Doing the groundwork for prefabricated and modular construction

The Australian Building Codes Board (ABCB) has released an issues paper for a national voluntary certification scheme for manufacturers of modern methods of construction, which include prefabrication and modular construction.

As well as seeking input to inform the development of a national voluntary certification scheme, the ABCB is looking to include nationally consistent definitions for modern methods of construction in the National Construction Code.

The Commonwealth has tasked the ABCB with facilitating the start of a national voluntary certification scheme for modern methods of construction in mid-July 2028. This initiative is part of a bigger push to improve productivity, especially in building and construction.

According to the ABCB, conventional building certification processes and inspection regimes currently limit the productivity benefits that prefabricated and modular construction can deliver. These regimes were developed for traditional construction that is built onsite, and while they can serve their purpose well for this type of construction, they present challenges for prefabricated and modular buildings that are manufactured offsite and transported to a building site for installation.

Prefab productivity boost

Productivity Commission analysis reported that prefabricated and modular construction can make homes 50% faster and 20% less expensive to construct. The ABCB notes that prefabricated and modular construction can also offer improved certainty, safety, quality and environmental sustainability benefits.

The national voluntary certification scheme, together with NCC definitions for modern methods of construction, aim to provide a consistent national regulatory approach that will offer more certainty and make it easier for manufacturers of prefabricated and modular construction to meet NCC requirements and manufacture buildings.

According to the ABCB, this can speed up housing delivery and boost construction productivity, helping to address Australia’s issues with housing affordability and supply.

What’s in the issues paper?

The issues paper provides context on why the national voluntary certification scheme and the consistent NCC definitions need to be developed. It contains background information about modern methods of construction, including the issues, benefits, challenges and current state in Australia and other countries.

The paper sets out the principles of the scheme, as well as proposed options and other details that could be included. There are questions throughout the paper, encouraging stakeholders to provide input. 

To read the issues paper and provide feedback, visit the ABCB Consultation Hub. The consultation is open for feedback until August 29, 2025.

Image courtesy of Sekisui House

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