Risk Allocation and Mitigation Practices for Building Information Modeling: Addressing Legal and Contractual Risks Associated with Contract Documentation

Abstract

In recent years, the adoption of building information modeling (BIM) has gained significant traction in the construction industry, but its rapid proliferation has also raised concerns about potential risks and challenges associated with its implementation. Although effective risk allocation and mitigation are essential for the successful implementation of BIM in construction projects, there is a notable knowledge gap in this area. Effectively allocating and managing legal and contractual risks in BIM projects can help minimize disputes or any financial and time losses. This article examines various risks associated with BIM contract documentation. Drawing on the theory of risk allocation, the research reported in this article discusses key principles and the most suitable practices for risk allocation and mitigation in the context of BIM contract documentation. According to the findings, most of the risk factors can be avoided if they can be predicted early from the initiation phase of the project, and properly allocated and mitigated in a transparent contract agreement. Based on in-depth interviews with 19 European experts mostly practicing as professional consultants, the research identifies how the BIM risks associated with the contract documentation can be allocated among different project stakeholders, such as clients, designers, contractors, and subcontractors, through contractual provisions and other risk management strategies. This study mainly focuses on projects delivered in a design bid build (DBB) method as it is one of the dominant procurement methods in Europe. By adhering to proper risk allocation and mitigation practices based on the theory of risk allocation, stakeholders in BIM-enabled projects can manage and assign legal and contractual risks in a more effective manner to the party who is more capable of handling the risks and eventually enhance project success.