Effects of Contractual and Relational Governances on BIM Collaboration and Implementation for Project Performance Improvement
Publication: Journal of Construction Engineering and Management
Volume 148, Issue 6
Abstract
Both contractual and relational governances affect building information modeling (BIM) collaboration and implementation (BCI) to improve project performance. However, the mechanism by which these governances and their interaction influence BCI remains undetermined. Considering transaction cost economics and social exchange theories, this study aimed to investigate the extent of the effect of contractual and relational governances and their interactions on improving BCI. We developed a series of hypotheses and a questionnaire to achieve the aims of the study. The partial least-squares structural equation modeling was applied to analyze the cause–effect relationship arising from the hypotheses. The results show contractual and relational governances affect BCI positively. Contractual governance, which consists of monitoring elements in safeguarding provisions, positively affect BCI and project performance. However, there is no effect found for safeguarding provisions that define the rights of parties in the contract. The study also reveals that contractual governance does not influence relational governance in BCI. This research provides new insights to project managers on the use of effective governance mechanisms to deliver BIM-enabled megaprojects for improving project performance.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, and code generated or used during the study appear in the published paper.
References
Abdirad, H. 2017. “Metric-based BIM implementation assessment: A review of research and practice.” Archit. Eng. Des. Manage. 13 (1): 52–78. https://doi.org/10.1080/17452007.2016.1183474.
Ahn, S., S. Shokri, S. Lee, C. Haas, and R. Haas. 2017. “Exploratory study on the effectiveness of interface-management practices in dealing with project complexity in large-scale engineering and construction projects.” J. Manage. Eng. 33 (2): 04016039. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000488.
Alreshidi, E., M. Mourshed, and Y. Rezgui. 2014. “Exploring the need for a BIM governance model: UK construction practitioners’ perceptions.” Comput. Civ. Build. Eng. 2014 (Jan): 151–158. https://doi.org/10.1061/9780784413616.020.
Alreshidi, E., M. Mourshed, and Y. Rezgui. 2017. “Factors for effective BIM governance.” J. Build. Eng. 10 (Mar): 89–101. https://doi.org/10.1016/j.jobe.2017.02.006.
Alreshidi, E., M. Mourshed, and Y. Rezgui. 2018. “Requirements for cloud-based BIM governance solutions to facilitate team collaboration in construction projects.” Requirements Eng. 23 (1): 1–31. https://doi.org/10.1007/s00766-016-0254-6.
Anderson, S. W., and H. C. Dekker. 2005. “Management control for market transactions: The relation between transaction characteristics, incomplete contract design and subsequent performance.” Manage. Sci. 51 (12): 1734–1752. https://doi.org/10.1287/mnsc.1050.0456.
Ansell, C., and A. Gash. 2008. “Collaborative governance in theory and practice.” J. Public Adm. Res. Theory 18 (4): 543–571. https://doi.org/10.1093/jopart/mum032.
Argyres, N. S., J. Bercovitz, and K. J. Mayer. 2007. “Complementarity and evolution of contractual provisions: An empirical study of IT services contracts.” Organ. Sci. 18 (1): 3–19. https://doi.org/10.1287/orsc.1060.0220.
Beccerra, M., and A. K. Gupta. 1999. “Trust within the organization: Integrating the trust literature with agency theory and transaction costs economics.” Pub. Admin. Q. 23 (2): 177–203.
Benaroch, M., Y. Lichtenstein, and L. Fink. 2016. “Contract design choices and the balance of ex-ante and ex-post transaction costs in software development outsourcing.” MIS Q. 40 (1): 57. https://doi.org/10.25300/MISQ/2016/40.1.03.
Benítez-Ávila, C., A. Hartmann, G. Dewulf, and J. Henseler. 2018. “Interplay of relational and contractual governance in public-private partnerships: The mediating role of relational norms, trust and partners’ contribution.” Int. J. Project Manage. 36 (3): 429–443. https://doi.org/10.1016/j.ijproman.2017.12.005.
Bernstein, H. M., and S. Jones. 2012. The business value of BIM in North America: Multi-year trend analysis and user ratings (2007-2012). Bedford, MA: McGraw-Hill.
BIM Industry Working Group. 2012. “A report for the government construction client group building information modelling (BIM) working party strategy paper.” Accessed January 2, 2022. http://www.bimtaskgroup.org/wp-content/uploads/2012/03/BISBIM-strategy-Report.pdf.
