Stakeholder Perceptions of Transaction Costs in Prefabricated Housing Projects in China

Prefabrication has the potential to improve the efficiency and sustainability of housing production. However, there are various challenges in the realization of prefabricated housing (PH) from the stakeholder's perspective. Transaction costs (TCs) theory provides a particular angle that explains the invisible costs within transactions. This study aims to explore how perceptions of TCs vary for stakeholder groups and show the potential to reduce TCs in China. The distribution of TCs related to stages and stakeholders was investigated by a literature study and validated by expert interviews. Further, an existing framework of TCs was adopted to conduct a questionnaire survey for collecting perceptions of TCs from six stakeholder groups. The findings show that assembly, detailed design, and design change are the most highlighted TCs of PH. In particular, the component suppliers complained of TCs from the points of detailed design and hiring skilled labor. The local government emphasized TCs on monitoring and enforcement in assembly, architectural design, and component transportation. This research contributes to the construction management community by acknowledging stakeholders in understanding their TCs, which also inspires the policy makers to reduce significant TCs to smooth transactions for the future of China's PH market.