Risk Management in Modular Construction and Offsite Manufacturing: Challenges, Opportunities, Trends and Technological Solutions
Main Article Content
Abstract
This study systematically reviewed 87 peer-reviewed publications from 2002 to 2024 to explore the challenges and opportunities in modular construction and offsite manufacturing, with a specific focus on risk management. Using six-step thematic analysis framework by Braun and Clarke, this review identified three critical barriers to the adoption of advanced technologies: (1) logistical complexities in transportation and site coordination,
(2) stakeholder fragmentation leading to communication breakdowns and (3) regulatory inconsistencies that hinder scalability. To address these challenges, the study highlighted three transformative digital solutions: (1) digital twins for real-time monitoring and scenario planning, (2) the Internet of Things for enhanced coordination and data transparency and
(3) artificial intelligence for predictive analytics and decision support. The findings revealed that offsite manufacturing and modular construction offer significant benefits in terms of sustainability, cost savings and time efficiency. However, achieving full-scale adoption requires harmonised regulatory frameworks, targeted training initiatives to address skill gaps and policies that support digital technology integration. The study concludes with a call for coordinated action among policymakers, industry stakeholders and educators to facilitate technology-driven transformation in modular construction and maximise its contribution to sustainable and resilient infrastructure development.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Aladayleh, K.J. and Aladaileh, M.J. (2024). Applying the analytical hierarchy process (AHP) to BIM-based risk management for optimal performance in construction Projects. Buildings, 14(11): 3632. https://doi.org/10.3390/buildings14113632
Ali, A.H. and Kineber, A.F. (2023). Exploring stationary and major modular construction challenges in developing countries: A case study of Egypt. Journal of Engineering, Design and Technology, 23(2): 569–598. https://doi.org/10.1108/jedt-03-2023
-0099
AlZarooni, M.O. and Rashid, H.S. (2024). The future of construction: Investigating the latest trends and innovations in off-site construction solutions for worker safety in the United Arab Emirates. In A. Emrouznejad, P.D. Zervopoulos, I. Ozturk, D. Jamali and J. Rice (eds.), Business Analytics and Decision Making in Practice: Proceedings of the International Conference on Business Analytics in Practice (ICBAP 2024). Cham: Springer Nature, 355–377.
Braun, V. and Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2): 77–101. https://doi.org/10.1191/1478088706qp063oa Chatzimichailidou, M. and Ma, Y. (2022). Using BIM in the safety risk management of modular construction. Safety Science, 154: 105852. https://doi.org/10.1016/
j.ssci.2022.105852
Cheng, Z., Tang, S., Liu, H. and Lei, Z. (2023). Digital technologies in offsite and prefabricated construction: theories and applications. Buildings, 13(1): 163. https://doi.org/10.3390/buildings13010163
Doan, D.T., Mai, T.P.A., GhaffarianHoseini, A., Ghaffarianhoseini, A. and Naismith, N. (2024). A review of the current state and future trends in modern methods of construction research. Construction Innovation: Information Process Management, 25(6): 1821–1839. https://doi.org/10.1108/ci-02-2023-0029
Durst, S., Hinteregger, C. and Zieba, M. (2024). The effect of environmental turbulence on cyber security risk management and organizational resilience. Computers and Security, 137: 103591. https://doi.org/10.1016/j.cose.2023.103591
Ghalenoei, N.K., Jelodar, M.B., Paes, D. and Sutrisna, M. (2024). Challenges of offsite construction and BIM implementation: Providing a framework for integration in New Zealand. Smart and Sustainable Built Environment, 13(4): 780–808. https://doi.org/10.1108/sasbe-07-2022-0139
Ginigaddara, B., Ershadi, M., Jefferies, M. and Perera, S. (2025). Conseptualising project management capabilities for offsite construction. Engineering, Construction and Architectural Management, 32(10): 7111–7145. https://doi.org/10.1108/ecam-03-
-0203
Ginigaddara, B., Perera, S., Feng, Y., Rahnamayiezekavat, P. and Kagioglou, M. (2024). Industry 4.0 driven emerging skills of offsite construction: A multi-case study-based analysis. Construction Innovation: Information Process Management, 24(3): 747–769.
