Early design key to cost savings in prefabricated building construction

A detailed study on prefabricated building construction has revealed strategic insights into cost management across the prefabrication lifecycle. Conducted by researchers Lin Liu, Hsing-Wei Tai, Teng Wang, Liang Qiao, and Kuo-Tai Cheng, and published in the journal Nature, the analysis highlights essential practices for enhancing cost efficiency in prefabricated building projects. (main pic: Early design collaboration—better results with more than one person involved.)

The research, involving data from 334 questionnaires distributed to Chinese prefabricated construction companies, assessed four key stages: design, production, transportation, and installation. Using structural equation modelling—a statistical technique that analyses relationships between multiple variables simultaneously—the study highlighted the significant influence of early design decisions on overall project costs.

Interestingly, the findings demonstrate that substantial investment in the design phase of prefabricated buildings significantly reduces costs in subsequent stages, notably production and installation. The research confirms that by optimizing design early, projects can achieve lower material use, streamlined manufacturing processes, and simpler onsite installation procedures.

Efficiency during the production phase also emerged as crucial. Standardized and large-scale manufacturing processes directly contribute to cost reduction per unit. The study identified advanced production technologies and skilled labour as critical elements in controlling manufacturing expenses in prefabricated construction.

Transportation costs, contrary to common assumptions, had the least overall impact. However, the research stresses the importance of meticulous logistical planning and optimized loading strategies for cost-effective transportation, especially for oversized or uniquely shaped prefabricated components.

The installation phase is also significantly impacted by the quality of both design and production. High precision and standardization in prefabricated components greatly diminish onsite adjustments, thus enhancing efficiency and lowering labour costs during installation.

To improve cost efficiency in prefabricated building construction, the study recommends strengthening collaboration across project phases, particularly between design and production teams. Practical measures such as integrated project delivery (IPD) and building information modelling (BIM) are also suggested for improved coordination and reduced rework.

With the global prefabricated buildings market projected to expand significantly beyond its 2023 valuation of approximately AUD $363 billion, with projections reaching approximately AUD $514 billion by 2028, effective cost management practices are increasingly vital.

Ultimately, the research suggests that adopting a comprehensive approach to cost control is essential for effective resource allocation, sustainable growth, and competitive advantage in the prefabricated building construction industry.