Risk Management Based on Intelligent Prefabricated Building: Review

This report presents a comprehensive literature review on risk management within the context of prefabricated buildings. It begins by defining prefabrication and its historical evolution, highlighting the shift from traditional stick-built construction to off-site manufacturing and modular construction. The review explores various aspects of prefabricated buildings, including production processes, design considerations, and assembly techniques. The discussion extends to the critical role of risk management in construction projects, emphasizing its importance from project inception through completion. It covers risk identification, assessment, and mitigation strategies, with a focus on the unique challenges and opportunities presented by prefabricated building methods. The report draws on a range of scholarly sources to provide a well-rounded understanding of the current state of knowledge and best practices in this field.

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Risk management based on the intelligent Prefabricated Building
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Chapter-2
Literature Review
Prefabricated Building
Prefabrication is defined to be the practice of assembling of components of the structure
in the factory or in the other site of manufacturing, and shipping the complete assemblies or the
sub-assemblies to the site of construction in which the structure is located (Navaratnam,
Gunawardena and Henderson, 2019). First prefabricated home was constructed in the year 1600,
in England and it was found to be transported to Massachusetts. Subsequently, the prefabricated
home was not being extensively utilized till the second world war when there were mobile
homes were constructed for supplying housing for the personnel of military (Tumminia et al.,
2018). In an aim to select the best home the owner or the builder must have the knowledge
regarding the key methods of construction which are available. Additionally, it is imperative for
the individuals for realizing the differences among the diverse prefabricated homes types and
what is perceived to be a modular home or building. In present construction of buildings several
techniques re usually utilized for producing the desired outcomes. Correspondingly, the stick
build building is constructed on the site by the skilled labour. The materials are being shipped
separately to the site and nearly the overall building is constructed on the site. Fard et al., (2017)
stated that some assemblies to the site-built building might be arriving to the location
prefabricated for instance the floor and roof joists. Subsequently, the prefabricated home is
known to be consisting various factory constructed components which are assembled on the site
for completing the unit. Moreover, the prefabricated buildings consist the precut, modular and
penalized buildings. In the current era, the modern modular buildings or home are constructed of
2 or more 3 dimensional boxes which are transported entirely to site where they are found to be
linked with one another at the walls. These modules are usually constructed with electrical
components, cabinets, plumbing and also every other factor completed, finished and installed in
the factory setting. Subsequently, they should comply with all state and local building codes.
According to… prefabrication has found to become the significant and cost-efficient concept in
the current fast track culture of construction in the world. Similarly, in some of the developed
states, the off-site manufacturing and prefabrication of building services factors is becoming
highly popular. Prefabricated building approach is mainly installed in the buildings for

addressing the issues that are linked with the conventional methods and are provided to be the
shortens on the construction period of site, thereby, enables completion of the project timely and
also increase investment maximum return (Chang et al., 2018). Additionally, with the rising
concern regarding the sustainable design and construction, it is going to be helpful for
constructing and using more of the prefabricated factors to minimize the environmental effect of
the life cycle of building.
Hong et al., (2018) Stated that the phrase fabricated refers to offering the material with
the particular properties consisting the density, dimension, conductivity, shape and other factors,
as per the process of manufacturing. Likewise, the prefabrication refers to the production of the
components building parts and its service before their assembly on the site. The prefabricated
techniques could be utilized in massive application range during the process of construction,
from simple hut on the prefabricated site, up to the volumetric units which are found to be
designed for the integration in the structure of building. Moreover, the building components
production offsite is not found to be the new concept. Zhong et al., (2017) argued that the OSM
(off site manufacture) is referring to the production of all or some part of the object in the
specific place that is found to be other than its final position where it is going to be installed.
Subsequently, when implemented on the construction of building, it consists the fabrication and
the pre-assembly (Li et al., 2020). Through definition the pre assembly is referring to the
assembly and manufacturing of the complex unit consisting various components prior to the
onsite unit’s installation. The approach off site has provided to reduced the need for the work on
site and could assist in reducing the installation times of site and thereby effecting the onsite
costs. Prefabricated buildings are known to be implying the building assembled through the
prefabricated components on the site of construction that is being characterized through the
convenient construction, short and low-cost construction. In comparison to the traditional
building, the utilization of the prefabricated buildings provides benefits in terms of social,
environmental and economic benefits (Yan and Zhang, 2021). Hence, in the current construction
industry stage, it is essential for prefabricated buildings development to address the safety
hazards that are hidden and minimizing or preventing the human casualties during the process of
construction.

