The integration of industrial methodologies in construction emphasizes the transformative potential of parametric design (PD) to address performance requirements. PD enables the generation and optimisation of modular solutions through algorithm-driven workflows, aligning with the principles of Design for Manufacture and Assembly (DfMA) to increase construction efficiency and in the design, process supports decision-making (Alfieri et al. in Archit Eng Des Manag 16:247–269, 2020; Antony and Arunkumar in J Phys Conf Ser 1455, 2020) [1, 3]. This study responds to the growing demand for precision and adaptability in modular systems, where manufacturing and on-site assembly play critical roles. Using algorithmic modeling and Building Information Modeling (BIM), PD optimizes modular configurations, joint connections, and material use (Alfieri et al. in Archit Eng Des Manag 16:247–269, 2020; Alwisy et al. in Int J Constr Manag 19:187–205, 2019; Banihashemi et al. in Autom Constr 88:1–12, 2018) [1, 2, 5], simplifying and standardizing assembly while addressing logistical constraints (Antony and Arunkumar in J Phys Conf Ser 1455, 2020) [3]. Key applications include optimizing layouts for structural integrity, improving coordination among stakeholders, and accelerating decision-making (Alfieri et al. in Archit Eng Des Manag 16:247–269, 2020; Banihashemi et al. in Autom Constr 88:1–12, 2018) [1, 5]. By minimizing errors and ensuring precision, this research fosters seamless integration across all construction phases. Insights from the R2U Technologies DfMA project team further reinforce this framework, emphasizing adaptability and collaboration. The findings highlight significant productivity and scalability improvements, positioning PD as a central tool for advancing modular construction while adhering to DfMA principles (Antony and Arunkumar in J Phys Conf Ser 1455, 2020) [3]. Challenges such as the need for interdisciplinary expertise, initial investment costs, and cultural resistance are also discussed, stressing the importance of training and industry-wide adoption (Choi et al. in J Manag Eng 35, 2019) [6]. Ultimately, integrating PD with modular construction redefines industry practices, supporting innovative and adaptable building processes (Baltus and Zebrauskas in Archit Urban Plan 15:96–100, 2019; Farouk et al. in J Al-Azhar Univ Eng Section 14:148–157, 2019; Graciano and Prado in Link symposium abstracts 2020, pp. 46–47, 2020) [4, 7, 10].