UNITE
Boxwood, 2009
A better way of building buildings
Summary
Off Site Manufacturing (OSM) for the construction of buildings has been an idea full of promise for a long time, but has not become a generally accepted technique. The idea is simple – manufacture components, finished rooms for instance, in a factory and then assemble them at site. Not only are efficiency, quality and safety benefits available, the construction critical path can be dramatically shortened.
UNITE plc, an innovative property developer and pioneer of modular construction, faced the challenge of how to leverage their investment in a purpose built factory. Specifically, a way of overcoming the barriers to innovation across the construction supply chain was required. Boxwood was commissioned to help UNITE create a “Unique Delivery Solution”, with goals of increasing OSM content and reducing like-for-like build costs by >5% by 2012.
Over the next nine months, a joint UNITE / Boxwood team established an innovation framework that “unlocked” the end-to-end innovation cycle, resulting in:
- Five new OSM innovations developed, manufactured and delivered into new buildings
- 13% build cost reduction for buildings completing in 2010 (c.f., original goal of 5% by 2012)
- A business measurably better at building buildings
What could UNITE not have done without Boxwood’s assistance?
Without Boxwood’s assistance, UNITE would not have so rapidly aligned the teams across Development, Construction, the extended Supply Chain, and the Factory. Bridging cultural and commercial boundaries resulted in a dramatic acceleration of innovation, increases in OSM content and bottom line results.
Problem / opportunity faced by the client, UNITE
UNITE is the UK’s largest provider of bespoke student accommodation serving universities and nearly 40,000 students countrywide. The business model innovatively recycles capital around a Develop- Build-Operate cycle that drives repeatable value for shareholders, universities, and the students who benefit from best in class, affordable accommodation.
One of the key drivers of value creation is the rate at which capital is recycled, which means that speed is vital, especially in the construction activities during Build. To this end, UNITE has pioneered an innovative modular construction technique underpinned by Off Site Manufacturing (OSM). A purpose built modular manufacturing facility and installation specialist – UNITE Modular Solutions (UMS) –produces light weight steel framed modules containing fully fitted student bedrooms that can be assembled into buildings of up to 12 stories. This is far faster than traditional construction methods because rooms arrive at site pre-fabricated, and are craned into place.
In principle, there should also be cost benefits from OSM manufacturing efficiencies – in practice these advantages have historically been eroded. Traditional construction in the other parts of the buildings such as stairwells, kitchens, etc are one of the main contributors to this erosion, which is amplified by a general resistance to OSM throughout the construction supply chain.
To access these cost advantages, the UNITE plc Board established a 5 year strategic goal to “Create a Unique Delivery Solution that gives a real edge over competitors by 2012”. The target was a 5% like-for-like reduction to build costs specifically by increasing OSM content.
Please log in to view the full case study. If you haven't registered yet, you'll need to do so and must be a client (rather than a consultant) to view this content. Registration is free and only takes a minute.