Hasan, M. and Lu, M. (2022). Variance analysis on regression models for estimating labor costs of prefabricated components. Journal of Computing in Civil Engineering, 36(5): 4022019. https://doi.org/10.1061/(ASCE)CP.1943-5487.0001037
He, W., Zhang, Z.J. and Li, W. (2021). Information technology solutions, challenges and suggestions for tackling the COVID-19 pandemic. International Journal of Information Management, 57: 102287. https://doi.org/10.1016/j.ijinfomgt.2020
.102287
Hussein, M., Eltoukhy, A.E.E. and Darko, A. (2021). Simulation-optimization for planning off-site construction projects: A comparative study of recent swarm intelligence metaheuristics. Sustainability, 13(24): 13551. https://doi.org/10.3390/su132413551 Kazeem, K.O., Olawumi, T.O. and Osunsanmi, T. (2023). Roles of artificial intelligence and machine learning in enhancing construction processes and sustainable
communities. Buildings, 13(8): 2061. https://doi.org/10.3390/buildings13082061 Kazeem, K.O., Olawumi, T.O., Adam, J.J. and Lam, E.W.M. (2024). Integration of building
services in modular construction: A PRISMA approach. Applied Sciences, 14(10): 4151. https://doi.org/10.3390/app14104151
Khan, A.A., Yu, R., Gu, N., Liu, T., Walsh, J. and Sepasgozar, S. (2023a). Exploring critical risk factors in volumetric modular construction: Fault tree analysis with stakeholders’ perspectives on probability and impact. Journal of Architectural Engineering, 29(4): 4023037. https://doi.org/10.1061/JAEIED.AEENG-1608
Khan, A.A., Yu, R., Liu, T., Gu, N. and Walsh, J. (2023b). Volumetric modular construction risks: A comprehensive review and digital-technology-coupled circular mitigation strategies. Sustainability, 15(8): 7019. https://doi.org/10.3390/su15087019
Khodabocus, S. and Seyis, S. (2024a). Multi-criteria decision-making model for risk management in modular construction projects. International Journal of Construction Management, 24(2): 240–250. https://doi.org/10.1080/15623599.20
2276649
Khodabocus, S. and Seyis, S. (2024b). Trends and future directions of risk management approaches applied in modular construction projects: Systematic review and meta-analysis. Uludağ Üniversitesi Mühendislik Fakültesi Dergisi, 29(1): 311–330.
Lee, D. and Lee, S. (2021). Digital twin for supply chain coordination in modular construction. Applied Sciences, 11(13): 5909. https://doi.org/10.3390/app11135909
Lee, S., Jang, Y., Yi, J.-S. and Son, J. (2023). Identifying critical risk factors and management activities for effective off-site construction projects during the construction phase. Journal of Management in Engineering, 39(4). https://doi
.org/10.1061/jmenea.meeng-5310
Li, X., Lu, W., Xue, F., Wu, L., Zhao, R., Lou, J. and Xu, J. (2022). Blockchain-enabled IoT-BIM platform for supply chain management in modular construction. Journal of Construction Engineering and Management, 148(2): 2229. https://doi.org/10.1061/ (ASCE)CO.1943-7862.0002229
Liu, C., Sepasgozar, S.M.E., Shirowzhan, S. and Mohammadi, G. (2022). Object detection applications in modular construction based on a comparative evaluation of deep learning algorithms. Construction Innovation: Information Process Management 22(1): 141–159. https://doi.org/10.1108/CI-02-2020-0017
Liu, Q., Ma, Y., Chen, L., Pedrycz, W., Skibniewski, M.J. and Chen, Z.S. (2024). Artificial intelligence for production, operations and logistics management in the modular construction industry: A systematic literature review. Information Fusion, 109: 102423. https://doi.org/10.1016/j.inffus.2024.102423
Liu, Z., Hwang, B.-G. and Lim, J.M. (2023). Prefabricated and prefinished volumetric construction: Assessing implementation status, perceived benefits and critical risk factors in Singapore built environment sector. Journal of Management in Engineering, 39(6): 4023045. https://doi.org/10.1061/JMENEA.MEENG-5455
Liu, Z., Li, A., Sun, Z., Shi, G. and Meng, X. (2022). Digital twin-based risk control during prefabricated building hoisting operations. Sensors, 22(7): 2522. https://doi.org/ 10.3390/s22072522
McDermott, O., O’Dwyer, K., Noonan, J., Trubetskaya, A. and Rosa, A. (2024). Developing a lean Six Sigma and BIM framework for enhancing off-site manufacturing. International Journal of Lean Six Sigma, 15(8): 50–69.
