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Mcgraw-Hill Construction Report – Prefabrication and Modularization

Mcgraw-Hill Construction Report – Prefabrication and Modularization

SmartMarket Report

Prefabrication and Modularization: Increasing Productivity in the

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McGraw-Hill Construction Prefabrication and Modularization: President Increasing Productivity in Keith Fox the Construction Industry Vice President, Product Development SmartMarket Report About McGraw-Hill Kathryn E. Cassino Executive Editor Construction Harvey M. Bernstein, F.ASCE, LEED AP McGraw-Hill Construction McGraw-Hill Construction Research & Analytics/ Editorial Directors (MHC), part of The McGraw-Hill Industry Insights & Alliances John Gudgel Companies, connects people, Michele A. Russo, LEED AP projects and products across the Vice President, Industry Insights & Alliances Managing Editor design and construction industry, Harvey M. Bernstein, F.ASCE, LEED AP Donna Laquidara-Carr, LEED AP serving owners, architects, Senior Director, Research & Analytics Director, engineers, general contractors, Burleigh Morton Design & Production subcontractors, building product William Taylor manufacturers, suppliers, dealers, Director, Partnerships & Alliances John Gudgel Art Director/Production Manager distributors, and adjacent markets. Alison Lorenz A reliable and trusted source Director, Green Content & for more than a century, MHC Research Communications Contributing Art Directors Michele A. Russo, LEED AP Segal Savad Design has remained North America’s Harry Segal, Principal/Creative Director leading provider of construction Reproduction or dissemination Alex Flannery, Designer project and product information, of any information contained Editor plans and specifications, industry herein is granted only by contract Enver Fitch, LEED Green Associate news, market research, and or prior written permission from industry trends and forecasts. In Contributor McGraw-Hill Construction. recent years, MHC has emerged Bruce Buckley as an industry leader in the Research Project Manager Copyright © 2011, McGraw-Hill critical areas of sustainability and Dana Gilmore, MRA, PRC Construction, ALL RIGHTS RESERVED interoperability as well. Research Analyst In print, online, and through Mevhibe Barton events, MHC offers a variety of For further information on this tools, applications, and resources SmartMarket Report or for any that embed in the workflow of our in the series, please contact: customers, providing them with McGraw-Hill Construction the information and intelligence Research & Analytics they need to be more productive, Crosby Drive, Suite 201 successful, and competitive. Bedford, MA 01730 Backed by the power of Dodge, 1-800-591-4462 Sweets, Architectural Record, [email protected] News-Record (ENR), GreenSource and SNAP, McGraw-Hill Construction serves Environmental Benefits Statement: This report is printed using more than one million customers soy-based inks on New Leaf ReincarnationMatte, made with 100% recycled within global construction fiber, 50% post-consumer waste and processed chlorine-free with a community. To learn more, visit cover on New Leaf Primavera Gloss, made with 80% recycled fiber, 40% us at www.construction.com. post-consumer waste, processed chlorine-free. By using this environmentally- friendly paper, McGraw-Hill Construction saved the following resources (calculations provided by New Leaf Paper, based on research conducted by Environmental Defense Fund and other members of the Paper Task Force): 20 fully grown 9,200 gallons 6 million 559 pounds of 1,910 pounds trees of water BTUs of energy solid waste of greenhouse gases

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Introduction

refabrication and modulariza- Last year, in the Green BIM SmartMarket y tion are construction processes Report (2010), we looked at the conver- str that the industry has used for gence of the BIM and green trends and centuries. So why in 2011 is found that construction professionals who

n Indu PMcGraw-Hill Construction conducting for- use BIM on green projects are more likely ward-thinking market research on what to do model-driven prefabrication than ctio

u many consider to be old, well-established non-green BIM practitioners. These green methods used on construction projects? BIM practitioners saw model-driven prefab

str Harvey M. Bernstein

n Well, to paraphrase the song, everything as a way to design and construct greener F.ASCE, LEED AP o old about prefab and modular is new again. buildings and have a greener site. Vice President e C Industry Insights & Alliances This reemergence of prefab and modular Now, in this SmartMarket Report, we McGraw-Hill Construction

n th as a “new” trend is tied to the rise of BIM take a new look at prefabrication and y i and green building, critical new trends modularization and their impact on a major it v identified by McGraw-Hill Construction and initiative within our industry—improving

cti other industry leaders. productivity. Through an Internet survey

du The emergence of building information of hundreds of AEC professionals, we

ro modeling (BIM) is influencing design and gathered data on the impact of prefabri- P

g construction processes and how project cation and modularization on key industry n

si teams collaborate. In the Business Value productivity metrics including project

ea of BIM SmartMarket Report (2009), we schedules, costs, safety, quality, eliminat-

cr found that a key benefit of BIM is enabling ing waste and creating green buildings. the increased use of prefabrication and Some of the most significant productivity John E. Gudgel n: In Director, modularization, which in turn improves findings from prefabrication and modular- Partnerships & Alliances tio worksite productivity and overall project ization users include the following: McGraw-Hill Construction za

ri ROI. Contractors were especially excited, ■■66% report that project schedules are with 77% believing that BIM would allow decreased—35% by four weeks or more. dula them to use prefabrication on larger, more o complex projects in the future. ■■65% report that project budgets are The phenomenal growth in green build- decreased—41% by 6% or more

n and M ing has also had an undeniable impact on ■■77% report that construction site waste the construction industry. Just last year, in tio is decreased—44% by 5% or more. a Green Outlook 2011 we estimated that up to 35% of new nonresidential construction We would like to thank our premier part- bric is green, representing a $54 billion market ners including NIST, the Modular Building Donna Laquidara-Carr, efa Ph.D., LEED AP r opportunity that will grow to $120 billion or Institute, Island Companies, and Syntheon; P Manager, Green Research more by 2015. and our other corporate & association part- and Communications ners for supporting this study. McGraw Hill Construction

Harvey M. Bernstein, F.ASCE, Professor with the University of ability. He has over 17 years of direction, analysis and content LEED AP, has been a leader in Reading’s School of Construction experience in technology project to the SmartMarket Reports, the engineering and construc- Management and Engineering in management in the computer and examining critical construction tion industry for over 30 years. England. Bernstein has an M.B.A. telecommunications industries. trends including BIM and green Currently, he has lead responsibil- from Loyola College, an M.S. in John has an M.S. in eCommerce building. Previously, with MHC’s ity for MHC’s market research engineering from Princeton Uni- from George Mason University, Dodge division, she has nearly group as well as MHC’s thought versity and a B.S. in civil engineer- an M.S. in Telecommunications twenty years of experience in the leadership initiatives in areas such ing from the New Jersey Institute from the University of Colorado construction news industry. Since as green building, BIM, interop- of Technology. and a B.S. in Geological Engineer- 2005, as Editorial Training and erability, and global ing from the Colorado School of Policy Manager, she educated a construction markets. Previously, John E. Gudgel is responsible for Mines. team of over 250 reporters on key Bernstein served as the President managing MHC’s relationships trends in the industry, including and CEO of the Civil Engineer- with both national and regional Donna Laquidara-Carr, Ph.D., public-private partnerships and ing Research . He industry associations. He also pro- LEED AP, has been Manager of the evolution of project delivery currently serves as a member duces and offers thought leader- Green Research and Communica- methods. Donna has a Ph.D. from of the Princeton University Civil on construction technology, tions at McGraw Hill Construc- Tulane University, an M.A. from and Environmental Engineering managing MHC’s SmartMarket tion since December 2008. In that Boston University and a B.A. from Advisory Council and as a visiting Reports on BIM and Interoper- capacity, she provides editorial Middlebury College.

McGraw-Hill Construction 1 www.construction.com SmartMarket Reports

SMR0411_Letter-bio.indd 1 5/2/11 3:11:15 PM SmartMarket Report PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY TABLE OF CONTENTS 4 Executive Summary 4 Executive Summary 6 Recommendations 7 Data

8 Market Activity and Opportunity 8 Sectors with Opportunity for Prefabrication/Modularization 10 Building Sectors with the Most Significant Future Opportunity for Prefabrication/Modularization 12 Users of Prefabrication/Modularization 13 Levels of Use of Prefabrication/Modularization: Today and in the Future for Current Users 14 Future Activity by Current Non-Users of Prefabrication/Modularization 14 Firm Size of Prefabrication/Modularization Users

18 Productivity 18 Impact on Project Schedule 19 Impact on Project Budget 20 Impact on Site Safety 21 Impact on Purchase and Installation Costs for Materials 22 Expected Impact on Project Schedule According to Prefabrication/Modularization Non-Users 22 Impact on Project Budget According to Non-Users 23 Impact on Reducing Onsite Resources According to Non-Users roup (opposite page right) page (opposite roup 23 Impact on Improving Project Quality According to Non-Users

29 Influence Factors 29 Drivers for Use of Prefabrication and Modularization 30 Factors Driving Future Use of Prefabrication/Modularization for Non-Users 31 Non-Users’ Current Reasons for Not Using Prefabrication/Modularization on Projects 32 Users’ Current Reasons for Not Using Prefabrication/Modularization on Some Projects

33 Prefabricated and Modular Building Elements 33 Influence of Job Site Conditions 34 Most Commonly Used Prefabricated and Modular Building Elements

39 Green Building 39 Using Prefabrication/Modularization on Green Building Projects 39 Construction Waste 40 Materials

41 Model-Driven (BIM) Prefabrication 41 Usage 42 Drivers Photo courtesy of Liam Frederick (cover); Photo courtesy of Perkins & Wil (opposite page left); Photo courtesy of the Warrior G Warrior the courtesy of page Wil left); Photo (opposite & Perkins courtesy of Photo (cover); Frederick Liam courtesy of Photo

SmartMarket Reports McGraw-Hill Construction 2 www.construction.com

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CONTENTS McGraw-Hill McGraw-Hill Construction Thought Leader Interviews 43 53 52 51 36

24 25 26 47 47 46 Contractors 46

50 49 Architects and Engineers 49 48 Case Studies Case Sidebars Prefabrication and Modularization Prefabrication and Resources Methodology Glossary Data Drivers Sidebar: Be 16 16 15 9 The Summit at Queens College Student Residence Hall, Queens, New York New Queens, Hall, Residence Student College Queens at Summit The Innovation in Prefabrication to Achieve a Tight Schedule and Green Results: Results: Green and Schedule aTight Achieve to inPrefabrication Innovation Gregory Howell, Cofounder and Managing Director, Lean Construction Institute Construction Lean Director, Managing and Cofounder Howell, Gregory Construction Lean Pushing the Envelope in Prefabrication: Texas Health Harris Methodist Alliance Hospital, Fort Worth, Texas Worth, Fort Hospital, Alliance Methodist Harris Texas Health inPrefabrication: Envelope the Pushing Speeding Delivery to Meet a Military Mission: Mission: aMilitary Meet to Delivery Speeding Construction CEO, and Sundt Chairman Pruitt, J. Doug of Prefabrication/Modularization History Brief Usage Drivers and Productivity Usage Drivers Productivity Fort Sam Houston Medical and Training Complex Barracks, San Antonio, Texas Antonio, San Barracks, Training and Complex Education Medical Houston Sam Fort hind Owner Adoptionhind Owner of

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www.construction.com www.construction.com San Antonio, Texas Antonio, San Barracks, Complex Training and Education Medical Houston Sam Fort Alliance Hospital, Fort Worth, Texas; Texas Health Methodist Harris right: to left From NY Queens, Hall, Residence Student College atQueens Summit The cover: Front SmartMarket Reports SmartMarket 4/29/11 3:33:56 PM SMR0411_ExecSum.indd 4

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Executive Summary eries. These opportunities do vary by player type. player by vary do opportunities These eries. and oil refin- plants power prisons, centers, data included (10%) (11%) that types warehouses building other and facilities (14%),care hotels and motels (11%), commercial respondents see the most future in opportunity health- (42%). These buildings (42%) and tories healthcare facilities (49%), college buildings and dormi- on it using are today respondents particular, In ects. proj- building commercial of variety awide on processes building prefabrication/modular using are Adopters BUILDING SECTORS AND AREAS OFUSAGE AREAS AND SECTORS BUILDING designs. their into and modularization (54%) prefabrication for including not non-users and (39%) users architect by given reason it into their projects. Owner resistance was the primary primary the was resistance Owner projects. their into it or did not all is design that the of architect their projects on some and modularization prefabrication using not contractors andcontractors design-builders. mechanical is among fabricators, usage and future 2013. by 45% current of level highest the surveyed, players all reaching Among usage high very or high with grow, years,two usage on to is projects expected moderately high level (more of the than Over projects). next 50% orvery ahigh at it using been (37%) have users of third Among users, usage today is fairly low. Only about a a about low. Only fairly is today usage users, Among projects. on some prefabrication/modularization some contractors andcontractors 76% of architects. of 84%on of engineers, some 90% projects—including processes these using are today players industry of 85% aroundbeen for many years, it that is not unexpected has construction Given that prefabrication/modular more. or years five for so doing been have processes ofnot those that new are using activities—63% these and modular are Prefabrication building processes Adoption andUsage BecomeNew Again! OldHas Everything SmartMarket Reports Reports SmartMarket Now it’s a key of component the drive productivity. to improve industry construction changed. has image that technology, modern “poor quality.” However, through and “cheapness” of a stigma have developed processes these century, the past Over professionals. construction of by generations used have that been processes are and modular construction Prefabrication gains rejuvenate centuries old-construction processes. productivity goals andrecognized sustainability methods, manufacturing modern (BIM), modeling information Building Among all players, the primary reason they are they allAmong reason are the players, primary By 2013, nearly all players (98%) expect to be doing doing be to expect (98%) players all 2013, nearly By McGraw-Hill Construction Construction McGraw-Hill

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Owner/Client Demand Generates GreaterROI Competitive Advantage Improve Productivity Source: McGraw-Hill Construction, 2011 (By Player) Prefabrication/Modularization toUseof Current Drivers Architect Engineer Contractor Source: McGraw-Hill Construction, 2011 Modularization Users Today (2011) Percentage ofPrefabrication/ Contractor www.construction.com User 10%

16% 24% Non-User 31% Engineer 35%

40% 43% 51% 52% Architect 60% 68% 70% 70% 76% 84% 85% 90% 92% 4/29/11 1:22:26 PM SMR0411_ExecSum.indd 5

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY McGraw-Hill McGraw-Hill Construction making them more competitive in the marketplace (75%). contractors (92%). All players also see these processes as (82%). productivity to important This is particularly to improve ability is its and modularization rication prefab- of usage current to driver important most The DRIVERS USAGE exterior (52%). exterior ofnumber building (53%) of building stories and the type the by closely followed (58%) accessibility site job is the factor important the most or modularization, believe that these processes are safety neutral (56%). neutral are safety believe processes that these (10%). safety who think reduce the practices users Most those versus improve safety can site modularization (34%)More respondents and believe that prefabrication SITE SAFETY 6% or more. 41%with by budgets project indicating that it reduced budgets, on project impact had a positive modularization that the indicated use of prefabrication/ respondents as measured by 65% of budget. the user project cost metric is project Another key productivity BUDGETS AND COST REDUCED ormore. weeks four by schedule project the reduce can it indicating 35% with that ofschedules, those respondents on project impact have a positive processes larization of user respondents indicated that prefabrication/modu- isA schedule. 66% the key project metric of productivity SCHEDULES PROJECT IMPROVED quality. and safety cost, schedule, project including ity of productiv- to provide elements can and modularization usage willfuture the be improvements that prefabrication alignedclosely in the drivers to that the belief primary engineersArchitects, and are contractors also very Future DriverPrimary Productivity Improvements— Summary Executive (20%). and plumbingelectrical (MEP) (21%) systems and exterior (27%), in the buildingoften superstructure mechanical, most but areas of inavariety used are construction When deciding orWhen whether not to use prefabrication modular and prefabrication abuilding, Within CONTINUED

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GREEN BUILDING AND WASTE REDUCTION reduced materials used by 5% or more. prefabrication/modularization used—with indicating 27% the amount reduce of materials processes that these waste site reduced it believe that by of 5% respondents 62% In or addition, more. indicating 44% waste—with site reduces construction that prefabrication/modular cate indi- respondents of 76% emerges. story adifferent used, materials of amount and waste site including green, of However, elements adoption. about larization asked when and modu- was a not majorGreen driver to prefabrication 0% 10% 20% 30% 0% 10% 20% 30% 40% www.construction.com www.construction.com Source: McGraw-Hill Construction, 2011 Due toPrefabrication/Modularization Level ofDecreaseinProject Budget Decreased 1%–5% Source: McGraw-Hill Construction, 2011 Modularization Schedule DuetoPrefabrication/ Level ofDecreaseinProject ek2Wes3Wes4Weeks 3Weeks 2 Weeks 1 Week 24% 7% Decreased 6%–10% 19% 14% Decreased 11%–20% 17% 10% More Than20% SmartMarket Reports SmartMarket Decreased or More 35% 5% 4/29/11 1:22:27 PM SMR0411_Recommendations.indd 6

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Recommendations their design. project into modular construction / to include prefabrication primary driver for architects demand isOwner the gains on your projects. significant productivity to obtain opportunity the offer construction and modular prefabrication manufacturing facilities, by modern materials and provided quality the and by BIM bestowed precision grandpa’s the prefab! With larization can measurably: using prefabrication/modu- that clients should educate Architects team. project and of other the members client the for ROI increasing ultimately and buildings ducing more sustainable productivity,project pro- offer cation/modularization benefits that prefabri- a project. in used be will construction and modular fabrication pre- if indetermining phase design the during influence greatest the has architect the with client, the interface ularization. prefabrication and mod- clients on of the benefits Understand and educate Architects: projects. on your processes modularization prefabrication and Consider using Owners: players. implications industry fordifferent have findings The research varying SmartMarket Reports Reports SmartMarket Understand the key , such as improved improved as , such

This is not your

As the initial initial the As of buildings during their efficiency systems and the structural integrity primarily responsible for theAs professionals Engineers: in design. the project it include not did architect or modularization is that the for not using prefabrication andneers give contractors engi- reason one number gains. The tial productivity design maximizing poten- for greater continuity of allows project the into it The early decision to bring ization into your design. prefabrication/modular- include you sure make buy-in, client’s the get your design. and modularization in Specify prefabrication t t t t t Reduce project Reduce Decrease purchase and Decrease Increase construction Increase construction Eliminate significant Eliminate significant Allow the specification thespecification Allow by a month or more. or by amonth schedules—sometimes budget. decreasing the project materials—ultimately of costs installation lower costs. and in fewer accidents site safety—resulting project greener. site waste, the making amounts of construction materials. sustainable building more and quality better of installation and McGraw-Hill Construction Construction McGraw-Hill Once you

