What would you do to incentivise MMC in the UK house building sector?

Question

The attached article in CIOB's Construction Manager publication by Ian Atkinson of Womble Bond Dickinson sets out 5 reasons why MMC is failing to gain significant market share in the UK house building sector.

Tom Spilsted · Answer

Greater uptake on MMC is crucial to delivering more housing and modernising our industries approach, however this article in Construction News does show some of the issues faced by developers and main contractors alike. Many MMC manufacturing companies do not appear to have sufficient capital or long term investors for the business to flourish. This then drives demands for greater protection measures like higher retention and bonds which in turn throttle the cash flow.
As with the Ministry of Defence SLAM programme a few years ago the key to success is to have a clear forecast of units required to be built that then allows manufacturers to prepare and obtain the necessary funding. Also forward purchasing by the Client helps significantly.

https://www.constructionnews.co.uk/financial/liquidated-modular-specialist-faced-hotel-defect-costs-16-08-2021/?eea=RU54bmFHa2VSR05ONUJqM29jb0ZCaWJyclRDNjJDWkg5aXkxMHpOMkYybz0%3D&utmsource=acs&utmmedium=email&utmcampaign=CONECNEDISUBSBreaking160821&deliveryName=CONECNEDISUBSBreaking_160821

What would you do to incentivise MMC in the UK house building sector?

Offsite-Manufacturing

MMC

housebuilding

Steve Hardy

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