ECOFAB evolved from onsite methods applied to several school buildings involving simple timber frame construction incorporating straw bale as an insulation. This principle of framed straw bale construction was developed towards prefabrication using low-tech, offsite workshop based production. This prefabrication principle was employed in order to reduce building costs. The catalyst for this development were commissions to produce affordable, rural housing in two separate schemes in Dorset.

The company itself originates from ARCO2 Architecture LTD specialising in sustainable architecture and design.