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cation/modularization can can cation/modularization that prefabri- theplace, fact market- the construction in factor amajor become site. Given that green has construction in agreener reduce waste and result help can lar construction and modu- fabrication factor. more competitive. be to firms CM and GC and allow budget project can ultimately decrease the schedules. These factors project andrials compress of mate- costs installation decrease the purchase and research shows that it can The costs. and schedule your for results predictable provides Prefabrication tion planning and bids. into your pre-construc- modular efficiencies Build prefabrication/ Managers: Construction and Contractors General from their competition. from themselves to differentiate they view their use as a way walls, and floor, and exterior superstructure, building the for ments fabricated /modular ele- pre- using already are today use. their for catalyst andproducts be the of prefabricated/modular the and quality availability should evaluateengineers and construction, design Include the green green the Include Many engineering firms firms engineering Many www.construction.com It is that pre- clear

remain competitive. to inorder processes ular prefabricated/mod- with experience acquire to need contractors specialty ects, usage onincreased proj- showing projections rent gains andproductivity cur- and efficiencies inherent of the their With business. part an integral become has fabrication/modularization pre- contracting, electrical and mechanical as such trades, struction specialty reasons. competitive for Adopt Contractors: Specialty modularization. modularization. use of prefabrication/ increased to adriver is BIM and rise, to continues use modular products. and of prefabricated benefits. green these of toneed awareness raise Manufacturers on projects. amount of materials used the and waste reduce processes thatagree these all professionals tives, objec- building green their achieve to way a primary and modular as products do not view prefabricated engineers and contractors architects, most Although efits of your products. ben- green the Promote Manufacturers: and emphasized in bids. tives should promoted be objec- green achieve help Create BI Create For some con- M objects objects ■ BIM BIM 4/29/11 1:34:20 PM Data:­SectionIntroduction Hed1

Construction Trends Driving Prefabrication/Modularization

refabrication and modularization are certainly not new to the construction industry. However, current influential construction Note About data trends, such as the increasing interest in lean construction, the the Data rising use of BIM technologies and the growing influence of green The data in this report Pconstruction have caused many practitioners to reconsider their appeal. In are based on an online ndustry fact, the National Research Council’s 2009 report on improving productivity in survey of 809 contrac- the construction industry recommends prefabrication/modularization as an tors, architects and “opportunity for breakthrough achievement.”1 These factors, combined with engineers. The con- recent advances in prefabrication/modularization, make this a critical trend in tractors comprise 65% of the total respon- the construction industry. dents, while architects onstruction I total 12% and engi- Lean Construction neers 23%. The large The strong increases in productivity offered by using prefabrication and number of respondent modularization fit squarely into the lean building model. The difficult firms in all three player economic conditions in the construction industry have increased the appeal of categories provides lean methods and practices. For more information on the use of prefabrication a statistically mean- ingful sample for the and modularization to achieve a lean approach, see pages 24 and 25. study conclusions.

BIM For full methodology, The increasing use of BIM also contributes to the potential for increased use see page 52. of prefabrication and modularization. In a recent study about the use of BIM on green projects, McGraw-Hill Construction (MHC) found that the use of

ncreasing Productivity in the C BIM model-driven prefabrication on more than one quarter of their projects is expected to increase from 37% to 73% among practitioners who use BIM for green work. Even those who are currently not using green BIM expect an increase from 22% to 57%.1 BIM helps enable prefabrication of tightly inte- grated MEP systems, allowing designers to maximize space for other uses in high-tech buildings like hospitals.

Green Building Green building has grown into a substantial part of the overall construc- tion market. MHC’s Green Outlook 2011 estimates that nonresidential green building will comprise 28%–35% of the total market by the end of 2010. This dramatic increase in market share, from less than 5% in 2005, reflects the fact that green building sustained steady growth throughout the recession, even as the overall construction market shrunk by nearly one-third.2

Prefabrication and Modularization: I MHC also predicts that the growth of the market share for green will not abate as the construction industry recovers from the recession. By 2015, MHC projects that 40%–48% of nonresidential construction will be green. As the results of this study demonstrate, this has strong implications for rising interest in prefabrication and modularization, which helps eliminate waste onsite and conserve resources.

1 National Research Council of the National Academies. Advancing Bringing the Trends Together the Competitiveness and Efficiency of the U.S. Construction Industry. What is most striking about prefabrication/modularization is its ability to Washington DC: The National Academies Press, 2009. 2 Green BIM SmartMarket Report: How Building Information Modelling is Contrib- enable all these trends, in addition to being more prominent because of them. uting to Green Design and Construction. McGraw-Hill Construction. July, 2010. 2 Green Outlook: Green Trends Driving Growth, 2011. It brings all of them together to improve productivity in construction. McGraw-Hill Construction, October, 2010.

McGraw-Hill Construction 7 www.construction.com SmartMarket Reports

SMR0411_Data_Intro_MarketActivity.indd 7 5/2/11 11:53:49 AM Data:­Market Activity and Opportunity

Sectors with Opportunity for Prefabrication/Modularization

Building Sectors Using Currently, prefabrication /modularization is being used on Prefabrication/Modularization many types of building projects demonstrating its appli- Source: McGraw-Hill Construction, 2011 data cability across nonresidential construction. Healthcare Facilities The five sectors using prefabrication/modularization in 49% over 40% of projects are:

ndustry Higher Education (e.g., Dorms, College Buildings) ■■Healthcare (49%) 42%

■■ Higher Education (42%) Manufacturing

■■Manufacturing (42%) 42%

■ onstruction I ■Low-Rise Office (40%) Low-Rise Office (1–4 Stories) 40% ■■Public (40%) Public These sectors also present strong opportunities in the 40% construction market, which bodes well for a vigorous prefabrication/modularization future market. Commercial Warehouse 37% Healthcare K–12 School Healthcare is a sector that is well-suited for prefabrica- 36% tion/modularization techniques. The interior layout of hospital rooms allows for efficient use of modulariza- High-Rise Office (5+ Stories) tion, and it is a sector highly responsive to strategies that 30%

ncreasing Productivity in the C shorten schedule—a particular benefit prefabrication Hotel brings to a project (See page 18). 29% According to McGraw-Hill Construction’s economic forecast, the market activity for healthcare construction is expected to increase in 2011 and 2012 to become more 24% than a $28 billion market opportunity in 2012. Multifamily Dormitory and Education Projects 23% Like healthcare buildings, dormitories and school proj- Bank ects have features that are well-suited to prefabrication/ 18% modularization. Dorms and classrooms allow for use of modular room design, and these projects also benefit Food Service (e.g., Restaurants, Convenience Stores) from faster construction schedules. 16%

As the largest construction sector by value (over $43 Auto (e.g., Garages)

Prefabrication and Modularization: I billion in 2011), education presents a significant oppor- 14% tunity for prefabrication/modularization—both currently and in the future (see page 10). Transportation (e.g., Train Stations, Bus Depots) 14% Variation by Player

■■Contractors: Across the board, contractors report (46%), followed by commercial warehouses (43%). heavier current involvement in prefabrication/ Engagement in the other sectors is 30% or lower. modularization, predominantly in healthcare (61%), ■■Architects: Their heaviest use is in low-rise offices dormitory/education (50%) and public buildings (46%). (43%) and healthcare facilities (36%), with less than a ■■Engineers: Engineers are using prefabrication/modu- third reporting use in other sectors. larization most often in manufacturing buildings

SmartMarket Reports McGraw-Hill Construction 8 www.construction.com

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Prefabrication and Modularization: Increasing Productivity in the Construction Industry Sidebar:

1 Kelly, Burnham. Burnham. 1 Kelly, 4 Modular Building Institute.“21-Story Modular Hotel Raised the Roof for Texas World Fair in 1968” Web. April 20, 2011. 5 Avalon Building Systems. “Interesting History of the Modular Construction Industry”. Web. April 20, 2011. 20, April Web. Industry”. Construction Modular the of History “Interesting Systems. Building 2011. Avalon 5 20, April Web. 1968” in Fair 6 National Research Council of World Texas the for National “AdvancingAcademies. Roof the the Competitiveness and ofEfficiency the Raised ConstructionIndustry”.U.S. The Hotel National Press.Academies WashingtonDC.2009. Modular Institute.“21-Story Building Modular 4 Chicago. of Encyclopedia 2 The A modation for military personnel. without without skilled labor. shipped anywhere and assembled pose, lightweight buildings T could be buildings. military as U II increasingly used during World War tomers as mail-order homes. mail-order as tomers cus to delivered were that buck A production. procedures based on modern mass being developed using prescheduled in the early 1900s. modularization is said to have started F Modern Beginnings Brief History of Prefabrication/Modularization location. by piece, and moved to another the palace was taken apart, piece components. of assembling the prefabricated only a few months and consisted glass. and cheap materials: iron, wood and two weeks, the building used light C 1851, featuring a building called the demand. and off-site construction to fill the needs and turned to prefabrication and adoption and acceptance adoption that and acceptance struction techniques. struction con modular of terms in advanced still considered some of the most pean and Japanese companies are due to the need for mass accom mass for need the to due or the U the or rystal rystal Palace. nited F Prefabrication/modularization was ollowing World War E C urope had massive rebuilding T ompany sold prefabricated S he construction period lasted 1 tates used Quonset huts . The Prefabrication of Houses of Prefabrication The S It is because of this early ., modern prefabrication/ modern ., use can be found in B in found be can use rication/modularization ain’s prefab of example early n History laddin and S and laddin A D fter fter the exhibition, Housing G esigned in less than reat H ousing started , Mail Order. Web. April 8, 2011. 3 The Master Building Systems. Quonset FAQ’s. Web. April 8, 2011. 8, April Web. FAQ’s. Quonset Systems. Building Master Steel 2011. The 3 8, April Web. Order. Mail , 3 E hese all-pur hese II xhibition of . The Technology Press of The Massachusetts Institute of Technology; John Wiley and Sons, Inc., New York; Chapman & Hall, Ltd., London. 1951. London. Ltd., Hall, & Chapman York; New Inc., Sons, and Wiley John Technology; of Institute Massachusetts The of Press Technology The . , both Japan ears R ears 2

E uro oe rit T - - - he - - - - Construction McGraw-Hill - C S H types. facility complex and deliver more sophisticated and processes and materials to build significant advances in developing industry toconstruction make the prefabrication and modular allowed have decades few past R Recent Evolution T in the tallest modularly constructed facility use, the hotel is believed to be the placed by in 46 days. working days. in an unprecedented period of 202 designed, completed and occupied the 500-room deluxe hotel was modular modular construction. is a testament to the durability of building process. building VI factory environment; even their standards that are available in a all cabins were built to the higher modular passenger cabins to ensure world. most expensive cruise liners in the 2, which is one of the largest and the new cruise liner Queen Mary is their use in the construction of accepted modular units have become existing structures. as demand exceeded the supply of ‘70s, ‘80s, ‘90s, and into the 2000s began to emerge throughout the hotels, offices, hospitals andschools tions of modular construction like exas World’s ecent over the an onstruction ilton Palacio del P suites utilized the modular A A I n the U the n current example of just how well n example of this is the A ntonio. U T nited he ship owners chose to use . S ., commercial applica commercial ., S B C E A tates. uilt by orporation for the xposition of 1968,

ll the rooms were 5 R 9 io

T H Z he project 4 achry achry otel in www.construction.com S till in - more information on this project). recycled materials (see page 16 for and pollution and waste increased use of material reduced to due track to meet A Military struction industry going forward. going forward. industry struction U the of competitiveness and significantly improve the efficiency breakthrough opportunity that could fabrication/modularization” as a key C of modularization at the A and greener construction process. recognized as a resource-efficient widely more becoming also is construction industry. construction solutions on a major scale in the site prefabrication/modularization off- of adoption widespread for time is right now, more than ever, trying to be leaner, many believe the labor and skilled also where players onsite in are shortages acute The Time Is Right Now Right Is Time The appointed by the before. possible not projects on gains ties now offer significant productivity sophisticated manufacturing facili BI achieve in the construction industry. prefabrication/modularization can past 20 years have increased what technological advancements over the war and economic booms. on the level of drastic need during time; instead, it has fluctuated based not had a steady increase in use over Prefabrication/modularization has ouncil identified “greater use of pre of use “greater identified ouncil clear example of this is the use ntonio, M, quality modern materials and Prefabrication/modularization With a construction market facing R

ecently a committee of experts B T arracks being built in exas. LEED T he buildings are on N

ational S ilver certification SmartMarket Reports SmartMarket n F ort R H esearch owever, S . S am S . con . an 6 - - - 5/2/11 12:13:50 PM SMR0411_Data_Intro_MarketActivity.indd 10

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA benefit from prefabrication/modularization activities. prefabrication/modularization from benefit and 11). comprise the largest share of respondents (see pages 8 who ondue by focus this to contractors, the sector heavy was slightly higher but that is than likely the other sectors, construction activity, MHC economists forecast forecast activity, MHC economists construction using techniques on these hotels. currently are users third of prefabrication/modularization than one fewer In fact, use. in current and #9 #6 ranked forsectors behind opportunity healthcare, despite being highest next the as cited future, the for opportunities strong now, they considered are cation/modularization are not using commonly prefabri- sectors these Though COMMERCIAL WAREHOUSES AND HOTELS AND WAREHOUSES COMMERCIAL its benefits. recognize can if owners for prefabrication/modularization area an important pose projects healthcare and office), (behind sector nonresidential construction education the significant most future opportunity. Only healthcare sectors. ing views also it 8), page future (see opportunity coming from a wide variety of build- projects of range a on ization increase over the next five years. As the third largest largest third the As years. five next the over increase steadily will construction healthcare that reports especially for (see contractors page 11). is for noted as sector thefuture growth— important most 8), (see page and it of prefabrication/modularization use currently showing is the theHealthcare highest sector HEALTHCARE the across adoption industry. significant more on cusp the on is use, future in change a prefabrication/modularization the that notion reinforcing seeing is years, for prefabrication future. inthe opportunity greatest the offering as seen 8)are page (see involvement lower with levelsIt is of that notable some current sectors Activity Future Prefabrication/Modularization versus Current of Comparison prefabrication/modular- using industry the is only Not forPrefabrication/Modularization Future Opportunity the with Building Sectors Opportunity and Market Activity SmartMarket Reports Reports SmartMarket This distribution suggests that any building can type Though these sectors represent lower levels of represent sectors these Though In fact, there is no consensus as to which sector offers offers sector which to as consensus no is there fact, In McGraw-Hill Construction’s (MHC) economic forecast (MHC) forecast economic Construction’s McGraw-Hill that the industry,This suggests which has using been McGraw-Hill Construction Construction McGraw-Hill

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10 M

of nonresidential construction activity. Furthermore, Furthermore, activity. of nonresidential construction share highest the has it because sector education the in to opportunities continue to seek for the industry it ranked isThough lower important than other sectors, #*!( Source: McGraw-Hill Construction, 2011 Opportunity Prefabrication/Modularization Ranked for BuildingSectors after several years of decline, MHC’s economic forecast forecast economic MHC’s decline, of years several after EDUCATION modularization. making years, five them an for untapped prefabrication/ opportunity next the over growth significant +#" && " !( *"# +#*" $"#. &- 0 " ! %+ *+("% *!( &*# &$$("#   ost Significant ost Significant    www.construction.com ") !&&# ") (,"   '" . +*"&% 2% 2%    /  /   "#"*") (!&+)  3%    

     4% )*+(%*)  0   

*&(")  *&(")  &($)     &##  &%,%"%  7% 7% 7%  8% 8% +"#"% )  *&()  10%  11% 11% 14% 4/29/11 3:35:56 PM SMR0411_Data_Intro_MarketActivity.indd 11

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction manufacturing projects. projects. manufacturing and warehouse to be opportunity cation/modularization prefabri- for sectors significant most the view Engineers ENGINEERS respectively. spots, third and second the take buildings public and (10%).offices sectors—hotels important most (13%)next and high-rise higher than the notably prefabrication/modularization, the mostsignificantoffers future for opportunity Nearly a fifth (19%)believe of contractors healthcare CONTRACTORS its importance. activity, but more and emphasize architects contractors prefabrication/modularization for market untapped for prefabrication/modularization. with the significantfuture most opportunities the sectors view players different inhow variation notable is There Variation byPlayer five years. in billion $70 over worth amarket be to projected term— longer inthe increases dramatic in 2012, with will to up begin pick construction school that reports for Prefabrication/Modularization Opportunity Future Significant theMost with Sectors Building Opportunity and Market Activity (see page 10). forecast long-term a strong with cation/modularization, poseprojects significant very opportunities for prefabri- ARCHITECTS thatengineers is currently untapped. for market aniche offer they Perhaps opportunity. billion $30 combined a offer to forecasted are they years, five In smaller to by other value building as types. compared are they but rise, the on are sectors manufacturing and value of starts is forecasted by MHC to be $60 billion over over billion $60 be to MHC years. two by next the forecasted is starts of value the that combined given prefabrication/modularization residential is an especially important opportunity for family residential, K–12 and schools hotels. Multifamily cite as having the largest levels multi- of future activity: architects that sectors the among split even an is There In terms of construction activity, both the warehouse activity, the both warehouse In termsof construction This marks a shift from current use, where dorms dorms where use, current from ashift marks This amajor are hotels that agree players the Overall, As the largest nonresidential building type, education education type, building nonresidential largest the As CONTINUED

11

   "# #" !!    Source: McGraw-Hill Construction, 2011 Modularization Opportunity Top BuildingSectorsfor Prefabrication/  % # !$    "  www.construction.com www.construction.com             #     ""     10%     13% (by Player) 14% 14% 14% 15% SmartMarket Reports SmartMarket 17% 19% 4/29/11 3:35:56 PM SMR0411_Data_Intro_MarketActivity.indd 12

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA the (see project page 32). into if it is designed prefabrication/modularization to use involvement,architect given that are contractors driven limited more to due be could lag above). However, the (see even though they than are heavier architects users ■ ■ architects (64%)architects and (57%). contractors ing use for more than five significantlyyears, higher than (77%) report- overfor with the three-quarters longest, prefabrication/modularization using have been Engineers PLAYER BY VARIATION new activities. and modular are not Prefabrication building processes Modularization Use ofPrefabrication/ Length usage. report architects of 76% while level, some at cation prefabri- using report contractors of 84% and engineers neers and as architects, compared to architects— of 90% engi- from inprefabrication involvement heavier is There PLAYER BY VARIATION 51.) page see please modularization, and of prefabrication on the definitions information mate- site on reducing impact The ductwork. mechanical entire modular to of from rooms floor plankstoracks widely range can tion of prefabrication/modularization thatactivities are included under the broad defini- at some level. projects to design and construct strategies these using are respondents of projects—85% building on Today, there is broad use of prefabrication/modularization Modularization ofOverall Users Prefabrication/ ofPrefabrication/ Users Opportunity and Market Activity rication/modularization is used on a project. (For more (For more on a is project. used rication/modularization waste can significantly vary depending on how prefab- and schedule and budget project demands, labor rials, SmartMarket Reports Reports SmartMarket

Only 8% are new users—using prefabrication/modular- (63%) two-thirds Almost are long-time of respondents ization for than less a year. using them for more than five years. users of prefabrication/modularization strategies, Contractors lag the other two players in length of use use of inlength players two other the lag Contractors While this level of use is encouragingly high, the McGraw-Hill Construction Construction McGraw-Hill

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12 odularization

Source: McGraw-Hill Construction, 2011 Prefabrication/Modularization Length of Using Time Source: McGraw-Hill Construction, 2011 Modularization Users Today (2011) Percentage ofPrefabrication/ Less than1Year 1 to<2Years 2 to<3Years 3 to<5Years More than5Years Source: McGraw-Hill Construction, 2011 (by Player) 2% Contractors 5% www.construction.com 5 Years More than 3 to<5Years 2 to<3Years 1 to<2Years Less than1Year 6% 6% 8% 85% srNon-User User 9% 9% 10% 10% 11% 12% 14%

15% Engineers 63% Architects 57% 64% 8% 77% 10% 11% 8% 4/29/11 3:35:56 PM Market Activity and Opportunity CONTINUED

Levels of Use of Prefabrication/Modularization: Today and in the Future for Current Users

Percentage of Respondents Using While reported levels of prefabrication are already quite Prefabrication/Modularization on high (see page 12), a notable increase is still expected Projects 2009 to 2013 (by Player) DATA over the next two years—both in the percentage using Source: McGraw-Hill Construction, 2011

prefabrication and in the intensity of use. 2009 2013 Future Use of Prefabrication/ Contractor Engineer Architect 98% 99% 98% Modularization 90% By 2013, 98% of industry players (current users and non- 84% users) will be users of prefabrication/modularization. 76%

■ Current Users: Virtually all current users will still be using prefabrication/modularization in 2013.

