{"id":84216,"date":"2020-10-22T08:33:18","date_gmt":"2020-10-22T07:33:18","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=84216"},"modified":"2020-10-22T08:33:18","modified_gmt":"2020-10-22T07:33:18","slug":"modern-methods-of-construction-6","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/modern-methods-of-construction-6\/84216\/","title":{"rendered":"Industry must provide documented evidence to support MMC"},"content":{"rendered":"<h2>MMC projects employ a set of relatively new skills in UK construction. <a href=\"https:\/\/www.pbctoday.co.uk\/news\/stakeholders\/hemsec-manufacturing-ltd-insulated-panel-manufacturers\/58297\/\" target=\"_blank\" rel=\"noopener noreferrer\">Hemsec<\/a> examines the need for greater skills in estimating for MMC, and for a range of documented evidence of the benefits, to support the delivery of these new methods and the products used<\/h2>\n<p>\u201cWhat is undeniable is that MMC projects are quicker, but this is not demonstrated sufficiently, because there is minimal benchmark data available.\u201d Ian Dacre, chartered quantity surveyor.<\/p>\n<h3>Where does MMC fit in the UK today?<\/h3>\n<p>The UK building industry is increasingly employing Modern Methods of Construction (MMC), evidenced by the growing number of build projects for residential, industrial and public sector\/commercial property. This growth is driven by the need to build more homes to address the housing crisis, for garden offices and emergency buildings generated by the Covid situation, and for more and extended public and private sector industrial\/commercial buildings.<\/p>\n<p>Within the industry, there are passionate advocates of modern <a href=\"https:\/\/www.pbctoday.co.uk\/news\/modular-construction-news\/modular-construction-sips\/60702\/\" target=\"_blank\" rel=\"noopener noreferrer\">offsite construction<\/a>, using materials such as <a href=\"https:\/\/www.pbctoday.co.uk\/news\/modular-construction-news\/increase-use-of-sips\/73955\/\" target=\"_blank\" rel=\"noopener noreferrer\">Structural Insulated Panels<\/a> (SIPs); however, much work needs to be done to convince others, including at the time of writing, most architects, quantity surveyors and contractors, to shift, when it benefits the project, from traditional methods.<\/p>\n<p>One area where greater knowledge is needed is in the skill of estimating for MMC. Ian Dacre, a partner at Rider Levett Bucknall in Bristol, a chartered quantity surveyor with over 25 years\u2019 experience and an assessor for the <a href=\"https:\/\/www.rics.org\/uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">RICS<\/a>, talked to Hemsec about the complexities and the need for greater skill in estimating.<\/p>\n<p>Ian has been involved with <a href=\"https:\/\/constructingexcellence.org.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Constructing Excellence<\/a> (CE) for several years and has undertaken research in:<\/p>\n<ul>\n<li>Defining value.<\/li>\n<li>Supply chain integration.<\/li>\n<li>Knowledge management.<\/li>\n<li>Performance management with CE and the <a href=\"https:\/\/www.uwe.ac.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">University of the West of England<\/a>.<\/li>\n<\/ul>\n<h3>What are the challenges of assessing the overall value of MMC projects?<\/h3>\n<p>\u201cThere is limited data available; although there are many publications which discuss the pros and cons of MMC,\u201d explains Ian, \u201cthere is nothing to date published on the commercial aspects.<\/p>\n<p>\u201cSo, it is a challenge but there are some principles we can follow, so that we can start to create a bank of knowledge relating to the cost, value and performance of MMC projects.&#8221;<\/p>\n<ul>\n<li><strong>Value:<\/strong> In terms of assessing value, there are two aspects:<\/li>\n<\/ul>\n<p>o\u00a0\u00a0 Capital value.<\/p>\n<p>o\u00a0\u00a0 Whole-life value.<\/p>\n<p>While they are totally different, they should nonetheless be viewed as one, because it is critical to understand the full cost both of constructing and maintaining a building, if we are looking at the benefit of the whole project.\u00a0It is impossible to do so by taking the capital value alone.<\/p>\n<ul>\n<li><strong>Cost:<\/strong> We need to ask ourselves: how do we benchmark a quotation or programme-saving offered from an MMC provider?<\/li>\n<li><strong>Performance:<\/strong> We must use the MMC providers\u2019 information as there is no historic data available at present.<\/li>\n<\/ul>\n<p>\u201cIn conclusion, we need the experts \u2013 <a href=\"https:\/\/www.hemsec.com\/about-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">the MMC providers<\/a> \u2013 to supply the information.<\/p>\n<p>&#8220;Once it becomes widely available in the marketplace and everyone can access it, this will enable us to benchmark projects \u2013 it will be a major step forward,&#8221; says Ian.<\/p>\n<h3>How can an assessor accurately estimate the total costs? For example, the impact of greater construction speed?<\/h3>\n<p>\u201cThere are tools available. Programme management can demonstrate the time efficiency savings but, at the moment, we also need to factor lead-in times. One of the problems we have is that sites cannot manage the speed of MMC,\u201d says Ian.<\/p>\n<p>It would appear that sites are not set up for how quickly materials arrive and are installed; this leads to sites not being ready, tradespeople not being in place and other delays. This is where education in process is needed, so that programme management works properly.