The Financial Impact of Offsite Construction
Updated: Jan 11, 2022
It is the time of year when resolutions are made. Promises to ourselves and others. It is the time of year when many of us identify new goals. After years of attempts we all know one thing: Change is hard.
Introducing change into a complex system such as the modern construction project is especially daunting.
The continued volatility of the materials market, COVID restrictions and the disruption of the labor market are encouraging new thinking and change like no other time in our careers.
Like most good things change comes at the expense of precious resources of time, energy and finances.
At Great Lakes Prefabrication we believe that the change to offsite construction generates value for your projects and gives you and your team a healthy return on investment.
We have compiled a list of ways that StoPanel and offsite construction can reward you for the effort and investment of scarce resources.
12 Financial Benefits of Offsite Construction
Safety – Reducing the onsite hours by up to 90% can help you avoid injuries on your projects. With the latest Bureau of Labor Statistics listing Specialty Trade Contractors at 2.8 injuries per 200,000 employee hours. There is a measurable benefit to moving those hours off the project site.
Structural Requirements - The weight of a full thickness masonry façade is 65+ lbs/sf. By utilizing StoPanel MVES (25 lbs./sf) or StoPanel Classic with StoCast Brick (12 lbs./sf) building designers can cut millions of pounds of exterior façade weight from their projects. In one recent budget the savings on structural material alone was over $500,000.
Temporary Conditions - A fully enclosed and insulated building eliminates the need for tenting and heating, reduced conditioning costs, reduced management of icy or wet slabs, reduced exposure to concrete moisture emissions, and increased productivity from interior trades that are protected from the elements.
Volatility - Reduced exposure to the violent swings in materials pricing. Prefabricators can often lock-in material pricing prior to the finalizing the design and details of the building envelope.
Scaffolding - reduced expense of scaffolding, lifts and mast climbers.
Weather Delays - Increase certainty of outcome without regard for mother nature by quickly enclosing your project.
Skilled Labor Shortage – Offsite construction decouples the available workforce from the on-site project status or weather. This disconnect allows specialty trades to perform efficient work without a direct relationship to other specialty trades on the project. Work load leveling can bolster the efforts of trade contractors to recruit, train and retain skilled workers to adequately staff your projects.
Coordination - Close collaboration with designers and specialty trades when your project is still bits and bytes on a computer screen virtually eliminates field generated RFI’s.
Precision - A precisely designed and constructed building envelope opens the doors for all trades to benefit from planning. Reducing the need for field measurements windows, louvers, vents, signage can all be ordered from the digital model enabling a “kit of parts” to be assembled at the project site.
Efficient Site Management - Project managers spend less time making high pressure decisions and shepherding “urgent” RFI’s through the construction team. This freedom from urgent coordination allows your onsite time to proactively plan the remaining project.
Environment – Prolonged construction activities on an incomplete building envelope creates waste and debris that can drift off of the project site and into the neighboring properties. A speedy enclosure with dramatically reduced on site work can allow you to spend less on environmental controls and reduce the impact on your neighbors.
Increased Revenue – With commercial office space, hospitality, gaming and healthcare revenue is measured by the day. Decreasing the duration of a construction schedule can directly impact the revenue of the building operator.
The financial impacts of offsite construction go beyond the traditional scope comparison. A deep dive into the positive impact of prefabrication will benefit you, your team and the success of your clients.