https://doi.org/10.24928/2024/0215

Cost Control in Modular Construction: A Taxonomy for Effective Cost Management

Margaret P. Keorapetse¹, Helena Utzig² & Carlos T. Formoso³

¹Ph.D. Student, Building Innovation Research Unit (NORIE), Federal University of Rio Grande do Sul (UFRGS), Porto Alegre, Brazil, [email protected], http://orcid.org/0000-0003-1037-5968
²MSc Student, Building Innovation Research Unit (NORIE), Federal University of Rio Grande do Sul (UFRGS), Porto Alegre, Brazil, [email protected], http://orcid.org/0000-0002-8213-4808
³Professor, Building Innovation Research Unit (NORIE), Federal University of Rio Grande do Sul (UFRGS), Porto Alegre, Brazil, [email protected], http://orcid.org/0000-0002-4772-3746

Abstract

The cost effects of modular construction, which shares the same principles with lean construction, have been a subject of debate among researchers, with contrasting perspectives on how to control costs, compared to traditional construction cost management methods. Proponents of modular construction indicate that it can potentially be cost effective compared to traditional construction. As modular construction is gaining momentum in the construction industry, slowly replacing traditional on-site construction methods, there is a need for new cost control methods. The unique characteristics of modular construction create distinctive cost control difficulties. In this article, an attempt is made to showcase challenges and factors influencing costs in modular construction. The aim of the study is to propose a taxonomy of costs for modular construction processes. The study is ongoing and preliminary results presented in this article seek to understand the production process of modular construction, its associated costs and highlight potential cost control methods that align with the unique features of modular construction.

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Reference

Keorapetse, M. P. , Utzig, H. & Formoso, C. T. 2024. Cost Control in Modular Construction: A Taxonomy for Effective Cost Management, Proceedings of the 32nd Annual Conference of the International Group for Lean Construction (IGLC 32) , 167-178. doi.org/10.24928/2024/0215

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