CONSTRUCTION DISPUTE AND CONTRACT DOCUMENT DEFECTIVENESS: TESTING MODERATING EFFECT OF BIM

Abstract

Construction dispute is the result of contract incompleteness caused by bounded rationality and uncertainty. These disputes are prevalent and have a detrimental effect on project success in terms of increased cost, low quality of work, loss of profit, time extension, and damaged business and professional relationships. Using Structural Equation Modelling (SEM), this study examines the relationship between contract defectiveness (one of the bounded rationality classes) and dispute occurrence and the moderating effect of BIM on the causal relationship. The result shows that contract document defectiveness has a significant effect on dispute occurrence. Likewise, the multigroup moderation test revealed a significant, positive, and more substantial impact on the BIM user group. Therefore, it can be posited based on this study's findings that BIM has a significant effect on reducing contract document defectiveness, which is one of the potential benefits of its adoption on construction projects.