Residential Hub event
The event covered the cost of offsite manufactured solutions for the residential sector both from a client and supply chain perspective. Is offsite cost effective & are clients ready to use more offsite to increase capacity?
This residential hub event looked at how the offsite sector is addressing cost, are clients getting value for money and what capacity is there in the sector to deliver a predictable housing supply to market that gives confidence to clients.
Key messages:
“Before you start designing think about your customer and what they want”
“Most traditional contracts end up 10% more in cost than offsite”
“Cost certainty is fundamental in modular and MMC”
“In reviewing the traditional construction triangle of time, cost & quality you start to understand the reasons for success and that offsite is not a one size fits all”
“Engagement with client in the beginning and throughout the process is key”
3 challenges the offsite sector faces:
- Procurement – manufacturers need to put themselves in the position of the client and come up with a solution to show the whole product including groundwork and foundations. They need to take the principal contractor type role
- Risk Profile – traditional route: if the contractor goes out of business there are other solutions available to the client. The offsite sector needs to collaborate in order to increase the risk profile and win client’s trust. Thinking has to go into providing other options and solutions if things don’t go as initially planned – there needs to be a consistency in approach.
- Speed of the build – it is seen as an advantage; however MMC providers need to think about what that really means and think in capital cost terms
What is the industry going to look like in 5 & 10 years time?
- 5 years – There is a need for a massive increase in the rate of house building. We are going to see a big increase in the level of construction activity in housing by a substantial increase in offsite
- 5 years – consistent delivery; 10 years time – more automation and greater efficiency
- 5 years – a lot more will have changed. We will see the successful large brands in strategic partnerships
- 5 years – planning and procurement will still remain challenges; 10 years – different planning and procurement environment
- 5 years – market will have settled down and standardized
Presentations:
Dennis Seal, Buildoffsite – Welcome & Introductions
Tom Eshelby, Stelling Properties – How can a vertically integrated developer, builder and off-site manufacturer best control their costs, supply chain and quality in the early days of establishing the business?
Andrew Goodwin, B+K Structures – highlighted how their product range can meet current regulations and deliver cost effective solutions to clients.
David Butler, UKAA & Mark Woodrow, BTR Partners – Challenges for the supply chain in meeting the demands of the Build To Rent Sector over the next 3-5 years. Articulated the scale of the opportunity and the barriers to be overcome to meet the ambitions of all parties.
Terry Mundy, Lloyd’s Register & Jeff Maxted, BLP – Quality
product will set materials and build systems apart from each other so what part will BOPAS play in ensuring future product is accredited to the right standards and why BOPAS.
Dennis Seal, Buildoffsite – Indicative Cost Analysis – What is a CSA? Why do we need one? How does it work? Who uses them?
Graeme O’Doherty, The McAvoy Group – How important is it that you get the cost thresholds right for your product range and what percentage of your product is manufactured in the factory, what does this look like on our indicative CSA. What do clients want from you most when discussing the cost of supply and how are you able to respond.
Tom Oliver, ilke Homes – Cost Summary Analysis for Modular
Jon Wardle, AMCM – What role can Construction and project managers play in delivering competitive offsite housing solutions? How do you balance quality against cost? What examples do you have to support this?
Alex Hyams, Alinea Consulting – What are the key drivers behind the cost of offsite housing product? What should our members look out for when selling or buying product? What part does quality play in selecting product? Why doesn’t offsite providers like tendering for work?
Bernard Williams, International Facilities & Property Information – Cost Comparator – How can clients be sure offsite provides the best solution and how can offsite solutions be compared to traditional methods. Why is offsite more expensive than traditional? (is it really or is the comparison between traditional methods and offsite construction biased)