■ Current Non-Users: 87% of current non-users will become users over the next two years, resulting in a decrease in the overall number of non-users from 15% of the industry in 2009 to an insignificant 2% in 2013.

Various factors are impacting this increased use, includ- Percentage of Prefabrication ing growing concerns about construction productivity, Use for Current Users advancements in prefabrication and the quality of (2009 versus 2013) prefabricated materials, and the wider adoption of BIM, Source: McGraw-Hill Construction, 2011 which helps enable more intensive, productive use of prefabrication. 2009 2013 Low Medium High Very High VARIATION BY PLAYER (1%–25% (26%–50% (51%–75% (More than Contractors, engineers and architects all report that their of Projects) of Projects) of Projects) 75% of level of use of prefabrication/modularization will increase 38% Projects) by 2013. Architects report the highest increase in prefabrica- 27% 28% 25% 26% tion/modularization use—from 76% in 2009 to 98% by 22% 2013. However, because their levels were originally lower, 19% 15% this more dramatic increase is to be expected.

Level of Use The level of use of prefabrication/modularization is also expected to increase. The number of players using prefabrication/modularization on over 50% of projects is PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY CONSTRUCTION THE IN PRODUCTIVITY INCREASING MODULARIZATION: AND PREFABRICATION expected to increase from 37% in 2009 to 45% in 2013. Despite the level of activity increasing, these results do not indicate the complexity of the prefabricated or modular components used on these projects. And it is important to note that adoption needs to involve more than installation of simple prefabricated elements for the full benefits of prefabrication/modularization to be realized. For example, significant benefits are gained when prefabrication/modularization is used on major building components, resulting in a reduced need for scaffolding, coordination of multiple trades onsite and equipment use.

McGraw-Hill Construction 13 www.construction.com SmartMarket Reports

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PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA modularization can yield greater savings. designing where for prefabrication/ projects complex expensive, in more engaged those likely are larization ■ ■ cators, that tend tocators, smaller be in size. and fabri- contractors electrical contractors, mechanical tion/modularization such are as contractors, specialty each player. Many engaging contractors in prefabrica- $25 than million). less firms (revenues significantlytors where morefromare smaller users contrac- of true reverse the million) and $5 over (billings engineer coming users predominantly larger from firms player, and by dramatically industry vary architect with using prefabrication/modularization of size firms The Firm Size ofPrefabrication/ prefabrication/modularization. with associated benefits and green financial on the productivity, and awareness penetration that can be created with more education that there is still significantThis market suggests use to expect most these approaches future, on a low percentage the of in projects. so do to expect ization While firms most or not using modular- prefabrication of Prefabrication/Modularization Future Activity by Current Non-Users Opportunity and Market Activity SmartMarket Reports Reports SmartMarket

Contractor non-users expect to engage in prefabrica- An average of 70% of current they non-users report will non-users. (9%) (5%) architect and engineer of percentages lower much to by2013, compared projects of 25% over on counterparts—23%industry they report will use it tion/modularization at much higher levels than their of future projects. engage in prefabrication/modularization on 1%–25% Architectural firms engaging in prefabrication/modu- of the and with roles functions This is consistent McGraw-Hill Construction Construction McGraw-Hill

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Source: McGraw-Hill Construction, 2011 Player)(by Industry Use for CurrentNon-Users Percentage ofFuture Prefabrication Source: McGraw-Hill Construction, 2011 byUsers FirmSize Share ofPrefabrication/Modularization Architect andEngineeringFirms(by Billings) Contractors (by Revenue) 15% M None Contractor www.construction.com $25 Million) (Less than (Less than $500,000) 11% odularization Users 47% 22% Small Small 8% Engineer 62% of Projects) (1%–25% Low ($25 Millionto $100 Million) ($550,000 to $5 Million) 84% Medium Medium 28% 32% Architect 83% 23% of Projects) (More than25% Medium toHigh $100 Million) (More than (More than $5 Million) Large 25% 5% 46% Large 9% 4/29/11 3:35:57 PM SMR0411_IN_Productivity_Pruitt.indd 15

Prefabrication and Modularization: Increasing Productivity in the Construction Industry Interview:­

compete in a global economy. helping private-sector companies industry should strive as a collective productivity improvements. industries, they’ve had significant as an industry. had no productivity improvement statistics over a 40-year span, we’ve I problem? the is bad How hinder it. industry that helps drive that, not global economy. We want to be the of life and our ability to compete in a tax dollars. helping taxpayers get more for their fewer and fewer assets. We’re not means we pay more and more for public sector, a lack of productivity higher. [private-sector clients’] capital costs if we aren’t productive that drives doing damage? inability to improve productivity—is an industry that—because of our our society. important role in our economy and T productivity? around action to call a create you did Why task forces and research groups. address productivity issues through pursue industrywide initiatives to in 2009. Today, Pruitt continues to ated General Associ Contractors the of of America president as term his tion industry construc as a the central in theme of productivity improve Doug Pruitt emphasized the need to f you look at construction industry he construction industry plays an B y not improving, we’re not T D his is about our quality o we really want to be I f you look at other I n the private sector, E Sundt Sundt Construction CEO and Chairman Pruitt, Doug J. of life and our to ability compete globally. Improving productivity to enhance our quality very very I n the - Construction McGraw-Hill - Thought Leader Thought ity? percentage. leverages lean practices? What percentage design-build? What percentage uses proj ect delivery? What percentage integrated uses uses industry our of making a dent. A cant improvements? signifi making industry the Is improve productivity? responsible as an industry if we can’t body to improve itself. to be addressed by construction companies. construction by addressed be to are a whole host of things that need doesn’t change productivity. spend extra dollars and the endgame also drive productivity down. do very little in terms of value added that create tremendous costs and productivity issue. D issue. contractors, that’s a productivity between designers, engineers and look at the lack of collaboration that’s a productivity issue. contracts and contract language; construction companies. technology companies, not through being driven is primarily through innovation today, made being When you look at improvements hinder productivity today? What are some key issues that to the masses. making gains, but it needs to spread too fragmented. We need a forum small percentage of our industry is I would suggest it’s a small elivery methods are a a are methods elivery MBI to improve - productiv O T he ones that do are ne reason is that we’re

B ut what percentage 15 R egulatory issues

Are we being www.construction.com L ook at I f you T Y here

ou - - done already. [ tion that can be done and is being T spread. U improving productivity? ization play important roles in Can prefabrication and modular so. do to incentives be should there to do [projects] better and faster, so the problem the wrong way. We want associated with that. to protect yourself, and there’s a cost tor, you spend all of your time trying you pay damages. if you don’t get it done on schedule, ties. approach with productivity penal versus penalties. can insist on change. Just like they did with safety, owners productivity? improve will that change drive change themselves, can owners If companies are unwilling to and create solutions. where we can discuss these issues team. define how we work together as a contracts fair or onerous. delivery method. there to use it, especially with stan dardization with [of military projects]. especially it, use to there N has done some modular work for the ence change. influ to now do can owners things have have to of avail it. yourself there and getting better. technology to design and build it is ltimately, their use ltimately, can be wide avy.

T hey want a job done fast, and T T here can also be incentives here’s a lot of potential out here’s a lot of prefabrica of lot a here’s O S wners can select the undt A T S hey can make lot of owners o as a contrac SmartMarket Reports SmartMarket T C T hat’s going at onstruction] here are Y T ou just n hey can - T - - - - he - - 5/2/11 12:02:07 PM SMR0411_CS1_FortSam.indd 16

Photo courtesy of The Warrior Group PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY case study I create mechanical rooms and stairwells. tial wings in the building. At each of the corners, site-built construction residen- as is out used to extending added, are components modular the completed, is portion At the center of each facility’s footprint, site-built construction. Once the site-built In classrooms. and offices trative adminis- of mix a as well as diers, to sol- facilities a total of 6,000 The basic project called scope for toUseModular Decision modular construction. permanent of feet square 1 million than more installing are crews ect, Greely, Colorado, and subcontractor general contractor Hensel Phelps of 42 months and budget constraints, of schedule tight the meet to order and Training Complex Barracks proj- Barracks Trainingand Complex Sam Education Medical Houston Fort the At modularization. including buildings, of delivery the improve to approaches transformative adopted have others and Engineers of Corps SmartMarket Reports Reports SmartMarket Closure Act of 2005, the Army Army the 2005, of Act Closure and Realignment theas Base sive of programs workload such the mas- to meet n an attempt Fort Sam Houston Medical Education and Training Complex Barracks Complex Barracks Training and Education Fort HoustonMedical Sam Speeding Delivery toSpeeding McGraw-Hill Construction Construction McGraw-Hill footprint, site-built steel structures deep. At the center of each facility’s driven between 65 feet and 70 feet are that on piers foundation sitting building a has voidEach form ConstructionSite-Built and ofModular Mix nent All modular of the components. and perma- construction of site-built ahybrid using built be to each, feet buildings, roughly square 320,000 four-story five for calls plan new The design. the inreimagining assist feet of space per building. per space of feet square 220,000 nearly representing barracks use modular construction, dena, California-based Jacobs) to modular construction. permanent adevised plan that heavily leverages Texas, DeSoto, of Group Warrior the Carter Burgess (nowCarter of Pasa- part The team worked with designer SAN ANTONIO, TEXAS ANTONIO, SAN

M 16 eet a

www.construction.com M ilitary ilitary according to Zdon. to toneed shipped be the job site, they before cost modules at no extra of hundreds store and construct is able to Sam. manufacturer The Fort of north drive 2.5-hour imately quarter. living one with installed are ules mod- Some wide. feet 13.6 by long and pounds is feet 60 weighs 35,000 arated by a central corridor. Each living per module,two quarters sep- and stairwells. to create classrooms, utility rooms is again used construction site-built angles, by thosecreated 90-degree courtyards. At each of the corners to angles two form of 90-degree inaseries turn wings These building. added, out extending as wings in the the modulesis are completed, portion that Once rooms. mechanical elevators and rooms, offices, storage classrooms, of amix for used are which is subject to weather delays. to weather isdelays. which subject construction, site-built unlike shine, or rain factory the at built be can they ules can be costly, Zdon notes that Texas, in Belton, an approx-facility at a The modules are constructed Installation of Modules Shipping and says Ed Zdon, senior man- project when theycomplete arrive onsite,” a 250-ton crawler crane. First-floor First-floor crane. crawler a 250-ton by bed carrier the from lifted and and shelves in the closets. closets. inthe shelves and tiles, all utilities, and even the poles bathroom ceramic vanities, Corian shell, sheet doors, rock, light fixtures, the include module ineach rooms ager the with Warrior Group. The Although shippingAlthough of the mod- The modulesThe are “more than 85% Standard barrack modules include Each moduleEach is to trucked the site M ission CONTINUED 4/29/11 12:37:58 PM Fort Sam Houston Medical Education and Training Complex Barracks case study CONTINUED SAN ANTONIO, TEXAS

Modules are picked from a carrier bed by a crawler crane and stacked on top of each other with no additional structure. Crews install eight to 12 per day.

modules can be set directly to the Meeting Green and stats foundation. Modules are stacked Resiliency Goals Project Facts and Figures directly on top and next to each Buildings must meet a minimum Owner other with no additional structure LEED Silver certifi cation and exceed U.S. Army Corps of Engineers added. The factory-installed utili- ASHRAE standards by at least 30%. Architect ties are routed to the corridor in each EPDM roofi ng makes each module Jacobs (Carter Burgess) module, so onsite crews are easily more airtight, which helps the build- General Contractor able to access them and tie them ing achieve its high-performance Hensel Phelps into the appropriate lines. After work goals. Other contributing factors Subcontractor (Modular) inside each module is complete, fi n- include the insulation used, the recy- The Warrior Group ishes like carpet and paint are added. cled-material content of products Size PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY CONSTRUCTION THE IN PRODUCTIVITY INCREASING MODULARIZATION: AND PREFABRICATION In each corridor, drop-ceiling grids used and the U-factor of windows. 1.6 million square feet (total) and lighting fi xtures are added. The buildings are also designed in Number of Buildings Zdon says the build team has accordance with the military’s uni- 5 (roughly 320,000 square feet seen minimal errors within the form facilities code to meet require- each) factory-built modules. In Building 1, ments for progressive collapse and Height every corridor lined up within blast resistance. 4 stories designed tolerances. In Building 2, When completed in December Number of Modules two corridor walls had to be adjusted. 2011, crews will have installed 1,705 1,705 (total; 341 per building) The team is able to install modules. Zdon says that the modu- between eight and 12 modules per lar plan made the project possible. day, Zdon says. Installation for an “[Modular] was the perfect fi t with entire building—each housing 341 the schedule, the needs of the Corps modules—takes about eight weeks. and the budget,” he adds. ■ Photo courtesy of The Warrior Group Warrior The courtesy of Photo

McGraw-Hill Construction 17 www.construction.com SmartMarket Reports

SMR0411_CS1_FortSam.indd 17 4/29/11 12:38:02 PM Data:­Productivity

Impact on Project Schedule

A shorter project schedule is the most commonly Variation by Player reported productivity benefit of prefabrication/ A slightly larger percentage of contractors experience data modularization, as well as the one with the largest benefits compared to other players.T he difference reported payback. is not large in any one category, but it is consistent Two-thirds of firms who currently use prefabrication/ through each:

ndustry modularization experience reduced project schedule, ■■Decrease by two weeks: Contractors—15%; with 35% experiencing decreases of four weeks or more. Architects—10%; Engineers—12% Prefabrication can yield time savings through the ability to conduct work simultaneously onsite and off- ■■Decrease by three weeks: Contractors—12%; site, as well as helping with better coordination among Architects—9%; Engineers—8%

onstruction I different trades. In addition, less onsite staging, such as ■■Decrease by four weeks or more: Contractors—37%; scaffolding, is frequently involved. Regionally, the ability Architects—31%; Engineers—31% to avoid weather impacts can reduce construction time. Site conditions factor significantly in the ability of prefab- Because extensive use of prefabrication/modularization rication to impact schedule. can involve a more intensive, coordinated design period, Additional time may be spent in the design phase on contractors may be more likely to see the schedule gains complex projects to coordinate the use of prefabrication because their involvement typically occurs later in the and modularization. However, the time saved onsite typi- project lifecycle. cally reduces the overall project schedule.

Benefits of Project Schedule Reduction Variation by Firm Size More medium to large firms (47%) report achieving a Since construction onsite is both labor-intensive and schedule decrease of four weeks or more compared to ncreasing Productivity in the C expensive, this time savings can yield significant cost large firms (44%). savings as well. Prefabrication can also provide critical assistance with scheduling in sectors like higher educa- Firms Using BIM tion where project deadlines are frequently inflexible. 50% of the respondent firms that useBI M on more than Also, for buildings on active sites, like a new building in 50% of their projects experienced a schedule decrease of a hospital complex, a reduced schedule minimizes the four weeks or more due to their use of prefabrication. impact on the rest of the business. Use of BIM can support a smoother process and better communication between members of the project team.

