Modern Methods of Construction (MMC) refers to a wide variety of construction methods that are different to traditional onsite construction. MMC, including prefabricated and modular building technologies, has the potential to support the delivery of higher quality buildings and increase productivity in the construction sector.
The Australian Building Codes Board (ABCB) has been tasked by the Australian Government to work with industry and governments to develop guidance that facilitates the increased use of prefabricated and modular construction technologies in Australia that are compliant with the National Construction Code (NCC).
Explore the FAQs on this page to learn more.
Why is the ABCB developing a voluntary scheme for manufacturers of prefabricated construction?
The Australian Building Codes Board (ABCB) has been tasked by the Australian Government, as part of National Competition Policy reforms, to facilitate the commencement of a national voluntary certification scheme for manufacturers of prefabricated construction (the Scheme) in mid-2028.
The Scheme, together with National Construction Code (NCC) definitions for prefabricated construction, aims to provide a consistent national regulatory approach for the production of prefabricated buildings. These initiatives will provide more certainty and make it easier for manufacturers of prefabricated and modular construction to meet NCC requirements and manufacture buildings. This can help speed up housing delivery and support construction productivity.
In July 2025 the ABCB released an issues paper which provides further context on why the Scheme and consistent NCC definitions need to be developed.
For more information please see: National Voluntary Certification Scheme for Manufacturers of Modern Methods of Construction - Australian Building Codes Board
What are the benefits of prefabricated and modular construction?
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% times faster to construct than homes built using traditional methods of construction, helping to provide homes more quickly. Prefabricated and modular construction can also offer improved certainty, safety, quality and environmental sustainability benefits. The construction industry is recognising and responding to the opportunity modern methods of construction presents.
Does the ABCB have any resources on understanding and implementing modern methods of construction?
Yes, we have developed a Prefabricated, modular and offsite construction handbook and an Evidence of suitability handbook.
Is participation in the Scheme mandatory?
No, the Scheme is voluntary. Therefore, existing methods of compliance with the NCC will remain valid. The Scheme is intended to be a streamlined alternative pathway for manufacturers to demonstrate compliance with the NCC and to build consumer confidence in prefabricated systems as an alternative to traditional construction methods.
When will the Scheme be available?
The Scheme is expected to be available for manufacturers by mid-2028. However, this timing is indicative only and may change following further consultation with stakeholders. Updates will be announced as the Scheme develops.