You may look at this picture of a modular prefabricated utility plant adjacent to a field-built structure and ask, “Why didn’t the client simply add on to the brick building?” Beyond the standard drivers (compressed schedule, cost certainty, and reduced field labor), there can be other benefits to the owner when using a prefabricated modular Off-Site Construction (OSC) approach.

Depending on the OSC partner, packaged utility systems may be ETL rated (Epsilon systems are ETL rated).  When an ETL rated system is utilized, the owner can consider the packaged utility system a piece of equipment rather than a building addition. Depending on the financial drivers of the owner, considering the package as equipment can allow the accounting team to take advantage of a much more rapid depreciation schedule, which can provide tax benefits in certain circumstances.

Beyond accelerated depreciation, there are other potential advantages to ETL rated systems. For example, in many states new healthcare projects are constrained by a community ‘need,’ derived from demographic studies. The results of the study will limit total hospital square footage. However, the square footage of an ETL-rated central plant is typically not counted against the total allowance for the building. This approach opens up valuable space for the hospital to add patient care or other revenue-generating activities.

Contact Epsilon if you’re interested in hearing more about the variety of benefits that may come from an Off-Site Construction approach to your next project.