Wates and Hill nab spots on £800m MMC framework

Wates and Hill Holdings are among 22 firms that have taken spots on a four-year housing framework focusing on modern methods of construction (MMC).

The Integrated Traditional Build & MMC framework will cover 37 different regions of England and Wales for a range of projects, including low and medium rise housing, apartments and extra care homes.

Wates’s residential arm, Hill and Seddon were all named on the £800m framework (see full list of contractors below).

Of the 22 firms, 20 are traditional contractors while and the other two (Enevate Homes and Agile Property and Homes) are specialists in modern methods of construction (MMC). The framework is being led by Procurement for Housing (PfH) and Building Better, an alliance of housing associations backed by the National Housing Federation (NHF).

PfH and Building Better said they set up the framework after social housing organisations said they wanted local, traditional building firms to lead MMC housing programmes.

PfH technical manager for construction and sustainability Tony Woods said: “Over recent years we’ve seen MMC companies focusing more on manufacturing their systems rather than providing a turnkey service.”

He added that it “makes sense” to bring in traditional local builders to manage the MMC projects and deliver the traditional works.

“All 22 firms are experienced lead contractors, and often have a relationship with social housing providers already,” he added. “This framework provides councils and housing associations with a compliant route to procuring principal contractor services for MMC sites.”

According to construction data provider Glenigan, there has been a gradual rise in the proportion of projects using MMC techniques. While around 9 per cent of new-build projects starting in 2017 used MMC techniques, that rose to 17 per cent in 2022 and 16 per cent in 2023.

In an interview with Construction News, Laing O’Rourke chief executive Cathal O’Rourke backed his firm’s commitment to offsite construction, arguing that it “provides better certainty and outcomes on projects for customers”.

Last week, housing communities and local government minister in the Lords, Baroness Taylor of Stevenage, said in a House of Lords debate that “it is time to realise the great potential of modern methods of construction”.

But she added: “[There is a need] for a steady pipeline of demand […] which is currently hampered by a lack of certainty in the planning system and the cyclical housing market.”

The MMC sector has struggled in the past few years, with multiple expert firms, including Ilke Homes, Caledonian Modular and Urban Splash going under, despite substantial financial support from the government. The firms blamed expensive front-end costs and the need for a consistent demand.

In January, a House of Lords committee criticised the government for lacking a clear strategy when it invested in MMC firms.