<\/p>\n<p>\u201cWhole Life Cost (WLC) models can generate the occupancy costs over a period of time but, again, as with any kind of research data, we need several MMC projects to be built and monitored over time to see the overall effects,\u201d Ian asserts.<\/p>\n<h3>What data is needed and how does the industry get it?<\/h3>\n<p>\u201cUnfortunately, the amount of current data is minimal and is not widely available. Generally, most is based on a historic project people are familiar with but which is not documented,&#8221; Ian says.<\/p>\n<p>\u201cCost data for capital expenditure is not readily available in the marketplace when compared to other materials and structural solutions, which have been used and documented for many years.<\/p>\n<p>\u201cThere are many reports, papers and magazine articles that bestow the benefits of MMC and possibly things to watch out for but nothing as yet on cost and whole-life value.<\/p>\n<p>\u201cIt is possible to obtain information on lead-in times, delivery times and erection times from MMC suppliers but it is difficult to get accurate cost information.&#8221;<\/p>\n<h3>What are the &#8220;hidden costs&#8221; in estimating for traditional methods that get overlooked when comparing them with MMC?<\/h3>\n<p>\u201cThe hidden costs include waste and redoing things on site, both of which stem from a lack of understanding. One could also argue that there are possible inefficiencies due to the external environment in which people are working, such as weather. These are not really hidden, but are inherent in the programme where the main construction process takes place outdoors.\u201d<\/p>\n<p>Hemsec team members have seen costs being added where firms have used unnecessary materials because they don\u2019t understand the <a href=\"https:\/\/www.hemsec.com\/products\/sips\/\" target=\"_blank\" rel=\"noopener noreferrer\">way SIPs work<\/a>. For example, people use them for cladding inside a wall, roof or ceiling made from different materials, not realising that the SIP itself is structural and is a full supporting wall with insulation built in.<\/p>\n<p>\u201cWhat is undeniable is that MMC projects are quicker but this is not demonstrated sufficiently, because there is minimal benchmark data available,\u201d says Ian<\/p>\n<h3>How do we persuade professionals such as architects and QS to recognise this when comparing with MMC?<\/h3>\n<p>\u201cWhen it comes to the perceived lack of understanding, when someone does not understand something or it has not been demonstrated sufficiently or proven, a risk factor may be applied (both cost and programme, and maybe performance in the WLC arena),&#8221; says Ian.<\/p>\n<p>\u201cThis is potentially unfair to the MMC solution but it is down to knowledge and experience, which can only be gained by undertaking projects, and having benchmark data readily available.&#8221;<\/p>\n<p>So, until there is benchmark data available it is going to be chicken and egg, and down to the individual architect and QS to take the leap.<\/p>\n<p>SIPs are frequently used in MMC projects, yet for those not familiar with them, their basic cost is often compared with traditional products.<\/p>\n<h3>How logical is this?<\/h3>\n<p>Ian says: \u201cThe costs need to be looked at as part of a whole method in order to answer this question. As users, my firm knows the benefits and the hidden cost savings that result in overall reductions later in the build programme. So, even if SIPS appear more expensive initially, people build with them because they fully understand the all-round benefits, including the speed of construction, the whole of life costs including running and maintenance, and the environmental gains.<\/p>\n<p>\u201cThere has always been a conversation about the all-round effectiveness of steel and concrete frames \u2013 but both are continually built. Unless the industry \u2013 probably the SIPs suppliers and other MMC suppliers &#8211; provide some cost data for a comparison to be made, people may well pass the product by.<\/p>\n<p>\u201cIt may be that the procurement solutions we have, such as Design &amp; Build, don\u2019t allow for the true savings to be passed on, as they are not understood sufficiently. If Construction Management (CM) was used, whereby specialised project management techniques were used for the planning, design and construction, the overall savings would be passed directly to the client once the project is complete.&#8221;<\/p>\n<h3>What prevents professionals from looking at the project costs as a whole?<\/h3>\n<p>\u201cWe do generally but, dare I say, it comes down to commerciality,\u201d says Ian.<\/p>\n<p>\u201cA Life Cycle Costing (LCC) or Whole-Life Costing (WLC) model is usually an extra over service and fee, and I think it\u2019s realistic to say that the main cost focus on a project is usually the capital.<\/p>\n<p>\u201cFor the future, though, there is increased focus on WLC, as we are realising the capital cost is minimal in comparison to WLC.\u201d<\/p>\n<h3>What investors, lenders, valuers and insurance warranty providers need to know about MMC<\/h3>\n<p>Ian Dacre believes that there is a degree of scepticism amongst these sectors, probably because MMC is still relatively new.<\/p>\n<p>\u201cI would say simply, let us get some evidence into the marketplace:<\/p>\n<ul>\n<li>Capital cost models: How much are they?<\/li>\n<li>Demonstrative programme savings: How long did they take to build (lead-in, ordering, supply and erection)?<\/li>\n<li>Energy efficiency: Cost in use calculations.<\/li>\n<li>Whole-life cost assessments.<\/li>\n<li>Details of how to extend\/alter\/adapt an MMC solution (this is difficult I know, but traditional builds are well understood).