Construction costs of actual projects in Puerto Rico from 2003 - 2006

1. Modular Construction
An Economics Overview
of Completed Projects

2. Acknowledgments
Abelardo (Abe) Perez was assigned as the
Project Controls Manager for industry
leading life sciences companies with
modular construction projects from 2003 to
2006 in Puerto Rico.

3. Common Module Types
 Super Skid
 Process
 Architecture

4. Super Skid Modules
 Large pre-constructed equipment with
associated process, utility, infrastructure
support prefabricated and predominately
qualified. Super skids are interconnected
to plant systems with the utilization of
prefabricated spool pieces.

5. Process Modules
 Large pre-constructed sequential modules
equipped generally with large ballroom or
ceiling/roof modules to encompass entire
systems including large reactors, vessels,
and tanks with associated process, utility,
infrastructure support. Process modules
are interconnected sequentially with full
utilization of prefabricated spool pieces.

6. Architecture Modules
 Large pre-constructed non process
sequential modules utilized generally for
support areas like corridors, offices,
restrooms, mechanical and other support
requirements. Architecture modules are
interconnected sequentially with spool
pieces for utilities and welded base plates.

7. Modular Construction Benefits
 Schedule Health
• Ability to complete onsite construction faster due to
simultaneous module fabrication, site works, and
building foundations. This is an improvement to
traditional stick built sequential construction.
• Improved labor productivity due to fabrication shop
type environment for exceptional performance.
• Minimization of onsite risks due to labor market,
construction delays, bidding process, poor
productivity, and weather delays.

8. Modular Construction Concerns
• Module layout changes due to design changes are
difficult and expensive due to limited module space.
Late changes generally require extensive rework.
• Non traditional costs for module logistics,
transportation, staging, and large crane requirements.
• Risks associated with module interconnections and
spool pieces not properly aligned due to fabrication
and transportation inefficiencies.
• Module fabrication late delivery
• Shipments of incomplete modules requiring
unforeseen onsite completion.

9. Puerto Rico Large
Greenfield Biotech Project
(Engineering Qualification Prorated)
60 Modular
53%
50
% 40
Non Modular
Support
T 30 Facilities
I 21%
Existing Site Owner
C
20 Infrastructure
Indirects
Costs
8% 10%
8%
10
0

10. Puerto Rico Large
Greenfield Biotech Project
Offsite Module Fabrication Costs
60
Module
Fab
50 56%
40
Owner
Procured
% 30 Equipment
Modular
Engineering
19%
Super Skid Costs
20 Vendors 14%
10% Module
Offsite
10 Validation
1%
0

11. Puerto Rico Large
Greenfield Biotech Project
Onsite Module Construction Costs
45 Module
Prep
40 Module
Interconnects Automation
35 42% 30%
30
Module
25 Validation
% Costs
20 15%
Super Skid
15 Owner Vendors
Module 8% Engineering
10 Logistics Support
2% 3%
5
0

12. U.S. Module Fabricator Dry Products Facility
CSI Cost Metrics
1. Steel
• Module Steel (Tubular Frames) Fabricate and Erect $5,196 Ton
• Metal Deck Installation $9.83 SF
• Fireproofing (Intrumescent) $30.91 SF
2. Architectural
• Roofing $31.78 SF
• Gypsum Partitions $33.30
• Gypsum Ceilings $52.51
• RAP Wall (Clean Rooms) $39.11
• Flooring (Stone Hard) $11.08
3. HVAC
• Duct (Galvanized), Accessories (Galvanized) $36.88 Lb
• Insulation $3.57 SF
4. Fire Protection
• Sprinkler System $9.02
5. Plumbing
• Sanitary Drains $229.00 LF
6. Piping (Fabricate and Install)
• Pipe, fittings, hangers, Spools (Purity/Non Purity) $355 LF
7. Electrical Instrumentation
• Cable Tray $103 LF
• Conduit (Composite) $59
• Power & Control Wire and Cable $1.76 LF

