A conceptual model to determine the impact of off-site construction on labour productivity

Despite the efforts of governments and firms, the construction industry is trailing other industries in labour productivity. Construction companies are interested in increasing their labour productivity, particularly when demand grows and construction firms cope with labour shortages. Off-site construction has proved to be a favourable policy to increase labour productivity. However, a complete understanding of the factors affecting construction labour productivity is lacking, and it is unclear which factors are influenced by off-site construction. This study developed a conceptual model describing how 15 factors influence the construction process and make a difference in labour productivity between off-site and on-site construction. The conceptual model shows that all 15 factors affect labour productivity in three ways: through direct effects, indirect effects and causal loops. The model is a starting point for further research to determine the impact of off-site construction on labour productivity.