Risk Allocation and Mitigation Practices for Building Information Modeling: Addressing Legal and Contractual Risks Associated with Contract Documentation
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16, Issue 2
Abstract
In recent years, the adoption of building information modeling (BIM) has gained significant traction in the construction industry, but its rapid proliferation has also raised concerns about potential risks and challenges associated with its implementation. Although effective risk allocation and mitigation are essential for the successful implementation of BIM in construction projects, there is a notable knowledge gap in this area. Effectively allocating and managing legal and contractual risks in BIM projects can help minimize disputes or any financial and time losses. This article examines various risks associated with BIM contract documentation. Drawing on the theory of risk allocation, the research reported in this article discusses key principles and the most suitable practices for risk allocation and mitigation in the context of BIM contract documentation. According to the findings, most of the risk factors can be avoided if they can be predicted early from the initiation phase of the project, and properly allocated and mitigated in a transparent contract agreement. Based on in-depth interviews with 19 European experts mostly practicing as professional consultants, the research identifies how the BIM risks associated with the contract documentation can be allocated among different project stakeholders, such as clients, designers, contractors, and subcontractors, through contractual provisions and other risk management strategies. This study mainly focuses on projects delivered in a design bid build (DBB) method as it is one of the dominant procurement methods in Europe. By adhering to proper risk allocation and mitigation practices based on the theory of risk allocation, stakeholders in BIM-enabled projects can manage and assign legal and contractual risks in a more effective manner to the party who is more capable of handling the risks and eventually enhance project success.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
The authors are sincerely grateful to the reviewers of this paper and their feedback. Moreover, we would like to sincerely thank Prof. Dr. EM. Evelien Bruggeman for her support during the research data collection, it would not have been possible without her help. Additionally, we should express our special thanks to The University of Melbourne for funding this research project.
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Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16 • Issue 2 • May 2024
Copyright
© 2024 American Society of Civil Engineers.
History
Received: Apr 17, 2023
Accepted: Dec 8, 2023
Published online: Feb 28, 2024
Published in print: May 1, 2024
Discussion open until: Jul 28, 2024
ASCE Technical Topics:
- Architectural engineering
- Building information modeling
- Building management
- Business management
- Construction engineering
- Construction management
- Contract documentation
- Contracts and subcontracts
- Disaster risk management
- Legal affairs
- Mitigation and remediation
- Practice and Profession
- Project management
- Risk management
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