MODERN METHODS OF CONSTRUCTION
IN THE AFFORDABLE HOUSING SECTOR
Mass timber at university of New Brunswick
What to consider when assessing MMC.
Build Canada Homes (BCH) has an ambitious mandate. At the heart of its effort to “spark a more productive homebuilding industry” is the adoption of modern methods of construction (MMC), which are innovative techniques like offsite manufacturing and digital solutions that improve project delivery. This includes prefabricated, modular and mass timber building, standardized designs, and construction technology such as Building Information Management (BIM). It is encouraging that the federal government is alert to, and supportive of, emerging technologies that can innovate and improve Canadian construction.
At EllisDon, we consistently embrace innovative technologies when finding the right construction solution for our clients.
From using mass timber in our Centennial and University of New Brunswick student housing projects, to using volumetric modular solutions in our London, Ontario Rapid Housing Initiative affordable housing projects, to using precast cold formed steel wall panels in our 60 Caledon, Hamilton Ontario affordable housing project, we continuously use MMC to optimize cost and schedule efficiencies for our projects.
So, with the commitment of BCH to ensure the adoption of MMC in their projects, it is worth exploring how MMC is managed and leveraged through the many layers of affordable housing development.
Navigating approvals and entitlements.
A primary consideration when developing affordable housing is how to best navigate entitlements and approvals processes. Any MMC should give an advantage to a housing developer navigating through planning and zoning, site plan approval and building permits. Being responsive to community needs and municipal requirements are top priorities, and any MMC should be flexible and adaptable to achieve these.
Standardized designs, like the federal government’s Housing Design Catalogue and EllisDon Community Builders’ Base DesignTM can be excellent tools as they are specifically designed to expedite a project through the pre-development period and get to building. We frequently use building information modeling (BIM) for more accurate estimating and planning, which can also allow for more detailed design of offsite modules and project component.
It is crucial to ensure that the cost of any MMC competes favourably with other available solutions.
It is great to support emerging technologies, but it must be the most efficient way to develop your project, particularly given the urgency to build affordable and sustainable housing across Canada. EllisDon Community Builders looks at any construction solution through three cost lenses when evaluating a construction solution:
1. Hard costs – Does the MMC allow for total hard costs savings? Consider building materials, labour, equipment and site work. For example, a construction solution may offer a cost advantage in manufacturing and supply, but are these savings offset by transportation, foundation work or labour considerations that make it less appealing than another solution?
2. Soft Costs – Does the MMC offer a good deal on hard costs, but require an extended pre-development period due to a system that is challenged in getting entitlements and approvals? Systems that require extensive customization or cannot respond to municipal standards may lead to longer pre-development timelines and higher soft costs. Know what your pre-development plan is before committing to an MMC too early, or you may be stuck with unexpected costs unnecessarily.
3. Financing Costs – It is critical to allocating costs across a project timeline to ensure manageable cash flows, particularly for non-profit organizations who may need to invest upfront equity to make their projects feasible. Upfront deposits or significant redesigns along the way may incur more debt or equity financing solutions well before your project begins earning income to service your financing solutions.
Precast cold formed steel wall panels at 60 Caledon for Victoria Park Community Homes
Prefabricated walls and floors being put in place to build 261 affordable housing units in Hamilton, Ontario
Put time on your side.
MMC solutions can have a positive impact on your project schedule. The example commonly cited is offsite assembly of project components happening concurrently with site preparation and foundation work, significantly compressing timelines. Also, consider the value of using BIM to specifying project components during the pre-development stage. This can lead to much more efficient procurement of materials. And if you have a standardized design, you are likely well ahead of the game in expediting your project through design development and financing applications.
What to expect from partners.
EllisDon is one of the largest deployers of MMC in Canada. We always look for ways to incorporate technologies and solutions that achieve our clients’ goals most effectively. It is always the role of the general contractor assess all options available and present these options to the client. At the end of the day, the owner should always be comfortable that they have made the best choices for their project after an informed, competitive and reasoned review of the options available to them.