Constructing Affordable Homes: Bridging the Gap in Construction Costs
Written by: Nadine Oberhuber
Minutes: Approx 2
Lower construction expenses - these cost-cutting suggestions have been in discussion for quite some time - Proposals for Lowering Construction Expenses Already Presented by the Commission
The freshly-elected government is making headway in cutting construction costs, paving the way for innovative development projects. The ever-rising housing prices are squeezing buyers and renters, making it increasingly difficult to afford a dwelling. And while it's still early days, solid proposals for attaining this goal are already available.
- Housing markets
- Bureaucracy
- Building costs
- Real estate
Hallmarks of the Strategy
To close the affordable housing gap, several strategies should be implemented to streamline bureaucracy and reduce building costs. Here's a breakdown of the key components:
Easing Bureaucratic Red Tape
- Reforms to Regulations: Simplify and streamline building codes, bringing consistency to building practices and making compliance more cost-effective. Utilize digital platforms to automate permit and approval processes.
- Adoption of BIM Standards: Adopt BIM (Building Information Modeling) frameworks like ISO 19650 to promote collaboration and data management across projects. This reduces misunderstandings that can prolong timelines and inflate budgets.
- Pre-Approval Processes: Encourage pre-approval of construction aspects, such as specifications and designs, to quicken project approvals and enhance overall efficiency.
Lowering Building Costs
- Boosting Supply Chain Efficiency: Enhance supply chain management to prevent delays in material delivery, thus minimizing associated costs. Investment in logistics and procurement technologies can help achieve this.
- Attracting Skilled Labor: Implement incentives and training programs to entice more skilled labor into the construction industry, addressing the ongoing labor shortage.
- Optimizing Insurance Coverage: Utilize tailored Inland Marine insurance coverages to protect against unanticipated losses and guarantee proper coverage for equipment and materials, mitigating costs during the building process.
- Standardizing Construction Practices: Foster consensus around standardized construction standards to eliminate inconsistencies in building codes, reducing costs due to additional work or disputes.
- Incorporating Efficient Technologies: Embrace innovative construction techniques, like prefabricated and modular building methods, to slash on-site labor costs and improve efficiency.
By employing these strategies, the construction affordable housing gap can be effectively addressed, leading to more affordable and efficient homes in the market.
The Commission, in its efforts to address various issues, has also adopted a proposal for a directive on the approximation of the laws of Member States relating to the protection of workers from the risks related to exposure to carcinogens in the industry, finance, and business sectors. With the government focusing on cutting construction costs, it is essential to optimize insurance coverage in construction to mitigate costs, which can be achieved by incorporating tailored Inland Marine insurance coverages.
