Off-Site Construction Implementation Resource: Off-Site .
National Institute ofBUILDING SCIENCESOff-Site Construction CouncilOff-Site Construction Implementation Resource:Off-Site and Modular Construction Explainedby Ryan E. Smith, University of UtahChair, Off-Site Construction Council, National Institute of Building SciencesIntroductionWhat is Off-Site Construction? Off-site construction involves the process of planning, designing, fabricating,transporting and assembling buildingelements for rapid site assembly to agreater degree of finish than in traditional piecemeal on-site construction. Off-site building includes a range ofmaterials, scales and systems, digitalsoftware, methods of manufacture andfabrication, and innovations in socialand technological integration. Off-site outputs include componentized, panelized, and modularizedelements deployed in the service ofstructural, enclosure, service and interior partition systems. An optimizing strategy of off-site is tointegrate these systems and supplychain through research, design, testing,and prototyping.Across the spectrum of off-site products,modular, is the most complete in factoryfinish, up to 95% in some cases, shippedand assembled as 3D volumetric unitsthat are service or structural units to bejoined on-site.Precast concrete structure being assembled.The modular industry consists of twodistinct industry segments: re-locatablemodular and permanent modular. Relocatable modular, sometimes referredto as temporary modular, are structureswhich meet temporary space needs andcan be leased in a short-term agreementor purchased outright. Job site trailers,temporary classrooms, communication pods, and show rooms are someexamples. Although permanent modularconstruction (PMC) has been flourishing for a decade or more in Europe, it isan emerging market in North America.PMC is comparable to site built structuresmeeting the International Building Code(IBC), the difference being that it is simplymanufactured in chunks within a factory.PMC is deployed for multistory multifamily structures, government buildings,health care facilities, schools, hotels, andany other building types found in traditional on-site construction. Whereas threeto four years ago PMC only constituted25% of the market share in the modularindustry, today it represents over 50%.The modular industry is host to bothmanufacturers, manufacturer direct, anddealers. Manufacturers produce modulesto service general contractors or modulardealers. Manufacturer direct may manufacture for general contractors and dealers, but also contract directly with ownersto provide modular solutions, acting as ageneral contractor. Both manufacturersand manufacturer direct organizationsmay be specifically focused on a particular building type, residential or commercial for example, or focus on re-locatableand/or permanent construction. Increasingly, however, manufacturers are becoming knowledgeable and skilled acrossthe array of building types, markets, andindustry segments.An Authoritative Source of Innovative Solutions for the Built EnvironmentModular buildings, temporary andpermanent, may be manufactured asstructural units that make up the structure of the building once assembledon-site. Non-structural modular such asfactory fitted bathroom or service podscan be placed within a larger modularsuperstructure or in traditional construction on-site.Steel modular and brick veneer at Yale Univ.(Photo courtesy of KieranTimberlake)Modules may be constructed frommany different materials including: woodframing, cold-formed steel framing, hotrolled steel, concrete, or a combination ofmaterial assemblages. Not all manufacturers will manufacture in many materials; rather manufacturers tend to focuson a particular type of construction tomaximize factory efficiencies. The choiceof material by stakeholders is usuallycontingent upon project demands, siteforces, and project cost. Further, projectsmay have a hybrid of material solutionssuch as traditional site built structure,bathroom modules, or structural modulesand a portion of the building that is traditionally site built due to programmaticdemands such as large openings, spans orother that are difficult to pre-assemble inthe factory.LEAD SPONSOR
2Off-Site Construction Implementation Resource:Off-Site and Modular Construction Explainedproduction process is a variable that mayin fact be controlled (or segments withinthe work flow at least), removing wasteand adding value in the building process.Left: Cross-Laminated Timber roof panel being installed in Madison, Wisconsin.