Investigating the Source of Claims with the Importance of BIM Application on Reducing Construction Disputable Claims in KSA

Abstract

The construction industry in the Kingdom of Saudi Arabia (KSA) is a significant sector in the Middle East, with annual expenditures surpassing USD 120 billion. It employs approximately 15% of the workforce and consumes more than 14% of the country’s energy resources. However, the Saudi construction sector encounters numerous challenges, including a deficiency in skilled labor, escalating costs, disputes, and material shortages. This study aims to investigate the origins of construction disputes in KSA and emphasize the significance of employing Building Information Modeling (BIM) applications to diminish the factors causing claims in both commercial and residential construction projects. The methodology employed comprises a comprehensive literature review and a field survey consisting of interview sessions. This study analyzes a total of 50 contributing factors to the causes of claims, along with conducting a field survey interview session involving 35 participants. The findings reveal seven substantial sources that give rise to construction claims in the KSA, impacting 75 projects, as discussed in this study. Furthermore, the research critically evaluates the advantages of utilizing BIM technology to mitigate construction disputes in the KSA. The data analysis results indicate that the reliance on traditional project management approaches is one of the catalysts for the emergence of disputes in the construction industry, particularly in the KSA.

An Investigation of BIM Advantages in Analysing Claims Procedures Related to the Extension of Time and Money in the KSA Construction Industry

“…Associated risks might be extended to the lifecycle of the project after the construction stage and during the operation phase, when there is a lack of implementation of a building management system based on BIM. Research in the Iranian construction industry focused on the importance of examining risks and their interconnections for the effective implementation of Energy Performance Contracting (EPC) projects in developing countries with significant energy usage [53]. The use of hybrid method techniques has generated a valuable network relation map, providing insights into the interconnections among various risk dimensions and determinants.…”

“…The use of hybrid method techniques has generated a valuable network relation map, providing insights into the interconnections among various risk dimensions and determinants. The project lifecycle risks are closely linked to other risks, either causally or consequentially [53]. This highlights the need for efficient risk management solutions, specifically for hazards and risks throughout the project lifecycle.…”

“…By comparing the original plans to the actual events that took place during construction, this method offers a more accurate understanding of the impact of the delay. Its conclusions are derived from facts rather than theories, providing a clearer and more precise assessment [53]. The difference between the prospective and retrospective methods can be significant, especially if they determine whether liquidated damages for delay need to be paid.…”

“…This would have pushed the planned completion to the end of week 21, resulting in a different outcome to that of the as-built programme or retrospective analysis. Therefore, prospective and retrospective analyses do not always yield the same result in every situation, unless the forecast delays match the actual delays [53,56].…”

“…In order to select the claims management process for this study, it was necessary to identify the source of claims and the most frequently occurring claims in construction projects. Thus, seven significant sources of claims and 50 claims factors that appeared most frequently were investigated in the recent literature, as conducted by the authors of this study [53]. Within those recent studies, a compilation of the most reported sources of claims, originating from both contractors and the owners involved in construction projects, was derived.…”