Abstract
Current project development financial modeling approaches have been utilized for traditional stick-built construction. This paper presents a novel system dynamics simulation model to analyze the financial dynamics of modular offsite building projects. The model captures the complex interactions between construction activities and cash flows, allowing for the evaluation of various financial parameters of developers. The developed model was applied to a real-world case study, demonstrating alignment with traditional financial models. Sensitivity analysis revealed the significance of specific parameters in influencing project profitability, such as factory deposit ratio, equity capital ratio, and interest rates. These findings provide valuable insights and strategies to enhance the financial attractiveness of modular construction projects. The paper contributes to the body of knowledge by offering a comprehensive tool for studying the financial implications of modular construction projects. This tool can assist stakeholders in making informed decisions and optimizing project outcomes, thus promoting the growth and adoption of modular construction as a sustainable and efficient building approach.