the apartment construction cost demonstration project research project

66 Pages·2016·2.44 MB·English

THE APARTMENT CONSTRUCTION
COST DEMONSTRATION PROJECT
RESEARCH PROJECT
“ AN AFFORDABLE PLACE
TO LIVE IS MORE THAN JUST
HOUSING AND HOUSEHOLD
COSTS. IT INCLUDES THE
NEIGHBOURHOODS THAT
ARE CREATED AND THE
COMMUNITIES THAT EMERGE.
IT IS ABOUT THE CONNECTIONS
THAT ARE SUPPORTED,
SERVICES THAT ARE PROVIDED
AND THE LIFESTYLES
THAT ARE SUSTAINED”
renewalsa.sa.gov.au/projects/apartment-cost-demonstration-project
3 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
Disclaimer: This Report was produced by
The information contained in this
document is only intended to be a
report of the experience of Renewal SA
in relation to a specific development
project undertaken by Renewal SA. The
Government of South Australia does not
warrant (express or implied) that the use of
any of the information (in whole or in part)
contained in this document will deliver the
same or similar results or outcomes for
other development projects. No warranty,
express or implied is made regarding
the accuracy, adequacy, completeness,
reliability, suitability or usefulness of
the whole or any part of the information
In partnership with our
contained in this document. You should
seek your own independent expert advice
Builder Partner
and make your own enquiries and satisfy
yourself of all aspects of the information
contained in this document. Any use or

reliance on any of information contained
in this document is at your own risk in all
things. The Government of South Australia
and its servants and its agents disclaim
all liability and responsibility (including
for negligence) for any direct or indirect
loss or damage which may be suffered by
any person through using or relying on
any of the information contained in this
document. Any liability of the Government
of South Australia, its servants or its agents
in any way connected with the information
contained in this document, whether or
not such liability results from or involves
negligence, will not exceed $10.00.
And our
Design Partner Lead
Studio Nine Architects
4 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
INDEX
Executive Summary PART A
Lessons learned by the process
Process flow chart – Research & design
The Report
documentation phase
“Why we did, what we did”
a. Commitment to collaborative process
1. Delivering housing affordability b. Establishing the project success factors
for Adelaide
c. Implementing a ‘first principles’ approach
2. Sharing the learnings
d. Determining cost centres
3. Paramount objectives
e. Developing the concept design
4. Industry involvement
f. Value engineering
“What we did”
g. Interim Stop / Go Assessment
5. Project Scope
h. Validating the concept design
6. Total project construction cost
“What we learned”
7. Key findings
^ Design and construction lessons
^ Lessons learned by the process
^ Commercial assessment
8. Research phase
9. Construction cost reduction
10. Project design
11. Apartment layouts
12. Construction options
^ The preferred option
^ Other options considered
^ Alternative options
^ Prefabrication
^ Cross laminated timber
^ Under-croft car parking options
13. Summary
5 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
PART B Conclusion
Case Study
^ Introduction Appendices
^ The Brief
^ Turn key objectives & marketability 1. Key project participants
^ Research and Design: the process not the 2. Partner profiles
solution
^ Materials matrix sheet 3. High level design outcomes
^ Design methodology – the solution 4. Affordable housing price points
approach
^ Sustainability 5. IRG participation
^ Various options 6. Project schedule
^ Cost reduction approach
7. Cost centres
^ Shortlisted construction options
^ Iterative process & value engineering 8. Workshops
^ Superstructure construction: walls
9. Designs
and floors
^ Commitment to detail design
^ Construction options
^ Prefabricated bathroom pods
^ Accessible apartment option
^ Method of measurement
^ Assessment metrics
^ Statutory requirements
^ Site constraints
^ Servicing
^ Building Management
6 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
EXECUTIVE SUMMARY
The Apartment Construction Cost m2 (GST exclusive) for the demonstration
Demonstration Project was an innovative and project. It is important to note that
collaborative partnership between Renewal depending on market conditions and supplier
SA and the private development sector relationships, pricing can vary. Indeed, the
to investigate contemporary design and project revealed a plethora of new materials
construction approaches to minimise building and emerging systems continually coming to
costs. market. Ultimately, the most cost effective
system will depend on the developer’s specific
Following a public expression of interest
apartment design.
