NSW Government investment supports Modern Methods of Construction through a new Industry Expansion Program to attract, adopt or scale-up advanced manufacturing of built form in NSW.
NSW needs more homes – built faster and at scale.
Demand for housing is growing, but traditional construction has not kept pace. The NSW Government is in investing in Modern Methods of Construction to change that. The Government is embracing construction techniques such as prefabrication, kit-of-parts approaches, and modular construction.
Under the MMC Industry Expansion Program (program), we will partner with industry to support one or more respondents to establish or expand an Advanced Manufacturing Facility (AMF) and diversify MMC capacity in NSW.
The aim of the program is to accelerate the adoption of construction technologies, processes and systems that speed up housing delivery, improve efficiency and support the delivery of a reliable and consistent pipeline of high-quality homes for communities across NSW. The program could also support other Government programs such as the delivery of hospitals and schools.
The successful respondent/s will be supported by the NSW Government to establish, or expand and diversify an AMF to:
- create a reliable stream of quality, prefabricated components to deliver homes faster, and at scale
- increase supply across a diverse range of residential and non-residential built form that meets government and industry needs, with a particular focus on medium and high-density residential product
- reduce the risk of supply chain disruptions and ease cost escalation pressures associated with traditional construction
- improve product quality, reducing human error and defects in the building sector
- improve the operating and sustainability performance of buildings manufactured, and
- deliver economic and community benefits, including the creation of advanced manufacturing capability and jobs in NSW.
About the tender process
The program is being delivered through a two-stage tender process, which began with an Expression of Interest (EOI) process, followed by a Request for Proposal (RFP) process.
EOIs for the program were accepted from 2 July 2026 to 3 August 2026 and are now closed.
Following the evaluation of EOI submissions, a shortlist of respondents has been selected to progress to the RFP stage of the tender process. The RFP will be open from 16 September 2026 to 19 October 2026.
Shortlisted respondents have been notified directly and invited to submit a proposal.
Successful projects to be announced following evaluation later this year.
Submit an enquiry
Complete this form if you have an enquiry.
Frequently asked questions
NSW needs more homes – built faster and at scale.
Our State is the nation’s most populated with over 8 million residents, and is projected to reach more than 10 million in the next 15 years. As a result, there is increasing demand for housing supply to support the state’s growth. To date, the construction sector has not kept pace. The Modern Methods of Construction Industry Expansion Program will help industry build homes faster and:
- reduce reliance on interstate and overseas materials and components
- strengthen local supply chains, and
- progressively lower construction costs over time.
This investment complements the Government’s broader housing agenda, including planning reforms and initiatives such as the establishment of the Housing Delivery Authority, the low and mid-rise pattern book, and the Property Audit program, to unlock surplus and underutilised government-owned land and accelerate housing delivery across the state.
Yes, the Modern Methods of Construction Industry Expansion Program forms part of the Modern Methods of Construction Innovation facility. The MMC Innovation Facility encompasses NSW Government investment into housing innovation, and includes:
- the Housing Innovation in Construction Fund (delivered by Investment NSW)
- the Housing Innovation Network Grants Program (delivered by Investment NSW), and
- the Modern Methods of Construction Industry Expansion Program (delivered by the Department of Planning, Housing and Infrastructure).
The location and scale of facilities will depend on proposals received through the tender process.
Proponents will be required to demonstrate whether they will establish a new facility, or facilities, or expand and diversify existing ones to meet the Program’s objectives.
As part of the tender process, respondents will be invited to propose the range of build capabilities and capacities they can deliver.
A key focus will be the ability to deliver components for medium-density homes, which could leverage the NSW Government Pattern Book designs – creating a faster, more consistent pathway to get houses built. Successful respondents could also supply materials for other built forms, including other housing typologies, schools and hospitals, as examples.
The NSW Government has passed landmark reforms as part of the Building (Approvals and Practitioners) Bill 2026, introducing a clear regulatory framework that:
- Recognises MMC in law by defining "prefabricated buildings".
- Integrates prefabricated buildings into the building approvals system.
- Sets clear rules for the manufacture, supply, transport, delivery and installation of prefabricated buildings.
These nation-leading changes will drive industry and consumer confidence in adopting prefabricated buildings, with the MMC Innovation Facility demonstrating the high quality that can be achieved in manufacturing prefabricated and modular components.
As part of the tender process, the respondent must clearly identify and justify the Government support required to establish, or expand and diversify an Advanced Manufacturing Facility in NSW.
Indicative forms of Government support may include:
- financial grants
- equity investment
- concessional loans
- in-kind support (training, industry development, etc.)
- government-owned land subject to concessional tenure arrangements.
These forms of support are examples only, and do not prohibit alternative support models being proposed.
The Program is targeting five Modern Methods of Construction categories aligned to off-site and near site pre-manufacturing:
- 3D primary structural systems
- 2D primary structural systems
- non-systemised structural components
- additive manufacturing (structural and non-structural)
- non-structural assemblies and sub-assemblies.
All proponents have been contacted directly by the Department and advised whether they have been successful in progressing to the next stage of the tender process, the Request for Proposal.
The EOI process attracted strong interest from across Australia and internationally, with more than 60 proposals submitted.
Around two-thirds were received from Australian-based organisations seeking to establish or expand advanced manufacturing facilities for housing construction.
The submissions included a broad range of modern construction methods, including modular, prefabricated, robotics-enabled and kit-of-parts manufacturing solutions.
Ten proponents have been shortlisted and invited to participate in the next stage of the Modern Methods of Construction Industry Expansion Program process. All applicants have been advised of the outcome of their submission.