Why lenders shouldn’t overlook Modern Methods of Construction projects

John Carter, commercial director for commercial real estate at Aldermore bank, explores the importance of Modern Methods of Construction (MMC) in an evolving industry. Modern Methods of Construction are increasingly being used in the construction industry today. In recent times they’ve moved from being something out of a science fiction novel to reality, particularly in the construction of units such as student accommodation and hotels. To some lenders, MMC is still relatively unfamiliar so they tend to take a conservative approach when deciding whether to invest in such projects. Yet the primary consideration for any lender should be the quality of the project making MMC not something to overlook as long as certain standards and criteria are met. MMC is a wide-ranging term that covers many different types and techniques of construction. Generally, it involves precision off-site manufacture engineering of either key components (a panelised system) or whole sealed units up to first fittings (wiring and plumbing) in a factory environment; with some methods mirroring that of the automotive industry.