1 Mmc Evolution or Revolution Paper

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Modern Methods of Construction

Evolution or Revolution?

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Modern Methods of ConstructionEvolution or Revolution?

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BURA

BURA was formed in 1990 to provide a forum for the exchange of ideas, experience andinformation for the emerging regeneration sector. BURA has now become the leadingindependent organisation in the field of regeneration. Our strong and influential membershipreflects 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 departmentsalike 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 consistingof business, public sector and not-for-profit/community organisations, drawn together by acommon interest in, and experience of, urban regeneration. The SDF was established in 2001with the specific aims of informing and responding to government policy, as well as facilitatinglong-term research ventures. Focused primarily on delivery and implementation, the SDFplays 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


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Contents

Page

Acknowledgements 8

Glossary of Terms 10

1. Executive Summary 12

2. Introduction 14

3. Drivers Towards Modern Methods of Construction 15

Policy Context

Construction Industry Skills

Housing Quality

4. Overcoming the Barriers 21 Cost

Demand

Rate of Delivery

Design Considerations

Lenders and Insurers

5. Conclusion 28

6. Bibliography 29


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Acknowledgments

BURA would like to thank the following individuals for their assistance in the production of thisreport:

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 theorganisations they represent.

About the Authors

Simon Burwood, as BURAs Research and Policy Director, oversees the research and policyprogramme of the Associations Steering and Development Forum think-tank. Previously,Simon co-authored Learning form Experience: the BURA Guide to Achieving Effective and

Lasting Regenerationwith Professor Peter Roberts, now Chair of the Academy forSustainable Communities. Simon holds a Masters degree from the London School ofEconomics in Cities, Space and Society, having previously read Geography as anundergraduate at the University of Nottingham.

Paul Jess is a Researcher for BURA's Steering and Development Forum. Paul graduatedwith a degree in History from the University of Warwick in 2002. Previous BURA reports hehas contributed to include Delivering in the Growth Areas: Overcoming the Barriers toRegenerationand Procurement in Urban Regeneration: Accountability, Shared Vision andPartnering. Prior to joining BURA, Paul worked for Haymarket Conferences researchingevents for Regeneration & Renewalmagazine.


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


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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 awayfrom the building site in factory conditions. Examples include:

a) Panel Building Systems: These comprise of walls, floors and roofs in the form offlat pre-engineered panels that are erected on site to form the box like elements ofthe structure that then require various levels of finishing. The most common approachis to use open panels or frames which consist of skeletal structure only with services,insulation, external cladding and internal finishing occurring on-site. Another systemthat is used frequently involves closed panels. These are more complex, involve morefactory fabrication and may include lining materials and insulation. Types of panelsystems build include timber frame and steel frame, both of which usually consist ofprefabricated 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 thestructure of the building, thereby enclosing the usable space. Typically, modularconstruction means that between 80 to 95 per cent of the building-come-manufacturing process is completed at the factory and then delivered to the site forfinal assembly. This process involves connecting the completed modules to eachother on site. There is no requirement for any additional supporting superstructure.Modular construction is often used on larger, more standardised schemes due to theeconomies of scale of many similar sized modules and the discernable benefit ofreduced construction times. Prefabricated modules are often referred as pods andare factory finished internally, complete with mechanical and electrical services. Podsare 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 bestandardised and repeated, such as kitchens and bathrooms.

c) Hybrid (also known as Semi-Volumetric): This method combines panellised andvolumetric methods of construction and frequently includes the use of pods. Thehybrid approach can be used to bring flexibility to the development and can alsoreduce uniformity of design.

d) Sub-Assemblies and Components: These methods, although predominantlytraditional, utilise factory fabricated sub assemblies or components. This includesfloor 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 maincharacteristic of these methods is that of innovation. This could be through an innovative nonOSM building technique or through the use of a method of construction that has been used inother 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 usedmethods of cellular construction as its cost effectiveness, productivity and qualitybenefits are being realised on a variety of developments. Tunnel form is particularlysuitable for repetitive cellular projects such as hotels, apartment blocks and studentaccommodation. Structures of up to 40 or more storeys in height can be built usingthis technique. Tunnel form simplifies the construction process by making possible asmooth and quick operation that can result in costs being reduced by 15 per cent andtime savings of up to 25 per cent

1. During the tunnel form construction process, a

1CONCRETE CENTRE, 2004.High Performance Buildings: Using Tunnel Form Concrete Construction:Concrete

Centre, p.2


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structural tunnel is created by pouring concrete into steel mould known as aformwork) to form the floor and walls. Every 24 hours, the formwork is moved so thatanother tunnel can be created. Once a storey has been completed, the process isrepeated 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 interms of size and shape, and a thin layer of mortar. Thin joint combines reduced buildtimes with greater flexibility of aircrete construction, such as ease of handling,working and finishing. It can also result in cost savings, facilitate improved buildquality and reduce wastage.

Other significant areas include carpet reinforcement and load bearing faced systems, throughto process and schedule improvements such as metal shutters, core jump systems, doublejumping cores, edge protection systems, service walls, and light weight facades.