Blau, P. M. 1964. Exchange and power in social life. New York: Wiley.
Bryde, D., M. Broquetas, and J. M. Volm. 2013. “The project benefits of building information modelling (BIM).” Int. J. Project Manage. 31 (7): 971–980. https://doi.org/10.1016/j.ijproman.2012.12.001.
Caniëls, M. C., C. J. Gelderman, and N. P. Vermeulen. 2012. “The interplay of governance mechanisms in complex procurement projects.” J. Purchasing Supply Manage. 18 (2): 113–121. https://doi.org/10.1016/j.pursup.2012.04.007.
Cao, Z., and F. Lumineau. 2015. “Revisiting the interplay between contractual and relational governance: A qualitative and meta-analytic investigation.” J. Oper. Manage. 33 (Jan): 15–42. https://doi.org/10.1016/j.jom.2014.09.009.
Cheung, S., W. K. Wong, T. W. Yiu, and T. W. Kwok. 2008. “Exploring the influence of contract governance on construction dispute negotiation.” J. Civ. Eng. Educ. 134 (4): 391–398. https://doi.org/10.1061/(ASCE)1052-3928(2008)134:4(391).
Chong, H. Y., C. Y. Lee, and X. Wang. 2017. “A mixed review of the adoption of building information modelling (BIM) for sustainability.” J. Cleaner Prod. 142 (Jan): 4114–4126. https://doi.org/10.1016/j.jclepro.2016.09.222.
Chong, H. Y., R. Lopez, J. Wang, X. Wang, and Z. Zhao. 2016. “Comparative analysis on the adoption and use of BIM in road infrastructure projects.” J. Manage. Eng. 32 (6): 05016021. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000460.
Cohen, J. 1988. Statistical power analysis for the behavioral sciences. 2nd ed. Hillsdale, NJ: Lawrence Erlbaum Associates.
Corts, K. S., and S. Jasjit. 2004. “The effect of repeated interaction on contract choice: Evidence from offshore drilling.” J. Law Econ. Organ. 20 (1): 230–260. https://doi.org/10.1093/jleo/ewh031.
Cropanzano, R., and M. S. Mitchell. 2005. “Social exchange theory: An interdisciplinary review.” J. Manage. 31 (6): 874–900. https://doi.org/10.1177/0149206305279602.
Daniel, E., and P. A. Daniel. 2019. “Megaprojects as complex adaptive systems: The Hinkley point C case.” Int. J. Project Manage. 37 (8): 1017–1033. https://doi.org/10.1016/j.ijproman.2019.05.001.
Eadie, R., M. Browne, H. Odeyinka, C. Mckeown, and S. Mcniff. 2013. “BIM collaboration throughout the UK construction project lifecycle: An analysis.” Autom. Constr. 36 (3): 145–151. https://doi.org/10.1016/j.autcon.2013.09.001.
Eastman, C., P. Teicholz, R. Sacks, and K. Liston. 2011. “BIM handbook: A guide to building information modelling for owners, managers, designers, engineers, and contractors.” Australas. J. Constr. Econ. Build. 2011 (Apr): 19. https://doi.org/10.5130/ajceb.v12i3.2749.
Eckhard, B., and T. Mellewigt. 2005. “Contractual functions and contractual dynamics in inter-firm relationships: What we know and how to proceed.” SSRN Electron. J. 76 (6): 1–41. https://doi.org/10.2139/ssrn.899527.
Franz, B., and J. Messner. 2019. “Evaluating the impact of building information modeling on project performance.” J. Comput. Civ. Eng. 33 (3): 04019015. https://doi.org/10.1061/(ASCE)CP.1943-5487.0000832.
Gao, N., Y. Chen, W. Wang, and Y. Wang. 2018. “Addressing project complexity: The role of contractual functions.” J. Manage. Eng. 34 (3): 04018011. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000613.
Goo, J., R. Kishore, H. R. Rao, and K. Nam. 2009. “The role of service level agreements in relational management of information technology outsourcing: An empirical study.” Mis. Q. 33 (1): 212–222.
Gulati, R., P. R. Lawrence, and P. Puranam. 2005. “Adaptation in vertical relationships: Beyond incentive conflict.” Strategic Manage. J. 26 (5): 415–440. https://doi.org/10.1002/smj.458.