(Photo courtesy ofDavid Kretschmann, Forest Products Laboratory) and Right: Panelized shear wall system. (Photocourtesy of AISC)Modular manufacturing uses an insideout approach to building. Modular framesare constructed as planes, fitted as boxes,and then finished from the inside out. Forexample, a dormitory unit may follow asequence of frame, interior surface, electrical, plumbing, mechanical, insulation,exterior sheathing, and cladding. This differs from the traditional on-site assemblysequence of outside in, which restricts themultiple trades that work on top of oneanother during the build cycle. Factoryproduction of modules avoids the difficulties of unpredictable weather, trades waiting on one another, and incessant delaysassociated with on-site construction.Building information model of an off-siteconstructed hotel room. (Courtesy of WhitingTurner).The process of modular construction isquite different than on-site construction.This leaves many owners, architects, andbuilders confused and sometimes put offby the process. Dealers contract for delivery of re-locatable or permanent modularconstruction, acting as general contractor. With increasingly complex buildingprojects, larger in size and requiring MEPsystems integration, dealers provideknowledgeable project delivery capacity between what is historically identically manufactured re-locatable modsin the temporary modular industry andsophisticated commercial constructionsolutions in the permanent modular con-struction industry. Together manufacturers and dealers are creating real value forproject teams and building owners whoare now embracing this form of construction and delivery.Why Off-Site Construction?Traditional contracts and on-siteconstruction practices rigidly delineateresponsibilities with much elaboration onthe consequences of failure. This contextreinforces risk-abating behavior, causingproject teams to not engage in collaborative processes and present an adversarial construction culture, much to thedisadvantage of all stakeholders. Ownersare losing money on projects, architectsand engineers are not seeing the quality ofdesign increase, and contractors are bearing a great deal of financial burden andrisk in the process. This fragmentationhas been quantified in terms of waste andproductivity.Construction is essentially the designand assembly of objects fixed-in-place.Therefore, traditional buildings aresite-produced goods, unique every time,and employ temporary teams—thistriad might be called the peculiaritiesof construction, distinguishing it fromother production industries. To make thisprocess more productive we can removethe site, not make the building unique,and keep labor intact from project toproject. Removing the site altogether isclearly not possible, but removing the sitepeculiarities to a degree vis-a-vis factoryproduction certainly helps. Keeping teamsintact is an idea that has brought successto design-build entities and designersor builders who continually engage withthe same engineers, contractors, andsubcontractors. Modular production hasthe capacity to keep teams more intactby controlling the workflow. Finally, theuniqueness of the building design andNational Institute of Building SciencesFurther comparing construction to manufacturing, according to the U.S. Bureauof Labor Statistics, 57%, of activities inconstruction are wasteful and non-valueadding. These are activities that are notcompensated. Manufacturing is directlyopposite with 62% of all activities beingvalue adding. Replacing the wasteful elements of construction with manufacturing benefits through modular processescan remove waste and increase value forprojects.Increasing construction efficiencythrough modular requires examination ofconstruction performance. Every projectmust consider a number of performancefactors including: Cost: capital and operational investment Labor: skilled and unskilled humanworkforce Scope: extent or breadth of project program Quality: meeting or exceeding designand construction goals Risk: exposure to potential financiallossPrefabricated closed panel wall assembly forhousing. (Photo courtesy of Bensonwood Homes)Off-Site Construction Council
Off-Site Construction Implementation Resource:3Off-Site and Modular Construction ExplainedAlthough not all of the factors will beequally valued in any given project, theygenerally have a contingent relationshipto one another. For a given program, thedesign team usually establishes relationships, maybe even unknowingly, betweenquality, schedule, and budget where onechange affects all the others. For example,an owner team may opt to select a lowerquality material in favor of saving cost orallow the project to be completed on time.In this balance of factors, risk plays a critical component.Off-site and permanent modular in particular, is not a blanket solution to everybuilding project. As such, the principles ofcost, schedule, labor, scope, quality, andrisk represent a sliding scale of opportunity and tradeoffs rather than definitiveanswers. When enacted intentionally andwith pre-planning, modular constructioncan be a solution to help find balancebetween these sometime competing performance goals of construction. Off-sitedelivery and early planning are co-lateralconcepts. Engaging the off-site fabricationindustry early in the design process tohelp solve this equation is fundamental tosuccessful utilization of the off-site designand construction process.Much research has been performed andis ongoing regarding the benefits of offsite construction. Documented benefitsof off-site construction versus traditionalon-site