Production
Production of building is the management and organization of the equipment, plans, labor
and material that is involved in the building of construction, whereas at the similar time
complying to all of the rules, contractual stipulations and codes (Shi, Kang and Song, 2017).
Additionally, the procedure must be designed for running efficiently for keeping the costs low
and also permitting the investment return to realized as soon as possible. Subsequently, the
process of building production starts when the individual considers to seriously invest in the ends
and structure only when the finished building is provided to be in use (Chan and Zeng, 2003).
According to Li (2020) the process is known to be divided into the stages that are followed in the
logical sequence. Moreover, the planning of production is highly crucial, as it is related closely
to the duration, sustainability and quality of the project. Similarly, the constraints usually differ
for every project, still the planning of production in the modular construction has found to failed
for changing with the characteristics of project. As an outcome, construction delays and
bottlenecks are becoming the general issues that are seen within the modular construction, that,
in turn, reduce the ratio of production, that causes the production for being inefficient.
Commonly, the process of production is being determined through the quantity and type of
components, production and delivery plan and the resources plan. Nevertheless, in the modular
construction it is provided that the construction industry characteristics should be considered.
Additionally, it means that it is massively affected by the characteristics of the order reliant
industry and the “multi product” mass productions.
Design
Prefabricating housing, is usually linked with the blighted monotonous grey boxes and
urban landscape, that has found to evolved in the approach of the housing with the wealth of
structural and aesthetic possibilities (Yuan, Sun and Wang, 2018). Subsequently, the
contemporary methods of the assembling and construction prefabricated buildings with the
massive panel’s methods which date to the nineteenth century are found to be experiencing the
renaissance. Correspondingly, the rising integration needs among the disciplines and roles
throughout the operation, design and construction process is being assisted through the
technologies that are computer aided. Yuan et al., (2020) stated that the CAM (Computer aided
manufacturing) and CAD (computer aided design) consist the utilization of the computer
software for the designing, and on the massive scale projects this is known to be extensively

assisting prefabricated design, as it is known to be offering the organizational structure for the
added coordination. Additionally, the designs that are computer aided could assist in enhancing
the communication and quality of the design among the owners and designers, sub-consultants,
project participants, engineer, citizens and others.
Assembly
Li et al., (2018) stated that collection, assemble, gather refers to bringing together in
mass, unit or group. Subsequently, the prefabrication is the industry development term that is
used for depicting assemblies which are fabricated within the processing conditions of
processing factory and it is afterward being transported to the site of construction. Additionally,
the prefabrication is presented to be the act of assembling the segments of the structure in the
process of manufacturing or the site of assembling and transporting the entire sub gatherings or
congregations to the development site in which the structure is provided to be constructed
(Eversmann, Gramazio and Kohler, 2017). Additionally, all of the technologies are provided to
be trying for reducing the time and cost, prefabrication methods offer the possibility for the
designers to assemble their structures in short span of time. Likewise, the prefabricated
assembled ties of the edge framework that are welded or screwed with one another are used
regularly to casing the rooftops and roofs. Though there are provided to be several advantages
linked with the developing and the assembling of the buildings using the frameworks of
prefabrication, few constraints also be presented.
Risk Management
Risk is explained as in terms of events that are uncertain that might have negative or
positive effect on the objectives of project. Risk consists the situations or circumstances, the
occurrence or existence of which, in all of the reasonable foresight, outcomes in the negative
effect on any aspect of the project implementation (Aven and Renn, 2010). Correspondingly, the
risk management is structured and planned process that is aimed toward assisting the team of
project to make right decisions on right time for quantifying, classifying, and identifying the
risks and afterwards controlling and managing them. Basically, the key aim is for ensuring the
best value for project in terms of time, quality and cost through balancing the input for managing
the risks with benefits from these acts (Leo, Sharma and Maddulety, 2019). Moreover, risk
management is presented to be the continuous process that is implemented in any type of project

from the time of inception to the stage of competition. Nevertheless, in an aim to realist its
overall potential, the risk management must be implemented at the early project stage that is the
feasibility construction and design. Similarly, there are found to be several uncertainty sources in
the projects of construction, that consisting the construction parties performance, contractual
relations, resources availability and others due to which the projects of construction faces the
issues which could be causing the delay within the time of project completion. Additionally, the
project success is measured through its capability of getting completed within the provided time
and budget (Górecki and Bizon-Górecka, 2017). These goals are found to be connected with one
another in which every parameter has an effect when other parameters are found to be affected.
Subsequently, the accurate scheduling and cost estimation must be performed in an aim to meet
the overall time deadline and budget of the project. Thereby, the risk management is known to
be becoming the integral aspect of the management of construction that is intended for managing
and identifying the unforeseen and potential risks during the implementation period of projects,
thereby, the need for risk management occurs. (Zou, Kiviniemi and Jones, 2017) provided that
risk management is highly crucial process. It is found to be extensively utilized in such projects
in which the risks susceptibility is extensively high and it is being characterized through
controlling, planning and monitoring the risks in more formal and structured manner.
Additionally, the highly efficient method to identify risks is for studying the projects that have
been similar and were executed in the past that offers an insight to the success and failure of
project (Al-Ajmi and Makinde, 2018). Moreover, for being sure that project objectives have been
met, the risks portfolio linked with all of the stakeholders must be considered around THE plc
(project life cycle). In afterward stages, the risk management when being applied in systematic
manner assist for controlling those critical aspects that could be adversely affecting the
performance of project. In addition, keeping the track for the threats that are identified would be
resulting in the early warning for project managers if any time, cost, objectives or quality are not
being met. This provided to be the risks plethora that are needed to be identified in the industry
of construction and which could be faced in every construction project at any time regardless of
the scope and size (Xia et al., 2018). Subsequently, the frequent changes in the scope are
provided to be one of the key risks in the project of construction. If revised the design or scope is
implement, it could have an impact in the form of the additional resources of cost and time.
Furthermore, Serpell, Ferrada and Rubio (2017) stated that the early completion of project might

