Developing a policy framework and implementation guidelines for modular construction adoption in Australia: a systematic review

Purpose – Modular construction (MC) is gaining global attention for its potential to deliver improved efficiency, safety, and sustainability in the built environment. However, despite these benefits, Australia’s adoption of MC remains comparatively low. Given the critical role of government in shaping industry direction, effective policy intervention is essential to accelerate MC uptake. This study, therefore, aims to develop a policy framework – supported by a practical implementation guide – to better position Australia to harness the full benefits of MC. Design/methodology/approach – A systematic literature review was conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses guidelines. A total of 63 relevant publications were identified and analyzed. Afterward, a thorough content analysis was done to extract recurring thematic barriers, drivers, policy positions and implementation trends. Findings – The review identified five policy barriers constraining MC adoption and six policy enablers that support its successful implementation. The findings integrate insights from both international experiences and the Australian MC policy landscape, offering a balanced understanding of global trends and local realities. Research limitations/implications – Theoretically, this research advances the development of structured policy framework and implementation guide to support MC adoption in Australia. Practically, it provides policymakers with a clear, evidence-informed pathway to strengthen MC capability, encourage innovation and enable the broader uptake of modular technologies across the Australian construction sector. Originality/value – The study proposed a forward-looking policy framework that consolidates the fragmented knowledge on MC adoption. To ensure its relevance for Australia, the framework is complemented by an implementation guide outlining actionable steps that policymakers and industry stakeholders can follow.