Modern methods of constructions and their impact upon estimation of cost planning in the uk (3) (1)

1. Running head: ANALYSIS 1
Modern Methods of Constructions and Their Impact Upon Estimation Of Cost Planning In the
UK
Student
Institute
Date

2. ANALYSIS 2
Table of Contents
1. Introduction 4
1.1 Background of the Study 4
1.2 Research Hypothesis, Aim and Objectives 6
1.3 Hypothesis 7
1.4 Research Methodology 7
2. Literature Review 7
2.1 Use Of Modern Methods Of Construction 8
2.2 Effectiveness of MMC 9
2.3 Importance Of Budget Estimation For Construction Sites 12
2.4 Cost Saving Potential 15
2.5 Usefulness Of Modern Construction Methods (MMC) in Budget and Quality 17
2.6 Problems Faced With Modern Methods Of Construction 20
2.7 Expense Budget 21
3. Research Methodology 28
3.1 Secondary Research 29
3.2 Data Collection 30
3.3 Ethnography In Research 32
3.4 Ethical Implications 33
4. Data Analysis and Discussion 33
4.1 Usefulness of MMC 34
4.2 Impact of MMC in Cost Planning 37
4.3 Budget Planning Improvements with MMC 40
5. Conclusion and Recommendations 43
5.1 Conclusion 43
5.2 Recommendations 43

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6. References 46
Tables and Figures
Figure 1: MMC Activity 9
Figure 2: Construction Trends 16
Table 1: Estimation 18
Figure 3: Cost Estimate 21
Table 2: Estimate Class 27

4. ANALYSIS 4
Modern Methods of Constructions and Their Impact Upon Estimation Of Cost Planning In the
UK
1. Introduction
The construction industry has been focusing on innovation and Modern construction
methods to bring effective solutions especially in the perspective of cost cutting and efficient
outcomes. The methods are also expected to reduce the time invested in the construction and
the money invested thereby improving the idea of sustainable development, which is also one of
the most important expectations from the past two months recently. This research paper focuses
on the use of modern methods of construction and how it impacts the cost planning perspective.
1.1 Background of the Study
The development of new techniques and technologies have also taken the great sites in
the construction industries to get to the highly efficient modern methods. With the working on the
sites for the construction work, the methods of construction have been a great help on the sites.
The construction of the building has become easier with the modern methods of construction.
When dealing with the construction and the work, it is important to make a budget for the work.
With a budget estimation, there can be a great help on the sites. The modern methods of
construction have made it easier to estimate the budget on the sites. There is a wide range of
techniques developed as the modern methods of construction and the products used have also
been changed with the user to change the behavior of the construction industry from what was
tuned before the invention and methods of construction developed. This change has been a great
help in the bringing up of the projects involved in the construction and delivering the best of the
results.
The modern methods of construction are the most advanced ways and techniques in
which the constructionindustry can come up with the proper planning and designing of the project
which helps in the reduction of the time taken in construction as well as maintaining the overall
level of safety. The methods have been advanced ways of construction and have helped in getting
the cost reduced as well as maintaining a quality-based construction output.
Modern methods of construction (MMC) is a term used to describe innovative ways to
build high-quality residential and non-residential buildings. MMCs have changed the course and

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behavior of the construction industry over the past few years. They are developed with proper
planning, design, and ideas to address every requirement of the client. Modern methods of
construction help in the effective use of time, reduce the cost of expenses and maintain
sustainability.
Even though MMCs are not a global panacea to resolve the problems faced during
construction,these methods are highly efficient, reliable, and cost-effective.Here's a list of various
MMCs that have helped in the construction process.
Tunnel Form: This modern construction method enables the construction of monolithic
walls and slabs in one operational cycle daily. It is used in resistive projects like apartment blocks,
hotels, and student accommodationareas (Pheng & Hongbin, 2004). The formwork tunnel sectors
are spacious and cranes are used to displace them. This method offers accuracy, speed,
precision, and quality production.
3D Volumetric Construction: 3D volumetric construction involves the use of 3D
manufacturing units to bring and install different modules at the required site. It is also called
modular construction. The method involves either the transportation of single basic structures one
by one or the transportation of finished and completed units. The method helps in the rapid
installation of the products and offers great efficiency.
Precast Concrete Foundations: Another Modern method of construction is the precast
concrete foundation which is highly suitable for a bespoke design. All the required parts and
elements for the construction are prepared and manufactured separately in an off-site located
factory. Then, the manufactured products are brought to the site, assembled, and installed. The
foundation systems help in easy assembling of the construction parts and ensure high-quality,
productivity, and sustainability (Suwanjang & Prompoon, 2012). The method makes construction
easy for places with extreme weather conditions or regions of contaminated ground. Furthermore,
it helps to decrease the soil excavation quantity.
Thin-Joint Masonry: This method enables faster laying and improved productivity by using
adhesives derived from traditional motor beds. It allows the workers to assemble thermal walls
quickly and increase the space by 13.5%.
Twin Wall Technology: The twin-wall technology involves the collaboration of erection
speed and precast concrete to manufacture construction elements that are structurally stable,

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waterproof, and reliable. This type of modern method of construction involves the use of two wall
slabs separated by a cast in lattice girders to amplify the speed of construction and reduce time
consumption. The twin units are temporarily placed and propped at the site of requirement and
connected by a cast. Later, concrete is used to fill the gap between the twin walls.
Concrete Floors And Walls: Concrete is a flooring material (cement flooring )that is used
for the manufacturing of seat walls, decorative exterior, and interior designs, and retaining walls.
This modern method of construction helps in producing smooth, well-polished, and attractive
floors and walls with the help of other materials like overlays, micro toppings, and acid-stained
paint in factories and their installation in the site thereafter.
Precast Flat Panel System: Floors, walls, and other essential elements are produced
offsite in factory outlets and later on, the manufactured product is brought to the site. The elements
are made as per design specifications with standard material and dimensions. This modern
construction method is useful for the production of windows, floors, walls, insulation, and
decorative cladding.
Flat Slab Construction:The flat slab construction method helps to provide minimum depth,
speedy construction, economicalmanufacturing. It allows the exploration of the building's thermal
mass and increases energy efficiency by designing thermoregulated elements.
The budget estimation of the projects is very important to take care of the techniques
which are used in the work of construction. With modern methods of construction, societal values
have also been increased. The construction of the projects has also made the quality of the build-
up and performance increase to a satisfactory level which ensures that the build-up is designed
in the most satisfactory and sustainable manner. The methods with construction have made it
easy to analyze the budget and work according to the budget so that the resources can be
acquired in a limited way. The budget estimation has been easy with the development of
sustainable designs and productive project work.
1.2 Research Hypothesis, Aim and Objectives
The aim is to understand how the modern construction methods work and how it impacts
the cost planning and budget estimation in the UK.
The objectives are as follows.

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- To analyze the usefulness of modern construction methods.
- To understand the impact of MMC in cost planning.
- To recommend efficient usage of MMC for budget estimation.
1.3 Hypothesis
H0: MMC has an impact on cost estimation and efficiency.
H1: MMC Does not have an impact on cost estimation.
1.4 Research Methodology
Qualitative research methodology is exercised to conduct the research on the impact on modern
methods of constructions on cost planning and budgeting. Secondary data research has been
used for data collection and the ethnography perspective is taken for the analysis part.
2. Literature Review
In the global business environment, it has been seen that capital budgeting is becoming
more and more complex. It is very important to develop and review investments when there are
banks, third party’s and the government putting in money. This way the performance of the project
can be evaluated effectively. The effect of tax between different countries has a significant impact
on the cashflows. The parent organization of the multinational pays the remittance from the taxes
(Haug et al., 2020). Taxes are usually paid on the dividends and the royalties. But when the two
countries are into some kind of partnership one could easily get a lower amount of tax rate. Many
of the top countries have gotten into an agreement for not charging the patent rights. This way
the multinationals save a lot of costs in the legal areas. The weighted average cost is needed to
apply to the international investment evaluation. The equity holders and debtors usually seek
different rates of return. The political and social factors add some kind of risk to capital budgeting.
It must be seen that not all external factors become apparent firsthand. Cultural factors gave a
big impact on the budget and they slowly show their effects.
An increase in the Modern Method Of Construction (MMC) has been witnessed in the last
few years in the construction process to solve the problem of housing shortage and to improve
the quality of buildings. It gained popularity by the end of world war one and two. UK has been

