Transaction Costs Economics in BIM Adoption Procurement

Guest Speaker:
Dr Fara Diva Mustapa (Universiti Teknologi Malaysia)
Host:
Ms Noor Azeyah (School of Built Environment, University of Reading Malaysia)
Subject Area:
Built Environment
Activity:
Seminar
Date & Time:
Wed, 21. March 2018, 12:00 h - 13:00 h
Venue:
N3.24, University of Reading Malaysia - EduCity@Iskandar​

Abstract

Construction industry which plays a crucial function in economy is famous for its unique characteristics such as fragmentation, time lag and many more. Consequently, the industry suffers problems relating to the unique characteristics such as disputes within the construction parties. It was found that construction disputes incur high transaction costs which later affects related parties and increase the overall project costs. This is due to the fact that transaction costs are the costs that incurred from transaction activities within the construction industry. Transaction cost economics or analysis is useful to be studied as it allow parties to have better understanding on the benefits incurred in making economic exchange. For instance, at tendering stage, identification and evaluation of potential contractors for the project is considered a transaction activity which involves the cost of search and information costs conducted by Quantity Surveyor, who plays important role in cost management throughout the project. The emerging Building Information Modelling (BIM) technology is said to be beneficial in addressing problems such as solving disputes and reducing overall project costs. Hence, BIM procurement is seen to address the aforementioned issues. Transaction costs within other procurement types such as traditional, design and build and Public Private Partnership (PPP) has been previously studied. Hence, this research seeks to identify the transaction costs incurred within the procurement with BIM adoption. This is a preliminary study employing structured literature review to determine the components and activities within the transaction costs and outlining the BIM procurement to study the activities involved within the BIM implementation. The initial framework for transaction cost components in BIM procurement was set up based on RIBA Plan of Work with BIM overlay. The components are categorised into pre-contract and post-contract components and further breakdown into stages. It will be the basis to develop a framework to provide a guideline among construction industry players on the related transaction costs within the BIM procurement.

Biography

Fara was graduated both Diploma and Degree from UTM in 2000 & 2002. She pursued Master in Construction Economics and Management at Bartlett, School of Architecture, UCL in 2004 and completed her PhD in Construction Economics: Managing Construction Labour from the Economics’ perspective from Loughborough University in 2014. Before accepting the offer from UTM as a lecturer, Fara had managed a Design & Build project in Malaysia.

  • Admission is free.​
  • UoRM staff RSVP by responding to the internal event invitation.
  • All are welcome, RSVP by 19 March 2018.

 

Student Enquiries

Toll free:
+1800 18 6867

Tel:
+60 (7) 268 6205

WhatsApp/Mobile:
+60 (16) 7725 400
(click the WhatsApp number to contact us immediately)

Email:
my.enquiry@reading.edu.my

General Enquiries

University of Reading Malaysia
Persiaran Graduan Kota Ilmu, Educity 79200 Iskandar Puteri Johor, Malaysia.

Toll free:
+1800 18 6867

Tel:
+ 60 (7) 268-6200

Fax:
+60 (7) 268-6202

Email:
uor-malaysia@reading.edu.my

Social Media