• Toh Ka Bean Department of Quantity Surveying, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia.
  • Muzani Mustapa Department of Quantity Surveying, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia.
  • Fara Diva Mustapa Department of Quantity Surveying, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia.




Transaction costs, Building Information Modeling (BIM), Procurement, Construction industry


The Malaysian construction industry although it plays a crucial function in stimulating the economy, is lagging behind other economic sectors. This is due to its unique characteristics such as fragmentation and slow technology adoption. These very characteristics make the industry susceptible to construction disputes. Construction disputes were found to incur high transaction costs (TCs), affect the parties involved, and subsequently increase overall project costs. Because TCs measure the costs that incur from transaction activities, they can be used to better understand the benefits within each transaction. Additionally, TCs are the best mechanism for analysing the ‘unseen’ costs of construction procurement. Previous studies on the traditional, design-and-build, and public private partnership (PPP) procurement methods have demonstrated TCs affect the organizational dynamics of construction and selection of procurement. The emerging Building Information Modeling (BIM) technology is said to be beneficial in addressing the problems associated with disputes and overall project costs. Consequently, many projects embark on BIM adoption in procurement. Hence, this preliminary study seeks to identify the TCs of BIM-adopted procurement by employing a structured literature review to determine the components and activities within the BIM procurement within the BIM implementation. The initial framework for the components of TCs of BIM procurement was drafted by referring to RIBA Plan of Work with BIM overlay. The components are categorised into pre-contract and post-contract components. These components can serve as the basis for developing a framework that can serve as a guideline for construction players involved in managing the TCs of BIM procurement.


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How to Cite

Ka Bean, T., Mustapa, M., & Mustapa, F. D. (2019). A PRELIMINARY REVIEW ON TRANSACTION COST COMPONENTS WITHIN THE BIM ADOPTED PROCUREMENTS. International Journal of Built Environment and Sustainability, 6(1-2), 161–167. https://doi.org/10.11113/ijbes.v6.n1-2.394