Modern Methods of Construction

Evolution or Revolution?

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Modern Methods of Construction

Evolution or Revolution?

Modern Methods of Construction

Evolution or Revolution?

BURA
BURA was formed in 1990 to provide a forum for the exchange of ideas, experience and
information for the emerging regeneration sector. BURA has now become the leading
independent organisation in the field of regeneration. Our strong and influential membership
reflects the growing knowledge and expertise that BURA has at its disposal. We are seen by
the private sector, the public sector, the not-for-profit sector and government departments
alike as a key organisation within the whole area of regeneration.

BURA Steering and Development Forum

The Steering and Development Forum (SDF) is BURAs cross-sectoral think-tank consisting
of business, public sector and not-for-profit/community organisations, drawn together by a
common interest in, and experience of, urban regeneration. The SDF was established in 2001
with the specific aims of informing and responding to government policy, as well as facilitating
long-term research ventures. Focused primarily on delivery and implementation, the SDF
plays a key role in breaking down the barriers to regeneration.
The SDFs partner organisations are:

Argent Group
Berkeley Partnership Homes
Berwin Leighton Paisner
Bevan Brittan
The Chief Executives Forum of Englands Regional Development Agencies
EC Harris
English Heritage
English Partnerships
Groundwork UK
Halifax Bank of Scotland
Lend Lease
London and Continental Stations and Property
National Association of Councils for Voluntary Service
National House Building Council
National Housing Federation
Taylor Woodrow
Tesco

Modern Methods of Construction

Evolution or Revolution?

Modern Methods of Construction

Evolution or Revolution?

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Modern Methods of Construction

Evolution or Revolution?

Modern Methods of Construction

Evolution or Revolution?

Contents
Page
Acknowledgements

Glossary of Terms

10

1.

Executive Summary

12

2.

Introduction

14

3.

Drivers Towards Modern Methods of Construction

Policy Context
Construction Industry Skills
Housing Quality

15

4.

Overcoming the Barriers

Cost
Demand
Rate of Delivery
Design Considerations
Lenders and Insurers

21

5.

Conclusion

28

6.

Bibliography

29

Modern Methods of Construction

Evolution or Revolution?

Acknowledgments
BURA would like to thank the following individuals for their assistance in the production of this
report:

Peter Caplehorn - Technical Director, Scott Brownrigg

Rob Cassab - Operations Director, First Base Ltd
Mehban Chowdery - Head of Social Housing, NHBC
Jason Essenhigh - Head of Compliance, English Partnerships
Jan Hellings - Director, Dr Jan Hellings and Associates
Joe Isle - Director of Strategic Developments (Northern), Taylor Woodrow
Nick Johnson - Development Director, Urban Splash
Steve Neal - Senior Project Manager, Lend Lease
Peter Ralph - Regional Director, Peter Brett Associates
Andrew Scoones - Manager, The Building Centre Trust
Chris Stalker - Senior Development Manager, Urban Splash
Dr Jurek Tolloczko - Business Manager, Corus
Nick Whitehouse - Chairman and Managing Director, Terrapin Ltd
Professor James Woudhuysen - Professor of Innovation, De Montfort University

This paper does not necessarily represent the views of the any of the contributors, nor the
organisations they represent.

About the Authors

Simon Burwood, as BURAs Research and Policy Director, oversees the research and policy
programme of the Associations Steering and Development Forum think-tank. Previously,
Simon co-authored Learning form Experience: the BURA Guide to Achieving Effective and
Lasting Regeneration with Professor Peter Roberts, now Chair of the Academy for
Sustainable Communities. Simon holds a Masters degree from the London School of
Economics in Cities, Space and Society, having previously read Geography as an
undergraduate at the University of Nottingham.
Paul Jess is a Researcher for BURA'
s Steering and Development Forum. Paul graduated
with a degree in History from the University of Warwick in 2002. Previous BURA reports he
has contributed to include Delivering in the Growth Areas: Overcoming the Barriers to
Regeneration and Procurement in Urban Regeneration: Accountability, Shared Vision and
Partnering. Prior to joining BURA, Paul worked for Haymarket Conferences researching
events for Regeneration & Renewal magazine.

Modern Methods of Construction

Evolution or Revolution?

Modern Methods of Construction (MMC) are defined as those which

provide an efficient product management process to provide more products of
better quality in less time. It has been defined in various ways: pre-fabrication,
off-site production and off-site manufacturing (OSM). But while all OSM is
MMC not all MMC is OSM. It can be classified in various ways and may
involve key services (e.g.) plumbing, key items (e.g. foundations) inner shell
(walls etc), external walls, or any combination of these elements. It can also
be classified by material (timber, steel, concrete and masonry).

Home Builders Federation

Modern Methods of Construction

Evolution or Revolution?

Glossary of Terms
Modern methods of construction fall into the following categories:
1. Off-site Manufacture (OSM): The part of the production process that is carried out away
from the building site in factory conditions. Examples include:
a) Panel Building Systems: These comprise of walls, floors and roofs in the form of
flat pre-engineered panels that are erected on site to form the box like elements of
the structure that then require various levels of finishing. The most common approach
is to use open panels or frames which consist of skeletal structure only with services,
insulation, external cladding and internal finishing occurring on-site. Another system
that is used frequently involves closed panels. These are more complex, involve more
factory fabrication and may include lining materials and insulation. Types of panel
systems build include timber frame and steel frame, both of which usually consist of
prefabricated load baring panels. These are then fitted on-site with the insulation and
other features subsequently installed on-site.
b) Volumetric (also known as Modular Construction): Units are used to form the
structure of the building, thereby enclosing the usable space. Typically, modular
construction means that between 80 to 95 per cent of the building-comemanufacturing process is completed at the factory and then delivered to the site for
final assembly. This process involves connecting the completed modules to each
other on site. There is no requirement for any additional supporting superstructure.
Modular construction is often used on larger, more standardised schemes due to the
economies of scale of many similar sized modules and the discernable benefit of
reduced construction times. Prefabricated modules are often referred as pods and
are factory finished internally, complete with mechanical and electrical services. Pods
are available in timber frame, light-steel frame, hot rolled steel frame, concrete or
GAP superstructure and are mainly used in more specialised areas that can be
standardised and repeated, such as kitchens and bathrooms.
c) Hybrid (also known as Semi-Volumetric): This method combines panellised and
volumetric methods of construction and frequently includes the use of pods. The
hybrid approach can be used to bring flexibility to the development and can also
reduce uniformity of design.
d) Sub-Assemblies and Components: These methods, although predominantly
traditional, utilise factory fabricated sub assemblies or components. This includes
floor or roof cassettes and pre-cast concrete foundation assemblies.
2. Non Off-site Manufacture: This approach encompasses building techniques and
structural systems that cannot be placed in the category of off-site manufacture. The main
characteristic of these methods is that of innovation. This could be through an innovative non
OSM building technique or through the use of a method of construction that has been used in
other industries, but not house building. By way of illustration, examples of non OSM include:
a) Tunnel Form: Tunnel form is evolving into one of the most frequently used
methods of cellular construction as its cost effectiveness, productivity and quality
benefits are being realised on a variety of developments. Tunnel form is particularly
suitable for repetitive cellular projects such as hotels, apartment blocks and student
accommodation. Structures of up to 40 or more storeys in height can be built using
this technique. Tunnel form simplifies the construction process by making possible a
smooth and quick operation that can result in costs being reduced by 15 per cent and
time savings of up to 25 per cent1. During the tunnel form construction process, a
1

