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Supply-only contract clarifies Modscape + Modbotics’ role amid site failures.
Demolition activity has commenced at the $426 million social and affordable housing development in Woree, Cairns, with modular units deemed beyond repair now being dismantled and sent to landfill.
The project, announced in 2023, was intended to deliver 490 homes as Queensland’s largest social and affordable housing precinct, targeting older residents and those seeking to downsize. It is being delivered through a consortium led by Tetris Capital, with Community Housing Queensland involved as a provider and FCC Construction Australia as head contractor.
A total of 1,008 volumetric modules were manufactured in Victoria and transported to site as part of the delivery strategy.
However, a portion of the installed modules has sustained extensive water damage after being exposed to unseasonal rain events during construction, with affected units now being removed from site and sent to landfill.
Queensland Minister for Housing and Public Works Sam O’Connor said efforts were underway to manage the situation without financial impact to the public.
“We’re doing everything we can to make sure this is not going to be a burden borne by taxpayers,” he said.
“We can’t control extreme weather events like this, but we can control the way these projects are contracted.”
The damaged modules are expected to be subject to insurance claims. Replacement modules have been sourced and are currently being held off-site ahead of delivery to the project.
Construction is expected to resume at scale toward the end of April, although a revised completion date has not been confirmed.
Responsibility for installation and protection sits outside modular supply scope
Modscape + Modbotics, which manufactured the modules, has a published project page on its website confirming it was engaged under a supply-only contract covering production and delivery to site.
“Modscape + Modbotics was engaged under a supply-only arrangement to manufacture and deliver 1,008 volumetric timber modules to site,” the company’s project page states.
“Each module is inspected and certified as compliant before departure. Modules are again inspected on arrival to site by both Modscape + Modbotics and the head contractor, FCC Construction. All modules delivered to site for this project have met compliance.”
On the allocation of responsibilities, the page states: “Under this supply-only contract, responsibility for installation, temporary weather protection, and permanent roofing rests with the head contractor, FCC Construction.”
It is understood the modules were delivered without roofs installed, with roof structures intended to be completed on site as part of the construction sequence.
Issues associated with the on-site construction stage left installed modules exposed to weather, with site footage previously showing water ingress through ceilings and internal fittings.
The project has drawn attention across the offsite sector due to the scale of deployment and the extent of remediation now underway. While modular construction was selected to accelerate delivery and improve consistency, the outcome highlights the reliance on coordination between factory output and on-site construction sequencing.
The Woree development remains one of the largest applications of modular housing in Australia, involving multiple stakeholders across financing, manufacturing, and construction. The current demolition and replacement process is expected to prompt closer scrutiny of contractual interfaces, site protection responsibilities, and delivery sequencing on large-scale modular projects.
