Skip to main content
SpringerLink
Log in

Risks of modular integrated construction: A review and future research directions

  • Review Article
  • Published:
Frontiers of Engineering Management Aims and scope Submit manuscript

Abstract

Stakeholders remain skeptical in adopting modular integrated construction (MiC) because of the associated risks and uncertainties, although its benefits have been extensively documented. The unique business model of MiC nurtures several risks and uncertainties different from those of the conventional construction approach. Despite the growing attention on MiC with its market expansion, no systematic evaluation is in place to monitor its risks research progress. Accordingly, this research reviewed published literature addressing the risks associated with MiC from 1992 to 2019. Analysis reveals that the research publications on risks of MiC witnessed a steady growth, with considerable progress occurring in the last decade. Result implies that the risk of MiC has gained extra attention in the construction engineering and management domain in recent times. Existing empirical studies have focused heavily on perceived implementation risks, supply chain risks, schedule risks, investment risks, structural risks, ergonomic risks, and MiC risk management strategies, which indicate that MiC is associated with a host of risk events. The research further identified the critical risk events (CREs) in the application of MiC based on frequency of occurrence. The identified CREs contributes to the checklists of risk events in the implementation of offsite construction (OSC). The latter may be useful in risk planning, especially where the MiC is less developed, and fewer or no bespoke risk assessment exists. Research gaps in existing studies are highlighted in this research, and areas for further studies are then proposed. Thus, it makes a useful contribution to the scholarly literature on the risk of OSC and may prove useful to offsite construction researchers, industry practitioners, and project managers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Adekunle T O, Nikolopoulou M (2016). Thermal comfort, summertime temperatures and overheating in prefabricated timber housing. Building and Environment, 103: 21–35

    Article  Google Scholar 

  • Assaf S A, Al-Hejji S (2006). Causes of delay in large construction projects. International Journal of Project Management, 24(4): 349–357

    Article  Google Scholar 

  • Azman M N A, Ahamad M S S, Majid T A, Yahaya A S, Hanafi MH (2013). Statistical evaluation of pre-selection criteria for industrialized building system (IBS). Journal of Civil Engineering and Management, 19(sup1): S131–S140

    Google Scholar 

  • Baker J D (2016). The purpose, process, and methods of writing a literature review. AORN Journal, 103(3): 265–269

    Article  Google Scholar 

  • Baloi D, Price A D F (2003). Modelling global risk factors affecting construction cost performance. International Journal of Project Management, 21(4): 261–269

    Article  Google Scholar 

  • Blismas N G, Pasquire C, Gibb A G F (2006). Benefit evaluation for offsite production in construction. Construction Management and Economics, 24(2): 121–130

    Article  Google Scholar 

  • Blismas N G, Wakefield R (2009). Drivers, constraints and the future of off-site manufacture in Australia. Construction Innovation, 9(1): 72–83

    Article  Google Scholar 

  • Bortolini R, Formoso C T, Viana D D (2019). Site logistics planning and control for engineer-to-order prefabricated building systems using BIM 4D modeling. Automation in Construction, 98: 248–264

    Article  Google Scholar 

  • Bureau of Labor Statistics (2009). Incidence rate and number of nonfatal occupational injuries by industry and ownership, 2008. United States Department of Labor

  • Bureau of Labor Statistics (2017). Employer-reported workplace injuries and illnesses—2016. United States Department of Labor

  • Chiang Y H, Chan E H W, Lok L K L (2006). Prefabrication and barriers to entry—A case study of public housing and institutional buildings in Hong Kong. Habitat International, 30(3): 482–499

    Article  Google Scholar 

  • Chiu C K, Chen M R, Chiu C H (2013). Financial and environmental payback periods of seismic retrofit investments for reinforced concrete buildings estimated using a novel method. Journal of Architectural Engineering, 19(2): 112–118

    Article  Google Scholar 

  • Construction Industry Council (2018). About Modular Integrated Construction. Construction Industry Council. Available at: http://cic.hk/eng/main/mic/

  • Dawood N N (1995a). Scheduling in the precast concrete industry using the simulation modelling approach. Building and Environment, 30(2): 197–207

    Article  MathSciNet  Google Scholar 

  • Dawood N N (1995b). An integrated bidding management expert system for the make-to-order precast industry. Construction Management and Economics, 13(2): 115–125

    Article  Google Scholar 

  • Egan J (1998). Rethinking construction: The report of the construction task force to the Deputy Prime Minister, John Prescott, on the scope for improving the quality and efficiency of UK construction. Department for Trade and Industry, London, UK