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using MMC for many years. Prefabrication is considered to be part of MMC. Prefabrication was
used to build the first iron bridge in 1779 in the United Kingdom. At present, the uptake of MMC
is still less, but with time it is expected to increase because of growing pressure on quality, time,
cost, productivity, and health of the workers as it is considered to be sustainable and cost-
effective. Acute housing demands and market failures have been one of the reasons that have
been forcing the government and the industry to look at MMC as a solution. MMC is expected to
improve productivity, modernize the sector, and speed up delivery too. Digitization,
manufacturing, and performance are the attributes that have been the key elements for putting
faith in MMC. The wider options provided by MMC have always attracted developers. MMC also
has the capacity to supplement the existing capabilities. MMC can be classified into five
categories. These are a Volumetric system, hybrid system, modular system, panelized system,
and subassemblies and components. MMC is gaining recognition because of its ability to build a
high-quality building at a faster rate. The traditional method is marked with problems like slow
construction, lack of labor, and weather conditions which are solved by MMC.
2.1 Use Of Modern Methods Of Construction
As per the methods of construction followed before were used with the best of use to
deliver the projects, the methods traditionally used contain a long way of loopholes in them. The
modern methods of constructioncame up in dealing with getting the loopholes fixed with ensuring
the delivery of quality products. The wastage reduction helped use the resources in a more
efficient way which also helps in the saving of the cost of construction buildup. The modern
methods of constructionhave helped get the use of regional-based resources for the construction
work to ensure that the resources are thoroughly available with the completion of the resources.
The project ventures with the techniques where the constructioncan be completed quickly
with less time, all thanks to the pre-occupied structure which requires assembling (Bedair, 2014).
An example can be the platters used in the construction of a project can be preoccupied, which
ensures the quality as well as the completion of the projects in no time. The use of techniques
has helped get the projects like hospitals and other essential use constructioncomplete in no time
so that the emergencies can be filled up. Due to the use of more robust designing and ideas of
construction, the manufacturing assembly, the quality and control over the processes with the
type of procedures also ensures the high performance of the projects. The projects are more

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predictable and the levels of the defects can be both initially helped in the long run of the build-
up.
Figure 1: MMC Activity
2.2 Effectiveness of MMC
There are some more benefits of Modern Methods of Communication that have been
identified by several researchers.Theseinclude very few defects found in the constructedprojects
using this method. The build time is short as compared to other methods of construction. Life-
cycle costs are reduced to a great extent. CO2 emissions are reduced. On-site productivity is
increased. The completion dates can be predicted accurately because the construction does not
take a lot of time. The rate of housing supply has increased. The value of the products increases.
Skills shortage can easily be tackled.
Not only is new construction technology used, but the combination of materials used to
make them is also innovative. Buildings are constructed with environmentally friendly and
recyclable materials that lead to the least amount of waste. The focus is also on creating quality
at an affordable price. This has prompted people to look for structures that can minimize the cost

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of building (Aghimien et al., 2020). Choosing the right method and technology has an impact on
the management process of the construction company. The choice of the main method will also
affect the company's strategy. In general, every company is committed to minimizing costs. On
the other hand, activities and methods should be as effective as possible. For construction
companies engaged in manufacturing and construction activities, it is important to select the type
of construction that has a direct impact on management activities and turnover.
Cost planning is a natural and effective activity of every company. It improves the ability
to analyze possible risks and formulate appropriate rules and knowledge about its behavior; it is
an important tool for costmanagement. An objectively drawn costplan is an important prerequisite
for cost management and effective operation because cost reflects the company’s procurement,
production and sales activities and is an important indicator of the company’s work quality.
Managers need to know how and where costs are generated, they need to manage activities or
processes, and how their decisions affect the cost structure, so that cost information needs to be
managed at the right time.
In recent times, a lot of changes have taken place in the construction industry that has
changed it from what it used to be a few years back. One such change is modern methods of
construction. The change is unique and is bound to bring a lot more changes in the industry for
good. Modern Methods of Constructionare methods that have been developed in the construction
industry with the help of proper planning and design (Akmam Syed Zakaria et al., 2017). This is
done to ensure that the construction time and cost are reduced and at the same time,
sustainability is increased as well. There are quite a few types of modern methods of
communication that are widely being used in recent years.
Precast Flat Panel System: This is one of the types of modern methods of communication
where those procedures are included which involves making floor and wall units offsite. To ensure
that this method is a success, separate factories and facilities are required. This method is mostly
used and is best suited for projects that include repetitive construction activities.
3D Volumetric Construction: The basic idea of the process can be understood just by the
name. In this method, 3D units are manufactured offsite in the form of modules. The transportation
of the units is done in various forms.

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Flat Slab Construction: Flat slabs are one of the most used construction elements
because of their versatile nature. They help in providing minimum depth and ensure a faster rate
of construction.
Precast Concrete Foundations: Precast concrete foundations are used in places where
rapid construction of the foundation is required. Bespoke designs generally use this type of
method. In this method, the elements that are required for construction are manufactured off-site
and then are brought to the construction sites for the purpose of assembling them (Arashpour et
al., 2017) It is important for the products to have the quality assigned by the designer.
Twin Wall Technology: Twin Wall technology is a mix of precast and in-situ concrete walls
and floors. This is one of the best modern methods of construction because it guarantees
structural integrity and waterproof reliability for the newly constructed structure. Twin wall
technology is faster and economical as compared to other methods of construction.
Insulating Concrete Formwork: This method of construction employs twin-walled panels.
The panels can either be polystyrene or blocks. The constructed formwork is filled with concrete.
The quality of the concrete is high because it is produced in the factory. Better sound insulation
is provided with the help of concrete.
Precast Cladding Panels: This method of construction involves installing a material over
the other so that they can act as layers. They are mostly used for aesthetics but they serve other
important purposes as well. With the help of these layers, the infiltration of weather elements can
be controlled.
Concrete Walls and Floors: One of the most common and widely used modern methods
of construction is concrete walls and floors. Concrete walls are mainly used for retaining walls,
decorating exteriors, and providing good finishing to the interiors. Using the latest technologies,
concrete floors can be given a good finish to make the flooring attractive.
Barriers
There are a lot of barriers too when it comes to the adoption of modern methods of
construction. These are:
● They lack accurate data costs.

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● Clients might have negative perceptions about this.
● Certain materials might not be available on local premises.
● The workers might be insufficiently skilled.
● Collecting finance is often a difficult process.
● Lack of guidance is one of the main barriers.
● It is difficult to integrate modern methods of construction with traditional methods.
● Economics of scale is not achieved easily.
● Codes and standards are not published anywhere and it is one of the mainbarriers.
In recent years, the use of modern methods of construction (MMC) in residential
construction has increased significantly, albeit in an unwelcome way. Although most companies
in the construction industry still use traditional methods, there is a need for sustainability, faster
processes. The lack of skills increases the demand for modern methods that are expected to be
sustainable and profitable. Due to the application of MMC in off-site manufacturing, MMC is
usually associated with increased construction speed, minimal structural defects, and reduced
waste and energy consumption (Arbulu et al., 2003). Although the construction industry has not
yet found a universally applicable definition of MMC, researchers seem to generally agree that
the term is described as the ensemble of all construction methods aimed at achieving
sustainability, building efficiency, and structural quality. The methods currently used in the UK
and other parts of the world are very different from the traditional methods of the construction
industry. Many of these methods involve off-site manufacturing and prefabrication of materials,
but the current debate revolves around the classification of modern construction methods.
However, MMC can be divided into five categories: panel frames, volume systems, hybrid
systems, components and assemblies, and modular systems.
2.3 Importance Of Budget Estimation For Construction Sites
In every project, the major need is money. The bigger the budget, there are more people
to work on the projects with more delivery of the services. There are no projects up for plans, on
the same side budget plays an important role to estimate the choices which will be made on a

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budget. This does not matter whether the projects of construction are big or small, or the
resources which are to be used are set with the budget estimation. It is an essential part to come
up with detailed estimates for the project costs (Pape & Lerner, 2016). Oncethe budget estimates
are in hand it becomes easy for the track to work accordingly with the best resources and output.
When one is up for the construction projects, the expectations have always been made to make
backend support. Following are some of the importance of making a budget estimate, which is as
follows.
People working on the construction project work at a rate. Any material occupied for the
projects needs to be bought on money. The estimation of a pre-given budget helps in getting the
determination of resources and cost rates.
The external contractors are highly needed on the construction sites to get the project-
based work done. One can have more than one contractor to bid the job on the best process. The
tools of modern methods of construction can help get the bid decision.
With the reserve analysis and keeping aside the overhead costs in the run the use of
budget estimation with the modern construction techniques was highly maintained with getting
the costs for the run and building up the requirements.
The figuring out the cost of all your quality-related activities into the overall budget. As it
is cheaper to find bugs earlier in the project than later, there are always quality costs associated
with everything your project produces. Cost of quality is just a way of tracking the cost of those
activities (Elfaki et al., 2014). It is the amount of money it takes to do the project right.
The budget estimation can help get the resources in action. The modern techniques of
construction ensure that the resources are used in the project work for the construction. The
insights of the project place hold a lot of requirements and the budgets can play a helpful role in
getting up the needs and back up management of the site.