Level of Decrease in Project Total Impact of 40% Prefabrication/Modularization Schedule Due to Prefabrication/ on Project Schedule Modularization Source: McGraw-Hill Construction, 2011 35% Prefabrication and Modularization: I Source: McGraw-Hill Construction, 2011 30%

Decreased 6% 66%: Schedule Decreased By No Change 20%

Increased 28% 14% 10% 66% 10% 7%

0% 1 Week 2 Weeks 3 Weeks 4 Weeks or More

SmartMarket Reports McGraw-Hill Construction 18 www.construction.com

SMR0411_Data_Productivity.indd 18 5/2/11 11:58:09 AM SMR0411_Data_Productivity.indd 19

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction strong impact on the firms involved. so even relatively small reductions in can cost make a their by budget 6% or more. the total respondents find that these techniques reduce 42% of budget. their that it project reduces report ization prefabrication/modular- use currently who firms of 65% modularization. quality workmanship also by offered prefabrication/ high- guaranteed, the with combined when in value increases reliability This sectors. public inthe like those valuable, inflexible for with owners budgets especially is process the during costs unexpected of avoidance the outset, the at expensive more slightly be to appears tion Even when prefabrica- process. during the construction are infamous for their increases due to change orders projects construction on traditional budgets Project thediscussed value of having a guaranteed, fixed cost. ble toilets can be reduced. evenlabor basic off-site, facilities site like support porta- and the ability to reduce onsite resources required. With costs, labor pay and unexpected other avoid overtime reduced reliance on expensive onsite labor, the ability to as such issues, secondary to due are savings cost the ingeneral less, cost can materials prefabricated While andValueSource ofReductions Impact on Project Budget Budget onProject Impact Productivity Source: McGraw-Hill Construction, 2011 on Project Budget Prefabrication/Modularization Total Impactof Construction work often has very tight profit margins, tight margins, profit has very work often Construction Several owners for interviewed also this report Increased No Change Decreased

27% CONTINUED 8% 65% Decreased By 65%: Budget

0% 10% 20% 30% 19

■ ■ ■ ■ neers. (See onneers. page chart 20.) This may be influenced in or engi- than architects prefabrication/modularization More experience contractors budget savings due to Variation byPlayer compared to a 4% average across all contractor types. types. contractor all across a4% to average compared of more than 20%, decreases budget 18% experience budget savings compared to other kinds of contractors. of pattern different avery experience Design-builders CONTRACTORS than architects (16%) or engineers (15%). range inthat (30%) contractors of percentage the twice in level lowest of savings (1%–5%), approximately with occurs players other the to compared contractors by the savings experienced between difference The biggest Budget savings by: are reported schedule reductions. larger slightly experience also contractors since cation, overall reduction of project budget by offered prefabri- by role that the improvementpart schedule plays in the

52% of Engineers 42% of Architects Design-Build Firms Design-Build 74% of Contractors www.construction.com www.construction.com Source: McGraw-Hill Construction, 2011 Due toPrefabrication/Modularization Level ofDecreaseinProject Budget Decreased 1%–5% 24% Decreased 6%–10% 19% Decreased 11%–20% 17% More Than20% Decreased 5% SmartMarket Reports SmartMarket CONTINUED 4/29/11 3:56:38 PM SMR0411_Data_Productivity.indd 20

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA 1 Buckley, B. & Ichniowski, T. (2010, August 30) Fatalities Down But Rate Stays Flat. Flat. Stays Rate But Down Fatalities 30) August T. (2010, &Ichniowski, B. 1 Buckley, thismore about aware of issue. and concerned fority than site safety design firms and therefore would be responsibil- and legal the financial to likely more bear are were significantly higher than design firms. Contractors increasessite safety (37%) and decreases (12%) site safety Not surprisingly, reporting of the contractors percentage Variation byPlayer constant. remained has industry construction inthe rate fatality the construction, inoverall slowdown the with Even onSiteSafety Impact Budget onProject Impact Productivity overall site safety. site overall on impact to avoid a negative considered carefully to be and to needs the their approach installation large, frequently are pieces Prefabricated onsite. well in work avoiding as tight spaces. close reduced need for workers on scaffolding or ladders, as factors that contribute to increased site include safety Reasons for this result may vary from site to site, but that they have seen site safety improve as a result are currently using prefabrication/modularization find tion/modularization can help address. can tion/modularization by prefabrica- offered the which benefits industrywide, budget increases (see chart on page 19). However 22% of of 22% However 19). an increase. have experienced firms page Design-Build on chart (see increases budget than other firms. Only 8% of total respondents report modularization. and prefabrication employing when losses greates the suffer occasionally and also rewards theto greatest reap it is Therefore, notmethods. surprising that they are able comparedproject to with other contractors delivery tioned to achieve the strongest rewards on a construction SmartMarket Reports Reports SmartMarket Design-Build firms also report more budget increases However, 10% found that actually safety decreased

Design-Build firms carry the most risk and are posi- are and risk most the carry firms Design-Build Over one third of the survey (34%) respondents who 1 Improving safety continues to be a challenge achallenge be to continues safety Improving McGraw-Hill Construction Construction McGraw-Hill CONTINUED ENR , 265 (6), 13. (6), , 265 .

20 Source: McGraw-Hill Construction, 2011 (by Player) Prefabrication/Modularization Due To Level ofDecreaseinProject Budget fabricating facility off-site. find their workin tobe conducted a whenhazardous less in particular and fabricators contractors mechanical More managers or construction contractors, design/builders. improvementsexperiencing site than safety general In general, a larger are of subcontractors percentage CONTRACTORS Source: McGraw-Hill Construction, 2011 Modularization onSiteSaftey Impact ofPrefabrication/

30% by 1%–5% Decreased Contractors www.construction.com Reduced No Change Improved 15% 16% Engineers 21% 6%–10% Decreased by 15% 12% Architects 56% 10% 18% 11%–20% Decreased by 16% 34% 9%

5% than 20% Decreased More 6% 5% 4/29/11 3:56:40 PM SMR0411_Data_Productivity.indd 21

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction ■ ■ reduced. respondentsMost find their tobecosts significantly andInstallationPurchase Costs Materials in Change of Degree is reduced. and installation of materials percentage of respondents recognize that the total costs alarge greater, be may alone materials the of cost the that materials prefabricated are more expensive. While less be to percentage construction. of traditional than the cost significant a by found is materials installing and procuring of cost actual the but reduced, improvements.schedule Not only is schedule the project are not solely due to to prefabrication attributed budget onsite. of materials and installation is lower thanpurchase the regular components ricated for prefab- cost and installation price purchase combined the find that of prefabrication/modularization users Almost half (47%) of the respondents who are current for Materials onPurchase andInstallationImpact Costs Productivity prefabrication. prefabrication. employ to reasons compelling still are there achieved, onsite, so that even when asavings significant cost is not installed materials to compared improvements quality many that suggest 43) also yields measurable findowners that prefabrication page (see owners with Interviews

Reduction in and MaterialsReduction Purchase Costs: Installation Increase in Material Purchase and Installation Costs: t t t t t t This is particularly important given the perception given the perception important This is particularly that the savingsThis resultdemonstrates to the project More by greater than 10%: bygreater than More 3% by6%–10%:More 7% by1%–5%:More 8% by1%–5%:Less 16% by6%–10%:Less 18% bygreater10%: than Less 12%

CONTINUED

21

■ ■ ■ Source: McGraw-Hill Construction, 2011 for Materials on Purchase andInstallationPrices Impact ofPrefabrication/Modularization CONTRACTORS no an reported architects increase greater than 10%. (18%). (20%)than engineers and contractors In addition, costs. and installation purchase materials reduced ence (47%) experi- who contractors (45%) and (45%), engineers architects of percentage inthe variation little is There Variation byPlayer

28% contractor of electrical than decrease acost see to likely less are Fabricators Only 7% increased of report mechanical contractors t tors cost increases. report t contractors: of types other far lowercosts, than any of other contractors. category t However, (10%) fewer architects increases cost report www.construction.com www.construction.com Most of the design/build contractors (23%), however, (23%), contractors design/build the of Most 37% of fabricators seeing report costs decrease, 18% of electrical contractors report increases of6% increases report contractors 18% ofelectrical report increases of1%–5%. increases report of all othercompared contractor to 45%–53% types. or more. Higher Price No Change Lower Price 35% 18% s and contrac- design/build 47% SmartMarket Reports SmartMarket 4/29/11 3:56:41 PM SMR0411_Data_Productivity.indd 22

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA budget. p their of tion aware still are Firms not currently using or prefabrication modulariza- BudgetAccording onProject toImpact Non-Users good are projects candidates their for using prefabrication/modularization. whether consider to need ful, impact- highly is schedule where likeeducation, sectors In particular, by prefabrication. offered ule benefits thefrominformationsched- about true increased benefit aresult. as schedule inproject ormore weeks using those of of three a reduction report 45% prefabrication/modularization but schedule, on impact high very underestimate their impact. awhole. as industry the by recognized are larization of prefabrication/modu- that key benefits demonstrates schedule. ona impact the moderate project larization recognize that these methods have at least tion towards these strategies. predisposi- current the industry’s reveal modularization of firms notcurrently usingExpectations prefabrication/ Prefabrication/Modularization Non-Users According Schedule onProject to Impact Expected Productivity improvements. including quality,impact, the about industry other advantages beyond budget cation/modularization market may benefit byeducating costs. and installation materials decreased and schedule ashortened to due savings the beyond prefabrication/modularization with associated savings the about direct overly expectations optimistic norience notable change in their budget. project using currently those to expe- actually 27% where prefabrication/modularization, contrast in is This all. at impact no on impact the budget. these approaches to have a medium to very high SmartMarket Reports Reports SmartMarket This result demonstrates that the industry would that the industry This demonstrates result also techniques these using not However, those 71% of firms notcurrently using prefabrication/modu- This suggests that the industry as a whole may have that the industry This suggests to have prefabrication/modularization 5%Only expect Two-thirds (66%) expect the use of

CONTINUED safety and sustainability safety and sustainability otential impact on the project Only 27% expect ahigh/ expect 27% Only Therefore, the prefabri- McGraw-Hill Construction Construction McGraw-Hill This result

22 Source: McGraw-Hill Construction, 2011 (According toNon-Users) Modularization onProject Schedule Impact ofPrefabrication/ Source: McGraw-Hill Construction, 2011 on Project Budget Impact ofPrefabrication/Modularization

www.construction.com No Impact Low Impact Medium Impact High Impact Very HighImpact No Impact Low Impact Medium Impact High Impact Very HighImpact (According toNon-Users) 29% 24% 5% 5% 44% 2% 50% 6% 14% 21% 4/29/11 3:56:42 PM SMR0411_Data_Productivity.indd 23

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction high impact. case for these strategies. in so this making the pointtivityimpact, can be effective produc- a has positive prefabrication/modularization that toilets. portable and delivery) just-in-time (due to storage material and areas staging scaffolding, extensive reductions in site resources needed, such as and equipment. impact on reducing onsite resources such as manpower high to to very have amedium use their expect larization of83% firms notcurrently using or prefabrication modu- According toNon-Users According onImprovingImpact Quality Project very ahighto expect 54% Strikingly, resources. onsite on reducing construction of prefabrication/modular the are about the optimistic impact most Architects Variation byPlayer 16% of engineers and 12% and contractors. of engineers 16% of one with quality, on versus impacts, impact high very to high (25%) expecting quarter greatest the expect Architects Variation byPlayer scaffolding. or from than on ladders rather conditions in factory fabricate to ability the does exposure to the elements also increases the quality, as of lack The onsite. poured inconcrete found frequently imperfections the avoid can example, for , cated quality control on checks each piece produced. Prefabri- extensive do to ability the offer conditions Factory Reasons for Improvement Quality in their decision. factor is an important quality the of reliability the that indicate also interviews owner it of because the dependable quality. As with budget, to use choose often to prefabrication/modularization evensurveys, those who findcompellingbenefit no cost In owner of prefabrication. one of the major benefits is of the materials quality. Quality on project impact a medium them to have least at expect or modularization 65% of firmswho are notcurrently using prefabrication toNon-Users According onReducingImpact Onsite Resources Productivity This result demonstrates that the industry believes believes that the industry This demonstrates result show interviews owner and studies case the fact, In

CONTINUED

23

of the final products. of the final products. process, design selection the over influence greater have will project architect the integrated an of part as included money. less is cost that are comparable If prefabrication materials they think may select project a cost-effective of seeking materials, contractors types particular specify can architect an While component. prefabricated the for selected materials final the into input greater architect the may also allow nition is of prefabrication that this benefit Source: McGraw-Hill Construction, 2011 (According toNon-Users) Construction onReducingOnsiteResources Impact ofPrefabrication/Modular Source: McGraw-Hill Construction, 2011 (According toNon-Users) Construction onImproving Project Quality Impact ofPrefabrication/Modular One factor that may influence higher architect recog- architect higher influence may that factor One www.construction.com www.construction.com No Impact Low Impact Medium Impact High Impact Very HighImpact No toLowImpact Medium Impact Very HighImpact High to 35% 16% 45% 1% 50% 5% 15% SmartMarket Reports SmartMarket 33%

4/29/11 3:56:43 PM SMR0411_IN_Lean_Howell.indd 24

Prefabrication and Modularization: Increasing Productivity in the Construction Industry Interview:­ tional operating tradi system. that of heart the is method activity centered. T flawed? is method path Why do you believe the critical control. Last Planner system, for production Delivery System, which includes its ment. LCI developed manage its Lean Project project for used method to replace the traditional critical path creation of a new operating system Among LCI’s primary initiatives is the engineering and construction. agement of production man in the design, reform to 1997 in Ballard Construction Institute with Glenn Greg Howell cofounded the Lean don’t propose that we can get it right difficult to map everything out. We cant amount of complexity, and it’s T there. out world We know that it’s an uncertain more predictable? workflow make you can How the workflow predictable. ity. activ We put each our to attention on making opposed as workflow A workflowfrom one crew to the next. that it doesn’t produce predictable It sounds good, but the problem is ect by optimizing each of the pieces. you the proj optimize system, ating another after another. ical system I of one activity after contracts. of series a as the tool used to manage projects SmartMarket Reports Reports SmartMarket he current operating system is is system operating current he lean operating system focuses on here’s a signifi a here’s T he critical path I n that oper t’s a log a t’s T hat’s Lean Construction Institute Construction Lean Director, Managing and Cofounder Howell, Gregory to create leaner projects managementRethinking systems ------Construction McGraw-Hill - Thought Leader Thought no. say to foreman ments. you to bad need assign making stop your planning reliability to be higher, T start. the from right it get tice, the scheduler is I supposed to project. a of life the we can learn consistently through at every moment, but rather that needed weren’t there. get done because the materials he try, but in the end the work doesn’t this week. what work they are supposed to do man is told by the superintendent assignment. say no and decline to make a bad didn’t work unless the foreman could “lean” was the realization that it rapid learning, but what took us into create predictable workflow and ning system that is designed to O the schedule dynamic? members work together to keep ative. How can collabor different team very is approach Your go through the project. and continuously improve it as you We believe you can make an estimate if you don’t, you’re making an error. can know everything in advance, and T adjust throughout the life of a project. ognize that rec we’ll we need to but learn and can, we as schedule a our system, we want to get as good ule is what’s supposed to happen. he current system pretends that we ne example: We invented a plan a invented We example: ne It’s a really radical act for a A nd the foreman says he’ll T raditionally, the fore

24 n current prac current n

S o if you want www.construction.com he sched he - - - - - I n - - in lean construction? components modular and tion prefabrica of view your is What out of took people their silos. ing so they could prefab pipe racks. you coordinat saw like things trades of everyone having their own. and coordinate the usage instead share certain pieces of equipment rather than several. coming out to the site every day trades agree to share one fuel truck inte an grated formused of agreement,that we saw projects first those projects. changed the commercial terms of form of agreement came out and we were doing until the integrated People didn’t pay attention difference? to what the made has What gained steam in only recent years. movement lean the but LCI has been around for 14 years, that are flawed. that are flawed. [prefab and modular] components to get stuck with a large inventory of work ahead because you don’t want level. things are out of tolerance at a bigger other and create a situation where toler ance can of stack up. out are that pieces because and modular, the game is different in the field.When you do prefab stick built, everyone can adjust things in construction. When you’re doing pay a lot of attention to tolerances are managing tolerances. We don’t means you have to rethink how you It’s a new structure of work, which Y ou have to be careful if you T hat was a big step. T hat’s waste. waste. hat’s T T hey build on each hey agreed to O n T n hen - - It - - 5/2/11 12:01:14 PM SMR0411_SB_Lean.indd 25

Prefabrication and Modularization: Increasing Productivity in the Construction Industry Sidebar:

L tional healthcare O projects with onsite reduction. waste for tion prefabrica use to opportunities subcontractors, integration tool. T solutions. between parties and findscommon dependencies the at upstream milestones in the field, then looks ing isn’t top-down, but rather sets and when.” ating detail to excruci see to who is down doing what drill and meetings We go through weekly schedule things back and forth over the fence. work together rather than launching says. “We get everyone in a room to job. lean any to paramount tion C and integration kit. in its particular in are tools primary few achieving lean projects, but keeps a pany uses a variety of techniques in ing solutions at T at solutions ing build for integrated director national complicated jobs. James common practice, particularly on increasingly an is lean struction, in both schedules and budgets. budgets. and schedules both in contractors report significantsavings a focus on eliminating waste, lean ples to gain impressive results. With A Integration and Collaboration and for modularization. of expansion prefabrication lay waste groundwork the for reducing Tools techniques and Lean Construction urner uses t N t With improved integration among T “We use the big room concept,” he he T he ew Y ew urner approach to schedul to approach urner are leveraging those princi tors these days, and some contrac among buzzword ean construction is a big ork C ork T o help achieve that goal, BI Lean Construction Lean ity-based T ity-based M extensively as an T urner, says the com the says urner, urner sees added urner C urner B n tradi n arrett, arrett, ollabora - on - - - - Construction McGraw-Hill - - - - - pulled behind a pickup. a behind pulled eries were made using a small trailer tor, subcontrac the by off-site bent were installed in six months, and all pieces of 3-inch to 6-inch conduit was also metal in six months. million pounds of prefabricated sheet tion to facilitate the installation of 1.2 crews used BI used crews materials. age only 5% to 10% of total recycled metals waste aver prefabrication, ing lean principles with O als. materi recycled total of 25% to 15% fabrication, metals waste average Patient square-foot S Obstacles Multitrade Overcoming safety numbers are better,” he says. he better,” are numbers safety you have less workers onsite so your better, your workers are happier, and half of that estimate. “ fabri cation, peak workforce was less off-site than using by but workers, called for a peak workforce of 700 budget. the off 2% to up trimmed two months from the schedule and S Marty Marty 120 overhead corridor utility racks. used to create 178 patient rooms and O V lion 484,000-square-foot Miami $152-mil the on prefabrication of office pushed the traditional limits alley kanska kanska, estimates that prefab cut hio. Multitrade prefabrication was t the $340-million, At 1.3-million the $340-million, C G orrado says original estimates aylor n healthcare projects employ projects healthcare n H C C orrado, project executive at ospital addition in USA are E U lectric. lectric. F ’s acility in niversity of Kentucky M and lean construc lean and M