    Google Scholar 

  • Enshassi M S A, Walbridge S, West J S, Haas C T (2019). Integrated risk management framework for tolerance-based mitigation strategy decision support in modular construction projects. Journal of Management in Engineering, 35(4): 05019004

    Article  Google Scholar 

  • Evans D (2004). The systematic review report. Collegian, 11(2): 8–11

    Article  Google Scholar 

  • Fard M M, Terouhid S A, Kibert C J, Hakim H (2017). Safety concerns related to modular/prefabricated building construction. International Journal of Injury Control and Safety Promotion, 24(1): 10–23

    Article  Google Scholar 

  • Finfgeld-Connett D (2014). Use of content analysis to conduct knowledge-building and theory-generating qualitative systematic reviews. Qualitative Research, 14(3): 341–352

    Article  Google Scholar 

  • Gan X, Chang R, Zuo J, Wen T, Zillante G (2018). Barriers to the transition towards off-site construction in China: An interpretive structural modeling approach. Journal of Cleaner Production, 197: 8–18

    Article  Google Scholar 

  • Gibb A G F (1999). Off-Site Fabrication: Prefabrication, Pre-Assembly and Modularization. Scotland, UK: Whittles Publishing

    Google Scholar 

  • Gibb A G F (2001). Standardization and pre-assembly-distinguishing myth from reality using case study research. Construction Management and Economics, 19(3): 307–315

    Article  Google Scholar 

  • Gibb A G F, Neale R H (1997). Management of prefabrication for complex cladding: Case study. Journal of Architectural Engineering, 3(2): 60–69

    Article  Google Scholar 

  • Gustavsson P, Plato N, Axelson O, Brage H N, Hogstedt C, Ringbäck G, Tornling G, Wingren G (1992). Lung cancer risk among workers exposed to man-made mineral fibers (MMMF) in the Swedish prefabricated house industry. American Journal of Industrial Medicine, 21(6): 825–834

    Article  Google Scholar 

  • Hassim S, Jaafar M S, Sazalli S A A H (2009). The contractor perception towards industrialised building system risk in construction projects in Malaysia. American Journal of Applied Sciences, 6(5): 937–942

    Article  Google Scholar 

  • Hassim S, Sazalli S A A H, Jaafar M S (2008). Identification of sources of risk in IBS project. European Journal of Social Science, 6(3): 315–324

    Google Scholar 

  • Havinga L, Schellen H (2018). Applying internal insulation in post-war prefab housing: Understanding and mitigating the hygrothermal risks. Building and Environment, 144: 631–647

    Article  Google Scholar 

  • Hong W K, Kim G, Lim C, Kim S (2017). Development of a steel-guide connection method for composite precast concrete components. Journal of Civil Engineering and Management, 23(1): 59–66

    Article  Google Scholar 

  • Hosseini M R, Martek I, Zavadskas E K, Aibinu A, Arashpour M, Chileshe N (2018). Critical evaluation of off-site construction research: A scientometric analysis. Automation in Construction, 87: 235–247

    Article  Google Scholar 

  • Hsu P Y, Angeloudis P, Aurisicchio M (2018). Optimal logistics planning for modular construction using two-stage stochastic programming. Automation in Construction, 94: 47–61

    Article  Google Scholar 

  • Hwang B G, Shan M, Looi K Y (2018). Key constraints and mitigation strategies for prefabricated prefinished volumetric construction. Journal of Cleaner Production, 183: 183–193

    Article  Google Scholar 

  • Ikuma L H, Nahmens I, James J (2011). Use of safety and lean integrated kaizen to improve performance in modular homebuilding. Journal of Construction Engineering and Management, 137(7): 551–560

    Article  Google Scholar 

  • Jaillon L, Poon C S (2008). Sustainable construction aspects of using prefabrication in dense urban environment: A Hong Kong case study. Construction Management and Economics, 26(9): 953–966

    Article  Google Scholar 

  • Jaillon L, Poon C S, Chiang Y H (2009). Quantifying the waste reduction potential of using prefabrication in building construction in Hong Kong. Waste Management, 29(1): 309–320

    Article  Google Scholar 

  • James J, Ikuma L H, Nahmens I, Aghazadeh F (2014). The impact of Kaizen on safety in modular home manufacturing. The International Journal of Advanced Manufacturing Technology, 70(1-4): 725–734

    Article  Google Scholar 

  • Ji Y B, Qi L, Liu Y, Liu X N, Li H, Li Y (2018). Assessing and prioritising delay factors of prefabricated concrete building projects in China. Applied Sciences, 8(11): 2324