CONCRETE CENTRE, 2004.High Performance Buildings: Using Tunnel Form Concrete Construction: Concrete
Centre, p.2

10

Modern Methods of Construction

Evolution or Revolution?

structural tunnel is created by pouring concrete into steel mould known as a

formwork) to form the floor and walls. Every 24 hours, the formwork is moved so that
another tunnel can be created. Once a storey has been completed, the process is
repeated on the next floor.
b) Thin-Joint Masonry: Thin-joint masonry is a quick, clean and accurate method
that utilises aircrete blocks, which are manufactured to extremely precise standards in
terms of size and shape, and a thin layer of mortar. Thin joint combines reduced build
times with greater flexibility of aircrete construction, such as ease of handling,
working and finishing. It can also result in cost savings, facilitate improved build
quality and reduce wastage.
Other significant areas include carpet reinforcement and load bearing faced systems, through
to process and schedule improvements such as metal shutters, core jump systems, double
jumping cores, edge protection systems, service walls, and light weight facades.

11

Modern Methods of Construction

Evolution or Revolution?

Executive Summary

1.1

The Barker Review of Housing Supply observes that at the present time, traditional brick and
block methods of construction remain cheaper, in many cases than modern methods of
2
construction . Despite this, modern methods of construction (MMC) potentially offer a wide
range of advantages to those operating in construction, including developers, as well as those
organisations charged with delivering and implementing policy. Modern methods of
construction allow for innovation. This is of the utmost relevance as, if the ambitious housing
targets of the Sustainable Communities Plan are to be realised, it is clear that new thinking
and approaches are needed to facilitate development.

1.2

However, a number of barriers will need to be overcome if the application of MMC is to

become prevalent. In terms of consumer confidence, a patchy track record dating back to the
1960s of pre-fab and system-build approaches will need to be overcome. Whilst such terms
are perceived negatively, confidence exists across the regeneration sector that modern day
consumers are more concerned with good design, aesthetics and character than construction
methods. Whilst there is optimism on this front, there exists a more substantial barrier in the
form of mortgage lenders and insurers as both sectors remain sceptical about the long-term
viability of MMC. Whilst progress is being achieved in this respect, it is lagging behind and
hence hindering the more innovative and instinctive approach of the development industry.

1.3

The outward branding of modern methods of construction is an area that merits further
thought. Although one could argue quite reasonably that it is simply a superficial exercise in
semantics, there is an argument for referring to the most functional and commonly applied
building techniques, whether traditional or modern, as best practice methods of construction.
This could help overcome the stigma associated with factory-based construction methods. In
reality, the construction industry has always been marked by an ongoing evolution in the
techniques it applies. Furthermore, the argument can be made that those approaches
defined as MMC involve nothing more than the use of existing and established materials and
techniques in more modern and efficient ways.

1.4

The advantages of using MMC are many and numerous. Illustrating this, there currently
exists, as highlighted by Egan3, a shortage of skills within the construction industry, both in
terms of on and off-site professions. On-site this dearth of appropriate skilled labour
frequently results in unacceptable problems, particularly in terms of roofing. Off-site
manufacturing techniques, as they are factory based, offer better potential to ensure high
functional and design quality standards. This said, with the exception of full volumetric
systems, the application of MMC is reliant on skilled workers installing the units appropriately.
Failures in his regard would undermine their use. The training of a substantial and capable
workforce is of great importance to the future success of MMC. As with traditional methods of
construction, MMC are reliant on the availability of appropriate skills.

1.5

At present, the narrative to be attached to modern methods of construction is one of potential.

Critical mass needs to be achieved in terms of generating economies of scale. In the
meantime, much remains to be learned in terms of capitalising on the benefits they can offer.
There are significant environmental benefits that could be derived in terms of energy
efficiency and waste reduction. Other problems such, as soundproofing and thermal
performance, must also be addressed. Furthermore, greater thought is required as to the
types of projects for which MMC represent a solution. For example, this papers suggests that
MMC are of greater relevance to the provision of affordable housing for rent, in terms of
reducing disruption and overcoming waiting-lists, as opposed to private housing, where the
advantages of rapid construction are less useful because other factors determine the rate of
transactions in the market. However, there are areas where other advantages of MMC (such
as environmental performance) will drive their application. Illustrating this, in the health and
2

BARKER Kate, 2004. Review of Housing Supply, Delivering Stability: Securing our Future Housing Needs. Final
Report and Recommendations: HM Treasury, p.113
3
EGAN John, 1998. Rethinking Construction: Office of the Deputy Prime Minister

12

Modern Methods of Construction

Evolution or Revolution?

education sectors, where standardised products and the need for uniformly high performance
standards are requisites, the employment of MMC is wholly appropriate.
1.6

Undoubtedly policy will play a key role in establishing modern methods of construction as a
viable approach to developing sustainable communities. Both English Partnerships and the
Housing Corporation, through various mechanisms and initiatives, are promoting the use of
MMC. Such intervention is necessary in order to support nascent, although increasingly
extensive, private sector research and development programmes. To this end, a sufficiently
sizeable marketplace for MMC must be established and guaranteed over a prolonged period
of five to ten years in order for the private sector to consider investment in MMC as
worthwhile. Only in this way will all-important economies of scale be achieved. Small and
individual developments that come forward in an ad hoc manner will not sustain the
application of MMC. The creation of fiscal incentives to encourage research into, and the
application of, MMC should be considered by policymakers. Whilst a persuasive evidence
base, one way or the other, does not yet exist in this regard, this is an area that should be
explored.

1.7

Nonetheless, it seems the construction sector is on the cusp of a rapid acceleration in the
application of MMC. Substantial benefits exist to be accrued and it is likely the private sector
will be incentivised to realise these advantages. In the coming years it is probable that the
London 2012 Olympics, which necessitate rapid delivery, in tandem with increasing concern
over climate change the construction industry is a major consumer of natural resources
will catalyse the use of MMC in the United Kingdom.

1.8

Key Findings and Recommendations

Modern methods of construction offer predictability, value, improved health and

safety, speed and greater efficiency in terms on minimising waste.

