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You are at:Home » £400m off-site housing deal at stake
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£400m off-site housing deal at stake

Machinery AsiaBy Machinery AsiaNovember 29, 2023No Comments2 Mins Read
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A frame supplier has announced £400m of off-site residential construction work.

Warrington-based Procurement for Housing said the deal would be split into two lots – one covering low-rise units such as bungalows and the other focusing on apartment blocks.

The social housing specialist, which is backed by the National Housing Federation and the Chartered Institute of Housing, hopes the framework will boost the use of modern construction methods (MMC) in the sector.

It aims to appoint a supplier for the first batch of £200m over a four-year period, which could be doubled through extensions.

The contract notice adds that a single contractor will also be appointed for the second £200m tranche, which has the same timescales.

Companies have until January 5 to express their interest in the work.

Any registered social landlord or other public bodies that join Housing Contracting during the life of the framework can use it to find contractors. Individual works could be awarded turnkey or supply only, as well as agreed variations.

Prime contractor figures told a parliamentary committee last week that the cash flow model used in public procurement was not fit to promote MMC.

The offsite sector has had a series of setbacks in recent times.

Legal & General Homes Modular, which launched in 2016 with plans to “modernize the housebuilding industry”, this month said it will end in June 2025.

Urban Splash’s modular spin-off went into administration in May 2022, citing operational problems at its Alfreton factory, while Midlands-based manufacturing specialist Caledonian Modular collapsed in March passed before being bought by JRL a few weeks later.

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