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Overall, construction disputes arise when project expectations, contractual obligations, changes and results are not synchronized to meet expectations of all parties participating in the project.
Many in the industry anticipate that as construction projects become more complex, the number of disputes will continue to grow in number and become more costly. However, there are others who believe that there are a number of innovative construction-related technologies that offer the potential to reduce the number of disputes in our industry. One of those technologies is BIM, especially as it integrates with artificial intelligence.
Dynamic system
In contrast to the traditional way contractors and subs perform their specialized functions within a project in a somewhat independent and often disconnected way, BIM provides a dynamic system of collecting, integrating and updating plans, activities and information, and updating and disseminating that information to project participants. BIM connects all involved with continually updated, three-dimensional views on progress as a whole, as well as how changes to the initial plans affect other participants’ actions and future results.
The utilization of BIM on a project enhances communication relevance by keeping everyone engaged in the conversation on an ongoing basis. With BIM, each participant can “visualize” the entire project as it’s being built and the effect their work has on completing the structure.
As changes are planned and completed, BIM is updated and shared with all parties. With BIM, stakeholders can see and understand how their own work is contributing (or not) to the project’s success, including anticipating where potential clashes might occur. In theory, with BIM, participants are able to identify points of conflict and recommend solutions before they become an issue.
Shortcomings
Yet, as inventive as BIM may be in taking construction collaboration forward, it has some shortcomings. One of the drawbacks of using BIM has been the length of time it takes for the system to update and communicate changes and “clash points” to participants. Sometimes updating occurs after it’s already too late to alter anything. BIM also remains limited in scope because it only focuses on the structural, mechanical, engineering and plumbing aspects of the project, leaving out a number of important functions.
One case study concerned the building of a hospital that used BIM. Throughout the project, there happened to be a number of clash issues. Work was continually held up so that BIM could be updated to reveal future potential clashes. The continual updating took time – for example, concrete pouring was repeatedly held up until BIM could be updated. The delays became significant and ultimately caused a dispute and litigation.
As a potential remedy for the updating speed issue, AI technology is demonstrating a great deal of promise for practical utilization in the construction industry. When AI is integrated into the BIM process it can offer the ability to bring speed, machine learning, extrapolation and memory skills, with the potential to take BIM to another level. Not only will participants be able to view the entire project as it’s being built, together with their part in the process, they will also be able to anticipate clashes and recommend solutions even before the next work has begun. BIM with AI offers the potential to eliminate many of the causes of disputes well before they can affect other aspects of the project.
For example, in the building of a detention center, one contractor installed fire protection lines in such a way that the HVAC contractor then had to change their ductwork installation in the field, resulting in significant additional time and materials being charged, and leading to a lawsuit. This type of clash most likely would never occur if BIM with AI had been utilized and the fire protection plans could have been quickly integrated into the process where they might have been changed well before installation.
As AI evolves and effectively integrates with BIM, we believe there are six important areas where it has the potential to dramatically reduce construction disputes and litigation, including:
Speeding up real time project updating to all parties: To overcome one of BIM’s shortcomings, AI, tapping into its machine learning and predictive capabilities, can enable BIM to update work action much more quickly and thoroughly. Not only will everyone be updated regarding their work, they will also be able to see the effect the entire team’s work has on the project, and in real time. Even more valuable is AI’s speed in extrapolating what, where and how work will affect other aspects of the project, so more complete solutions can be planned that circumvent problems well before they have a chance to manifest.
Putting the change order process into blockchain enhances accuracy and credibility: BIM with AI incorporates blockchain technology to enhance security in data chains preventing manipulation of construction change order source data and timeline. One cannot edit, add or delete an order in blockchain without the system noting the change and the source of the change. Blockchain can build more trust into the process, which will not only make it more efficient, but more reliable in limiting disputes.
AI is powerful in comparing cause and effect on multiple levels: With the implementation of “smart” contracts, AI can link action and results to contractual obligations and provide advance notice of shortcomings, as well as confirmation of completions. BIM with AI can virtually eliminate the “he said, she said” subjectivity that is present in many disputes.
AI, with its advanced predictive capabilities, can be proactive in reducing disputes: With a BIM model in place, AI can more effectively predict and communicate potential issues, clashes, changes or threats to the model’s successful completion. BIM with AI can more effectively warn stakeholders to take action before the conflict intensifies and triggers other dispute situations. Certain types of negligence will be virtually eliminated.
Managing operational issues like relationships, including contracts and activities by sub-contractors: Traditionally in construction, relationships with sub-contractors can become disconnected from the project’s overall management leading to fulfillment disputes. AI capabilities can more effectively coordinate subs, their work and the effect on many aspects of the project, including contract compliance. It can also notify stakeholders, much more quickly when work falls behind, goes over-budget, is defective or undermines future steps.
Speeding payment by more definitively confirming completion (or not): Arguably one of biggest causes of disputes is the gray area regarding how much work has been completed and when payment is due, as well as how much is due. BIM with AI can provide quicker confirmation of timely completion or non-completion, and either suggest payment authorization or identify shortcomings and those responsible.
It is no secret that the construction industry has been slow to embrace technology and change. However, as construction projects become more complex, the number of disputes together with the cost of pursuing or defending them has the potential to grow and become unmanageable.
Although, we’re still a long way from having AI robots build entire construction projects without humans, new technology such as AI and BIM can start to be used to add speed, value and trust to the construction management process.
Construction disputes probably will never go away, however BIM with AI has the promise of dramatically reducing the number of disputes by more efficiently and effectively preventing or validating claims.
James Gallagher, P.E., F.ASCE, is Principal of Resolution Management Consultants, Inc., a nationally recognized consulting firm advising in construction planning and management. www.resmgt.com