Wates and Hill Holdings have joined 20 other firms on a new housing framework embracing modern construction methods.
- The framework covers 37 regions in England and Wales, focusing on low and medium-rise housing projects.
- Procurement for Housing and Building Better are leading this initiative, aiming for traditional firms to steer MMC housing ventures.
- There’s been a notable rise in MMC project adoption, increasing from 9% in 2017 to 17% in 2022.
- Despite advancements, the MMC sector faces challenges like high initial costs and inconsistent demand.
Wates and Hill Holdings, among 22 firms, have secured positions on a four-year housing framework devoted to modern methods of construction (MMC). This framework, which spans 37 regions across England and Wales, will spearhead various projects encompassing low and medium rise housing, apartments, and specialised care homes. Notably, this initiative is a collaborative venture under the leadership of Procurement for Housing (PfH) and Building Better, an alliance supported by the National Housing Federation.
Out of the 22 firms engaged, a majority are established traditional contractors, with two firms, Enevate Homes and Agile Property and Homes, specialising in modern construction methodologies. PfH and Building Better initiated this framework in response to feedback from social housing organisations that advocated for local, traditional building firms to manage MMC-based housing programmes. Tony Woods, PfH’s technical manager for construction and sustainability, mentioned, “Over recent years we’ve seen MMC companies focusing more on manufacturing their systems rather than providing a turnkey service.” He further elaborated that integrating traditional builders into this framework makes strategic sense for managing and delivering MMC projects.
This framework delivers a structured and compliant route for councils and housing associations to procure principal contractor services for MMC sites. Additionally, the integration offers MMC firms the opportunity to leverage existing relationships with social housing providers. According to construction data provider Glenigan, there’s been a progressive rise in MMC technique adoption, with statistics showing a climb from 9 per cent in 2017 to a significant 17 per cent in 2022, slightly correcting to 16 per cent in 2023.
In an insightful interview with Construction News, Laing O’Rourke’s chief executive, Cathal O’Rourke, reaffirmed his company’s firm commitment to offsite construction by stating it “provides better certainty and outcomes on projects for customers”. This sentiment aligns with current government perspectives; the housing communities and local government minister, Baroness Taylor of Stevenage, recently emphasised the untapped potential of employing modern construction methods in a House of Lords debate. However, she highlighted the need for a consistent demand pipeline, a requirement presently inhibited by planning system uncertainties and housing market fluctuations.
The MMC sector, despite its progressive strides, confronts notable adversities, chiefly stemming from expensive upfront costs and the pressing need for stable demand. Recent years have seen highly regarded firms like Ilke Homes, Caledonian Modular, and Urban Splash cease operations, attributing their downfall to these particular challenges even in the face of substantial supportive measures from the government. Earlier in the year, a House of Lords committee drew attention to the government’s lack of a cohesive strategy when investing in MMC enterprises.
The MMC framework promises innovation in construction, yet navigates complex challenges for sustained success.
