Does Prefabrication boost ROI in construction or disrupts the project?

Does Prefabrication boost ROI in construction or disrupts the project?

Since 1970’s the adoption of prefabrication or off-site modular construction was low in the AEC Industry due to resistance by the key stakeholders of sturdy quality displayed in a project. But with the acceptance of recent Construction trends and technologies, prefabrication may grow importance to every Construction Companies.

Many construction companies have after the acceptance and adoption of prefabrication believed that it shortens the timeline of a project. Prefabrication process being implemented in a project aids in the reduction of material waste and budget that provides the desired outcome as expected. It improves productivity to competitive add-on advantage and generates higher ROI.

With the alignment of the BIM Services process implied to a project with prefabrication can work great for complex projects in the future. If the designers can provide precise information and updated regularly into the design model can facilitate prefabrication in BIM. But due to architects not filling detailed information into the design model, there can be a failure in achieving a precise outcome for the same.

Re-emergence of prefabrication due to 3D BIM Model and green building exhibits on how the design technology and manufacturing work together to improve the industry while creating visually impactful structures. Innovation in manufacturing would allow prefabricated components to be cut or shaped with precise size for assembly. Unique coding can be done for the prefabricated components for identification and sequencing in the next phase, which can streamline the process.

Prefabrication offers compressive advantages of being economical, flexibility in the design model, less construction time. With a growing manufacturing industry that is becoming extensively popular, prefabrication concept is arising.

Prefabricated components are mostly used for a large-scale construction project which tackles the labor shortage issues to build with less labor.

Below we will discuss how prefabrication can be helpful to the construction industry or will it be a disruptive technology.

BIM for Prefabrication

Structural BIM Services makes it easier to prefabricate components due to constructability test conducted in the model and ensures structures to timely complete and get installed for the prefabricated component. BIM has increased the use of prefabrication in construction projects, which improves worksite productivity, quality, and ROI on projects.

Builders and manufacturers can get highly detailed, an accurate schematic of every component that is to be prefabricated through BIM enhancement.  BIM Platform plugins can manipulate the information fixed firmly in models into a bill of materials that can be used for prefabricating components in a tightly controlled environment where adverse weather conditions are eliminated.

For example, Structural engineers can use the information in a BIM Model to collaboratively prefabricate roof truss, floor truss, lumber, and communication system pathways so that the contractors can make the construction progress into place. But with BIM-enabled prefabrication, this on-site step can be completed after the project expert visits the on-site area location.

Prefabrication increases ROI based on productivity

Prefabrication and modularization usually happen with MEP system, exterior walls, building structures, and structural component structures. Due to which project schedules have been improved, reduced projection costs and on-site construction waste is reduced to give rise to green buildings in the near future.

Newbie technologies and construction practices can utilize these strategies to create innovative and advanced environmental impacted buildings, which enhances construction productivity along with usage of prefabrication. It aids at constructing superior building while saving cost, time, and waste.

The emergence of Building Information Modeling and prefabrication work together to improve the overall construction productivity and projected ROI increases. Productivity increased from prefabrication leads to decreased project schedules, lower costs, and construction waste.

Benefits of Prefabrication

Prefabrication means an assembly of many components at the manufacturing site and transporting them back to construction site location. It is at times understood as a cheaper and mass-produced mode of construction, which improves the quality and estimated budgets controlled.

Numerous benefits of prefabricated construction are as follow:-


Prefabrication is considered energy-efficient and sustainable construction. A conventional method of construction used to lead to material waste due to additional consumption of materials. Since prefabricated material is assembled at the manufacturing site and can be recycled in-house also. The controlled environment of a factory creates more accurate construction, better air filtration, and improves material waste that allows insulation properly and increases energy efficiency that in turns give rise to the standard of constructing green buildings.

Financial savings

Modular construction would take care of all the budgets and costs to create an effective option. Often the material suppliers give a substantial discount to the prefabrication manufacturers to cut down the construction cost on a project. Reduction in construction time also saves costs on a project and cuts off unproductive staff to enhance the productivity and quality of a project.


Prefabricated components lay the ability to disassemble and relocate prefabricated components to different construction sites. Reduced in materials, minimizes energy, and reduces the time that allows prefabrication construction to have flexibility in the design structure.

Stability in Quality

A prefabricated component, when created in a controlled environment at the manufacturing site, follows specific standards to create regularity in quality of sub-assemblies of a structure. Construction project quality would depend upon skill levels and schedules of contractors. Precise machinery to ensure building code is secured while constructing building components.

Reduced Site Disruption

On the actual construction site, there is a minimum requirement of transport drivers, material suppliers, and equipment as components get build in a factory. While the conventional Jobsite used to have more noise, pollution, waste and other disruptions. It eliminates interference, distractions, and creates efficiency for construction sites.

Shorter Construction Time

Prefabrication construction takes less time than the traditional construction due to better upfront planning, eliminating weather conditions, scheduling delay by subcontractors, and quick fabrication as many components can be constructed. Lesser construction time allows companies to enhance the productivity of multiple prefabricated construction projects.


Sub-assemblies are created in a controlled environment with dry materials that substitute the risk of moisture, hazards, and sturdy. Professionals involved in the project are less prone to weather-related health risks. For prefabricated components are done by workers, proper processes and procedures are needed to be followed.


Prefabrication or modular construction is gaining momentum with other new technologies to achieve high quality, saves time and cost of a project as prefabricated components are constructed on a manufacturing unit and then transported to an actual construction site.

Prefabrication construction is much better than the conventional construction method as it aids in flexibility of design structures, economic and less construction time. It also looks after the multiple components construction in an aspect of price and budget. It leads to increasing mechanization and standardization of components to be used in a project.

There is a huge future scope for modular construction as many construction companies are going to invest in it to leverage the benefit of enhanced productivity and quality, even on complex projects.

Written By:
Dhvani Badheka
Dhvani is an irreverent writer who has over 4 years of experience under her belt. She is a life-long learner and a quick study which provides her articles a unique insight. She is always reading, researching new materials and trying to expand her knowledge of the AEC industry so that she can create interesting and valuable content.

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