Seizing the Modular Construction Opportunity

As a first step, provinces and territories can issue guidance materials and training to educate AHJs on modular methods and help clarify processes and responsibilities around certification, inspections, and approvals. This would allow projects to move forward more quickly and safely. Encouragingly, Ontario and British Columbia have already developed such materials.

Building code changes that enable modular construction are also needed. For example, the main standard used to certify modules off-site (CSA A277) is enforced to varying degrees across provinces in Canada, and its classification as an ‘administrative document’ within Canada’s National Building Code also creates uncertainty for local inspectors. While the most comprehensive solution would be consistent and harmonized recognition of CSA A277, an initial step would be to enhance education about the standard at the municipal level. Further, the recognition of CSA Z250—which addresses transport, lifting and placement of modules—in the National Building Code as well as codes at the provincial/territorial level could also support needed innovation in the building sector.

Next, governments at all levels should review their procurement practices to ensure bidding processes are more accessible to modular manufacturers and involve them earlier in the design and planning phases. More collaborative or integrated procurement approaches than the traditional ‘design-bid-build’ approach could help to secure greater cost-certainty and quality of construction, without compromising on the essential requirements of a given project.

Another critical action the federal and provincial governments could pursue is revision to the financing criteria for housing developments to better align with the reality of modular’s front-loaded project costs. The federal government in particular has set aside billions of dollars for affordable housing development through the National Housing Strategy. This could be made more accessible to modular builders who have unique advantages in rapidly producing buildings with efficient floor plans.

Finally, more research and evidence are needed to inform policymakers, regulators, and private developers of modular’s functions, merits, and limitations. Though evidence from other countries is demonstrating important benefits, decision-makers in the public and private realm are more likely to be persuaded by Canadian experience.

Modular construction presents real opportunities to help Canada meet key infrastructure demands—especially in the housing sector—more quickly, sustainably, and cost-effectively. However, this can only be achieved with broader awareness and understanding of modular methods, greater regulatory consistency and guidance, and more compatible procurement and financing practices—all underpinned by an expanding evidence base. All levels of government have important roles to play in enabling this future and ensuring the full potential of modular construction is seized.