Using innovative prefabrications as the source of competitive advantage for contractors—case studies in Hong Kong

The tender prices in Hong Kong have been dropping significantly without any sign of construction costs reduction. To combat the erosion of profits, the contractors have to seek cost reduction through alternative design and enhancement of site productivity. This paper, through the three case studies, shows the local contractors endeavour to utilize prefabrication via the proposed alternative design, to win tenders and to complete the jobs in time with good qualities. This paper also shows that when prefabrication is innovative as a source of competitive advantage and is a must during the process of industrialization, many local building contractors of low technology and of low capital investment, will encounter many problems of competition in the increasingly globalized construction market.