N 25 ashville, E N lectrical lectrical deliv

T ineteen miles L he quality is BI exington, www.construction.com M-enabled T D enn. ayton, ------contractors, Kevin nique that is often driven by specialty C modular modular units. facility that will be built primarily with a 133,000-square-foot four-story H S Modular to Move the Making integrated approach.” approach.” integrated tion coordina and installation. collaborative on partners approach and work closely with trade tractor and owner need to define an multitrade prefab, the general con Kullman selecting that route,” he says. “ ing, the owner has to be engaged in approach. top-down trade prefab and modular need a L at excel lence operational of president vice possible, it’s necessary. “ necessary. it’s possible, and team integration, it’s not only through is a real movement. Y movement. real a is try needs to change,” he adds. “ tional construction, project could be problematic in tradi multiple trades for a prefabrication firm workedwith multitrade modular projects. components, it is also teaming on only creates multitrade prefabricated S tion. prefabrica Multitrade is the about next step.” talk people hear not where in the and pecialty contractor heyney ervices ervices of Warrington, Penn. not ousing Project in A A “ I lthough prefabrication is a tech lthough trying to bring together f it’s a full-blown modular build modular full-blown a it’s f

BI O U imbach, says that multi- that says imbach, ffsite ffsite M-enabled coordination niversity C L onstruction on the ebanon, L C C abrecque, senior N heyney, Penn., L It has to be an SmartMarket Reports SmartMarket ou can’t go any go can’t ou orrado says that ew imbach n S T he indus he tudent N J-based J-based T F he acility I f it’s T his ------5/2/11 12:12:36 PM SMR0411_CS2_TexasHealth.indd 26

Image Courtesy of Perkins & Will Architects PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY case study F tasks that THR put to put that THR this teamtasks was to the director of heathcare services services of heathcare the director process.” our benefit would other things in other that industries find and out Go box. the outside get test case for future work: “One of the using with charged as this a project at THR, the development team was director for facilities development the Wilson, Denton to According Opportunity Creating a Learning THR’s goals. Dominick Calabrese, Calabrese, Dominick THR’s goals. manager, the shared construction BIM. of use and process design a full commitment to an integrated with began project Alliance the Thus orders.” change fewer [work], quicker value, more [demonstrated] rics of the because the Alliance project in approaches these embrace fully to He took the opportunity process. design integrated an and tools BIM tobegun the with experiment use of in Europe. practices best prefabrication seeking including prefabrication, of use inmaximizing and delivery project integrated inusing were found team has the project opportunities main two The awhole. as industry forward, for THR and for the hospitalsmoving constructing goal of for improving the process Alliance Hospital with project the up the world to do that. All the met- the All that. do to world up the andsive it pieces, just parts opened cohe- and units as things build ally align that together actu- the people you “If observed: had he benefits SmartMarket Reports Reports SmartMarket In a previous project, Wilson had had Wilson In project, a previous The teamThe at the Group, Beck approached the Texasapproached (THR) Resources Health Texas start, the rom Health Harris Methodist Health Harris Methodist Pushing the Envelope in Prefabrication Envelope in the Pushing Texas Methodist Hospital Alliance Health Harris McGraw-Hill Construction Construction McGraw-Hill

cost or schedule savings: “I don’t don’t “I savings: schedule or cost immediate than rather sought benefit was the main process construction the improve to opportunity the an integrated design process has in prefabrication using Wilson, For Prefabrication Delivery, and BIM Integrated Project The Texas Health Methodist Hospital Harris Alliance in Fort Worth Texas pay off on larger projects. onpay larger off projects. that they gainexperience on it will minor, the be but can one this like hospital small 188,000-square-foot on a gains of using prefabrication clarifies that the cost and schedule He projects]?” [future deliver we how and industry the improve we’ll so that on this project prefabrication we learn? How can we learn to do can what in,is interested are mainly THR and subcontractors our what in, project], is but what Beck interested [on this savings ahuge see we’ll think at the Group, that Beck affirms FORT WORTH, TEXAS

26

www.construction.com technologies and other 3D modeling able to our use the collaboration, BIM are we process, design inthe early [the team] project to come together IPD allows “Because tion. states, He prefabrication.” test to going are you modeling, BIM are who team project strong based, atechnology- have you “When tion. prefabrica- of use the increase also and thethe builders. fabricators the designers, between the process of nature collaborative the reinforces process the in early specifications buildable accurate, for need The beginning.” the from thing right the do to how of philosophy design “the he that it argues encourages an impact on the itself; process tect, the owner and the major trades trades major the and owner the tect, technologies to work with the archi- cially one using BIM technology, can can technology, BIM using one cially laborative design approach, espe- Calabrese also finds this connec- this finds also Calabrese col- an open, that affirms Wilson CONTINUED 4/29/11 12:42:48 PM Texas Health Harris Methodist Alliance Hospital FORT WORTH, TEXAS case study CONTINUED

to identify what can be prefabbed.” individual contractors anything, but stats He cautions that “if you go through “that is better and more productive Project Facts and Figures the traditional process and design for the overall project than it may be Owner everything fi rst without considering for one singular entity.” He reports Texas Health Resources prefab, you are just creating a whole that once the subcontractors adopted Architect lot of rework [if you ultimately want this mind-set, “that is when they Perkins + Will really got excited about the project.” to implement prefabrication].” Constrution Manager Jeff Ratcliff, project manager The adoption of the IPD mindset The Beck Group with the Beck Group, points out the was particularly critical for the MEP Engineer particular value added by working in success of their most unusual use CCRD Partners BIM. “If it wasn’t for BIM, we would of prefabrication: the creation of Structural Engineer multitrade racks for the hospital not get the level of prefabrication LA Fuess Partners Inc. we are doing. We are coordinating corridors. MEP Subcontractor so much in such detail, [and BIM DynaTen Corporation allows us] to really maximize the CROSSING THE LINE prefabrication and go into the detail According to Wilson, team members Drywall Subcontractor Lasco Acoustics & Drywall that we need to.” were regularly surveyed to fi nd out how well the process was working. Construction Cost BUILDING TEAMS One question asks whether the $60,439,735 The greatest challenge associated team is working with true trust and Size with IPD is building the team’s sense respect, while another asks, “Are the 188,124 square feet of trust and cooperation, but that parties on the team actually crossing Height is also its greatest opportunity. the line?” For Wilson, that ability to 4 stories Calabrese argues that one challenge participate beyond the traditional Started for any new team is to get everyone, boundary of their specialty is a December 2010 especially the subcontractors, good measure of the success of Scheduled Completion to adopt what he dubs “the IPD this project. However, the process August 2012 mindset,” a recognition that it is the of collaborating and seeking better Green Certifi cation Sought productivity savings for the project approaches takes longer than simply LEED Silver as a whole rather than for their own doing what has worked in the past. individual piece that matters. Wilson believes that the process “When Jeff and I were change led to a different product: Multitrade interviewing subcontractors for this 50% implementation drawings Prefabrication project,“ reports Calabrese, “we are weaker than a normal set of The most promising and challeng-

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY CONSTRUCTION THE IN PRODUCTIVITY INCREASING MODULARIZATION: AND PREFABRICATION would talk about prefabrication. construction documents because ing application of prefabrication on Invariably, everyone we talked to in this kind of IPD project, “you are this project is the multitrade prefab- [said], ‘No, I don’t want to do prefab. not building the drawings, you are rication of the racks in the hospital I can do it faster in fi eld,’ or ‘Yes building shops.” The entire process corridors. Since that approach is not I do prefab, so I don’t need to do is fundamentally changed because it common in the United States, the anything differently.’” However, is geared toward implementation as team went to the to each contractor was only regarding a whole rather than just completing learn how it could best be applied. their own individual trades, “looking a set of documents, focusing on Scott Brady, the president of at what is best for them as far as the end result rather than on the DynaTen, the mechanical/plumbing manpower and productivity, but individual steps to achieve that subcontractor, describes a typical not what is best for the project.” He result. process in the U.K. for creating these explains that working in a factory racks: —“mechanical contractors hire setting may not save any of the [independent prefabrication fi rms] to

McGraw-Hill Construction 27 www.construction.com SmartMarket Reports

SMR0411_CS2_TexasHealth.indd 27 4/29/11 12:42:49 PM Texas Health Harris Methodist Alliance Hospital FORT WORTH, TEXAS case study

do the BIM model for these horizon- tal systems, and [the prefabrication firms] have developed software that converts the BIM model into a bill of materials on a prefab rack by prefab rack basis.” These racks combine the work of multiple trades, includ- ing duct work, medical gas mains, hot water supply and return for com- fort heating, domestic water piping, electrical conduits, communication system pathways and low-voltage systems. Typically, in the U.K. these racks are assembled in factory and shipped to the site. Since there are no equivalent pre- fabrication firms in the United States, The hospital will feature multi-trade prefabricated racks in the corridors, an Brady explains,“DynaTen developed approach that is still new in the U.S. a strategic relationship with a com- pany in the UK ... They are doing the SAFETY Other Prefabrication BIM model work for the areas where According to Brady, the workers Opportunities we will be installing the rack, and will be able to do at least 90% of The multitrade racks were the most then they are using the software their work with the racks at waist innovative use of prefabrication, they’ve developed to send us a kit of level rather than working from but not the only example of this parts for each rack.” The racks will be ladders in a multi-story building. approach. The patient rooms will assembled in a fabrication shop also have prefabricated bathroom adjacent to the project site, with QUALITY modules and headwalls. Wilson all the trades coordinating their Working in a controlled environment states that “those two components assembly together. also typically yields better, more con- are a win on every facility we will Brady sees three clear advantages sistent results than those produced ever do” because of the efficiency to following this approach: reduction by workers on ladders. and quality of the construction. in the manpower peak, safety and Of course there are challenges He mentions the ability to con- quality. associated with this process as well, duct sound attenuation studies of the especially when it comes to installing headwalls at the factory as a factor

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY CONSTRUCTION THE IN PRODUCTIVITY INCREASING MODULARIZATION: AND PREFABRICATION MANPOWER the fully loaded racks. “These racks that contributes directly to patient He states, “If you look at the normal weigh in excess of 2,000 pounds satisfaction. “Who wants to hear the manpower curve on a project, there and they are 20 feet long, seven patient next door? Now we get to do is a distinct peak, and we think we’ll feet wide,” states Brady, “but we’ve all those studies in a warehouse ... be able to reduce that peak by as developed methods for lifting them, and we get to do multiple scenarios much as 20% and move it forward so and we have made special lifts to get to [measure the benefits].” we are doing that work earlier.” them in place.” Finally, there will likely be few deviations from the schedule. Wilson notes that dependability—know- ing exactly when the project will be completed—is a major benefit of prefabrication. ■ Image Courtesy of Perkins & Will Architects Will & Perkins Courtesy of Image

SmartMarket Reports McGraw-Hill Construction 28 www.construction.com

SMR0411_CS2_TexasHealth.indd 28 4/29/11 12:42:56 PM Data:­Influence Factors

Drivers for Use of Prefabrication and Modularization

Current Drivers to Use of Factors Driving Current Use Prefabrication/Modularization Productivity is the top driver of prefabrication/modular- (By Player) data ization use among all firms. Source: McGraw-Hill Construction, 2011 ry

t As the findings on pages 18 and 19 reveal, reductions Contractor Engineer Architect in project schedule and project budget are key productiv- Improve Productivity ity benefits reported by all firms. Time savings and even

n Indus 92% small cost reductions make a big difference for players in 70% tio the construction industry, where profit margins are slim 68%

ruc due to the labor-intensive and expensive nature of onsite t construction. Competitive Advantage ns 85% Variation by Player 60% he Co

■■ 52% n t 92% of contractors see productivity as a stronger driver

y i to use prefabrication/modularization, compared to

it Generates Greater ROI

v engineers (70%) and architects (68%).

ti 70% ■■Competitive advantage (85%) and generating greater 43% duc

o ROI (70%) are stronger drivers for contractors than 40% they are for architects and engineers. Owner/Client Demand ng Pr i

s This difference may be influenced in part because 31% a contractors experience reductions in project budget 51% due to schedule improvements more than architects 35% and engineers do; also in part because the very compet- n: Incre itive market in which contractors operate make them Results in Greener Project or Site 22% atio highly responsive to potential cost savings and gains in z i 22%

r market share. 26% la Anecdotal feedback from owners also indicates that

du improving productivity is the biggest driver for using pre- o fabrication/modularization. Owners report project sched- Contractors ule reductions of 10% to 30% resulting from off-site work. Improving productivity is reported as the top driver for nd M using prefabrication/modularization by construction n a Factors Driving Future Use managers, general contractors and design-builders.

atio Lower project costs (85%) and project schedule improve- • Design-builders report competitive advantage (82%) c i ments (84%) are the top drivers behind current users’ as a stronger driver, compared to general contractors br

a decisions to use prefabrication/modularization in the (73%) and construction managers (78%). future. Other top factors driving future use: • Design-builders also see generating greater ROI (64%) Pref as a stronger driver, compared to general contractors ■■Project quality improvements (70%) (54%) and construction managers (55%). ■■Cheaper labor costs (69%) Subcontractors ■■Project safety improvement (58%) Improving productivity is also reported as the top driver These drivers are also consistent with anecdotal infor- by mechanical contractors, electrical contractors and mation from owners—most report that they plan to use fabricators. prefabrication/modularization in the future because they ■■Mechanical contractors (94%) and electrical contrac- see cost, schedule and quality benefits. tors (96%) report competitive advantage as a bigger driver than fabricators (63%).

McGraw-Hill Construction 29 www.construction.com SmartMarket Reports

SMR0411_Data_Influence.indd 29 5/2/11 11:52:17 AM SMR0411_Data_Influence.indd 30

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA ■ ■ ■ to use prefabrication/modularization in the future. current non-users as a factor influencing their decision Saving money is the top driver, identified by 77% of ways it improves productivity. project and of prefabrication/modularization the key benefits understand a whole as industry the help will it as needed, is This currently tion of prefabrication/modularization. education and awareness as a driver for future adop- is highlyproduct important. your distinguish to able being market, a competitive control as a significant driver, demonstrating that in adoption is likely in the future. on more education modularization, owner prefabrication/ using of more benefits the with that suggests factor ence critical. be can time and cost in project any reduction slim, be can margins profit where industry, construction linebottom and allow them to be more competitive. In the their help will what about concerned mainly are future in the to prefabrication/modularization use decide that economy, firms down this in that indicate findings These of Prefabrication/Modularization ForNon-Users Prefabrication/Modularization of Factors Driving Future Use Influence Factors SmartMarket Reports Reports SmartMarket

Saving time (66%) Competitive market advantage (65%) (65%) advantage market Competitive Owner demand (66%) Firms report these other top drivers: top other these report Firms Although itAlthough is not a top factor, ofbetter firmssee 46% quality better report also (60%) firms of majority The influ- asignificant is (66%) demand owner that fact The

CONTINUED McGraw-Hill Construction Construction McGraw-Hill

30 Allows forYear-Round ConstructionforAllClimates Better EducationandAwareness More EffectiveUseofLabor/ReductioninTrade Disputes Safer ConstructionSite A/E FirmDemand Better QualityControl Competitive MarketAdvantage Owner Demand Save Time Save Money Source: McGraw-Hill Construction, 2011 (For CurrentNon-Users) Prefabrication/Modularization DrivingFutureFactors Useof

www.construction.com 43% 46% 47% 49% 50% 60% 65% 66% 66% 77% 4/29/11 1:02:05 PM SMR0411_Data_Influence.indd 31

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction reduction and overcoming skilled workforce shortages. shortages. workforce skilled overcoming and reduction improvements,cost such as increased safety, waste and schedule to addition in achieved be can benefits ple thatmulti- report are overcome, owners those obstacles of shippingtics to the site. components However, once logis- the out figure to and stage early an at work design various as such the to need challengesexist, commit to of prefabrication/modularization. applicability wider the and processes the understanding for a need still is there while known better are cation/modularization ■ ■ process ranks considerably higher with non-users. ranks considerably higherprocess with non-users. is unfamiliar One being that exception the with projects. of on their some prefabrication/modularization using not are that users current of those to similar are results These into the project. it design not did architect the because modularization not using prefabrication/ report of non-users 46% onProjects Prefabrication/Modularization Using For Not Reasons Current Non-Users’ Influence Factors

Higher cost is the reason least reported (10%) for not Not being familiar with the ranks process second using prefabrication/modularization. according to 34% of non-users. highest, tied with project type not being applicable, Anecdotal evidence from owners demonstrates that that demonstrates owners from evidence Anecdotal The findings suggest that the cost benefits of prefabri- of benefits cost the that suggest findings The

CONTINUED

31

Costs Too Much Availability ofTrained Workforce Concern aboutQualityofComponentsorStructure Availability ofLocalPrefabShop Owner DoesNotWant Prefabricated/ModularElements Not FamiliarWithProcess Project Type NotApplicable Architect DidNotDesignPrefab/ModularIntoProject Source: McGraw-Hill Construction, 2011 on Projects Using Prefabrication/Modularization CurrentReasonsforNon-Users Not www.construction.com www.construction.com 10% 11% 13% 20% 26% 34% 34% SmartMarket Reports SmartMarket 46% 4/29/11 1:02:06 PM SMR0411_Data_Influence.indd 32

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA ■ ■ ■ ■ ■ prefabrication/ modularization on some projects: on some modularization prefabrication/ design it into the project. tion/modularization is because the did architect not The top reason for current users to not use prefabrica- better quality workbetter under controlled conditions. produce to able being is advantages major its of one since other than cost, of prefabrication/modularization that they more need informationsuggest on the benefits show over concern that architects quality The fact PLAYER BY VARIATION fabrication. the of limited off-site of number providers and requirements, and logistics transportation increased stage, planning the in early scope awell-defined to to having commit include prefabrication/modularization anecdotally,by owners some of the to challenges using Reported architect. the and owner the of decisions the on dependent is particularly cases insome larization findingsThese show that the use of prefabrication/modu- For Not Using Prefabrication/Modularization onSomeProjects Prefabrication/Modularization Using For Not Reasons Current Users’ Influence Factors applicability of prefabrication/modularization. of prefabrication/modularization. applicability wider the labor, and and materials of use the processes, the on education more from benefit could awhole as try owners to use prefabrication/modularization in the future. in the future. toprefabrication/modularization use owners influence and educate as well as designs intheir ways tive and innova- in creative more fabrication/modularization SmartMarket Reports Reports SmartMarket

Almost half of contractors (48%) and engineers (44%) engineers (48%) and contractors of half Almost Project type is not applicable (29%). More (29%) architects also indicate concern about (39%)More architects that report the owner does Owner does not want modular prefabricated structure than do contractors (10%) or engineers (19%). (10%) engineers or contractors do than structure quality of the prefabricated/modular component or (35%). engineers (21%) and contractors not want prefabricated modular elements than do project. the into it design not did architect the because notreport using prefabrication/modularization (32%). elements Other topOther reasons for current users deciding not to use These results,These in general, demonstrate that the indus- Armed with the right knowledge architects can use pre- use can architects knowledge right the with Armed

CONTINUED McGraw-Hill Construction Construction McGraw-Hill

32

Costs Too Much Concern aboutQualityofComponentsorStructure Not FamiliarWithProcess Availability ofTrained Workforce Availability ofLocalPrefabShop Owner DoesNotWant Prefabricated/ModularElements Project Type NotApplicable Architect DidNotDesignPrefab/ModularIntoProject Source: McGraw-Hill Construction, 2011 (By Player) on Some Projects Using Prefabrication/Modularization Current ReasonsforUsers Not Contractor www.construction.com 10% 11% 13% 13% 14% 14% 18% 19% 19% 20% Engineer 21% 21% 22% 24% 25% 28% 29% 32% 33% 34% 35% Architect 39% 44% 48% 4/29/11 1:02:07 PM Data:­Prefabricated and Modular Building Elements

Influence of Job Site Conditions

Percentage of Respondents Job site conditions are an important factor in the Influenced by Job Conditions decision to use prefabrication/modularization, with over Source: McGraw-Hill Construction, 2011 data half of respondents influenced by job site accessibility Job Site Accessibility (58%), number of stories (53%) and type of building 58% exterior (52%).

ndustry Number of Stories Job Site Accessibility 53% This factor influences around 50% of architects and engi- Type of Building Exterior neers, and it is selected by 62% of contractors, the largest 52% percentage for any of the job site conditions. For sites

onstruction I with severe restrictions, prefabrication can prevent job Layout of Building Interior site congestion. 35%

Number of Stories The number of stories can influence the decision to use prefabrication for structural elements or exterior walls. However, with the rise of BIM and with taller buildings with complex mechanical and electrical systems, prefab- rication in taller buildings is becoming more common. In fact, although low-rise offices currently see more activity according to respondents, high-rise offices are selected by a slightly greater percentage as a strong future oppor-

ncreasing Productivity in the C tunity (see pages 8 and 10).

