Markets

The Advantages of Prefabrication in Competitive Real Estate Markets

Prefabrication is promising for the construction industry since it moves part of the building process to a controlled factory environment. Decreased uncertainty is key in regions with competitive environments.
By Michael Tobias
June 12, 2019
Topics
Markets

Construction and assembly line manufacturing involves the transformation of raw materials into a completed product. However, construction projects bring two challenges that set them apart from manufacturing.

  • The building process must be carried out at the project site, under the influence of external factors that cannot be controlled.
  • Construction also deals with unique projects, contrasting with the repetitive nature of assembly lines.

Prefabrication is promising for the construction industry because it moves part of the building process to a controlled factory environment. External factors such as the weather and traffic have a reduced impact on the project, and construction waste can be reduced.

Because prefabrication reduces uncertainty during the construction process, it helps developers meet their deadlines. This is a significant advantage in competitive real estate markets, such as New York City and Chicago.

Improving Quality and Reducing Waste with Prefabrication

Quality control can be difficult with traditional building methods since there are construction site hazards during inspections. Also, construction work that was performed correctly may be damaged by the weather or other external factors. Prefabrication isolates part of the construction process from the project site, and this brings several benefits: material savings, safer working conditions and enhanced quality.

Because prefabrication uses modular elements, bills of materials can be calculated more accurately. Prefabrication also minimizes the waste and labor associated with rough-in: MEP installations can be embedded in building modules during their manufacturing process. Additional efficiency is possible with automation, which is more difficult to deploy in an exposed construction site.

Waste can also be collected and reused more easily in a factory environment. On the other hand, waste from construction sites is often a mix of materials that is difficult to separate and recycle. This is especially true for construction materials that come in predetermined sizes, such as electrical conduit. Since these materials are cut as needed, there are plenty of left of leftover pieces that cannot be used.

Quality control is simplified when building components can be inspected on a factory floor, and there is no need to climb a structure under construction. The risk of material theft is also reduced in a factory and weather-related damage is avoided. Prefabrication makes the construction process safer for the technical staff, moving plenty of the work from the project site to a controlled environment.

Prefabrication can simplify the construction process when the site has limited space, which is common in urban areas. For example, a project surrounded by tall buildings and a high-traffic street has limited space for storage and heavy equipment activities. In this case, the project becomes much simpler with prefabricated modules.

How Prefabrication Can Make Developers More Competitive

Meeting project deadlines is critical when there is a high demand for apartments or commercial spaces. When a construction project is developed with the intention of renting, a missed deadline causes a delay in rent payments. Project delays become a more serious issue if the developer has already signed leases with potential tenants. In these cases, there may be legal consequences for not delivering the rented spaces on time.

Unfavorable weather often delays building projects, especially when the entire construction process is performed outdoors. Due to the uncontrollable nature of the weather, contracts often include clauses that remove liabilities when it causes project delays. However, missed deadlines in construction still have operational and financial consequences. Prefabrication is an effective strategy to mitigate weather risks since activities in a factory floor can continue regardless of project site conditions.

Even if there is no rush to complete a project and there is ample space available, prefabrication reduces the impact of construction on the surrounding area. Construction activities produce noise while releasing dust and other particles into the air. Health care facilities, educational institutions, residential buildings and offices are especially sensitive to noise. Prefabrication can minimize disruption if there are sensitive buildings close to the project site.

Prefabrication offers many benefits, but it requires technical expertise like any construction method. To implement prefabrication successfully, construction administration services from a qualified engineering firm are strongly recommended.

by Michael Tobias
Michael Tobias, PE, LEED AP, CEM, is the founder and principal of Chicago Engineers, an Inc 5000 Fastest Growing Company in America. He leads a team of 30+ mechanical, electrical, plumbing, and fire protection engineers from the company headquarters in New York City; and has led over 1,000 projects in Chicago, New York, New Jersey, Pennsylvania, Connecticut, Florida, Maryland, and California, as well as Singapore and Malaysia.

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