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Figure 2: Construction Trends
2.4 Cost Saving Potential
The recent methods of construction have been emerging as a place of great cost-saving
ventures. The days are gone when the traditional methods of construction hold the outdated work
up which leads to the wastage of both the resources and the money. The modern methods of
construction have helped serve the cost surge issues on the construction site. The recent data
suggests that for the construction of medium-sized residential schemes the modern methods of
construction can be about 20 percent more effective in cost-saving than that of the traditional
methods of construction.
The overall program can be a great place to save on the cost of the construction as well
as the construction-based timings (Haug et al., 2020). The methods of construction are highly
helpful with not only the construction cost-saving potential but also helps in the usage of the
materials up from the residential market insights. This can help get up the resources by saving
the time of transportation as well as the cost of transportation. With the housing and local
societies, the speeds of the construction and the quality of the construction with the modern
techniques in the interest as more in the homes with the affordable usage and get up of the work
of construction.
The construction methods have been in the interest of the modern world. With the virtue
of the increasing costs,the inflation cycle, and rise in the process of getting the construction done.
The methods have been effective with the time and use of the technology to make sure that the
sites and projects are delivered in the best of quality and time (Pheng & Hongbin, 2004). Other
than the residential needs of the markets serving societal needs such as Schools and Healthcare
projects, the same applies as these critical public services can be delivered in less time than with
traditional construction methods. It is
Easy to get control over the quality of the project under construction. One has more
meticulous processes and is carrying out those processes in a controlled, dry, easily accessible
enjoinment. Consequently, defects are captured at source, significantly reduced, and the fit and
finish are better.
There are someof the benefits that Modern Methods of Constructionprovide and because
of which it is widely accepted all over the world. Modern methods of construction include activities

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that save a lot of time and effort. In turn, it is cost-effective as well. Projects that use modern
methods of construction take 10 to 50% less construction time as compared to other methods.
This means that using this method will generate lots of revenues and will be able to deliver any
project within strict deadlines.
The methodologies that are used in modern construction provide a lot more efficiency and
productivity. The activities that are involved are predictable and the risks can be predicted as well.
In short, with the help of modern methods of construction, safety has been improved. The design
processes involved in it have become rigorous and elemental (Ryoo & Skibniewski, 2007). Apart
from this, the reduction in waste, fewer loads of transport, etc. has made this a very sustainable
method. The quality of the finished product can be easily controlled when the process takes place
in a controlled manner. This also helps in capturing the defects at the source and they can then
be significantly reduced to give a better finish.
Since the design process is robust, it ensures high quality and efficient use of labor and
materials. This boosts the overall productivity as well. The projects that are made using modern
methods of constructionare very sustainable as they are made using precision engineering (Aydin
& Şenoğlu, 2015). All the more they are made in a factory-controlled environment by using all the
sustainable materials. Wastes are also reduced to a great extent because of this. The high-quality
products that are used ensure efficiency and quality performance.
The modern methods of construction are carried out in factories. This is the reason why
they save a lot of time. The laborers working on it can deliver the same amount of work in less
time as compared to the other methods of construction. A lot of costs are saved since the project
is delivered in very little time. The laborers involved are very few and they deliver high-quality
work at the same time. Quality control methods are followed as well and this further reduces the
cost and makes this one of the best construction methods.

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Table 1: Estimation
2.5 Usefulness Of Modern Construction Methods (MMC) in Budget and Quality
A survey was conducted to find out how beneficial the modern methods of construction
are in today’s world. It was found out that 87% of clients and designers and 92% of contractors
accept that modern methods of construction reduce the construction time to a great extent. The
study also found out that one of the main reasons why modern methods of construction are
accepted on a global level at a fast rate is because of the fact that they minimize onsite duration.
From the industry's point of view, it is great to adopt modern methods of construction. One of the
main reasons behind this is that most of the work takes place in factories before it is shifted on
site. The chances of defects and accidents are reduced. However, the defects are not negligible.
They occur.The survey found out that at least 5%-10% of the mass-produceditems like bathroom

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pods can have defects. This happens due to repetitive construction activity. Around 75% of
suppliers who took part in the survey said that the modern methods of construction are cost-
effective and not only do they save a lot of money, but they also save a lot of effort.
Construction Speed: Researches suggest the MMCs save 10 to 50% of the construction
time by building comments and elements in factories and assembling them on-site. Furthermore,
it helps to deliver construction projects within a desirable deadline.
Higher Quality: The finished products and components are well-polished and meticulously
crafted by the designing team ensuring high-quality and robust design. It's easier for managers
to control and monitor the quality of products made in the factory.
Social Usefulness: Reports show that defects and issues with MMCs products were one-
third than the site-produced components. As the working environment is safer and sustainable, it
ensures efficient care of employees and nearby residents (Suwanjang & Prompoon, 2012). There
is less production of noise and dust as most of the elements are factory-made. Therefore, the
residents gain multiple benefits and convenience.
Labor Efficiency: The National Audit Office reports that modern methods of construction
help in reducing the on-site construction time by half. Therefore, the methods prove to be
structured, systemic, and organized.
Modern methods of construction enable smaller demands of facilities and equipment on
the construction site. They provide a safer, affordable, and reliable working environment for the
workers ensuring faster construction. One of the excellent advantages of MMC is that it provides
lower design errors and better quality in the components of construction (Shanbari & Issa, 2018).
As the materials, elements, and components are manufactured in the factories, it's easy for
contractors and subcontractors to monitor and control the quality of the items.
Modern methods of construction enable waste management as very little waste is
produced on the construction site ensuring less environmental pollution. MMC provides fewer
partial processes (specialized teams) on the construction site as they reduce labor-intensive
activities. These methods require a less skilled workforce on-site as only installation work is
accomplished on-site. Furthermore, these methods enable short distances for the workforce to
travel as factories are fixed at a particular location. It's easier to work near densely populated
regions and heavy traffic areas such as schools, hospitals, and offices using MMC.

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Modern methods of construction are easier methods of compliance to building standards
and help in tackling skill shortages (Braglia et al., 2020). These methods ensure predictability of
unforeseen circumstances that may damage, destroy, or delay the construction process in any
manner. High-thermal and acoustic performance is easily achieved by MMCs (Thornton, 2010).
These off-site manufacturing methods have helped in reducing noise, dist, and site traffic
precisely. Following are some of the listed benefits of modern methods of construction.
● Amplification of work productivity on-site
● Decreased carbon dioxide emissions
● Increased accuracy on deadlines
● Provide simplified procurement process
● Helped in increasing the value of construction components
● Enabled improvements in design and structures
● Decreased construction time and duration
● The use of templates in factories has enabled accuracy and precision in work
Categorized Benefits: According to a report submitted by Doherty, cost, time, and quality
are the fundamental aspects that an investor looks for. The advantages of modern methods of
construction can be categorized into three dimensions.
Environmental benefits: The modern construction methods allow the manufacturing of
energy-efficient houses. These methods reduce the waste produced at construction sites thereby
decreasing pollution. Furthermore, adverse and extreme weather conditions do not hamper or
delay the construction process.
Economical benefits: As the construction of houses or other buildings is properly planned,
monitored, and managed in factory outlets, there are fewer defects in the manufactured design.
These processes ensure the production of high-quality, standard, durable, and reliable houses
that are built in a short duration. Furthermore, the construction process can be sped up by
producing prefab elements in bulk in the factory outlets.

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Social Benefits: The modern construction methods produce less discomfort among the
residents as limited activities are performed on-site. MMCs provide room for various designers to
work together and plan innovative structural designs.
2.6 Problems Faced With Modern Methods Of Construction
Modern methods of construction require large-sized equipment to assemble the
manufactured products. These methods require higher costs of construction products and there's
always security risk while mounting MMC components. The initial costs of setting up a production
line in a factory outlet are high (Torp et al., 2016). Sometimes, MMCs offer time-consuming
proposals as transportation of multiple materials from factories to construction sites and vice-
versa is required.
Figure 3: Cost Estimate
Off-site manufacturing of components of constructionis the underlying principle of modern
methods of construction. According to Doherty's report, there are three major benefits of modern
methods of construction- environmental, social, and economic (Tepeli et al., 2019). These
methods help in the effective use of time, reduce the cost of expenses, and maintain
environmental sustainability. MMCs help in reducing the cost, erection time, and site storage
requirements. They provide a great way to complete the construction work within the allotted

