PurposeRisk factors related delay hinder the schedule performance of most construction projects in the world. It is a critical challenge to realize the advantages of prefabricated construction projects (PCPs) under the negative effect of schedule delay. This paper aims to propose an exhaustive list of risk factors impeding the progress of PCPs and evaluate the collected risk factors based on the cause–effect relations. The ultimate goal is to improve the understanding of the complex relations among various risk factors related delay in PCPs, and also offer managers a reference on aspect of schedule risk management.Design/methodology/approachThis paper proposes a hybrid method of GT–DEMATEL–ISM, that is combing grounded theory, DEMATEL (decision-making trial and evaluation laboratory) and ISM (Interpretative Structural Modeling), to collect, evaluate and structure risk factors related delay for PCPs. The research procedure of this methodology is divided into three stages systematically involving qualitative and quantitative analysis. In the first stage, GT is utilized to implement qualitative analysis to collect the risk factors leading to schedule delay in PCPs. While, the quantitative analysis is to analyze and evaluate the collected risk factors based on the cause–effect relations in the next two stages evaluation by the DEMATEL focuses on quantifying the priority and intensity of the relations between factors. Additionally, ISM is employed to construct the hierarchical structure and graphically represent the pairwise relations between factors.FindingsThe outcome of qualitative investigation by grounded theory proposes a theoretical framework of risk factors related delay for PCPs. The framework contains three levels of category, namely, core category, main category and initial category and provides a list of risk factors related delay. Following this finding, evaluation results by the DEMATEL classify factors into cause and effect groups and determine 11 critical delay risk factors. Meanwhile, the findings show that risks referring to organizational management issue foremost impact the progress of PCPs. Furthermore, a systemic multilevel hierarchical structure model is visually constructed by ISM to present the pairwise linkages of critical factors. The model provides the risk transmission chains to map the spread path of delay impact in the system.Originality/valueThe contribution of the study involves twofold issues. Methodologically, this research proposes a hybrid method GT–DEMATEL–ISM used to identify and analyze factors for a complex system. It is also applicable to other fields facing similar problems that require collecting, evaluating and structuring certain elements as a whole in a comprehensive perspective. The theoretical contribution is to fill the relevant research gap of the existing body of knowledge. To the best knowledge of the authors, this paper is the first attempt to integrate qualitative and quantitative research for risk analysis related delay and take the insight into the whole process of PCPs covering off-site manufacture and on-site construction. Furthermore, the analysis of findings provided both a micro view focusing on individual risk factor and a managerial view from a systematic level. The findings also contribute the effective information to improve the risk management related schedule delay in PCPs.