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Article
Publication date: 26 January 2022

The-Quan Nguyen, Eric C.W. Lou and Bao Ngoc Nguyen

This paper aims to provide an integrated BIM-based approach for quantity take-off for progress payments in the context of high-rise buildings in Vietnam. It tries to find answers…

Abstract

Purpose

This paper aims to provide an integrated BIM-based approach for quantity take-off for progress payments in the context of high-rise buildings in Vietnam. It tries to find answers for the following questions: (1) When to start the QTO processes to facilitate the contract progress payments? (2) What information is required to measure the quantity of works to estimate contract progress payment (3) What are the challenges to manage (i.e. create, store, update and exploit)? What are the required information for this BIM use? and (4) How to process the information to deliver BIM-based QTO to facilitate contract progress payment?

Design/methodology/approach

The paper applied a deductive approach and expert consensus through a Delphi procedure to adapt to current innovation around BIM-based QTO. Starting with a literature review, it then discusses current practices in BIM-based QTO in general and high-rise building projects in particular. Challenges were compiled from the previous studies for references for BIM-based QTO to facilitate contract progress payment for high-rise building projects in Vietnam. A framework was developed considering a standard information management process throughout the construction lifecycle, when the BIM use of this study is delivered. The framework was validated with Delphi technique.

Findings

Four major challenges for BIM-based QTO discovered: new types of information required for the BIM model, changes and updates as projects progress, low interoperability between BIM model and estimation software, potentiality of low productivity and accuracy in data entry. Required information for QTO to facilitate progress payments in high-rise building projects include Object Geometric/Appearance Information, Structural Components' Definition and Contextual Information. Trade-offs between “Speed – Level of Detail–Applicable Breadth” and “Quality – Productivity” are proposed to consider the information amount to input at a time when creating/updating BIM objects. Interoperability check needed for creating, authoring/updating processing the BIM model's objects.

Research limitations/implications

This paper is not flawless. The first limitation lies in that the theoretical framework was established only based on desk research and small number of expert judgment. Further primary data collection would be needed to determine exactly how the framework underlies widespread practices. Secondly, this study only discussed the quantity take-off specifically for contract progress payment, but not for other purposes or broader BIM uses. Further research in this field would be of great help in developing a standard protocol for automatic quantity surveying system in Vietnam.

Originality/value

A new theoretical framework for BIM-based QTO validated with Delphi technique to facilitate progress payments for high-rise building projects, considering all information management stages and the phases of information development in the project lifecycle. The framework identified four types of information required for this QTO, detailed considerations for strategies (Library Objects Development, BIM Objects Information Declaration, BIM-based QTO) for better managing the information for this BIM use. Two trade-offs of “Speed – LOD–Applicable Breadth” and “Quality – Productivity” have been proposed for facilitating the strategies and also for enhancing the total efficiency and effectiveness of the QTO process.

Details

International Journal of Building Pathology and Adaptation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 14 November 2023

Liupengfei Wu, Weisheng Lu and Chen Chen

This research aims to develop a blockchain smart contract–enabled framework to resolve power imbalance problems in construction payment.

Abstract

Purpose

This research aims to develop a blockchain smart contract–enabled framework to resolve power imbalance problems in construction payment.

Design/methodology/approach

This research adopts a design science research method to develop the blockchain smart contract–enabled framework. The authors then develop a prototype system. Finally, the authors evaluate its performance in solving power imbalance-induced payment problems.

Findings

The results show that the prototype system can resolve power imbalance problems in construction payment by allowing project participants to make transparent and decentralized decisions that are self-enforceable by blockchain smart contracts.

Research limitations/implications

This study provides theoretical explanations for how blockchain smart contracts can resolve power imbalances in construction payment; based on that, it proposes a novel blockchain smart contract–enabled method to rebalance the power of stakeholders in construction payment. Thus, it contributes to the body of knowledge on blockchain technology and construction payment.

Practical implications

This study moves beyond a conceptual framework and develops a practical blockchain smart contract system for resolving power imbalances in construction payment, strengthening construction project members' confidence in using blockchain technology.

Social implications

The proposed blockchain smart contract–enabled solution helps mitigate negative social impacts associated with late payment and non-payment. Furthermore, the research maximizes trust among participants in payment processes to inspire collaborative culture in the construction industry.

