The Adoption of Building Information Modelling and Intelligent Contract to Payment Process in Malaysian Conventional Contract

Abstract

Payment conflicts are never ending issue in Malaysian construction industry. This issue is a common scenario especially in public work project, which involves a conventional contract. The late payment and non-payment occur due to client inefficient payment administration caused by documentation and human factors. It commonly ended up causing delays in project completion. However, the revolution of Information Technology (IT) within construction industry has shown the development of various management systems, which transformed the way projects are administered. The introduction of Building Information Modelling (BIM) is one of the project management systems, which have been created to centralised knowledge sharing resource as an effective collaborative and integrated approach between inter-disciplines in construction industry. The development of digital technology of Intelligent Contracts brings great potential in BIM management to automate the contractual process and thus create possible solutions towards payment conflicts in the construction project. This paper discusses the process of payment in the conventional contractual procedure, which relate to the causes of delay in payment. It is believed that by integrating BIM and Intelligent Contract’s attributes may help to eliminate the unnecessary procedure, which prolong the payment processes. Therefore, this study is carried out to explore what are the effects of adopting BIM and Intelligent Contracts attributes in conventional payment process. This is a descriptive study and the methodology used is essentially on review of the literature in relation to payment processes in conventional contract, BIM management system and attributes of Intelligent Contract. The analysis revealed that the adoption of BIM and Intelligent Contracts attributes in payment conventional process could improve the efficiency; reduce the time by eliminating third party interference and manual signatory. In addition, the project performance is analysed intelligently as well as minimise the risks of losing information by keeping historical audit trails in automatic system repository.

Construction payment automation using blockchain-enabled smart contracts and robotic reality capture technologies

“…The automation of contract administration and relevant project management workflows have been identified among the first viable application areas for smart contracts and blockchain technology in AEC (Li et al 2019;Mason 2017;Ye et al 2018). This focus area has received increasing attention in the past few years and due to the technology's elimination of third-party intermediaries and the manual work involved in payment processing (Perera et al 2020;Salleh et al 2020).…”

Barriers to the Adoption of Building Information Modeling in Quantity Surveying Practice in South Africa

“…In order to establish an accurate estimate for construction work that would be utilised in the tendering processes that are necessary before any construction work can commence on a building site, the quantities of materials and labour needed to perform a task were measured. However, more responsibilities have been added to the roles of quantity surveyors as a result of the profession's evolution, including estimation for each of the six construction stages, advice and a plan for the client to ensure the best service and value of the product that the client is paying for, as well as recommendations on which contractor to choose, evaluation of the tender documents, Bill of Quantities pricing, valuations of the work completed and the work still in progress (Salleh et al,2020 ). Despite these added responsibilities, quantity surveyors are still making use of the traditional procedures of quantifying and pricing even to this day, which are very time consuming and can give inaccurate figures most of the time (Olsen & Taylor, 2017).…”