Skanska has been awarded a $294,100 Wood Innovation Grant from the US Forest Service to lead a project addressing insurance-related risks for mid- and high-rise mass timber buildings in the US.
The grant supports a 2.5-year programme entitled “Tall Mass Timber Insurance Case Study & Project Guide,” which aims to close knowledge gaps in the builders risk insurance process for mass timber construction.
Industry data and Skanska’s own findings indicate that builders risk insurance for mass timber projects is currently 25% to 65% higher than for conventional concrete and steel construction.
Industry norms reflect insurance rates at 0.25% to 0.40% of the total construction cost for typical mid-rise concrete or steel projects.
Mass timber Type IV buildings, however, often face rates between 0.45% and 0.80%.
On a $100m Type IV project, this equates to $450,000 to $800,000 in insurance costs compared with $250,000 to $400,000 for equivalent concrete or steel buildings.
Although changes to building codes now allow taller mass timber structures, Skanska noted that an insurance gap remains, potentially introducing financial uncertainty late in project development.
The company will work with a group of industry partners to develop standardised documentation and practical tools intended to support more predictable underwriting and facilitate broader market adoption of mass timber for mid- and high-rise applications.
Skanska USA Building mass timber and prefabrication director Dean Lewis said: “We are so thankful to the Forest Service and USDA for this grant. Their funding is instrumental in our ability to help move this industry forward and continue to grow the use of wood and wood products in construction.”
The project joins Skanska USA Building with Gallagher Insurance Brokers, Mithun, Holmes Engineering & Holmes Fire, Waugh Thistleton Architects, and WoodWorks.
The resulting guidance will be made available to industry stakeholders through WoodWorks.