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deadline accurately. Furthermore, the off-site manufacturing methods have helped in reducing
noise, dust, and site traffic. These methods represent sustainability, environmental protection,
and faster construction.
The main reason for the problem between the two parties was delayed payments. The
payment issues between parties caused a rift between the sub-contractors and the main
contractors. The problem of poor communication seemed to be a high-rise affair between the two
parties (Cheng & Hoang, 2014). The main and head contractors were not communicating the
proper orders and requirements to the sub-contractors. The unexpected price escalations and
poor construction work projects. The subcontractors were not having proper access to labor and
machinery. The lack of cooperation and ineffective communication can lead to adversarial
relations between the main contractors and subcontractors.
2.7 Expense Budget
The world has been modernized with the advent of newer technology that is changing
from time to time. Construction methods and management of the construction project have long
changed in ways that prove to be now more fruitful and helpful than the traditional ways of doing.
Modern methods of construction in cost planning have great effects on the construction works
and projects that have enormous advantages (CHUA et al., 2001). The impact of the modern
methods of construction in cost planning can be seen as both a merit point of view and a demerit
view. This is because every coin has two faces and every new solution has some drawbacks to
it. Since cost management is an essential factor to consider for businesses worldwide, it is
important to look at the impact of the modern-day methods of construction whether it is a cost-
effective way or reduces costs.
The construction budget is used to predict the total cost of an assigned project, whether it
is a new building, road, or bridge. The general contractor prepares a construction budget with the
help of professional cost estimates and suggestions from suppliers and subcontractors. The
contractor sets the budget used for accounting purposes that may be private investors,
customers,ordevelopers of companies or government agencies. The constructionbudget usually
determines how quickly you can complete the project, the level of skills that can be hired, and the
type of technology and equipment that can be used and administrative expenses can be
controlled too (Dhakal et al., 2020). It is very important to make detailed estimates of all project

22. ANALYSIS 22
costs. After preparing the estimate, it must be added to the budget plan. After that is done, a
comparison of the project with this budget while the work is in progress can be carried out.
There are many ways to plan a budget for a project, and experience usually determines
which method is most effective. One of the most common and effective methods of planning a
construction budget is to separate hard and soft costs. Indirect costs are all costs that are not
directly related to the physical construction of the facility. You can treat them like any pre-build
and post-build services. Indirect costs, also known as intangible costs, usually account for 30%
of the cost of a construction project.
The people involved in the project work at a certain rate. Any materials you use to create
the project will also be charged. Determining the cost of resources means determining the cost of
labor and materials (Teräväinen et al., 2018). Sometimes, you need to work with an external
contractor to complete the project. You may even have job opportunities for multiple contractors.
Various tools are designed to evaluate these suggestions and make a decision on whether to
accept them.
You will have to set apart some cash for fee overruns. If you understand that your venture
has a hazard of something high-priced happening, it is advisable to have a considerable amount
handy to cope with it. Reserve evaluation method placing someamount away in case of overruns.
Factors to be considered while planning budget
Fees for professional services - Construction projects require extensive professional
advice and other services that are considered inexpensive. Depending on the scale of your
project, you may need dozens of different professional services and permits to build.
Raw Materials – Many construction costs are not negotiable. Negotiating the cost of
permits and blueprints with cities or architects is quite difficult (García de Soto et al., 2019).
Material costis a key area where you can adjust your budget and get more value from the project.
Contractors have the ability to establish relationships with suppliers, where they can negotiate
costs and quantities, especially when they can purchase multiple materials from a single supplier.
Workers/laborer’s – An important aspect of realistic construction budgets is the prediction
of labor cost. Distributors, subcontractors, system operators, and all other experts will have costs
associated with just being on-site.

23. ANALYSIS 23
The construction period has a great influence on the budget. When choosing a general
contractor, carefully consider their ability to provide an accurate and achievable timetable for the
critical path. general situation and administrative work bring up expenses for a large part of the
total cost and depend entirely on the duration of the project. The possible increase in time also
applies to all other project participants like construction, engineering, inspection, construction
management, etc. The costs can be minimized through planning and assembly as soon as
possible (Georg & Tryggestad, 2009). Cost planning during construction is necessary because it
is very expensive to build houses, and any mistakes may cost the builders. It is important to
understand how to plan a building and ensure that it has sufficient resources.In order to maximize
the use of your funds, all factors need to be considered. It is also important to note that the cost
of the building should not exceed the builder's plan.
The impact on the modern methods of construction in cost planning undoubtedly has a
more positive impact than the negative impact. It makes the entire process of the project much
faster with speedy delivery. The traditional methods of construction might not promise this kind of
positive impact. Hence, it is a much greater plus point of the modern methods of construction
which aids cost and even helps in speedy delivery that is the current demand of the market.
Another great impact of the modern methods of construction in cost planning is its great help in
reducing labor costs (Wang et al., 2007). Because of the involvement of robots, machines, and
new technology, the labor costs have been reduced to a great height. It also reduces the
unnecessary costs that would come in the completion of the project. Some great innovations that
use modern methods in construction work are the creation of paneled units in factories,
prefabricated floors, precast constructions, etc. Modern methods of construction give quality,
productivity, efficiency, and cost. It also reduces project disruption and the predictability nature is
an advantage. The biggest advantage of the modern methods is the predesigning that helps to
get the desired project goal within the budget itself. As the use of technology, helps to achieve
greater heights in a short span of time hence, it is widely accepted.
The modern methods of construction involve a wide range of offsite and onsite
manufacturing. Yet the modern methods of the construction may be widely helpful to progress
and increase the productivity of the project but it is indeed expensive. The new technology isn’t
cheaper no matter how much it has reduced human effort (Gruneberg & Folwell, 2013). The
equipment takes loads of money to bring out the more effective and efficient process. This
becomes the negative impact of the modern methods of construction in view of the cost planning

24. ANALYSIS 24
methods. The modern methods also involve safety risks. To get a better understanding, a perfect
example would help to determine how well it is associated with safety risks. Suppose the precast
constructions and prefabricated constructions are done onto a project. But many prefabricated
constructionworks use timber. Hence, the sustainability of the used material becomes a question.
But it is more eco-friendly and it increases the fire safety risks.
Modern methods are indeed helpful if the entire project is thoroughly planned. The
construction would quadruple the buildings that are made with the same specific labor that has
been used in a single project. Modern methods also help in building out high-quality buildings with
the least defects or no defects at all. It also improves social value. Some of the latest innovative
techniques of the construction industry or civil industry are self-healing concrete, thermal bridging,
3D modeling, Kinetic roads, modular construction, etc. The modern methods of construction help
to have open, well-defined, and asymmetricaldesigns (Wijeratneand & Harris, 1993). In this highly
rushed modern world, the most critical thing is the time saving and effectiveness. Hence, keeping
aside the cost planning and the cost-effectiveness, the modern methods of construction would be
a great choice and have an overall positive impact on the construction world today.
Multinalas domestic operation has the same kind of expenses that the foreign competition
has. In this kind of situation, most of the production, distribution, and selling expenses are done
within a single country. This will not adversely affect the given foreign currency exchange rate.
External factors and the specific government policies that are focused on economic growth,
inflation, prices, and costs may have an impact on the expense budget for the company. These
in addition to the culture can sometimes weigh heavily on the cost of the company.
The expense budget needs to focus on all of the external factors (Elfaki, Alatawi, &
Abushandi, 2014). The native of local managers usually have a better understanding of how well
a company may operate. They know the different government policies and product potential in
the country. They may be able to give a more accurate expense budget that would help the
company to grow domestically. The cost factor of the products that are to be used can be planned
effectively in this type of budget planning. A foreign multinational that is serving a larger area of
people needs to see both the internal as well as external factors. Each of the local managers can
provide a budget set for their respective countries. Then the regional manager can coordinate the
expense budget. They might even modify somechanges that reflect the company’s strategic plan.

25. ANALYSIS 25
Table 2: Estimate Class
Management control is very important for MNC when they are operating across the
borders. There are various management control mechanisms that are usually found to be aligned
with the goals of the cooperation. The management controls work out in such a way that they are
able to align the employee goals with the objectives of the organization. A new evolutionary
business environment has been created with the globalization of economic systems.As new ideas
evolve so do the production techniques, organizational structure, and management. Multinational
organizations often find themselves in the middle of all the evolutionary phases.
There is the transformation of businesses and markets beyond the national boundaries.
This has given new strategies to the labor division and has also given rise to economic activities
that are now very well planned (Suwanjang & Prompoon, 2012). Many companies have been able

26. ANALYSIS 26
to deconstructthe business progressively. The value chain systems have been moved to a bunch
of locations that were previously being confined to a unitary basis. The knowledge of the
background that guides the various choices of the setup of the production and related logistics
system can surely help with the cost system. This would eventually turn to proper management
related to the accounting system as well. It plays a very pivotal role while making comparisons of
costs in a homogeneous setting.
When there are new organizational solutions it becomes very important to have cost
management and cost solutions. But as the global turmoil in finances is faced the MNCs have to
cut down their own profits. They do so by cutting the cost while operating overseas. Local experts
are sometimes hired to fulfill a given set of jobs. Multinationals have to often face cost constraints
(Haponava & Al‐ Jibouri, 2010). They have to look after a variety of costs that are able to set them
with losses. It has to also look for the competitive edge that should come with the rival firms. The
international assignment for the organizations is today more structured. They focus more on the
shortened duration of projects,and the extra costbenefits are often cut to save them somemoney.
It is often seen that the short-term assignments taken by the companies are more productive.
The approval process of these assignments is really very quick and they generally align
with the company's goals and objectives. To have the costin the sight the companies have started
developing policies and strategies that would cater to the short-term policies first. Cost
containment still is very much prevalent in many firms. This is due to the fact that the international
policies keep on changing and they need to make their assignments accordingly. The costs are
also being trimmed by hiring more experts from the country itself. The foreign expatriates may
increase the overall budget of the company. The financial costs related to administrative and local
taxes need to be looked for.
The multinationals make sure that their international policies related to the cost break up
are within the company's budget. Cutting costs have been always seen to bring out profits for the
company. There have been policy shifts for the same thing (Thornton, 2010). The finance sector
of multinationals is facing today many kinds of challenges today. It is very important to note
especially for a multinational what the product and market reach is. These products need to target
a given set of audiences that would turn them into desired profits.
Finance, financial planning, and analysis should be done in order to address the
effectiveness of the financial choices. The internal and external data needs to be collected,

