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Construction costs

Over the last seven years construction costs have risen by 50 per cent in the residential sector and 63 per cent in the social sector, and look set to continue rising out of step with other sectors.

There is continuing evidence that the shortages of skilled labour and the impact of the world market for materials are also driving up prices, which are also trends that may well continue.

The Design for Manufacture Competition is addressing major rises in construction costs that have contributed to a lack of capacity and flexibility in the construction and development sectors. Design for Manufacture (DfM) is demonstrating that efficiencies can be achieved to mitigate and reduce the impact of these costs.

Design quality

The other main aim of the competition is to show that it is possible to build good-quality, cost-effective housing.

A recent audit of housing quality by the Commission for Architecture and the Built Environment (CABE) showed that only 18 per cent of the new housing developments sampled were of good design quality. The majority (53 per cent) were average but 29 per cent were poor quality.

There are many benefits of good quality building and urban design. While design costs are a small percentage of overall construction costs, it is through the design process that the biggest positive impact can be made on the efficiency, quality and long-term sustainability of buildings.

The importance of sustainability is also one of the reasons why the Government developed the Code for Sustainable Homes. English Partnerships has adopted level 3 on the Code as a minimum standard since April 2007 and launched the Carbon Challenge as a successor to DfM, to demonstrate the technologies and approaches necessary to achieve the highest level of the Code.

Construction efficiency

Sir John Egan's Rethinking Construction" report of 1998 showed that construction labour has only 40 per cent to 60 per cent efficiency, about 10 per cent of materials are wasted and 30 per cent of construction requires rework.

The industry has made progress in seeking change since the Egan Report and the Government has been supporting several industry initiatives. To move further, the sector needs to continue to make radical changes to the way projects are designed, procured and delivered.

More efficient construction methods can increase the speed and efficiency of housing supply, achieve higher quality and better standards of what is built, and offer resource efficiency by reducing waste, increasing productivity and improving health and safety. Design for Manufacture is demonstrating these efficiencies, increasing the supply of environmentally sustainable and well-designed housing.