On Impacts of Using Prefabrication on Mitigating the Economic Risk in the Construction Industry

This research tries to describe the risk management process in the construction industry and aims to identify and analyze the potential risks which can, directly and indirectly, affect project objectives focused on economic impacts of construction risks and introduce the prefabricated and modular construction (PMC) method as an innovative and alternative method which can mitigate the economic risks in the construction industry as well as the critical success factors and the barriers of applying the PMC method. This present research also tries to answer how the PMC method can reduce the risk of cost overruns, time overruns and increase the profit margins in construction projects and the motivation of this research is to promote the PMC method and attract the construction investor to apply the PMC as an alternative, reliable and more efficient method. In risk management, risk identification and awareness of unexpected events during the construction phase play the main role of project success, therefore the importance of risk management and the consequences of failure in risk identification in the early stage in the construction industry has discussed and to find the potential construction risks, literature review, brainstorming, checklist and questionnaire survey are seen as the main method. At the end in the result and discussion section, qualitative and quantitative Analyzing method is used to rank and weight the results of experts from the questionnaire survey about the critical success factors and barrios of PMC implementation and by probability and impact method, the proximity of potential construction risks are compared in excel sheets and graphs in both conventional and PMC method to show the quantity of risk reduction in PMC method