27. ANALYSIS 27
organized and assessed. Financial planning should be taken into consideration whenever there
is a new investment or an existing organization’s management performance. Financial planning
needs to be done at every given thing. It doesn’t matter what kind of new thing is being done.
Cost planning is also important to challenge a decision that may affect the company’s strategic
positioning.
Globalized solutions focus more on the volume, cost, and assessing what the competitors
might be able to do. The peace climate and political stability are very important for the company
to see when making an investment. There are usually different sets of books, taxes, and other
legal requirements. These are usually resolved by having the same chart of accounts and having
the same bunch of accounting practices (Winch, 2003). The currency rate transactions are to be
applied that would take the central currency for the accounting activities. Tax optimization can still
give the company that high to avoid ethical considerations. There are many unforeseen events
that could possibly happen in any company.
Global events may affect the functioning of the company. They must be always ready to
adjust the given set of the approved budget. This will help them to see and plan their annual profit
statement. When a multinational company is operating in other areas it sees the local factors.
Natural events and disasters are all part of their budget and get adjusted accordingly (Torp et al.,
2016). Labour material, distribution, and overhead expenses usually are able to determine which
of the product needs to mix and which to be marketed. The impact of lower-priced substitutes
also needs to be taken into account when there is a choice of the market. The sales budget of a
given foreign operation is usually very sensitive to sales territory.
The intercompany sales product that is only made for a certain kind of audience and target
groups usually are determined by the pricing policies. The foreign companies that produce goods
solely for the country they are operating in are very similar to the national operation. The only
point of difference that these have is of market characteristics, government regulations, and
competition (Suwanjang & Prompoon, 2012). Multiple country marketing usually requires a good
knowledge of trade deals, import restrictions, and various regulations. Sales operations and
market operations can be very different. Each company needs to develop a specific cost planning
strategy for its own set of requirements. Multinationals need to be very aware of the product
pricing, market conditions, and government policies of the country.

28. ANALYSIS 28
3. Research Methodology
In general, qualitative research is characterized by not only flexibility and openness but
also responsiveness to the context. They are gaining a lot of popularity in recent times and they
have a lot of criteria when it comes to evaluating the rigor or quality in clinical settings. When it
comes to quantitative studies, they generally involve the collection of data regarding a
phenomenon in a systematic manner using standardized methods along with statistical analysis.
On the other hand, qualitative studies are the contrast of quantitative studies. Qualitative analysis
means the involvement of systematic collection, arrangement, description, and interpretation of
data (textual, verbal, or visual).
The approach of qualitative analysis that a researcher takes is in some way responsible
for determining the criteria that will be used to judge the quality of the report. The best thing is
that the research that has been done using qualitative methods can be evaluated using some of
the general guidelines to access the qualitative research. Even though reliability and validity are
important attributes for qualitative researchers to have, integrity and robustness are equally
important (Reeves et al., 2008). A widely accepted fact is that qualitative researchers should
always be ethical and important along with being intelligibly described with the use of appropriate
and rigorous methods. Research investigating data can easily be measured and so it is important
for them to be replicable. To answer questions that are based on personal or social meaning,
other types of data are gathered. This makes gathering data based on real-life experiences
essential. These data analyses are based on real-life experiences that are not identical from one
person to another. The integrity of the work done by qualitative researchers is defended on the
basis of trustworthiness, credibility, applicability, and consistency.
The most Common Qualitative Research Methods are
One-on-one interviews: This is one of the mostcommonmethods of conducting qualitative
research methods. It is a personal interview wherein one respondent is interviewed at a time. The
main advantage of one-on-one interviews is that precise information about what people believe
can be gathered. In casea researcheris very well experienced, they can ask all the right questions
and this will ease their task and help them in getting meaningful information.
Focus Groups: These are also some of the commonly used research methods that are
used in the process of data collection. A limited number of respondents are included in the focus

29. ANALYSIS 29
groups. They generally range from 6 to 10 people at a time and all of them belong to the target
market.
Qualitative data collection allows researchers to gather information in non-numeric ways
and they help to explore the ways in which the decisions are made. For getting accurate
information, it is important for researchers to collect holistic and rich findings so as to conduct a
careful analysis. It doesn’t matter which way a researcher chooses because whatever he will
choose, it will generate large amounts of data (Yang & Chen, 2014). There are different methods
to collect and record the data as well. For instance, if researchers collect data from focus groups
and one-to-one discussions,they will have either handwritten notes or video-recorded tapes. One
of the most common methods used to analyze qualitative data is text analysis. Text analysis is a
method of data analysis where the social lives of respondents are analyzed by researchers.
3.1 Secondary Research
Secondary data is the data that was collected for other purposes but has some relevance
to the current research needs. In other words, the data has already been collected by someone
else, and not the researcher. However, the researcher can still use it. Secondary data can also
be known as second-hand information. It isn’t used for the first time and hence it is called
secondary (Morgan-Trimmer & Wood, 2016). In general, secondary data can be found on the
internet or in places like libraries or even reports. Some of the popular and most common
examples of secondary data are web information, business reports, mass media products,
encyclopedias, and government statistics.
There are a lot of reasons why researchers should use secondary data collection methods.
Easy: Accessing secondary data resources is very easy. It is because of the internet that
the way in which secondary research data works has changed. A lot of information has become
available these days with just a mouse click. Secondary data resources are available at a lot of
places now and researchers have to put minimal effort into that.
Low cost/ Free: Almost all of the secondary data resources are either free of cost or it
takes very low costto access thosedata. It not only saves a lot of money but also effort. In primary
research, researchers have to not only design but also conduct the whole process of primary

30. ANALYSIS 30
study from the initial steps. On the other hand, when it comes to secondary data, researchers can
gather the required data without having to put any amount of money on the table.
Saves Time: Primary research methods are very time-taking as the researchers have to
collect all the data and information themselves by putting in a lot of hard work and funding. On
the other hand, secondary data resources are very easy to access, and all the required
information can be accessed within no time (Reeves et al., 2013). Researchers should resort to
this method as it saves a lot of effort, energy, and time. Sometimes, people have to go through
just a few Google searches to find their information.
Generates New Insights: New understanding and insights can be gained when going
through old information again and again. New points of view and new conclusions can be
generated too. This helps the researchers to perform their analysis in a much better way as they
get deep insights about the subject that they are researching. It also helps them to perform in-
depth research.
Longitudinal Analysis: It is allowed by the secondary data to perform longitudinal analysis.
This means that the studies that will be performed will be for longer periods of time. This helps
researchers to identify various trends. All the more, secondary data canbe found from many years
ago to a couple of hours ago. It makes it easier for researchers to compare all the data over time.
Anyone can have Access: The best thing about secondary data analysis is that it can be
performed by even those people who do not have much idea about the different data collection
methods. Anyone can have it and collect it.
Huge amount of data: Secondary data resources are available in huge amounts
everywhere. A wide variety of topics and sources are available and this makes it very easy for
people to access the data.
3.2 Data Collection
Secondary data research is researchthat involves the usage of available data or user data
and subsequent analysis of the previous research results and conclusionwhether the conclusions
made justifies the current scenario or have been changed. Just like every coin has two sides, in
the same way, implementation of the secondary data research does have some great benefits
and awful disadvantages. Some good examples of secondary data research to get the specific

31. ANALYSIS 31
idea about what the particular researchtype is are – encyclopedias, review articles, news articles,
textbooks, etc. Hence, this shows that the secondary data research is drawn via studying the
already existing research papers and verifying the results of it to check whether or not it is apt.
There are numerous real-time benefits of doing secondary data research. Firstly, the
collection of data and data access becomes easy. Hence, it also saves time for focusing on the
main statistical part. It is also a budget-friendly way of research that includes almost no or less
cost than normal research. It also helps in accessing long past research trends from the already
research topics. Hence, it becomes a great help to analyze the current trends and the current
needs that need to be changed in the results or that don’t apply to the new trends. This indeed
helps in gaining a different point of view, perceptions, or different understanding over a particular
topic. The data collection becomes the richest source and can be collected by anyone over the
web. Hence, it saves some effort for the researchers. It also helps to get a deeper understanding
of the problem and improve the current solution to it. It also enables us to reach out to the smallest
information that might have been missedpreviously. Lastly, it may lead to some unexpected great
findings that would surely be fruitful.
Firstly, it may give out unsatisfied data or inappropriate data which would not be so
matching to one’s needs. In simple terms, it may be having loads of data but using the collective
data would not help to get the exact idea of the researchtopic. For doing secondarydata research,
the researcher’s hands become cuffed as one has no control over what type of data is collected
(Sade-Beck, 2004). Putting it in simple terms, means that the researcher may not be able to alter
the quality of the collected data and hence this becomes a big limitation. Another big limitation to
it is the biased data it may have. There is a high possibility that the data put into the research
paper may be favoring a particular side which would again not meet the requirement of the
researcher. Using used collected data may become old-fashioned without enough information to
it. Hence, this may not be helpful and may not be relatable according to the current needs. The
collected data do have copyrights with it which means that the researcher isn’t the owner and
hence, it does have a competitive disadvantage. Another big disadvantage is the accuracy of the
data collected. The accuracy is unknown. It may also contain unnecessary or incomplete
information. It may be untimely or even may not answer the specific points of the research areas
that one needs to focus on.