Some areas of concern remain to be overcome. These include thermal mass

issues; acoustics; the longevity and durability of MMC solutions; and the potential
for systemic failures.

Whilst the public sector is currently engaged in generating momentum to support

the more frequent application of modern methods of construction, a stance which
is to be welcomed, this ought not be understood as implying that all new
techniques are, by default, best practice and therefore superior to traditional
approaches.

There is no need to segregate best practice in terms of traditional methods from

best practice involving modern methods of construction. Both industries overlap
and should work together to ensure best quality design for the particular
circumstances. To this end, there is a need for a united front that allows both
modern methods of construction and traditional approaches to operate separately
but then unite under the banner of innovation and best practice.

If this mindset can become widely accepted, it would help overcome some of the
greatest barriers to the use off MMC, two of which are resistance to change and a
fragmented construction industry that perpetuates division. It is imperative that
MMC are regarded as an evolution of current and past techniques that do not
necessarily threaten traditional methods, but in fact offer huge opportunities in
terms of hybrid approaches to construction.

In terms of the future employment of modern methods of construction, there are

market sectors such as education and healthcare in which repetition of products
and need for harmonised performance standards are commonplace. Such sectors
must be explored as modern methods of construction are particularly apposite for
delivering standardised products (at potentially excellent value).

13

Modern Methods of Construction

Evolution or Revolution?

Introduction

2.1

Modern methods of construction (MMC) is a term recently adopted by the Housing

Corporation and the Office of the Deputy Prime Minister as a collective description for both
off-site based construction techniques and innovative on-site technologies. Collectively,
modern methods of construction provide excellent potential for the regeneration sector to
improve the delivery of large-scale projects in terms of efficiency and cost. As a result,
policymakers have recognised that the use of modern methods of construction should be
encouraged in order to both facilitate and stimulate house-building. Much research is currently
being undertaken into the application of modern methods of construction and the usefulness
of each of the differing techniques vis--vis building homes. In response to the call in Barker
Review of Housing Supply for research on the barriers to using modern methods of
construction, the Home Builders Federation, in conjunction with NHBC and others, has set up
the Barker 33 Steering Group to explore the salient issues with a view to identifying solutions.

2.2

It is important for the regeneration industry to recognise the opportunities and challenges that
modern methods of construction present to the sector. To this end, BURAs Steering and
Development Forum has commissioned this research to evaluate the drivers that are
prompting interest in, and greater use of, modern methods of construction. This report also
explores the key issues that must be addressed in order for modern methods of construction
to be applied more widely across the regeneration sector in the future. With this in mind, both
current government policy and the development of new techniques by the private sector are
examined in terms of how they are incentivising the use and advancement of MMC in
regeneration. This paper also considers how a shortage of skills in the construction sector, in
tandem with increased demand for high quality housing, could provide the impetus for modern
methods of construction.

2.3

The second part of this report examines the key issues associated with modern methods of
construction in terms of potential cost savings, demand, speed of construction and design
quality. It seems the key question to ask at the current time is whether or not modern methods
of construction are sufficiently advanced to provide viable construction options that can be
utilised by the regeneration sector towards the delivery of Sustainable Communities
objectives.

2.4

It should be noted that this report concentrates on the application of modern methods of
construction in relation to the delivery of new housing. This is the area in which current
debates are focused, particularly given the request in the Barker Review that this area be
explored. However, consensus exists that MMC are applicable in other areas beyond the
provision of housing. By way of illustrating this, it is clear at the present time that new
techniques are applicable to the construction of buildings such as hotels and university halls
of residence.

14

Modern Methods of Construction

Evolution or Revolution?

Drivers Towards the Use of Modern Methods of Construction

3.1

Policy Context
3.1.1

The Sustainable Communities Plan calls for a step-change in the construction of new
housing. The target of an additional 200,000 new homes across the four South East
England growth areas in the next thirty years (on top of current levels of housing
construction) necessitates that new methods for delivering homes at an increased
rate be explored. In this connection, modern methods of construction have been
highlighted in the Barker Review as a possible solution to the conundrum of
increasing production whilst maintaining high quality standards. Furthermore, the
importance of MMC to Government policy is reiterated by the Homes for All five year
plan published in January 2005, the objectives of which are to improve opportunity,
choice and quality for home-buyers.

3.1.2

Recognising that modern methods of construction offer an opportunity for increasing

housing delivery and potentially reducing cost thereby possibly slowing house price
inflation the Government has instigated a number of initiatives to encourage the use
of these new techniques. Illustrating this, the Office of the Deputy Prime Minister has
launched the Design for Manufacture competition in association with English
Partnerships to challenge the construction industry to design and build a low cost
home4. Although the competition does not require bidders to use modern methods of
construction, it was anticipated that many of the entries would utilise new
technologies in their schemes with the effect of stimulating fresh thinking that will act
as a starting point for further research and development. Policymakers believe that
more efficient construction methods can increase the rate of housing supply, facilitate
higher quality design, a better overall standard of product and resource efficiency
both through waste reduction and increased productivity.

3.1.3

The Governments housing agency, the Housing Corporation, is also endeavouring to

promote the use of modern methods of construction by insisting that 25 per cent of its
grant (it has a 3.3 billion investment programme for 2004-06) must be used for
developments that incorporate some form of MMC.

3.1.4

In addition, private sector companies working with English Partnerships in the

Millennium Communities programme are required to use modern methods of
construction. The intention is to encourage house-builders to use new technologies,
adopt higher standards of design quality and utilise more environmentally-friendly
materials to improve resource efficiency. The programme aims to set the standards
that other developments will follow.

3.1.5

Both the Housing Corporation and English Partnerships are aiming to encourage the
private sector to consider modern methods of construction as an option in house
building. In exchange for guaranteeing long term revenue funds through grants and
extended contracts, such initiatives stimulate private sector investment into the
research and development of modern methods of construction.

3.1.6

It seems government intervention is necessary as, without it, there currently appears
to be less incentive for the private sector to invest in modern methods of construction,
or to use MMC as a preferred method of construction. At present, there are not
sufficient cost savings associated with MMC to impact profitability on large building
schemes. In addition, research costs are high. However, insistence by the Housing

Whilst the principal aim of the Design for Manufacture competition is to address rising construction costs, which are
contributing to the lack of capacity and flexibility in the construction and development sectors, the other main
objectives of the initiatives are to (a) demonstrate good design can be achieved in a cost effective manner and (b) to
improve environmental efficient in terms of reducing the average level of waster associated with the construction
industry.

15

Modern Methods of Construction

Evolution or Revolution?

