16 September 2019

Fastbrick Australia enters into Building Pilot Program Agreement with Archistruct

Building Pilot Program commenced with Archistruct Builders & Designers
Three stage agreement in place representing first revenue for Fastbrick Australia

FBR is pleased to advise that Fastbrick Australia has entered into a Building Pilot Program Agreement with Western Australia builder Archistruct Builders & Designers. Fastbrick Australia is the joint venture company established with Brickworks Building Products Pty Ltd offering Wall as a Service® (WaaS®) to the Australian market.

The Building Pilot Program Agreement with Archistruct consists of three stages. The first stage is a Demonstration Stage under which Fastbrick Australia will supply WaaS® for between five and 12 house structures on FBR premises using a range of designs supplied by Archistruct. Each of these structures will be subject to inspection, assessment and reporting by both Archistruct and independent consultants to ensure they meet the relevant building standards.

Any time between the completion of the fifth house structure and the twelfth house structure, Archistruct can determine that the Demonstration Stage is complete, and the next stage of the Building Pilot Program Agreement will commence, which is the Display Home Stage.

In the Display Home Stage, FBR and Archistruct will enter into a contract under which Archistruct will build a display home using Fastbrick Australia's blocklaying services, with the display home to be purchased by FBR. If the parties do not enter into this agreement within three months of the completion of the Demonstration Stage, the remainder of the Building Pilot Program Agreement may be terminated. After completion of the display home, FBR will open the home to the public and to the current and potential collaborators, suppliers and customers from international markets to demonstrate and promote the use of the Hadrian X® in residential home construction.

The third stage of the Agreement is the Builder's Project Stage, in which Archistruct will engage Fastbrick Australia to supply WaaS® for a single storey residential structure under a building contract with a homebuyer. This engagement can be entered into as soon as the Demonstration Stage is completed, and up to a maximum elapsed time of 24 months from the completion of the Demonstration Stage.

Fastbrick Australia will be paid for each of the structures built under the Building Pilot Program Agreement at the prevailing market rate for bricklaying services in Western Australia, representing first revenue for Fastbrick Australia.

The Building Pilot Program Agreement with Archistruct allows FBR to demonstrate to a customer the speed, accuracy, safety, quality, waste profile and reliability of the Hadrian X® construction robot in a low-risk environment, as well as the performance of the new Hadrian-optimised blocks developed and supplied by Brickworks. Fastbrick Australia intends to enter into similar pilot program agreements with other WaaS® customers as part of its commercialisation strategy.

The Building Pilot Program with Archistruct is an important first step for the Fastbrick Australia joint venture, generating first revenues under the WaaS® commercial model. An important part of the Building Pilot Program is that it helps to inform Archistruct about how the Hadrian X® and WaaS® impacts and improves the broader building process for residential homes, and enables them to prepare their business model and processes for the new world of robotic construction. We are glad to have them on the journey with us as the first builder to have purchased a series of robotically constructed wall structures of varying designs.

- Simon Amos, Chief Executive Officer - Australia

We are delighted to be the first builder in Australia engaged in a Building Pilot Program for WaaS® using the Hadrian X®. We see robotic construction as a big part of the future of the industry, and we are excited to be working with Fastbrick Australia and are looking forward to delivering the world's first brick homes built using an on-site autonomous bricklaying robot. Being a part of the Building Pilot Program also gives us an opportunity to understand, plan for and maximise the benefits of robotic construction, and to make sure our people have the right information and skills ahead of the industry's transition to more high-tech operations.

- Domenic D'Agnone, Archistruct Director

Read the full ASX announcement