Layout of Building Interior At 52%, this factor is deemed influential by the highest percentage of architects. A relatively repetitive layout for a large number of rooms makes the modularization of whole rooms a cost-effective approach in building types such as hospital or dormitories. Not surprisingly, this element influences contractors the least (27%) since the decision on room layout comes earlier in design.

Type of Building Exterior A larger percentage of engineers (61%) are influenced by this than architects (40%) or general contractors (50%). Prefabrication and Modularization: I

McGraw-Hill Construction 33 www.construction.com SmartMarket Reports

SMR0411_Data_BuildingElements.indd 33 5/2/11 11:46:32 AM SMR0411_Data_BuildingElements.indd 34

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA ■ ■ ■ widespread use: structure the most highly ranked, at 27%. bymost individual respondents, with the building super- by 44%. superstructure for the building used are and modularization rication (MEP)plumbing walls. and the systems exterior tion and modularization and for electrical mechanical, Nearly half of all (48%) respondents use prefabrica- Building Elements M Prefabricated Elements Building Modular and SmartMarket Reports Reports SmartMarket

Building Superstructure: Constructing allBuilding of Constructing Superstructure: the build- Walls: walls ofExterior Prefabrication can exterior MEP ofMEP complicated Systems: Prefabrication extensively. who use this strategy also re and schedule benefits, which is probably why those cost strongest the yield to likely most is units modular ing above the foundation with or prefabricated environment has benefitted the overall quality. byconstruction assembling the walls in a controlled that exposure reducing Also, onsite. building revealed some owner interviews significantly reduce the ti facilities. biomedical likework or for high-tech projects cleaner sensitive duct- keep and schedule project overall the impact Inductwork. addition, assem systems can help the reduce space required for the The benefits to be gained help account for their the used also are elements building three same Those ost Commonly Used Prefabricated and CommonlyUsed ost to the elements during during to the elements me required to assemble a port thatport they use it most bly off-site can positively McGraw-Hill Construction Construction McGraw-Hill Prefab-

34 Interior RoomModules Floor Construction Roof Construction Building Superstructure MEP BuildingSystems Exterior Walls Source: McGraw-Hill Construction, 2011 Building Elements Prefabrication/Modularization for Percentage ofRespondentsUsing

www.construction.com

CONTINUED

29% 29% 34% M odular odular 44% 48% 48% Ranked #1 27% 21% 20% in Use 17% 8% 4% CONTINUED 4/29/11 3:39:31 PM SMR0411_Data_BuildingElements.indd 35

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction using prefabrication and modularization for: and modularization prefabrication using report engineers and ofarchitects percentage largest The CONTRACTORS ■ ■ ■ ■ ■ ■ respectively, ranking as these the categories. highest highest use for interior modules, with 31% and 19%, andElectrical contractors design-builders the report prefabrication/modularization. use commonly most they which for element building the as walls exterior rank fabricators of 35% and managers construction of 30% for them. highest category second of general also contractors rank MEP the systems first, for that group. the(22%)larization, largest a Over fifth prefabrication/modu- use commonly they most where as the rank systems area managers these construction it surveyed, is still of that notable 40% subcontractors While this number by is the impacted strongly MEP ARCHITECTS AND ENGINEERS by more than of 50% the contractors. reported category as the only MEP with systems or modularized, prefabricated elements specific with inprojects involved are general all groups. three rior walls are reportedby a relatively large percentage of used by the highest Only of percentage contractors. exte- those from dramatically and differ engineers of architects percentage by the highest used rication/modularization with building prefab- The specific constructed elements Variation byPlayer CommonlyMost Used Prefabricated Prefabricated Elements Building Modular and elements: building following the for prefabrication/modularization The highest of percentage general use contractors

Building Superstructure Roof Construction Walls Exterior Interior Room Modules (31%) Walls (39%)Exterior MEP Building Systems (62%) t t t t t t In addition, a smaller percentage of contractors in in of contractors aIn smaller addition, percentage Engineers—56% Architects—62% Engineers—60% Architects—68% Engineers—71% Architects—68%

and Modular Building Elements

35

■ ■ ■ ■ ■ Floor Construction Roof Construction Building Superstructure Interior RoomModules Exterior Walls MEP BuildingSystems Source: McGraw-Hill Construction, 2011 Building Elements Prefabrication/Modualization for Percentage ofRespondentsUsing systems. systems. MEP except category in every using prefabrication report projects do green primarily who 10% 15% firms to more ProjectsGreen with moreFirms than75%

Interior room modules—47% Floor construction—47% Roof Construction—56% Walls—65%Exterior Building Superstructure—68% Contractors www.construction.com www.construction.com 16% 18%

21% 21% Engineers 30% 31% 32% 35%

39% (by Player) Architects 48% 48% 56% CONTINUED 60% 62% 62% 68% 68% 71% SmartMarket Reports SmartMarket 4/29/11 3:39:32 PM SMR0411_CS3_Summit.indd 36

Photo Courtesy of Liam Frederick PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY case study T quite work.” doesn’t that September, in finished it have you If up. it open to year of time one get only you ... hall dence aresi- build you “When explains, advancement at Queens College, the vice president for institutional schedule; as Dr. Sue Henderson, of building to the contributed tight the type In part, prefabrication. sider ule team to that led the con- project sched- construction tight 16-month sideration it on thiswas the project, acon- always was budget the While toPrefabricate Decision cant green goals. signifi- achieved that and on budget time on building ahigh-quality plete com- to panels, exterior load-bearing innovative including prefabrication, SmartMarket Reports Reports SmartMarket he Summit hous- student employed use of extensive York in New City College ing project at Queens Innovation in Prefabrication toAchieveInnovation inPrefabrication a Tight Results Schedule andGreen The Summit at Queens College Student Residence Hall McGraw-Hill Construction Construction McGraw-Hill range of exterior materials, including and metal panels. metal and brick including materials, ofexterior range awide include project Summit the create to used panels wall The than they originally anticipated. work and garage took even longer see.”we typically the And in site fact, amountstantial of time, more than asub- take to going was it knew we of the schedule, and part that with garage underneath the structure, a put to We had site. the off things some move to We had site. lenging chal- “We had a relatively lenges: chal- schedule additional describes ident at Capstone Development, pletion date, McKee, Bruce pres- vice McKee, “The only way we were really only way we “The really were McKee, it proved According effective. to and ultimately solution, possible as a prefabrication considered immediately team and construction erection process.” of panels in the prefabrication during the site work phase] through on time was by [making up time lost able tocompleted the get project In tocom- addition the inflexible Therefore, the integrated design design integrated the Therefore, QUEENS, NEW YORK NEW QUEENS,

36

www.construction.com planks, a relatively common practice. common a relatively planks, floor concrete use of prefabricated the was first The ways. intwo rication prefab- employed mainly project The Prefabrication Innovative Useof cally measure 30 feet. Each involves involves Each feet. 30 measure cally typi- that of wall sections consists just for The system this project. that the teamapproach developed exterior walls,prefabricated a new load-bearing lightweight, create “We wanted to make it lightweight lightweight tomakeit “We wanted ner at Goshow Architects, explains. lightweight, as Eric Goshow, a part- be to had it building, amultistory for sheetrock. wiring andthe interior electrical except component riers—every bar- vapor insulation, skin, rior exte- glazing, including installed, factory all of the wall components a metal stud structure with nearly However, they to also decided For the system to work effectively CONTINUED 4/29/11 3:41:15 PM The Summit at Queens College Student Residence Hall QUEENS, NEW YORK case study CONTINUED

so that it could be easily transported, concrete, and metal stud load-bear- and would reduce the weight in the ing walls. None of these strategies bottom of the building and the size were able to fully address concerns of the footing.” That goal led to the about schedule and cost. use of high-strength, lightweight Once they decided to consider a metal studs in the panels. In addition, prefabricated, panelized load-bear- the brick used as the primary exte- ing wall system, the project team’s rior finish for the building was one main concern was the capacity of the inch split tile as opposed to typical fabricator/manufacturer. As Goshow four inch face brick, which also sig- states, “The key with prefabrica- nificantly reduced the weight of the tion is whether the prefabricator can panels. develop enough panels on time?” For Antoine AbiDargham, vice Before they committed to this president at WSP Cantor Seinuk, the strategy, the design team visited sev- structural engineer, the main design eral prefabrication facilities. The challenge to this structure was “han- entire team was impressed with dling the stresses and distribut- Island International Fabricators, and ing loads” around the openings and they began to work with Island to inserts in the facade. This challenge develop the walls. Goshow points was increased by the fact that half of out that getting the manufacturer the building was going to be sitting involved, even before they had been on the parking garage. AbiDargham formally contracted, was important. explains that they had to “make “If you want to do something that is sure that [they] can place the loads out of the ordinary, you want to bring through all these walls from top to in the people who are vendors and bottom and minimize the deflection have some experience. These people of the effect of the loads as you stack are always willing to collaborate.” the walls on top of each other.” By the time the decision was made, the team involved included the archi- Early Research tect, developer, owner, construc- Was Critical tion manager, structural engineer, All of the team members, from the civil engineer and panel fabricator. architects to the developer to the Because of the research they had construction manager, credit the conducted, there was broad support

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY CONSTRUCTION THE IN PRODUCTIVITY INCREASING MODULARIZATION: AND PREFABRICATION research they did early on to not across this wide group for the strat- only help them create a system that egy. “You have to have early buy-in worked effectively but also to help from all the players that ‘this is the them gain the buy-in of both the way we are going to go, and we all owner and the developer, a critical have to work together to make this success factor for this approach. work’,” affirms AbiDargham. To begin, the team considered many different structural options. AbiDargham describes how they “looked at various structural schemes to expedite construction,” Construction in progress on the including steel frame and plank load-bearing wall sections that system, steel frame and cast-in-place even include the glazing. Photos Courtesy of Liam Frederick Liam Courtesy of Photos

McGraw-Hill Construction 37 www.construction.com SmartMarket Reports

SMR0411_CS3_Summit.indd 37 4/29/11 3:41:21 PM The Summit at Queens College Student Residence Hall QUEENS, NEW YORK case study

Benefi ts of Using ■ Waste: Prefabrication in a Goshow sums up the main Prefabrication controlled environment creates response to concerns about qual- much less waste. “Any stud ity: “People look at it, and they have TIME SAVINGS material that is left over, any no idea it has been prefabricated ... Doug Renna, project manager at T.G. gypsum sheathing that is left over From an aesthetic point of view, just Nickel & Associates, the construc- can be reused by that facility for because it is prefabricated doesn’t tion manager, describes the result of another project.” mean it cannot look almost any way their innovative system: “We erected you want.” ■ a 175,000-square-foot building from ■ Materials: The use of split tile January to April. We worked through brick, which is lighter than face the winter months with no holdup, brick, means less raw material

and we put up a six-story building in use. It also has better tolerances stats less than four months.“ to match the dimensions needed. Project Facts and Figures Eric Goshow estimates that this Langweil estimates that the use of Owner shaved at least six months off the split tile brick resulted in savings CUNY Queens College construction schedule. Two inter- of 70%–80% in raw material use Developer related elements contributed to compared to face brick. Capstone Corp. these time savings. First, enclosing ■ Tighter Envelope: Large prefabri- Architect the building as quickly as possible Goshow Architects LLP cated panels have fewer joints that “allowed the interior workmen doing need to be sealed on site. Construction Manager the sheet rock and all the interior fi n- T.G. Nickel & Associates ishes to work much more effi ciently,” ■ Site Impact: The lack of scaffolding MEP Engineer according to Goshow. Manhar Bhatt, reduced the site impact. Goldman Copeland and Assocs. project manager at Goshow, also Structural Engineer credits the phasing enabled by pre- QUALITY WSP Cantor Seinuk fabrication of different sections of the AbiDargham reports that the “perfect Exterior Load-Bearing building with contributing signifi cant bearing of the metal studs” in the Wall Contractor time savings. prefabricated panels minimizes Island International Fabricators defl ection and thus helps the Interior Load-Bearing Wall FEWER ONSITE RESOURCES structural system. Contractor Godsell Contracting No scaffolding was required McKee fi nds that “there is because the brick was attached to a consistency across the building that Precast Plank Contractor NY Precast prefabricated wall in a factory, rather we wouldn’t otherwise see [because] than laid on site. Several players testing and certifi cation can go on in Project Cost (Construction Cost) involved in the project credit this a plant that are harder to replicate in

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY CONSTRUCTION THE IN PRODUCTIVITY INCREASING MODULARIZATION: AND PREFABRICATION $58 Million with improvements in time, budget the fi eld.” Size and safety. Henderson admired the sturdi- 175,000 square feet In addition, only one crane ness of the construction due to the Height was required for the entire proj- metal braces, and also reports that 6 stories ect, another positive contributor to both the wall panels and fl oor slabs Started budget and safety concerns. do not contain the imperfections June 2008 that are typical of onsite construc- Completed ACHIEVING GREEN GOALS tion. In addition, two years into oper- August 2009 Amanda Langweil, the director of ation, she reports that students love Green Certifi cation sustainability at Goshow Architects, the building and that they have expe- LEED NC v2.2 Registered (Seek- fi nds that prefabrication assists with rienced no problems at all due to the ing Gold Level Certifi cation) the following green goals: construction.

SmartMarket Reports McGraw-Hill Construction 38 www.construction.com

SMR0411_CS3_Summit.indd 38 4/29/11 3:41:22 PM Data:­Green Building

Using Prefabrication/ Modularization on Green Building Projects

Percentage of Green Projects Using According to McGraw-Hill Construction’s Green Outlook Prefabrication/Modularization 2011, green projects comprised nearly a third of all new Source: McGraw-Hill Construction, 2011 data

nonresidential construction activity in 2010, with that None Low Medium High Very High ry share expected to grow significantly over the next five (1%–25% (26%–50% (51%–75% (More than years. Given this increase, it is important that the industry of Projects) of Projects) of Projects) 75% of dust 60% n recognizes the contribution prefabrication/modulariza- Projects) 51% tion can offer in meeting green goals. 50% ion I Though the level of use of prefabrication/modular-

uct 40% r ization in green projects is limited today, most of the

st industry (88%) is using it on at least one green project, with 19% using it on more than half of their green 30% Con projects. This suggests that some industry players under- 20% 18% stand the value these off-site practices can contribute to 12% green goals (see case study on page 36 for an example). 9% 10% y in the 10% t ivi Use of Prefabrication/Modularization 0% on LEED Projects duct Currently, 31% of the industry believes that use of prefab- weather—translating to less exposure to moisture

Pro rication/modularization can help projects achieve LEED and better indoor air quality; and offer flexibility— g credits under the U.S. Green Building Council’s LEED contributing to development of a more adaptive building. in green building certification program. However, there is eas

r still a majority that do not recognize that intersection. c

n There are several ways prefabrication can contribute to a greener project—and potentially to LEED credits. ion: I Aside from the waste reduction benefits (see below), at off-site work could reduce habitat and site disturbance; riz protect some materials from rain and inclement dula Mo d n Construction Waste ion a

cat Impact of Prefabrication/Modularization ri The impact of construction on the environment is on Amount of Construction Site Waste ab f

e significant. The US EPA estimates more than 135 million Source: McGraw-Hill Construction, 2011

Pr tons of debris from construction sites end up in landfills

in the U.S. each year. According to the industry, that Decreased by 2% waste can be effectively minimized through the use of More than 15% prefabrication/modularization. Decreased by 6%–15% 13% 22% According to Current Users Decreased 76% of current users report that prefabrication/modular- by 1%–5% ization decreases the amount of their construction site Stayed the Same 31% waste, with 41% reporting decreases of 5% or more. Not only are these gains environmentally beneficial, but Increased 32% they also are financially beneficial, with less waste trans- lating to cost savings and higher ROI. continued