Corporation and English Partnerships on the adoption of MMC has forced the hand of
private sector companies. The effect of this will be the emergence of economies of
scale over time. This will placate the private sector as, once a critical mass is
achieved in the longer term, demand for modern methods of construction will
increase.
3.1.7

As stated above, for modern methods of construction to become a viable option for
private sector companies, economies of scale need to be created to drive down
costs. Given that improving affordability is a primary driver behind the Governments
enthusiasm for modern methods of construction, a path towards mass production
must be found in order that critical mass can be achieved. At present there is a small
number of MMC suppliers. This means it is currently expensive to source materials as
prices are higher than with traditional approaches to construction. It is because of this
that the government instigated initiatives demanding the use of MMC are so crucial in
terms of catalysing their application. As demand for MMC increases, the incentive for
suppliers to boost their production will grow. As economies of scale are achieved,
this potentially will drive down costs, thereby improving further the viability of MMC. It
seems the application of MMC will become self-perpetuating over time to the benefit
of both suppliers and developers.

3.1.8

If economies of scale can be created and the use of modern methods of construction
becomes more commonplace, a scenario will then potentially exist to address the
need for increasing the rate of delivery of affordable homes. Modern methods of
construction can improve the build rates of housing schemes dramatically by
increasing the number of completions over any given period. This will help reduce the
excess of demand for homes in the South East, thereby contributing to achieving the
Governments aim of improving the affordability of house prices.

3.1.9

Other policies that will also increase the viability of modern methods of construction
include the new regulations on sustainability and the environmental impact of housebuilding. Modern methods of construction provide the potential for reducing carbon
emissions produced by building on-site. MMC could also reduce the volume of
material wasted in the production process, particularly if much of the production is
undertaken off-site in factory conditions.

3.1.10 With policy increasingly reflecting concerns over the level of pollution and wastage
created by the construction industry, incentives to use modern methods of
construction should be encouraged. Further incentives could be provided in the form
of tax reductions for those homes built with modern methods of construction. This
would assist in reducing the initial costs, thereby releasing funds that could be
redirected into researching new technologies, the outcome of which, over time, would
make the use of MMC on projects more attractive if advances are made. The
usefulness of fiscal breaks to incentivise research into, and the application of, MMC
should be researched.
3.1.11 New government regulations on housing standards may also provide an impetus to
deliver of new homes using modern methods of construction. Off-site factory
manufacture presents an opportunity for the production of cost effective homes that
will exceed the prescribed quality requirements. Furthermore, manufacturing in a
factory setting has the added advantage of ensuring uniform quality standards. There
has already been an increase in the number of builders considering MMC due to
forthcoming energy regulations as homes built using such techniques typically require
less energy to heat thanks to better insulation in the walls and roof, and also less air
leakage from the building. This said, evaluating the environmental benefits of a new
MMC housing development is complex because it is difficult to attribute outcomes
solely to the use of new techniques as opposed to other factors.

16

Modern Methods of Construction

Evolution or Revolution?

Key Issues

3.2

Government intervention is necessary as, without it, there currently appears to

be less incentive for the private sector to invest in modern methods of
construction, or to use MMC as a preferred method of construction

For modern methods of construction to become a viable option for private

sector companies, economies of scale need to be created to drive down costs.

Modern methods of construction can improve the build rates of housing

schemes dramatically by increasing the number of completions over any given
period. This will help reduce the excess of demand for homes in the South
East, thereby contributing to achieving the Governments aim of improving the
affordability of house prices.

Off-site factory manufacture presents an opportunity for the production of cost

effective homes that will exceed the prescribed quality requirements.
Furthermore, manufacturing in a factory setting has the added advantage of
ensuring uniform quality standards.

Construction Industry Skills

3.2.1

Currently there is a personnel shortage in the construction industry. A Chartered

Institute of Building survey found that over 79 per cent of its members reported
difficulties with recruitment. Furthermore, 91 per cent anticipate a skills shortage
beyond 20055. The Construction Industry Training Board estimates that the industry
needs 88,000 recruits every year for the next five years. This skills shortage will be
exacerbated by the increased levels of construction outlined in the Sustainable
Communities Plan and prestigious large-scale developments, such as the 2012
Olympics, which will absorb significant manpower resources.

3.2.2

In addition to a general shortage in personnel, there is a scarcity of skilled tradesmen,

such as electricians, plumbers and carpenters. The scrapping of apprenticeship
schemes, in tandem with the general lack of interest in taking up skilled building work
as a career, has led to a reduction in the number of skilled workers available to
contractors. This, in turn, will have an effect on the capacity of the construction sector
and could delay the achievement of building targets.

3.2.3

Whilst it is often possible to obtain skilled labour, house builders have reported that it
is challenging to acquire sufficient skilled workers within the intended timeframe of a
development. In addition, the contracts on which these workers are employed often
do not maximise productivity. Furthermore, this scarcity of skilled workmen frequently
causes delays in the fitting out process of new homes and the delivery of high quality
finishes. One of the main complaints regarding newly built homes is the large amount
of snagging that is required once the house is supposedly finished.

3.2.4

The use of off-site manufacturing techniques offers an opportunity to address the

skills shortage in the construction industry. In a factory setting construction can be
standardised and partially automated. In addition, volumetric and hybrid approaches
allow self-contained units such as kitchen and bathroom pods to be built off-site prior
to installation. This allows for a central factory in which a settled and steady workforce
can be developed (in contrast to the traditional footloose nature of construction
workers). Factory construction will assist in the regulation of quality and can provide
better facilities for training new workers. Furthermore, if the potential of off-site
manufacture is fulfilled, the need for skilled workers on-site will decrease. This will
improve the availability of skilled workers for essential projects. However, a balance
must be stuck. Experience has found that the quality of units manufactured off-site

CIOB, 2005. Skills Shortage Survey: Chartered Institute of Building

17

Modern Methods of Construction

Evolution or Revolution?

can suffer if fitted incorrectly by untrained workers. Tradesmen who have experience
of using modern methods of construction have a greater understanding of how to use
the materials and can, therefore, best utilise the advantages such techniques can
bring. Modern methods of construction offer the potential to raise installation
standards and general quality levels within the house-building sector. However, it
must be remembered that unless suppliers offer a full installation service, developers
will still be dependant on sub-contractors for the installation of systems. The skills of
these sub-contractors are vitally important and must be of an appropriate standard.
Failure in this regard would result in the use of MMC potentially becoming blighted by
the same poor standards that can affect traditional building.
3.2.5

MMC, if widely adopted by the construction sector will change the requisite skills set
of the industry. New skills will be required in the production of differing types of MMC,
both off-site an on-site. There will be new jobs for both skilled and unskilled workers.
The use of factories in off-site manufacture will enhance the attractiveness of careers
in the construction industry as it will represent a permanent place of work. Although
more unskilled workers will be employed, there will still be a need for traditional skilled
tradesmen: first, in on-site manufacture and, secondly, in traditional construction
developments and the refurbishment of older buildings. Modern methods of
construction will complement traditional methods of construction and importantly, with
the Governments targets for house building and development in mind, assist in
overcoming the current construction skills shortage.