    Article  Google Scholar 

  • Jiang L, Li Z, Li L, Gao Y (2018a). Constraints on the promotion of prefabricated construction in China. Sustainability, 10(7): 2516–2532

    Article  Google Scholar 

  • Jiang R, Mao C, Hou L, Wu C, Tan J (2018b). A SWOT analysis for promoting off-site construction under the backdrop of China’s new urbanisation. Journal of Cleaner Production, 173: 225–234

    Article  Google Scholar 

  • Jiao L, Li X D (2018). Application of prefabricated concrete in residential buildings and its safety management. Archives of Civil Engineering, 64(2): 21–35

    Article  Google Scholar 

  • Kim S, Nussbaum M A, Jia B (2011). Low back injury risks during construction with prefabricated (panelised) walls: Effects of task and design factors. Ergonomics, 54(1): 60–71

    Article  Google Scholar 

  • Kim S, Nussbaum M A, Jia B (2012). The benefits of an additional worker are task-dependent: Assessing low-back injury risks during prefabricated (panelized) wall construction. Applied Ergonomics, 43(5): 843–849

    Article  Google Scholar 

  • Lee J S, Kim Y S (2017). Analysis of cost-increasing risk factors in modular construction in Korea using FMEA. KSCE Journal of Civil Engineering, 21(6): 1999–2010

    Article  Google Scholar 

  • Levy Y, Ellis T J (2006). A systems approach to conduct an effective literature review in support of information systems research. Informing Science, 9: 181–212

    Article  Google Scholar 

  • Li C Z D, Hong J K, Fan C, Xu X X, Shen G Q P (2018a). Schedule delay analysis of prefabricated housing production: A hybrid dynamic approach. Journal of Cleaner Production, 195: 1533–1545

    Article  Google Scholar 

  • Li C Z D, Hong J K, Xue F, Shen G Q P, Xu X X, Mok M K (2016). Schedule risks in prefabrication housing production in Hong Kong: A social network analysis. Journal of Cleaner Production, 134: 482–494

    Article  Google Scholar 

  • Li C Z D, Shen G Q P, Xu X X, Xue F, Sommer L, Luo L Z (2017a). Schedule risk modeling in prefabrication housing production. Journal of Cleaner Production, 153: 692–706

    Article  Google Scholar 

  • Li C Z D, Xu X X, Shen G Q P, Fan C, Li X, Hong J K (2018b). A model for simulating schedule risks in prefabrication housing production: A case study of six-day cycle assembly activities in Hong Kong. Journal of Cleaner Production, 185: 366–381

    Article  Google Scholar 

  • Li C Z D, Xue F, Li X, Hong J K, Shen G Q P (2018c). An Internet of Things-enabled BIM platform for on-site assembly services in prefabricated construction. Automation in Construction, 89: 146–161

    Article  Google Scholar 

  • Li C Z D, Zhong R Y, Xue F, Xu G Y, Chen K, Huang G G Q, Shen G Q P (2017b). Integrating RFID and BIM technologies for mitigating risks and improving schedule performance of prefabricated house construction. Journal of Cleaner Production, 165: 1048–1062

    Article  Google Scholar 

  • Li H X, Al-Hussein M, Lei Z, Ajweh Z (2013). Risk identification and assessment of modular construction utilizing fuzzy analytic hierarchy process (AHP) and simulation. Canadian Journal of Civil Engineering, 40(12): 1184–1195

    Article  Google Scholar 

  • Li M, Li G, Huang Y, Deng L (2017c). Research on investment risk management of Chinese prefabricated construction projects based on a system dynamics model. Buildings, 7(3): 83

    Google Scholar 

  • Li X, Han S H, Gül M, Al-Hussein M (2019). Automated post-3D visualization ergonomic analysis system for rapid workplace design in modular construction. Automation in Construction, 98: 160–174

    Article  Google Scholar 

  • Li Z, Shen G Q P, Xue X L (2014). Critical review of the research on the management of prefabricated construction. Habitat International, 43: 240–249

    Article  Google Scholar 

  • Lin K, Lu X, Li Y, Guan H (2019). Experimental study of a novel multi-hazard resistant prefabricated concrete frame structure. Soil Dynamics and Earthquake Engineering, 119: 390–407

    Article  Google Scholar 

  • Love P E D, Veli S, Davis P, Teo P, Morrison J (2017). See the difference in a precast facility: Changing mindsets with an experiential safety program. Journal of Construction Engineering and Management, 143(2): 05016021

    Article  Google Scholar 

  • Lovell H, Smith S J (2010). Agencement in housing markets: The case of the UK construction industry. Geoforum, 41(3): 457–468

