Critical risk factors in the application of modular integrated construction: a systematic review

Abstract

The business model of modular integrated construction (MiC) demands a unique design, engineering, supply chain, stakeholder composition, construction and management. These requirements engender manifold uncertainties and risks events which may derail the success of MiC projects. Empirical studies have examined the risks associated with MiC in different countries. However, the critical risk factors (CRFs) in the application of MiC have not been reviewed. This study conducted a systematic review and synthesis of 39 empirical studies on the risks of MiC and identified 30 CRFs. Based on the frequency of occurrences, the top ten (10) CRFs in the application of MiC have been discussed. Of these, stakeholder fragmentation and management complexity; higher initial capital cost; poor supply chain integration and disturbances; delays in delivery of modular components to the site and poor government support and regulations constitute the five (5) most CRFs. The findings are useful to countries which are yet to adopt MiC and may broaden the understanding of offsite construction researchers and practitioners on the risks of MiC. Future studies would make a quantitative ranking of the CRFs and propose management strategies.