New England-based HFA architect cites potential savings from
rapidly evolving and more efficient approaches to construction and
procurement
FRANKLIN, Mass., July 25,
2024 /PRNewswire/ -- Multifamily developers stand to
reap huge savings by adopting more efficient approaches to
procurement and construction, advises the leader of HFA
Architecture + Engineering's development design studio in
Franklin.
In a July 10 column for
Multi-Housing News, HFA's Aksel
Solberg (AIA, NCARB) points to the specific potential
for so-called "industrialized" construction to yield savings in
areas like concrete, insurance and construction-loan interest rates
in the multifamily residential sector.
These methods typically involve working with a specialty firm
that will purchase raw-steel coils, convert them into studs at the
factory and deliver them to the site for assembly and installation.
While prefabrication is involved, Solberg observes, it is not
exactly the same thing as "modular construction."
"Industrialized construction also centers on the aggregated
benefits of taking an upstream approach to the supply chain," he
writes. "That's because the specialist company acts as the
procurement hub, not only for precut or prefabricated
core-and-shell components, but also, in some cases, for things like
electrical panels, plumbing supplies and HVAC equipment."
In the piece, Solberg asks the reader to imagine a smaller
multifamily developer building a midrise project in a secondary
market. Typically, this involves shouldering the high cost of a
concrete-and-steel podium and topping it with wood-stick
framing.
To leverage industrialized construction, the developer instead
teams with a specialist company that acts as the structural
engineer and procures and provides prefab components for the core
and shell. The steel studs, Solberg notes, "can be snapped together
on site like LEGOs." Precut drywall could be part of the picture as
well.
The developer avoids the high cost of that concrete-and-steel
podium and of cutting drywall and wooden studs on site. "And
because those prefab steel studs are classified as noncombustible,"
Solberg notes, "the project's insurance premiums are a fraction of
those associated with conventional, stick-framed construction."
When it comes to construction loan interest rates, by some
estimates the accelerated schedules made possible by industrialized
approaches can save up to $40,000 for
every $1 million financed in carry
costs alone. On large industrialized projects leveraging panelized
structures made of light-gauge steel, the initial risk insurance
savings can reach seven figures, Solberg writes.
Meanwhile, build-to-hold developments often see additional
returns throughout the life of the investment.
Bentonville-based Industrialized Construction
Solutions (ICS) is one example of a specialty firm focused on
these methods. Solberg cites ICS's success in making costs and
construction schedules more predictable for multifamily developers
in Arizona and Nevada, as well as national chain drugstores,
QSRs and retail banks. On an industrialized project, he writes,
"the developer's single procurement contact relies on strong
relationships with suppliers of standardized equipment to source
project components with shorter lead times and deliver and install
them faster."
Need for precision
Solberg notes that making these projects run smoothly requires
an extraordinary amount of precision and close coordination by the
entire AEC team. He encourages multifamily developers to look for
firms with expertise in Design for Manufacturing & Assembly, or
DFMA.
On an industrialized project, "the master architect will start
coordinating with a company like ICS from the outset, and with a
much-higher level of detail than is standard," Solberg explains.
"Getting the GC's project manager involved at the design stage is
another important best practice. Doing so can further speed up
delivery and installation of items with long lead times, like a
600-amp electrical panel."
Especially in today's environment, the architect concludes,
"both large and small developers would do well to start a
conversation with their AEC teams about the potential to 'go
industrial.'"
The full column is available at:
https://www.multihousingnews.com/making-proformas-pencil-by-going-industrial/
Media Contacts: At Jaffe Communications,
Elisa Krantz, (908) 789-0700,
380838@email4pr.com
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SOURCE HFA Architecture + Engineering