    Article  Google Scholar 

  • Luo L Z, Mao C, Shen L Y, Li Z D (2015). Risk factors affecting practitioners’ attitudes toward the implementation of an industrialized building system: A case study from China. Engineering, Construction, and Architectural Management, 22(6): 622–643

    Article  Google Scholar 

  • Luo L Z, Shen G Q P, Xu G Y, Liu Y L, Wang Y J (2019). Stakeholder-associated supply chain risks and their interactions in a prefabricated building project in Hong Kong. Journal of Management in Engineering, 35(2): 05018015

    Article  Google Scholar 

  • Mao C, Shen Q P, Pan W, Ye K H (2015). Major barriers to off-site construction: The developer’s perspective in China. Journal of Management in Engineering, 31(3): 04014043

    Article  Google Scholar 

  • Mao C, Shen Q P, Shen L Y, Tang L (2013). Comparative study of greenhouse gas emissions between off-site prefabrication and conventional construction methods: Two case studies of residential projects. Energy and Building, 66: 165–176

    Article  Google Scholar 

  • McGraw Hill Construction (2013). Safety management in the construction industry: Identifying risks and reducing accidents to improve site productivity and project ROI. Smart Market Report. Bedford, MA: McGraw Hill Construction

    Google Scholar 

  • Murtaza M B, Fisher D J, Skibniewski M J (1993). Knowledge-based approach to modular construction decision support. Journal of Construction Engineering and Management, 119(1): 115–130

    Article  Google Scholar 

  • Nahmens I, Ikuma L H (2009). An empirical examination of the relationship between lean construction and safety in the industrialized housing industry. Lean Construction Journal: 11–12

  • Nam C H, Tatum C B (1997). Leaders and champions for construction innovation. Construction Management and Economics, 15(3): 259–270

    Article  Google Scholar 

  • Newaz M T, Davis P R, Jefferies M, Pillay M (2018). Developing a safety climate factor model in construction research and practice: A systematic review identifying future directions for research. Engineering, Construction, and Architectural Management, 25(6): 738–757

    Article  Google Scholar 

  • Nussbaum M A, Shewchuk J P, Kim S, Seol H, Guo C (2009). Development of a decision support system for residential construction using panelised walls: Approach and preliminary results. Ergonomics, 52(1): 87–103

    Article  Google Scholar 

  • Polat G (2008). Factors affecting the use of precast concrete systems in the United States. Journal of Construction Engineering and Management, 134(3): 169–178

    Article  Google Scholar 

  • Project Management Institute (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide). 6th ed. Newton Square, Pennsylvania: Project Management Institute

    Google Scholar 

  • Quale J, Eckelman M J, Williams K W, Sloditskie G, Zimmerman J B (2012). Construction matters comparing environmental impacts of building modular and conventional homes in the United States. Journal of Industrial Ecology, 16(2): 243–253

    Article  Google Scholar 

  • Rahman M M (2014). Barriers of implementing modern methods of construction. Journal of Management in Engineering, 30(1): 69–77

    Article  Google Scholar 

  • Richard R B (2005). Industrialised building systems: Reproduction before automation and robotics. Automation in Construction, 14(4): 442–451

    Article  Google Scholar 

  • Saieg P, Sotelino E D, Nascimento D, Caiado R G G (2018). Interactions of building information modeling, lean and sustainability on the architectural, engineering and construction industry: A systematic review. Journal of Cleaner Production, 174: 788–806

    Article  Google Scholar 

  • Salama T, Salah A, Moselhi O, Al-Hussein M (2017). Near optimum selection of module configuration for efficient modular construction. Automation in Construction, 83: 316–329

    Article  Google Scholar 

  • Segura I, Cavalaro S, de la Fuente A, Aguado A, Alegre V (2016). Service-life assessment of existing precast concrete structure exposed to severe marine conditions. Journal of Performance of Constructed Facilities, 30(3): 04015036

    Article  Google Scholar 

  • Shahtaheri Y, Rausch C, West J, Haas C, Nahangi M (2017). Managing risk in modular construction using dimensional and geometric tolerance strategies. Automation in Construction, 83: 303–315

    Article  Google Scholar 

  • Slaughter E S (1998). Models of construction innovation. Journal of Construction Engineering and Management, 124(3): 226–231

    Article  Google Scholar 

  • Smith R E (2016). Off-site and modular construction explained. Off-Site Construction Council, National Institute of Building Sciences

  • Taghaddos H, Hermann U, Abbasi A B (2018). Automated crane planning and optimization for modular construction. Automation in Construction, 95: 219–232

