Process innovation, off-site fabrication and new technology are all being put to the test. The first 4700 homes resulting from Sir John Egan's Rethinking Construction report are taking shape on site. Over these 20 pages Building Homes sifts through the evidence in the biggest UK homebuilding trial ever.
By far the most tangible evidence of the Housing Forum's work and of homebuilding industry change is the 68 demonstration projects under way around the country. Projects are focusing on a number of different areas of improvement highlighted by Sir John Egan's Rethinking Construction report with both process innovations such as partnering and technical innovations such as off-site fabrication. Prefabrication is the most widely tested technology, with more than half of the projects using some form of off-site fabrication, whether steel frame or modules, timber frame, cassette or modules, precast concrete panels or proprietary factory panels.

Most of the demonstration projects in progress are in the social housing sector, so it is perhaps not surprising that the Egan targets being given top priority are: reducing defects and capital costs, and increasing predictability of time and cost.

This month the Forum publishes its second demonstration project report charting the progress of projects to date. The findings provide food for thought for all involved in housebuilding, whether or not they are currently innovating as:

  • there is enthusiasm for the demonstration project process and organisations are committed to sharing their lessons in return for new information;
  • although it is networking with like-minded organisations, the Housing Forum must realise there is still a long way to go in terms of turning the industry round. Should the Forum look at how long it took other industries such as oil and car manufacturing?
  • although there is excitement about savings in time and cost during the build period, a huge amount of waste is still being generated by statutory bodies, such as planning and local authority legal departments;
  • some projects feel they must get everything right before reporting back to the Forum. But in fact, the lessons learned from negatives are just as important as the successes;
  • there is concern that the Housing Corporation will reduce funding in real terms by 10% year on year in line with the Egan agenda. Also will the Housing Corporation check on Egan compliance? Who will regulate the Egan proxies?
  • capital cost savings are not being realised. It is anticipated that costs will fall on future schemes once project procedures have been revised;
  • it is perceived that if capital costs are stable, value for money is increasing in terms of quality of end product;
  • time spent on pre-planning for a partnering project is very intensive, compared to traditional working. If this continues on a project-to-project basis, partnering will not be cost effective;
  • economies of scale must be realised through volume of work in order to drive prices down for off-site fabrication, as prefab projects are typically seeing capital cost increases between 10% and 20%, compared to traditional construction;
  • there is little detailed focus on whole life costing. There is still a perception that clients are getting better value for money and a better product through partnering;
  • information is not being filtered from the top down to the managers who will have to implement the changes;
  • by adopting change and streamlining processes at a project level, organisations are now looking at internal procedures that may delay works both pre and post contract;
  • personalities and committed leadership are key aspects of partnering and several projects have faltered due to changes in personnel;
  • the skills shortage is not being addressed by refurbishment projects. Are there other ways of completing the works through new materials and mechanisation? and
  • section 20 notifications are in direct conflict with the ethos of partnering and can hinder the benefits of continuous work.

    Housing Forum - putting together the case for change

    When Sir John Egan preached the new gospel of change and innovation with his Rethinking Construction report, the prospect of converting an industry renowned for its scepticism seemed at best, unlikely. But two years ago the Housing Forum took on the task of spreading the word, and since then it has brought private and public sector developers, manufacturers and subcontractors, professional institutions, local authorities, contractors and consultants into the fold. The common goal is continuously improving quality, efficiency, sustainability and value for money in both social and private housebuilding. The Forum has put in place many of the building blocks for the industry as it works towards that goal. It:
  • has established techniques for setting key performance indicators and benchmarks, including publishing a benchmarking charter and the setting up of a benchmarking club;
  • encourages partnering agreements - that are competitive, transparent and accountable - through the supply chain and has produced a partnering survey and report;
  • has established a portfolio of demonstration projects that show clear benefits of adopting change in the process and by technical innovation;
  • has set up a series of regional groups around the country to share and disseminate demonstration project information, promote networking opportunities for like-minded professionals and promote the work of the Housing Forum;
  • has set up a National Customer Satisfaction Survey of private sector housing;
  • is working closely with Movement for Innovation (M4I) and the Local Government Task Force. The Forum is chaired by Sir Michael Pickard and is headed up by David Crewe, chief executive and Judith Harrison, project director. There are three project managers: Mehban Chowdery - customer satisfaction working group and benchmarking club; Marcus Keys - demonstration projects and regional groups; and Paul Reader - Local Government Task Force. Contact the Housing Forum at www.thehousing forum.org.uk. On 19 October the Forum is holding its annual conference: Customer and client power: the future, at the Britannia Hotel, in Marsh Wall, east London.

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    Building Homes