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With average margins somewhere below 5%, how to improve construction efficiency is contracting’s biggest challenge. Greater standardisation, offsite manufacturing and digital management of the construction process is recognised as the solution, but implementation strategies vary.

Laing O’Rourke stands alone with an in-house manufacturing facility but competitors have steered clear because the upfront investment and need to keep a factory working flat out to provide a return is seen as too expensive and risky. Instead, most rely on their supply chains to invest in manufacturing facilities and concentrate on streamlining site processes to drive efficiency.

The downside is that the contractor does not have complete control and visibility of the design, manufacture and delivery of the components, which limits the effectiveness of the project management process. 

Mace has been developing a standardised approach to high-rise residential construction that leverages its supply chain manufacturing capability, therefore avoiding the cost of a factory yet giving it similar advantages to owning one. The objective was to cut the programme by 25%, vehicle movements by 40% and construction waste by 70%.