Originality/value

This paper introduces a novel blockchain smart contract integrated method, allowing project stakeholders to resolve power imbalance problems in construction payment through decentralized decision-making.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 4 October 2011

Michael C. Brand and Philip Davenport

The purpose of this paper is to outline a proposal for a Dual Scheme model of statutory adjudication for the Australian building and construction industry.

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Abstract

Purpose

The purpose of this paper is to outline a proposal for a Dual Scheme model of statutory adjudication for the Australian building and construction industry.

Design/methodology/approach

The paper deals with the security of payment problem in the Australian construction industry and the legislative response to that problem in New South Wales and elsewhere more generally. The paper highlights deficiencies in current adjudication schemes in Australia and proposes a revised methodology of adjudication by means of the proposed Dual Scheme model. The Dual Scheme is explained in detail and examples are given showing how the Dual Scheme would work in practice.

Findings

The Dual Scheme of adjudication allows for adjudication of “progress claims” (just as they are adjudicated now under the “Defined Scheme”), but also provides for separately adjudicated “money claims” in a similar way to that done under the “Non‐specific Scheme”. Both parties to a construction contract can take advantage of adjudication under a Non‐specific Scheme whilst simultaneously maintaining the relative time and cost benefits of the Defined Scheme in dealing with progress payment claims. Implementation of the proposed Dual Scheme would require new legislation.

Originality/value

The Dual Scheme is not a proposal to merely amalgamate two existing models of adjudication in Australia. Rather, it is a Dual Scheme incorporating the philosophy of two disparate systems of adjudication framed in a companionable form. It is hoped that the Dual Scheme may act as a common starting point for eventual agreement between the various interested groups as to what a national scheme of statutory adjudication in Australia will resemble in the future. The Dual Scheme proposal may be of interest in other jurisdictions where statutory adjudication for the construction industry has been introduced or is being contemplated.

Details

International Journal of Law in the Built Environment, vol. 3 no. 3
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 5 August 2022

Abdul Wahab, Jun Wang, Alireza Shojaei and Junfeng Ma

Smart contracts using blockchain technology (BCT) is a tool that decentralizes authority and makes it easier to upgrade the contract administration process by providing an…

Abstract

Purpose

Smart contracts using blockchain technology (BCT) is a tool that decentralizes authority and makes it easier to upgrade the contract administration process by providing an efficient system. Current literature provides a good overview of contracts in the construction industry; however, the specific details of BCT's smart contracts applications in the three categories have not been addressed adequately: (1) information quality, (2) enhancing project schedule and progress payment time and (3) reducing conflicts among project stakeholders. Thus, this study aims to analyze smart contracts using BCT by creating a computerized contract model, specifically evaluating its impact on the three identified categories.

Design/methodology/approach

In this paper BCT-SmContract was developed through an automated program that utilizes blockchain to define the contractual agreements between different parties in a construction project. BCT-SmContract model provides a new technique to overcome the current challenges associated with factors identified in this study, i.e. (1) information quality, (2) enhancing project schedule and progress payment time and (3) reducing conflicts among project stakeholders. Afterward, the model was tested to ensure validity and reliability through a construction project.

Findings

The findings indicated that BCT-SmContract was approximately 90% faster to execute the contract and 100% accurate in reflecting the correct information about the project status, resulting in reduced conflicts.

Originality/value

This study has contributed in upgrading the traditional contracting method in construction by developing an automated smart contract model to enhance the processes and achieve higher accuracy.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 20 April 2010

Michael Charles Brand and Thomas Uher

The purpose of this paper is to report on findings of follow‐up research into the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW), which…

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Abstract

Purpose

The purpose of this paper is to report on findings of follow‐up research into the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW), which was undertaken in 2007. The research aims to re‐assess the performance of the Act in the light of strong demand for adjudication of construction payment claims in New South Wales.

Design/methodology/approach

A cross‐sectional survey of member firms of The Master Plumbers & Mechanical Contractors Association of NSW and the National Electrical & Communications Association (NSW Chapter) was undertaken using a comprehensive multiple‐choice questionnaire administered by post. The questionnaire comprised 23 questions, whereby all but one question was of a multiple‐choice type. In answering the questions, the sampled claimants were required to draw on their understanding of the Act, and their experience with the adjudication process. Results were compared with a pilot study undertaken by the authors in 2004.