3.2.6

However, modern methods of construction should not be considered an all-answering

remedy for the shortage of skills in the construction industry. Demand will remain for
traditional, on-site construction skills, and, in time, the need for more, new skills will
become apparent. Although MMC can reduce the pressure on traditional skills-sets,
they cannot completely replace the need for traditionally-skilled tradesmen. This is an
important issue that must not be overlooked. The current skills shortage can only be
remedied if training in both on and off-site methods is provided.

3.2.7

Although modern methods of construction will have a positive impact on production

and delivery, they should not be considered a panacea for the construction industrys
skills shortage. Even with MMC large numbers of skilled workers will be needed in
order to provide high standard homes. Both the construction industry and government
must invest in training new workers as a matter of urgency. There is little value in
promoting innovative methods of construction if the industry is still unable to recruit
staff that are suitably well trained to implement them.

3.2.8

There is some concern that if MMC become more prevalent, in the context of a
market downturn, traditional workers could find less work on construction sites.
Should such a scenario become likely, it will be important that opportunities are
provided for traditionally skilled workers to retrain in order to become familiar with new
techniques, whether it be within factory setting or in connection with applying MMC
onsite.

3.2.9

The use of factory-based off-site manufacture will assist in the improvement of the
construction industrys health and safety record. The construction industry is one of
the most dangerous for workers, with 72 deaths between April 2004 and April 2005 in
the UK6. Modern methods of construction could improve safety as there is a reduced
risk of accidents in a controlled factory environment and less time is spent on the
construction site.

3.2.10 In terms of the skills shortage in the construction industry, there are push and pull
factors at work that will provide the impetus for the utilisation of modern methods of
construction in the regeneration sector. The shortage of skilled workers and
employment costs are making modern methods of construction, especially off-site
manufacture increasingly attractive. In addition pull factors such as improved health
6

SPANSWICK John. 1995. Be demanding - or else. Building. 31 (5 August) p.30

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and safety, increased standardisation and ease of manufacture are adding to the
viability of modern methods of construction.
Key Issues

3.3

The use of off-site manufacturing techniques offers an opportunity to address

the skills shortage in the construction industry. In a factory setting
construction can be standardised and partially automated. In addition
volumetric and hybrid approaches allow self-contained units such as kitchen
and bathroom pods to be built off-site prior to installation. This allows for a
central factory in which a settled and steady workforce can be developed.

Modern methods of construction should not be considered an all-answering

remedy for the shortage of skills in the construction industry. Demand will
remain for traditional, on-site construction skills, and, in time, the need for
more, new skills will become apparent. Although MMC can reduce the pressure
on traditional skills-sets, they cannot completely replace the need for
traditionally-skilled tradesmen. Both the construction industry and government
must invest in training new workers as a matter of urgency. There is little value
in promoting innovative methods of construction if the industry is still unable
to recruit staff that are suitably well trained to implement them.

Housing Quality
3.3.1

Modern methods of construction offer the opportunity to provide high quality homes.
The public perception of the quality of new-build homes is mixed. They are often
regarded as inferior to older, Victorian-age homes. It seems this problem of
perception is not a consequence of a failure in the design of new-build homes as, due
to building regulations and government requirements, the criteria that new build
homes must fulfil should mean that modern homes are of the highest standard.
Rather, new-build homes often compare poorly against older homes because the
regulations and requirements are not adequately fulfilled on-site for a variety of
reasons including the availability of skills and choice of building materials. Given this,
the potential to regulate MMC more scrupulously could result in better new-home
standards.

3.3.2

It is also worth noting there is some evidence that NIMBYs have used concerns over
the use of MMC to further delay the planning process, particularly in opposition to
affordable housing schemes. As discussed in section 4.5 in relation to lenders and
insurers, it seems it would be expedient to articulate the benefits, and associated
issues, of using MMC to local authority planners and planning committees alike.

3.3.3

This said, a note of caution should be sounded regarding the ability of modern
methods of construction to provide better quality homes. There are many different
materials that can be used in the MMC process and the suitability of each must be
intensively scrutinised before a decision is made on which approach to use. The
various options and materials that can be employed have their own strengths and
weaknesses that must be utilised in the correct way. There have been instances
where the wrong material has been used and residents quality of life has been
affected be it through poor sound insulation or design flaws. Furthermore, the
performance of MMC can also be reduced by poor installation. Although such
problems can occur with traditional build, it is important that appropriate MMC are
implemented to a high standard as failure in this regard would undermine their use.

3.3.4

In order to avoid quality issues and potential public relations problems, more research
must be undertaken as regards to the performance of new methods and materials in
order to identify any potential defects. This testing should be accompanied by
validation and regulation. BRE is currently working on LPS 2020, a performance
requirement scheme for MMC. In addition, further research is being carried out by

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Smartlife, a partnership between interested parties the United Kingdom, Germany

and Sweden. The United Kingdom project, based in Cambridge, will build 120 homes,
each with the same footprint and design template, on land provided by English
Partnerships. Four blocks of 30 houses will be built using different construction
methods: brick and block, volumetric, timber frame and concrete. These houses will
then be used to compare and contrast the performance of each material in order to
evaluate their suitability for different kinds of construction projects.
3.3.5

Modern methods of construction, if implemented correctly, offer the chance to

significantly increase the quality and desirability of new homes. MMC also have
advantages in terms of innovation in the design process. This will be a useful
incentive for those seeking new homes and could provide house-builders with
competitive advantages.

Key Issues

In order to avoid quality issues and potential public relations problems, more
research must be undertaken as regards to the performance of new methods
and materials in order to identify any potential defects.

A note of caution should be sounded regarding the ability of modern methods

of construction to provide better quality homes. There are many different
materials that can be used in the MMC process and the suitability of each must
be intensively scrutinised before a decision is made on which approach to use.

20

Modern Methods of Construction

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Overcoming the Barriers

4.1

Cost
4.1.1

It has been argued that modern methods of construction will provide the industry with
a viable method of reducing construction costs. In principle this could prove to be the
case, but a number of factors must be overcome before MMC become a truly cost
effective option. Only when a critical mass is achieved, and there is a significant
move towards the mass production of multiple units, will costs be dramatically
reduced. At present companies are working on a project-by-project basis with
differing specifications on each scheme. This prevents standardisation and the
creation of economies of scale. Currently the number of regeneration schemes being
completed utilising modern methods of construction is insufficient to reduce overall
costs significantly. The application of MMC will need to expand significantly in order
for sufficient cost savings to be possible.

4.1.2

Currently the industry is in a somewhat stymied situation. In order to reduce the cost
of manufacture there needs to be increased take up of modern methods of
construction within regeneration. However, for constructors to fully utilise MMC, costs
need to be reduced. This is where the incentives and policies being pioneered by the
Housing Corporation and English Partnerships are so important in creating more
sizeable markets for modern methods of construction.

