£1.2 Billion Of Public Sector Homes To Use Offsite Construction

Specialist contractors can now apply to join a new £1.2 billion framework to deliver offsite constructed homes that will provide thousands of homes across the UK.

The framework, which replaces NH2, will address some of the new housing challenges within the public sector at a time of high demand and increasing emphasis on the need for sustainable methods of construction and a greater supply of housing stock that is environmentally fit for the future.

The framework will also create the opportunity for procurement teams to access a wider range of MMC solutions and suppliers, encouraging greater collaboration between suppliers and clients.

Suppliers will naturally be looking to a supply chain that can provide the elements they need to assemble new homes quickly and efficiently.



Developments so far procured or delivered through NH2 include 400 units, currently being built across a four-year period by modular offsite construction specialists Rollalong, for Magna Housing Association and Wiltshire Council in the South-West. In the London Borough of Bromley, the framework has also been used to deliver 25 one- and two-bedroom affordable apartments, as part of the ‘Bromley Homes for Bromley People’ programme.

Finally, NH2 has also delivered the award-winning Hope Rise scheme in Bristol, where 11 affordable, low-carbon apartments from Zed PODS have been installed as permanent living spaces for young workers and vulnerable households.



The new NH3 (Modern Methods of Construction (MMC) of New Homes) framework from public sector construction framework provider LHC will operate across England, Scotland and Wales, delivered through LHC London and South East (LSE), Scottish Procurement Alliance (SPA), South West Procurement Alliance (SWPA), Consortium Procurement Construction (CPC) and Welsh Procurement Alliance (WPA).

NH3 covers low-rise and medium/high-rise dwellings through to specialist accommodation such as care homes. It will support public sector procurers to increase the use of modern methods of construction in their contracts and help to deliver low and net zero carbon homes with high levels of pre-manufactured value.


 “The NH3 framework will build on the success of NH2, which has so far enabled £93.5 million worth of projects with a total forecast value of £277 million.”

– Dean Fazackerley 

Head of technical procurement, LHC



“It has contributed to the number of low-carbon, modern apartments and homes for housing associations and local authorities across the country, using modern methods of construction and offsite techniques to produce cheaper-to-heat homes for the communities they serve,” continues Fazackerley. “NH3 will initially cover a range of MMC categories and features four distinct workstreams we hope will encourage both manufacturers and those that can deliver main contractor services for MMC to apply. We also hope SMEs will apply and take advantage of the opportunities available to them through this new framework.”

Picture: Window and door manufacturers will not be asked to tender directly but are likely to be interested in the wining bids as modern methods of construction are on the rise.


Article written by Cathryn Ellis
25th August 2022


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