Hadzaman, N. A. H., R. Takim, and A. H. Nawawi. 2018. “Content validity of governing in building information modelling (BIM) implementation assessment instrument.” IOP Conf. Series Earth Environ. Sci. 140 (1): 012405. https://doi.org/10.1088/1755-1315/140/1/012105.
Hair, J. F., G. T. M. Hult, C. Ringle, and M. Sarstedt. 2016. A primer on partial least squares structural equation modeling (PLS-SEM). 2nd ed. London: SAGE.
Hair, J. F., J. J. Risher, M. Sarstedt, C. M. Ringle, G. Svensson, and G. Svensson. 2018. “When to use and how to report the results of PLS-SEM.” Eur. Bus. Rev. 2019 (Jan): 14. https://doi.org/10.1108/EBR-11-2018-0203.
Hair, J. F., M. Sarstedt, C. M. Ringle, and J. A. Mena. 2012. “An assessment of the use of partial least squares structural equation modeling in marketing research.” J. Acad. Marketing Sci. 40 (3): 414–433. https://doi.org/10.1007/s11747-011-0261-6.
Haq, S. U., D. Gu, C. Liang, and I. Abdullah. 2019. “Project governance mechanisms and the performance of software development projects: Moderating role of requirements risk.” Int. J. Project Manage. 37 (4): 533–548. https://doi.org/10.1016/j.ijproman.2019.02.008.
He, Q., G. Wang, L. Luo, Q. Shi, J. Xie, and X. Meng. 2017. “Mapping the managerial areas of building information modeling (BIM) using scientometric analysis.” Int. J. Project Manage. 35 (4): 670–685. https://doi.org/10.1016/j.ijproman.2016.08.001.
Heide, J. B., and G. John. 1992. “Do norms matter in marketing relationships?” J. Marketing 56 (2): 32–44. https://doi.org/10.1177/002224299205600203.
Huber, T. L., T. A. Fischer, J. Dibbern, and R. Hirschheim. 2013. “A process model of complementarity and substitution of contractual and relational governance in IS outsourcing.” J. Manage. Inf. Syst. 30 (3): 81–114. https://doi.org/10.2753/MIS0742-1222300304.
Jeong, I. J., and V. J. Leon. 2012. “A serial supply chain of newsvendor problem with safety stocks under complete and partial information sharing.” Int. J. Prod. Econ. 135 (1): 412–419. https://doi.org/10.1016/j.ijpe.2011.08.015.
Jie, C., W. U. Dian-Kun, R. Jian-Bo, L. I. Jun, and L. Bing-Quan. 2014. “Using cloud-BIM to improve the collaborative design of construction projects.” J. Eng. Manage. 5 (2): 27–31. https://doi.org/10.13991/j.cnki.jem.2014.05.006.
Ju, M., and G. Y. Gao. 2017. “Relational governance and control mechanisms of export ventures: An examination across relationship length.” J. Int. Marketing 25 (2): 72–87. https://doi.org/10.1509/jim.16.0070.
Kadefors, A. 2004. “Trust in project relationships—Inside the black box.” Int. J. Project Manage. 22 (3): 175–182. https://doi.org/10.1016/S0263-7863(03)00031-0.
Kalnins, A. 2004. “Relationships and hybrid contracts: An analysis of contract choice in information technology.” J. Law Econ. Organ. 20 (1): 207–229. https://doi.org/10.1093/jleo/ewh030.
Kim, J. 1988. “What is naturalized epistemology?” Philos. Perspect. 2 (Sep): 381–405. https://doi.org/10.2307/2214082.
Kock, N. 2015. “Common method bias in PLS-SEM: A full collinearity assessment approach.” Int. J. e-Collab. 11 (4): 1–10. https://doi.org/10.4018/ijec.2015100101.
Lee, C. Y., H. Y. Chong, Q. Li, and X. Wang. 2020. “Joint contract–function effects on BIM-enabled EPC project performance.” J. Constr. Eng. Manage. 146 (3): 04020008. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001766.
Lee, C. Y., H. Y. Chong, and X. Wang. 2018. “Enhancing BIM performance in EPC projects through integrative trust-based functional contracting model.” J. Constr. Eng. Manage. 144 (7): 06018002. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001521.
Lee, S., J. Yu, and D. Jeong. 2015. “BIM acceptance model in construction organizations.” J. Manage. Eng. 31 (3): 04014048. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000252.
