It's mostly flawless in Multiplayer, but it does have a few quirks.
If player 1 is inside of a factory building when it is removed by player 2, then player 1 will remain inside of the building, un-fazed. If player 1 exits the building, they will reappear where the entrance to the building formerly was, despite the building having been removed. However, if player 2 places the building in a new location, and player 1 subsequently exits the building, then player 1 will reappear at the building's current entrance.
Not sure if this is intentional or not, but I can see it being useful in some situations. Great mod btw.