Cost is the bottom line for any construction project. Modular buildings are cost effective because of less labor and material cost. Labor effort is maximised by factory construction and material waste is minimised.

Temporary classrooms, offices and simple buildings are inexpensive building options. Medical offices are more expensive.

On a typical job site, overhead expenses due to bad weather, construction delays and damages to building products take place. Construction workers waste valuable time traveling between multiple jobs and running out of supplies. Carpenters, electricians and plumbers who are very necessary in building homes, typically get more work done working on an assembly line than the typical subcontractor doing the same work at the job site. Thus, they become more cost effective in a modular construction.

In terms of financing, the buyer can choose to buy or lease a modular building according to their personal preference. Before making a final decision, the buyer needs to weigh all the pros and cons. It is critical that the buyer ensures that bids are truly competitive before choosing solely on price factor. It is advisable that the buyer checks the quality of fixtures, doors, walls and carpeting before finalising the contract.