Modular construction with ALHO pays off

12% lower life cycle costs

In assessing the sustainability of a building according to DGNB, the aspect of "costs of the building in its life style" plays a crucial role. Minimising life cycle costs (LCC) is a primary sustainability objective. An LCC analysis determines the total costs caused by a building during the course of its life cycle, from construction to demolition. DIN standard 276 regulates the determination of costs in building construction. In the LCC analysis, by definition, the cost groups "300 Structure – Construction" and "400 Structure – Technical installations" are considered. These two cost groups form the basis for a very detailed and objective consideration of the planning, financing, production, usage, renewal and demolition costs incurred during the life cycle of the building. In the LCC analysis, the investment and operating costs over a period of 50 years are precisely determined and calculated.

49% lower planning costs, 50% lower financing costs

The modular system structure and standardised manufacturing processes combined with the seamlessly organised planning process mean that savings of up to 49 percent can be made on planning costs. Because of the high level of prefabrication of the modules, the ALHO modular construction method also cuts the construction time massively, thus shortening the period of financing required accordingly. 

Shorter financing periods have a positive impact on the amount of interest paid. Firstly, properties can be rented or handed over for occupation sooner. The savings on financing costs amount to 50.6 percent compared with standard building methods. Construction costs for a comparable building built using ALHO modular construction methods are 11.4 percent lower than for standard buildings. 

Advantages with change of use and demolition

The carefully planned steel structure of the individual modules increases the flexibility and adaptability of the entire building enormously. This means that, in comparison with standard building methods, changes of use and refurbishments can be carried out cost-effectively at any time.

Another advantage of ALHO modular construction lies in the design of the individual modules and the possibility of linking these with each other mechanically. These factors mean that dismantling the building is also cost-effective: the costs of demolition can be reduced by 13.8 percent compared with standard buildings. Furthermore, the structural elements of a module can be specifically recycled, thus making a positive contribution to the reuse and recycling of building materials.


Considered overall, the life cycle costs over the entire life cycle of buildings constructed using ALHO modular construction methods are around 12% percent lower than with standard building methods. The results of the LCC analysis prove that investing in a sustainable ALHO modular building is a decision that has positive financial and ecological effects in the long term. The most frequent asked questions about the project investment of modular buildings are answered here.