13. U.S. Module Fabricator Dry Products Facility
Metrics
1. Module Fabrication Duration
• 10 Months Total (84 Total Modules)
• Module Average (Process/Non Process) 16 Weeks
2. Fabrication TIC Percentages
• Engineering 2.3%
• Direct Labor 30.3%
• Contracted Labor - Data Not Available
• Indirect Support 8.7%
• CM 8.6%
3. Module Costs
• Average Cost Per Module (Process/Non Process) $562,000
• Average Cost Per SF $1,124
4. Pipe Metrics
• Non Purity Average Pipe Diameter 2.13”
• Non Purity Pipe 29,000 LF - Welds per Module Data Not Available
• Purity Average Pipe Diameter 1.59”
• Purity Pipe 7,400 LF – Welds per Module Data Not Available
5. Automated Valves
• Data Not Available
6. Fabrication Shop Validation
• 3.4% performed (IQ)
7. Other
• Surplus Material Generated - 5.6% of Bulk Materials
• Total Cost Growth from Original Vendor Estimate 21.5%

14. U.S. Module Fabricator Biotech Facility
CSI Cost Metrics
1. Steel
• Module Steel (Tubular Frames) Fabricate and Erect $4,950 Ton
• Metal Deck Installation $6.58 SF
• Fireproofing (Intumescent) $29.84 SF
2. Architectural
• Siding (Centria) $33.87 SF
• Gypsum Partitions $12.70 (Five Wall Types)
• Ceilings $73.87
• Flooring $5.33
3. HVAC
• Duct (Galvanized), Accessories (Galvanized) $37.31 Lb
• Insulation (Included above)
4. Fire Protection
• Sprinkler System $9.11
5. Plumbing
• Sanitary Drains $96.50
6. Piping (Fabricate and Install)
• Pipe, fittings, hangers, Spools (Non Purity) $111.94 LF
• Pipe, fittings, hangers, Spools (Purity - Subcontracted) $165.08 LF
7. Electrical Instrumentation
• Security, Telephone, Sound & Paging System $2.45 GSF
• Cable Tray $62.61 LF
• Conduit (Composite) $25.96
• Power & Control Wire and Cable $1.43 LF

15. U.S. Module Fabricator Biotech Facility
Metrics
1. Module Fabrication Duration
• 16.6 Months Total
• Module Average (Process/Non Process) 16 Weeks
2. Fabrication TIC Percentages
• Engineering 5%
• Direct Labor 30.2%
• Contracted Labor 2.3%
• Indirect Support 5.5%
• CM 8.8%
3. Module Costs
• Average Cost Per Module (Process/Non Process) $464,000
• Average Cost Per SF $1,200
4. Pipe Metrics
• Average Pipe Diameter 2.39”
• Non Purity Pipe 29,000 LF - 107 Welds per Module
• Purity Pipe 24,000 LF – 35 Welds per Module
5. Automated Valves
• 284 Installed
• Less 1% Fabrication Shop Installed
6. Fabrication Shop Validation
• 2% performed (IQ)
7. Other
• Surplus Material Generated - 2.65% of Bulk Materials
• Total Cost Growth from Original Vendor Estimate 6.1%

16. Comparison
1. Total Module Cost $1,165 SF
• Module Fabrication Cost 1,150 Per SF
• Logistics Cost Per Module $54,336 Each or $15.00 SF
 Module Shipping / Transportation $26,776
 Module Port to Site Transport & Site Offload $27,560
2. Traditional Building Construction
• Non Class 30% $383 SF TIC $115.00
• Class GMP 40% $630 SF TIC $189.00
• Class 10,000 20% $1,235 SF TIC $247.00
• Class 1,000 5% $2,500 SF TIC $125.00
• Class 100 5% $3,360 SF TIC $168.00
• Total Cost (Excludes Equipment) $844.00
3. $1,165 SF Modules versus $844.00 SF
4. Schedule
• Module Average (Process/Non Process) 10 Months Fabrication + 1 Month
shipment + 2 Months Interconnects = 13 Months.
• Traditional Stick built Average 19 Months