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ABSTRACT

THE PURPOSE OF THIS THESIS IS TO ASSESS HOW THE USE OF PREFABRICATED COMPONENTS ALTERS MANAGEMENT PRACTICES IN FIT-OUT PROJECTS AND TO PROPOSE EFFECTIVE ADJUSTMENTS BASED ON REAL-WORLD EVIDENCE. FOCUSING ON THE RENOVATION OF THE VENETIAN COTAI ARENA IN MACAU, CONDUCTED BETWEEN JANUARY AND OCTOBER 2024, THIS STUDY AIMS TO HELP PROJECT MANAGERS ANTICIPATE AND OVERCOME THE UNIQUE CHALLENGES INTRODUCED BY PREFABRICATION, ESPECIALLY IN AREAS SUCH AS SUPPLY CHAIN COORDINATION, COST CONTROL, QUALITY ASSURANCE, WORKFORCE MANAGEMENT, AND COMMUNICATION. DRIVEN BY RISING LABOR COSTS AND GROWING QUALITY DEMANDS IN HONG KONG, MACAU, AND MAINLAND CHINA, PREFABRICATED CONSTRUCTION HAS EMERGED AS A PROMISING YET COMPLEX SOLUTION FOR INTERIOR FIT-OUT PROJECTS. DESPITE ITS THEORETICAL ADVANTAGES—SUCH AS TIME EFFICIENCY AND STANDARDIZED QUALITY—THIS RESEARCH FINDS THAT PRACTICAL MANAGEMENT ISSUES CAN OFFSET THESE BENEFITS IF NOT PROPERLY ADDRESSED. THE STUDY ADOPTS A QUALITATIVE CASE STUDY APPROACH, DRAWING ON STAKEHOLDER INTERVIEWS, INTERNAL MEETING RECORDS, AND DYNAMIC COST ANALYSIS TO INVESTIGATE MANAGEMENT FAILURES AND DERIVE ACTIONABLE INSIGHTS. THE FINDINGS REVEAL THAT DELAYS IN PREFABRICATED MATERIAL PRODUCTION AND DELIVERY WERE THE ROOT CAUSE OF CONSTRUCTION INEFFICIENCIES. THESE DELAYS DISRUPTED WORK SEQUENCING, LED TO LABOR IDLE TIME, AND TRIGGERED COSTLY OVERTIME DURING FINAL PHASES. INADEQUATE SUPPLIER CAPACITY AND OUTDATED PRODUCTION PROCESSES CONTRIBUTED TO THIS PROBLEM, WHILE POOR QUALITY CONTROL CAUSED DIMENSIONAL MISMATCHES AND ON-SITE REWORK. COST ANALYSIS CONFIRMED THAT REWORK EXPENSES REACHED OVER MOP 22 MILLION, WHILE MATERIAL AND LABOR COSTS ALSO SIGNIFICANTLY EXCEEDED THE ORIGINAL BUDGET. LABOR INEFFICIENCIES—DRIVEN BY UNTRAINED WORKERS AND UNCOORDINATED INSTRUCTIONS—ADDED FURTHER FINANCIAL AND SCHEDULING PRESSURES. WAREHOUSE MISMANAGEMENT AND UNCLEAR MATERIAL LABELING FURTHER DELAYED INSTALLATION WORK AND INCREASED OPERATIONAL OVERHEADS. THE STUDY CONCLUDES THAT PREFABRICATION SUCCESS IS CONTINGENT NOT ONLY ON TECHNICAL DESIGN BUT ALSO ON THE IMPLEMENTATION OF PROACTIVE MANAGEMENT STRATEGIES, INCLUDING EARLY SUPPLIER ENGAGEMENT, ACCURATE PRODUCTION PLANNING, EFFECTIVE LOGISTICS LABELING, AND STRUCTURED SITE-LEVEL AUTHORITY. THIS THESIS CONTRIBUTES PRACTICAL GUIDANCE FOR FUTURE PROJECTS BY DEMONSTRATING HOW TARGETED MANAGEMENT ADJUSTMENTS—BASED ON REAL CASE DATA—CAN REDUCE COST OVERRUNS, IMPROVE COORDINATION, AND INCREASE OVERALL PROJECT EFFICIENCY WHEN USING PREFABRICATED COMPONENTS.