Press Release - Using modern methods of construction to build
homes more quickly and efficiently
22 November 2005
The National Audit Office today released a report showing the
potential for modern methods of construction to provide good
quality homes quickly and efficiently. The NAO also provides
guidance on identifying and managing the risks associated with
modern methods of construction. This work responds to a request
from the Office of the Deputy Prime Minister and the Housing
Corporation for an independent examination of how to get best value
when using modern methods of construction, and provides practical
guidance to Registered Social Landlords and private developers.
The NAO found that the use of modern methods of construction,
rather than more established techniques, should make it possible to
build up to four times as many homes with the same amount of
on-site labour. This is vitally important when work for the London
Olympics, coupled with government policy to build more homes, will
place increasing demands on the existing pool of skilled labour.
The NAO also found using modern methods of construction can reduce
on-site construction time by up to half and that building
performance can be at least as good as with traditional building
methods.
The NAO found that cost ranges among different modern build
methods can be comparable, depending on specific project
circumstances. However, average costs of modern methods are
currently higher than average costs of traditional methods. All of
the building methods examined can achieve the target specificed by
the Office of the Deputy Prime Minister and English Partnerships to
build a home for £60,000.
Modern methods of construction pose a different set of risks to
traditional building methods. The NAO found that most of these
risks occur before the construction process actually begins,
including issues around planning decisions, the availability of
off-site manufacturing capacity, the delivery of necessary
manufactured components and design changes. Mitigating these risks
requires an emphasis on up-front planning – from building close
relationships with planning authorities to understanding and
communicating across the supply chain.
Sir John Bourn, head of the National Audit Office,
said:
"Modern construction methods can produce important
benefits for housing authorities and developers, not the least of
which is the reduced emphasis on on-site activity. This is
particularly important in a time of increasing demands on an
already stretched labour force. As with any new way of doing things
there are risks, but these can be mitigated through good project
planning and management."
Housing and Planning Minister Yvette Cooper
said:
"We must ensure that we build the new homes that the
next generation can afford. This report shows that it is possible
to build faster and cheaper using modern methods of construction
whilst keeping the same high quality as traditional methods. We
said it should be possible to build a high quality house for less
than £60,000. Now the NAO has shown that is right."
Jon Rouse, Chief Executive of the Housing Corporation,
said:
"For the last five years the Corporation has been at the
vanguard of encouraging innovation and modern methods in order that
greater numbers of much needed good quality homes may be delivered
more efficiently. The results of this study clearly show that
modern methods have a distinct and continuing role to play in the
delivery of our £1.6 billion a year programme."
Note
This report is supported by more detailed material available on
an accompanying CD-ROM providing a firm basis for further
improvements in using modern methods of construction. The
background material includes a set of sample project plans, showing
how plans need to be tailored to gain maximum benefit from modern
methods of construction. Detailed cost figures are also available,
outlining how we calculated costs and how cost breakdown differs
across construction methods. Also included are scenario papers
examining cost variations for other development types, and papers
detailing the whole life cost and durability of a sample
development.
Press Notice 64/05
All enquiries to Bill Schaper, NAO Press Office:
Tel: 020 7798 7335
Mobile: 07795 120838