Li, R., Y. Yuan, W. Zhang, and Y. Yuan. 2018. “Unified vision-based methodology for simultaneous concrete defect detection and geolocalization.” Comput.-Aided Civ. Infrastruct. Eng. 33 (7): 527–544. https://doi.org/10.1111/mice.12351.
Lu, P., S. Guo, L. Qian, P. He, and X. Xu. 2015. “The effectiveness of contractual and relational governances in construction projects in China.” Int. J. Project Manage. 33 (1): 212–222. https://doi.org/10.1016/j.ijproman.2014.03.004.
Luo, Y. 2002. “Contract, cooperation, and performance in international joint ventures.” Strategic Manage. J. 23 (10): 903–919. https://doi.org/10.1002/smj.261.
Lusch, R. F., and J. R. Brown. 1996. “Interdependency, contracting, and relational behavior in marketing channels.” J. Marketing 60 (4): 19–38. https://doi.org/10.1177/002224299606000404.
Ma, X., F. Xiong, T. O. Olawumi, N. Dong, and A. P. Chan. 2018. “Conceptual framework and roadmap approach for integrating BIM into lifecycle project management.” J. Manage. Eng. 34 (6): 05018011. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000647.
Malhotra, D., and F. Lumineau. 2011. “Trust and collaboration in the aftermath of conflict: The effects of contract structure.” Acad. Manage. J. 54 (5): 981–998. https://doi.org/10.5465/amj.2009.0683.
Marzouk, M., M. Hisham, S. Ismail, M. Youssef, and O. Seif. 2013. “On the use of building information modeling in infrastructure bridges.” Accessed January 2, 2022. http://itc.scix.net/data/works/att/w78-2010-135.pdf.
Mellewigt, T., J.-P. D. C. Decker, and B. Eckhard. 2012. “What drives contract design in alliances? Taking stock and how to proceed.” Zeitschrift Für Betriebswirtschaft 82 (7–8): 839–864. https://doi.org/10.1007/s11573-012-0591-y.
Nickerson, J. A., B. H. Hamilton, and T. Wada. 2001. “Market position, resource profile, and governance: Linking Porter and Williamson in the context of international courier and small package services in Japan.” Strategic Manage. J. 22 (3): 251–273. https://doi.org/10.1002/smj.159.
Oraee, M., M. Hosseini, R. Edwards, D. Li, H. Papadonikolaki, and E. Cao. 2019. “Collaboration barriers in BIM-based construction networks: A conceptual model.” Int. J. Project Manage. 37 (6): 839–854. https://doi.org/10.1016/j.ijproman.2019.05.004.
Pinto, J. K., D. P. Slevin, and B. English. 2009. “Trust in projects: An empirical assessment of owner/contractor relationships.” Int. J. Project Manage. 27 (6): 638–648. https://doi.org/10.1016/j.ijproman.2008.09.010.
Poppo, L., and T. Zenger. 2002. “Do formal contracts and relational governance function as substitutes or complements?” Strategic Manage. J. 23 (8): 707–725. https://doi.org/10.1002/smj.249.
Rezgui, Y., T. Beach, and O. Rana. 2013. “A governance approach for BIM management across lifecycle and supply chains using mixed-modes of information delivery.” J. Civ. Eng. Manage. 19 (2): 239–258. https://doi.org/10.3846/13923730.2012.760480.
Rindfleisch, A., and J. B. Heide. 1997. “Transaction cost analysis: Past, present and future applications.” J. Marketing 61 (4): 30–54. https://doi.org/10.1177/002224299706100403.
Rokkan, A. I., J. B. Heide, and K. H. Wathne. 2003. “Specific investment in marketing relationships: Expropriation and bonding effects.” J. Marketing Res. 40 (Apr): 210–224. https://doi.org/10.1509/jmkr.40.2.210.19223.
Sahin, F., and E. P. Robinson. 2002. “Flow coordination and information sharing in supply chains: Review, implications, and directions for future research.” Decis. Sci. 33 (4): 505–536. https://doi.org/10.1111/j.1540-5915.2002.tb01654.x.
Schepker, D. J., W. Y. Oh, A. Martynov, and L. Poppo. 2014. “The many futures of contracts: Moving beyond structure and safeguarding to coordination and adaptation.” J. Manage. 40 (1): 193–225. https://doi.org/10.1177/0149206313491289.
Steup, M., and R. Neta. 2005. Epistemology. Stanford, CA: Stanford Encyclopedia of Philosophy.
