Introduction:
Prefabrication and modular construction are reshaping the built environment, offering efficiency gains, faster schedules, and new opportunities. But with these gains come new risks — especially when modules are built in one state and installed in another. This post explores how Connecticut, Massachusetts, and Washington allocate risk in modular construction projects, and what medium-sized contractors need to watch for in their contracts.
Modular construction is no longer a niche delivery method. Hotels, multifamily housing, student housing, healthcare facilities, and commercial projects increasingly rely on factory-built components to address labor shortages, schedule pressures, and quality-control concerns. The ability to fabricate major building elements while site work proceeds simultaneously can compress project schedules dramatically.
1. The New Risk Landscape of Modular Construction
Unlike traditional builds, modular projects involve:
- Cross-jurisdictional transport of building systems
- Complex sequencing of factory production and site preparation
- New players (e.g., fabricators, shippers)
This complexity increases exposure to delay claims, defect disputes, and coordination failures.
2. Liability in CT, MA, and WA: A Comparative Look
Connecticut: Site GCs remain responsible even when modules are made out-of-state. Lien rights if fabrication occurs elsewhere.
Massachusetts: Chapter 93A can apply in B2B disputes if faulty fabrication causes significant damage.
Washington: Factory-assembled structure (FAS) regulations affect approvals and insurance.
3. Contract Structure Tips
- Define delivery risk: FOB factory vs. FOB site
- Include coordination clauses for factory/field handoffs
- Specify modular-specific warranties and documentation requirements
4. Project Controls That Matter
- Use modular schedule matrices
- Document fabrication with photos/ideos
- Assign a modular coordinator even on mid-sized jobs
Conclusion:
Modular builds promise efficiency — but with unique risks. Clear contracts, defined responsibilities, and proactive planning are essential for firms working across state lines.
Need help reviewing modular construction contracts? Contact us — we support midsize firms across MA, CT, and WA.