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Overcoming Barriers to Industrialized Building System (IBS)
Adoption Through BIM-Enabled Cost Optimization in Malaysian
Construction Projects
Irma Hanie Ibrahim
#1
, Noor Akmal Adillah Ismail (Sr, Dr)
#
, Wan Mohd Nurdden Wan Muhammad (Sr,
Ts)
#
#1
Department of Quantity Surveying,Faculty of Built Environment, University Technology MARA (UiTM)
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000529
Received: 02 November 2025; Accepted: 08 November 2025; Published: 18 November 2025
ABSTRACT
The integration of Industrialized Building Systems (IBS) and Building Information Modelling (BIM)
represents a pivotal advancement in transforming conventional construction practices towards industrialization.
Despite the increasing promotion of IBS under Malaysia’s Construction Industry Transformation Programme
(CITP 20162020), its implementation continues to face challenges arising from fragmented project delivery
methods, limited coordination, and poor planning. Concurrently, BIM offers significant capabilities to address
these issues through digital collaboration, real-time information management, and design visualization. This
paper explores the development of an IBSBIM integrated framework aimed at enhancing productivity,
efficiency, and sustainability in the Malaysian construction industry. A comprehensive literature review was
conducted to identify the impacts of IBSBIM integration, followed by a quantitative survey using structured
questionnaires among key industry stakeholdersincluding architects, engineers, quantity surveyors, and
project managerssupplemented by qualitative validation through expert focus group discussions. The
findings reveal that the synergy between IBS and BIM mitigates major industry barriers, such as coordination
gaps, rework, and design inconsistencies, while fostering collaboration, accuracy, and cost efficiency across
project stages.
Keywords Industrialized Building System (IBS), Building Information Modelling (BIM), construction
industrialization, productivity, Malaysia
INTRODUCTION
The construction sector in Malaysia plays a vital role in national development but continues to struggle with
low productivity, inefficient project delivery, and reliance on traditional methods. IBS has become an
important tool that potentially boosts the construction industry’s productivity. The main essential characteristic
of IBS is its construction components that are prefabricated and manufactured in a controlled environment to
be assembled into structures with minimal site works. IBS emerged as a government-endorsed solution to
industrialize the sector through prefabrication and modular construction. Despite its advantages, IBS projects
often face setbacks due to poor coordination, inadequate planning, and weak integration between design and
execution. BIM, a technology for digital modeling and data management, has been increasingly promoted as a
complementary solution to overcome these issues. When implemented jointly, BIM and IBS have the potential
to enhance design precision, reduce on-site errors, optimize logistics, and improve lifecycle management. This
paper proposes a framework for integrating BIM and IBS into construction projects to maximize efficiency,
reduce waste, and ensure sustainable outcomes.
Problem Statement
Both IBS and BIM are actively championed by the Malaysian government through strategic initiatives such as
the Construction Industry Transformation Programme (CITP) 2016-2020, the National Construction Policy
(NCP) 2021-2025, and the Construction 4.0 Strategic Plan 2021-2025. These policies are designed to enhance
the overall performance and efficiency of the industry through the strategic adoption of advanced technologies.
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Despite the Malaysian government's continuous push for IBS adoption and the growing relevance of BIM, the
integration of these two systems remains fragmented and underutilized. According to Woo & Penial (2021)
18
the implementation of BIM in IBS is relatively low since IBS contractors in Malaysia has difficulties such as
technical problems, management, environmental issues, financial problems and legal issues in implementing
BIM in IBS construction project. BIM advantages are also not fully realized in IBS design processes.
Research Aim and Objectives
The aim of this research is to develop an IBS-BIM integrated framework towards enhancing construction
efficiency in Malaysia. The objectives of this research are to:
1. Identify the impacts of IBS-BIM integration towards industrializing construction in Malaysia
2. Determine the integrated IBS and BIM Approach required to manage industrialization in construction
projects
3. Recommend a framework for evaluating the influence of the IBS - BIM approach in managing
industrialization for construction projects
LITERATURE REVIEW
Overview of IBS and BIM in the Construction Industry
The construction industry is undergoing a paradigm shift from traditional labor-intensive practices to
technologically integrated and industrialized methods. The Industrialized Building System (IBS) is central to
this transformation, defined as a construction process involving prefabrication of building components in a
controlled environment, followed by on-site assembly. IBS contributes to enhanced productivity, quality
control, and sustainability, while also reducing material waste and dependence on unskilled labor (Mydin,
2014; Kamar et al., 2009). Despite these advantages, the adoption of IBS in Malaysia has been slow due to
fragmented project delivery, high initial capital requirements, and inadequate technical expertise among
industry players (Mohd Nawi et al., 2016).
