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Implement modular construction strategies in your services

HEAVY CONSTRUCTION SERVICES

Segment    Family    Class

72

14

0

SDG Alignment

9. Build Resilient Infrastructure, Promote Inclusive and Sustainable Industrialization and Foster Innovation

SDG Target

9.4

Target Description

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Level of Effort

Level of Effort Scale

3

1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

ETCH Procurement Process .png

Assessment

• Conduct an assessment to determine the different modular construction companies in the area to identify your company's compatibility.

• Obtain the measurements of site height and width (to ensure that there is available vacant space adjacent to provide an opportunity to stage modular units) and evaluate the scope to shift 80% of the workforce from on-site construction.

• Assess the access to major transportation networks due to easy access to the site when modular units are transported to assemble.

Opportunity Identification 

Business:
Significant time savings gained (utilize better machines and construction practices at the factory) and the possibility to perform 80% of construction away from the assembly site. Improved quality reduces failure rate of assets, through predictability and reduced asset maintenance costs. This allows greater control over the quality, both in materials and construction methods.

Sustainability:
Decrease material wasted as packaging and scrap materials are more easily recycled. Lower carbon footprint as fewer workers on the actual site leads to reduced traffic and carbon emissions from vehicles and equipment and higher energy savings due to prolonged product lifetime from reuse.

Strategy Build & Execution

• Align with engineers, legal teams, and executives within the company on the potential shift to modular construction and make them aware of the benefits.

• Connect with a choice of a single modular construction company from the assessment.

• Prepare a roadmap to draw a contrast with this supplier.

• Shift 80% of the workers currently designated for on-site construction to modular unit construction in the factory (prepare the area to accommodate this).

• Prepare the construction sites to have space to stage the modular units before assembly.

• Train your construction workers on the know-how to work with modular units rather than materials.

• Train your stakeholders on how the modular units can be reused.

Supplier Negotiation & Contract

• Risk mitigation: The incoterms, contractor certificate validations/evaluations, and inspections should be prepared with an extra focus to accommodate variations concerning modular construction.

• Consider the option to pay by milestones achieved while including penalties for construction delays.

• Leverage: Identify ways to gain leverage through bulk purchases.

• Delivery: Any protocols concerning the delivery of modules to the project site must specify survey and inspection procedures, as well as any testing, final sign-off, or acceptance procedures.

Supplier Performance & Management

• Monitor progress with annual checks on the proof of compliance via building certifications. During the initial stages, gather feedback or conduct discussions with all internal stakeholders on their merits and challenges faced from this switch and methods to improve the execution.

• Establish a target performance efficiency to be achieved being the original construction methods (i.e. baseline). For every project completed, compare the performance data gathered from a modular construction strategy with the baseline data. Based on this evaluate the reduction in construction time, waste generation, assest maintenance costs, and improved employee morale for the new strategy execution.

• Annual monitoring of CSR reporting (internal and external) of contractor and their credentials.

Resource Links

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