PurposeThe construction industry's transformation of prefabrication into large-scale offsite manufacturing continues to grow. While the Offsite Construction (OSC) transition has brought positive changes to the industry, it also presents various challenges. Literature suggests that to address the challenges, advanced technologies such as Building Information Modeling (BIM) can be applied for effective mitigation. Nonetheless, the combined application of BIM and OSC is in its infancy and faces challenges in many countries. This study aims to investigate the factors influencing OSC and BIM integration, including challenges and strategies within the New Zealand construction industry.Design/methodology/approachThis study explores which specific factors impact integration positively or negatively through a comprehensive literature review and confirmatory survey. Factor Analysis (FA) was used as the data analysis method, resulting in eight groups of underlying factors. Next, three Structural Equation Models (SEM) were developed and tested to analyze the impact of latent and observed variables on OSC and BIM integration.FindingsSignificant underlying factors affecting OSC and BIM integration were identified, and recommendations to enhance integration were provided. Specifically, the findings demonstrated that three underlying factors for challenges, two for strategies and three for integration were identified through EFA and confirmed by CFA. This step was followed by SEM, which employed three different path analysis models for integration variables. It clarified that not all variables have similar impacts on integration; some exhibit significant positive or negative effects, while others are not significant at all.Originality/valueThe identified challenges and strategies for OSC and BIM integration and their impact on integration factors can contribute to developing standardized integration guidelines and frameworks to assist stakeholders in focusing on their specific integration goals.