process run by Renewal SA in mid-2014, multi-
award-winning firm Mossop Construction + Based on the project team’s experience,
Interiors was appointed as the builder partner adopting some or all of the following
and leading Adelaide architectural firm Studio principles were found to be effective
Nine was chosen as the design team leader. in reducing construction costs for the
demonstration project:
Consistent with State Government urban
planning policy, identifying more cost- ^ Modular layout with straight and aligned
effective construction methodologies for walls on a grid pattern at span widths of
multi-storey residential buildings supports the structural/ flooring systems
higher urban density and urban infill within ^ Reducing the volume of material by
the middle ring suburbs. designing all load-bearing walls to the
ground (using direct load paths) to avoid
Industry and Renewal SA experience shows
secondary framing
that typical apartment construction rates
make it challenging to recover construction ^ Co-location of services to allow floors to be
costs from the selling prices supported by easily ‘stacked’
the market outside of the CBD, near CBD ^ Optimal spans of around three metres to
locations, beachfront and other selected allow a wider choice of materials and to
high amenity nodes within metropolitan reduce waste during construction
Adelaide. Typical apartment construction ^ Designing all bedrooms, kitchens and
rates are often more than double the cost per bathrooms to be of similar size and layout
square metre of a two-storey detached home. to maximise replication and reduce costs
Analysis by Renewal SA indicated that a total
^ Rationalise room orientation to have direct
project construction cost between $1800 and
light and ventilation
$2000 per m² (GST inclusive) would need to
be achieved to ensure commercially viable ^ Easy fire compartmentalisation
apartment developments of four storeys. This ^ Compact common areas (which will also
became the target construction cost range reduce community corporation costs)
for the project which compares favourably ^ Moving wet areas to external walls of
to historical apartment build costs between apartments to minimise noise-reduction
$2400 and more than $3000 per m² (GST costs
inclusive).
^ Reduced building footprint
The demonstration project highlights the ^ No roof plant
exciting potential for cost savings and ^ Prefabrication such as bathroom pods,
improved design outcomes through early pre-built internal and external walls, and
and ongoing collaboration between the floors.
design team and the builder.
Summing up: this report does not propose
The preferred construction system a single solution to every building cost
determined by the project team was a challenge. Rather, it demonstrates a logical
combination of an insulated concrete form step-by-step process whereby developers
(ICF) product for the external and internal can assess options in terms of design,
walls and a pre-cast concrete floor cassette material selection, construction methodology,
system for the floors. site influences and building layout. The
methodology outlined in this report can be
The system achieved the target cost per
applied to the construction of any multi-
square metre rate, with a market-tested price
storey apartment building.
of $1974 per m2 (GST inclusive) or $1795 per
“G IVEN THIS INDUSTRY-
WIDE CHALLENGE, TO FULLY
ADDRESS THE ISSUES OF
HOUSING AFFORDABILITY
AND CHOICE, PARTNERSHIPS
BETWEEN THE PRIVATE,
GOVERNMENT AND
NOT-FOR-PROFIT SECTORS
ARE REQUIRED TO IDENTIFY
INNOVATIVE AND CREATIVE
NEW SOLUTIONS”
8 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
THE REPORT
This report covers the learnings from the disabilities.
process of research, design development
Identifying more cost-effective construction
and documentation. It consists of this Report
methodologies for multi-storey residential
Summary, and includes two supporting
buildings supports higher urban density and
sections: Part A – Lessons Learned and Part
urban infill within the middle ring suburbs.
B – Case Study.