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1 Executive Summary

1.1 The Barker Review of Housing Supply observes that at the present time, traditional brick andblock methods of construction remain cheaper, in many cases than modern methods of

construction2. Despite this, modern methods of construction (MMC) potentially offer a widerange of advantages to those operating in construction, including developers, as well as thoseorganisations charged with delivering and implementing policy. Modern methods ofconstruction allow for innovation. This is of the utmost relevance as, if the ambitious housingtargets of the Sustainable Communities Plan are to be realised, it is clear that new thinkingand approaches are needed to facilitate development.

1.2 However, a number of barriers will need to be overcome if the application of MMC is tobecome prevalent. In terms of consumer confidence, a patchy track record dating back to the1960s of pre-fab and system-build approaches will need to be overcome. Whilst such termsare perceived negatively, confidence exists across the regeneration sector that modern dayconsumers are more concerned with good design, aesthetics and character than constructionmethods. Whilst there is optimism on this front, there exists a more substantial barrier in theform of mortgage lenders and insurers as both sectors remain sceptical about the long-termviability of MMC. Whilst progress is being achieved in this respect, it is lagging behind andhence 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 furtherthought. Although one could argue quite reasonably that it is simply a superficial exercise insemantics, there is an argument for referring to the most functional and commonly appliedbuilding techniques, whether traditional or modern, as best practice methods of construction.This could help overcome the stigma associated with factory-based construction methods. Inreality, the construction industry has always been marked by an ongoing evolution in thetechniques it applies. Furthermore, the argument can be made that those approachesdefined as MMC involve nothing more than the use of existing and established materials andtechniques in more modern and efficient ways.

1.4 The advantages of using MMC are many and numerous. Illustrating this, there currentlyexists, as highlighted by Egan

3, a shortage of skills within the construction industry, both in

terms of on and off-site professions. On-site this dearth of appropriate skilled labourfrequently results in unacceptable problems, particularly in terms of roofing. Off-sitemanufacturing techniques, as they are factory based, offer better potential to ensure highfunctional and design quality standards. This said, with the exception of full volumetricsystems, 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 capableworkforce is of great importance to the future success of MMC. As with traditional methods ofconstruction, 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 themeantime, 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 energyefficiency and waste reduction. Other problems such, as soundproofing and thermalperformance, must also be addressed. Furthermore, greater thought is required as to thetypes of projects for which MMC represent a solution. For example, this papers suggests thatMMC are of greater relevance to the provision of affordable housing for rent, in terms ofreducing disruption and overcoming waiting-lists, as opposed to private housing, where theadvantages of rapid construction are less useful because other factors determine the rate oftransactions in the market. However, there are areas where other advantages of MMC (suchas 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. FinalReport and Recommendations: HM Treasury, p.1133

EGAN John, 1998. Rethinking Construction: Office of the Deputy Prime Minister


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education sectors, where standardised products and the need for uniformly high performancestandards 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 aviable approach to developing sustainable communities. Both English Partnerships and theHousing Corporation, through various mechanisms and initiatives, are promoting the use of

MMC. Such intervention is necessary in order to support nascent, although increasinglyextensive, private sector research and development programmes. To this end, a sufficientlysizeable marketplace for MMC must be established and guaranteed over a prolonged periodof five to ten years in order for the private sector to consider investment in MMC asworthwhile. Only in this way will all-important economies of scale be achieved. Small andindividual developments that come forward in an ad hoc manner will not sustain theapplication of MMC. The creation of fiscal incentives to encourage research into, and theapplication of, MMC should be considered by policymakers. Whilst a persuasive evidencebase, one way or the other, does not yet exist in this regard, this is an area that should beexplored.

1.7 Nonetheless, it seems the construction sector is on the cusp of a rapid acceleration in theapplication 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 theLondon 2012 Olympics, which necessitate rapid delivery, in tandem with increasing concernover 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 andsafety, speed and greater efficiency in terms on minimising waste.

Some areas of concern remain to be overcome. These include thermal massissues; acoustics; the longevity and durability of MMC solutions; and the potentialfor systemic failures.

Whilst the public sector is currently engaged in generating momentum to supportthe more frequent application of modern methods of construction, a stance whichis to be welcomed, this ought not be understood as implying that all newtechniques are, by default, best practice and therefore superior to traditionalapproaches.

There is no need to segregate best practice in terms of traditional methods frombest practice involving modern methods of construction. Both industries overlapand should work together to ensure best quality design for the particularcircumstances. To this end, there is a need for a united front that allows bothmodern methods of construction and traditional approaches to operate separatelybut then unite under the banner of innovation and best practice.

If this mindset can become widely accepted, it would help overcome some of thegreatest barriers to the use off MMC, two of which are resistance to change and afragmented construction industry that perpetuates division. It is imperative thatMMC are regarded as an evolution of current and past techniques that do notnecessarily threaten traditional methods, but in fact offer huge opportunities interms of hybrid approaches to construction.

In terms of the future employment of modern methods of construction, there aremarket sectors such as education and healthcare in which repetition of productsand need for harmonised performance standards are commonplace. Such sectorsmust be explored as modern methods of construction are particularly apposite fordelivering standardised products (at potentially excellent value).


