Modern Methods of Construction (MMC)�- Benefits for Mackay -

By Simon McCarthy

Director & Principal Structural / DfMA Engineer�MIEAust, CPEng, NER, APEC Engineer, IntPE(Aus), �Registered Professional Engineer – Qld, NSW, Vic, Tas.�Board Director - PrefabAUS

17 September, 2025

Simon McCarthy

​

Principal Structural / DfMA Engineer & Founding Director of Systemised Design Group.

25 years of experience as structural engineer in the Aust building industry.

Chartered Professional Engineer & Registered in Qld, NSW, Vic and Tas.

Developing the structural / DfMA design of multi-storey modular buildings since 2014.

Experience gained in DfMA from working on projects in UK, Europe, US, S.E. Asia and Australia

Specialise in design and documentation of buildings to utilise�modular, kit-of-parts construction techniques for low to mid-rise construction

Definitions

MMC = Modern Methods of Construction� Utilises offsite construction, manufacturing processes� Includes modular construction, panelised, 3D printing, etc.

​

Modular = standardised, repetitive shapes that can be � configured into regular patterns

​

Volumetric = 3D prefabricated, pre-finished frames � with internal fitout completed in factory

​

Flat pack = 2D prefabricated panels to be erected on site.� walls, floor cassettes, roof trusses, etc..

​

Kit-of-parts = IKEA approach to using standard, consistent and adaptable connections

​

DfMA = Design for Manufacturing and Assembly (design building to a known system)

Perceptions

Permanent modular construction utilizes prefabrication to construct in a controlled, manufacturing environment,

rather than taking all materials and trades to site in a traditional construction process.

Temporary�- portable (not shipping containers!)

- Non-complaint to Building Code of Australia,

- Cheap / low quality

- Uncomfortable and noisy

Permanent

- Compliant to Building Code of Australia

- High quality (built in a controlled factory environment),

- Planned, refined and adds value.

- Energy efficient

​

What is MMC?

Modern Methods of Construction (MMC)

utilises refined design practice (DfMA)

to prefabricate as many building elements

as possible.

• Improved quality
• Proprietary products where possible
• Collaborative environment
• Don’t start from scratch each time
• Reduced rain days
• Reduced waste

MMC = Less trades attending site

• Modular trades means carparking at the factory and less vehicles at permanent site
• Manufacturing process in factory means less coordination on site.
• Assembly process / staged assembly minimises time of cranes on site (including tower cranes)
• Staging of earthworks concurrent with manufacture of modules in factory means some trades don’t attend site at all.

What is MMC?

Comparison of trade traffic through bathroom door.�- 1250 movements for bathroom constructed on-site�- 250 movements for the same bathroom in the factory��The efficiency in using a fixed sequence in manufacture �- reduced construction traffic by 80%.�- reduced construction time by 30%�- reduced construction waste by 50%

MMC uses BIM / Digital Documentation

BIM = Building Information Modelling�

3D model – visual representation of coordinated disciplines� - automatic bill of quantities

4D model – animated representation of construction sequence

5D model – financial representation of construction cost

MMC uses Steel, Timber and Concrete

MMC Building Types

Residential

Single level houses�Granny flats / teenager retreats

Worker accommodation

​

Student accommodation (CQU above)

Multi-family / apartments�Hotels / resorts

Worker accommodation

​

Education

School classrooms

University classrooms

​

MMC Building Types

Multi-level carparks�Multi-level storage facilities�- concurrent construction�- 6 storeys complete in 6 months

​

Vertical extensions�6 storeys added in CLT� or�3 storeys if conventional concrete

​

Hospitals & healthcare facilities�Mental Health Retreats�Standardised layouts and�high-end proprietary ligatures

​

Productivity – Australia Wide

Productivity in construction has reduced 0.2% in the last 30 years!

​

Productivity in other industries have increased by 33% over the same period.

�We are still doing the same building techniques as the mid 1980’s.

​

Housing Shortage – Mackay

https://www.theurbandeveloper.com/articles/undersupply-drives-regional-qld-over-50s-land-lease-plans

Housing Shortage – Mackay

The rental vacancy rate in Mackay has been below 1% in early 2025�and less than the balanced market rate of 2-3%. 

Mackay’s local economy is booming, thanks in large part to:

• Mining, resources, and infrastructure projects are bringing jobs and investment
• Strong agriculture and export markets
• Lifestyle appeal for those relocating from larger cities

Status quo approach to construction is not keeping up.

Housing Shortage – Mackay

2023 to 2046�- Population to increase 32,454 (25.6% projected growth)�- Need approval for at least 16,000 new housing projects over 20 years.�- Need at least 800 new houses per year from now on.

2013 to 2023�- Population increased 8029 new residents (6.8% growth)�- 3984 new housing projects were approved over the same period�- 306 new housing projects in 2024 alone.

Reference: Mackay Regional Council – Economic Profile 2024

Status quo approach to construction is not going to keep up.

Construction Cost Comparison

Locality Cost Index�Used to compare the same project from one site to another.�Adjusts costs for increase in transportation of labour & materials to site, plus allowances.

Reference: Locality Index – September 2023, GRC Quantity Surveyors

Why Consider Modular Construction?

Mackay is falling behind in construction (not building enough each year)

�Mackay has high construction cost (compared to other areas of Queensland)

​

Mackay has limited building trades & building techniques (always build the same way)

​

Mackay has a limited supply chain

​

Mackay needs extra construction worker accommodation for large projects

​

Mackay has seasonal interference (rain / cyclone season)

Why Consider Modular Construction?

Queensland Government have been using MMC / Offsite Construction for:

​

• Qbuild (Government housing)
• Queensland Department of Education (Classrooms)
• Queensland Health (hospitals)

Why Consider Modular Construction?

