House-Building Business Models and Off-Site Construction Take-Up

Abstract

The potential benefits of off-site construction have been widely reported. However, its take-up in U.K. construction has been less than hoped. Previous studies have contributed solutions to accelerating take-up of off-site technology, albeit few examined the issue in business contexts. This paper presentes a novel approach to addressing off-site construction take-up in relation to business models. It reviews the challenges facing U.K. house-building business, maps conventional and emergent business models, and identifies factors capturing and creating value, centering on process and activities, risks, and finance. In the United Kingdom, house building is often decoupled from contracting, instead focusing on land acquisition, in response to the dominance of land-use planning. The competitive edge potentially available from technological innovation is often rendered less important or prevalent. However, exemplars do exist regarding incorporating off-site construction into house-building business strategy and adapting or creating business models to optimize such an approach. This paper presents a conceptual model to help illustrate the multifaceted relationship between business models and off-site construction, which is examined drawing on a number of case studies of large U.K. house builders, the findings of which should help position future enquiries.