SR312 Prefabrication and standardisation potential in buildings (2019)

The extent of existing use of prefabrication in New Zealand buildings is discussed. Prefabrication and standardisation (S&P) are both generally thought to have benefits in building construction, but quantifying these benefits has proved difficult.

The initial cost when using S&P will not necessarily decline from traditional methods of construction. Instead, benefits such as quicker construction, savings in the use of standardised panels and modules and better product quality are seen as the main potential benefits. A method for combining these hard to quantify savings with costs is discussed.

The potential for further use of prefabrication and standardisation is analysed by building type and component. This finds that the amount of prefabrication could be increased to more than $5 billion per year, while $2.7 billion of standardisation could occur. These two figures are not additive, as they overlap, but this indicates that the overall S&P potential is somewhere between $5 billion and $7.7 billion.