Modularization Barriers and Barrier Breakers in Capital Projects

Abstract Modularization is an execution strategy that transfers work from the project site to an offsite location for improved project performance. It is expected to have significant growth and wide acceptance, leading to enhanced productivity and competitiveness of capital projects. However, many practitioners in capital projects are still unfamiliar with modularization and resist changing from a traditional approach. The implementations have been limited to lower levels of modularization (e.g., prefabs or pipe racks) and lower extents of modularization. Although previous research has investigated barriers to modular/offsite construction in residential and commercial sectors, there is a lack of studies identifying barriers specific to capital projects (including but not limited to petrochemical plants, manufacturing plants, power generation facilities, and mining operations). Thus, this study focuses on identifying barriers to modularization implementation and proposing solutions to break these barriers in capital projects. First, 33 barriers were identified through iterative sessions with the Construction Industry Institute (CII) Research Team (RT-396), a panel of 15 subject matter experts averaging more than 15 years of modularization experience and 28 executed modular studies/projects. Subsequently, a survey based on these barriers was distributed to CII member companies, gathering data from experts affiliated with globally leading owner and contractor organizations, who possess an average of 23 years of industry experience and 11 years of specific modular expertise. The results identified nine top-rated barriers: (1) requirement of early scope/design freeze; (2) unavailability of vendor data; (3) noncompelling business cases; (4) exclusion of modularization from initial design; (5) incompatible project delivery methods; (6) owner reluctance; (7) lack of final drivers; (8) insufficient early fabricator involvement; and (9) lack of project standardization. These findings contribute to the management-in-engineering body of knowledge by showing that modularization adoption in capital projects is constrained primarily by front-end managerial and organizational conditions rather than by technical concerns alone. The comparative analyses and expert-derived specific “Barrier Breakers” strategic solutions developed to overcome each of these nine top-ranked barriers provide actionable guidance for diverse practitioners regarding early decision making, project delivery alignment, and supply-chain integration.