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.

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