Issue Focus

● Modular construction is attracting attention especially in the residential construction area as an effective alternative method to innovate the entire procurement process with the changing business environment. ● Modular construction could bring various advantages such as reducing the number of on-site labor through the off-site factory production, minimizing weather and climate impacts due to controlled production environment, improving the predictability of air and construction costs in the early stages of the project, improving the safety of the work site, and reducing waste emissions during the production process. ● In modular construction projects, the way of doing business differs from the traditional on-site construction projects due to the dualised production system between the on-site and off-site factory, and the change of the project participants’ collaboration. Therefore, the business model of construction companies would be inevitably changed. ● With the expansion of modular construction in global construction market, various business models are observed to improve the productivity and efficiency of the production and procurement processes which have expanded the business areas along the value chain. Similar cases are also found to secure modular capabilities in Korea. ● Modular construction is one of the alternatives that can be taken to improve the productivity of the construction industry and to innovate the procurement process. However, considering the changing business environment conditions, it is a necessary to consider the modular construction as an long term objective. ● In Korea, institutions such as delivery systems, design standards and specifications are not fully suitable for modular construction projects because they were developed based on the on-site construction projects. Therefore, it is necessary to change institutional conditions so that they could be applicable for modular construction projects.