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How building technology affects cost

📐 Topic5 min read

What you will learn How much of the price difference comes from technology, what the ranges show, what technology actually changes, how to justify a choice, and what this branch does not cover.

The choice of technology is the first question a client asks. It is not the largest cost variable, and its real effect lies elsewhere than is often assumed.

1. How much of the price difference comes from technology

A comparison of orders of magnitude gives the answer. It sets the technologies side by side.

Factor Explanatory power
Completion level roughly a twofold difference
Building technology on commercial sources, around a third within published ranges

Technology is therefore not the first question to ask in order to understand a price. It remains an important question, but for reasons other than the price per square metre.

2. What the ranges show

Ranges for 2026 from commercial sources, excluding VAT. They indicate an order of magnitude, not a quotation.

Technology Range per square metre Typical construction time
Prefabricated €1,500 to €2,200 shortest, factory produced
Timber frame €1,600 to €2,200 8 to 14 months
Block construction €1,800 to €2,500 12 to 18 months

The ranges overlap substantially. The same technology can be dearer or cheaper than another depending on the project. Prefabricated and timber frame overlap completely at the upper end, and the lower end of block construction sits below the upper end of both.

These figures come from material published by construction companies rather than from official statistics, and must be read as orders of magnitude. The overlap matters more than the difference: the choice of technology does not set the price, it influences it.

3. What technology actually changes

Three things, of which only one is directly financial. The other two concern time and risk.

What it changes How Financial
Construction time factory produced elements go up faster indirectly
Timing of decisions factory production requires solutions decided before production starts no, but the most consequential
Distribution of cost over time with prefabrication much of the cost falls in an earlier stage yes, for cash flow

The second row is the most underestimated. Choosing a prefabricated solution means the design must be complete earlier and later changes are expensive or impossible. That is not a drawback but a condition, and it must be known before the choice, not after.

The third row concerns financing: if much of the cost falls earlier, so does the timing of the loan or own contribution. That affects the loan schedule more than the final price.

4. How to justify a choice

Four criteria, in this order. The price per square metre is not first in this list, and that is deliberate.

Design readiness. If solutions are not decided, factory production is a poor fit.

Programme. If the completion date is tight, construction time weighs more than the price per square metre: the difference between 8 and 18 months is a bigger decision than €100 per m².

Ground and plot, covered in the article on foundations and ground conditions. This cost does not depend on the choice of technology.

Shape of the building. A complex shape reduces the advantage of factory production, because repetition is where its saving comes from.

5. What this branch does not cover

Two questions fall outside. The technical suitability of a structural solution, which is for the designer to decide.

Energy performance requirements, covered in a separate guide.

This branch deals with the economic effect of technology, not its technical selection. The two must not merge: a technology that is economically favourable may not suit a particular plot and brief technically.

In summary, and four practical rules

On commercial sources technology explains around a third of the price difference, while completion level explains roughly a twofold difference. The ranges for the three solutions, prefabricated €1,500 to €2,200, timber frame €1,600 to €2,200 and block €1,800 to €2,500 per m², overlap substantially. What technology actually changes is construction time, the timing of decisions and the distribution of cost over time.

Four rules: ask for the completion level before the technology, because it explains more. Check design readiness before choosing prefabrication. Allow for construction time where the programme is tight. Separate the economic and the technical choice of technology, because different people decide them.

This article serves professional orientation at the date of checking. It is not a quotation.

Frequently asked questions

The ranges overlap widely, so price alone does not decide. The difference shows up more in time and in risk.

Time, flexibility and the financing schedule. The third affects the loan rather than the final price.

A factory produced solution is generally faster where the design is final. Building on site allows later changes.

Harmonise the completion level and the scope before comparing. Otherwise what is compared is quotations, not technologies.

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