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2 Introduction

2.1 Modern methods of construction (MMC) is a term recently adopted by the HousingCorporation and the Office of the Deputy Prime Minister as a collective description for bothoff-site based construction techniques and innovative on-site technologies. Collectively,modern methods of construction provide excellent potential for the regeneration sector toimprove 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 beencouraged in order to both facilitate and stimulate house-building. Much research is currentlybeing undertaken into the application of modern methods of construction and the usefulnessof each of the differing techniques vis--vis building homes. In response to the call in BarkerReview of Housing Supply for research on the barriers to using modern methods ofconstruction, the Home Builders Federation, in conjunction with NHBC and others, has set upthe 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 andDevelopment Forum has commissioned this research to evaluate the drivers that areprompting interest in, and greater use of, modern methods of construction. This report alsoexplores the key issues that must be addressed in order for modern methods of constructionto be applied more widely across the regeneration sector in the future. With this in mind, bothcurrent government policy and the development of new techniques by the private sector areexamined in terms of how they are incentivising the use and advancement of MMC inregeneration. This paper also considers how a shortage of skills in the construction sector, intandem with increased demand for high quality housing, could provide the impetus for modernmethods of construction.

2.3 The second part of this report examines the key issues associated with modern methods ofconstruction 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 methodsof construction are sufficiently advanced to provide viable construction options that can beutilised by the regeneration sector towards the delivery of Sustainable Communitiesobjectives.

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


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3 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 newhousing. The target of an additional 200,000 new homes across the four South EastEngland growth areas in the next thirty years (on top of current levels of housingconstruction) necessitates that new methods for delivering homes at an increasedrate be explored. In this connection, modern methods of construction have beenhighlighted in the Barker Review as a possible solution to the conundrum ofincreasing production whilst maintaining high quality standards. Furthermore, theimportance of MMC to Government policy is reiterated by the Homes for All five yearplan 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 increasinghousing delivery and potentially reducing cost thereby possibly slowing house priceinflation the Government has instigated a number of initiatives to encourage the useof these new techniques. Illustrating this, the Office of the Deputy Prime Minister haslaunched the Design for Manufacture competition in association with EnglishPartnerships to challenge the construction industry to design and build a low costhome

4. Although the competition does not require bidders to use modern methods of

construction, it was anticipated that many of the entries would utilise newtechnologies in their schemes with the effect of stimulating fresh thinking that will actas a starting point for further research and development. Policymakers believe thatmore efficient construction methods can increase the rate of housing supply, facilitatehigher 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 topromote the use of modern methods of construction by insisting that 25 per cent of itsgrant (it has a 3.3 billion investment programme for 2004-06) must be used fordevelopments that incorporate some form of MMC.

3.1.4 In addition, private sector companies working with English Partnerships in theMillennium Communities programme are required to use modern methods ofconstruction. The intention is to encourage house-builders to use new technologies,adopt higher standards of design quality and utilise more environmentally-friendlymaterials to improve resource efficiency. The programme aims to set the standardsthat 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 housebuilding. In exchange for guaranteeing long term revenue funds through grants andextended contracts, such initiatives stimulate private sector investment into theresearch and development of modern methods of construction.

3.1.6 It seems government intervention is necessary as, without it, there currently appearsto 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 notsufficient cost savings associated with MMC to impact profitability on large buildingschemes. In addition, research costs are high. However, insistence by the Housing

4Whilst 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 mainobjectives of the initiatives are to (a) demonstrate good design can be achieved in a cost effective manner and (b) toimprove environmental efficient in terms of reducing the average level of waster associated with the constructionindustry.


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

3.1.7 As stated above, for modern methods of construction to become a viable option forprivate sector companies, economies of scale need to be created to drive downcosts. Given that improving affordability is a primary driver behind the Governmentsenthusiasm for modern methods of construction, a path towards mass productionmust be found in order that critical mass can be achieved. At present there is a smallnumber of MMC suppliers. This means it is currently expensive to source materials asprices are higher than with traditional approaches to construction. It is because of thisthat the government instigated initiatives demanding the use of MMC are so crucial interms of catalysing their application. As demand for MMC increases, the incentive forsuppliers 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. Itseems the application of MMC will become self-perpetuating over time to the benefitof both suppliers and developers.

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

3.1.9 Other policies that will also increase the viability of modern methods of constructioninclude the new regulations on sustainability and the environmental impact of house-building. Modern methods of construction provide the potential for reducing carbonemissions produced by building on-site. MMC could also reduce the volume of

material wasted in the production process, particularly if much of the production isundertaken off-site in factory conditions.

3.1.10 With policy increasingly reflecting concerns over the level of pollution and wastagecreated by the construction industry, incentives to use modern methods ofconstruction should be encouraged. Further incentives could be provided in the formof tax reductions for those homes built with modern methods of construction. Thiswould assist in reducing the initial costs, thereby releasing funds that could beredirected into researching new technologies, the outcome of which, over time, wouldmake the use of MMC on projects more attractive if advances are made. Theusefulness of fiscal breaks to incentivise research into, and the application of, MMCshould be researched.

