Technological Advances in Construction linked Financial Management in Real Estate Projects

Anil Kashyap

ERES from European Real Estate Society (ERES)

Abstract: Property development are highly capital intensive, most real projects opt for bank or institutional finances, to finance the construction. In a construction-linked payment (CLP) plan, buyers, developers and financial institutions come together, to ensure participation of each stakeholder. BIM can be used to support construction-linked payments, which are payments made to contractors based on the progress of construction work. By using BIM, stakeholders can monitor the progress of the project in real time and track the completion of specific tasks. This allows for more accurate and timely payments to be made to developer, based on the items of the work that has actually been completed. This would serves dual purpose, firstly that money released by financial institutions will be used on the project for which it is allocated and also with BIM model, the nearly exact dates of payments required can be predicted with more accuracy and certainty. These digital advances in construction projects would help on time and on budget. This helps to ensure that payments are made based on actual progress, rather than estimates or assumptions.

Keywords: Building Information Modelling; Construction Linked Payment; Developer; Stakeholder (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2023-01-01
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2023_262

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