4.1.3

Standardisation of components provides an opportunity for the reduction of costs.

However, although uniformity of base components is to be encouraged, the
production of homogeneous structures is to be discouraged as design variations must
be possible to avoid monotony in the urban landscape. Modern methods of
construction should not be used to create uniform developments at low cost. Rather,
MMC should offer the opportunity to create innovative low-cost, well-designed homes.

4.1.4

One of the uncertainties over the profitability of MMC is the long-term cost of
production and development. Standardisation would assist in the reduction of longterm costs, as this would allow the development of a cost effective, mass produced
product that could easily be modified. However, as discussed, caution has to be used
when standardising products in order to prevent uniformity of design and potential
problems if there is a product failure.

4.1.5

Another concern relates to the long-term costs of maintaining products incorporating

MMC, which have not yet been fully researched. Many of the materials used in
modern construction methods are new and untested. At this time it is not clear how
they will perform over a period of twenty to thirty years, or longer. Unforeseen costs
could occur in the maintenance of units built with MMC. Consequently, it is difficult to
evaluate life-cycle costs for projects. Much good work is occurring in this area through
intensive testing of products both by manufacturers and BRE and this will hopefully
yield information that will help with predicting the life-cycle costs of MMC products.

4.1.6

Modern methods of construction often appear more expensive than traditional

methods due to the way in which they are compared. MMC can reduce significantly
whole-life costs, especially if critical mass is achieved and mass production becomes
prevalent. Although initial costs may prove high, future costs could be significantly
reduced if large numbers of units are completed. At present many projects are judged
only on initial start up costs. If long-term costs were taken into consideration the
attractiveness of MMC as a production method of choice would be improved.

4.1.7

Labour costs could be reduced through the use of MMC. In particular, on-site costs
could be reduced as a consequence of the increased speed of construction. Quicker
construction would benefit the builders of apartments as sales only tend to begin after

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a block has been built. Housing associations will also benefit as they could potentially
receive rent earlier.
4.1.8

To reduce the expense associated with MMC, the method of construction to be used
should be considered at the earliest possible stage of development in order to fully
cost projects. The earlier that modern methods of construction can be implemented in
a design, the lower the cost will be as supply chains can be developed and
economies of scale created. If it is decided at a later date to include MMC, costs will
be higher as design changes are made and suppliers are sourced.

Key Issues

4.2

Only when a critical mass is achieved, and there is a significant move towards
the mass production of multiple units, will costs be dramatically reduced. At
present companies are working on a project-by-project basis with differing
specifications on each scheme. Currently the number of regeneration schemes
being completed utilising modern methods of construction is insufficient to
reduce overall costs significantly. The application of MMC will need to expand
significantly in order for sufficient cost savings to be possible.

Modern methods of construction often appear more expensive than traditional

methods due to the way in which they are compared. MMC can reduce
significantly whole-life costs, especially if critical mass is achieved and mass
production becomes prevalent.

Demand
4.2.1

Despite the current need for public agencies to catalyse the application of new
construction technologies, MMC are at an exciting stage of development. The next
few years could see MMC make the transition from a small niche construction option
through to becoming a frequently applied solution within major regeneration projects.
There is a consensus to this end that cuts across the public and private sectors.
Larger private sector firms can now see the potential in using MMC and are prepared
to invest.

4.2.2

Although there are many benefits associated with modern methods of construction,
currently demand is held back by concerns over profitability. The sector is not yet
mature enough to offer large cost savings through economies of scale and the use of
mass production. The potential is evident and if the industry is able to develop, costs
will be significantly reduced.

4.2.3

By necessitating the application of MMC, Housing Corporation and English

Partnerships initiatives will heighten demand for new techniques. This will reduce the
risk to those private sector companies investing in MMC. In the medium to long-term,
the number of new homes required under the terms of the Sustainable Communities
Plan bodes well as a marketplace for the future application of MMC.

4.2.4

Modern methods of construction need champions to outline their benefits to house

builders, constructors and the public. Good work is already being done by Build
Offsite, BRE, the Building Centre Trust and the concrete industry. It is essential the
benefits of MMC are disseminated to a wider audience. Similarly those firms working
in MMC must publicise their products and the potential benefits. Put simply, modern
methods of construction should be developed and marketed in a way that ensures
they are not considered subordinate to traditional methods. In contrast, MMC should
be viewed as an equal partner in the construction process that can complement
traditional approaches.

4.2.5

Similarly, modern methods of construction certainly should not be considered as a

threat to traditional methods of construction. Furthermore, producers of MMC should
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Modern Methods of Construction

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learn from best practice within the traditional sector in order to achieve greater
product efficiencies. In turn, modern methods of construction can be used on-site in
conjunction with traditional methods in order to deliver a development to best effect.
Such hybrid approaches are already in use. Individual units, such as bathroom and
kitchen pods, have already been seen to be of practical value to developers.
4.2.6

The general public, as consumers, should be made aware of the benefits of modern
methods of construction. The most marketable advantages of MMC, such as better
and more innovative design, should be articulated by the industry. Modern methods
of construction should be branded as dynamic and forward thinking. The industry
should not be defensive about the product. Although the failures of innovative
methods of construction in the past are still of concern to some members of the
public, the majority of homeowners are increasingly concerned with quality, design
and cost. The application of modern methods of construction offers the chance to
create inspiring modern homes that homeowners will desire. This potential for designled homes should be capitalised upon in order to ensure homes built using MMC, at
least in part, are a desirable product. Some developers have already taken a lead in
selling MMC as an integral part of their product. Examples include Urban Splash at
MoHo in Manchester and BedZED in Sutton.

4.2.7

Marketing will be an important tool in increasing public demand and acceptance of

MMC. The media is a potentially powerful ally and should be educated on the benefits
of MMC. Successful and innovative projects should be promoted in order to create a
climate of acceptance and enthusiasm for homes built using MMC. In order to dispel
potential media cynicism it is important that all homes incorporating MMC are
thoroughly tested in order to prevent product failures and unfavourable comparisons
being drawn between new techniques and the mistakes witnessed during the 1960s.

4.2.8

Although the number of MMC suppliers remains low, the sector has sufficient
capacity to cope with an increased demand for its products. It is estimated that the
industry is working at 70 per cent capacity and manufacturers expect this to increase
to 80 per cent by 20067. The MMC sector should draw on innovations from other
sectors such as the motor industry and aircraft industry in order to increase
production levels. These sectors have perfected methods of mass production over
time. The lessons learned by these industries ought to be applied to certain aspects
of MMC in order to further raise productivity.

4.2.9

Although capacity can meet demand at present, the construction sector is still
hampered by a lack of skills on site. Any uplift in production will require a
commensurate increase in skilled workers to install products. Without additional
training of workers in the use of modern methods of construction, any increase in
capacity will be wasted, and potentially harmful in terms of reputation, if poor
installation and workmanship become prevalent.