3.1.11 New government regulations on housing standards may also provide an impetus todeliver of new homes using modern methods of construction. Off-site factorymanufacture presents an opportunity for the production of cost effective homes thatwill exceed the prescribed quality requirements. Furthermore, manufacturing in afactory setting has the added advantage of ensuring uniform quality standards. Therehas already been an increase in the number of builders considering MMC due toforthcoming energy regulations as homes built using such techniques typically requireless energy to heat thanks to better insulation in the walls and roof, and also less airleakage from the building. This said, evaluating the environmental benefits of a newMMC housing development is complex because it is difficult to attribute outcomessolely to the use of new techniques as opposed to other factors.


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Key Issues

Government intervention is necessary as, without it, there currently appears tobe less incentive for the private sector to invest in modern methods ofconstruction, or to use MMC as a preferred method of construction

For modern methods of construction to become a viable option for privatesector companies, economies of scale need to be created to drive down costs.

Modern methods of construction can improve the build rates of housingschemes dramatically by increasing the number of completions over any givenperiod. This will help reduce the excess of demand for homes in the SouthEast, thereby contributing to achieving the Governments aim of improving theaffordability of house prices.

Off-site factory manufacture presents an opportunity for the production of costeffective homes that will exceed the prescribed quality requirements.Furthermore, manufacturing in a factory setting has the added advantage ofensuring uniform quality standards.

3.2 Construction Industry Skills

3.2.1 Currently there is a personnel shortage in the construction industry. A CharteredInstitute of Building survey found that over 79 per cent of its members reporteddifficulties with recruitment. Furthermore, 91 per cent anticipate a skills shortagebeyond 2005

5. The Construction Industry Training Board estimates that the industry

needs 88,000 recruits every year for the next five years. This skills shortage will beexacerbated by the increased levels of construction outlined in the SustainableCommunities Plan and prestigious large-scale developments, such as the 2012Olympics, 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 apprenticeshipschemes, in tandem with the general lack of interest in taking up skilled building workas a career, has led to a reduction in the number of skilled workers available tocontractors. This, in turn, will have an effect on the capacity of the construction sectorand could delay the achievement of building targets.

3.2.3 Whilst it is often possible to obtain skilled labour, house builders have reported that itis challenging to acquire sufficient skilled workers within the intended timeframe of adevelopment. In addition, the contracts on which these workers are employed oftendo not maximise productivity. Furthermore, this scarcity of skilled workmen frequentlycauses delays in the fitting out process of new homes and the delivery of high qualityfinishes. One of the main complaints regarding newly built homes is the large amountof 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 theskills shortage in the construction industry. In a factory setting construction can bestandardised and partially automated. In addition, volumetric and hybrid approachesallow self-contained units such as kitchen and bathroom pods to be built off-site priorto installation. This allows for a central factory in which a settled and steady workforcecan be developed (in contrast to the traditional footloose nature of constructionworkers). Factory construction will assist in the regulation of quality and can providebetter facilities for training new workers. Furthermore, if the potential of off-sitemanufacture is fulfilled, the need for skilled workers on-site will decrease. This willimprove the availability of skilled workers for essential projects. However, a balancemust be stuck. Experience has found that the quality of units manufactured off-site

5CIOB, 2005. Skills Shortage Survey: Chartered Institute of Building


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can suffer if fitted incorrectly by untrained workers. Tradesmen who have experienceof using modern methods of construction have a greater understanding of how to usethe materials and can, therefore, best utilise the advantages such techniques canbring. Modern methods of construction offer the potential to raise installationstandards and general quality levels within the house-building sector. However, itmust 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 ofthese 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 bythe same poor standards that can affect traditional building.

3.2.5 MMC, if widely adopted by the construction sector will change the requisite skills setof 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 careersin the construction industry as it will represent a permanent place of work. Althoughmore unskilled workers will be employed, there will still be a need for traditional skilledtradesmen: first, in on-site manufacture and, secondly, in traditional constructiondevelopments and the refurbishment of older buildings. Modern methods of

construction will complement traditional methods of construction and importantly, withthe Governments targets for house building and development in mind, assist inovercoming the current construction skills shortage.

3.2.6 However, modern methods of construction should not be considered an all-answeringremedy for the shortage of skills in the construction industry. Demand will remain fortraditional, on-site construction skills, and, in time, the need for more, new skills willbecome apparent. Although MMC can reduce the pressure on traditional skills-sets,they cannot completely replace the need for traditionally-skilled tradesmen. This is animportant issue that must not be overlooked. The current skills shortage can only beremedied 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 industrysskills shortage. Even with MMC large numbers of skilled workers will be needed inorder to provide high standard homes. Both the construction industry and governmentmust invest in training new workers as a matter of urgency. There is little value inpromoting innovative methods of construction if the industry is still unable to recruitstaff 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 amarket downturn, traditional workers could find less work on construction sites.Should such a scenario become likely, it will be important that opportunities areprovided for traditionally skilled workers to retrain in order to become familiar with newtechniques, whether it be within factory setting or in connection with applying MMConsite.

