Nudge or mandate: an exploration into the constraints of volumetric modular construction in Australia

PurposeTo incentivize innovation, support competitiveness, lower skill scarcities, and alleviate the housing affordability difficulty, proponents underscore the pertinence of embracing contemporary construction methodologies, with particular emphasis on volumetric modular construction (VMC) as a sustainable paradigm for production and consumption. However, construction industry stakeholders in Australia have encountered profound challenges in adopting VMC, as its adoption remains significantly low. Therefore, this study investigated the constraints that hinder VMC in the Australian construction industry.Design/methodology/approachThe study used qualitative methodology using semi-structured interviews as a core approach to glean professional experts' perspectives and insights, along with Pareto and mean index score analyses.FindingsThe study identified 77 reported and validated VMC constraints by professionals, categorizing them into eight categories: cultural, economic, knowledge, market, regulatory, stakeholder, supply chain, and technological. The mean index score analysis reveals stakeholder (µ = 9.67) constraints are the most significant, followed by cultural (µ = 9.62) and regulatory (µ = 9.11) constraints. Pareto analysis revealed 25 of the 77 constraints as ‘vital few” among different categories. This study presented causal relationships and mitigation strategies for VMC constraints, followed by an argument on whether VMC adoption in Australia requires a nudge or mandate.Practical implicationsThis study offers guidance for efficient resource allocation, aiding management and government policy formulation. It's also valuable for global audiences, especially countries transitioning to modular construction.Originality/valueThis is one of the first studies to identify VMC constraints and delineate them into different categories in Australia, identify their causal interrelationships, and deliver countermeasures to overcome them.