September is�Queensland Manufacturing Month!

Why Consider Modular Construction?

Queensland have modular building manufacturers with capability and capacity

to support projects in Mackay.

​

Supporting Qld modular manufacturers will provide win-win effects:�- Mackay could supply more housing, in a shorter period of time than expected.�- Modular suppliers will have increased pipeline to train staff and build capability� in the lead-up to Brisbane 2032.

Why Consider Modular Construction?

Consider utilizing construction resources from South-East Queensland

​

1. Concurrent construction (two parts of building constructed at the same time.
2. Advantage of reduced construction cost (locality factor)

Why Consider Modular Construction?

Saving time creates other benefits.��Using MMC will enable 3 to 4 projects to be completed every 2 years, compared to one using traditional construction!�

Reflecting on the projected need to develop 800 homes per year for the next 20 years,�MMC / offsite construction could allow for�1600 to 2400 homes per year using modular,�compared to �800 homes per year with traditional construction

By utilizing MMC resources in SE Queensland.

Why Consider Modular Construction?

Saving cost creates other benefits.��Saving 10% on 10 apartments = 1 free, or 11.�Saving 10% on 100 = 10 extra families off streets

Reflecting on the projected need to develop 800 homes per year for the next 20 years,�Saving 10% on 800 apartments equates to: �A) 10% reduction in housing cost (attractive!) or,�B) reduced budget (approx. 730 homes / year or, C) 880 apartments for the same budget.�

Why Consider Modular Construction?

Early return on investment

Consider cost plan

E.g. 5 storey hotel (100 rooms)�Feasibility comparison indicates that adopting modular construction will allow hotel to open 18 months earlier than traditional construction.

​

Repetition in 5 module types allows for price of modular construction to also match const of construction.

�100 rooms x $170 per night.�70% occupancy (average)�= $6.5M in revenue 18 months early.�

Get ahead of Brisbane 2032!

Regional Qld has a few years left to take advantage of using building manufacturers

in South-East Queensland, before their local wave in population growth will take over.

South-East Queensland currently have a lag while infrastructure is being developed in preparation for the surge in population as the Olympic Games approaches.

Limited building capability will escalate construction costs – people will look elsewhere that is more affordable.

The largest demand in Mackay is�workforce accommodation.

The time to act is NOW!

Get ahead of Brisbane 2032!

Get ahead of Brisbane 2032!

The Queensland Tourism Industry Council (QTIC) Strategic Plan 2025-2028, �issued Mon 8 Sept 2025, �highlights the urgent need for tourism infrastructure investment, �which is particularly relevant for popular regions such as the Whitsundays.

�SEQ currently has just 46,000 hotels rooms �- less than half of Los Angeles (120,000) and Paris (133,000). ��Even with committed developments, capacity is expected to grow �to only 51,000 rooms by 2030, leaving Qld significantly short �of what is needed to meet demand as Brisbane 2032 approaches.

Reference: www.qtic.com.au� www.wildmodular.com.au/hook-island

How to get started in using MMC?

This well-recognised graph known as the MacLeamy Curve �can also be used to show the ability to influence the type of construction

How to get started in using MMC?

Buildings that use MMC need to be designed to the specific type of MMC.

Trying to adapt an existing building design for modular is often too hard and won’t work.

How to get started in using MMC?

Easier access to construction loan funding

• Commonwealth Bank of Australia to simplify funding of�construction loans for prefabricated housing (Class 1).�Funding for prefabricated Class 2 buildings is in development

• CBA has also agreed to sponsor the development of�a standard form contract for the Modern Methods of�Construction (MMC) sector to help support�home buyers and manufacturers

• Funding for prefabricated Class 2 buildings is in development

How to get started in using MMC?

QLD Dept of Housing development of guidelines on low to mid-rise housing using MMC

How to get started in using MMC?

Q-CHIP – Queensland – Community Housing Investment Pipeline

Just this week, the Queensland Gov't announced �an "always-open" procurement program called �Queensland Community Housing Investment Pipeline (Q-CHIP)

- funding is readily available

- no time limit grants

Using this process with MMC will allow more community housing in a shorter timeframe.

How to get started in using MMC?

Use design teams with DfMA experience (One of the most popular questions I am asked!)

Do design consultants have case studies?�- Use an Architect to obtain better value than a building designer / draftsperson�- Beware of the “expert” who has done one modular project.

Do modular manufacturers have prototypes?

Conduct feasibility study to confirm MMC vs traditional construction

- Include comparison of overall costs� MMC may be more expensive to build, � but the early return on revenue may be better

How to get started in using MMC?

Reach out to attendees here today:

Architect:

Dennis Butler – Vabasis Architecture, Spring Hill

Modular Manufacturers:

Karen Gear – Sigma Build, Brisbane

Demi Pressler-McHugh – McHugh Steel, Bundaberg

Tahi Merrilees – Wild Modular

PrefabAUS Members:

www.prefabaus.org.au

How to get started in using MMC?

Epic Builds: The 90 Day Challenge �Channel 9 – Oct. 2025�Hosted by Adam Spencer.

The program follows construction crews as they complete innovative modular and prefab building projects, �such as schools and homes, �within an extreme 90-day deadline. 

EPIC Builds: The 90 Day Challenge Trailer

Thank you!

Robert Cocco

Nic Willis

Good Design = Good Value = Investment

Your DfMA Consultant of Choice

We understand complexity, but believe in simplicity

Simon McCarthy�Principal Structural / DfMA Engineer�smccarthy@systemiseddesign.com�https://www.linkedin.com/in/simon-mccarthy-b605ab19/

Structural Engineering | DfMA Studies | Modular (Volumetric & Kit-of-Parts)