Performance-based payment mechanism for common data environment (CDE) adoption in construction projects

Abstract

The construction industry is undergoing a digital transformation in which Common Data Environment (CDE) is one of the digitalization technologies driving this transformation. A CDE consists of workflows and solutions mentioned in international standards and appears to become an essential requirement in construction projects which leads to transforming more traditional practice projects to projects using CDE in the future. Previous studies indicate that there is a lack of mechanisms for quantification of performance in using CDE. This paper identifies common CDE usages and proposes CDE KPIs for measuring the performance of the CDE usages. Based on the CDE KPIs, a payment mechanism is developed to incentivize better performance and quality of CDE adoption. A total of 77 % of respondents voted for a 1 % or above of the project sum that could serve as an incentive (additional provisional sum) for CDE performance with full marks in a project.