Development Strategy Optimization for Off-Site Construction Projects: Synergy of the Government and Developers

Abstract

Off-site construction (OSC) has received increasing attention worldwide, given its advantages over conventional counterparts. However, the performance of OSC’s practice has yet to be improved, despite the significant policy effort spent. This paper explores OSC project development strategy optimization from the synergetic perspective of the government and developers. A dynamic Stackelberg game is constructed and, after rigorous theoretical deductions, an example analysis is conducted to determine a proper algorithm for the model’s solution. Using Changchun City, China, as an example, the data are collected from policy documents and public web information, and through use of the Delphi method. The optimal development strategies of the local government and developers and the influences of key parameters are then obtained. The synergetic optimization model proposed by this study is conducive to achieving a “win-win” goal of maximizing both developers’ economic benefits and the total social benefits. This is a breakthrough in the previous research, contributing to effectively promoting OSC within and beyond the Chinese context.