What Good MMC Procurement Actually Looks Like in Practice
What Good MMC Procurement Actually Looks Like in Practice
Procurement is frequently cited as one of the biggest barriers to the wider adoption of Modern Methods of Construction.
The conversation often focuses on what procurement gets wrong. Projects are tendered too late, specifications remain unclear and opportunities for early engagement are missed. While these criticisms are valid, they only tell half the story.
The more important question is this: what does good MMC procurement actually look like in practice?
The answer extends beyond contract forms or framework agreements. Effective procurement creates certainty, encourages collaboration and aligns the entire delivery process from design through to manufacture and installation. It recognises that offsite construction cannot simply be fitted into traditional procurement models without consequences.
Procurement Begins Earlier Than Many Organisations Realise
Traditional procurement approaches often separate design, construction and delivery into distinct stages. Contractors and suppliers may not become meaningfully involved until key decisions have already been made.
For MMC, this approach creates immediate challenges.
Manufacturing-led construction relies on early certainty. Design decisions influence production processes, logistics planning and installation sequencing. Delaying engagement with manufacturers reduces the opportunities to optimise these elements and increases the likelihood of late changes.
Good procurement therefore begins much earlier in the project lifecycle.
Manufacturers, designers and delivery partners should be involved during the development of requirements rather than simply responding to predetermined specifications. Early collaboration enables programmes to benefit from manufacturing expertise before critical decisions are locked in.
This is not about reducing competition. It is about improving outcomes.
Outcomes Matter More Than Prescriptive Specifications
Many procurement models continue to focus heavily on defining precisely how something should be delivered.
MMC often performs better when procurement focuses on outcomes instead.
Rather than prescribing specific methods, clients can define what needs to be achieved in terms of performance, quality, sustainability and programme requirements. This creates space for innovation and allows manufacturers to apply their expertise more effectively.
Outcome-based procurement also supports greater standardisation and repeatability, both of which are fundamental to manufacturing efficiency.
Where every project is treated as entirely unique, opportunities for learning, optimisation and scale are limited. Good procurement recognises the value of consistency without compromising quality or performance.
Programme Thinking Creates Better Results Than Project Thinking
One of the persistent challenges within construction is the tendency to procure individual projects in isolation.
From an MMC perspective, this creates volatility.
Manufacturing facilities require continuity. Investment in people, equipment and processes depends upon confidence that demand will extend beyond a single project. Short-term procurement cycles make this difficult to achieve.
Programme-based procurement offers a more effective alternative.
By considering multiple projects as part of a longer-term pipeline, organisations can provide manufacturers with greater visibility and stability. This encourages investment, improves utilisation and reduces the inefficiencies associated with fluctuating workloads.
The UK Government's Construction Playbook strongly advocates for this approach, emphasising longer-term relationships, early engagement and a focus on whole-life value rather than lowest initial cost. The full guidance is available here: https://www.gov.uk/government/publications/the-construction-playbook
These principles align closely with the requirements of successful MMC delivery.
Collaboration Must Be Built Into Procurement Structures
Collaboration is frequently discussed within construction, but procurement mechanisms do not always support it.
Competitive tendering processes can unintentionally discourage information sharing and limit opportunities for collective problem-solving. While competition remains important, it should not prevent organisations from working together to achieve better outcomes.
Good MMC procurement actively encourages collaboration through:
Early supplier involvement.
Integrated project teams.
Shared objectives and performance measures.
Transparent communication across stakeholders.
Long-term relationships rather than transactional engagements.
These structures create an environment where manufacturers, designers and clients can address challenges collectively rather than sequentially.
The benefits extend beyond individual projects and contribute to stronger system-wide performance.
Logistics and Manufacturing Need Equal Consideration
Procurement decisions often focus primarily on construction activities, with logistics and manufacturing treated as secondary considerations.
For MMC, this hierarchy needs to change.
Manufacturing capability, transport requirements and installation sequencing all influence project success. Procurement strategies should reflect these dependencies from the outset.
Questions that should form part of the procurement process include:
Where will components be manufactured?
What transport infrastructure is required?
How will delivery schedules align with site readiness?
What contingency arrangements exist if programmes change?
Addressing these issues early reduces risk and improves coordination throughout the project lifecycle.
Lowest Cost Is Not Always Best Value
One of the most significant shifts required in MMC procurement relates to how value is assessed.
Traditional procurement models have often prioritised lowest upfront cost. While understandable, this approach can undermine opportunities to realise wider benefits associated with offsite delivery.
Good procurement considers factors such as:
Programme certainty.
Quality assurance.
Reduced waste.
Whole-life performance.
Lower operational risk.
These outcomes create value beyond initial capital expenditure.
A procurement process that focuses exclusively on immediate cost savings may inadvertently discourage innovation and reduce the effectiveness of manufacturing-led approaches.
Building Confidence Through Repeatability
Manufacturing thrives on repeatability.
The more consistent the process, the greater the opportunities for efficiency, quality improvement and learning. Procurement strategies that encourage standardisation and platform approaches support these benefits.
This does not mean every building should look identical.
Rather, it means creating common systems and components that can be applied flexibly across different projects and sectors. The result is greater confidence for manufacturers, clients and investors alike.
Consistency creates predictability.
Predictability creates resilience.
And resilience ultimately supports growth.
Procurement as an Enabler Rather Than a Constraint
Too often, procurement is viewed as an administrative necessity that occurs before delivery begins.
For MMC, procurement is far more significant.
It establishes the conditions within which manufacturing, logistics, design and construction will operate. When structured effectively, it enables collaboration, supports investment and reduces uncertainty.
When structured poorly, it creates fragmentation and inefficiency.
The difference lies not only in processes, but in mindset.
Good procurement recognises that successful delivery depends upon systems rather than individual transactions.
Conclusion
Effective MMC procurement begins with early engagement, focuses on outcomes rather than prescriptions and supports long-term relationships rather than short-term transactions.
It recognises that manufacturing-led construction requires certainty, collaboration and continuity. These characteristics cannot be introduced after contracts are signed; they must be built into the procurement process itself.
As the sector continues to mature, procurement will increasingly determine whether the full benefits of MMC can be realised. The challenge is not simply to procure differently, but to think differently about what successful delivery requires.
By treating procurement as an enabler rather than a constraint, the industry can create stronger foundations for growth, resilience and long-term performance.