32. ANALYSIS 32
3.3 Ethnography In Research
Ethnography in research is a method through which research is done via studying the
cultures either by observing individually or by interviewing people of the same culture.
Ethnographic research type comes under the qualitative type of research. This is so because of
its involvement in surveys or interviews with the people and accessing the real-time data rather
than depending upon the past data (Dharamsi& Charles, 2011). Ethnography has somereal-time
advantages that are very helpful in the research and development of a specific field. Ethnographic
research helps to solve very complexly designed cases where normal quantitative or qualitative
research or the researches based on the data would certainly fail to achieve the desired results.
It is way too flexible and helps a researcher to have a deeper understanding of the research
question that is given. History reflects that ethnography has been popularised by anthropological
research. Ethnographic studies of a particular research area can give a good amount of results
and more information in a short period of time. While the research, may take longer hours but it
is certainly useful. Ethnographic research would bring out the desired results the best at the
beginning of the design where even the past data are limited which is definitely not seen in the
case of other research strategies. There are numerous advantages that are certainly more than
the few disadvantages it has. Hence, ethnographic research can be the best choice for the
research experts to choose from all the research types available.
The main advantage of ethnographic research is its ability to identify unknown risks or
problems with the researchor within the topic given. To put it in a simple way, ethnography usage
in research programs helps to analyze the unexpected outcomes of the research and the topic
(Dutta, 2019). This has been the biggest reason why top researchers of the world may choose
ethnography as a research tool more than any other to a new project or budding situation which
has limited data. Risk mitigation only becomes an advantage in this type of research as the
investigation or the collection of the data is done in-situ ( which is standing and observing in
between the situation or people). It can also unleash human behavior or emotions. It has the
capability to give out reliable information about the behaviors, attitudes, and emotions of a person.
But for this analysis of behavior and attitude, the skill of the researcher also plays a great role in
it. It also involves active participation from the situation of the research which indeed helps to get
a better understanding of the research. It also helps to get a better and deeper understanding of
the mathematicalstatistics that are used in deriving and analysis of the researchresults (Goodson
& Vassar, 2011). It also helps to get to know different patterns of behavior of the people. For

33. ANALYSIS 33
example, it provides a researcher with a better understanding of what people pretend or tend to
say that something is done by them but in reality, they do things differently from what is said. It
helps to connect to the situation and humans and to get to know real-life stories which would be
further helpful in the upcoming research. Ethnography focuses on interpreting the subject, helps
to have a proper understanding of the entire concept, and also the ability to represent the
researched data in a very well-mannered process.
Ethnographic research has been the current trend of the social, political, and economic
researchtypes. It gives the research quite great insights about the anthropological research about
how it was carried and how anthropologists undertake the fieldwork. Some real-life ethnographic
research design examples might include from scratch like the Gogglebox series, social media,
scrapbooks, etc. Ethnographic research is greatly appreciated for the early stages of the user-
centered research that helps to get into the depth of the problem and the issue and also gives out
a clear clarity of the situation and unexpected outcomes that may happen. But ethnographic
researchers also require a skilled researcher. Ethnographic research also deals strictly with
ethical issues of people which makes it even more convenient to follow the basic researchnorms.
Protecting autonomy and doing no harm is the main belief of ethnographic research which also
lies in its principles. Hence, the reason for choosing ethnography over other kinds of research is
clear.
3.4 Ethical Implications
Judging the above information and analyzing it, it can be seen that the usage of secondary
data research might not seem a good option for the researchers. The secondary data has its
disadvantages like the seldom fitting of the data into one’s research work or the accuracy. But
disregarding the disadvantages, it might be helpful in researching certain topics which might be
ambiguous or in writing a review report. It may help to at least support the topic and provide
insights about the topic to be researched which might be of a little help and would definitely help
save time for the researcher. Hence, it becomes necessary to skillfully use the secondary data
research if opting for so considering how well it may benefit the researcher.
4. Data Analysis and Discussion
There were several different opinions on the economic benefits of modern construction
methods compared with traditional construction methods. Many builders believe that MMC is

34. ANALYSIS 34
cheaper than traditional methods, while others believe that MMC is expensive. Due to the high
construction cost, most people cannot distinguish the profitability of the two methods. The
confidentiality of project financial information and the construction costs that are different from
traditional methods make comparisondifficult. In addition, although MMC is stated to have a great
capacity to cause decreased preliminary costs, multiplied coins flow, and quicker income returns,
the handiest 45% of the members indicated to have skilled fee discount and more desirable
profitability. The majority appeared not sure about the fee-effectiveness of MMC in contrast to the
traditional methods. Furthermore, using MMC was now no longer taken into consideration to have
decreased the dependence on precise production of substances which includes bricks, that are
important no matter the development approach used. For this reason, 80% of the respondents
disagreed with the belief that using MMC minimizes the fee of substances. However, 60% of the
residence developers interviewed on this take a look at agreed with the statements that:
MMC decreases services utilities cost to a great extent.
MMC also decreases labor costs.
MMC also reduces maintenance costs.
4.1 Usefulness of MMC
Modern methods of construction are the methods in the construction industry that are
developed with proper planning and design to reduce construction time and cost. This maintains
the stability of the construction. The modern methods of construction are used to improve the
efficiency of a business, sustainability, improve quality, enhance the environmental performance,
customer satisfaction, and predictability of delivery timescales. The method has a broad
spectrum. Modern methods of construction revolve around the three basic principles including
digitizing, manufacturing, and performance (Hilbrich, 2012). This way is also known as smart
construction. According to reports, this method has the potential for a 30% improvement in the
speed of construction of new homes through innovation with a potential 25% reduction in costs.
Some of the innovative practices used by modern methods include creating paneled units
in factories, volumetric construction units under factory conditions, tunnel-form or thin-joint
blockwork, and pre-fabricated floor and roof cassettes. The basic advantages of using modern
methods of construction are that this type of construction delivers time savings of between 10 to

35. ANALYSIS 35
50% of the construction time. This allows the constructed site to open before the given time
allowing consequent revenue benefits or the start of sessions in universities or schools within the
time frame. As all the modern methods of construction result in improved efficacy and increased
productivity, this kind of methodology involves reduced risks and is considered more secure as
compared to other methods. As more site work is moved to the factory environment, the safety
benefits have a positive impact leading to reduced working at heights, better separation of
personnel and vehicle movements, and provide high-quality plant and equipment for repetitive
tasks.
The use of this modern methodology also has a direct impact on the sustainability and the
carbon content of any construction or use of a project. The modern methods of construction
ensure less need for site space required for car parking, welfare facilities, and storage of
materials. Hence, this methodology leads to reduced disruption in a project. The traffic movement
along the construction site is less, and the residents near the vicinity of the site are less likely to
be disturbed (Jewell & Flanagan, 2012). When the strategies of modern methods of construction
are implemented, any unforeseen circumstances are looked into beforehand. This results in a
reduction of costs leading to an increase in project certainty and completion of the project in the
given time frame within the budget.
Modern methods of construction also provide a precise standard of quality and accessible
route of compliance to building standards. Some studies suggested that 79% of clients and
designers and 77% of contractors viewed the use of modern methods of construction in providing
high-quality results. It is also seen that on-site labor can build four times as many construction
buildings through modern methods of construction as compared to the traditional home
construction methods. This methodology also has many societal advantages. Due to the
employment of all types of modern methods of construction procedures, the performance of any
constructive building becomes more predictable and there is a reduced level of defects in both
initial and long-time use. In addition to this, the modern methods of construction lead to improved
social value, and there is leveling up of agendas in any project.
Modern methods of construction, therefore, provide a safer working environment at the
off-site production of building components.There are also fewer errors in the ongoing construction
leading to better quality in the manufacturing of the components.Modern methods of construction
lead to reduced wastage on the construction site which is extremely important for controlling the

