The construction
sector as it currently operates cannot meet the UK’s need for housing and may
struggle to meet the need for infrastructure.
Given that the UK
already lags behind other countries in construction productivity, and is facing
a labour shortage, the Government and the construction sector must urgently
find solutions.
In a
report, Off-site Manufacture for
construction: building for change,
the House of Lords Science and
Technology Committee says that off-site manufacture (OSM) can help to increase
productivity in the construction sector while reducing labour demands,
improving the quality and efficiency of buildings, and reducing the environmental
impacts associated with traditional construction.
However, take up of
OSM is varied and somewhat limited across the sector because it is working with
out-dated and unsustainable business models that are not conducive to OSM for
construction. OSM requires collaboration between clients, designers and contractors
from an early stage but much of the evidence the Committee received painted a
picture of a construction sector that is fragmented and lacking in trust. These
barriers must be addressed by the sector itself and strong leadership is needed
from the Construction Leadership Council.
While OSM could
lessen the labour shortage, the different skills required for manufacturing are
currently lacking in the UK labour market and must be developed. OSM will
require a combination of skills involving site implementation, digital and
procurement. The Government must therefore ensure that young people entering
the workplace are equipped with the digital skills needed for modern methods of
construction, including off-site manufacture.
The Government’s
Construction Sector Deal and its stated 'presumption in favour' of OSM, have
shown a strong commitment to investing in this area and the Committee welcomes
many of the initiatives. The Committee recommends that the Government develop
and publish a series of Key Performance Indicators against which the success of
the ‘presumption in favour’ can be assessed. Where the presumption in favour is
set aside and a project goes ahead that does not use off-site manufacture, the
Government should publish a statement explaining why it has not been used and
justifying that decision.
In many cases, OSM
is suitable for the construction of important social infrastructure such as
hospitals and houses. The Committee heard evidence that if the Government
is to achieve its aim of building 300,000 houses a year by 2020, OSM would be the
only way to meet this target, and that traditional construction methods do not
have the capacity to build enough homes. The Government must set out what
conditions it will attach to the extra financial support for housing to drive
the uptake of off-site manufacture and other innovative technologies.
Chairman of the
Committee, Lord Patel said: “There are clear and tangible benefits from
off-site manufacture for construction which make a compelling case for its
widespread use. We heard evidence that OSM could increase productivity in the
sector by up to 70%.
“The construction
sector’s business models are no longer appropriate and are not supporting the
UK’s urgent need for new homes and infrastructure. The construction sector
needs to build more trust and create partnerships so that companies can work
together to improve the uptake of off-site manufacture, and the Construction
Leadership Council should provide the necessary leadership.
“The role of the
Government and the wider public sector is pivotal in a move to greater use of
off-site manufacture. The report sets out actions that the Committee thinks the
Government should take including implementation of the Construction Sector Deal,
committed execution of the ‘presumption in favour’ of off-site manufacture and
a greater move to procuring for whole-life value rather than lowest cost.”
