Modular Construction in North Carolina

Lilly, a white woman with straight auburn hair and brown glasses, wears a white blouse and black jacket.By Lilly Heckman

The use of the modular construction method is on the rise with both commercial and residential builders in North Carolina. Benefitting contractors and owners alike, modular building allows for faster timelines and more predictable costs. Contractors across the state are utilizing modular building for all types of new builds, from healthcare and education facilities to hospitality and industrial structures. As the state continues to experience robust growth in its population and economy, North Carolina’s infrastructure must keep up, and modular building may play a key role.

What is modular construction?

Modular construction refers to the process in which any structure, or structural building component, is constructed off-site or in a factory and later transported to a final location for assembly/installation. The buildings are created in modules or sections, which are joined together to form a complete structure. Prefabricated building modules can be integrated into site-built projects or stand alone as a turnkey product.

What are the benefits of modular construction?

General contractors facing common challenges such as labor shortages or tight project schedules may reduce or overcome these obstacles by using modular construction. Some benefits of modular building include:

  • Accelerated delivery — site work and building fabrication happen simultaneously and weather delays are avoided
  • Higher and more uniform quality — controlled factory environments and independent inspection and testing protocols ensure standards are always met, reducing rework and material waste
  • Safety improvements — indoor construction reduces the risk of accidents that may occur when work is performed at heights or in weather and eliminates ongoing construction hazards
  • Reduced disruptions — completing work offsite lessens the impact construction may have on certain projects where business operations must continue, such as schools or hospitals

These qualities not only improve the construction process but help the construction industry in North Carolina grow. Specific industries that are well-suited for modular construction include health care, education, student and multifamily housing, data centers and manufacturing. Modular construction is also seen in pre-built homes, ranging from affordable housing to luxury developments.

What to know about modular construction in North Carolina

While modular building components likely go through numerous tests and inspections during the manufacturing stage, the state has its own policies and procedures to ensure modular construction of all types is safe and up to standard. It’s important for builders to know that modular construction in North Carolina must adhere to all relevant state and local building regulations, regardless of where a structure or building component is manufactured. The North Carolina State Building Code covering modular construction regulations can be found here.

Under N.C.G.S. § 87-1, if a person or firm undertakes to construct a North Carolina labeled manufactured modular building meeting the North Carolina State Building Code, they are considered a general contractor and must be licensed as such. For those who do not hold an NC general contractor’s license, they may still erect a modular building by providing a $5,000 surety bond per modular building.

For residential construction, North Carolina has a specific license for manufactured home manufacturers, dealers or set-up contractors and, notably, a license to set up HUD-manufactured homes does not automatically authorize a contractor to erect modular buildings in the state. The state has also established the Manufactured Housing Board to provide the framework for regulation of the manufactured housing industry, including licensees.