Integrating Building Information Modelling and Intelligent Contract to Payment Process Under Conventional Procurement in Malaysia

Abstract

Conflict caused by payment issues are common in construction industry.  A lengthy payment process issue is a common phenomenon especially in public work projects, which commonly opt for conventional contracts.  Delay in payment process have caused many contractors not being able to receive payment within the stipulated time.  In turn, it may affect the contractor’s cash flow and eventually ended up causing delays in project completion. The effect of technological advances has brought significant changes to the construction industry, which is year after year becoming increasingly complex.  Therefore, in the era of technology and digital, there are many management systems which have been established and introduced amongst construction players for the convenience of managing and administering construction projects.  The introduction of Building Information Modelling (BIM) is to establish a centralised information system, which improves the collaboration, communication and integration between interdisciplines in construction industry.  The development of digital technology of Intelligent Contracts will bring great potential as an automate support system in BIM management process.  These combinations create possible solutions towards payment conflicts in the construction project, through integration of BIM and Intelligent Contracts that may help to reduce the unnecessary procedure and interference that prolong the payment process. The analysis revealed that the adoption of BIM and Intelligent Contracts attributes in payment process under conventional procurement could improve the efficiency and reduce the time by eliminating unnecessary procedure and third parties interference along the process.