Impact of Contractual Flexibility on BIM-Enabled PPP Project Performance during the Construction Phase

Abstract

Building information modeling (BIM) and public–private partnerships (PPPs) have been well-received for their technological and organizational innovations in construction projects. However, due to the complexity nature and project changes of BIM-enabled PPP procurement, an effective and flexible contract remains an unresolved agenda. Hence, this research aims to determine the relationship between contractual flexibility and BIM-enabled PPP project performance, particularly for its project performance during the construction phase. Data were collected through questionnaire surveys. A total of 177 valid responded questionnaires were collected from PPP practitioners under their BIM-enabled PPP projects and analyzed using a structural equation modeling (SEM) method. The results reveal both content flexibility and executing flexibility have a significant positive impact on the performance of BIM-enabled PPP projects during the construction phase, while the effect of executing flexibility is greater than the content flexibility. This research has uncovered a positive effect of contract content flexibility on contract execution flexibility for the first time, which sheds light on appropriate contract framing for governing stakeholders’ relationships in BIM-enabled PPP projects, which is an area that has not been explored in the previous literature. More importantly, it proves the important role of contract flexibility for BIM-enabled PPP projects and helps to effectively promote and use BIM and PPPs in the construction industry. A conceptual framework has also been developed to provide practical references and strategies for future implementation and contract design in BIM-enabled PPP projects, adding new knowledge of construction management both theoretically and practically.