    Article  Google Scholar 

  • Valero E, Sivanathan A, Bosché F, Abdel-Wahab M (2016). Musculoskeletal disorders in construction: A review and a novel system for activity tracking with body area network. Applied Ergonomics, 54: 120–130

    Article  Google Scholar 

  • Wang Z, Hu H, Gong J (2018a). Simulation based multiple disturbances evaluation in the precast supply chain for improved disturbance prevention. Journal of Cleaner Production, 177: 232–244

    Article  Google Scholar 

  • Wang Z, Hu H, Gong J (2018b). Framework for modeling operational uncertainty to optimize offsite production scheduling of precast components. Automation in Construction, 86: 69–80

    Article  Google Scholar 

  • Webster J, Watson R T (2002). Analyzing the past to prepare for the future:Writing a literature review. Management Information Systems Quarterly, 26(2): xiii–xxiii

    Google Scholar 

  • Wohlin C (2014). Guidelines for snowballing in systematic literature studies and a replication in software engineering. In: Proceedings of the 18th International Conference on Evaluation and Assessment in Software Engineering—EASE’14. London, UK: Association for Computing Machinery (ACM), No. 38

    Google Scholar 

  • Wu P, Xu Y D, Jin R Y, Lu Q Q, Madgwick D, Hancock C M (2019). Perceptions towards risks involved in off-site construction in the integrated design & construction project delivery. Journal of Cleaner Production, 213: 899–914

    Article  Google Scholar 

  • Wuni I Y, Shen G Q P (2019a). Holistic review and conceptual framework for the drivers of offsite construction: A total interpretive structural modelling approach. Buildings, 9(5): 117–140

    Article  Google Scholar 

  • Wuni I Y, Shen G Q P (2019b). Risks identification and allocation in the supply chain of Modular Integrated Construction (MiC). In: Al-Hussein M, ed. Proceedings of the 2019 Modular and Offsite Construction (MOC) Summit. Alberta, Canada: University of Alberta, 189–197

    Google Scholar 

  • Wuni I Y, Shen G Q P, Mahmud A T (2019a). Critical risk factors in the application of modular integrated construction: A systematic review. International Journal of Construction Management: 1–15

  • Wuni I Y, Shen G Q P, Osei-kyei R (2019b). Scientometric review of global research trends on green buildings in construction journals from 1992 to 2018. Energy and Building, 190: 69–85

    Article  Google Scholar 

  • Xue H, Zhang S, Su Y, Wu Z (2017). Factors affecting the capital cost of prefabrication—A case study of China. Sustainability, 9(9): 1512–1533

    Article  Google Scholar 

  • Xue H, Zhang S, Su Y, Wu Z, Yang R J (2018). Effect of stakeholder collaborative management on off-site construction cost performance. Journal of Cleaner Production, 184: 490–502

    Article  Google Scholar 

  • Zhai X, Reed R, Mills A (2014). Factors impeding the offsite production of housing construction in China: An investigation of current practice. Construction Management and Economics, 32(1-2): 40–52

    Article  Google Scholar 

  • Zhai Y, Zhong R Y, Huang G Q (2015). Towards operational hedging for logistics uncertainty management in prefabrication construction. IFAC-PapersOnLine, 48(3): 1128–1133

    Article  Google Scholar 

  • Zhang X, Skitmore M, Peng Y (2014). Exploring the challenges to industrialized residential building in China. Habitat International, 41: 176–184

    Article  Google Scholar 

  • Zhong R Y, Peng Y, Xue F, Fang J, Zou W W, Luo H, Ng S T, Lu W S, Shen G Q P, Huang G Q (2017). Prefabricated construction enabled by the Internet-of-Things. Automation in Construction, 76: 59–70

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong, China

    Ibrahim Yahaya Wuni & Geoffrey Qiping Shen

  2. Department of Building, National University of Singapore, Singapore, 117566, Singapore

    Bon-Gang Hwang

Authors
  1. Ibrahim Yahaya Wuni
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Geoffrey Qiping Shen
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Bon-Gang Hwang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ibrahim Yahaya Wuni.

Additional information

This paper was fully funded under the Hong Kong Ph.D. Fellowship Scheme (HKPFS: PF17-00649) by the Research Grants Council of the Hong Kong Special Administrative Region, China. The paper constitutes a part of a Ph.D. research project currently being conducted at The Hong Kong Polytechnic University.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Wuni, I.Y., Shen, G.Q. & Hwang, BG. Risks of modular integrated construction: A review and future research directions. Front. Eng. Manag. 7, 63–80 (2020). https://doi.org/10.1007/s42524-019-0059-7

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s42524-019-0059-7

Keywords

Search

Navigation