With this in mind, a key objective of the
“Why we did, what we did”
demonstration project is to deliver a market-
based methodology that has the potential to
1. Delivering housing affordability
be replicated to achieve lower construction
for Adelaide
costs for a four-storey apartment building
than have historically been achieved in
The South Australian Government’s urban
Adelaide.
planning and development aspirations for
the next 30 years aim to ensure that Adelaide Industry and Renewal SA experience shows
remains a city that is liveable, sustainable and that typical apartment construction rates
productive. make it challenging to recover construction
costs from the selling prices supported by
The State has been a leader in housing
the market outside of the CBD, near CBD
affordability: a key strategic priority for the
locations, beachfront and other selected high
government continues to be ensuring that
amenity nodes within metropolitan Adelaide.
more South Australians have an affordable
home in a location of their choice. Housing Given this industry-wide challenge, to fully
represents the single largest expense in the address the issues of housing affordability
average household budget and, for most and choice, partnerships between the private,
South Australians, their quality of life is government and not-for-profit sectors are
influenced by the rising costs of housing, required to identify innovative and creative
transport and utilities. new solutions.
Ultimately, the planning of our As part of the contemporary thinking that
neighbourhoods and the design of our homes is required, Renewal SA embarked on
can also help reduce the cost of living and this demonstration project to design and
improve our general wellbeing. construct a four-storey apartment building
in a middle ring suburb that delivers a
The Apartment Construction Cost
commercial return and does not require a
Demonstration Project is an innovative and
subsidy to achieve a selling price for each
collaborative partnership between Renewal
apartment that is market responsive.
SA and the private development sector
to investigate contemporary design and Industry and Renewal SA experience shows
construction approaches to minimise building that typical apartment construction rates are
costs. often more than double the cost per square
metre of a single-storey detached home.
The State Planning Strategy forecasts
Analysis by Renewal SA indicated that a total
a requirement for at least 38,700 new
project construction cost between $1800 and
affordable homes in Greater Adelaide
$2000 per m² (GST inclusive) would need to
and 7,000 new affordable homes in non-
be achieved to ensure commercially viable
metropolitan areas of the state over the next
apartment developments of four storeys. This
30 years.
became the target construction cost range
Under the State Government’s planning for the project which compares favourably
vision, the majority of new homes are to be to historical apartment build costs between
built within existing urban areas to better $2400 and more than $3000 per m² (GST
utilise existing infrastructure and to enable inclusive).
ease of access to transport, jobs, education
and other services and facilities. Projections,
however, indicate restricted housing choices
and a shortfall of well-located dwellings and
affordable dwellings for rental and purchase
suited to an aging population or those with
9 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
2. Sharing the learnings 3. Paramount objectives
Benefits experienced by Renewal SA of the The demonstration project, managed by
Apartment Construction Cost Demonstration Renewal SA, has two paramount objectives
project are intended to be communicated by to benefit industry initially and ultimately
Renewal SA and this report is the first of a homebuyers:
number of initiatives to share the learnings.
1. Deliver an apartment building for public
Disseminating the learnings of the sale at market price points for inner/
demonstration project will help to overcome middle ring metropolitan locations, in
the current high apartment construction costs a manner that has the potential to be
which are a barrier to the delivery of this form replicated. To do this, the project set out to
of housing in the broader Adelaide market. achieve a target building construction cost
that results in a significant reduction in
Renewal SA intends to communicate the
total project cost.
following types of project learnings:
^ the collaborative benefits of builders and 2. Share the learnings with the construction
designers working together; and development industry of how such
a reduction was achieved – particularly
^ design efficiency;
around techniques and practices for
^ cost and buildability of varying building layout, site layout, construction
construction methods;
methodology and choice of materials.
^ how material selection impacts upfront
building costs for developers; and In order to deliver these paramount
objectives, the following project scope was
^ the life cycle cost to future apartment
established:
owners.
The purpose of this report is to provide a ^ Investigate alternative construction
techniques and design efficiencies
update to industry on the demonstration
based on residential/ domestic building
project and to stimulate ideas for future cost
approaches to achieve lower building
effective housing projects currently underway
construction costs than has historically
or in early planning by the private sector.
been achieved potentially using timber or
The report is not intended in any way to steel framing systems (or other building
be a definitive ‘how to’ guide on apartment systems);
building design and construction. The
^ Demonstrate design innovation
research and design documentation phase
incorporating sound sustainability
demonstrated that the cost of floor and
principles;
walling systems and construction materials
can vary significantly depending on market ^ Deliver demonstration projects within an
existing Renewal SA project;
supply and demand, the buying power of
the builder and the relationship between the ^ Meet the State Government’s 15%
builder and a supplier. affordable housing requirement;
^ Ensure any newly-created intellectual
No single building system, construction
property is available to the construction
methodology or material had a major
and development industry;
advantage – although some are clearly more
cost and time effective than others for a four- ^ Collaborate with the broader private
sector development industry by direct
storey apartment building.
