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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.
Pan et al. (Tue,) studied this question.