Jundong Jin

Gaorong Qiqing Construction Group Co., Ltd.

Abstract：

Prefabricated (modular) construction has expanded rapidly due to its advantages in shortening construction periods, improving quality, and digital integration. However, the lack of clear guidelines for industry-specific risks in contract settlements leads to vague application of the "principle of change of circumstances" and frequent contractual disputes. This study focuses on this principle in prefabricated building contract settlements. It first combs its theoretical foundation and research gaps from legal, economic, and technological dimensions via literature review, noting the absence of an integrated analytical framework and weak empirical research. Second, it constructs a conceptual framework, clarifying the principle’s legal origin (clausula rebus sic stantibus), contractual scenario adaptability, and crossjurisdictional application differences. It further analyzes practical settlement challenges across legal, economic, technical, and contract management levels. Finally, it proposes theoretical, practical, and policy contributions. The study aims to standardize settlement processes, reduce disputes, enhance risk resilience, and promote healthy transformation of the modular construction industry.

Key Words：

principle of change of circumstances; prefabricated construction; contract settlement