In the face of pressing social and environmental challenges, those of us in the design and construction industry must ask: how can we build faster, smarter and more sustainably?
Like many problems we face as a society, there is no silver bullet. Indeed, Modern Methods of Construction (MMC) offer part of the answer — as part of a suite of approaches that move beyond conventional stick-building.
From panelised prefabricated wall systems and bathroom pods to entire ‘volumetric’ modular buildings, MMC enables elements to be manufactured off-site and delivered ready for assembly.
Prefabrication, a key form of MMC, involves producing components in controlled factory environments before transporting them to site. This approach vastly improves efficiency, safety and quality assurance — but the benefits go far beyond streamlining processes.
By shifting construction into fabrication, MMC has the potential to fundamentally change how we build: helping to meet Australia’s urgent housing needs while reducing environmental impacts. It’s a shift toward an industry that is more adaptable, resilient and sustainable.
Why it’s imperative for the industry to consider MMC
The urgency to adopt MMC is underscored by the scale of Australia’s housing challenge. The federal government has set a target of 1.2 million new homes by mid-2029 — an average of 240,000 per year. Yet ABS data shows just 168,000 homes were delivered in 2024.
With population growth continuing, particularly in urban centres, traditional construction methods alone cannot meet this demand. Productivity pressures, skill shortages and high costs of materials further constrain the industry’s ability to deliver, contributing to this annual shortfall. Increasingly, MMC is being recognised as a key part of the solution.
Because prefabrication works to a consistent elemental type, it allows for far greater precision in material use and can significantly reduce waste. Constructing elements in factory-controlled conditions reduce risk associated with variables such as weather and site delays helping projects to stay on schedule.
Quality control is another major advantage. Prefabrication introduces rigorous checkpoints for each trade, with clear standards and repeatable processes — leading to higher quality outcomes delivered in less time.
In addition, this elevated quality control can be especially leveraged when designing Passivhaus standard onerous airtight envelopes – presenting a synergy between quality, process and a high standard construction outcome.
How Underwood is adopting MMC
In our practice, we see MMC as a powerful tool, but one that must be applied contextually. Prefabrication doesn’t suit every project, particularly in scenarios demanding highly complex architectural form and tectonics.
That said, where there are opportunities for repetition and efficiency — such as in cabins or townhouses — the benefits of modular approaches become clear.
Our work with Parks Victoria at Wilsons Promontory National Park demonstrates this. Commissioned to deliver a series of short-stay accommodation cabins near Tidal River, we identified an opportunity to leverage MMC due to the remote nature of the site and a suitable client brief.
We have designed the cabins to be fully accessible prefabricated structures, built to a high-performance airtight standard and equipped with a Passivhaus-spec heat recovery ventilation system.
The ceiling height and cabin width correspond directly to standard sheet sizes, reducing cuts, minimising waste and improving accuracy. This approach ensures material efficiency and avoids cumulative on-site errors that can occur through even minor discrepancies.
We are now finalising documentation for the cabins to be transported and installed on site. We’ve partnered with engineering specialists Phelan Shilo, whose expertise in modular systems — including complex projects the Formula One has been invaluable. Their insights into lifting and assembly will ensure the cabins are hoisted safely and retain their structural integrity.
We’re also collaborating with a local transportation contractor, specialising in the delivery of modular systems to remote sites. Their understanding of the Gippsland area as a well as the required module dimensions, height clearances and road geometry is critical to ensuring safe and efficient delivery.
Through these collaborations, we’re helping to refine best practice for prefabrication in Australia — and while prefab remains relatively niche, we’re eager to share our learnings with others in the industry to support wider adoption.
MMC adoption – current barriers and opportunities
Widespread adoption of MMC has long been constrained by two main factors: finance and regulations.Traditionally, many lenders required materials and completed works to be physically on site before releasing funds — a model that doesn’t align with prefabrication, where manufacturers must invest heavily in materials and fabrication months before delivery. Encouragingly, we are now seeing financial institutions adapt their frameworks to accommodate this shift.
Regulatory processes are also evolving. Previously, some inspections were often carried out only once building elements were installed on site — far too late to assess modular component works completed in the factory. Building surveyors and the National Construction Code have now introduced provisions for factory inspections of modular chassis, signalling growing institutional confidence in MMC and its long-term role in the industry.
There are also emerging opportunities – on the road to meeting housing demand, somewhat off the beaten track. One promising area is small secondary dwellings — or granny flats. Recent Victorian Government planning reforms now allow for small dwellings on existing titles without lengthy planning permits in most cases, opening new pathways for multi-generational living. This presents huge untapped potential for prefabricated design and assembly, and one that Underwood is actively exploring.
Breaking tradition
In some ways, prefabrication aligns more closely with manufacturing than traditional building. It demands detailed prototyping, precision design, and the complete coordination of structure and services prior to assembly. With this comes a cultural shift — one that replaces the typical industry ad-hoc “she’ll be right” approach with systemised processes, collaboration and quality assurance.
There’s always a moment when the modules arrive on site and everything goes quiet — a collective pause before the pieces lock perfectly into place. This watershed moment represents months of planning, coordination and trust between design, engineering and fabrication teams.
MMC depends heavily on collaboration and teamwork, along the design and delivery process. MMC requires new ways of thinking — across design, manufacturing, financing and regulation — and a shared commitment to circular, resource-efficient systems.
We see prefabrication not as a shortcut, but as a smarter, more sustainable system — one that prioritises precision, longevity and environmental responsibility. I am looking forward to joining fellow industry experts next week at Melbourne Build Expo 2025 – where we will be exploring this topic in more detail
This article was written ahead of Qutaibah Al-Atafi‘s appearance at Melbourne Build Expo 2025 on 23 October, where he will speak on the panel ‘How Offsite Construction is Contributing to the Circular Economy‘.
