The move is in line with Housing Corporation pressure to increase the use of modern methods of construction but will be a blow to the beleaguered Amphion consortium.
Home is a member of Amphion, which was set up in 1999 to devise OSM systems for registered social landlords.
The deal also underlines the weakness of the off-site manufacturing supplier base.
Home will work with Pace to come up with a new timber-frame system after finding existing suppliers were unable to meet its specifications at a reasonable price.
Jon Watson, Home's director of business strategy, said the association had picked Pace because it was willing to work on a new system.
Home has specified that it wants a closed-panel timber frame system, which means wall units arrive at the site fully assembled, including insulation and wiring.
Watson said: "For us, this is the right balance between progress and risk. It's a big step forward, but not absolutely cutting edge."
At the moment, Pace manufactures only open-panel systems, where less of the work is done in the factory. For Pace, Home's contract is a way to move into the closed-panel market.
Pace managing director Phil Key said: "We're absolutely delighted. We think our system will be more advanced than anything else on the market."
Home will use the new system on a pilot scheme of 20-30 homes in Dumfries and possibly on another in Yorkshire.
Watson said the system was 6-8% more expensive than traditional construction, but added that Home was hoping to push the price down by finding increased efficiencies in Pace's manufacturing process.
He said timber frame was more economical than the modular systems used by RSLs such as the Peabody Trust, where entire homes are shipped to site fully built.
"The modular systems have a very significant cost penalty and they are inflexible," he said.
Amphion could not be reached for comment.
Source
Housing Today
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