Findings

The results indicate that the object of the Act is generally being achieved. Whilst the culture of making late payments remains well entrenched in the construction industry, there appears to be a modest downward trend in the frequency of late payments since the 2004 study. It is now reasonably certain that the act of endorsing payment claims encourages communication between the parties, thus providing an opportunity for early dispute avoidance or resolution. However, the level of knowledge of the Act amongst subcontracting organisations overall has not improved since 2004 study, and may have even declined. It is clear that contractors and subcontractors are not taking full advantage of the Act.

Originality/value

The paper provides evidence of the performance of the Building and Construction Industry Security of Payment Act 1999 (NSW) between 2004 and 2007. The research compares key performance indicators for the purpose of determining whether or not the Act produces the expected result of increasing security of payment, and whether the results are consistent with the reason for the Act. It also provides important insights into the operation of similar legislation in other jurisdictions.

Details

International Journal of Law in the Built Environment, vol. 2 no. 1
Type: Research Article
ISSN: 1756-1450

Keywords

Article
Publication date: 6 April 2023

Gao Shang, Low Sui Pheng and Roderick Low Zhong Xia

The construction industry has arrived at a crossroads of rapid technological progress. While it is foreseen that the advent of new construction technologies will disrupt the…

Abstract

Purpose

The construction industry has arrived at a crossroads of rapid technological progress. While it is foreseen that the advent of new construction technologies will disrupt the construction industry’s future, such disruptions often create the ideal environment for innovation. As poor payment practices continue to plague the construction industry, the advent of smart contracts has created an opportunity to rectify the inherent flaws in the mitigation of payment problems in traditional construction contracts. Given the intrinsic resistance of construction firms to such revolutionary changes, this study aims to understand the various factors influencing the adoption of smart contracts in the Singapore construction industry.

Design/methodology/approach

A mixed method was adopted involving quantifying respondents’ perceptions of the factors influencing smart contract adoption, and validation from a group of interviewees on the matter. Out of 461 registered quantity surveyor members contacted via the Singapore institute of surveyors and valuers website, 55 respondents took part in the survey. This is followed by semi-structured interviews to validate the survey results.

Findings

The findings indicate that construction firms have neither a significant knowledge of nor willingness to adopt smart contracts. A total of 29 institutional factors were also identified that significantly influence the adoption of smart contracts. The quantitative findings were further reinforced by qualitative interviews with five industry experts.

Originality/value

With recognition of and the successful formulation of the significant institutional drivers and barriers, the key findings of this study will be integral in driving the commercial adoption of smart contracts within the construction industry.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Open Access
Article
Publication date: 16 October 2023

Emmanuel Dele Omopariola, Abimbola Olukemi Windapo, David John Edwards, Clinton Ohis Aigbavboa, Sunday Ukwe-Nya Yakubu and Onimisi Obari

Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective…

Abstract

Purpose

Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective project cash flow process. However, scant research has been undertaken to empirically establish the cash flow performance and domino effect of APS on project and organisational performance.

Design/methodology/approach

The epistemological design adopted a positivist philosophical stance augmented by deductive reasoning to explore the phenomena under investigation. Primary quantitative data were collected from 504 Construction Industry Development Board (CIDB) registered contractors (within the grade bandings 1–9) in South Africa. A five-point Likert scale was utilised, and subsequent data accrued were analysed using structural equation modelling (SEM).

Findings

Emergent findings reveal that the mandatory use of an APS does not guarantee a positive project cash flow, an improvement in organisational performance or an improvement in project performance.

Practical implications

The ensuing discussion reveals the contributory influence of APS on positive cash flow and organisational performance, although APS implementation alone will not achieve these objectives. Practically, the research accentuates the need for various measures to be concurrently adopted (including APS) towards ensuring a positive project cash flow and improved organisational and project performance.

Originality/value

There is limited empirical research on cash flow performance and the domino effect of APS on project and organisational performance in South Africa, nor indeed, the wider geographical location of Africa as a continent. This study addresses this gap in the prevailing body of knowledge.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 13
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 26 July 2021

Md. Ikramul Hoque, Md. Abu Safayet, Md. Jewel Rana, Abu Yousuf Bhuiyan and Golam Sadmani Quraishy

Construction delay is the most common issue and creates many adverse effects in any construction industry. This study has investigated the views of engineers, project managers and…

Abstract

Purpose

Construction delay is the most common issue and creates many adverse effects in any construction industry. This study has investigated the views of engineers, project managers and contractors on the causes of delay during a construction phase to identify potential delay factors, negative effects on project delivery and prioritize the delay factors.