Conversely, Building Information Modelling (BIM) has gained global recognition as an enabler of digital
transformation within the built environment. BIM is a process-driven approach that utilizes intelligent 3D
models embedded with parametric data, allowing collaboration and information sharing among project
participants throughout the lifecycle of a facility (Na Lu & Korman, 2010). The integration of time (4D) and
cost (5D) dimensions further supports project simulation, enabling precise visualization, coordination, and
decision-making (Shrutiniwas Sharma et al., 2017). As such, BIM provides an efficient platform for design
optimization, risk management, and real-time data synchronization.
Challenges of IBS Implementation in Malaysia
Although IBS has been promoted since the 1960s as a solution to Malaysia’s housing demand, several
persistent challenges hinder its widespread adoption. These include:
1. Financial constraints: High initial investment in manufacturing facilities, machinery, and molds makes
IBS less attractive to small and medium-sized contractors (Jabar et al., 2013; Amin et al., 2017).
2. Lack of expertise: Limited knowledge among designers and contractors on IBS design, modular
coordination, and standardization leads to operational inefficiencies (Abdullah et al., 2021).
3. Coordination issues: Ineffective collaboration between stakeholders during design and fabrication results
in design conflicts, transportation delays, and reworks (Fitri Othman et al., 2017).
4. Resistance to change: The construction workforce’s dependence on traditional methods and foreign labor
discourages the transition to industrialized approaches (Amin et al., 2017).
The cumulative impact of these factors manifests as project delays, excessive costs, and underutilization of IBS
technology, ultimately limiting the industry’s capacity to achieve CITP productivity targets.
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BIM Capabilities in Addressing Construction Inefficiencies
BIM provides a collaborative digital environment where project data is created, managed, and shared
seamlessly. In the context of IBS implementation, BIM can address fragmentation and inefficiencies through
several mechanisms:
1. Enhanced collaboration: BIM facilitates multi-disciplinary coordination among architects, engineers, and
contractors, reducing design errors and information gaps (Yan & Damian, 2008).
2. Clash detection: The system identifies conflicts between structural, mechanical, and electrical
components before physical construction begins, minimizing costly rework (Becerik-Gerber & Rice,
2010).
3. Cost and time optimization: The integration of cost and scheduling data within the BIM model improves
resource planning, reducing waste and improving financial predictability (Zhang & Gao, 2013).
4. Lifecycle management: BIM extends its utility beyond construction to include operation and
maintenance, ensuring long-term asset performance (AlabdulQader et al., 2013).
In Malaysia, public sector initiatives such as the Public Works Department (PWD) BIM Roadmap and CIDB
BIM Guidelines (2013) have catalyzed adoption. However, implementation remains in early stages,
particularly in small-scale private projects.
Synergizing IBS and BIM
The convergence of IBS and BIM represents a strategic solution to industrialize construction practices.
Integrating the two systems ensures continuity of information from design to fabrication, aligning with the
objectives of lean construction and sustainable development. BIM assists in modeling precise geometries for
prefabricated IBS components, enabling off-site manufacturing with minimal errors (Linga, 2015). Moreover,
BIM simulations optimize logistics, crane operations, and installation sequencing, improving site safety and
reducing idle time (Volkan Ezcan et al., 2013). The integration also enhances aesthetic flexibility, allowing
designers to explore alternative design options while maintaining constructability and cost efficiency.
Na Lu and Korman (2010) emphasize that BIM-based coordination of Mechanical, Electrical, and Plumbing
(MEP) systems is particularly beneficial in IBS projects, where spatial and tolerance constraints are critical.
Furthermore, BIM integration aids in managing transportation risks and modular assembly, thereby improving
project delivery reliability. Building Information Modelling (BIM) is defined as the creation and sharing of an
intelligent, computable three-dimensional (3D) data set among various professionals, supporting virtual
simulation and modification of design parameters. BIM technology clarifies the fragmentation concerns
endemic to the industry.
