Is Off-Site Construction Cheaper?
Everyday the same question. The answer has to be yes, as far as IRR, sheer quality and predictability schedule wise and many other plus points it's a definite winner;
The benefits include;
- Time is a valuable commodity - far shorter build times using 'precision manufactured homes' allow investors to receive a return on investment far sooner, 30-60% quicker with simultaneous 'on' and 'off-site' manufacture, creating predictable timelines. Ideal for hotels, student accommodation, build to rent (BTR), offices, hospitals and anything that has a 'repeat' process included.
- Fixed build costs for everything above the ground works, precision engineering delivers consistent high standards throughout.
- High quality, far less snagging, mitigation of the risk of adverse weather, less accidents on site.
4. Removal of approximately 80% of the building construction activity from the site significantly reduces site disruption, noise and air pollution.
The key issue in the UK with only 4 large volumetric factories 'capacity' is major problem, perhaps they can service a max of 5% of the UK Housing Crisis? even if we were to quadruple this amount its not sufficient to provide the shortfall of 4 million homes.
www.lithuaniagb.com - come Q1 2019 www.acemodularconstruction.com
Principal Owner at Raymond Investments
6 年In the longer term if you take into account reduction in time on programme, less disruption on site, factory conditions better for quality, less defects mean less return visits means less loss of profit, so take the advantages and you will not waste as much money You have to take it on a site by site basis but if you want quality it comes at a price nothing is cheap if you want to build it right first time
UK Head of Sustainable Investment & Partnerships @ Prologis UK | President of UKBCSD | Chair South Midlands Business Board
6 年Not by ￡s but sustainability, deliverability etc. Still the issue remains less in Smart Construction or Off-site technology but more market commitment to expand existing market offer and build mix. But at least you avoided the default debate of more policy to drive sector growth.... perhaps we should talk.
1.Varied Accounting roles. 2.Taxation, secretarial and legal. 3. Venture capital and Private Equity introducer for company founders. 4. IPO agent for qualified companies. 5. SSM interest schemes.
6 年Tinkering with Modular construction methods?