Modern Methods of Construction, or MMC, once appeared to offer many answers to the question of how we can build more houses quicker while still being sustainable and commercially viable for both developers and homeowners.
However, a number of well-publicised insolvencies – and perhaps a fear of change or the unknown – mean that the uptake of MMC has not been as plentiful as once imagined.
Some developers think there’s a space between traditional and modern methods. We recently placed such a scheme of over 100 dwellings.
The developer has created factory-esque conditions onsite, which provide quality assurance throughout the construction process. The localised construction of the panels greatly reduces transportation traffic and emissions, meaning a more amicable relationship with the neighbours and environment. In this case, it results in a shorter build period, too.
These panels, along with carefully considered other factors such as window sizes, solar shading and aspect, and specific air tightness and ventilation parameters, ensure climate resilience, keeping the houses cool in our ever-warmer summers.
The use of photovoltaic panels meant that the site would develop twice the amount of energy that the occupied houses would consume, meaning zero energy bills for the occupants.
What are the structural warranty implications for the developer when using MMC?
Some of the established structural warranty providers will charge for system appraisals – or, if you’re being cynical, charge a premium for forward thinking. At J3 Advisory, we were able to present the risk in a clear and considered manner, which gave underwriters and insurers the confidence to offer fair and appropriate terms.
Sustainable?
Cost-Effective for homeowners?
Economically viable for developers?
Fuss-free warranty procurement?
MMC & Structural Warranties:
MMC has the potential to deliver more consistent & higher-quality buildings, which should, in theory, reduce defects and make things easier for underwriters. However, because it’s a relatively new approach, there’s less long-term data for underwriters to rely on, which can lead to a more cautious approach. That’s where J3 can help. We work closely with insurers to present each MMC project clearly & fairly, helping to secure the right cover at the right price. If you’re considering a development using MMC or non-traditional methods of construction, don’t appreciate being overcharged, but do appreciate good quality advice to ensure the insurance for the project is a pain-free experience, please get in touch.
About the Author
Timothy Woodgate
Senior Advisor
Tim’s career started 25 years ago in broking and has led to him working in London, New York and across Asia. This experience brings a fresh outlook to J3 that is adept at quickly understanding his customers needs.
Tim’s analytical style and strength in direct, fuss-free problem solving combined with his understanding of relationship management have built him a loyal client following.
