The Australian Government has tasked the Australian Building Codes Board (ABCB), as part of National Competition Policy reform, with developing a national voluntary certification scheme for manufacturers of prefabricated construction. Building Ministers see prefabricated and modular housing as a potential solution to support the increase and supply of new housing. The scheme will provide a consistent national regulatory approach for the production of prefabricated buildings and reduce some of the regulatory barriers to housing delivery.
The ABCB is working with industry and governments to develop and deliver the scheme, along with nationally consistent definitions of prefabricated construction to be included in the National Construction Code (NCC).
These initiatives will make it easier for manufacturers of prefabricated and modular construction to manufacture buildings that meet NCC requirements.
Modern methods of construction
Modern methods of construction (MMC) refers to a range of construction methods that are different to traditional onsite construction. This includes prefabrication, off-site manufacturing, and modular or volumetric dwellings, as well as new technologies such as 3D printing, robotics, and artificial intelligence.
MMC have the potential to support the delivery of higher 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.
Resources
The ABCB has produced and updated 3 handbooks to help practitioners understand and implement Modern Methods of Construction.
- Prefabricated, modular and offsite construction handbook (published November 2024)
- Evidence of suitability handbook (published September 2024)
- Performance Solution Process handbook (published September 2024)
Further information
Read the latest news on this project in our September 2025 CEO Update.
Read the March 2024 Building Ministers' Meeting Communique.
Read our Modern Methods of Construction FAQs.