Modern methods of construction (MMC)
Modern methods of construction (MMC) refer to innovative building techniques that aim to improve efficiency, quality, and sustainability in construction. These methods often involve offsite manufacturing, modular construction, and the use of advanced materials and technologies.
A MMC toolkit has been developed to support opportunities in MMC and healthcare and meet the requirements for capital funding on projects/programmes over £25 million. The NHS is required to use this published version of the MMC toolkit to assess and submit the percentage of MMC being utilised on a project as part of the business case approval process. There is a requirement to demonstrate a threshold of 70% MMC for new build and 50% MMC for refurbishment projects within business cases submitted for approval.
The Infrastructure and Projects Authority (IPA) has published several documents and articles on MMC. These publications highlight the importance of MMC in improving efficiency, quality, and sustainability in construction projects. For detailed guidance from the UK government, you can refer to the official document on Modern methods of construction (MMC1) – GOV.UK
MMC are particularly important for the NHS as they deliver:
- Speed and efficiency: MMC allows for faster construction times, which is crucial for addressing urgent healthcare needs. For example, modular buildings can be quickly assembled to provide additional capacity during times of high demand.
- Cost-effectiveness: These methods often result in cost savings due to reduced labour and material costs. This is especially beneficial for the NHS, which operates under tight budget constraints.
- Minimising disruption: MMC can significantly reduce the disruption to existing hospital operations. Since much of the construction is done off-site, there is less noise, dust, and general disruption to patients and staff.
- Quality and safety: The controlled environment of off-site construction ensures higher quality and safety standards. This can lead to better patient outcomes and a safer working environment for healthcare staff.
- Sustainability and net zero: MMC often involves the use of sustainable materials and methods, which can help reduce the carbon footprint of healthcare facilities. This aligns with the NHS’s goals of becoming more environmentally friendly.
These benefits make MMC a valuable approach for modernising and expanding healthcare infrastructure, helping to ensure that facilities can meet current and future demands efficiently and sustainably.
The NHS business case requirements for using Modern Methods of Construction (MMC) are outlined in the NHS England Business Case Approvals Process Guidance. The key considerations are set out below:
- Strategic outline case (SOC): This initial stage involves defining the strategic context and establishing the case for change. It includes an assessment of how MMC can meet the strategic objectives and deliver value for money.
- Outline business case (OBC): At this stage, the preferred option is identified, and a detailed analysis of the benefits, costs, and risks associated with MMC is conducted. The OBC should demonstrate how MMC will optimize value for money and outline the procurement strategy.
- Full business case (FBC): This final stage involves a comprehensive evaluation of the chosen option, including detailed financial and commercial assessments. The FBC should provide evidence of the affordability, achievability, and benefits realisation plan for using MMC.
- Stakeholder engagement: Throughout the business case development process, it is essential to engage with key stakeholders, including clinical and operational staff, to ensure that the proposed MMC solutions meet their needs and expectations.
- Sustainability and environmental impact: The business case should address the sustainability and environmental benefits of using MMC, such as reduced carbon emissions and improved energy efficiency.
- Risk management: A thorough risk assessment should be conducted to identify and mitigate potential risks associated with MMC, including supply chain issues and construction quality.
For more detailed information, you can refer to the NHS England Business case approvals process guidance. This guidance sets out the key considerations for NHS project teams when considering their use.