Khan, A. A.; Yu, R.; Liu, T.; Gu, N.; Walsh, J. and Mohandes, S. R. (2026) Nudge or mandate: An exploration into the constraints of volumetric modular construction in Australia. Smart and Sustainable Built Environment, 15(3), pp. 1115-1148. ISSN 2046-6099
Abstract
Purpose – To incentivize innovation, support competitiveness, lower skill scarcities, and alleviate the housing affordability difficulty, proponents underscore the pertinence of embracing contemporary construction methodologies, with particular emphasis on volumetric modular construction (VMC) as a sustainable paradigm for production and consumption. However, construction industry stakeholders in Australia have encountered profound challenges in adopting VMC, as its adoption remains significantly low. Therefore, this study investigated the constraints that hinder VMC in the Australian construction industry. Design/methodology/approach – The study used qualitative methodology using semi-structured interviews as a core approach to glean professional experts' perspectives and insights, along with Pareto and mean index score analyses. Findings – The study identified 77 reported and validated VMC constraints by professionals, categorizing them into eight categories: cultural, economic, knowledge, market, regulatory, stakeholder, supply chain, and technological. The mean index score analysis reveals stakeholder (µ = 9.67) constraints are the most significant, followed by cultural (µ = 9.62) and regulatory (µ = 9.11) constraints. Pareto analysis revealed 25 of the 77 constraints as 'vital few" among different categories. This study presented causal relationships and mitigation strategies for VMC constraints, followed by an argument on whether VMC adoption in Australia requires a nudge or mandate. Practical implications – This study offers guidance for efficient resource allocation, aiding management and government policy formulation. It's also valuable for global audiences, especially countries transitioning to modular construction. Originality/value – This is one of the first studies to identify VMC constraints and delineate them into different categories in Australia, identify their causal interrelationships, and deliver countermeasures to overcome them.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Australia; constraints; mitigation strategies; Pareto analysis; semi-structured interviews; volumetric modular construction |
| Index terms: | interview, mandate, strategy, housing affordability, mitigation, exploration, methodology, modular construction, consumption, pareto analysis, resource allocation, Australia, competitiveness, paradigm, government policy, construction industry |
| Subjects: | research methods, Geography, financial risk, market analysis, building construction, consumer economics, environmental resource management, public policy, education and knowledge transfer, management, industry analysis, political science, data collection methods, quality control, resource management |
| Topics: | Research Practice, Business Strategy, Cost Management, Governance, Construction Technology, Stakeholder Management, Site Management, Geographical Context, Sustainability, Quality Management |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here