36. ANALYSIS 36
ever-increasing environmental pollution. There is also a possibility of using state budget funds,
special purpose funds, or foundations when using this type of methodology. Also, as the methods
used in this constructionmodel is of modern type, it helps in tackling the shortage of skills. Modern
methods of construction also allow the achievement of high standards including high thermal and
acoustic performance.
The government found that MMC can ensure ten percent of cost-saving. The
manufacturing process reduced construction time, reduced waste, less maintenance cost, all
these make it a cost-saving approach. It is also said that MMC’s cost is still high because of the
immaturity of the supply chain, limited manufacturers, and initial cost, but this shortage is
reducing. The cost of traditional construction is said to increase faster than MMC in the coming
years because of the shortage of skills and higher than average labor cost in the capital. Apart
from this, MMC provides more environmentally friendly construction that leads to less waste
generation and less disruption for local communities. It has been suggested that MMC produces
50 to 60 percent less waste than the traditional method that can eventually save cost. In the
survey three-quarters of respondents felt that MMC can reduce the waste generation around
building sites. This is possible because the MMC allows factory components to be ordered at the
correct specification that eventually reduces the on-site spillage, especially during wet weather.
The preciseengineering and manufacturing techniques used by MMC can ensure a more energy-
efficient building than a traditional one which can lead to cost-saving with lower bills in the long
run. The MMC has also reduced the transport cost because it requires fewer trips to the
construction site.
The use of Modern Method Of Construction has increased in the last year. A survey found
out that around 98 percent of large and medium-sized buildings and associations used MMC in
the last three years. Around two-thirds of the house have adopted sub-assemblies and
components which is one of the categories of MMC during 2015. It includes items like
prefabricated chimneys, prefabricated dormers, door sets, etc. In a survey conducted, it was
found out that the builders believed that MMC has played a bigger role in ensuring quality
construction and faster construction (Kaka & Price, 1994). Around 27 percent of housing
associates and 44 percent of housebuilders believed that MMC can lead to cost reduction, faster
cost revenues, improved cash flows, and improved profitability. 50 percent of people believe that
the demand for MMC will improve in the coming years as it has faster build, quality, and output.
In a survey, around sixty percent of the respondents accepted that the MMC minimizes labor cost,

37. ANALYSIS 37
maintenance cost,and service utility cost.Around 53% of the respondents felt that the time saved
by the MMC can lead to cost efficiency. MMC has been growing. Research by Pinsent Masons
found out that around fifteen thousand modular houses are built in the UK every year. In a survey,
around 67 percent of respondents said that a key role will be played by offsite construction in-
home supply because of its speed. People are paying attention to MMC because of its benefits.
For instance, in 2016, the UK homeminister said that there will be an increasein access tofinance
for MMC by 2020.
Though the Modern Method Of Construction is increasing with time because of the cost-
effectiveness and its speed, still there’s a long way to go. MMC has a significant potential to
address the housing shortages and efficiency. The benefits like speed, performance, quality, and
cost are expected to make the MMC a more attractive method in the coming years. There is still
not much information on the cost- time effectiveness and more empirical research is needed on
this topic. The cost reduction is ensured by energy saving, waste reduction capabilities, and
speed.
4.2 Impact of MMC in Cost Planning
Modern methods of construction are one of the new ways in which constructing a building
or a site is strategized to harbor maximum benefits. Modern methods of construction have been
utilized to simplify the lives of the people. In this method, proper planning and designing are
implemented to save time and cost. Digitizing, manufacturing and performance are the three
principles that modern methods of construction are based upon. This method has the potential
for a 30% improvement in the speed of construction of new homes through innovation with a
potential 25% reduction in costs.
As the concept of MMC has not developed at a larger rate and is still under the emerging
trend, many questions have been raised by the owners about MMC. Is MMC cheaper and cost-
efficient than the traditional method has been the most asked question to date? The modern
method of construction is cost-effective and cheaper than the traditional method. But the fact that
it can be cheaper doesn’t affect the quality of the construction. This has been the conception that
if it’s cheaper then it affects the quality of the product. But the modern method of construction has
always promised high-quality products. It has never compromised in terms of energy efficiency,
Material quality, and design approach. Modern Method Of Constructionis Cheaper than traditional
method as it is faster. Speed has always been the cost-saving aspect of modular construction

38. ANALYSIS 38
(Kozlovská et al., 2015). MMC can ensure thirty percent faster work and on-site Construction than
the traditional one. Since the manufacturing processes have been refined by the modular
manufacturers and the speed is increased, the work can be completed in half the time taken by
the traditional method of construction. It has also ensured a smaller carbon footprint and less
waste generation. The faster work doesn’t lead to a lower quality product. The research by
AECOM has indicated that MMC can ensure onsite construction in half a time of the traditional
scheme. Other sources have reported that volumetric MMC schemes take 50 to 60 percent less
time than the traditional methods. This speed makes it more attractive to those who want to
minimize the time-cost of being on-site. For those who want to ensure faster rental income, MMC
projects become attractive to them as Cost Time is also money. Climate and the weather also
doesn't affect the working and speed, saving the cost.
MMC has also ensured the use of the same architect-specified materials just like
conventionally constructed buildings like wood, concrete, and steel. Since the Modern Method of
Construction is more efficient, therefore it is cheaper (Kwon & Kang, 2018). The right schedule
followed in MMC has been the cost-saving method. All the works and requirements like trucks,
permission,design are taken care of a month before to prevent any delay or any extra costusage.
Coordination is maintained between the project development team, manufacturer, and architect
in all phases of construction to ensure the best possible product at the end at a faster speed and
in less amount. In the design process, the offsite elements of the contract are achieved for cost
certainty. This careful monitoring can ensure a greater degree of cost certainty at the very
beginning. All the factors and problems are detected a month ago and changes are made already
leading to cost efficiency.
There are many advantages to modern methods of construction. This method of
construction improves efficiency and productivity. The quality of the work is enhanced. Through
this method, there are fewer or no defects to the site that is built. This type of methodology also
has a direct impact on the environment. It affects the sustainability and the carbon content of any
construction or use of a project. The modern methods of construction result in time savings of
between 10 to 50% of the construction time.
By employing modern methods of construction in strategies and planning, there is a
reduction of costs that ultimately leads to an increase in project certainty and completion of
projects within the budget. Cost planning is essentially an effective way by which each activity

39. ANALYSIS 39
can look for any risks beforehand, analyze them, and take steps to remove the risk. By modern
methods of construction, the houses built have fewer defects and they are built quickly (Lam &
Oshodi, 2015). The houses built usually have better quality and standards and the construction
process is speeded up by mass production of prefab components in the factories. This is
considered as one of the economical advantages of this methodology and effectiveness in cost
planning. Cost analysis in modern methods of construction includes having an in-depth study of
timber frames, concrete frames, and steel frames. Modern methods of construction use timber
frames, pods, composite panels, precast padding, volumetric, and panelized steel frame. All of
this requires few trade operatives like any other traditional methods of construction.
The benefits of off-site manufacturing like speed, quality, and quantity of housing delivery
emphasize the benefits and challenges of modern methods of construction reducing the
timescales of a project, producing and ordering products and supplies in bulk to reduce cost has
led to improved productivity. The reduction in transportation of manpower and machinery, better
on-site safety, and high-quality products have resulted in effective cost planning of a project by
modern methods of construction. Some countries support the use of modular buildings in terms
of cost planning as they have a better lifecycle performance, conserve energy and their
performance puts special emphasis on the economy of scalein production (Leung & Chan, 2007).
Even though modern methods of construction lead to the former benefits, there are still some
issues of construction regarding the costs that many countries are still facing. This includes
overhead costs, high initial capital for modern methods of construction, and standards for cost
estimation.
The perception of modern methods of construction is expensive. This is due to the limited
number of manufacturers,supply chain immaturity, and the need to regain the initial research and
design costs by many housebuilders. Although, it has been predicted by the government that
modern methods of construction save 10% the cost of operation as compared to traditional
methods of construction. The strategic cost planning in modern methods of construction includes
tight coordination, consideration, and planning at the start of a project. This helps in saving time
and cost that this method provides, even though there is decreased flexibility to market changes.
Modern methods of construction mostly have a positive impact on cost planning as it
allows high-quality work at reduced time and cost. Hence, this hybrid construction can answer
client demands at lower costs. Although, this method might be expensive for some people.

