Modern methods of construction for social housing

The Modern Methods of Construction (MMC) program is part of the Essential Housing Package announced in 2023-24 by the NSW Government.

The program aims to show how we can use MMC to deliver quality and permanent social homes faster.

About MMC

MMC is not a single approach to construction. It is a collection of ‘methods’ to plan, design, and build that differ from traditional onsite builds. It considers the evolving workforce, supply chain and advanced technological landscape.

These methods include:

• prefabrication
• off-site manufacturing
• modular or volumetric dwellings
• new technologies such as:
  • 3D printing
  • robotics
  • artificial intelligence (AI).

Benefits of using MMC in housing

Benefits of using MMC in housing include:

• reduced construction time to deliver new homes
• factory controlled settings to improve quality.
• flexibility and adaptability of designs.
• predictability and ability to better plan contingencies. For example, reducing delays due to bad weather or other unexpected events.
• sustainability, waste minimisation and eco-friendliness
• reducing impact and disruption for neighbours and the community.

Design excellence using MMC

Homes NSW is currently working with industry on the use of architect-designed MMC permanent homes that are compliant with:

• National Construction Code (NCC) including 7 Star NatHERS rating
• Building Sustainability Index (BASIX)
• Homes NSW specific design requirements.

Who we are working with

We work with the Government Architect of NSW and the NSW Building Commission to ensure best practice design and building regulation compliance.

We are also working with:

• industry experts
• suppliers
• peak bodies
• architects
• tenants
• community representatives

to shape our final designs, raise standards, and deliver quality accessible products on an ongoing basis.

The MMC taskforce

The NSW Government MMC taskforce (the taskforce) provides advice, takes feedback and facilitates dialogue about MMC.

For more information, visit the taskforce webpage.

Choosing designs

Architects and builders must follow the design requirements in our good design for social housing guide.

Designs are chosen to ensure:

• future proofing
• longevity
• liveability
• ease of maintenance
• adaptability
• comfort.

Climate considerations for designs

Home designs will integrate contemporary passive design to:

• ensure tenant comfort
• reduce ongoing operational costs
• improve environmental performance
• move towards delivery of net zero ready homes.

Research and development in MMC

Homes NSW is working with the Building 4.0 Cooperate Research Centre (CRC) to demonstrate how MMC can be adopted to deliver more medium density social housing homes.

Building 4.0 CRC is an industry-led research initiative co-funded by the Australian Government. Read more about the Homes NSW MMC research and development (R&D) program.
 

Building the right kind of homes: demonstration projects

Using MMC can provide permanent housing in locations that match changing tenant demographics and needs. For example, the increasing need for smaller homes.

The MMC demonstration projects aim to deliver approximately 13 homes as part of the secondary dwelling demonstration projects in 2025 and 2026. Further projects will include medium-density projects. They will not include any form of temporary or short-term solution products such as tiny homes on wheels or caravans.

These demonstration projects will help us decide on the most suitable and appropriate integration of MMC. 

Homes for key workers in rural and remote areas

Homes NSW supports rural and remote communities by providing and maintaining housing for key workers.

Rural and remote communities experience challenges including:

• trade shortages
• access to labour
• material availability.

MMC offers opportunities to build high quality, climate-responsive permanent homes faster.

Getting involved with Homes NSW MMC projects

The ongoing successful delivery of good homes in NSW needs support across housing, construction, and supply chain sectors.
 

We look forward to hearing from suppliers, builders and developers interested in working with Homes NSW.

The MMC procurement list

Our SCM5862 Modern Methods of Construction procurement list covers products and services for residential development across the following manufacture supply categories:

• pre-manufactured 3D primary structural systems (volumetric or modular)
• pre-manufactured 2D primary structural systems (kit of parts)
• additive manufacturing
• pre-manufactured: non-structural assemblies and sub-assemblies.

We also seek information from applicants about:

• delivery and transport services (of the products)
• site connection or installation (of the products)
• different dwelling types that can be delivered using these products.

Homes NSW will use this list to select potential suppliers and manufacturers for its MMC opportunities. Prequalified applicants on other whole of government construction procurement schemes are welcome but need to to apply to our list and address MMC-specific requirements.

Where to find open opportunities

You can find all open opportunities advertised on the Buy NSW Opportunities Hub. These include requests for tender and procurement list applications.

Application requirements for SCM5862 are detailed in the Applicant Guidelines and Conditions for Participation on the registration page.

Timeframe for procurement list

The procurement list is open for 3 years until 1 May 2027. Suppliers can apply at any time during this period.

More information about MMC

More information about the MMC projects is available from our market briefing session held on 30 May 2024. View the session recording or read the participant Q and A sheet.

If you have any more questions about MMC or procurement, get in touch via our contact form.