The UK’s public and private sectors are planning to invest £420m in a scheme to halve the amount of time it takes to complete a project.
The money will be invested in digital design and offsite manufacturing, with the aim of building homes more efficiently.
The government will give £170m to the project as part of the Industrial Strategy Challenge Fund, with £250m coming from the companies in the construction industry.
The manufacturing, energy and digital sectors will also be involved with the project.
Greg Clark, the business and energy secretary, said: "Major infrastructure projects like Hight Speed Rail 2 and the commitment to deliver 1.5 million homes by 2022 mean that we need a construction sector that can drive innovation, delivering homes and infrastructure quicker.
"As buildings account for around 30% of total emissions, we also want to ensure that we are at the global forefront in designing and building smart, energy efficient and affordable homes and buildings through the Clean Growth Grand Challenge, saving families money on their bills."
More information on the project is available here.