Assemblies – Multi-trade prefabricated racks where services are installed on a shared structural element.

7. Volumetric Modular Construction – Fully integrated off-site construction, including structural, mechanical, electrical, and architectural finishes (e.g. bathroom pods).

The Strategic Benefits of a Tiered Prefabrication Approach

1. Enhancing Project Efficiency

By shifting work off-site, teams can reduce and level labor demands, minimize site congestion and accelerate project timelines. Selecting the appropriate manufacturing level ensures that prefabrication efforts align with schedule constraints and site logistics.

2. Controlling Costs and Reducing Waste

A structured approach enables better material procurement, minimizes rework and reduces waste. By understanding the trade-offs between prefabrication levels, project teams can optimize cost efficiency without sacrificing quality.

3. Improving Quality and Consistency

Off-site fabrication allows for greater quality control in a controlled environment, leading to fewer errors and higher installation precision. This approach is particularly valuable for high-performance data center builds and critical infrastructure projects.

4. Strengthening Collaboration and Communication

Establishing a common prefabrication language ensures alignment across sales, engineering, detailing, purchasing, operations and supply chain teams. By clearly defining the chosen level of manufacturing, all stakeholders can execute the project with shared expectations.

5. Enhancing Safety

Prefabrication reduces on-site work, minimizing exposure to hazardous conditions such as high-risk lifts, confined spaces and inclement weather. By shifting labor to controlled environments, the risk of injuries decreases, improving overall worker safety and compliance with industry regulations.

Applying the Model: Selecting the Right Level of Prefabrication

Consider a data center build where rapid deployment is crucial. Instead of defaulting to traditional construction methods, the team evaluates the seven levels of manufacturing for an MEP distribution system. They then select Level 5 (multi-trade modular racks) to accelerate mechanical and electrical installations while reducing on-site labor. By planning this approach early, seamless coordination is ensured between the design teams, detailing teams, fabrication shops and on-site crews.

Similarly, for highly repetitive builds, Level 6 volumetric construction (e.g., fully outfitted electrical rooms or bathroom pods) may be the most effective way to streamline deployment across multiple sites.

The Future of Manufacturing in Construction

As digital tools like AI-driven design, digital twins, and automated fabrication evolve, the future of prefabrication will only become more dynamic. The industry must continuously refine its manufacturing playbook to leverage new technologies and push beyond Level 6.

By adopting a tiered approach to manufacturing, construction leaders can maximize efficiency, optimize project delivery, and stay ahead in an increasingly competitive industry.

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