Crucially, BIM extends beyond spatial modeling (3D) to connect the entire design and documentation process
with the dimensions of time (4D) and cost (5D) (Shrutiniwas Sharma et al., 2017). This capability allows
stakeholders to virtually simulate the entire construction process, enabling experimentation and optimization
before any physical commitment occurs. BIM is recognized for its potential to reduce reworks and errors,
enhance collaboration and communication, and improve accuracy and overall project quality (Abdullah et al.,
2021).
Previous Frameworks and Research Gaps
Previous research has explored BIM or IBS independently, but comprehensive frameworks integrating both
technologies remain limited in Malaysia. Studies by Hamzah et al. (2016) and Mohd Nawi et al. (2014)
highlighted BIM’s capacity to reduce fragmentation yet did not establish a structured framework for
integration. Similarly, IBS research has focused on productivity and sustainability outcomes without
addressing the role of digital coordination. Consequently, this gap necessitates the development of a holistic
IBSBIM integrated framework that supports decision-making, standardization, and technological alignment in
the Malaysian construction sector.
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RESEARCH METHODOLOGY
This study adopts a mixed-method research design, combining quantitative and qualitative approaches to
achieve a comprehensive understanding of the integration between Industrialized Building Systems (IBS) and
Building Information Modelling (BIM). The design comprises four sequential stages: (1) contextual literature
review, (2) framework development, (3) framework verification, and (4) analysis and discussion. This structure
ensures that empirical findings are grounded in theory and validated by industry expertise, thereby enhancing
both academic rigor and practical applicability.
Stage 1: Contextual Literature Review
The first stage involved an extensive literature review focusing on the current state of IBS and BIM
implementation in Malaysia and internationally. Academic journals, industry reports, and official publications
from the Construction Industry Development Board (CIDB) were reviewed to identify key issues, impacts, and
integration opportunities. Literature published within the most recent ten-year period (20152025) was
prioritized to ensure contemporary relevance, except for foundational works addressing theoretical concepts.
The synthesis of these studies enabled the identification of variables and indicators forming the theoretical
basis for the IBSBIM integrated framework.
Stage 2: Framework Development
In the second stage, a quantitative survey was conducted to obtain empirical data on the perceptions and
experiences of construction professionals regarding IBSBIM integration. A structured questionnaire was
developed based on the theoretical framework derived from the literature review. The instrument included
closed-ended questions designed to measure respondents’ awareness, readiness, perceived impacts, and
perceived barriers to IBSBIM adoption.
The survey targeted key stakeholders within Malaysia’s construction industry, including architects, civil
engineers, quantity surveyors, project managers, and contractors. All participants were registered under their
respective professional bodiessuch as the Board of Architects Malaysia (LAM), Board of Quantity
Surveyors Malaysia (BQSM), and Board of Engineers Malaysia (BEM)ensuring data reliability. Systematic
random sampling was employed, focusing on respondents operating within the Klang Valley, where IBS and
BIM adoption are most active. Sample size determination followed the approach proposed by Krejcie and
Morgan (1970), ensuring a representative and statistically valid sample.
Stage 3: Framework Verification
Following the quantitative phase, the proposed IBSBIM framework underwent qualitative verification
through focus group discussions (FGD). The FGD consisted of 810 expert panel members drawn from
academia, government agencies, and private-sector firms actively engaged in BIM and IBS implementation.
Participants were selected based on professional experience exceeding ten years in construction project
management or technology integration.
Stage 4: Final Analysis and Synthesis
The final stage integrated the results of both the quantitative and qualitative analyses. This triangulated
approach allowed for the identification of converging evidence and provided a comprehensive understanding
of IBSBIM integration dynamics. Comparative analysis was conducted between empirical findings and
previous research to establish consistency, validity, and originality. The refined framework was then finalized
as a conceptual and practical tool for evaluating industrialization in construction projects.
Data Analysis And Findings
The study examines all aspects of the IBS-BIM method, including its impact on project management, cost
efficiency, time savings, and overall construction quality. By leveraging statistical analysis and stakeholder
feedback, we seek to uncover the practical implications of adopting this integrated framework in the
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construction sectorhe findings of this study highlight that the integration of Industrialized Building Systems
(IBS) and Building Information Modelling (BIM) holds transformative potential for advancing construction
industrialization in Malaysia. A total of 222 respondents had completed the survey. And most of the
respondents had working experience for more than 5 years.
