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Demystifying the cost barriers to offsite construction in the UK

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  • Wei Pan
  • Robert Sidwell

Abstract

Offsite construction has long been reported as an effective alternative to conventional construction, with wide-ranging benefits. However, a wider take-up has been inhibited by perceived cost barriers which are insufficiently studied. Such cost barriers are addressed, drawing on an examination of the cost performance of four types of construction method: pre-cast concrete cross-wall panel, in-situ reinforced concrete (RC) frame, steel frame and timber frame. Data were collected for 20 medium to high rise residential buildings of eight projects by a leading UK housebuilder over a five-year period (2004–08). In all cases, detailed cost comparisons were completed for build method selection. Cross-wall was found to be consistently cheaper than RC frame or steel frame by 11% to 32% in the projects. The process of developing and innovating cross-wall technology led to sustained cost savings up to 25% from its first use. Cross-wall construction also improved cost effectiveness of 20-storey high rise buildings over other solutions. Cost engineering means for achieving cost reduction and effectiveness are identified, which included efficiency learning, technological innovation, multinational partnering, and ‘in-house’ build management. The results prove the logic of the experience curve in improving the cost efficiency of offsite construction, and should encourage offsite construction in the future.

Suggested Citation

  • Wei Pan & Robert Sidwell, 2011. "Demystifying the cost barriers to offsite construction in the UK," Construction Management and Economics, Taylor & Francis Journals, vol. 29(11), pages 1081-1099.
    • Handle: RePEc:taf:conmgt:v:29:y:2011:i:11:p:1081-1099
    DOI: 10.1080/01446193.2011.637938
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    Cited by:

    1. Hong Xue & Shoujian Zhang & Yikun Su & Zezhou Wu, 2018. "Capital Cost Optimization for Prefabrication: A Factor Analysis Evaluation Model," Sustainability, MDPI, vol. 10(1), pages 1-22, January.
    2. Xue, Hong & Wu, Zezhou & Sun, Zhi & Jiao, Shuaishuai, 2021. "Effects of policy on developer's implementation of off-site construction: The mediating role of the market environment," Energy Policy, Elsevier, vol. 155(C).
    3. Marina Marinelli & Ashwini Konanahalli & Rupesh Dwarapudi & Mukund Janardhanan, 2022. "Assessment of Barriers and Strategies for the Enhancement of Off-Site Construction in India: An ISM Approach," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    4. Dandan He & Zhongfu Li & Chunlin Wu & Xin Ning, 2018. "An E-Commerce Platform for Industrialized Construction Procurement Based on BIM and Linked Data," Sustainability, MDPI, vol. 10(8), pages 1-21, July.
    5. Alasdair Reid, 2023. "Closing the Affordable Housing Gap: Identifying the Barriers Hindering the Sustainable Design and Construction of Affordable Homes," Sustainability, MDPI, vol. 15(11), pages 1-27, May.
    6. Hong Xue & Shoujian Zhang & Yikun Su & Zezhou Wu, 2017. "Factors Affecting the Capital Cost of Prefabrication—A Case Study of China," Sustainability, MDPI, vol. 9(9), pages 1-22, August.
    7. Satheeskumar Navaratnam, 2022. "Selecting a Suitable Sustainable Construction Method for Australian High-Rise Building: A Multi-Criteria Analysis," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    8. Zezhou Wu & Lirong Luo & Heng Li & Ying Wang & Guoqiang Bi & Maxwell Fordjour Antwi-Afari, 2021. "An Analysis on Promoting Prefabrication Implementation in Construction Industry towards Sustainability," IJERPH, MDPI, vol. 18(21), pages 1-21, October.
    9. Kaicheng Shen & Chen Cheng & Xiaodong Li & Zhihui Zhang, 2019. "Environmental Cost-Benefit Analysis of Prefabricated Public Housing in Beijing," Sustainability, MDPI, vol. 11(1), pages 1-21, January.
    10. Ayaz Ahmad Khan & Rongrong Yu & Tingting Liu & Ning Gu & James Walsh, 2023. "Volumetric Modular Construction Risks: A Comprehensive Review and Digital-Technology-Coupled Circular Mitigation Strategies," Sustainability, MDPI, vol. 15(8), pages 1-34, April.
    11. Jeong-hoon Lee & Jin-sung Kim & Hak-ju Lee & Young-Min Lee & Hyung-Geun Kim, 2019. "Small-Scale Public Rental Housing Development Using Modular Construction—Lessons learned from Case Studies in Seoul, Korea," Sustainability, MDPI, vol. 11(4), pages 1-18, February.

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