# Evaluation of Hidden Cost Risk of Prefabricated Construction Based on SEM-MEECM
## 1 Introduction  
Prefabricated construction is a relatively new building mode that differs from traditional building practices. It has the potential to save materials [1], reduce energy consumption [2, 3], shorten construction periods, and enhance construction environment and quality. Despite its rapid development in China, its market share remains low due to high construction costs [4]. The cost of prefabricated construction is affected by many factors, and project cost management is always a complicated process. Therefore, how to effectively control prefabricated construction costs is a prerequisite for the development of prefabricated construction. Prefabricated construction costs are classified into explicit and hidden costs. Explicit costs, which include labor, materials, equipment, and transportation, are expenses that are monetarily recorded during construction. However, there is no accurate definition of hidden costs. [PERSON] et al. (2002) believes that hidden costs can be divided into internal and external hidden costs, of which internal hidden costs refer to losses caused by low production efficiency [5]. [PERSON] et al. (2008) contend that the hidden cost of project delays is the loss of commercial possibilities and the reputation of construction firms [6]. [PERSON] et al. (2012) divided the hidden cost of core brain drain in construction enterprises into the low-efficiency cost prior to the resignation of talents, the vacancy cost,the learning curve cost of newly introduced talents, etc. [7]. They defined the hidden cost of construction projects as the opportunity cost of the enterprise's own resources and the current project management mode. Hidden costs, in the context of project management, encompass the opportunity costs associated with achieving optimal production capacity through effective management practices. These practices include integrating design and production, selecting appropriate suppliers, and utilizing new technologies. In the realm of construction project cost management, hidden costs are embedded within the total project cost. Previous research on hidden costs has identified two main categories: enterprise opportunity costs resulting from outstanding production capacity and scientific and rational project management. Given that each stage of the prefabricated building project's life cycle impacts the overall cost, this study takes into account the entire life cycle of prefabricated construction, considering both enterprise and project management perspectives. The uncertain nature of hidden cost risks arises from environmental and management changes during actual projects. As hidden cost risks often affect subsequent stages, managers tend to pay close attention to cost risks reflected in financial statements. Therefore, identifying and controlling hidden cost risks can optimize project costs [8]. Several studies have explored the costs associated with prefabricated construction. [PERSON] and [PERSON] (2010) demonstrated that worker training can reduce direct and indirect construction costs [9]. [PERSON] and [PERSON] (2016) analyzed the cost of prefabricated construction across three stages: component design, production and transportation, and installation [10]. [PERSON] et al. (2019) utilized Building Information Modeling (BIM) to optimize cost control throughout the entire life cycle of prefabricated construction [11]. [PERSON] and [PERSON] (2013) identified installation, production, and transportation costs of prefabricated components as key factors contributing to the high costs of prefabricated construction [12]. [PERSON] et al. (2021) employed the fuzzy interpretive structure model (FISM) and Bayesian network (BN) to investigate hidden costs in prefabricated construction, identifying key factors leading to hidden costs [13]. However, these studies are limited to specific stages, such as the design and construction phase. Moreover, there is a scarcity of research on hidden cost risks in prefabricated construction, and practical application remains challenging.