ABCB Responds to Built Offsite’s Questions on Australia’s MMC Certification Scheme

The construction sector is awash with companies describing their systems, products and workflows as “modern methods of construction”, yet Australia still has no nationally agreed definition of what MMC actually is. As activity accelerates — from modular housing programs to state procurement initiatives and digital manufacturing investments — the absence of clear terminology and consistent approval pathways is creating uncertainty for manufacturers, regulators and clients. (main image: Plenty of hands in the MMC space, but still no agreement on what MMC actually means.)

Against this backdrop, Built Offsite sought written clarification from the Australian Building Codes Board (ABCB) on the status of its national voluntary MMC certification scheme and the development of formal MMC definitions for the National Construction Code (NCC). The ABCB’s responses confirm the strength of the policy mandate, underwritten by the National Competition Policy and Commonwealth funding, but also underline that many operational and technical elements remain at an early stage of development.

What follows is the ABCB’s full written response to questions submitted by Built Offsite, addressing national harmonisation, MMC definitions, international alignment, digital enablement and the expected timeline for public consultation.

Full Q&A: ABCB responses to Built Offsite
(Verbatim responses as provided by the Australian Building Codes Board on 21 November 2025.)

1. National reform alignment
How does the proposed National Voluntary Certification Scheme for MMC manufacturers align with the broader national reform agenda funded through the National Productivity Fund, particularly the aim of improving housing supply and construction productivity?

The National Competition Policy adopts a holistic view of the challenges requiring regulatory reform around construction industry productivity and housing supply. As part of the policy, the Australian Government allocated $54 million in the 2025-26 Budget for prefabricated and modular housing. Of this, $49.3 million will be invested by states and territories to boost local prefabricated housing programs. Another $4 million is funding the ABCB to develop 2 projects aimed at reducing barriers to modern construction methods. The 2 specific deliverables for the ABCB to facilitate are in response to Reform B9 – Modern Methods of Construction outlined in the National Competition Policy Federation Funding Agreement. The deliverables are:

Project 1: Legislate nationally consistent definitions through the NCC of prefabricated and modular construction, and

Project 2: Develop and implement a national voluntary manufacturer certification Scheme to verify compliance with the NCC and ensure a chain of responsibility between offsite and onsite construction.

The Scheme aims to address three key barriers to the adoption of MMC, which are consistent definitions for MMC and conventional building certification and inspection regimes. While these can be well suited for traditional construction, they have presented challenges for MMC. Other reforms for reducing barriers to MMC are outlined in the NCP Federation Funding Agreement, available here: Revitalising National Competition Policy | Treasury.gov.au.

2. Role of MMC in improving delivery outcomes
How does the ABCB see modern methods of construction contributing to Australia’s housing targets, construction-sector productivity, and the increased adoption of prefabricated and modular systems?

MMC is one of several key measures capable of contributing to meeting housing targets and construction-sector productivity. The benefits of MMC in increasing construction productivity are well known.

MMC has the potential to support faster delivery of quality buildings and increase productivity in the construction sector.

The Productivity Commission reported that prefabricated and modular construction can reduce the cost of homes by up to 20%. Prefabricated and modular homes can be up to 50% faster to construct than homes built using traditional methods of construction.

MMC technologies encourage increased productivity and efficient building processes, resulting from greater speed and accuracy. Prefabricated and modular construction can also offer improved certainty, safety, quality and environmental sustainability benefits.

In Australia, prefabricated buildings make up approximately 8% of residential and commercial building construction.

Countries like Japan, Sweden, Germany and Singapore are already leading the way with well-established prefabricated construction. In Sweden, 95% of new multi-dwelling buildings are constructed using prefabrication, while it makes up 26% of new houses in Germany and over 39% of construction in Singapore. These countries are already seeing the benefits of prefabricated construction and further increasing its role in housing delivery.

