Systemic Change Only Fix for ‘Broken’ Construction Industry

Construction delivery is no longer fit for purpose. That was the problem speakers grappled with at the Big Ideas Showcase at this year’s Urbanity-26 conference on the Gold Coast. Despite growing demand, stronger planning support and increased capital appetite, we’re still not building homes fast enough, Freecity executive director of development Michael Romano told attendees. “So, rather than asking how we produce more housing using the same system, we should also be asking: how do we improve the system itself?” Romano said. Many countries were already using industrialised delivery systems and showing that they work. In fact, Romano said, the UK delivers modular projects 42 per cent faster than conventional construction. He said Australia was slower to adopt this approach because of its fragmented construction industry, with 90 per cent of the market represented by smaller builders with fewer than 20 staff. “Feasibilities are not working because they are highly sensitive to time, cost and risk, and this is why speed, certainty and efficiency matter so much in our housing delivery system,” Romano said. “The construction industry is not fit for purpose for this challenge.” With a 50 per cent drop in productivity over the past 30 years and a deficit of 200,000 workers, compounded by a 65 per cent increase in costs over the past decade, something systemic needs to change, he said. “Historically, the construction industry has responded to these challenges by adding more labour, working longer hours and increasing spending. But today, these levers are less effective because the industry is already operating at capacity.” Getting the industry to implement smarter housing delivery systems is key to overcoming this challenge. Modular construction benefits from speed, certainty and efficiency, which addresses some of the industry’s biggest challenges. ▲ Freecity executive director of development Michael Romano: Fragmented construction industry is holding us back. Freecity is currently taking on the proof-of-concept challenge for modular. It is under way on a 20-storey PBSA project at Macquarie Park, comprising 650 modules to create 528 apartments. Managed by its vertically integrated delivery team, the homes are delivered on-site 80 per cent complete, he said. “This project demonstrates that modular construction is no longer limited to temporary or low-rise outcomes,” Romano said. “We’re trying to show the market that modular construction can integrate into dense urban environments with far less impact on local communities because there’s less noise, less dust and fewer truck deliveries to site.” Delivering modular as a sustainable proposition While the industry has been reluctant to throw its weight behind modular construction, the benefits are clear and increasingly reflect other aims in the sector, including sustainability. Main &amp; Frank co-owner architect Frank Burridge told the Big Ideas Showcase waste was not just an environmental issue. “It’s [also] a waste of time and a waste of money. [And] the way we build wastes too much and delivers too little,” Burridge said. Burridge outlined the modular construction of experimental projects using Durra Panels from the Futures Centre and Futures Studio, made from compressed wheat straw. ▲ Main &amp; Frank co-owner architect Frank Burridge: Waste not just an environmental issue. They have been used in the Greenhouse by Joost house project, as well as at Melbourne’s Woodleigh School, where the material aligned with the school’s commitment to regenerative and zero-toxic architecture. “It’s a flat-pack, modular system where every component does five or six jobs, so you get fast assembly with almost no waste,” Burridge said. “[Woodleigh School] was just the cleanest site I’ve ever been to because there was no offcutting, no waste, no things being unwrapped on site.” Instead of 30 skip pickups, the project had eight, from which up to 95 per cent was recycled. Innovative thinking, systemic change Bringing in these innovative practices was part of Samuel Property managing director Illan Samuel’s emphasis at the Big Ideas Showcase around the need for developers to redesign their internal processes. “You don’t want to be surrounding yourself with people that just say yes and think that whatever we did previously is going to work,” Samuel said. The “flat-pack” architecturally designed projects Burridge outlined were more future-focused, but they signify a maturing industry where we are likely to see greater standardisation, more financing pathways and integrated delivery models, according to Romano. “Modular construction is not suitable for every project … it generally works best where repetition exists, where sites are constrained and where speed is important. “But success requires collective action because housing productivity is ultimately a systems challenge.”

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Systemic Change Only Fix for ‘Broken’ Construction Industry

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