This section will be divided into three sections, that cover major aspects of the research findings:
Identify the impacts of IBS-BIM integration towards industrializing construction in Malaysia
The quantitative assessment confirms that the most highly perceived benefits cluster around collaboration,
design accuracy, and cost predictability. The table below outlines the top-ranked impacts derived from
practitioner surveys:
Table 1: Ranked Impacts of IBS-BIM Integration on Construction Industrialization
Rank
IBS-BIM Impact Statement
Mean Score
Primary Benefit Category
1
BIM results in improved data sharing, increased
cooperation, and efficient delivery of design
details.
3.89
Collaboration/Communicat
ion
2
BIM can improve the entire IBS design process
by giving a visual representation of the design.
3.89
Quality/Design
3
BIM facilitates a more comprehensive
understanding of the project's parameters,
allowing for accurate cost estimations and
assessments of the construction timeline (5D).
3.86
Cost/Efficiency (5D)
4
BIM helps identify conflicts within the process,
effectively plan resources, optimize construction
site layouts, and detect discrepancies.
3.85
Clash Detection/4D
Planning
5
Building Information Modelling (BIM) aims to
reduce IBS inefficiencies.
3.69
Strategic Alignment
The strongest perceived benefit (Rank 1) is improved data sharing and enhanced cooperation. This highlights
that BIM’s greatest immediate contribution is its ability to overcome the foundational fragmentation barrier,
thereby enabling the downstream benefits like 5D cost estimation (Rank 3) and efficient clash detection (Rank
4).
Determine the integrated IBS and BIM Approach required to manage industrialization in construction
projects.
The successful management of industrialization requires addressing technological, human, and regulatory gaps,
necessitating specific, strategically prioritized integrated approaches:
Table 2: Integrated IBS-BIM Approaches Required to Manage Industrialization
Rank
Integrated Approach Strategy
Implementation Focus
1
Ensure standardized data formats between BIM and
IBS systems.
Data Governance /
Interoperable
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2
Training and Skill enhancement; offer project teams
BIM and IBS technology training.
Human Capital
Development
3
Utilizing 3D data visualization of BIM for
automatic conversion of architectural plans,
schedules, and budget estimation.
Technology Application
(5D)
4
Endorse policy and regulatory guidance that fosters
BIM and IBS integration.
Policy/Enforcement
5
Enhance construction efficiency by employing BIM
for on-site logistic planning and assembly
sequencing
Planning
The fact that Standardized Data Formats (Mean 3.9910) ranks highest emphasizes that integration is
fundamentally a data governance challenge. BIM cannot reliably deliver 5D cost optimization if data exchange
between the design model and factory fabrication systems is not seamless and interoperable. Closely following
(Rank 2) is the need for dedicated training and skill enhancement. This addresses the lack of local IBS
expertise and mitigates organizational reluctance by building internal competency.
Recommend a framework for evaluating the influence of the IBS - BIM approach in managing
industrialization for construction projects
The proposed framework integrates technological standards, process maturity, and measurable economic
performance across the project lifecycle. The structure is built upon empirically validated evaluation factors,
ensuring that adoption is not merely compliance, but a strategic pursuit of performance enhancement.
Table 3: Framework Components for Evaluating IBS-BIM Influence on Project Performance
Evaluation
Component
Rank
Focus Area
Key Metric/Action
Continuous
Improvement
1
Process
Refinement
Set up processes for ongoing IBS-BIM implementation
improvement, addressing practical skepticism.
Technology
Interoperability
2
Foundational
Success
Ensure IBS and BIM technologies are compatible and
interoperable (data formats).
Cost and Time
Efficiency
3
Economic
Viability (5D)
Calculate the cost and time savings resulting from the
IBS-BIM approach, comparing to conventional baselines.
Quality and Safety
4
Product
Integrity
Evaluate how IBS-BIM affects the safety and quality of
construction (e.g., defect rates).
Regulatory
Compliance
5
Policy
Adherence
Verify that the IBS-BIM methodology conforms with
national/international building codes.
The framework mandates that the economic benefits be rigorously quantified. The calculation of cost and time
savings resulting from the integrated IBS-BIM approach (Rank 3) is essential for stakeholders to evaluate their
overall project and financial performance against conventional construction baselines. This quantitative
validation provides the necessary justification for the high initial investment in IBS and BIM technology.