Tan, T., K. Chen, F. Xue, and W. Lu. 2019. “Barriers to building information modeling (BIM) implementation in china’s prefabricated construction: An interpretive structural modeling (ISM) approach.” J. Cleaner Prod. 219 (May): 949–959. https://doi.org/10.1016/j.jclepro.2019.02.141.
Tang, X., C. Heap-Yih, and Z. Wei. 2019. “Relationship between BIM implementation and performance of OSM projects.” J. Manage. Eng. 35 (5): 04019019. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000704.
Vasista, T. G., and A. Abone. 2018. “Benefits, barriers and applications of information communication technology in construction industry: A contemporary study.” Int. J. Eng. Technol. 7 (3): 492–499. https://doi.org/10.14419/ijet.v7i3.27.18004.
Vincent-Jones, P. 2000. “Contractual governance: Institutional and organizational analysis.” Oxford J. Leg. Stud. 20 (3): 317–351. https://doi.org/10.1093/ojls/20.3.317.
Wang, D., S. Fang, and K. Li. 2019. “Dynamic changes of governance mechanisms in mega construction projects in China.” Eng. Constr. Archit. Manage. 26 (4): 723–735. https://doi.org/10.1108/ECAM-03-2018-0137.
Wang, T., D. Ford, H. Chong, and W. Zhang. 2018. “Causes of delays in the construction phase of Chinese building projects.” Eng. Constr. Archit. Manage. 25 (11): 1534–1551. https://doi.org/10.1108/ECAM-10-2016-0227.
Weber, L., and K. J. Mayer. 2011. “Designing effective contracts: Exploring the influence of framing and expectations.” Acad. Manage. Rev. 36 (1): 53–75. https://doi.org/10.5465/amr.2008.0270.
Williamson, O. E. 1979. “Transaction-cost economics: The governance of contractual relations.” J. Law Econ. 22 (2): 233–261. https://doi.org/10.1086/466942.
Williamson, O. E. 1985. The economic institutions of capitalism. New York: Free Press.
Wong, P. S. D., and S. O. Cheung. 2005. “Structural equation model of trust and partnering success.” J. Manage. Eng. 21 (2): 70–80. https://doi.org/10.1061/(ASCE)0742-597X(2005)21:2(70).
Yan, L., and L. Zhang. 2020. “Interplay of contractual governance and trust in improving construction project performance: Dynamic perspective.” J. Manage. Eng. 36 (4): 04020029. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000791.
Zhao, X., Y. Feng, J. Pienaar, and D. O’Brien. 2017. “Modelling paths of risks associated with BIM collaboration in architectural, engineering and construction projects.” Archit. Sci. Rev. 60 (6): 472–482. https://doi.org/10.1080/00038628.2017.1373628.
Information & Authors
Information
Published In
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Jul 22, 2020
Accepted: Feb 4, 2022
Published online: Mar 24, 2022
Published in print: Jun 1, 2022
Discussion open until: Aug 24, 2022
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.
Cited by
- Mohammadreza Najafzadeh, Hamidreza Abbasianjahromi, Seyedsoroush Zomorodi, Industry 4.0 and Construction Contract Management: A Bibliometric Survey, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-988, 16, 3, (2024).
- Amelia Celoza, Daniel P. de Oliveira, Fernanda Leite, Role of BIM Contract Practices in Stakeholder BIM Implementation on AEC Projects, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-916, 15, 2, (2023).
- Conghan Wang, Shuibo Zhang, Ying Gao, Qing Guo, Lei Zhang, Effect of Contractual Complexity on Conflict in Construction Subcontracting: Moderating Roles of Contractual Enforcement and Organizational Culture Distance, Journal of Construction Engineering and Management, 10.1061/JCEMD4.COENG-12822, 149, 5, (2023).
- Yazhuo Luo, Yuanze Chen, Understanding the Relationship between Asset Specificity and Governance Choices in Construction Projects: Moderating Role of Uncertainty, Journal of Construction Engineering and Management, 10.1061/JCEMD4.COENG-12729, 149, 3, (2023).
- Ying Gao, Xiaoyu Liu, Shuibo Zhang, Jinyue Zhang, Qing Guo, BIM application and collaboration in construction projects: a perspective of the Chinese construction market, Construction Management and Economics, 10.1080/01446193.2022.2080240, 40, 6, (429-441), (2022).