High construction and capital costs are prompting some multifamily developers, particularly those focused on mid-rise buildings in secondary and tertiary markets, to delay their projects.
However, companies in the supply chain that specialize in industrialized approaches to construction, such as off-site prefabricated cold-formed steel (CFS) framing, have developers reassessing traditional construction methods. These developers are reconfiguring their approaches to include more prefabricated and pre-assembled building systems, which saves them time and money in the construction of their structures.
Just a few workers for Tori Contracting, an SFIA member, install the company’s prefabricated panels on a job site. Prefabricated steel-framed panels can decrease reliance on skilled labor and optimize costs. Image Credit: FRAMECAD
What is Industrialized Construction?
In the steel framing segment of construction, an industrialized approach typically involves a specialty firm purchasing raw steel coils, converting that steel with equipment and software into studs and joists at a factory and then delivering the pre-packaged framing kits to the job site for assembly and installation, says the Multi-Housing News article, Making Pro Formas Pencil by “Going Industrial.”
“Steel studs mean that the developer no longer needs to build an expensive, concrete-and-steel podium. Not having to cut drywall and wooden studs on site saves a significant amount of time and material waste,” says Aksel Solberg, AIA, NCARB, head of the development design studio for HFA Architects + Engineers. “And because those prefab steel studs are classified as noncombustible, the project’s insurance premiums are a fraction of those associated with conventional stick-framed [wood] construction.”
Because prefab steel studs are classified as noncombustible, the insurance premiums are a fraction of those associated with wood framing.
Industrialized construction methods, which can include the prefabrication of building components such as wall systems, “are not exactly synonymous with modular construction,” Solberg says.
Instead, industrialized construction “centers on the aggregated benefits of taking an upstream approach to the supply chain,” Solberg says.
The specialist company serves as a central procurement hub for precut or prefabricated steel-framed walls, electrical panels, plumbing supplies and HVAC equipment, says Solberg.
“There can be cascading benefits to the resulting schedule efficiencies,” Solberg says. “In an industrialized approach, the developer’s single procurement contact relies on strong relationships with suppliers of standardized equipment to source project components with shorter lead times and deliver and install them faster.”
The Steel Framing Advantage
Cold-formed steel (CFS) leads the way as the preferred framing material for prefabricated structures for multiple reasons. CFS is:
- A pre-engineered material that can be cut to exact lengths
- Dimensionally stable and does not expand or contract with changes in moisture content
- Lightweight compared to wood and concrete
- Resilient and will not warp, split, crack or creep when exposed to the elements
- Sustainable and 100% recyclable
- Durable and has a high tensile strength
- Noncombustible and is a safeguard against fire accidents
Save $40,000 for Every $1 Million in Carrying Costs
For smaller multifamily developers, traditional construction involves high costs for a concrete-and-steel podium topped with wood framing.
However, a developer can use prefabricated CFS components and precut drywall to save time, cut waste and reduce builder’s risk insurance costs.
Noncombustible steel framing enhances the supply chain by offering a steady supply, accelerated timelines and design flexibility. Image Credit: FRAMECAD
The use of noncombustible steel studs lowers the project’s insurance premiums compared to conventional wood framing, says Solberg.
An accelerated schedule made possible by the industrialized construction approach can save up to $40,000 for every $1 million financed in carry costs alone, says Jason Steele, president, CEO and cofounder of specialty firm Industrialized Construction Solutions.
In large industrialized projects with panelized structures made with cold-formed steel (CFS) framing, the initial risk insurance savings can amount to seven figures.
Free On-Demand Course: Panelization for Cold-Formed Steel Wall Systems
To learn more about the advantages of panelized construction, register for a free on-demand course, SFIA 108: Panelization for Cold-Formed Steel Wall Systems.
In this course, Pat Ford, P.E., technical director of the Steel Framing Industry Association (SFIA), explains the types of CFS panel systems available, their advantages over stick framing and other systems that interact with the wall system. The course is registered with AIA CES. AIA member participants will earn 1 HSW LU upon course completion.
Additional Resources
- Six Unmatched Advantages of Cold-Formed Steel Framing in Modern Construction
- Prefabricated Steel Framing Drives Cost-Efficiency, Reduces Labor Expenses
- 5 Ways Steel Framing Optimizes the Construction Supply Chain