3.2.9 The use of factory-based off-site manufacture will assist in the improvement of theconstruction industrys health and safety record. The construction industry is one ofthe most dangerous for workers, with 72 deaths between April 2004 and April 2005 inthe UK

6. 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 theconstruction site.

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

6SPANSWICK 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 theviability of modern methods of construction.

Key Issues

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

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

Modern methods of construction should not be considered an all-answeringremedy for the shortage of skills in the construction industry. Demand willremain for traditional, on-site construction skills, and, in time, the need formore, new skills will become apparent. Although MMC can reduce the pressureon traditional skills-sets, they cannot completely replace the need fortraditionally-skilled tradesmen. Both the construction industry and governmentmust 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 unableto recruit staff that are suitably well trained to implement them.

3.3 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 oftenregarded as inferior to older, Victorian-age homes. It seems this problem ofperception is not a consequence of a failure in the design of new-build homes as, dueto building regulations and government requirements, the criteria that new buildhomes 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 ofreasons including the availability of skills and choice of building materials. Given this,the potential to regulate MMC more scrupulously could result in better new-homestandards.

3.3.2 It is also worth noting there is some evidence that NIMBYs have used concerns overthe use of MMC to further delay the planning process, particularly in opposition toaffordable housing schemes. As discussed in section 4.5 in relation to lenders andinsurers, it seems it would be expedient to articulate the benefits, and associatedissues, 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 modernmethods of construction to provide better quality homes. There are many differentmaterials that can be used in the MMC process and the suitability of each must beintensively scrutinised before a decision is made on which approach to use. Thevarious options and materials that can be employed have their own strengths andweaknesses that must be utilised in the correct way. There have been instanceswhere the wrong material has been used and residents quality of life has beenaffected be it through poor sound insulation or design flaws. Furthermore, theperformance of MMC can also be reduced by poor installation. Although suchproblems can occur with traditional build, it is important that appropriate MMC areimplemented 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 researchmust be undertaken as regards to the performance of new methods and materials inorder to identify any potential defects. This testing should be accompanied byvalidation and regulation. BRE is currently working on LPS 2020, a performancerequirement 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, Germanyand Sweden. The United Kingdom project, based in Cambridge, will build 120 homes,each with the same footprint and design template, on land provided by EnglishPartnerships. Four blocks of 30 houses will be built using different constructionmethods: brick and block, volumetric, timber frame and concrete. These houses willthen 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 tosignificantly increase the quality and desirability of new homes. MMC also haveadvantages in terms of innovation in the design process. This will be a usefulincentive for those seeking new homes and could provide house-builders withcompetitive advantages.

Key Issues

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

A note of caution should be sounded regarding the ability of modern methodsof construction to provide better quality homes. There are many differentmaterials that can be used in the MMC process and the suitability of each mustbe intensively scrutinised before a decision is made on which approach to use.


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4 Overcoming the Barriers

4.1 Cost

4.1.1 It has been argued that modern methods of construction will provide the industry witha viable method of reducing construction costs. In principle this could prove to be thecase, but a number of factors must be overcome before MMC become a truly costeffective option. Only when a critical mass is achieved, and there is a significantmove towards the mass production of multiple units, will costs be dramaticallyreduced. At present companies are working on a project-by-project basis withdiffering specifications on each scheme. This prevents standardisation and thecreation of economies of scale. Currently the number of regeneration schemes beingcompleted utilising modern methods of construction is insufficient to reduce overallcosts significantly. The application of MMC will need to expand significantly in orderfor sufficient cost savings to be possible.

4.1.2 Currently the industry is in a somewhat stymied situation. In order to reduce the costof manufacture there needs to be increased take up of modern methods ofconstruction within regeneration. However, for constructors to fully utilise MMC, costsneed to be reduced. This is where the incentives and policies being pioneered by theHousing Corporation and English Partnerships are so important in creating moresizeable 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, theproduction of homogeneous structures is to be discouraged as design variations mustbe possible to avoid monotony in the urban landscape. Modern methods ofconstruction 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 ofproduction and development. Standardisation would assist in the reduction of long-term costs, as this would allow the development of a cost effective, mass producedproduct that could easily be modified. However, as discussed, caution has to be usedwhen standardising products in order to prevent uniformity of design and potentialproblems if there is a product failure.

4.1.5 Another concern relates to the long-term costs of maintaining products incorporatingMMC, which have not yet been fully researched. Many of the materials used inmodern construction methods are new and untested. At this time it is not clear howthey will perform over a period of twenty to thirty years, or longer. Unforeseen costscould 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 throughintensive testing of products both by manufacturers and BRE and this will hopefullyyield 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 traditionalmethods due to the way in which they are compared. MMC can reduce significantlywhole-life costs, especially if critical mass is achieved and mass production becomesprevalent. Although initial costs may prove high, future costs could be significantlyreduced if large numbers of units are completed. At present many projects are judgedonly on initial start up costs. If long-term costs were taken into consideration theattractiveness 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. Quickerconstruction 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 potentiallyreceive rent earlier.

4.1.8 To reduce the expense associated with MMC, the method of construction to be usedshould be considered at the earliest possible stage of development in order to fullycost 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 andeconomies of scale created. If it is decided at a later date to include MMC, costs willbe higher as design changes are made and suppliers are sourced.