4.2.10 Addressing the logistical challenges of MMC is also important both in terms of
transportation and in the installation of the product, particularly in sites that are
difficult to access. In most cases the delivery of pods, for example, should not be
problematic. Only in exceptional circumstances will the geography of a site pose a
barrier to the use of MMC. Nonetheless, when deciding whether or not to use MMC,
the logistical details of delivering materials to site, which is usually achieved by
employing heavy goods vehicles, must be considered during the planning stages.
Key Issues

The next few years could see MMC make the transition from a small niche
construction option through to becoming a frequently applied solution within
major regeneration projects.

HOUSING FORUM, 2004. Manufacturing Excellence, UK capacity in offsite manufacturing: Housing Forum

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Modern Methods of Construction

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4.3

Currently demand is held back by concerns over profitability. The sector is not
yet mature enough to offer large cost savings through economies of scale and
the use of mass production. The potential is evident and if the industry is able
to develop, costs will be significantly reduced.

Modern methods of construction need champions to outline their benefits to

house builders, constructors and the public.

Modern methods of construction certainly should not be considered as a threat

to traditional methods of construction. Furthermore, producers of MMC should
learn from best practice within the traditional sector in order to achieve greater
product efficiencies.

The general public, as consumers, should be made aware of the benefits of

modern methods of construction. The most marketable advantages of MMC,
such as better and more innovative design, should be articulated by the
industry. Marketing will be an important tool in increasing public demand and
acceptance of MMC. The media is a potentially powerful ally and should be
educated on the benefits of MMC. Successful and innovative projects should be
promoted in order to create a climate of acceptance and enthusiasm for homes
built using MMC.

Rate of Delivery
4.3.1

One of the main attractions of MMC is that they provide opportunities for faster
building completions. MMC can reduce the time period between a developer starting
on-site and completion. This is of particular use for registered social landlords (RSLs),
especially when rebuilding and refurbishing areas with an existing population.
Increased completion speed in this scenario will reduce the amount of time
communities are inconvenienced whilst building work is occurring.

4.3.2

Although the private sector will theoretically be able to deliver housing more rapidly
using modern methods of construction, it is debateable whether this will be of benefit
in all scenarios. When building apartments, MMC will provide an advantage to the
developer as often many flats are not sold until the entire block is built. Developers
will be able to complete flats more quickly, thereby reducing the time to sale and the
amount of their capital tied up in the development. However, speed of construction is
of less value to private house builders as they rarely sell all the properties on a new
development at one time. This said, there are still benefits in terms of maintenance
costs that will be reduced as the building will be weather-tight in a shorter period of
time. Indeed modern methods of construction lend themselves to the use of the just
in time approach to manufacturing. In theory, homes could be built in a short space
of time after a plot has been sold. Consumers would benefit through the reduced
time it will take to move into a new home between purchase and build completion.

4.3.3

This said, planning delays can cause significant programming difficulties and are hard
to co-ordinate with '
just in time'factory based manufacturing processes. This has the
potential to affect the rate of delivery and cause problems if the factory built product
(e.g. volumetric modules) need to be stored before delivery to site or even on site. An
understanding of local planning issues and how these might impact on project
programming will be even more critical when utilising MMC.

4.3.4

For developments where the financing is being provided through PFI, such as with
some social housing or hospital schemes, the use of modern methods of
construction, and the time efficiencies that they bring, could offer large cost savings.
Reducing the time that a project is under construction, and thereby bringing forward
the date that the development enters use, improves the financial viability of a PFI
scheme.

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Modern Methods of Construction

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Key Issues

4.4

Modern methods of construction lend themselves to the use of the just in time
approach to manufacturing. In theory, homes could be built in a short space of
time after a plot has been sold. Consumers would benefit through the reduced
time it will take to move into a new home between purchase and build
completion.

For developments where the financing is being provided through PFI, such as
with some social housing or hospital schemes, the use of modern methods of
construction, and the time efficiencies that they bring, could offer large cost
savings.

Design Considerations
4.4.1

Design quality should not suffer in buildings produced using MMC. This statement is
supported by a recent CABE report concluded that there was no clear evidence of a
negative relationship between design quality and the use of MMC8. However, the
report also concluded that none of the surveyed projects demonstrated outstanding
design quality. Therefore, as with traditional build, design standards can be variable.

4.4.2

Nonetheless, MMC do provide potential for better quality design and innovation within
house building. Factory construction can provide a greater level of detail if developers
are willing to innovate. Traditional construction consists of materials being delivered
and fitted by on-site workers, whereas in a factory setting they are ordered pre-cut to
an exact size. In addition, in factories Computer Aided Design can be utilised to
create more sophisticated designs.

4.4.3

Innovative design can result in space being used more efficiently when developing at
high density. For example, greater use can be made of preformed basements and loft
space to create extra living space within a similar or smaller footprint. Such homes
delivered in high density developments can provide a better quality living
environment.

4.4.4

Modern methods of construction, especially pod systems, also offer the potential for a
superior quality of finish. Pods made in a factory environment can be delivered fully
complete to a site. Once installed, they are ready for immediate use. One of the main
complaints from owners of new-build homes is the remaining snagging required for
completion. MMC offers the opportunity for factory quality control that should ensure
similar problems do not occur.

4.4.5

This said, when using pods there are risks involved that must be considered. These
relate to the approach that is used, whether it be either a set down for a floored pod
or floorless pods that entail associated difficulties in terms of design bulk heads.

4.4.6

As a result, it is imperative that designers and architects understand the advantages

that modern methods of construction can provide, and tailor their designs accordingly.
It is essential that architects use MMC in such a way that the strengths of the product
are maximised. This will facilitate the creation of a joined up process between design
and product, where designers consider how their plans will assist the construction
process.

4.4.7

Although modern methods of construction should not in themselves impact negatively

on design, it has to be remembered that the differing types of MMC have varying
advantages. The technique to be utilised in any given set of circumstances should be
considered carefully in order to ensure the most appropriate decision is made.

CABE, 2004. Design and Modern Methods of Construction: Commission for the Built Environment

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Modern Methods of Construction

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Design limitations are not a result of MMC. Rather they can occur due to a lack of
understanding of their strengths and appropriateness for application by developers
and architects. In particular, there is a need to understand at what stage MMC should
be considered in the design process in order to fully utilise the benefits they offer.
Utilising MMC to fullest effect is dependent on the users working together. There is a
need for teamwork between the architect, developer and manufacturer in order to
understand the way in which a particular MMC can be employed to full potential.
4.4.8

It must be remembered that modern methods of construction are at a nascent phase

of development. There have been reports of poor acoustic performance of units
incorporating MMC. Concerns have also been raised about the longevity and
durability of some new techniques and materials and the potential for systematic
failures within units. In order to understand the performance of units built with MMC,
intensive testing must be continued in order to understand the relative performance of
different products and materials.

