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Draft rules, an economic analysis and a proposed definition of prefabricated construction have been released for consultation ahead of a planned 2028 rollout.
The Australian Building Codes Board (ABCB) has released a suite of consultation documents outlining a proposed National Voluntary Certification Scheme for Manufacturers of Prefabricated Construction, providing the clearest picture yet of how a nationally consistent certification framework could operate.
Released for public consultation are a discussion paper, draft Scheme Rules and a draft Economic Analysis, which together set out the proposed framework, the rationale behind its development and the anticipated costs and benefits for manufacturers participating in the Scheme.
The proposed voluntary framework is intended to provide an independent, nationally recognised certification pathway for manufacturers of prefabricated construction while supporting greater consistency across jurisdictions and reducing duplication in regulatory processes.
According to the discussion paper, the Scheme is designed to complement existing state and territory building approval systems rather than replace them. It also introduces a proposed national definition of Prefabricated Construction, intended for inclusion in a future edition of the National Construction Code (NCC), providing a consistent foundation for regulation across Australia.
Focus on manufacturing systems
A defining feature of the proposed Scheme is its emphasis on certifying manufacturing systems rather than individual products.
Unlike conventional product-based certification, the framework is intended to assess a manufacturer’s end-to-end systems and processes, including quality management, factory production control, material traceability, workforce competency, procurement, documentation and change management.
Under the draft Scheme Rules, independent Certification Bodies would assess manufacturers against these requirements before issuing Certificates of Conformity, with certified manufacturers subject to ongoing surveillance audits to maintain their certification.
The framework also proposes a separate pathway for the approval of repeatable building designs through Design Assessment Bodies, creating distinct certification processes for manufacturing capability and design compliance.
Economic analysis released
Supporting the proposed framework is a draft Economic Analysis prepared by Canberra-based 35 South Advisors on behalf of the ABCB.
The report assesses the potential costs, benefits and impacts of the proposed Scheme compared with the current approach to mandatory inspections. It concludes that the proposed framework has the potential to deliver benefits through reduced duplication, more streamlined approval processes, improved regulatory consistency and greater confidence in prefabricated construction, while acknowledging that the modelling is based on assumptions regarding future uptake and implementation.
The analysis separately considers 3D volumetric manufacturers and manufacturers of 2D panelised and kit-of-parts systems, recognising that the commercial benefits are expected to arise through different mechanisms depending on the type of prefabricated construction.
Consultation underway
The ABCB is seeking feedback from manufacturers, regulators, certifiers, designers and other industry stakeholders on all aspects of the proposed Scheme.
Consultation covers the proposed definition of Prefabricated Construction, the draft Scheme Rules and the supporting Economic Analysis. According to the ABCB, stakeholder feedback will play an important role in refining the framework before it is considered by Commonwealth, state and territory building ministers.
Submissions close on 15 September 2026, with the proposed Scheme intended to commence by mid-2028.
Find the ABCB’s National Voluntary Certification Scheme for Manufacturers of Prefabricated Construction HERE
