Abstract
In south African Construction industry, issues such as delayed and disputed claims are widespread. These are often attributed to inaccurate progress valuation, lack of transparency, and the risk of fraudulent claims. Disputes arise on the valuation of completed works during interim payment valuation (IPV) largely because the data provided is in question. This is due to the conflicting interests between clients and contractors and the reliance on inaccurate and subjective site data capture through traditional manual methods. As a result, the true value of completed work often becomes a subject of debate and disputes, impeding effective decision-making. Accurate, evidence-based digital data for IPV is critical for enhancing transparency and build trust among in the project stakeholders.
Reality Capture (RC) technology can generate 3D datasets of project site conditions and has emerged as a promising solution. However, the challenge remains: how can RC technology provide an accurate, trustworthy representation of the site conditions that satisfy both clients and contractors? While existing literature highlights RC applications in progress monitoring, quality, digital documentation of heritage buildings, facility operations, and defect detection, there is a lack of empirical evidence regarding its use in the IPV process. The research aimed to develop a framework that outlines how RC technology can be utilized to obtain accurate, trusted data, ensuring effective IPV preparation in the construction industry. The study adopts a qualitative exploratory with a multi-case study validating approach to gain a comprehensive understanding of the subject from an industry and practical perspective. The methodology comprises three key phases: a detailed literature review,
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qualitative expert interviews, and a two-stage multi-case study. The research proposed a workflow for the integration of RC technology into the IPV process through a literature review, evaluated and refined through qualitative interviews with 14 industry professionals comprising 5 quantity surveyors, 2 project managers, 5 reality capture experts, and 2 academic researchers. The refined RC-IPV workflow was validated using two-phase multi-case studies involving 6 ongoing construction projects.
The findings reveal that RC technology can significantly improve the accuracy and transparency of progress monitoring, quality assessment, and cost valuation by providing high-quality visual data and analytics. Key themes identified during the research include RC technology functionality, data quality, implementation challenges, RC technology process and measures, which are all critical factors for the successful application of RC technology. The study further demonstrates the capability of RC tools to streamline IPV processes, reduce disputes, and enhance decision-making among stakeholders by offering data-driven, evidence-based interim payment claims. RC technology helps to mitigate disputes, foster trust and promote collaboration and sustainable construction projects. The research also highlights the importance of stakeholder training to ensure digital solutions and their effective use in the project delivery process.
The case study validation revealed four key findings demonstrating the transformative potential of RC technology in construction project management, particularly for IPV. 1) provision of robust evidence-based IPV claims by stakeholders’ virtual site inspections. 2) Point cloud data (PCD) uncovered overclaims ranging from 0.5% to 22%, ensuring accurate work valuation. 3) Detailed deviation assessments identified
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issues like displacement and misalignment, often missed in manual inspections. 4) PCD categorized components as installed, incomplete, or not installed, eliminating subjective evaluations and ensuring reliable progress assessments.
This study contributes to the body of knowledge by addressing gaps in the literature regarding RC technology’s potential for interim cost valuation and certification. The research provides practical insights on a step-by-step methodological approach and presents an RC-IPV framework to enhance transparency, build trust, and fair payment of work done, thus advancing the digital transformation of construction cost management practices. The findings underscore the role of RC technology in modernizing financial accountability and improving project delivery efficiency in the construction industry. By demonstrating how RC technology can streamline and enhance the IPV process, this study offers an available perspective on how digital solutions can improve transparency, efficiency, and collaboration in construction project management. This research's implications extend to industry practitioners and academics, offering a roadmap for further integration of RC into construction processes and setting the stage for future research and development in this rapidly evolving area.