Key Issues

4.5

MMC provide potential for better quality design and innovation within house
building. Factory construction can provide a greater level of detail if developers
are willing to innovate.

It is imperative that designers and architects understand the advantages that

modern methods of construction can provide, and tailor their designs
accordingly. It is essential that architects use MMC in such a way that the
strengths of the product are maximised.

Although modern methods of construction should not in themselves impact

negatively on design, it has to be remembered that the differing types of MMC
have varying advantages. The technique to be utilised in any given set of
circumstances should be considered carefully in order to ensure the most
appropriate decision is made.

Lenders and Insurers

4.5.1

A key issue that will determine the success of modern methods of construction is the
level of confidence shown in them by financial and insurance institutions. Banks, as
mortgage lenders, are somewhat cynical at present as their experience with previous
generations of non-traditional approaches to construction has not always been
positive. Problems have arisen in terms of product lifespan, as well as repair and
remediation costs. Such issues have led some lenders to take a cautious approach to
offering mortgages on the new generation of non-traditional properties.

4.5.2

For lenders, the key issue is whether or not having taken the advice of a valuer a
property (or properties) can function as adequate security for a loan. Decisions in this
regard require attention be paid to four key factors: lifespan, insurance, whole life
costs and long term demand.

4.5.3

As regards to the insurance of new homes, lenders require any new or recently built
property to have a warranty such as those provided by the NHBC. It is important that
any new types of construction used in house building are designed and constructed
to meet the standards of and approved by warranty providers so that individual
properties are covered. Without these assurances lenders are unlikely to offer
mortgages for new homes.

4.5.4

Convincing lenders that properties built using modern methods of construction will
maintain their value, and thereby provide adequate security for a loan, is one of the
most important challenges for purveyors of MMC to overcome. Currently household
insurers and lenders do not possess sufficient data on the performance of MMC over
26

Modern Methods of Construction

Evolution or Revolution?

a long timeframe in order to make a decision on how much risk is involved in lending
against and insuring properties incorporating MMC. In addition, insurers continue to
have concerns over the resistance of MMC to more extreme acts of nature, such as
flooding and high winds, in addition to possible human-error induced hazards
including fire.
4.5.5

There are a number of areas in which the reservations of insurers and lenders can be
overcome. Manufacturers and developers should consider putting in place a
guaranteed repair scheme that will ensure any unforeseen faults will be addressed.
Organisations such as NHBC and BRE can provide guarantees that buildings are
viable9. However, it is important that developers approach them at the outset for
certification in order that a full viability assessment of the method of construction
being used can be undertaken.

4.5.6

An independent assessor should provide verification of the viability of homes built

using modern methods of construction. All schemes should be judged on their merits.
Insurers and lenders ought not try to dictate market prices. Furthermore, it must be
ensured that a level playfield is maintained between traditional construction and
MMC.

4.5.7

Reservations on the part of the mortgage and insurance industries should not in
themselves cause delays in the development of modern methods of construction. The
construction and banking industry should be able to provide each other with enough
information to satisfy their respective requirements. It is important that the two sectors
work together in order to find a mutually beneficial solution. Both sectors industry
associations should also combine forces to create a framework for the successful
implementation of modern methods of construction.

Key Issues

Convincing lenders that properties built using modern methods of construction

will maintain their value, and thereby provide adequate security for a loan, is
one of the most important challenges for purveyors of MMC to overcome.
Currently household insurers and lenders do not possess sufficient data on the
performance of MMC over a long timeframe in order to make a decision on how
much risk is involved in lending against and insuring properties incorporating
MMC.

There are a number of areas in which the reservations of insurers and lenders
can be overcome. Manufacturers and developers should consider putting in
place a guaranteed repair scheme that will ensure any unforeseen faults will be
addressed.

It is important that the two sectors work together in order to find a mutually
beneficial solution. Both sectors industry associations should also combine
forces to create a framework for the successful implementation of modern
methods of construction.

For periods of up to ten years.

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Modern Methods of Construction

Evolution or Revolution?

Conclusion

5.1

The benefits of modern methods of construction are too positive to be ignored. Although not a
panacea for the lack of housing provision in Britain, the use of modern methods of
construction does offer a number of advantages that should be utilised by both the public and
private sector. Modern methods of construction can provide large numbers of sustainable,
well-designed homes in a short period of time. Furthermore, factory production can also
ensure increased quality of design and durability. Modern methods of construction also afford
an opportunity to overcome the skills shortage in the construction industry through factory
production. The Governments Sustainable Communities Plan calls for a step change in the
delivery of new homes. Modern methods of construction will be a key tool in addressing this
challenge and should be viewed as an opportunity for the house building sector to increase
capacity and choice in the housing market.

5.2

Currently modern methods of construction are passing through a transitional phase, moving
from a small niche market to the mainstream. There are great opportunities for the sector to
evolve. With increased take up of MMC, the potential exists to improve efficiency, create
economies of scale and achieve critical mass in the market in order to increase the
profitability and viability of MMC. Government programmes such as the Millennium
Communities and the conditions of Housing Corporation funding provide the stimuli for the
private sector to invest in the technologies.

5.3

There is still a need for continuous improvement within the sector. Suppliers need to achieve
greater efficiencies within production. Costs also need to be reduced in order for MMC to
provide a serious alternative to traditional methods. In addition, further research needs to be
completed on the long-term maintenance costs incurred through the use of MMC. Further
data is also required on the performance of components used in differing methods of
construction in order to ensure they are fully tested and free from defects. This will assist
lenders and insurers in their decision-making.

5.4

The MMC industry should work closely together to both share knowledge and market its
technologies by widely detailing the advantages of modern methods of construction. A
positive start has been made in this sector by Build Offsite, a collection of manufacturers, who
are collaborating to promote MMC. In addition, BRE is working on providing a set of
standards for the industry in order to reduce the concerns of financial institutions over MMC.

5.5

Modern methods of construction should not be seen as a threat to traditional methods. Both
methods should be able to work in tandem and improve their processes collectively. The
sharing of best practice between the two approaches is essential for the continued successful
development of both construction sectors.

5.6

Modern methods of construction are on the cusp of becoming a mainstream approach to

development. The sector is faced with the task of rising to the challenge that these new
opportunities bring. It is imperative that MMC are seen as an evolution of construction
techniques rather than a revolution. Promoting MMC in combination with traditional
approaches under the banner of Best Practice Methods of Construction will help ensure
widespread utilisation across the regeneration sector and acceptance by consumers.

Best Practice Methods of Construction

MMC Off Site

Construction

MMC On Site
Construction

28

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Construction

Modern Methods of Construction

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BUILD OFFSITE, 2005. Glossary of Terms: Build Offsite
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CIOB, 2005. Skills Shortage Survey: Chartered Institute of Building
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