Influence of Prior Ties on Trust and Contract Functions for BIM-Enabled EPC Megaproject Performance

Abstract

Drawing on transaction cost theory as well as social exchange perspective, this study investigates the influence of prior ties on trust and contract functions—contractual control, coordination, and contingency adaptability—for improving building information modeling (BIM)–enabled engineering, procurement, and construction (EPC) megaproject performance. This study compares questionnaire data collected from stakeholders in oil and gas megaprojects with and without prior working relationships and uses partial least squares structural equation modeling (PLS-SEM) to analyze the relationship between trust, contract functions, and project performance in prior ties and nonprior ties model. The results reveal that trust influences project performance via contract functions significantly in both models. This study found that parties without a prior working relationship are more willing to rely on contractual control to improve project performance, whereas contracting parties with a prior working relationship are more likely to use contingency adaptability to enhance project performance. The findings of this study expand the theoretical understanding of how the trust engendered from prior ties influences the formation of contract functions to improve the performance of BIM-enabled EPC megaprojects.