Key Issues

Only when a critical mass is achieved, and there is a significant move towardsthe mass production of multiple units, will costs be dramatically reduced. Atpresent companies are working on a project-by-project basis with differingspecifications on each scheme. Currently the number of regeneration schemesbeing completed utilising modern methods of construction is insufficient toreduce overall costs significantly. The application of MMC will need to expandsignificantly in order for sufficient cost savings to be possible.

Modern methods of construction often appear more expensive than traditionalmethods due to the way in which they are compared. MMC can reducesignificantly whole-life costs, especially if critical mass is achieved and massproduction becomes prevalent.

4.2 Demand

4.2.1 Despite the current need for public agencies to catalyse the application of newconstruction technologies, MMC are at an exciting stage of development. The nextfew years could see MMC make the transition from a small niche construction optionthrough 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 preparedto 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 yetmature enough to offer large cost savings through economies of scale and the use ofmass production. The potential is evident and if the industry is able to develop, costswill be significantly reduced.

4.2.3 By necessitating the application of MMC, Housing Corporation and EnglishPartnerships 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 CommunitiesPlan 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 housebuilders, constructors and the public. Good work is already being done by BuildOffsite, BRE, the Building Centre Trust and the concrete industry. It is essential thebenefits of MMC are disseminated to a wider audience. Similarly those firms workingin MMC must publicise their products and the potential benefits. Put simply, modernmethods of construction should be developed and marketed in a way that ensuresthey are not considered subordinate to traditional methods. In contrast, MMC shouldbe viewed as an equal partner in the construction process that can complementtraditional approaches.

4.2.5 Similarly, modern methods of construction certainly should not be considered as athreat to traditional methods of construction. Furthermore, producers of MMC should


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learn from best practice within the traditional sector in order to achieve greaterproduct efficiencies. In turn, modern methods of construction can be used on-site inconjunction with traditional methods in order to deliver a development to best effect.Such hybrid approaches are already in use. Individual units, such as bathroom andkitchen 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 modernmethods of construction. The most marketable advantages of MMC, such as betterand more innovative design, should be articulated by the industry. Modern methodsof construction should be branded as dynamic and forward thinking. The industryshould not be defensive about the product. Although the failures of innovativemethods of construction in the past are still of concern to some members of thepublic, the majority of homeowners are increasingly concerned with quality, designand cost. The application of modern methods of construction offers the chance tocreate inspiring modern homes that homeowners will desire. This potential for design-led homes should be capitalised upon in order to ensure homes built using MMC, atleast in part, are a desirable product. Some developers have already taken a lead inselling MMC as an integral part of their product. Examples include Urban Splash atMoHo in Manchester and BedZED in Sutton.

4.2.7 Marketing will be an important tool in increasing public demand and acceptance ofMMC. The media is a potentially powerful ally and should be educated on the benefitsof MMC. Successful and innovative projects should be promoted in order to create aclimate of acceptance and enthusiasm for homes built using MMC. In order to dispelpotential media cynicism it is important that all homes incorporating MMC arethoroughly tested in order to prevent product failures and unfavourable comparisonsbeing 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 sufficientcapacity to cope with an increased demand for its products. It is estimated that theindustry is working at 70 per cent capacity and manufacturers expect this to increaseto 80 per cent by 2006

7. The MMC sector should draw on innovations from other

sectors such as the motor industry and aircraft industry in order to increaseproduction levels. These sectors have perfected methods of mass production overtime. The lessons learned by these industries ought to be applied to certain aspectsof MMC in order to further raise productivity.

4.2.9 Although capacity can meet demand at present, the construction sector is stillhampered by a lack of skills on site. Any uplift in production will require acommensurate increase in skilled workers to install products. Without additionaltraining of workers in the use of modern methods of construction, any increase incapacity will be wasted, and potentially harmful in terms of reputation, if poorinstallation 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 aredifficult to access. In most cases the delivery of pods, for example, should not beproblematic. Only in exceptional circumstances will the geography of a site pose abarrier 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 byemploying 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 nicheconstruction option through to becoming a frequently applied solution withinmajor regeneration projects.

7HOUSING FORUM, 2004. Manufacturing Excellence, UK capacity in offsite manufacturing: Housing Forum


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Currently demand is held back by concerns over profitability. The sector is notyet mature enough to offer large cost savings through economies of scale andthe use of mass production. The potential is evident and if the industry is ableto 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 threatto traditional methods of construction. Furthermore, producers of MMC shouldlearn from best practice within the traditional sector in order to achieve greaterproduct efficiencies.

The general public, as consumers, should be made aware of the benefits ofmodern methods of construction. The most marketable advantages of MMC,such as better and more innovative design, should be articulated by theindustry. Marketing will be an important tool in increasing public demand andacceptance of MMC. The media is a potentially powerful ally and should beeducated on the benefits of MMC. Successful and innovative projects should bepromoted in order to create a climate of acceptance and enthusiasm for homesbuilt using MMC.