CONCLUSION
The integration of Industrialized Building Systems (IBS) and Building Information Modelling (BIM)
represents a pivotal step toward industrializing Malaysia’s construction sector. This study has demonstrated
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that the synergy between these two technologies offers a transformative pathway for overcoming long-standing
inefficiencies associated with traditional construction methods. By aligning digital design with prefabricated
production processes, IBSBIM integration enables higher productivity, improved collaboration, and enhanced
sustainability across all project stages.
The findings reaffirm that fragmented communication, inconsistent data management, and lack of coordination
are the key inhibitors of IBS implementation in Malaysia. BIM, through its comprehensive visualization, data
integration, and real-time collaboration features, effectively mitigates these challenges. Empirical results
derived from quantitative and qualitative analyses confirm that the integration of IBS and BIM improves cost
efficiency, reduces construction duration, enhances quality, and facilitates better decision-making.
Furthermore, the developed IBSBIM integrated framework provides a systematic approach for assessing and
managing industrialization performance in construction projects. It encompasses three core dimensions
technological integration, process coordination, and performance outcomeseach of which contributes to
optimizing productivity and competitiveness. The framework aligns with Malaysia’s Construction Industry
Transformation Programme (CITP), Industry 4.0 (IR4.0) vision, and Sustainable Development Goals (SDG 17)
BY supporting digitalization, innovation, and sustainable growth in the built environment.
RECOMMENDATIONS
To further enhance the practical implementation of IBSBIM integration, several key recommendations are
proposed:
Strengthening Policy and Regulatory Support
The Malaysian government, through agencies such as CIDB and PWD, should establish comprehensive
policies that mandate the adoption of BIM in all public and large-scale private projects employing IBS.
National standards for BIM interoperability, data exchange, and digital workflows should be formulated to
ensure consistency and compliance across the construction sector.
Capacity Building and Training
Continuous professional development is critical to equipping industry practitioners with the technical and
managerial competencies required for IBSBIM integration. Training modules, certification programs, and
university curricula should emphasize digital construction skills, modular coordination, and collaborative
project delivery models.
Investment in Technological Infrastructure
Stakeholders should allocate resources to upgrade hardware, software, and data management systems to
facilitate seamless integration of BIM with IBS manufacturing processes. Financial incentives or tax benefits
could be introduced to encourage small and medium-sized enterprises (SMEs) to adopt digital construction
technologies.
Encourage Collaborative Project Delivery
Integrated Project Delivery (IPD) and Design-Build (DB) approaches should be promoted to foster early
collaboration among architects, engineers, manufacturers, and contractors. Such collaborative environments
enable concurrent design, fabrication, and construction, aligning with the efficiency principles of
industrialization.
Future Research Directions
While this study provides a foundational framework for IBSBIM integration, future research should focus on
longitudinal case studies to measure the long-term impacts of implementation across different project types.
Additional exploration into Artificial Intelligence (AI), Internet of Things (IoT), and Digital Twin technologies
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could further enhance the predictive and adaptive capabilities of the framework, aligning with emerging
Industry 4.0 paradigms.
ACKNOWLEDGMENT
The authors wish to express their deepest gratitude to all individuals and organizations who contributed
directly and indirectly to the realization of this research.
First and foremost, we acknowledge the strategic vision of the Malaysian Government and the dedication of
key regulatory bodies, particularly the Construction Industry Development Board (CIDB) and the Public
Works Department (PWD), for establishing the national mandate and framework that drives the adoption of
Industrialized Building System (IBS) and Building Information Modelling (BIM) through initiatives such as
the Construction Industry Transformation Programme (CITP) 2016-2020. This research is fundamentally
rooted in these national aspirations toward enhanced productivity and digitalization.
We extend sincere appreciation to the construction industry practitionersincluding the esteemed G7
contractors, architects, engineers, quantity surveyors, and project managers in the Klang Valley regionwhose
invaluable time and expertise, shared through surveys and professional discussions, formed the empirical
foundation of the integrated framework presented herein. Their willingness to share insights into the practical
challenges and opportunities of IBS-BIM integration was instrumental to the study's conclusions.
Finally, we thank the academic and professional communities for their foundational work, which shaped the
theoretical framework, and the respective professional registration bodies for their essential role in upholding
industry standards and governance.
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