Podcast: The Future of Housing. Exploring the Benefits of Modular Construction

What is Modular Housing?

Modular housing is essentially a fully metric offsite manufacturing (OSM) provider, which is a modern method of construction. We build about 90% of the house in the factory before transporting it to the site for quick installation.

Typology

We use fully metric boxes that can be clipped together to form 2 to 4 bedroom standalone houses. These houses can be used as terraced, duplex, or standalone units. The 3-bedroom units are designed to avoid landlocked bedrooms by using them to build duplexes, ensuring all bedrooms have natural light. We also offer 1-bedroom apartments, typically built to two levels and approved up to three levels.

Ideal Customers

Our ideal customers include community housing providers, Iwi, Kainga Ora, and larger-scale developers who can benefit from repetition housing.

Design Motivation

Our designs are driven by the private sector's unitary plan and the infill housing market. We initially catered to community housing projects, providing us with a robust framework that we can enhance with higher quality products for the private sector.

Sweet Spot

Our optimal project size is 6-7 houses, based on the unitary plan model. While we can do fewer, the real benefits start with six houses.

Factory Setup

We researched previous attempts in the industry to understand their failures. We believe the key to success lies in repetition housing.

Designs

We offer 8-9 basic designs with variations. The skeleton remains the same, but the external appearance can be customised.

Onsite vs Offsite

About 90% of the construction happens offsite in our factory. Onsite work involves connecting the modules, handling aesthetic details, installing carpets, and completing outdoor work like decks and gardening. Our goal is to create "plug and play" housing with a robust feedback process from our team.

Design Limitations

We face limitations regarding what can be built and transported, particularly concerning building height due to transport constraints like bridges and powerlines. However, we can design around most other factors.

Fully Metric vs Traditional Construction

The primary reason for choosing fully metric construction is speed. This method allows simultaneous onsite and offsite work, unlike the sequential nature of traditional projects. It's important to approach this method with an open mind and not adhere strictly to traditional practices.

Collaboration with Clients

We start by evaluating the site to determine feasibility. If suitable, we proceed with an initial estimate and collaborate with a contractor. Our role is more advisory, helping design the project for optimal outcomes.

Budget and Financing

Financing for modern construction can vary, especially since the asset is offsite initially. Banks are adapting, and institutions like Westpac offer suitable products. The main financial benefit comes from reduced risk by building in a controlled environment, allowing more projects to be completed in a year.

Risk Management

We manage risks like weather by working in a controlled environment. A house takes about 30 days to complete and is built through a consistent, scalable process.

Consenting Process

Our repetitive designs streamline the consenting process with specific teams in government departments and local BCAs. We follow a thorough QA process to expedite approvals.

Certification

We aim for full certification under the BuiltReady scheme, meeting all current housing and thermal bridging requirements.

Authorities and Storage

Authorities recognise our repetitive designs, simplifying the approval process. We store completed modules on a 1.4 hectare site, covering storage costs up to a point included in our pricing.

Site Work and Installation

We handle all site work, from foundations to final installation. We aim to install blocks of five houses in a day, minimising disruption. Our strategic alliances with key trades ensure smooth operation and reduced risk.

Safety and Sustainability

We focus on reducing risks through careful design and collaboration with trusted partners. Our factory processes minimise waste, and we use electric vehicles for office work. Future goals include reducing embodied carbon.

Production Capacity

Our factory can produce 60-70+ houses annually, with the capacity to scale based on site delivery capabilities.

Project Management

We act as the main contractor onsite, ensuring all connections and final touches are handled professionally. Our integrated approach reduces risk and costs.

Client Advisory

For clients new to modular housing, we advise starting early, engaging in collaboration, and keeping an open mind. Avoid approaching modular housing with traditional construction expectations, as the benefits are maximised through trust and partnership with the supplier.

Sustainability Contributions

Our designs meet new requirements for better products with minimal waste. We've focused on thermal bridging and performance, and now we're working on reducing embodied carbon in our houses.

Summary

Modular housing offers a streamlined, efficient alternative to traditional construction, with significant benefits in speed, cost, and risk management. Working collaboratively and with an open mind can maximise these benefits.