Transaction cost analysis in building information modelling adoption procurement: an initial study

Abstract

Many construction disputes in the construction industry have been raised stemming from the adoption of fragmented traditional procurement. This scenario has led to higher transaction costs in managing the project, which eventually affects the overall cost and performance of the project. With the aim of minimising the disputes which cause high transaction costs, building information modelling (BIM) was introduced due to the ability of BIM to detect clashes at the early stage of the project. Meanwhile, it is beneficial to study the transaction costs economics (TCE) in BIM adoption procurement to study the extent of effectiveness of BIM in minimising the transaction costs. This research aims to investigate the TCs components in BIM adoption procurement. This research employs a qualitative approach through a semi-structured interview with a group of BIM experts. The data gathered can provide good insights on the TCs components, types of TCs, and requirements for the employment of BIM adoption procurement.