Are you Seeing the Full Picture when it Comes to Construction Costs?

The physical building cost is just one element in the overall business case for a construction project. Using a whole life costing model can lead to completely different decisions about how projects should be executed.

In many ways the whole life costing model makes an even stronger case for using panelised offsite construction such as the Innovaré System.

Design

Whole life costing starts with the design stage. In traditional builds design can be divorced from the construction phase. Technical issues are often unresolved and issues of buildability not sufficiently considered.

Innovaré’s in-house design and engineering expertise ensures the project is better integrated and design-led. There is much less uncertainty about how easy the design will be to build, how long construction will take and how much it will cost.

Future Costs

Whole life costing also considers future costs including maintenance, repairs, energy use, and ultimately dismantling and disposal.

According to Construction Excellence ‘unplanned and unexpected maintenance and refurbishment costs may amount to half of all money spent on existing buildings. Estimates of the value of the unplanned portion in UK construction output range from £8 billion to £20 billion per annum.’

This surely makes the case for considering future maintenance costs within the business case. Panelised construction such as the System from Innovaré use high quality, precision engineered components that greatly simplify the construction process to significantly reduce the chances of in-service defects occurring, reducing maintenance costs.

Energy Use

Energy use is a critical consideration, particularly in sectors such as education and healthcare. Ensuring that components within the construction have proven thermal performance to ensure that energy costs are both lower and more predictable are a must. Panels such as those used within the System boast excellent insulating properties and air-tight seams allow energy efficiency standards up to Passivhaus to be met.

Capital Cost

The other important element in whole life costing is finance. The shorter completion times and fewer post construction defects that panelised offsite construction can provide, means that buildings are occupied sooner to unlock revenue flows. Interest payments are, therefore reduced, as is the opportunity cost of having capital tied up in a project that is not yet completed.

Partnering with a single organisation that can link the entire process including design, manufacture and installation is the surest way to minimise construction times and ensure buildings are occupied and generating revenue as soon as possible.