3. National harmonisation across jurisdictions
How is the ABCB approaching national harmonisation of MMC-related definitions, approval pathways and responsibilities across states and territories for inclusion in future editions of the National Construction Code?

The ABCB has worked closely with industry representatives and jurisdictional regulators to develop nationally consistent definitions for MMC. These draft MMC definitions are expected to be available for public consultation later in 2026, alongside the proposed framework for the manufacturer certification Scheme. The definitions will be inserted into the NCC at an appropriate future time to implement the Scheme.

4. Defining modern methods of construction
How does the ABCB intend to define modern methods of construction within the National Construction Code?

Will the definition be based on specific technologies (such as modular, panelised or volumetric systems), performance outcomes, or another classification model?
What principles will guide the development of a nationally consistent MMC definition, and how will that definition be applied within compliance and approval pathways?

It is too early to comment on the details of the proposed nationally consistent definitions, as they will link closely to the Scheme framework which is still under development and yet to be consulted on publicly. Consultation is expected to occur later in 2026.

The principles which will guide the development of the Scheme and definitions are outlined in ABCB’s issues paper, which is available for viewing here: National Voluntary Certification Scheme for Manufacturers of Modern Methods of Construction – Australian Building Codes Board

5. International alignment and export potential
What international MMC standards or certification frameworks is the ABCB referencing in its development of the Scheme, and to what extent could alignment support export opportunities for Australian manufacturers?

The ABCB is working with Standards Australia to discuss alignment with standards both domestically and internationally. The ABCB will explore the use of existing standards where they are available and align with the purposes of the Scheme.

While there may be growing opportunities for exporting MMC components, the immediate focus of the Scheme – and where the greatest opportunity lies – is its potential to contribute to increasing housing supply in Australia.

6. Traceability, transparency and accountability
The issues paper highlights transparency, traceability and accountability as core objectives. How does the ABCB envisage these being implemented in practice for offsite manufacturers participating in the Scheme?

It is too early to comment on this as the Scheme framework is still being developed. Public consultation on the draft Scheme framework is expected to occur later in 2026, which will address these issues.

7. Quality assurance requirements
What quality assurance expectations or audit processes are being considered for manufacturers who opt into the voluntary Scheme, and how will these interact with existing NCC compliance obligations?

8. Practical use of the certification mark
How does the ABCB anticipate the certification mark will function in practice? For example, how will certified manufacturers demonstrate compliance, and how will this be recognised by regulators, certifiers and clients?

9. Benefits for participating manufacturers
What does the ABCB identify as the primary practical benefits for manufacturers who participate in the Scheme, particularly in relation to streamlined approvals, reduced duplication and increased certainty during delivery?

Please refer to the FAQs on MMC available at: Modern Methods of Construction | ABCB .
In addition to a streamlined pathway to NCC compliance, Scheme participants will benefit from increased recognition and confidence in their MMC systems. They may also gain a competitive advantage for public procurement and broader market access.

10. Responsibility allocation between factory and site
How is the ABCB proposing to allocate and document responsibilities between offsite manufacturing activities and onsite construction activities as part of the certification framework?

11. BIM-compliant open-source kit-of-parts
Is the ABCB considering the development of a BIM-compliant, open-source kit-of-parts library as part of its MMC reform work?

For example, is there any intention to create an online resource where standardised MMC elements or assemblies can be downloaded in common BIM formats and imported directly into project models?

It is too early to comment on this as the Scheme framework is still being developed. Public consultation on the draft Scheme framework is expected to occur from mid-2026, which will address these issues.

12. Consultation status and next steps
Now that the consultation period has concluded, what are the ABCB’s next steps in progressing the MMC certification Scheme? For example, are pilot activities, staged implementation, further technical guidance or additional rounds of industry engagement planned?

Please refer to the timeline outlined in the issues paper. ABCB is on track to meet the key project milestones. There will be future opportunities for public consultation on the draft Scheme framework and definitions later in 2026.

Find the ABCB HERE