construction include: shorter construction schedules greater degree of predictability in cost reduced material waste reduced carbon emissions due to transportation to and from site associatedwith on-site construction reduced site disturbance, and finally an increase of safety and security oflaborers and trade equipment.Labor productivity has shown an increase of 30% on off-site projects whencompared with on-site projects. Ultimately, risk is reduced with off-site construction. (McGraw Hill 2009; FMI 2013;Mortenson Construction 2014; Quale et al2012)Range of off-site production in the construction sector. (Graph courtesy of R.E. Smith)Numerous projects have demonstratedthat schedule savings are the most easilydocumented and noticeable savings thatoccurs as a result of modular construction. Savings from 15%–50% by virtue ofmodular construction is not uncommonlyreported. This is due to concurrent siteand factory work, as well as factory production being faster than on-site framing,removing weather delays and subcontractor sequence delays associated withon-site construction.Clearly, material waste is reduced because fall off is recaptured in the manufacturing stream. However, the greatestenvironmental benefit demonstrated byoff-site construction documented in arecent publication in the Journal of Industrial Ecology is attributed to the reductionin transportation energy and carbon as aresult of workers commuting to a factoryinstead of the job site and supply yardsthroughout the day. (Quale et al 2012)Modular and panelized construction projects are regularly meeting LEED standardstoday.There are also notable disadvantagesto off-site construction that should bepointed out: Structural bulkiness: floor to floorheights and wall thicknesses affected Transportation restrictions limit module and panel size Spans and configurations of design aresomewhat restrictedNational Institute of Building Sciences Lack of transparency in overhead, profitmargin, transport, setting (cranes), andassociated increase in designer fees ifnew to the process. Flexibility and changeability of structure through future renovations becomes more difficultHow Does the Off-Site ProcessWork?The off-site industry has grown fromprimarily a re-locatable modular manufacturing sector to a building deliverysector. This presents difficulty for bothmanufacturers of panels and units andthe traditional building industry thatdo not understand off-site, its deliveryprocess, and how to engage effectivelyin that process. Because of this historyas a re-locatable modular industry, thesemanufacturers are accustomed to delivering buildings on turn-key contracts indirect negotiation with owners. This mayin fact be desirable for owners on certainkinds of projects that need a one-stopshop approach.However, on more complex projects,the off-site industry is less experienced.Manufacturers engaging in the designand delivery process for the duration ofan extended building project involvingnumerous project stakeholders includingdesigners, general contractor, and manytrades and contracts including design/build, design-bid-build, CM, and otherforms of mainstream construction agreement, are facing relatively new territory.Off-Site Construction Council
4Off-Site Construction Implementation Resource:Off-Site and Modular Construction ExplainedAn ideological and structural shift in theconstruction industry is occurring withthe abandonment of traditional designbid-build contracts toward design-buildand integrated project delivery that relyon performance contracting and sharedrisk and reward. Off-site construction isa synonymous concept with integrateddelivery. Research shows that projects thatdecide to utilize off-site after the designdevelopment phase have demonstrateda negative impact on both schedule andbudget as a result of employing modulartoo late in the process of building delivery.Ideally, stakeholders on off-site projectswould ask the following questions acrosstypical project phases as outlined in Prefab Architecture (Smith, 2011). Predesign: Does off-site aid in meetingthe cost, time, labor, site and programmatic goals for the project? Design: Is the project designed in integration with stakeholders for off-sitemanufacture, transport, assembly anddisassembly if required? Develop: Is the design of the projectdeveloped so that work is structured forwhat is done on-site and what is manufactured in the factory? Detail: Is detailing developed in collaboration with the design team, generalcontractor, fabricator and installer? Order: Are design changes reduced andare orders placed in a short time frameto reduce cost? Fabricate: Is fabrication performed withprototypes and lead times reduced incoordination with the project team? Deliver: Are site deliveries made just-intime, loaded and delivered to minimizehandling? Assemble: Are assembly operationsdesigned collaboratively and continuous ly followed to ensure safety, quality,time and cost parameters are met?Some differences that should be considered with off-site delivery versus traditional on-site include: Most states require a third