Understanding Costs and Identifying Value in Mass Timber Construction: Calculating the ‘Total Cost of Project’ (TCP)
With any new technology introduced to market there is often an education process for industry stakeholders to understand the benefits. The present paper sought to explain the difference between ‘costs’ and ‘value’ in Mass Timber Construction (MTC). Specifically, the paper focuses on what has been termed the Total Cost of Project (TCP), in which the value (benefits) of using MTC technologies — such as Cross Laminated Timber (CLT) and Glue Laminated (GluLam) beams and columns — is quantified and offset against material costs in a pure cost-versus-cost calculation commonly used in traditional construction estimation/quotation. The quantification of ‘value’, as defined by various stakeholders along the supply chain, is seen as an opportunity to demonstrate the holistic advantage of MTC. The present paper provides a worked example looking at the cost and value of using MTC for the builder, as stakeholder, TCP of a mid-rise apartment complex in Australia. The analysis identifies a productivity gain, resulting in a 30% reduction in duration on site, ultimately resulting in reduced risk exposure and time related costs compared with traditional concrete construction.
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