engagement with firms involved in
Nonetheless, the project clearly demonstrates apartment project delivery and via
the benefits of flexible thinking when industry representative bodies.
assessing the variety of floor and walling
^ Proceed to on-site delivery only on the
systems and materials available for multi-
basis of meeting target construction costs
storey residential construction. This open-
(and therefore a total development cost)
minded approach is especially important
and being market based to achieve a
given the continual release of new
commercial return so that the project has
technologies and materials to market. Even
the potential to be replicated.
more significantly, the demonstration project
shows the exciting potential for cost savings
(and better design outcomes) through early
and ongoing collaboration between the
design team and the builder.
10 THE APARTMENT CONSTRUCTION COST DEMONSTRATION PROJECT
RESEARCH REPORT NOVEMBER 2016
4. Industry involvement development activity to determine cost-
effective building technologies and cost
Renewal SA appointed an Industry Reference engineering. Anticipated outcome will
Group (IRG) representing the Urban be construction-ready documentation to
Development Industry Association, Housing achieve the target cost-per-square-metre
Industry Association, Property Council, construction rate.
Master Builders Association, Australian
^ Stage 3 (construction and selling phase):
Institute of Architects, Planning Institute
on-site delivery of civil and apartment
of Australia and the Australian Institute of
construction subject to approvals.
Building Surveyors.
The construction cost target of $1800 to
The role of the IRG is to provide input into
$2000 per m2 (GST inclusive) is based on
the progress of the demonstration project,
anticipated retail selling prices for apartments
as well as ensuring the formal exchange
in the high $200,000s to low $300,000s that
of learnings from the project site. Where
have been established in Stage 1 of Renewal
relevant, the IRG will share contributions from
SA’s The Square at Woodville West medium
industry on cost effective medium-density
density residential project.
apartment development. The IRG provided
guidance throughout the research and design The height of four storeys was chosen
documentation phase of the demonstration after industry advice through the Industry
project and will continue to be involved if the Reference Group that this would represent a
project proceeds to the construction phase. viable demonstration project given existing
experience in being able to achieve three-
The IRG first met in March 2014 to provide
storey apartment buildings at approximately
guidance on key project decisions such as the
$1800 per m² (GST inclusive).
target square metre rate and the height of the
proposed building. As part of the scope, Renewal SA resolved
that if the project achieves the right price
“What we did”
and the right design, Renewal SA would
then determine the method of delivery for
5. Project Scope
construction.
The demonstration project was managed by A site in Renewal SA’s project, The Square at
Renewal SA and involved the selection of a Woodville West, was chosen as it represents
builder partner and a design partner from the a typical middle ring suburban location within
private sector. Following a public expression metropolitan Adelaide.
of interest (EOI) process run by Renewal SA in
mid-2014, multi-award-winning firm Mossop Since the completion of the public EOI
Construction + Interiors was appointed as process in September 2014, the project
the builder partner and leading Adelaide team has completed the research and
architectural firm Studio Nine was chosen as design documentation phase by June 2015,
the design team leader. culminating in this report. Following all
necessary statutory approvals, construction
The project scope comprised the following of the apartment building began in November
four stages: 2016 and is scheduled for completion in late
2017.
^ Stage 1A (builder partner selection):
first EOI process to select a preferred 6. Total project construction cost
Proponent with the expertise and capacity
to build a residential apartment building at For the purpose of the demonstration project,
Renewal SA’s Woodville West development. total project construction cost is defined as:
^ Stage 1B (design team selection):
The combined cost of site works; at-grade car
second EOI process to select a design team
parking; building services and infrastructure;
including civil, structural and mechanical
building cost; landscaping; builder’s margin
engineering specialists and other relevant
and overheads and including GST. The total
construction consultants.
project cost excludes design and consultants’
^ Stage 2 (research and design fees.
development phase):
collaborative stage between builder
partner, design team and Renewal
SA requiring extensive research and