<\/li>\n<\/ul>\n<p>\u201cIf all this data were available, people could make assessments, whether rightly or wrongly, but it allows them to make their own view and not rely on others\u2019. It\u2019s not about lack of trust; it\u2019s just people like to make their own decisions based on the information presented to them. It is also how it is presented and by whom. The more information to benchmark or compare against, the better.\u201d<\/p>\n<h3>How can professionals learn about the benefits of MMC in the meantime?<\/h3>\n<p>Ian says: \u201cThe benefits are out there if you choose to look.\u00a0 I think one of the inhibitions felt by professionals is a fear that they may be losing control of design, maybe, and possibly losing control of a key programme deliverable.<\/p>\n<p>\u201cHaving said that, transference of risk of this element has to be a huge benefit especially when PI levels are increasing dramatically. I know the SIPS suppliers will have PI to cover but this is more of a discrete market, with specialists designing a specific product, frame or panel.<\/p>\n<p>\u201cAs to how people learn; in my opinion, all forms of communication that transfer knowledge to others is going to help bring change about. With the mass of communication that happens these days, it must be very brief, snappy and get the point across in terms of the programme savings and the cost information.<\/p>\n<p>\u201cI was invited to an MMC factory visit last year. Preceding the visit, we had a quick presentation by the company of what they did and how they did it; however, there was nothing about cost and value. I know I\u2019m a QS, but this is my point. We can all discuss the opportunities (and maybe risks) with MMC but without costs, the jigsaw is not complete.\u201d<\/p>\n<h3>What will be the shift in thinking in UK construction in the future?<\/h3>\n<p>Ian explains: \u201cArchitectural design is one thing and we all want nice environments in which to live. The architects are the experts in creating buildings to fit in with or enhance an area, or contrast in an area by designing a one-off.<\/p>\n<p>\u201cI believe that the shift in thinking may be with how we deliver the design &#8211; or products. The number one key driver to change will be cost.<\/p>\n<p>\u201cProcurement is also a major issue, as the MMC supplier will have to be integrated into the team, sometimes before the main contractor, as the product may be fundamental to the whole structural solution. How this is achieved requires a shift in how we all procure. I have a housing project at present where we have approached MMC providers to tender and to become part of our design team for their solution.&#8221;<\/p>\n<p>Once designed, it will be tendered in the usual way, including:<\/p>\n<ul>\n<li>Technical erection and structural details.<\/li>\n<li>Interface details with other products and trades on site (this will vary depending on the MMC product).<\/li>\n<li>Fire risks.<\/li>\n<li>Delivery, storage and erection.<\/li>\n<li>Programme efficiencies \u2013 not just saying it\u2019s faster.<\/li>\n<\/ul>\n<p>Ian concludes: \u201cWe need an independent authority to write a study using the data that is available from MMC suppliers and manufacturers about mainly the cost and programme effects of their products. There is a wealth of information on the traditional forms, therefore it is easy to compare and analyse. We need something for MMC that will be built upon and expanded upon over the years to become an industry recognised reference document.<\/p>\n<p>\u201cLCC and WLC needs to be covered but generally, at present, this is not the main criteria for selection.\u201d<\/p>\n<p><em>Please note that Ian\u2019s responses are his own personal views and not necessarily those of his employer nor of Hemsec.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Ian Dacre<\/strong><\/p>\n<p><a href=\"https:\/\/www.hemsec.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Hemsec<\/a><\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>MMC projects employ a set of relatively new skills in UK construction. Hemsec examines the need for greater skills in estimating for MMC, and for a range of documented evidence of the benefits, to support the delivery of these new methods and the products used.<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[13038,897,676,664,916,696,29648,592,660],"stakeholder_rel_tag":[172453],"contributor_rel_tag":[],"class_list":{"0":"post-84216","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-building","8":"tag-cladding","9":"tag-construction","10":"tag-construction-services","11":"tag-modern-methods-of-construction","12":"tag-offsite-construction","13":"tag-sh-hemsec","14":"tag-skills","15":"tag-skills-shortage","16":"stakeholder_rel_tag-hemsec"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Industry must provide documented evidence to support MMC<\/title>\n<meta name=\"description\" content=\"Hemsec examines the need for skills in MMC, and for a range of documented evidence of the benefits, to support the delivery of these new methodd\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/modern-methods-of-construction-6\/84216\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Industry must provide documented evidence to support MMC\" \/>\n<meta property=\"og:description\" content=\"Hemsec examines the need for skills in MMC, and for a range of documented evidence of the benefits, to support the delivery of these new methodd\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/modern-methods-of-construction-6\/84216\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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