4.3 Rate of Delivery

4.3.1 One of the main attractions of MMC is that they provide opportunities for fasterbuilding completions. MMC can reduce the time period between a developer startingon-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 timecommunities are inconvenienced whilst building work is occurring.

4.3.2 Although the private sector will theoretically be able to deliver housing more rapidlyusing modern methods of construction, it is debateable whether this will be of benefitin all scenarios. When building apartments, MMC will provide an advantage to thedeveloper as often many flats are not sold until the entire block is built. Developerswill be able to complete flats more quickly, thereby reducing the time to sale and theamount of their capital tied up in the development. However, speed of construction isof less value to private house builders as they rarely sell all the properties on a newdevelopment at one time. This said, there are still benefits in terms of maintenancecosts that will be reduced as the building will be weather-tight in a shorter period oftime. Indeed modern methods of construction lend themselves to the use of the justin time approach to manufacturing. In theory, homes could be built in a short spaceof 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 hardto co-ordinate with 'just in time' factory based manufacturing processes. This has thepotential 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. Anunderstanding of local planning issues and how these might impact on projectprogramming will be even more critical when utilising MMC.

4.3.4 For developments where the financing is being provided through PFI, such as withsome social housing or hospital schemes, the use of modern methods ofconstruction, 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 PFIscheme.


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Key Issues

Modern methods of construction lend themselves to the use of the just in timeapproach to manufacturing. In theory, homes could be built in a short space oftime after a plot has been sold. Consumers would benefit through the reducedtime 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 aswith some social housing or hospital schemes, the use of modern methods ofconstruction, and the time efficiencies that they bring, could offer large costsavings.

4.4 Design Considerations

4.4.1 Design quality should not suffer in buildings produced using MMC. This statement issupported by a recent CABE report concluded that there was no clear evidence of anegative relationship between design quality and the use of MMC

8. However, the

report also concluded that none of the surveyed projects demonstrated outstandingdesign 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 withinhouse building. Factory construction can provide a greater level of detail if developersare willing to innovate. Traditional construction consists of materials being deliveredand fitted by on-site workers, whereas in a factory setting they are ordered pre-cut toan exact size. In addition, in factories Computer Aided Design can be utilised tocreate more sophisticated designs.

4.4.3 Innovative design can result in space being used more efficiently when developing athigh density. For example, greater use can be made of preformed basements and loftspace to create extra living space within a similar or smaller footprint. Such homes

delivered in high density developments can provide a better quality livingenvironment.

4.4.4 Modern methods of construction, especially pod systems, also offer the potential for asuperior quality of finish. Pods made in a factory environment can be delivered fullycomplete to a site. Once installed, they are ready for immediate use. One of the maincomplaints from owners of new-build homes is the remaining snagging required forcompletion. MMC offers the opportunity for factory quality control that should ensuresimilar problems do not occur.

4.4.5 This said, when using pods there are risks involved that must be considered. Theserelate to the approach that is used, whether it be either a set down for a floored podor 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 advantagesthat 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 productare maximised. This will facilitate the creation of a joined up process between designand product, where designers consider how their plans will assist the constructionprocess.

4.4.7 Although modern methods of construction should not in themselves impact negativelyon design, it has to be remembered that the differing types of MMC have varyingadvantages. The technique to be utilised in any given set of circumstances should beconsidered carefully in order to ensure the most appropriate decision is made.

8CABE, 2004. Design and Modern Methods of Construction: Commission for the Built Environment


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Design limitations are not a result of MMC. Rather they can occur due to a lack ofunderstanding of their strengths and appropriateness for application by developersand architects. In particular, there is a need to understand at what stage MMC shouldbe 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 aneed 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 phaseof development. There have been reports of poor acoustic performance of unitsincorporating MMC. Concerns have also been raised about the longevity anddurability of some new techniques and materials and the potential for systematicfailures 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 ofdifferent products and materials.

Key Issues

MMC provide potential for better quality design and innovation within house

building. Factory construction can provide a greater level of detail if developersare willing to innovate.

It is imperative that designers and architects understand the advantages thatmodern methods of construction can provide, and tailor their designsaccordingly. It is essential that architects use MMC in such a way that thestrengths of the product are maximised.

Although modern methods of construction should not in themselves impactnegatively on design, it has to be remembered that the differing types of MMChave varying advantages. The technique to be utilised in any given set ofcircumstances should be considered carefully in order to ensure the mostappropriate decision is made.

4.5 Lenders and Insurers

4.5.1 A key issue that will determine the success of modern methods of construction is thelevel of confidence shown in them by financial and insurance institutions. Banks, asmortgage lenders, are somewhat cynical at present as their experience with previousgenerations of non-traditional approaches to construction has not always beenpositive. Problems have arisen in terms of product lifespan, as well as repair andremediation costs. Such issues have led some lenders to take a cautious approach tooffering 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 aproperty (or properties) can function as adequate security for a loan. Decisions in thisregard require attention be paid to four key factors: lifespan, insurance, whole lifecosts and long term demand.