Odimarha, A.C., Ayodeji, S.A. and Abaku, E.A. (2024). The role of technology in supply chain risk management: Innovations and challenges in logistics. Magna Scientia Advanced Research and Reviews, 10(2): 138–145. https://doi.org/10.30574/msarr
.2024.10.2.0052
Okudan, O., Budayan, C. and Dikmen, I. (2021). A knowledge-based risk management tool for construction projects using case-based reasoning. Expert Systems with Applications, 173: 114776. https://doi.org/10.1016/j.eswa.2021.114776
Ortega, J., Mesa, H.A. and Alarcón, L.F. (2023). The interrelationship between barriers impeding the adoption of off-site construction in developing countries: The case of Chile. Journal of Building Engineering, 73: 106824. https://doi.org/10.1016/ j.jobe.2023.106824
Ouda, E. and Haggag, M. (2024). Automation in modular construction manufacturing: A comparative analysis of assembly processes. Sustainability, 16(21): 9238. https://doi.org/10.3390/su16219238
Pan, M., Yang, Y., Zheng, Z. and Pan, W. (2022). Artificial intelligence and robotics for prefabricated and modular construction: A systematic literature review. Journal of Construction Engineering and Management, 148(9): 3122004. https://doi.org/ 10.1061/(ASCE)CO.1943-7862.0002324
Peiris, A., Hui, F.K.P., Duffield, C. and Ngo, T. (2023). Production scheduling in modular construction: Metaheuristics and future directions. Automation in Construction, 150: 104851. https://doi.org/10.1016/j.autcon.2023.104851
Pervez, H., Ali, Y., Pamucar, D., Garai-Fodor, M. and Csiszárik-Kocsir, Á. (2022). Evaluation of critical risk factors in the implementation of modular construction. PLoS ONE, 17(8): e0272448. https://doi.org/10.1371/journal.pone.0272448
Picard, L., Blanchet, P. and Bégin-Drolet, A. (2024). On-site handling: Automated connecting device for modular construction used as a lifting apparatus. Structures, 63: 106318. https://doi.org/10.1016/j.istruc.2024.106318
Rafi-Ul-Shan, P., Bashiri, M., Kamal, M.M., Mangla, S.K. and Tjahjono, B. (2024). An analysis of fuzzy group decision-making to adopt emerging fashion supply chain risk management technologies. IEEE Transactions on Engineering Management, 71: 8469–8487. https://doi.org/10.1109/tem.2024.3354845
Rathnasinghe, A.P., Thurairajah, N., Jones, P. and Goulding, J. (2024). The critique of sustainability discourse within the off-site construction (OSC): A systematic-scientometric review. Architectural Engineering and Design Management, 21(3): 379–409. https://doi.org/10.1080/17452007.2024.2386123
Raza, M.H., Besklubova, S. and Zhong, R.Y. (2024). Economic analysis of offsite and onsite 3D construction printing techniques for low-rise buildings: A comparative value stream assessment. Additive Manufacturing, 89: 104292. https://doi.org/ 10.1016/j.addma.2024.104292
Rodríguez-Espíndola, O., Chowdhury, S., Dey, P.K., Albores, P. and Emrouznejad, A. (2022). Analysis of the adoption of emergent technologies for risk management in the era of digital manufacturing. Technological Forecasting and Social Change, 178: 121562.