party agencyand/or have a state program that regulates the design, approval and inspection of the building at the manufacturing plant and an on-site inspector forsiteworks. The extent or impact of theseprograms varies from state to state aswell as the associated cost of such. Transportation regulations are alsohandled state-by-state. Therefore, shipping from a state in which a module ismanufactured to another state wherethe site is located will require differing codes, permitting, lead cars, andvarious associated fees. Each projectshould carefully ensure this is wellconsidered. A general rule of thumb is500 miles maximum for shipping from amanufacturer to a job site. On average,modular manufacturers, for example,are approved to build in 20 states. Special engineering may be required toensure modules are structurally robustenough for dynamic load associatedwith transport. Often, manufacturersor dealers will have their own engineersin-house, in addition to the engineer ofrecord in permanent modular projectsthat are servicing a traditional designand build team contracted with theowner. Pick points where the panel or modulewill be lifted from the truck trailer by acrane and set on-site is to be designedas part of the element structure. Wooden modules may use a wraparound beltstrap. The most common crane usedfor setting elements is a truck mountedhydraulic crane, crawler crane and, inspecial circumstances, a tower crane.A determination on who will set theelements should be determined earlyduring contract negotiations. Critical Path Method is the most common method of construction scheduling where trades are stacked sequentially on-site. In off-site construction,concurrent scheduling overrides CPM,requiring a construction professionalapproach construction scheduling,cost, labor and supply chain management in a radically different way, to theadvantage of the overall schedule of theproject.Flat pack delivery. (Photo courtesy of EuclidTimber)National Institute of Building SciencesRoof assembly being delivered and installed onsite. (Photo courtesy of Whiting Turner)When Should Off-SiteConstruction be Used?The intention here is not to say that offsite generally and any one off-site systemis an appropriate solution to every building problem. Off-site has performed better on some building types, with certainbuilding teams and in certain locations.These guidelines are not meant to bedefinitive but suggestive of considerationthat should be taken when deciding if offsite is appropriate.1. Projects that are restricted by schedulesuch as schools and dormitories thatmust open for new school year or semester, embassies that must be built foroperations in a foreign country quickly,or retail units that must open doors togain an increased return on revenue.It is hard to think of any building typetoday that does not demand a shorterconstruction schedule.2. Repetitious projects such as identicalclassroom units, dormitory units, officeunits, laboratories, high-tech facilities,communication structures, and bathroom pods. Projects that employ uniqueforms, unique sustainability requirements, or a higher degree of control inthe end product also stand to benefitfrom off-site construction. The factoryprovides space for prototyping, qualitycontrol and ability to integrate complexsystems. As such, off-site is restricted tobox forms, and unique projects may infact demand geometric forms that offsite construction cannot provide.3. The delivery method selected by theowner can have a large impact indetermining if off-site is used or not.Although off-site can be used in anycontract form, design-bid-build contracts without consideration to meansand methods by the contractor during the design process or constructionOff-Site Construction Council
Off-Site Construction Implementation Resource:5Off-Site and Modular Construction Explainedmanager contracts that make decisionsconcerning construction method without input from owners can work againstoff-site delivery. This can be mitigatedby selecting design-build or integratedcontracts that allow for early fabricationdecision making by owners, designersand builders partnership with dealersand/or off-site product manufacturers direct through design assist duringthe planning and schematic phases ofdevelopment.There are a few characteristics of teammembers that are determinants of off-sitedeployment. These include: Experience of the team using modularconstruction in previous projects aidsin using off-site again. Design teammembers and contractors that haveoff-site experience have fostered confidence and skills to deliver again. Theseskills are different than on-site construction, as we have discussed, wherethe act of
Off-Site Construction Imlementation Resource Off-Site and Modular Construction Eplained National Institute of Building Sciences Off-Site Construction Council 2 Left: Cross-Laminated Timber roof panel being installed in Madison, Wisconsin.(Photo courtesy of David Kretschmann, Forest Products Laboratory) and Right: Panelized shear wall system.
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