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UK housing developer informs government inquiry that Category 1 modular housing is too expensive due to modular builders’ start-up costs.
One of the UK’s largest developers within the housing association sector has stated that they are not commissioning Category 1 modular homes, citing unworkable costs, which could be up to 50% higher than those of traditional projects.
Katie Gilmartin, head of business development and innovation at the 48,000-home group Platform, provided evidence to the House of Lords Built Environment Committee inquiry into modern methods of construction (MMC) last Tuesday. She revealed that Platform currently has no Category 1 volumetric homes in its development programme due to the lack of viable opportunities. (See below for UK MMC category definitions.)
Platform, ranking among the top 20 developers in the housing association sector last year and targeting 1,600 starts annually, finds the costs of volumetric construction methods unfeasible. Gilmartin expressed to the Peers that the costs associated with volumetric methods, as per their viability appraisals, are not practical.
However, Gilmartin was clear in her affirmation of Platform embracing Category 2 MMC: “That is why the opportunities that Platform is pursuing currently are all entirely Category 2. Category 2 is also easier to deliver via pre-existing partnerships, under contracts that we have had already; it is just a shift in construction methodology. Volumetric (Category 1) is an entirely different process from beginning to end, so the costs of volumetric for us in the way we appraise and look at the viability of an opportunity are not workable.”
The inquiry takes place amid notable failures in the Category 1 MMC sector this year, with companies like Ilke Homes entering administration and Legal & General ceasing new home production at its large modular factory. These firms faced challenges such as high initial factory costs, difficult market conditions, planning complications, and limited demand.
Gilmartin suggested that the early adopters are bearing the brunt of these initial costs, as Category 1 providers pass them onto clients. She noted the importance of who is willing to absorb these increased costs to help the sector achieve critical mass.
Commenting on MMC in general, Gilmartin said, “As I said at the beginning, we are broadly using MMC where we want to deliver a more energy-efficient, higher-quality home for our customers. We are getting enhanced new values and improved air tightness. In some instances, we are seeing notable programme delivery efficiencies.”
See: https://committees.parliament.uk/event/19945/formal-meeting-oral-evidence-session/
See: https://www.platformhg.com/
Category 1: 3D Primary Structural Systems (Volumetric Construction)
This category includes modular or volumetric construction, where entire rooms or sections of a building are pre-manufactured in a factory and then transported to the construction site for assembly. These modules can be made of various materials like steel, timber, or concrete, and are often fully finished with internal fittings and fixtures before being delivered to the site.
Category 2: 2D Primary Structural Systems (Panelised Construction)
This involves the production of flat panel units in a factory, which are then transported to the site for assembly into a structural frame. Different materials such as timber, steel, or concrete can be used. This method is often used for walls, floors, and roofs, and the panels can come with services, windows, doors, and internal finishes pre-installed.
Category 3: Non-Systemised Primary Structural Systems
This category refers to innovative structural systems or components that don’t fall under the traditional volumetric or panelised construction methods. It can include new methods of site construction using modern techniques, or hybrid systems combining traditional and innovative methods.
Category 4: Additive Manufacturing (3D Printing)
This emerging category involves the use of 3D printing technology in construction. It can include printing components or entire structures using materials like concrete. This method is still relatively new but holds potential for significant time and material savings.
Category 5: Auxiliary Components
This includes prefabricated auxiliary systems such as pre-made bathrooms or kitchens (often referred to as ‘pods’), mechanical, electrical, and plumbing systems, and other factory-manufactured components that are integrated into the building on-site.
Category 6: Non-Structural Assemblies and Sub-Assemblies
This category encompasses various pre-manufactured non-structural elements and sub-assemblies. This could include façade systems, balconies, and staircases, which are manufactured off-site and then installed onto the building structure.
Category 7: Site Process-led Innovations
The final category involves innovations in site-based construction processes. This can include the use of advanced techniques, materials, or equipment that improve the efficiency, sustainability, or performance of on-site construction activities.
