Increasing demand for adequate housing delivery requires ensuring sustainability performance whilst meeting housing supply targets. The integration of circular economy (CE) principles in offsite housing projects (OHPs) offers a holistic solution to the dual challenges of housing demand and sustainability. However, such an innovative shift presents new challenges like cost-related uncertainties and impacts on stakeholders, especially clients, developers and project teams in the offsite housing ecosystem. The purpose of this paper is to investigate the costs associated with integrating CE practices in the OHP lifecycle towards their effective management and optimisation.
Adopting a qualitative approach, this study uses focus group discussions and interviews to gather insights from purposively selected stakeholders with expertise or are experienced in CE, Offsite construction, sustainability, cost and project management. The data collected were thematically analysed.
The findings of this study highlight seven R-imperative cost factors and cost centres and 34 associated cost drivers which were used to conceptualise a circularity cost framework towards managing and optimising costs throughout the OHP life cycle.
This work presents a circularity cost framework for OHPs. This study contributes to bridging the knowledge gap in circular construction economics and offers practical insights to key stakeholders including clients, project teams and developers towards developing appropriate strategies for managing and optimising costs while transitioning to circular models.
