Construction News has obtained  figures from government departments that had, in 2017, committed to a  ‘presumption in favour of offsite’ methods of construction by 2019, are underwhelming. Three of these five departments –  those overseeing health, transport and defence – have not awarded a single  contract with an offsite criterion in the first eight months of 2019.  The Ministry of Justice’s one contract awarded so far this year, to Kier for  the HMP Wellingborough build, has an 11 per cent weighting for offsite.

It would be a mistake to read too  much into the results; the data only covers the first eight months since the  presumption came into play and the wording of the commitment is vague.

There was a mixed reaction from  industry figures about the latest data, some of whom suggested that the  adoption of offsite methods shouldn’t be rushed. Others called on the  government departments to commit to offsite by fully revamping their  procurement approach.

The Department for Education (DfE),  at least, is one part of government that has signalled a firm commitment –  and this shows in the results.

It already has offsite frameworks,  which it used to procure 22 contracts this year. The DfE referred to as a  government “pathfinder” in this area, with the more repetitive nature of  school buildings cited as a reason for its ability to make quicker progress.  The sheer volume of schools being built must also be a factor here, providing  a greater opportunity to fine-tune offsite methods.

The five departments set up the  Smarter Infrastructure Working Group for the purpose of sharing advice and  examples of best practice. So it would be surprising if we didn’t see the  other bodies following the DfE’s example in the near future and announcing  more of their own dedicated offsite frameworks.

Perhaps this is the calm before the  storm.

Assuming that these frameworks  materialise, those departments will soon be looking for appropriate  contractors that can demonstrate a commitment to offsite and modern methods  of construction.

With this in mind, Laing O’Rourke’s  announcement that it is opening up its £150m offsite factory for outside use  might have come at a good time for its rivals if offsite is about to reach a  tipping point.

Should this offsite presumption be  wholeheartedly embraced, the UK’s established contractors will need to work  together to ward off potential challenges from flashy newcomers.

Miles Rowland, Construction News

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