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

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.

Keywords

modular integrated construction / off-site construction / risk events / review

References

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

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

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

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

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

[6] Blismas N G, Pasquire C, Gibb A G F (2006). Benefit evaluation for off-site production in construction. Construction Management and Economics, 24(2): 121–130

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

[8] 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

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

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

[11] 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

[12] 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

[13] Construction Industry Council (2018). About Modular Integrated Construction. Construction Industry Council. Available at: cic.hk/eng/main/mic/

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

[15] 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

[16] 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

[17] 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

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

[19] 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

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

[21] 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

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

[23] 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

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

[25] 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

[26] 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

[27] 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

[28] 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

[29] 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

[30] 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

[31] 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

[32] 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

[33] 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

[34] 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

[35] 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

[36] 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

[37] 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

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

[39] 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

[40] 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

[41] 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

[42] 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

[43] 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

[44] 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

[45] 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

[46] 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

[47] 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

[48] 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

[49] 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

[50] 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

[51] 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

[52] 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

[53] 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

[54] 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

[55] 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

[56] 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

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

[58] 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

[59] 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

[60] 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

[61] 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

[62] 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

[63] 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

[64] 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

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

[66] 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

[67] 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

[68] 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

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

[70] 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

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

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

[73] 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

[74] 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

[75] 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

[76] 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

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

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

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

[80] 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

[81] 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

[82] 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

[83] 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

[84] 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

[85] 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

[86] 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

[87] 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

[88] 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

[89] 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

[90] 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

[91] 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

[92] 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

[93] 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

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

[95] 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

RIGHTS & PERMISSIONS

2020 Higher Education Press