The NSW government is moving to partner with private construction companies to build a dedicated modular housing facility, aiming to deliver more homes faster and at lower cost.
Planning Minister Paul Scully told reporters, according to ABC News, that tenders for a Modern Methods of Construction Innovation Facility will open in coming weeks, ahead of the state budget on Tuesday. The facility would assemble large room sections off-site before transporting them to development sites across the state.
“There can be savings of up to 20 per cent in time, and 50 per cent in cost when it comes to using modern methods of construction,” Mr Scully said.
No dollar figure has been attached to the plan. Mr Scully said government support could take several forms, including an equity stake, land, or training. The facility would focus on medium-density housing components and operate within the state’s housing pattern book, which lets developers bypass lengthy design and approval processes.
Premier Chris Minns said the housing crunch demanded a change in approach. “The way we build homes has barely changed for generations,” he said. “The housing pressures facing NSW demand new thinking, new technology and new solutions.”
Mr Scully said the aim was to establish multiple facilities around the state rather than a single site, opening the door to more participants. For trades workers, the model could shift where construction work is done, with portions of carpentry, fit-out and other work moving from building sites to factory floors.
Frequently asked questions
What is a Modern Methods of Construction Innovation Facility?
It is a factory where large sections of rooms or homes are pre-assembled off-site, then transported and installed at development sites, reducing on-site construction time.
How much will the NSW modular housing facility cost?
No dollar figure has been announced. The government says support could include an equity stake, land, or training, with the final structure to be determined through the tender process.
When will the tender open?
The NSW government says the tender will open in coming weeks, with the announcement made ahead of the state budget.
What does this mean for tradies and construction workers?
Some carpentry, fit-out and related work would shift from building sites to factory floors, changing where and how a portion of construction work is carried out.
Sourced from ABC News. Original article.