Soft cost elements for roi analysis of bim implementation in construction projects / Abdelrahman Mohamed Ismail Farouk Abdelmageed Rady

Faculty of Civil Engineering Technology

Thesis (Doctor of Philosophy in Civil Engineering) -- Universiti Malaysia Pahang Al Sultan Abdullah – 2025

Includes bibliographical references

In Malaysia's construction industry, Building Information Modeling (BIM) holds immense transformative potential. However, a significant challenge lies in determining the Return on Investment (ROI) of BIM. These costs create financial strain, budget uncertainties, and project inefficiencies, limiting BIM implementation. Despite its evident advantages, the lack of a standardized method for assessing BIM’s ROI and accurately estimating soft costs hampers informed decision-making and broader implementation. Soft costs refer to non-physical project expenses such as design fees, legal services, permit charges, and project management costs. These are often harder to quantify than direct construction costs but significantly influence overall project budgets. This challenge is worsened by inconsistent costing practices across projects, unclear definitions of soft costs, and limited stakeholder awareness, as highlighted in recent construction industry literature. Malaysia faces substantial BIM implementation costs from software and hardware investments to training and consultancy fees, which slow implementation. This research aims to improve the ROI determination of BIM-based construction projects. The study has four objectives: (1) to identify the intricate SCEs in BIM-based construction projects, (2) to determine the critical SCEs, (3) to design and develop a tool for estimating soft costs, and (4) to validate the tool through a quasi-experiment. The methodology comprised four phases aligned with each objective. Phase 1 began with a systematic literature review (SLR) that identified 50 SCEs. In Phase 2, a two-round Delphi survey reached expert consensus on eight critical SCEs. Phase 3 involved semi-structured interviews with BIM professionals to inform tool development using the “Open as App” platform. Phase 4 validated the tool using responses from 35 participants. Results showed a high usability score of 79.4, with users reporting significant improvements in confidence, satisfaction, and ease of estimating soft costs. The BIMSoftPro tool offers a practical solution for estimating soft costs in BIM-based construction, directly addressing one of the key obstacles to determining BIM's return on investment. By improving the consistency of cost estimation, reducing time burdens, and supporting more accurate financial planning, the tool enhances decision-making in BIM implementation. It aligns with Malaysia’s Construction 4.0 Strategic Plan and Shared Prosperity Vision 2030 by promoting digitalization, productivity, and innovation in the built environment. Furthermore, the tool supports compliance with Treasury Circular PK 1.15, which mandates BIM use in all public projects exceeding RM10 million from August 2024. Its contributions also advance Sustainable Development Goals 9 and 11 by facilitating more transparent, efficient, and sustainable construction practices. Collectively, BIMSoftPro strengthens the foundation for wider BIM implementation and supports national development priorities through improved cost management and reliable ROI assessment.