40. ANALYSIS 40
4.3 Budget Planning Improvements with MMC
Since MMC products contain components and screws, MMC products are easy to
disassemble. MMC is very suitable for projects that are easy to achieve on economies of scale.
The factors that can be achieved through controlled plant conditions and better building quality
are durability, simplicity, design functionality, and high-capacity requirements. Delivery to achieve
better completion and fewer defects in all test units and all services (Li et al., 2012). The size of
the production facility and the availability of storage space are provided in the factory where
external production is performed. MMC has fewer on-site employees because most of the work
is done outside the construction site, on-site assembly time is reduced, fewer skilled workers are
required, and many modern construction methods are manual.
Compared with more buildings, the work intensity on construction sites is lower. This is
because some construction work is carried out by other workers in the factory. Construction
carried out of the site, also known as off-site construction, is faster than traditional on-site
construction. Buildings can be constructed from small and large components delivered to the
construction site and manufactured by various professionals. When it comes to Cost Planning in
MMC, many risk factors affect the construction cost, so the actual cost is often different from the
estimated cost, which may develop in a cheaper or opposite direction, and cause funding
problems, which is the main cause of construction. At the same time, it is necessary to estimate
the cost and estimate the uncertainty that the estimate may cause.
Project cost management is one of the pillars of project management. It helps to create a
financial foundation that project managers can use to compare the current state of project costs
and adjust direction as needed. Let us look at a simple and real example. When you decide to
build your own house, set a budget first. Once you know how much you need to spend on a
project, the next step is to break down the overall budget into subtask costs and smaller projects.
Without a given budget, it is not only difficult to answer these questions, but it is also impossible
to judge whether you are heading in the right direction before the project is completed. In huge
organizations, the dimensions of this hassle are in addition magnified because of the concurrent
working of more than one project, fluctuations in preliminary assumptions, and the addition of
surprising costs. That’s where price control can be helpful.
Plan the resources required in the project - Resourceplanning is the process of identifying
and finalizing the resources needed to execute the project. Resource planning is done at the

41. ANALYSIS 41
beginning of the project before the actual work begins (Li et al., 2015). By applying this method
at the task level, the project manager can create an accurate and complete list of all resources,
which can then be used as input for the next cost calculation.
Considering past data – Data available from previous projects can be utilized to make a
cost plan for an ongoing project.
Taking suggestions from team members – Taking suggestions or feedbacks from project
members cab prove helpful as it brings in various perspectives.
Analyze the impact of time duration on requirements of resources and materials. For
example, by dragging the project plan, resources may take several months to be used. This will
affect the cost estimate.
Estimating the costs
Cost estimation is the technique of quantifying the charges related to all of the assets
required to execute the assignment. Estimation is arguably the most difficult of the steps
concerned in value control as accuracy is the important thing here. Also, project managers need
to consider elements that include constant and variable charges, overheads, inflation, and the
time value of money.
● Requirements of resources and raw materials.
● The cost of every single resource and material.
● The time duration for which the resource will be required.
● A comprehensive list of all predictions regarding the project.
● Potential risks.
● The cost estimation of older similar projects.
Having a specific budget

42. ANALYSIS 42
Estimating the budget can be a sub-task in the entire cost planning procedure. Although,
it can also be carried out as a separate task. In this stage, estimated costs have to be assigned
to tasks, modules, or a period in the entire project. In simple words, costs are assigned to
segregated parts. The budget creates a basic cost plan, based on which we can continue to
measure and evaluate the cost-effectiveness of the project (Lind & Borg, 2010). If there is no
budget, the estimated total cost is still an abstract figure, which is difficult to measure midway. A
budget can estimate how much budget should be issued for future phases of the project.
Controlling Costs
Cost control is the process of measuring the deviation of the cost from the baseline and
taking appropriate measures to fill the gap. In such cases, steps such as increasing the allocated
budget or reducing the workload can be implemented. Cost control is a continuous process
throughout the entire life cycle of the project. It is based on clear and timely reports and
measurements.
Additional Suggestions for Cost Planning in Modern Methods of Construction
● Using a construction management software
● Regularly checking and updating the cost plan as per requirement
● Submitting Cost reports consistently
● Preparing and reviewing contingency plans
● Motivating the project team to not exceed the cost plan at any stage.
The factors involved in calculating the cost of a construction project, and decomposing it
into seven factors that directly affect the level and productivity of the construction project results
in the following order: project complexity, process requirements, information design, project team
requirements, contract requirements, required contracts, project duration, and market
requirements. The estimated value can be determined only when it is regarded as a typical
architectural object. A study covered the total construction cost from preliminary work to external
work and services and found that although MMC is considered an alternative construction form
with many advantages, the cost barrier to check when comparing panel performance is still the
precast concrete crossbar.

43. ANALYSIS 43
Before a construction task is carried out, there's a value estimate for the entire assignment
pre-creation and that is to make sure that it's miles correct and credible, there's additionally the
introduced help of ancient facts which act as a backup which interpret the control of charges which
ends up in a correct estimate and real budget (Maes et al., 2005). The belief of offsite creation of
reaching most value however one that calls for a large capital outlay needs to accept incredible
attention. The growth in preliminary capital outlay in a survey becomes perceived via the means
of 92% of respondents to be excessive and that becomes a purpose for the constrained use in
offsite manufacturing technology. The overruns of value because of the adjustments are
insignificant whilst as compared to the way it influences the existence cycle fee of the
development initiatives. Cost control and time control strategies are important to succeed in the
project in the production industry.
Time control software programs can govern and reveal whether or not the project goes in
the right path or not. Based upon this research price control strategies like price go with drift
forecasting and price making plans manipulation is the important one to manipulate the price.
Time control methods CPM and PERT are the effective time control methods in production and
Primavera, Microsoft Project and Microsoft Excel are the maximum common and effective
software program packages used in the construction industry where MMC is practiced.
5. Conclusion and Recommendations
5.1 Conclusion
In summary, the difficulty of construction and its value is something that poses a hassle in
extraordinary international locations. Issues like overhead costs, excessive preliminary capital for
MMC, various kinds of substances and shapes, requirements for value estimation, layout versions
were brought up. There is likewise a joint settlement at the advantages of MMC over TMC
including higher lifecycle performance, strength conservation. It was additionally located that the
value of construction in some countries is better than a few different components of the sector
because of the regulations.
5.2 Recommendations
Budget planning is the need for every business deal and construction that really saves
time and money. The type of construction that would fit the budget of the contractor is all that

44. ANALYSIS 44
matters. Budget planning is something that is very important in any business and even
construction work. Budget planning helps to anticipate the total cost of the entire project that has
been taken into account. Usually, a contractor would seek help from professional budget
estimators, subcontractors, and even suppliers. A project's entire budget can be planned by
looking onto certain areas such as income & expenses, comparison with the same projects
running in the market, analysis of the funds available on hand, predesign analysis of the project
which would help to estimate cost-effective options.
Budget planning has several different ways or methods to approach a perfect business
plan and to succeed in the project. There are four different common ways to get hands-on perfect
budget planning. The first type of budget planning is called incremental budgeting. Incremental
budgeting is a way to compare the previous years and the current year’s progress which would
help to immortalizeinefficient opportunities, ignore external drivers, and curbing under the species
budget. Activity-based budgeting is another type of budgeting method that helps to analyze the
input and output expenses. Value proposition budgeting is a good well-planned budgeting method
that helps to eradicate the unnecessary expenses from the project. The most commonly used
budgeting is zero-based budgeting. In this type of budgeting, a construction is set to start from
the scratch without any expenditure set for it. It is quite beneficial for companies going through
financial restructuring but it is certainly a time-consuming method of approach. All these budget
approaches or budget planning criteria are highly accepted by every business venture in the entire
world. Every budget planning method would have somemerits and demerits just like the two sides
of the coin. Hence, organizing a budget planning out from focusing on the benefiting and project
favoring sides becomes the most important thing.
Creating a budget that would help to ease the entire construction process is a very
important step when it comes to budget planning. There are various methods to approach the
perfect budget plan. If the construction is involved within a business plan then the best approach
would be to refine the business plan. By refining the business plan, one may look onto the wider
side of the market, the needs, and the current trends of the market. Another important part of
budget planning is the evaluation of the budget expenses. A contractor might also have to seek
reasonable prices so that the entire project would be a success. The last important thing but not
the least is to have a track of the entire work progress and the expenses involved. Since one
would have the entire list hence it would be easy to eradicate the unreasonable expenses from
the plan and would surely help to achieve the cost-effective way.

45. ANALYSIS 45
Apart from all the above budgeting strategies that would help to approach a good budget
plan, there are some other budget-level processes involved. For example, imposed budgeting
participated in budgeting, and negotiated to budget. To describe each type briefly, the imposed
budgeting is often targeting the activity and the costs. Negotiated budgeting is a shared
responsibility for budget planning. Participated budgeting is the recommendation of the targeted
activity and costs. Hence, budget planning is very important that helps to get a quick optimization
of the entire project and also saves from the unplanned risks that might come the way. Smart
budget planning is necessary to keep control over the expenses, productivity, and efficiency of
the entire project. It would also help to determine the type of technology and the skills one would
require to complete a project on time and also helps to plan out for a more budget-friendly side of
the project that would in real save a lot of money.

46. ANALYSIS 46
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