Standard contract document for prefab and modular building released

The ConsensusDocs Coalition is offering the first standard contract document that addresses prefabricated construction.

ConsensusDocs 753 Standard Prefabricated Construction Contract addresses the most common use-case scenario of prefabricated construction in which a constructor, general contractor, design-builder, or construction manager contracts with a prefabricator to fabricate a component off site that is later installed on a worksite. Industry leaders, including the Modular Building Institute (MBI) and volunteers and staff from National Institute of Building Sciences (NIBS), Off-Site Construction Council, developed the document over two years.

“While prefabricated construction or modular building has been around for decades, important contractual and legal issues have remained unaddressed in most construction contracts,” according to a ConsensusDocs news release.  

“The new ConsensusDocs Prefabricated construction contract advances the understanding and risk allocation desperately needed because prefabricated construction is revolutionizing the way construction will occur in a post pandemic construction world,” said Ron Ciotti, a partner with Hinkley Allen.

“This is one of the most anticipated contracts in ConsensusDocs history because there is a glaring need to address the growing trend of prefabricated construction or modular building, and current contracting practices simply do not cut it,” added ConsensusDocs Executive Director and Senior Counsel Brian Perlberg.