Usually, when you build a new structure for your business, the construction takes place at the site where the structure will eventually stand. Off-site construction is a different practice that involves fabricating and manufacturing building elements somewhere other than the eventual location and then assembling and transporting the finished product. It has both advantages and disadvantages.
Off-Site Construction Pros
Off-site construction is a less expensive means of building a structure. Part of the money savings results from the fact that the process takes less time than building on-site typically takes. Another reason for the money savings is that the new materials used in off-site construction may be less expensive than those used for on-site construction.
Off-Site Construction Cons
The money that you save may not last, however. Off site insurance coverages can be greater than they would be for a building constructed on-site. This is because the new methods and new materials utilized in off-site construction may be more susceptible to water damage due to storms and/or floods. The risk of fire may also be greater, according to some assessments. Using new assembly techniques and materials can introduce a steep learning curve for contractors, and defective construction may result. All of these factors pose a greater risk to insurers that may charge a higher premium to compensate for the uncertainty.