Home » MMC costs set to drop by a third says new report

MMC costs set to drop by a third says new report

by Sion Geschwindt
MMC costs set to drop by a third says new report

Constructing Excellence has revealed a new report suggesting that costs associated with modern methods of construction (MMC) could fall by a third as demand grows.

The report, created in collaboration with BRE, Rider Levett Bucknall (RLB), and Bristol City Council, finds that MMC costs are currently around £3,000 per m2, due to typically small volumes and short pipelines for manufacturers.

However, as manufacturers scale up and pipelines lengthen, it concludes that costs could fall to around £2,000 per m2.

The report also found that the average build is 72 weeks for a house built using MMC compared to 112 weeks for one built using traditional methods.

The report also looks to define key performance indicators (KPIs) for MMC – which have previously been unavailable – and benchmark these against existing housing delivery models, to quantify the benefits.

The KPIs identified by BRE include cost, time, quality, health and safety, labour requirements, environmental impacts, and local disruption.

As a follow-up to this report, Constructing Excellence is now planning to convene an MMC Group which will enable it to take ownership of gathering and measuring this KPI data across manufacturers and builds to drive further development in the sector.

Quantifying MMC benefits

Alison Nicholl, Head of Constructing Excellence, said: “It is clear that the prominence of MMC is growing, accelerated by the growing need to rethink our approach to construction to meet pressing delivery challenges.

“However, my view is that if we are going to truly advance the adoption of MMC and make it mainstream, we need to develop a much more tangible benefits case based on real data and evidence, not just warm words and positive sentiment.

“What is already clear from this research is that delivery speed and qualitative benefits of MMC use are compelling which in turn leads to wider linked economic and societal benefits.”

Richard Quarry, Partner and Head of Affordable Housing at Rider Levett Bucknall, added: “As we see MMC now becoming embedded within the residential sector, especially for our affordable housing Clients, this report is extremely timely.

“As well as demonstrating the benefits through time savings and build-quality improvements and addressing site labour shortages, focusing conversations around data capture and a rounded set of KPIs to quantify benefits will help to embed processes and drive further adoption.”

Traditionally KPIs for MMC have been difficult to measure due to a lack of or limited data available on the impacts of this method of construction.

As a result, only 15,000 UK homes are currently factory-made each year, compared to the Government’s annual target of 300,000.

It is estimated that around 3.9m homes are required to meet current and future demand for UK housing. The consensus is that these construction targets cannot be met without the extensive use of MMC.

Image credit: brizmaker/Shutterstock

Read next: Welsh contractors deploy MMC for net-zero homes

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