5 ACE Tips How to Build Better Relationships with Off-Site Manufacturers

Tuesday, September 24th, 2019BuildingsRichard Evans

The UK is in turmoil, not just politically, but enduring what can be described as an antiquated construction industry - as Mark Farmer's report 'Modern or Die' clearly points out - as he says "aiming to put everything into perspective". We have the most impressive buildings, old & new, but the issue is of course deeper in exactly how we build and the implications of what is really an outdated system. Hampered with low productivity, lack of R&D and a shrinking workforce. But the good news is productivity can be enhanced by building in quality controlled factories.

The industry is not considered attractive to young people as a career path

The excuses are running out for not adopting MMC. That said, no hard-core data on costs for OSM has been published, which is a concern. That is unless your ear is close to the ground on worldwide pricing - like ours. The fact that modular is really no cheaper price-wise despite perhaps a few isolated cases, but you clearly win with the speed of the build which is site/project specific, so therefore improved IRR plus better quality and many other benefits you may be aware of - did I mention health & safety?

Volumetric, Panels or Hybrid?

What works for you and the site, cost and deliverability wise?

To progress matters and get to grips with the housing crisis, several factors have to be considered. Firstly, embrace MMC, and consider OSM only where appropriate. However engaging Off-Site Manufacturers is not as easy as you think. The UK is short of production capacity no doubt, limited finances with factory profitability, at a loss of 2400% worse case & best case 13% positive. Main contractors generally naturally have limited experience of Volumetric albeit dipping their toes in with bathroom & other small pods. If other countries are building successfully with OSM for so many years - why is the UK still fighting it? The benefits are obvious.

So what choice do you have? Adopt collaboration with overseas experts, whom have been manufacturing for absolutely decades in many challenging countries that demand the highest quality. Carry out sufficient due diligence ensuring PQQ covered, avoiding time that may be wasted later down the line.

It is all about collaborative working. Becoming partners and consider some OSM's may well be interested in a JV role. Some OSM's are also developers in their own right - so think strategically.

Five tips - if I may be bold;

Articulate as much as possible information in one proposal first time, including necessary details. Including the basics and as much detail as possible Identify clearly who does what in the process, turnkey requirement? Who will fulfil the contractor role and take the ultimate or shared risk? Which UK delivery partner has sufficient experience? Typical specimen questions feature on our Lithuania GB website here
Try not to discuss anything but the build initially, the OSM doesn't need to know all the details about UK planning laws and what you had for dinner last night - they just wish to build and deliver. Drawings, date of required completion, necessary accreditations you require, quality assurance, payment terms and if you are a pleasure or a pain to work with!
When you receive your price provide feed-back honestly as soon as possible engaging over the phone or even better face to face. Smoke & Mirrors will disengage the factory immediately, their focus is to fill their factory with business from people they ultimately trust, converting whatever is appropriate for their production line and what they consider is longterm business, which is sustainable. Despite hospitality offered, factories are ruthless for good reason, they have mouths to feed as do you and their tolerance level for tyre kickers is waining.
Work with an architect that has sufficient experience in OSM, not one that will just 'considerate it'. Factories have they own in-house technical teams to assist and are more than happy to work with architects that understand the process (or wish to understand) and will work with them, not against them, in an attempt to score points with the client.
Treat OSM's with respect, it's a partnership, you need each other & the days of chipping suppliers in between or at the end of each project in an attempt to make up on areas of loss outside their remit are unwarranted and let's face it unethical. Ensure sufficient legal paperwork is in place as normal with any project, which protects all parties, work as closely together meeting as much as possible to keep the dialogue open and never assume anything when dealing with different cultures. With UK know-how of professional delivery teams and overseas experts there is a solution to build faster, better, greener and safer.