Tom Hardiman Executive Director
By now, many of you have heard about the recent set-backs on
the modular high-rise project in Brooklyn, known as B2, Atlantic Yards, or
Pacific Park, after its summer rebranding. Slated to be the tallest modular
building in the world when completed, the project has been plagued by lawsuits,
delays, and now cost overruns. Before we all give up on modular construction
and go back the “the way we’ve always done it” let’s consider a few things:
By virtually any source, the level of productivity within
the construction industry has been flat (or according many, declining) for the
past forty years. This is despite significant gains in other industries over
the same period. There are several reason for this decline including a lack of
innovation and investment in research. Many construction companies are small
and don’t have the capital or time to invest in new technologies, ideas, or
research. So when new ideas come along, the industry gets defensive and rallies
to protect the status quo. The construction industry FEARS change!
Modular construction is not a radical new idea. It has been
successfully used for decades by some of the best known companies and for some
of the most iconic buildings ever constructed. Using modular construction in
the 1960s, Zachry Construction built the 21-story Hilton Hotel in the San
Antonio Riverwalk, still in use today. That structure remains the tallest
modular building in North America. Disney used modular construction for its
legendary Contemporary and Polynesian resorts in the early 1970s. Since then,
countless other owners, developers, and franchisees have successfully
incorporated modular construction into their projects.
So why the fuss now? Neither Forrest City nor Skanska are
members of the Modular Building Institute so we cannot speak on their behalf;
nor can we speak to the specifics of what is happening on this project. But we
can ask, “Would these cost overruns still have happened if the project were
built conventionally?” Are these problems attributable to modular construction?
Or more likely due to some combination of poor communication, poor planning, a
lack of experience with modular, and failed execution?” These problem would
spell doom any project!
As the spokespeople for the modular construction industry
what we can say is: When executed properly, this process is more
resource-efficient and reduces the overall construction schedule compared to a
comparable site-built project, period!
What we do know about this project is that it was
“unconventional” even for the modular industry. The developer chose to create a
new modular company with the contractor, rather than working with established
and experienced modular manufacturers (including one located in Brooklyn).
The team also decided to have the steel “shells” fabricated
over 400 miles from the site, shipped to another facility in Brooklyn for
finish-out, then transported to the final location for installation. This
decision no doubt added to the costs, logistics, and time.
We also know that the established construction industry
“greeted” this project with nothing but obstacles, lawsuits, and challenges at
every step in an effort to protect the status quo.
As a side-note, as B2 sits right now, unfinished, this is
STILL the tallest modular building constructed in North America in the last 40
years! Forrest City should still be considered an innovator and a leader for
being bold enough to propose constructing the tallest modular building in the
world in an industry and location not generally conducive or accommodating to
new ways of thinking.
To quote Henry Ford, “One who fears the future, who fears
failure, limits his activities.”
Source: LinkedIn
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