McGraw-Hill Construction 39 www.construction.com SmartMarket Reports

SMR0411_Data_Green.indd 39 5/2/11 11:50:19 AM SMR0411_Data_Green.indd 40

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA understand this connection can gain can this a market advantage. connection understand that firms activity, building ingreen increase the Given perspective. a materials from and green modularization prefabrication/ between in making the connection selection. greener enables also modularization Nearly a third (31%) of firms findprefabrication/ that Greener Material Selection construction. onsite versus cation/modularization third do not a perceive change in material use for prefabri- However, more education is needed, given that over a be directly recycled back into the manufacturing process. the remnantsof and metals other material can frequently material, wasted and prevents facility inpossible an offsite measurement precise The 5%ormore. of decreases ing materials, over with (27%) a quarter of construction report- that recognizes the use help decrease can industry prefabrication/modularization the of (62%) majority a Currently, Use Materials selection. material greener for allow and recycling increase use, material reduce also it can site, construction to and lead a greener waste construction help mitigate prefabrication does only Not M According to Current Non-Users toCurrent According Waste Construction Building Green impact on creating a greener site. high orvery ahigh have can it reporting afifth with site, construction to lead a can greener modularization offer. can it that benefits green the recognize also of prefabrication/modularization Non-users non-users believe it has a high or very high impact. impact. high same. the 16% believing with very lag, or Engineers high a has it believe non-users site—33% ofcreating a architect greener construction have on can prefabrication/modularization impact on the perception positive have the most Architects PLAYER BY VARIATION SmartMarket Reports Reports SmartMarket However, it is is clear that needed more education Nearly all (95%) non-users believe prefabrication/ believe (95%) all non-users Nearly aterials aterials CONTINUED McGraw-Hill Construction Construction McGraw-Hill

40 Source: McGraw-Hill Construction, 2011 (According toNon-Users) Construction Site Can Have OnCreatingaGreener Impact Prefabrication/Modularization Source: McGraw-Hill Construction, 2011 on Project MaterialUse Impact ofPrefabrication/Modularization

Impact No Source: McGraw-Hill Construction, 2011 Greener BuildingMaterialSelection Prefabrication/Modularization Enables Percentage Findingthat 5% www.construction.com Increased Stayed theSame by 1%–5% Decreased by 6%–15% Decreased More than15% Decreased by 1 69% 31% e No Yes Impact Low 31% Impact Medium 44% 35% Impact High 14% 3% 44% 35% 6% Impact Very High 6% 21% 4/29/11 1:00:07 PM Data:­Model-Driven (BIM) Prefabrication

Usage

Use of Model–Driven (BIM) Prefabrication (by Percentage of Respondents) The use of Building Information Modeling (BIM) by industry professionals is on the rise, and this trend, in Source: McGraw-Hill Construction, 2011 data

turn, is expected to drive high levels of use of model- 2011 2013 ry

t driven prefabrication over the next two years. None Low Medium High Very High

dus (1%–25% (26%–50% (51%–75% (More than n

I Use of BIM of Projects) of Projects) of Projects) 75% of n

o Nearly three-quarters of survey respondents (73%) indi- Projects) 46%

cti cated that they are using BIM on some projects, with 40%

ru nearly a third of BIM users (32%) indicating that they are t

s using BIM on more than 50% of their projects.

n 29% Notably, prefabrication and modular construction users 27%

e Co are significantly more likely to also be users of BIM. 78% of

th prefab/modular adopter respondents use BIM on some proj- 12% 13% 12% ects compared with only 48% of non-adopter respondents. 9% y in 6% 7% it v Use of Model-Driven Prefabrication cti Model-driven prefabrication, where BIM models are provided to building product manufacturers to prefabri- cate building elements off-site, is projected to increase g Produ dramatically in the next two years. in Currently, 71% of prefabrication and modular construc-

reas tion users are doing model-driven prefabrication on some

nc projects. However, this activity is expected to grow to 91% : I

n by 2013—with a quarter of users (25%) doing model-driven o

ti prefabrication on more than 50% of their projects. za

i Contractors are doing the most model-driven prefab- rication today (76%) with nearly all (95%) expected to be doing some model-driven prefabrication in 2013. d Modular n

a Sidebar: Growth in BIM Use for Industry Players n

o McGraw-Hill Construction research conducted Source: The Business Value of BIM SmartMarket Report, McGraw-Hill Construction, 2008 ti

a in 2009 (The Business Value of BIM SmartMarket

ic Report) indicated that BIM use was growing rap- 60% 2007 2009 r

b idly with nearly half of survey respondents (48%) reporting use of BIM or BIM-related tools—a 75% 50% 48% increase in use compared with 2007 data. Further, Prefa in the 2009 study, one of the primary perceived future benefits, and driver of future BIM use, was 40% the ability to do prefabrication on larger and more complex parts of projects. 30% 28%

20%

10%

0%

McGraw-Hill Construction 41 www.construction.com SmartMarket Reports

SMR0411_Data_BIM.indd 41 5/2/11 11:45:05 AM SMR0411_Data_BIM.indd 42

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA ■ ■ ■ ■ ■ ■ for a number of nearly equally important reasons: important equally nearly of anumber for Respondents doing report model-driven prefabrication Model-Driven Prefabrication Reasons for Doing Primary PLAYER DEMAND REASONS REASONS PRODUCTIVITY Drivers Model-Driven (BIM) Prefabrication SmartMarket Reports Reports SmartMarket

Somewhat surprisingly, site/ making the construction was quality improving that report 15% users of The architect or engineer specifying model-driven model-driven orThe engineer specifying architect 16% of that users report saving time was their Owner demand for model-driven prefabrication was the was money saving that indicated 17% users of reason for (23%). architects architects (18%). indicating this was their primary reason. reason (14%) with slightly more engineers (17%) prefabrication was the second highest player demand (26%).and high among it was architects particularly 17% of users indicated this was their primary reason, prefab. model-driven doing for reason rated a highly prefabrication. much less influential reasons for doing model-driven process safer (2%) and greener (1%) were considered prefabrication. This was important a particularly their primary driver to using model-driven prefabrication. This was slightly more for important primary motivation for implementing BIM-driven contractors (22%). This was reason important a for particularly primary reason for doing model-driven prefabrication. McGraw-Hill Construction Construction McGraw-Hill

CONTINUED 42 Contractor/CM Demand Architect orEngineerDemand Improve Quality Save Time Owner Demand Save Money Source: McGraw-Hill Construction, 2011 (By Player) Model–Driven Prefabrication Primary Reasonfor Using

Contractors www.construction.com 5%

9% 9% 9% 9% Engineers 12% 14% 14% 15% 16% 16% 17% Architects 18% 18% 19% 22% 23% 26% (All Respondents) Average 12% 14% 15% 16% 17% 17% 4/29/11 3:42:55 PM SMR0411_SB_Owners.indd 43

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Sidebar:

P modularization in their projects report having used prefabrication/ Over 90% of the owners interviewed and Modularization Use of Prefabrication industry. rication/modularization prefab- of across the use the facing challenges the bene ts as well as the various perceptions of the drivers and being observed. the future as a result of the bene ts and expect its use to increase in of prefabrication/modularization favorable views regarding the use tion.) The respondents overall informa- have more for 45 page on box plants. (See the Pro le of Owners buildings and energy and industrial own commercial and institutional views with 15 leaders in rms that struction conducted in-depth inter- Con- McGraw-Hill 2011, February In Plants Energy and Industrial and Buildings Institutional and Commercial with of Owners Interviews In-Depth Prefabrication and Modularization Drivers Behind Owner Adoption of ules and cost reductions, which owners are which starting to recognize. reductions, cost and ules translating into compressed sched- ductivity pro- of the fabrication shop is increased the with combined out, the reduced cost of off-site labor for building and plant owners. as an important construction option tion/modularization has reemerged stick build prefabrica- construction, The interviews reveal the owners’ As the data in this report points cost savings compared to offer of potential signi cant ments in technology and the advance- new by ropelled Owner Perspectives Owner McGraw-Hill Construction Construction McGraw-Hill ■ ■ ■ ■ ■ ■ ■ ■ generators). front end, heat recovery steam combined cycle projects (gas turbine, pipe racks, skid mounted units and most commonly in the building of tion and modularization is used owners indicate that prefabrica- Industrial and energy plant use: of Sectors PLANT OWNERS INDUSTRIAL AND ENERGY est bene great- the ts. get owners where is which unit types and repetition is involved, to building projects where stacking prefabrica- tion/modularization that lends itself well state owners building Most commercial and institutional ■ ■ Sectors of use: of Sectors OWNERS BUILDING INSTITUTIONAL AND COMMERCIAL to 80% in their project portfolios. report levels of use ranging from 5% during the past two years. They

Oil re neries Power generation facilities (fossil- Control buildings Chemical plants Commercial warehouses Mixed-use/multifamily residential Retail and entertainment Schools and campus buildings Hotels Of ces fuel thermal and nuclear power)

43

www.construction.com www.construction.com prefabrication/modularization. from 10% to 30% as a result of using in their project schedules ranging reductions report owners All SCHEDULE in each of these areas. tion positively affecting their projects They see prefabrication/modulariza- modularization, followed by safety. to use prefabrication/ their decision ule and cost are the biggest drivers in levels of use. either current levels or increased projects over the next two years at fabrication/modularization pre- use to in their expect owners the of All Modularization or Use Prefabrication to Factors Decision on In Biggest uence The owners indicate that sched- that indicate owners The result.” quality pipe rack in place as a cost. And now we have on a 25% better ourselves saved we ized, delivered and [installed], modular- rack pipe the get out: “Once we were able to points owner plant energy One Example: Cost Reduction months.” 25 tion, it would have taken 24 or If it were conventional construc- in-service. to inception from ing project, it took build- 18 months recent a on ularization mod- used we “When states: A commercial building owner Example: Schedule Reduction Prefab/Modular in Action SmartMarket Reports SmartMarket CONTINUED 5/2/11 12:16:56 PM SMR0411_SB_Owners.indd 44

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Sidebar: costs costs include: modularization. a result of using prefabrication or reduc- tions ranging cost from 2% to 40% as project report Owners COST ongoing operations. weather delays or interference with risks such as conicting crews, site work contains fewer inherent compressed schedule because off- modularization can to lead to a Prefabrication/ off-site. completed of more work for a project being substantially shortened as a result on-site construction duration can be environment. and into a controlled manufacturing transferred away from the job site reduced when construction work is worker accidents and lost time is ularization. mod- and The risk to owners from prefabrication of use the all over- project safety is that improved through agree owners all Almost SAFETY logistics. onsite other and work accommodations, scheduling onsite onsite translate to fewer costs for ally, they Addition- mention that fewer workers reduced. be can overhead associ- ated with onsite costs infrastructure and location, off-site an to some or all of the work is relocated Several owners report that since ■ ■ SmartMarket Reports Reports SmartMarket Local labor for onsite work may be Unfavorable onsite conditions and costly delays. weather problems may lead to very expensive or inef cient. Several reasons for these reduced Overall, owners state that the Owner Perspectives Owner McGraw-Hill Construction Construction McGraw-Hill less exposure to: exposure less fabrication/modularization include ■ ■ ■ ■ a result of controlled factory and improved through off-site work as Most owners believe quality can be players reported in the data sections. responses from the other industry tion/modularization con prefabrica- rms of the advantages the on owners from feedback Overall Modularization and by Prefabrication Offered Advantages

Weather Congested construction Congested activities construction Hazardous operations Heights Types of safety addressed by pre- permitting.” and the cost of extra scaffolding congestion reduce to us helped Prefabrication/modularization tant issue due to lack impor- an of is space . scaffolding ing reduc- City, York New in projects A building owner states: “On our Example: Reduced Scaffolding only a few connections.” as a whole into place, requiring assembly The will later be level. hoisted ground at fabricated in a feet the hundred air is now constructed once was that ery tural steel assembly for a re n- One owner mentions: “Struc- Example: Structural Assembly Action in Prefab/Modular CONTINUED

44

www.construction.com ■ ■ labor is better. location where the supply of skilled Owners can shift work to an off-site advantage according to owners. cation/modularization prefabri- and use a to primary decision the in factor key a is This site. the of location exacerbated the more remote the skilled labor onsite, which becomes mon uncom- to not encounter is a it lack of that available indicate Owners building components. It allows for advantage of just-in-time delivery of owners as an important several by advantage. cited was operations Less disruption of existing onsite MENTIONED ADVANTAGES OTHER facilities. ment provided by the manufacturing environ- due to the quality controlled away from the site allows higher state that fabricating components fabrication/modularization. Owners pre- of advantage cant signi a as Quality is cited by almost all owners QUALITY of cheaper labor costs. off-site location and take advantage able to shift some of the work to an less costly alternative. Owners are pre- fabrication/modularization high, offers a very are costs labor local Owners state that in areas where the for prefabrication/modularization. Labor costs can also be a driver LABOR machinery. procedures handled by automated production conditions and repetitive

Costs Skills Several owners also emphasize the CONTINUED 5/2/11 12:16:57 PM SMR0411_SB_Owners.indd 45

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Sidebar:

tion/modularization, the engineering Owners indicate that with prefabrica- WORK DESIGN AND ENGINEERING TO COMMITMENT EARLY limited number of providers. trans- portation requirements and the increased work, design and ing engineer- to commitment early are: Primary challenges listed by owners using prefabrication/modularization. the bene ts against the challenges of determined by the owners weighing case, the decision the to implement make is help above mentioned While the drivers and advantages Modularization and Prefabrication of Using Challenges constructed. be to waiting tion degrada- of materials less being and stored onsite disruption site less rms) s m r 0 1 ( Industrial and Energy plants ) s m r 5 ( Institutional buildings Commercial and Profile Of Owners • • • • CT, Headquarters: MI, NC, Include Of Portfolios: ce, IN, AL, NJ, NY Headquarters: Including Oil Portfolios: and NV, NY, VATN, , Canada) (UK, Residential and Mixed-Use/Multifamily Retail Healthcare, Education, Nuclear) and Generation (Thermal Gas , Chemical and Power Owner Perspectives Owner McGraw-Hill Construction Construction McGraw-Hill majority of owners believe that the and industrial projects. While a projects, including both commercial component to some or all of their interviewed report having a green At least half of the owners ProjectsGreen in Modularization and Role of Prefabrication the of Perceptions straint and a risk factor. factor. risk a and straint con- a as seen is options sourcing of of components. This limited range universe of providers of other kinds tion is fairly small compared to the nents via prefabrication/modulariza- compo- of providers of universe The PROVIDERS OF NUMBER LIMITED cost- lier project in the end. substantially a in resulted which miscalculations were made up front Several owners cited cases where pay attention to transportation costs. construction begins. be planned and coordinated before equipment are factors that all need to requirements and the need for lifting tations, route restrictions, permitting Sizemodularization. and weight limi- feasibility of using prefabrication/ tation logistics transpor- in of determining role the key the cite Owners LOGISTICS REQUIREMENTS TRANSPORTATION INCREASED constraint on their delivery strategy. this commitment as inexible and a the planning stage, some owners see requires a well-de ned scope early in tion has to be completed. Since this where tional only construction a por- conven- to opposed as begin, can pleted before onsite com- construction be to have work design and Owners emphasize the need to CONTINUED

45

www.construction.com www.construction.com overall energy costs. costs. energy overall pollution, dust and noise, and lower in material waste, air and water impacts because of reductions namely, fewer onsite environmental prefabrication/modularization: the environmental bene ts of using that more awareness is needed on see page 39. can be effective on green projects, how prefabrication/modularization for their projects. For examples of currently pursuing LEED certi cation choosing it, and only two owners are yet see green as a primary reason for result less energy use, many do not leads to less waste onsite and as a use of prefabrication/modularization Feedback from owners illustrates only a handful of options.” fabrication, we pre- were left use with to deciding and codes However, RFP. after putting our in to all the responses thousand building onsite, we would get a One owner reports: “If we were Providers Limited Example: resolved up front.” tion need to considerations be transporta- and engineering the capacity of by a truck. These constrained be may module by transportation. The size of a sions are sometimes dictated “Dimen- states: owner plant One Commitment Early Example: Action in Prefab/Modular SmartMarket Reports SmartMarket ■ 5/2/11 12:16:58 PM Data:­Contractors

Usage

Current Use of Prefabrication/ The adoption of prefabrication and modular building Modularization by Contractor Type processes is not a new activity for most contractors. Source: McGraw-Hill Construction, 2011 DATA 57% of contractors surveyed have been using these Design-Builder processes for five years or more. 96% ndustry I Current and Future Usage Construction Manager Given that prefabrication/modular construction has been 89% around for many years, it is not unexpected that 84% of Mechanical Contractor contractors today are using these processes on some 87% projects. Further, by 2013, nearly all contractor respon-

onstruction dents (98%) expect to be doing some prefabrication and General Contractor C modularization on a least some portion of their projects: 85%

■■By 2013, 73% of all contractors expect to be using these Electrical Contractor processes at a medium to very high level (more than 82% 25% of projects). Two-thirds of mechanical contractors Fabricator (66%) expect they will be using these processes on 73% over 50% of their projects by 2013.

■■94% of large contracting firms (more than $100 million in annual revenue) have adopted these processes Top Building Sectors for Prefabrication/ compared with only 76% of smaller firms (less than Modularization Opportunity (Contractors) $25 million per year in revenue). Source: McGraw-Hill Construction, 2011 ncreasingProductivity thein I ■■Among contractors, design-builders (96%) are the Healthcare Facilities highest adopters of prefabrication and modular 19% processes, followed by construction managers (89%) Hotel and mechanical contractors (87%). 13% Building Sectors High-Rise Of ce (5+ Stories) Contractors are using prefabrication and modular build- 10% ing processes on a wide variety of commercial building projects. In particular, contractors today are using it on healthcare facilities (61%), university buildings and dormi- ■■Apart from expected occupational preferences (e.g., tories (50%) and public buildings (46%). MEP systems for mechanical and electrical contrac- ■■Over 50% of mechanical contractors are using prefabri- tors), design builders (38%), fabricators (30%) and cation on high- and low-rise offices and manufacturing general contractors most often use prefabrication

PrefabricationandModularization: buildings. (24%) on the building superstructure.

■■Contractors see the most future opportunity in health- Reasons for Not Using care facilities (19%), hotels and motels (13%), high rise The primary reasons contractors do not use prefabrica- offices (10%), commercial warehouses (9%) and other tion and modularization on projects is that the architect building types (7%) including data centers, prisons, did not design it into the project (48%), followed by the power plants and oil refineries. recognition that the process was not applicable for the Building Elements project (33%). As part of commercial building projects, contractors most ■■Construction managers (49%) and general contractors regularly use prefabricated/modular MEP systems (62%), (30%) also rated the lack of a local prefabrication shop exterior walls (39%) and interior rooms (31%). as a key reason for non-usage.

