The potential impact of stalling the delivery of public projects

The government announced in July that it would pause the £20bn New Hospital Programme while undertaking a review of the findings. In the interim, we are still awaiting news on the delivery strategy for the School Rebuilding Programme. But as Jackie Maginnis, chief executive of the Modular and Portable Building Association points out, Westminster needs to consider the wider implications of slowing or even stalling the delivery of public projects.

Modern methods of construction (MMC) are fundamental to both the health and education building programmes. One thing we have learned from the residential sector is that the stop start nature of housebuilding is not conducive to maintaining the operation of high-tech volumetric modular factories. Vast investment is required in digital construction and advanced manufacturing technologies and what is needed to maintain these operations, is a regular pipeline of work to cover the overheads. 

There were some funded commitments to education within the Labour manifesto to recruit new teachers, expand breakfast clubs and open additional nursery places. However, details on overall approach to education core spending or capital investment for the school estate was missing from the debate during the election campaign and we urgently need confirmation of how the School Rebuilding Programme will proceed. 

The health secretary has said Labour will complete the previous government’s New Hospital Programme. However in an interview with the BBC, Wes Streeting stated that this may be over a longer time frame, saying “I’ve got to make sure, firstly the money is there, secondly that the timetables are realistic and we’ve got the supply chain, the labour and the resources that we will need, and thirdly I’ve got to balance the need for new bricks and mortar alongside the need for new technology.”

I find his comments concerning on many levels. Slowing or even stalling the build of the 40 new hospital schemes under the programme will have a massive impact on the NHS and patient care, together with many of our members involved in the delivery programme who worked 24/7 during the pandemic to rapidly bring much needed facilities on stream. We have the supply chain in place, but any substantial delays will put this at risk.

Across the years, the MPBA and our members have been lobbying government to not only raise political awareness but gain an in-depth understanding of the technologies involved and fully embrace the benefits these advanced construction methods bring to public projects. Referring to ‘bricks and mortar’ shows a lack of understanding of new building technologies that are driven by digital innovations both in design and manufacturing. 

Evidencing value 

Pre-Manufactured Value (PMV) is a driving force in the specification of modern construction technology in public projects – particularly in the healthcare and education sectors. PMV is a core metric for measuring the level of MMC in a project and is central to the UK government’s procurement programmes. To secure a contract, suppliers are required to show that pre-manufacturing will account for at least 70 per cent of their construction costs, which plays to the strength of a volumetric modular approach. 

Although Pre-Manufactured Value is welcomed across the offsite industry, it is widely acknowledged that we do not have an industry wide definition of PMV that stands up. The accuracy of PMV calculations, particularly for the purposes of tendering – is something that must be addressed. Not only does it have to be precisely and consistently calculated but also it must be monitored to ensure fairness in the public sector procurement process. 

The golden thread

The Building Safety Act is now fully in force and intrinsic to this legislation is the ‘golden thread’ of construction information. This refers to a clear and complete record-keeping system that tracks all aspects of a building’s entire lifecycle. Central to the concept is guaranteeing the traceability and availability of project data and all decisions relating to the design, construction, safety performance and maintenance of the building. 

With volumetric modular construction all data can be validated and coordinated as part of a structured process, which helps provide accurate and reliable information for clients at the point of handover. It also means it is easier to identify what products and material specifications were used on previous projects should any legislation changes occur. 

Mandatory in all public projects, it is standard practice for Building Information Modelling (BIM) to be embedded into the design and advanced manufacturing processes involved in modular construction. As an established method of sharing building lifecycle data, BIM is regarded as integral to achieving a golden thread. However, as this technology has evolved, there needs to be consistency in how this information is stored and accessed for future generations to come. 

Wider implications

We understand the challenges facing healthcare and education providers – stalling or delaying the delivery timeframe of capital construction programmes will create ripples throughout the associated supply chain. The knock-on effect needs to be carefully considered before taking drastic action. Planning only for the here and now is not what healthcare, education or the construction industry needs – we must have a long term strategy – an investment plan for the future. We firmly believe the benefits of volumetric manufactured buildings begin in the factory, continue on to the construction site and last through the lifetime of the building.

MPBA

The Modular and Portable Building Association plays a key role in supporting all sections of the industry. Leading best practice principles, the association is represented on many committees for the benefit of members. Most importantly, the MPBA ensure evolving government policies and decisions are not made on behalf of the construction industry without due consideration for the impact they may have on the volumetric modular sector.