The construction industry generates substantial waste globally, necessitating effective mitigation strategies. This paper quantifies Building Information Modeling’s impact on construction and demolition waste reduction through a systematic literature review and analysis of survey data from Polish construction contractors. Our methodology combines meta-analysis of recent quantitative studies with statistical evaluation of industry survey responses to provide comprehensive insights. Evidence indicates that BIM-based design validation prevents 4.3–15.2% of construction waste, while specialized applications like design for disassembly can reduce waste from exterior wall systems by 68–79%. Empirical evidence indicates that policy interventions and integration with circular economy principles substantially amplify the effectiveness of BIM for waste reduction. Despite BIM adoption growth from 8% (2016) to 63% (2024) among respondents, design errors remain the primary waste generator, indicating that effective implementation—not mere technology adoption—is crucial. Core waste-reducing BIM functionalities include clash detection, accurate quantity take-off, and enhanced visualization, each with documented reduction potentials between 14 and 30%. Implementation challenges include standardizing metrics, addressing context-specific barriers, and developing skilled workforces. This research provides evidence-based recommendations for industry stakeholders seeking to leverage BIM to advance sustainable construction practices in alignment with circular economy goals.