This study sought an innovative quality management framework for Chinese Prefabricated Buildings (PB) projects. The framework combines TQM, QSP, Reconstruction Engineering, Six Sigma (6Σ), Quality Cost Management, and Quality Diagnosis Theories. A quantitative assessment of a representative sample of Chinese PB projects and advanced statistical analysis using Structural Equation Modeling supported the framework, indicating an excellent model fit (CFI = 0.92, TLI = 0.90, RMSEA = 0.06). The study significantly advances quality management and industrialized building techniques, but it also emphasizes the necessity for ongoing research, innovation, and information exchange to address the changing problems and opportunities in this dynamic area. In addition, this study’s findings and recommendations can help construction stakeholders improve quality performance, reduce construction workload and cost, minimize defects, boost customer satisfaction, boost productivity and efficiency in PB projects, and boost the Chinese construction industry’s growth and competitiveness.