SmartMarket Reports McGraw-Hill Construction 46 www.construction.com

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PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA McGraw-Hill McGraw-Hill Construction ■ ■ ■ ■ ■ ■ tors believe that site safety stays about the about same. stays believetors that site safety of contrac- A majority components. these to place onsite toneed have more or equipment cranes other heavy Possibly this is due to the and size the of components safety. site it reduces that believe than players other improve site safety. However, more (12%) contractors any other player, 37% believe processes that these than More safety. onsite prefabrication/modularization of impact the on views mixed very have Contractors Site Safety 11% by budgets ormore. project decrease can it believe (23%) aquarter nearly and budgets, project decrease help can believe prefabrication/modularization that (74%)Nearly three-quarters of surveyed contractors Project Budget than weeks. four more by schedules decrease can usage that believing by over more with thanschedules a one week, third (37%) project decreases and modularization prefabrication believe surveyed that use72% of of contractors Project Schedule can improveprocesses productivity. construction believe prefabrication/modular that (92%) thanMore any group, player other contractors Productivity Contractors

Interestingly, a large percentage of fabricators (26%) Mechanical contractors (46%) and fabricators (42%) are about the prefab- most optimistic Design-builders Mechanical (85%) and (81%) electrical contractors 43% of managers construction believe that these that impact positive the on agree types contractor All followed by design-builders (18%).followed by design-builders believe that these processes decrease site safety, believe that these improve processes site safety. by budgets project reduce 20% or more. rication’s potential, with 18% believing that it can budgets. convincedare that particularly it can project reduce more. or weeks canprocesses by decrease schedules project four to 79% of mechanical contractors. schedules, ranging from 65% of contractors electrical prefabrication/modularization is having on project

CONTINUED

47

■ ■ Source: McGraw-Hill Construction, 2011 (According toContractors) to Prefabrication/Modularization Decrease inProject Schedule Due or more. are lower by 10% believe costs that such contractors 10% of Over products. building regular for than lower are materials prefabricated for costs installation and Nearly half of (47%) contractors believe that the purchase Installation of Materials and Price Purchase Source: McGraw-Hill Construction, 2011 (According toContractors) to Prefabrication/Modularization Decrease inProject BudgetDue

Over (28%) contractors a of quarter electrical and (53%) managers More than half of construction believe installation costs are costs higher.installation design-builders (27%) believe that purchase and lower. are costs installation and purchase that www.construction.com www.construction.com Increase No Change Decrease by1Week Decrease by2Weeks Decrease by3Weeks Decrease by4Weeks orMore Increase No Change Decrease 1%–5% Decrease 6%–10% Decrease 11%–20% Decrease Morethan20% 8% 22% 19% 30% 15% 7% 6% 5% 12% SmartMarket Reports SmartMarket 18% 37% 21% 4/29/11 1:13:26 PM SMR0411_Data_PlayerContractor.indd 48

PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA ■ ■ ■ ■ ■ gives them a competitive advantage (85%). advantage acompetitive them gives improvements (92%)productivity and the belief that it of the perceived because today and modularization cation like players, are usingContractors, other prefabri- industry DriversCurrent and modularization usage. However, when specific green prefabrication to driver akey as green (22%) view quarter a than Less prefabrication. of benefits green overall the of Results show that are contractors not particularly aware andSustainability Green than 25% in of 2013. their projects more on it doing be will they (55%) believe contractors of half However, over projects. their of percentage low (50%) Most doing on are it only a prefabrication. driven (76%) users doing model- also are modularization and prefabrication of contractor Over three-quarters Model-Driven Prefabrication schedules (84%). inproject improvements produce (85%) and costs construction to decrease to employ processes these ability their be will use prefabrication/modular future to believe that by 2013Contractors drivers the primary Future Drivers Drivers Contractors green benefits emerges. benefits green areaspects considered, a somewhat different picture on SmartMarket Reports Reports SmartMarket

Nearly (98%) all contractors mechanical and electrical Project Materials: Two-thirds of (66%) contractors also The primary reason why are contractors doing model- More managers than construction other contractors, Reducing Onsite Waste: 83% of contractors believe (29%) believes it reduces material use by 5% or more. more. by5% or use material reduces it (29%) believes aquarter aproject—over on used material of amount believe that prefabrication/modularization the reduces waste. onsite increases it that believes 1% than believe it reduces onsite waste by 5% or more. Less that prefabrication onsite reduces waste. Nearly 40% driven prefabrication is to save money (22%). key driver to future use. measurable improvements in project quality will be a (84%) and mechanical contractors (83%) believe that the primary driver. (97%)contractors see improvements productivity as

CONTINUED McGraw-Hill Construction Construction McGraw-Hill

48 Competitive Advantage Improve Productivity Source: McGraw-Hill Construction, 2011 (By Contractor Prefabrication/Modularization toUseof Current Drivers Results inGreenerProjectorSite Owner/Client Demand Generates GreaterROI

Contractor Mechanical Manager Construction www.construction.com 13% 19% 19% 21% 22% 23% 27% T Contractor Electrical Contractor General ype) 35% 37% 37% 39% 41% 47% Fabricator Design-Builder 54% 55% 63% 64% 73% 78% 82% 82% 83% 86% 86% 87% 94% 94% 96% 97% 98% 4/29/11 1:13:27 PM Data:­Architects and Engineers

Usage

Percentage of Future (2013) Prefabrication/ Modularization Use (for Engineers and Architects) a Like contractors, architects and engineers are familiar

a t with prefabrication and modular building processes. 64% Source: McGraw-Hill Construction, 2011 d

of architects and 77% of engineers surveyed have been Engineer Architect ry

t using prefabrication and modularization on some proj- None Low Medium High Very High ects for five years or more. (1%–25% (26%–50% (51%–75% (More than of Projects) of Projects) of Projects) 75% of

on Indus Current and Future Usage 49% Projects)

ti The long-term familiarity of architects and engineers with

ruc prefabrication and modularization translates into high

t 35% current usage. 90% of engineers and 76% of architects are

ons using these processes on some projects today. Further, 25% 25% C

e nearly all architects (98%) and engineers (99%) expect to 20% h be doing some prefabrication and modularization on at 14% 17% n t 12% least some portion of their projects by 2013. y i it

v ■■By 2013, 38% of architects and 43% of engineers that 1% 2% ti use prefabrication and modularization today expect to be using it on more than 50% of their projects.

■■97% of large engineering and 84% of large architectural Top Building Sectors for Prefabrication/

ng Produc firms (more than $10 million in annual revenue) have Modularization Opportunity i s adopted these processes, compared with only 76% of (According to Engineers and Architects) ea smaller engineering and 70% of smaller architectural Source: McGraw-Hill Construction, 2011

firms (less than $500,000 per year in revenue). Engineers Architects

on: Incr Reasons for Not Using Commercial Warehouse

ati 17% z

i The primary reason that architects do not use prefabri- r cation/modularization on a project today is because the Manufacturing la owner does not want it (39%). The primary reason engi- 15% neers are not using it on specific projects is because the architect didn’t design it into the project (44%). Thus, Multifamily

nd Modu there is a need for the industry to better educate owners 14%

on the benefits of prefabrication/modularization so that on a K–12 School architects will include it when designing projects. 14% ati c i Hotel br Building Sectors and Elements 14%

efa Today, both architects and engineers are using prefabri-

Pr cation/modularization on a wide variety of commercial building projects. Architects are currently using it most frequently on low-rise office buildings (43%) and health- care facilities (36%). Engineers use it most frequently on manufacturing buildings (46%) and warehouses (43%). In terms of future sectors of opportunities, architects and engineers report the following: ■■As part of commercial building projects, over two- thirds of architects (68%) and engineers (71%) are most ■■Architects see equal future opportunity in hotels (14%), likely to utilize prefabrication/modularization in the K–12 schools (14%) and multifamily housing (14%). building superstructure. Over half of architects and ■■Engineers see the most future opportunity in commercial engineers surveyed also use it in exterior walls and for warehouses (17%), and manufacturing buildings (15%). roof construction.

McGraw-Hill Construction 49 www.construction.com SmartMarket Reports

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PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY DATA ■ ■ ■ ■ ■ ■ ■ advantage. improvements andtoday competitive to be productivity forprefabrication/modularization using drivers primary Just like and architects engineers contractors, see the andFutureCurrent Drivers drivers to future usage. schedules and decreasing as being costs, primary improving including productivity, of elements and usage prefabrication/modularization driver of current improvements as beingproductivity the primary and notedAs above, engineers see both architects Productivity and quality. cost schedule, to project provide can and modularization usage willfuture the be improvements that prefabrication in the drivers belief thatto the contractors with primary aligned closely also are engineers and Architects Drivers andProductivity Engineers and Architects SmartMarket Reports Reports SmartMarket

68% of architects and68% of 70% architects of engineers are primarily Project Schedule—Both and architects engineers 70% of architects and 66% of engineers believe that (82%) engineers (83%) and architects both of 80% Over in that believe engineers of 79% and architects of 90% that believe architects of 52% and engineers of 60% Project Budget—42%Project and 52% of of architects engi- compared tocompared 74% of contractors. a positive on impact This budgets. project can be neers believe that prefabrication/modularization has t than contractors. positive on impact but schedules, projects less so see prefabrication/modularization as having a measurably higher quality on future projects. andprefabrication modularization will result in tion costs. believe will these processes future reduce construc- improvements in schedule. project the future will these processes result in measurable advantage. acompetitive them give processes these driven by improvements. productivity t 60% of architects both andengineersbelieve60% thatthe 31% of architects both andengineersbelieve thatit one week or more, versus 72% of contractors. by schedules project reduces use oftheseprocesses reduces project schedules by four more. or weeks schedules project reduces McGraw-Hill Construction Construction McGraw-Hill

CONTINUED

50 Change Change 39% Source: McGraw-Hill Construction, 2011 (According toEngineersand Architects) Due toPrefabrication/Modularization Level ofDecreaseinProject Budget ■ 40%

Source: McGraw-Hill Construction, 2011 (According toEngineersand Architects) Due toPrefabrication/Modularization Level ofDecreaseinProject Schedule

Site Safety—Most architects (77%)Site Safety—Most architects (62%) and engineers architects (3%) and engineers (6%) believe that prefab- that believe (6%) rication/modularization site safety. reduces engineers and (3%) architects few Very same. the about stays safety site that believe t t Engineer No Engineer No Most architectsMost (55%) believe that prefabrication/ 39% of engineers believe that project budgets are budgets project believe that ofengineers 39% reducing project budgets by 6% or more. by6%or budgets project reducing seeit 26% neutral,while isbudget modularization or more. by6% budgets project 37% itreducing while see byuseofprefabrication/modularization, unaffected www.construction.com 55% 40% Decreased Decreased by 1%–5% by 1Week 15% 7% 16% 5% Architect Architect by 6%–10% by 2Weeks Decreased Decreased 15% 12% 12% 10% by 11%–20% by 3Weeks Decreased Decreased 16% 8% 9% 9% by 4Weeks Decreased Decreased than 20% by More or More 31% 6% 31% 5% 4/29/11 1:11:28 PM Glossary:­

Definition of Terms Used

y Building Information Model (BIM): Modularization/Modular Construction:

tr A BIM is a digital representation of physical and functional The manufacture and remote assembly of major inte-

us characteristics of a facility. As such it serves as a shared rior or exterior sections of a building (e.g., wall, floor, d knowledge resource for information about a facility and roof) of one or multiple material types which may include

on In forms a reliable basis for decisions during its lifecycle portions of a system (e.g., electrical, plumbing). Examples

cti from inception onward. BIM also refers broadly to the include curtain wall, structural insulated panels and entire u creation and use of digital models and related collabora- building modules. tr tive processes between companies to leverage the value of the models. Off-Site Fabrication: Cons

e The fabrication or assembly of components (no manufac- h Building Superstructure: turing processes) off-site or on the construction site but at n t All parts of the building above the foundation, including a location other than the point of installation. The process y i

it the building frame, roof and exterior walls. is usually completed by specialty contractors (e.g., finish v carpentry). cti

u Green Building: d

o A building constructed to LEED or other green building Permanent Modular Construction (PMC): r

P standards, or one that involves numerous green build- A design and construction process performed in a manu- g n

i ing strategies across several categories, including energy, facturing facility, which produces building components s water and resource efficiency and improved indoor air or modules that are constructed to be transported to a quality. Projects that only involve a few green building permanent building site. crea products are not included in this definition. Prefabrication: on: In Integrated Design Process: Manufacturing processes generally taking place at a ati

z Active participation in all stages of design for all disci- specialized facility, in which various materials are joined plines involved in the design, construction and, at times, to form a component part of a final installation. Exam- lari

u the operation of the building. An integrated design ples include trusses, joists, structural steel and precast d team usually includes an owner’s representative; archi- concrete. Model-driven prefabrication describes the use Mo

d tect; mechanical, electrical and structural engineer; and of the BIM model to enable prefabrication and assembly n construction manager and/or general contractor. It can of building components both off and on the construction also include future building occupants, facility manag- site. on a ers and maintenance staff, subcontractors and building product manufacturers. Productivity: Productivity is the ratio of output to all or some of the abricati f Integrated Project Delivery: resources used to produce that output. Resources can re

P The delivery of a construction project according to a include labor, capital, energy, raw materials, etc. contract that calls for an integrated design process and that clarifies the legal responsibilities and risks born by all Project Budget: members of the project team. The project owner or client will generally determine the construction project budget. It is the task of the project Lean Construction: team to deliver a finished project to the owner maximizing The Associated General Contractors of America (AGC) project value within the budget. defines lean construction as a set of ideas based in the holistic pursuit of continuous improvements aimed at Project Schedule: minimizing costs and maximizing value to clients in all The time for the events related to the project planning and dimensions of the built and natural environment: plan- construction. A construction schedule may also address ning, design, construction, activation, operations, the resources required to accomplish the tasks as well as maintenance, salvaging and recycling. the dependencies of the tasks to one another.

McGraw-Hill Construction 51 www.construction.com SmartMarket Reports

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Prefabrication and Modularization: Increasing Productivity in the Construction Industry Methodology: ductivity both now and in 2013. in and now both pro ductivity perceived impact can processes processes and analyze how these and modularization construction and scope of use of prefabrication tivity on their construction projects. on their construction tivity produc on impact perceived and tion modulariza and prefabrication of use information on their perceptions and and March 7, 2011, to collect detailed ( ducted fifteen in-depth-interviews I (64%). tors contrac 518 and (23%), engineers includes 101 architects (13%), 190 gory displayed throughout the T report responses. plete T 2011. 22, between January 20 and net survey of industry professionals mary method was through an I an through was method mary T ways. two in conducted larization Modu and Prefabrication 2011 the Mc Methodology SmartMarket Reports Reports SmartMarket IDIs) of owners between T T G he research in this report was he use of a sample to represent a raw- Source: McGraw-Hill Construction, 20 Respondents by H S his survey had 809 com 809 had survey his ill tudy to assess the level n addition, M addition, n C Architect Engineer Contractor onstruction conducted he “total” cate “total” he HC F F he pri he ebruary ebruary 18 con Firm Type 11 nter - - - - 24% - - - Construction McGraw-Hill - 12 - - % margin of error. error. of margin high degree of confidence and low expected to produce results with a industry research standards I pling size and technique used in the foundation of statistics. true population is based on the firm gins of error of less than 12%. than less of error of mar gins with interval confidence 90% at design-builder/other (65), benchmark con tractor (141), fabricator electrical (119), (59) and contractor ical manager (55),construction mechan including general contractor (79), section, all contractor categories, tion, for the I 5%. than less of error of con the fidence interval is95%, with category a margin contractors the for margin of error of less than 10%; and the confidence interval is95%, with a error of less than 5%. confidence intervalwith a margin of in this survey benchmarks at a 95% nternet study conform to accepted T F or the architects and engineers, he total sample size (809) used 64% ­ C ontractors Perceptions

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T n addi n www.construction.com he sam Source: McGraw-Hill Construction, 20 Respondents by Large Medium Small ------Source: McGraw-Hill Construction, 20 Contractor Respondents 5% Other Contractors Design-Builders Fabricators Contractors Electrical Contractors Mechanical Contractors General Managers Construction 11 Firm Type 11 % 27% 32% 8% 29% 11 23% % 11 15 39% % 5/2/11 12:03:01 PM Resources Organizations, websites and publications that can help you get smarter about prefabrication and modular construction.

Acknowledgements:

The authors wish to thank our premier sponsors Island Companies, Modular Building Institute, National Institute of Standards and Technology and McGraw Hill Construction Syntheon for helping us bring this information to the market. Specifically, Main Website: construction.com we would like to thank Steve Collins at Island Companies, Tom Hardiman at GreenSource: greensourcemag.com Modular Building Institute, Robert Chapman at NIST and Jeff Peskowitz at Research & Analytics: Syntheon. construction.com/market_research Achitectural Record: archrecord.com We would also like to thank J. Doug Pruitt, Sundt Construction; Gregory Engineering News-Record: enr.com Howell, Lean Construction Institute; James Barrett, Turner Construction; Marty Sweets: sweets.com Corrado, Skanska; and Kevin Lebrecque, Limbach Facility Services for their Green Reports: willingness to be interviewed for this report. We would also like to thank the greensource.construction.com/ Construction Users Roundtable (CURT) for helping us recruit owners to be resources/SmartMarket.asp interviewed. We would also like to thank all of our association research part- ners who helped us disseminate the survey to their members. Finally, we would like to thank the firms that provided information about their projects and experiences with prefabrication/modularization as well as for their assistance in helping us secure images to supplement their project information.

NIST www.nist.gov

Island Companies Modular Building Institute www.islandcompanies.com www.modular.org Syntheon www.syntheoninc.com

Premier Partners The Associated General Contractors Island Companies: islandcompanies.com of America: agc.org Modular Building Institute: modular.org Construction Users Roundtable: curt.org National Institute of Standards and Technology: nist.gov Design-Build Institute of America: dbia.org Syntheon: syntheoninc.com International Code Council: iccsafe.org Partners Mechanical Contractors Association of America: mcaa.org Autodesk: autodesk.com/bim National Electrical Contractors Association: neca.org buildingSMART Alliance: buildingsmartalliance.org National Systems Contractors Association: nsca.org National Institute of Building Sciences: nibs.org Sheet Metal & Air Conditioning Contractors’ Pinnacle Infotech: pinnaclecad.com National Association: smacna.org Research Partners Society for Marketing : smps.org The American Institute of Architects: aia.org Other Resources: American Institute of Steel Construction: aisc.org BIMForum: bimforum.org American Subcontractors Association: asaonline.com Lean Construction Forum: agcleanforum.org American Society of Civil Engineers: asce.org Lean Construction Institute: leanconstruction.org Associated Builders & Contractors: abc.org ■ Design and Construction Intelligence SmartMarket Report www.construction.com

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