Design/methodology/approach

An extensive literature review and interview with construction stakeholders have been conducted to identify potential causes of construction delays and design a questionnaire survey. The final questionnaire was designed with 40 potential delay factors, and a total of 102 valid Bangladeshi construction stakeholders responded to it. The result was analyzed by the relative importance index.

Findings

Among the 40 delay factors, the top five most influencing delay factors are “delay in progress payments,” “rework due to mistakes during construction,” “lack of skilled labor,” “poor monitoring and control of activities” and “delays in the making of a decision.” The top five most damaging effects of delay are “time overrun,” “cost overrun,” “disputes,” “arbitration” and “litigation,” among ten negative effects of construction delay. All construction stakeholders believe that the owner-related, consultant-related and contractor-related groups are the first, second and third most important groups of delay factors.

Originality/value

The outcome of this study would enable the Bangladeshi construction industry to develop strategies to overcome delay factors and their harmful effects. By focusing on the outcome of this research and prioritizing the critical factors, the construction industry of Bangladesh will be able to minimize construction delay significantly and propagate the progress of the construction industry by delivering quality projects timely.

Details

International Journal of Building Pathology and Adaptation, vol. 41 no. 2
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 1 May 1999

Seow Eng Ong

Property purchasers who rescind on their contracts and forfeit the initial deposits are exercising their right to not proceed with the purchase. The deposit to purchase endows on…

Abstract

Property purchasers who rescind on their contracts and forfeit the initial deposits are exercising their right to not proceed with the purchase. The deposit to purchase endows on the buyer an implicit call option that is valuable and the value exceeds the face value of the deposit. As such, real estate sellers and developers are not adequately compensated for the abortion risk, especially when there is no legal recourse for the sellers to seek specific performance and damages in the event of default. The historical value of this call is estimated by inferring a time‐varying volatility from Singapore residential price data over the last 20 years. The results show that real estate prices are more volatile in up markets than down markets, and that under‐compensation persists in both market conditions. This paper further highlights some measures to reduce the risk of aborted sales and the under‐compensation problem.

Details

Journal of Property Investment & Finance, vol. 17 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 2 August 2021

Abba Tahir Mahmud, Stephen O. Ogunlana and W.T. Hong

Empirical evidence suggests that many triggers influence poor cost performance in highway projects, whereas previous studies about the cost overrun triggers stem from a positivist…

Abstract

Purpose

Empirical evidence suggests that many triggers influence poor cost performance in highway projects, whereas previous studies about the cost overrun triggers stem from a positivist standpoint supported by conventional statistical techniques, thus disregarding the sophisticated interactions and overall dynamics of the triggers. This study contends for a paradigm shift in investigating and understanding cost overrun triggers by adopting a holistic perspective through the lens of system thinking. This study aims to contend for a paradigm shift in investigating and understanding cost overrun triggers by adopting a holistic perspective through the lens of system thinking.

Design/methodology/approach

Semi-structured interviews with industry stakeholders in Nigeria were conducted buttressed by textual data from literature sources and project documents. Data analysis based on a developed data compatible coding framework and causal relations from textual data sources was used to develop a causal loop diagram depicting the interactions of the triggers which were validated by experts.

Findings

The analysis of the causal loop diagrams (CLDs) allowed identification of action points used to suggest changes for improved cost-effective highway project delivery. Among the suggested interventions are ensuring the provision of adequate funding prior to contract award will result in timely delivery of projects and indeed delivering key projects at the contractual agreed budget. This can be achieved through ensuring strict adherence to the provisions of Section 4 (2) (b) of the Nigerian Public Procurement Act, 2007 which stipulates that no contract should be awarded if funds are not available from the onset.

Research limitations/implications

The study was limited to only highway infrastructure projects in Nigeria and as such caution must be taken before using the outcome of the study to other context within Nigeria and beyond.

Practical implications

From a practical point of view, the causal model demonstrates that this study is capable of being used to make pragmatic decisions regarding policy leverages about improving cost performance in highway projects provision in the Nigerian highway infrastructure sector of the construction industry. Moreover, it will aid a clear understanding of the key influencing triggers of cost overrun by the relevant stakeholders within the highway sector of the industry.

Originality/value

The hybrid-based approach applied in the development of CLDs in this study is expected to provide new insight into understanding the linkages, interactions, feedbacks and processes among the key cost overrun triggers and suggesting leverages for cost performance improvement within the philosophy of system thinking.

Details

Journal of Financial Management of Property and Construction , vol. 27 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

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