2026 Electric Construction Report
February 25, 2026

Accelerating housing delivery by modernizing approvals for prefabricated building systems.

As Canada faces increasing pressure to deliver more housing quickly and sustainably, offsite construction presents a significant opportunity to improve productivity, reduce waste, enhance quality, and shorten construction timelines. However, many permitting and approval systems were designed around traditional construction methods and can create unintended barriers for prefabricated building systems.

We partnered with FPInnovations to examine how municipal planning and permitting processes can evolve to better support offsite construction (OSC), including panelized and modular systems. Through a combination of policy research, industry best practice reviews, and interviews with municipal planning and building officials, the project identified key challenges limiting OSC adoption and developed a practical roadmap for change.

The research established four strategic pillars to guide municipalities and industry stakeholders toward more efficient permitting:

  • Offsite-Friendly Planning to align zoning and development policies with the realities of prefabricated building systems;
  • Common Language, Clear Rules to standardize terminology and adoption of relevant standards;
  • Code Confidence to improve familiarity with evolving standards and demonstrate compliance; and
  • Permit-Friendly Designs to provide clearer documentation and reduce permit review delays.
    • Optimizing Permitting for Offsite Construction

    The roadmap also highlights the role of digital tools, standardized processes, and early collaboration between developers, designers, manufacturers, and municipal officials in creating more predictable approval pathways. By reducing uncertainty and improving consistency across jurisdictions, these changes can support greater adoption of offsite construction and help communities meet ambitious housing targets.

    This work contributes to a broader shift toward a more industrialized and efficient construction sector, where permitting systems enable innovation rather than constrain it. By connecting policy, standards, and practical implementation, we're helping municipalities and industry partners create the conditions necessary for faster, higher-quality housing delivery.

    Download the full report here to learn more: “Optimizing permitting for offsite construction”