4.5.3 As regards to the insurance of new homes, lenders require any new or recently builtproperty to have a warranty such as those provided by the NHBC. It is important thatany new types of construction used in house building are designed and constructedto meet the standards of and approved by warranty providers so that individualproperties are covered. Without these assurances lenders are unlikely to offermortgages 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 themost important challenges for purveyors of MMC to overcome. Currently householdinsurers and lenders do not possess sufficient data on the performance of MMC over


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a long timeframe in order to make a decision on how much risk is involved in lendingagainst and insuring properties incorporating MMC. In addition, insurers continue tohave concerns over the resistance of MMC to more extreme acts of nature, such asflooding and high winds, in addition to possible human-error induced hazardsincluding fire.

4.5.5 There are a number of areas in which the reservations of insurers and lenders can beovercome. Manufacturers and developers should consider putting in place aguaranteed repair scheme that will ensure any unforeseen faults will be addressed.Organisations such as NHBC and BRE can provide guarantees that buildings areviable

9. However, it is important that developers approach them at the outset for

certification in order that a full viability assessment of the method of constructionbeing used can be undertaken.

4.5.6 An independent assessor should provide verification of the viability of homes builtusing 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 beensured that a level playfield is maintained between traditional construction andMMC.

4.5.7 Reservations on the part of the mortgage and insurance industries should not inthemselves cause delays in the development of modern methods of construction. Theconstruction and banking industry should be able to provide each other with enoughinformation to satisfy their respective requirements. It is important that the two sectorswork together in order to find a mutually beneficial solution. Both sectors industryassociations should also combine forces to create a framework for the successfulimplementation of modern methods of construction.

Key Issues

Convincing lenders that properties built using modern methods of constructionwill 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 theperformance of MMC over a long timeframe in order to make a decision on howmuch risk is involved in lending against and insuring properties incorporatingMMC.

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

It is important that the two sectors work together in order to find a mutuallybeneficial solution. Both sectors industry associations should also combine

forces to create a framework for the successful implementation of modernmethods of construction.

9For periods of up to ten years.


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5 Conclusion

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

5.2 Currently modern methods of construction are passing through a transitional phase, movingfrom 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, createeconomies of scale and achieve critical mass in the market in order to increase theprofitability and viability of MMC. Government programmes such as the MillenniumCommunities and the conditions of Housing Corporation funding provide the stimuli for theprivate sector to invest in the technologies.

5.3 There is still a need for continuous improvement within the sector. Suppliers need to achievegreater efficiencies within production. Costs also need to be reduced in order for MMC toprovide a serious alternative to traditional methods. In addition, further research needs to becompleted on the long-term maintenance costs incurred through the use of MMC. Furtherdata is also required on the performance of components used in differing methods ofconstruction in order to ensure they are fully tested and free from defects. This will assistlenders and insurers in their decision-making.

5.4 The MMC industry should work closely together to both share knowledge and market itstechnologies by widely detailing the advantages of modern methods of construction. Apositive start has been made in this sector by Build Offsite, a collection of manufacturers, whoare collaborating to promote MMC. In addition, BRE is working on providing a set ofstandards 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. Bothmethods should be able to work in tandem and improve their processes collectively. Thesharing of best practice between the two approaches is essential for the continued successfuldevelopment 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 newopportunities bring. It is imperative that MMC are seen as an evolution of constructiontechniques rather than a revolution. Promoting MMC in combination with traditionalapproaches under the banner of Best Practice Methods of Construction will help ensurewidespread utilisation across the regeneration sector and acceptance by consumers.

Best Practice Methods of Construction

MMC Off SiteConstruction

MMC On SiteConstruction

Innovative TraditionalConstruction


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6 Bibliography

AIRCRETE BUREAU, 2005. Building with Aircrete, Thin Joint Masonry:Aircrete Bureau

BARKER Kate, 2004. Review of Housing Supply, Delivering Stability: Securing our FutureHousing Needs. Final Report and Recommendations: HM Treasury

BRE, 2003, Assessing the Sustainability of Prefabricated Construction Techniques: BuildingResearch Establishment

BUILD OFFSITE, 2005. Glossary of Terms: Build Offsite

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

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

CML, 2003. Response by the Council of Mortgage Lenders to HM Treasury and Office of theDeputy Prime Minister's Review Team: The Council of Mortgage Lenders

CONCRETE CENTRE, 2004.High Performance Buildings: Using Tunnel Form ConcreteConstruction:Concrete Centre

EGAN John, 1998. Rethinking Construction: Office of the Deputy Prime Minister

EGAN John, 2004. Egan Review of Skills for Sustainable Communities:Office of the DeputyPrime Minister

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

ODPM, 2003. Sustainable Communities: Building for the Future: Office of the Deputy PrimeMinister

ODPM, 2005. Sustainable Communities: Homes for All A Five Year Plan from the Office ofthe Deputy Prime Minister: Office of the Deputy Prime Minister

PARLIAMENTARY OFFICE OF SCIENCE AND TECHNOLOGY, 2003. Modern Methods ofHouse Building. Postnote. 109 (December)

ROSS Keith, 2005. Modern Methods of House Construction. Building ResearchEstablishment

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

THERMALITE, 2005. Thin joint Masonry: Aircrete Building Blocks: Thermalite

Documents

1 Mmc Evolution or Revolution Paper