be also a risk as the delay in the schedule could be. This is because competition of the project
early might result in the insufficient planning or the issues of designs could lead toward the low-
quality product and also raise the overall cost. Hence, it is crucial for keeping the balance in the
notion of quality, time and cost. Risks might be varying reliant on the type and scope of the
project.
China Construction Industry
Chinese economy, and in specific its sector of construction, have been observed to be
having some extensive changes in the current years. As China is presented to be the vast state,
with several distinct and autonomous parts, there are found to be key differences among the
regions (Gao and Tian, 2020). Constructure industry was not found to be recognized in an
official manner as being the economy separate sector that contributes extensively in the GDP
(gross domestic product) till the year 1980. Prior to 1980 the construction industry was perceived
as just being the subordinate workforce offering the effect to the country’s programme of fixed
capital investment. Several individual, consisting particular “top governmental officials”, have
perceived that the activities of construction consist simply the assembling of plant, material and
also other items that are being made through the other sectors of economy for forming building
the works of civil engineering, added no value for the total social product. Additionally, the
construction companies were found to be under the direct supervisions of the local governments
or central ministries (Xu, Wang and Tao, 2019). Likewise, their operations were found to be
restricted through agencies of supervisory government to specific sectors and the geographical
regions. As an outcome, most of them have been lacking the horizontal experience and mobility
in other sectors. Moreover, the enterprises hold little autonomy in relation to acquiring the
workload. They need to wait for the agencies of government for assigning the works of
construction. Besides, the managerial and technical personnel and the skilled filled labourers and
workers were allocated through the supervisory agencies of government. Construction
equipment, building material, working capital as well as other inputs were also being allocated
through the government as being part of the process of central planning. Similarly, the overall
industry can, thereby, viewed as being the single large firm with the centralized “hierarchical”
organization, in which the production factors and other resources were associated exclusively by
administrative channels (Miao, Yin and Takefuji, 2020).Obvious weaknesses in the system are
hindering the healthy development of the construction industry, and the problems have become

more serious over time. The central government realized this in 1980 when Mr. Deng Xiaoping
pointed out that the construction industry, as an important manufacturing sector, could be a for-
profit industry. Then the situation began to change in the early 1980s and the construction
industry introduced a number of reform plans (Xiao et al., 2021). The environment in which
China's construction industry operates refers below to the system that regulates the relationships,
behaviors and interactions of all participants in the industry. The regulatory framework includes
government agencies and industry associations and includes procurement policies and
procedures, licensing requirements, norms and standards, taxes, credit systems, import and
export policies and rules, and laws such as building law, contract law, and tender law. The
construction industry has made significant contributions to China's economic development and
urbanization process. The total output value of China's construction industry increased from
US$217.6 billion to US$2.902 trillion, an increase of 1160% (China Statistical Yearbook) (Xu
and Xu, 2021). However, my country's construction industry is still a traditional industry, with
characteristics such as low efficiency, high pollution, high capital requirements, and imperfect
structure, which hinder its development. With the further deepening of China's economic
globalization, the optimization and upgrading of the industrial structure will be the main task of
China's construction industry in the future.Scholars have comprehensively analyzed the
optimization and upgrade of the construction industry. Studies about the construction industry
have paid substantial attention to the state-of-the-art status, driving factors, the development
pattern, and industrial association. Researchers have been inclined to regard the development of
the construction industry as the result of the interactions between construction and external
environmental factors. However, studies about influencing power and association structure and
their level of correlation in the construction industry are lacking, and those that have been
published fail to provide effective recommendations for policymakers. The growth and evolution
of any industry is inextricably related to other industries. Exploring the characteristics of
influencing power and association structure and their level of correlation in the construction
industry is particular significant for understanding the status and development of laws, as well as
for optimizing the industrial structure and improving the efficiency of the construction industry,
which are fundamental for upgrading to an optimal construction industry. To comprehensively
analyze the characteristics of China’s construction industry from the perspective of growth and
evolution, the total consumption coefficient and the total distribution coefficient were employed

to reveal the influencing power of the construction industry (Chuai et al., 2021). Based on these
two coefficients, the driven coefficient and driving coefficient are used to reflect the general
effect of the construction industry on the entire industry network. The driven and driving
networks were constructed using the total consumption coefficient and total distribution
coefficient to reveal the critical position of the construction industry in the network. The
construction industry in China is expected to grow steadily over the next four quarters.

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