New public sector framework to deliver £1.2 billion-worth of modular homes

Winning construction sector companies have been named for a Britain-wide £1.2 billion framework to provide thousands of homes built using modern methods of construction (MMC).

The new modular and offsite homes will be delivered under not-for-profit public sector construction framework provider LHC Procurement Group’s (LHC) new Modern Methods of Construction (MMC) of New Homes (NH3) Framework.

It is designed to help boost the speed and quantity of delivery of the homes required to fulfil housing need across communities in England, Scotland and Wales.


Dean Fazackerley, head of technical procurement at LHC, said:

“NH3 is a vital addition to support more programmes to build low-carbon, modern homes from housing associations and local authorities across the country. It will adopt MMC and offsite techniques to produce energy efficient homes for the communities they serve.

“Now, we are looking to build on the success of our previous framework, NH2, which has so far enabled £93.5m-worth of offsite homes projects with a total forecast value of £277m.

“NH3 has been developed to be a market-leading framework providing a wide range of systems and project delivery models to give public sector organisations the flexibility to deliver MMC projects the way they want. With the range of manufacturers and contractors appointed to this framework, NH3 provides an excellent choice for clients to access a range of MMC solutions and providers and is built to facilitate greater collaboration between suppliers and the public sector.”


NH3 replaces the previous NH2 framework and has been shaped by extensive engagement with housing contractors and manufacturers. It allows for a range of housing types, from low rise and medium/high rise, through to specialist accommodation such as care homes. The framework also provides for delivery of ‘room in the roof’ projects and adaptive pods.

Dean Fazackerley added: “Through NH3, LHC is looking to support the public sector to increase the use of modern methods of construction and deliver low and net zero carbon homes with high levels of pre-manufactured value (PMV). It will support social housing providers in addressing some of their new housing challenges around the need for sustainable methods of construction and a greater supply of housing stock that is environmentally fit for the future.”


NH3 fulfils a key SPA guiding principle to increase the public sector’s access to regional and local supply chains, encouraging SME involvement and driving economic uplift to regional areas.

Covering the full range of MMC categories, the workstreams covered by NH3 are:

  • Workstream 1 – Three-dimensional (3D) modular systems – category 1
  • Workstream 2 – Two-dimensional (2D) panelised systems – category 2
  • Workstream 3 – Main contractors delivering MMC solutions – all categories
  • Workstream 4 – Groundworks and site preparation for MMC housing projects


The NH3 framework runs until 1 May 2027. For more information on the framework, head to the framework page here.

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