Framework set up by housing association consortium could run for up to 15 years

Three modular specialists have won a place on a new £2bn housing framework run by a consortium of housing associations.

The Central Housing Investment Consortium (CHIC) said the deal will run for an initial period of five years with an option of extending by two subsequent five-year periods.  

CHIC is a consortium of more than 92 housing associations and local authorities, collectively responsible for managing more than 700,000 homes. 

modular construction

Three modular specialists secured spots on the framework

Lot one, which is worth £303m, covers the manufacture of modular houses, flats and bungalows, including an option to provide full site construction services for small schemes.

It was awarded to Peterborough-based Impact Modular.

The second lot, which has a value of £572m, was awarded to Module-AR. The Hull-based firm will be responsible for the same work as Impact Modular but with the additional requirement of providing full site construction services for all schemes.

Lot three, worth £1.2bn, covers the manufacture of houses, apartment blocks and high-rise residential towers and individual room pods, with an option for full construction services. This was awarded to Elements Europe, which is based in Shropshire. 

Firms were allowed to bid for up to two lots but can only be awarded a place on one.

The procurement documents said companies appointed to each lot were be required to have an existing manufacturing base.

It said: "Where demand under the contract supports increased capacity, CHIC or other consortia, will work with the company to establish manufacturing capacity geographically suited to that demand."

The winning firms will mainly be required to work across central and southern England and in Wales but may need to work in all other parts of England, Wales and Scotland in the future.