Modern methods of construction (MMC) is a term used mainly in the UK construction industry to refer to "smart construction" processes designed to improve upon traditional design and construction approaches by focusing on (among other things) component and process standardisation, design for manufacture and assembly (DfMA), prefabrication, preassembly, off-site manufacture (including modular building) and onsite innovations such as additive manufacture (3D printing). While such modern approaches may be applied to infrastructure works (bridges, tunnels, etc.) and to commercial or industrial buildings, MMC has become particularly associated with construction of residential housing. However, several specialist housing businesses established to target this market did not become commercially viable.
History The MMC term started to enter common industry use in the early 2000s following the publication of the Egan Report, Rethinking Construction, in November 1998. An industry task force chaired by Sir John Egan, produced an influential report on the UK construction industry, which did much to drive efficiency improvements in UK construction industry practice during the early years of the 21st century, with its recommendations implemented through initiatives including the Movement for Innovation (M4I) and the Construction Best Practice Programme. However, the emergence of some non-traditional methods substantially predated Egan's report; procurement of prefabricated homes, for example, was a UK government response to housing shortages after both World Wars, the CLASP created prefabricated schools in the late 1950s, and the 1964-1970 Labour government engaged in an "Industrialised Building Drive". MMC has been repeatedly advocated in UK government construction strategy statements including the 2017 Transforming Infrastructure Performance from the Infrastructure and Projects Authority (IPA), the 2019 Construction Sector Deal, the Construction Playbook (2020, 2022), and the IPA's 2021 TIP Roadmap to 2030. The 2022 Playbook and TIP Roadmap also encouraged procurement of construction projects based on product 'platforms' ("Platform Design for Manufacture and Assembly, PDfMA") comprising kits of parts, production processes, knowledge, people and relationships required to deliver all or part of construction projects. A separate publication, the Product Platform Rulebook, published by the Construction Innovation Hub and co-authored by Akerlof Ltd, Mott MacDonald and AtkinsRéalis, outlined stratagies to deliver a platform-based approach. The UK Government has also invested in MMC initiatives and businesses. During the 2010s, as government backing (including via Homes England) for MMC grew, several UK companies (for example, Ilke Homes, L&G Modular Homes, House by Urban Splash, Modulous, Lighthouse and TopHat) were established to develop modular homes as an alternative to traditionally-built residences. From its Knaresborough, Yorkshire factory (opened in 2018, closed in 2023), Ilke Homes delivered two- and three-bedroom 'modular' homes that could be erected in 36 hours. Homes England invested £30m in Ilke Homes in November 2019, and a further £30m in September 2021. Despite a further fund-raising round, raising £100m in December 2022, Ilke Homes went into administration on 30 June 2023, with most of the company's 1,150 staff made redundant, and creditors owed £320m, including £68m owed to Homes England. L&G Modular Homes halted production in May 2023, blaming planning delays and the COVID-19 pandemic for its failure, with the enterprise incurring total losses over seven years of £295m. In November 2023, Homes England loaned £15m to TopHat, another loss-making MMC housebuilder, to fund construction of a factory in Corby; in March 2024, the factory's opening was postponed and the company announced 70 redundancies. MD Andrew Shepherd left TopHat in May 2024. In August 2024, TopHat faced a winding-up hearing after a petition was filed by Harworth, a Yorkshire based property developer, but settled out of court. Also in August 2024, housebuilder Persimmon wrote off a £25m investment in TopHat it made in 2023, due to "a re-assessment of risks within the modular build sector". In October 2024, having accumulated a loss of around £87m since 2016, TopHat confirmed it was winding down its Derby factory operations, with most staff being made redundant. In its penultimate year of trading, TopHat made an operating loss of £46m on turnover of less than £11m. In January 2024, following the high-profile failures of Ilke Homes, L&G Modular and House by Urban Splash during 2022 and 2023, the House of Lords Built Environment Committee highlighted that the UK Government needed to take a more coherent approach to addressing barriers affecting adoption of MMC: "If the Government wants the sector to be a success, it needs to take a step back, acquire a better understanding of how it works and the help that it needs, set achievable goals and develop a coherent strategy." Modulous and Lighthouse went into administration in January and March 2024 respectively. In late March 2024, housing minister Lee Rowley told the Lords Committee that the government would be reviewing its MMC policies in light of the crisis in the volumetric house-building sector. He promised "a full update in late spring once we have undertaken further detailed work with the sector". Following the July 2024 general election, a House of Lords Library report was published in August 2024 ahead of a scheduled debate in September 2024; it said the new Labour government would publish a new long-term housing strategy "in the coming months".
Defining MMC MMC refers to a variety of off-site construction methods:
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