Prefab vs modular building

Modulair Bouwen - Oude Pekela

What is the difference and why does modular construction offer more possibilities

Prefab construction and modular construction are often mentioned in the same breath — and understandably so. Both methods rely on building components that are manufactured in a factory environment. However, there are important differences. While prefab focuses on separate elements, modular construction goes a step further with complete, functional building modules that are ready for use once installed.

In this article, we explain the difference and why modular construction is the future of fast, flexible and sustainable buildings.

What is prefab construction

Prefab stands for prefabricated. Building parts — such as walls, façade elements or roofs — are produced in advance in the factory. On-site, these components are assembled into a complete building.

Key characteristics of prefab construction

  • Faster than fully traditional construction
  • Less dependent on weather conditions
  • Higher and more consistent quality
  • Fewer failures and unexpected costs


Prefab improves efficiency significantly, but the building still needs substantial assembly on location.

What is modular building

Modular building goes further than prefab. Instead of separate components, complete units or modules are manufactured and finished in the factory. Think of a turnkey apartment unit or classroom — including installations, electricity, sanitary systems and interior finishes.

Once placed and connected on-site, the building is immediately functional.

Key characteristics of modular construction

  • 30–60% faster project delivery
  • Operational immediately after installation
  • Minimal disruption on-site
  • Fully reusable, scalable and relocatable
  • Highly sustainable and circular


Where prefab speeds up construction, modular building delivers full speed and flexibility.

Prefab vs modular building

AspectPrefab ConstructionModular Construction
Production stageSeparate componentsComplete functional units
Factory finishingLimitedTurnkey
On-site build timeShortVery short
FlexibilityLimitedVery flexible
ReuseDifficultFully reusable
On-site disruptionLess than traditionalMinimal

In short: modular construction is prefab+, with unmatched speed and adaptability.

Sustainability as a major benefit

Modular construction scores higher on sustainability:

  • Units are fully reusable
  • Minimal waste due to controlled factory production
  • Better insulation and airtightness
  • Lower CO₂ emissions during construction and transport


This makes modular the ideal solution for futureproof and affordable housing.

When is each method the best choice

SituationBest choice
Highly unique architecturePrefab or hybrid
Fast delivery of fully completed buildingsModular
Expected growth or changing needsModular
Local finishing desiredPrefab / Modular
Buildings needing future relocation or reuseModular

More and more organizations discover that modular construction offers better control over time, costs and future value.

Faster, more flexible and far more sustainable

Prefab construction is a great improvement for efficiency.
But modular construction goes further — faster, more flexible and far more sustainable.

For residential housing, education, healthcare and commercial buildings, modular is the smart choice built for tomorrow.

At Van den Nagel Modular Construction, we design, build and deliver high-quality modular solutions tailored to your needs.

Modular buildings can be operational within weeks because factory production runs parallel to site preparation.

Yes. Modules can be designed as studios, rooms, family units or shared accommodation — fully adaptable to user needs.

Absolutely. They meet all safety, energy and performance standards required for permanent buildings.

Yes. Modules can be expanded, relocated or downsized, depending on future needs — minimizing vacancy and waste.

Yes. By reusing units and minimizing waste, modular construction has a lower environmental impact and supports circular building goals.