DEVELOPER BREAKFAST TARGETS EARLY BIRDS

Offsite construction is increasingly being recognised among developers as a way to speed up occupancy, thereby mitigating investment risk, as well as enabling a new, more engaged approached to delivering schemes. A critical factor in success is understanding at what stage the developer should interface with providers of offsite solutions.

The first of a series of breakfast seminars organised by prefabAUS engaged with this question, with a program comprising presentations and a panel discussion, whose speakers comprised a roll call of experts in the offsite space: George Argyrou, Joint Managing Director, Hickory; Simon McCarthy, Senior Structural Engineer, Wallbridge Gilbert Aztec; David Tweedie, Principal, Hayball; and Nick Strongman, CEO, Sensum.

Often cited as a template for offsite construction innovation, Hickory Group’s Hickory Building Systems (HBS) solution was analysed in Argyrou’s presentation.

He highlighted the critical role of digital design technologies that enable DFMA aligned with the use of BIM/ parametric modelling to enable detail and accuracy upfront. Digital integration ensures, for example, that accurate BOM can be connected directly to supply chain through an automated procurement process.

Other key elements of Hickory’s approach include a suite of proprietary building components, all of them prefabricated, including: core system; precast stairs and shafts; precast floors including MEP; preassembled façade solutions, as well as prefabricated bathroom and laundry pods under the SYNC brand.

Argyrou cited the La Trobe Street tower, which has a reputation as the tallest prefab student accommodation in Australia, as a case study for the speed and efficiencies enabled by HBS. At 150 metres high, the 43-level tower was completed eight months faster than a conventional build.

WGA’s Simon McCarthy opened his presentation with a call to action. “Your competitor will complete three to four projects every two years using modular, compared to one or two using conventional construction… Why are you waiting to see somebody else do it successfully first?”

“Your competitor will complete three to four projects every two years using modular, compared to one or two using conventional construction… Why are you waiting to see somebody else do it successfully first?”

Simon McCarthy, Senior Structural Engineer, WGA.

With experience readily available in Australia, McCarthy argued that there was no reason not to utilise offsite and reiterated that negative perceptions of prefab were out-dated.

“The stigma of standardisation leading to blocky buildings or not being able to customise the layout to suit a site is not justified. Just don’t make the layout complex. We are not talking about shipping containers!”

Advantages of offsite included greater reliability of cost estimates and project schedules, while the quality associated with factory built apartments was better for warranties and maintenance, creating fewer issues with owners’ corporations.

“Prototypes allow for scrutiny by all stakeholders before production,” he added. “How often do you get to view the finished product, before the building is finished?”

He emphasised the importance of ECI and considering structural engineering early. A longer design phase than that of conventional builds meant details could be finessed with the builder during design, rather than construction. “More time in design means less time on site due to fewer variations,” he said.

“ECI is contractually more reliable than ‘separate tender to build’ or ‘Design and Construct’ which both break into a developed relationship that is generally 80% complete,” he said. “Engaging the builder with the architect and engineer at the beginning allows the budget and the program to be monitored as the design is progressed.”

“If you don’t start using modular soon, you will be waiting in line to engage a team who have the experience, or waiting for other teams to gain the relevant experience. A lot of local modular factories already have a healthy forward work order.”

McCarthy concluded that while offsite operators still struggled with traditional funding models that issue progress payments based on the stage of construction on site, there were other ways to fund projects; and the investment gains were worthy of note. “The permanent result is an early return on investment. Earlier finish is earlier sales and earlier start on the next site.”

Nick Strongman of Sensum, which has delivered a plethora of projects in the schools sector under the banner of the Victorian School Building Authority (VSBA), cited key considerations around uptake including public perception; procurement and delivery strategies; Early Contractor/Consultant Involvement (ECI); government investment in training and upskilling; capacity and capability of the industry; finance, insurance and legislation; consultant understanding of offsite and limited investment in automation and manufacturing. Updated contracts and procurement guidelines as well as further discussion around early contractor engagement and collaboration would take the industry further, he said.

“Engaging the builder with the architect and engineer at the beginning allows the budget and the program to be monitored as the design is progressed.”

Simon McCarthy, Senior Structural Engineer, WGA.

David Tweedie of Hayball noted that with a large share of development risk typically lying on-site, executing designs in a controlled environment, with increased design involvement in early stages, enabled greater control over outcomes. He cited the Docklands Library, in Melbourne, which was delivered through a tri-partnership agreement between Places Victoria, the City of Melbourne and Lendlease, as a showcase for other schemes.

With the education sector, for which Hayball has completed a number of projects, operating on lean principles entailing high levels of scrutiny around costing, Tweedie said the continual refining of offsite methodologies had furnished good outcomes. Early contractor involvement and early supplier involvement were factors for success, with a highly resolved design model early in the process critical in informing the business case for developers.

“If you don’t start using modular soon, you will be waiting in line to engage a team who have the experience, or waiting for other teams to gain the relevant experience. A lot of local modular factories already have a healthy forward work order.”

Simon McCarthy, Senior Structural Engineer, WGA. ■