Shahzad, W.M., Reddy, S.M., Kahandawa, R. and Rotimi, J.O.B. (2024). Benefits, constraints and enablers of modular offsite construction (MOSC) in New Zealand high-rise buildings. Engineering, Construction and Architectural Management, 31(10): 4042–4061. https://doi.org/10.1108/ecam-10-2022-1020
Sing, M., Chan, J., Liu, H. and Ngai, N.N.H. (2021). Developing an analytic hierarchy process-based decision model for modular construction in urban areas. Journal of Engineering, Design and Technology, 21(4): 1212–1229. https://doi.org/10.1108/ jedt-05-2021-0242
Tatari, A. (2023). Simulating cost risks for prefabricated construction in developing countries using Bayesian networks. Journal of Construction Engineering and Management, 149(6): 4023037. https://doi.org/10.1061/JCEMD4.COENG-13259
Temel, S. and Durst, S. (2021). Knowledge of risk prevention strategies for handling new technological innovations in small businesses. VINE Journal of Information and Knowledge Management Systems, 51(4): 655–673. https://doi.org/10.1108/ vjikms-10-2019-0155
Torres, J., San-Mateos, R., Lasarte, N., Mediavilla, A., Sagarna, M. and León, I. (2024). Building digital twins to overcome digitalization barriers for automating construction site management. Buildings, 14(7): 2238. https://doi.org/10.3390/ buildings14072238
Vithanage, S.C., Sing, M.C.P., Davis, P. and Newaz, M.T. (2022). Assessing the off-site manufacturing workers’ influence on safety performance: A Bayesian network approach. Journal of Construction Engineering and Management, 148(1): 04021185. https://doi.org/10.1061/(asce)co.1943-7862.0002224
Vithanage, S.C., Sing, M., Davis, P. and Pillay, M. (2022). Systematic review on the identification of safety risks in off-site manufacturing (OSM). Journal of Engineering, Design and Technology, 20(4): 935–964. https://doi.org/10.1108/ JEDT-12-2020-0498
Wang, M., Ashour, M., Mahdiyar, A. and Sabri, S. (2024). Opportunities and threats of adopting digital twin in construction projects: A review. Buildings, 14(8): 2349. https://doi.org/10.3390/buildings14082349
Wrigley, P., Wood, P., Robertson, D., Joannou, J., O’Neill, S. and Hall, R. (2024). Modular reactors: What can we learn from modular industrial plants and off-site construction research? Nuclear Engineering and Technology, 56(1): 222–232. https://doi.org/10.1016/j.net.2023.09.029
Wuni, I.Y., Shen, G.Q. and Hwang, B.G. (2020). Risks of modular integrated construction: A review and future research directions. Frontiers of Engineering Management, 7(1): 63–80. https://doi.org/10.1007/s42524-019-0059-7
Wuni, I.Y., Shen, G.Q.P. and Mahmud, A.T. (2022). Critical risk factors in the application of modular integrated construction: A systematic review. International Journal of Construction Management, 22(2): 133–147. https://doi.org/10.1080/15623599
.2019.1613212
Zaalouk, A. and Han, S. (2021). Parameterized design optimization framework for worker-friendly workplaces in modular construction. Journal of Construction Engineering and Management, 147(5): 4021030. https://doi.org/10.1061/(ASCE)CO
.1943-7862.0002029
Zabala-Vargas, S., Jaimes-Quintanilla, M. and Jimenez-Barrera, M.H. (2023). Big data, data science and artificial intelligence for project management in the architecture, engineering and construction industry: A systematic review. Buildings, 13(12): 2944. https://doi.org/10.3390/buildings13122944
Zhang, D., Zhao, M., Wang, Y., Vigne, S.A. and Benkraiem, R. (2024a). Technological innovation and its influence on energy risk management: Unpacking China’s energy consumption structure optimization amidst climate change. Energy Economics, 131: 107321. https://doi.org/10.1016/j.eneco.2024.107321
Zhang, Z., Zou, Y., Guo, B.H., Dimyadi, J., Davies, R. and Jiang, L. (2024b). Knowledge management for off-site construction. Automation in Construction, 166: 105632. https://doi.org/10.1016/j.autcon.2024.105632
Zhong, C., Zhang, Y. and Fang, C. (2022). Risk assessment of construction safety of prefabricated building hoisting based on cloud model-entropy method. International Journal of Computer Applications in Technology, 70(3/4): 233. https://doi.org/10.1504/ijcat.2022.10056026
Zhou, J.X., Huang, L., Shen, G.Q., Wu, H. and Luo, L. (2023). Modeling stakeholder-associated productivity performance risks in modular integrated construction projects of Hong Kong: A social network analysis. Journal of Cleaner Production, 423: 138699. https://doi.org/10.1016/j.jclepro.2023.138699