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Chancellor gives another push to modern methods of construction - MMC

View profile for Tom Pemberton
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Treasury documents published after the Chancellor’s Spring budget speech announced a package of support for modern methods of construction (MMC), which broadly consist of a package of techniques to drive efficiencies in construction, including off-site manufacturing and rapid methods of assembly on-site.

A taskforce consisting of world-leading experts from across government and industry will be established by the  Ministry of Housing, Communities and Local Government (MHCLG), with seed funding of £10m to accelerate the delivery of MMC homes in the UK. The taskforce will be based in the MHCLG’s new offices in Wolverhampton and will work closely with regional authorities and mayors, providing support in the achievement of national house-building targets.

The Chancellor also announced a “super deduction” tax break, which will incentivise businesses to invest in the plant and equipment needed for the MMC factory production processes.

The announcement is to be welcomed as MMC is a key component of the strategy spelt out by government in the Construction Playbook to achieve a greener and more efficient construction industry.  The new measures will increase the drive towards MMC which had already been gathering momentum, following the government’s appointment of Mark Farmer as an MMC champion in 2019, and the investment of substantial sums in MMC housing projects to date.

Goodman Derrick’s construction team has advised a number of clients in relation to their participation in MMC projects, and looks forward to the adoption of a new generation of smart contracts using modern IT methods to contribute to the drive towards greater efficiency in the construction industry generally.

Tom Pemberton

Tom has many years’ experience of advising clients involved in the procurement, management, design and delivery of high profile building and infrastructure projects in the UK and internationally in the transport, energy, power, waste, process engineering, leisure, residential, retail and office accommodation sectors. He specialises in drafting and negotiating development agreements, construction contracts, professional appointments, collateral warranties, guarantees, bonds, direct agreements and other ancillary documentation. Tom works closely with clients to identify their objectives and the risks associated with the project, and takes a pragmatic approach to drafting and negotiating contract terms to support the achievement of a successful outcome. 

Goodman Derrick - Construction

Goodman Derrick has a strong cross-departmental Construction Group that provides contentious and non-contentious advice to property owners, developers, contractors and consultants, the group:

  • provides a comprehensive construction law service, from project beginning to end
  • draws on its knowledge of the construction industry, built up over many years
  • works extensively in the UK and internationally
  • takes pride in its ability to offer practical and commercially sound solutions

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More information

This guide is for general information and interest only and should not be relied upon as providing specific legal advice. If you require any further information about the issues raised in this article please contact the author or call 0207 404 0606 and ask to speak to your usual Goodman Derrick contact.