Understanding the ROI of BIM
Every one knows the old adage: The more you measure, the more you improve. That's a truism whether you're trying to lose weight or simply hang picture frames on a wall. But the same is true when it comes to discovering the ROI in BIM projects. The more areas you measure for improvement, the more advantages you'll find.
Back in January, Vico featured Steve Jones and the McGraw-Hill BIM Smart Market Report on our Fridays with Vico webinar series. The report found that companies who are tracking ROI on their projects are finding 300-500% in cost avoidance and savings.
So, is there a trick to tracking it? That answer is easy: No. Your intuition is going to lead you to these key areas:
Every picture tells a story, don't it? Except that sometimes a model tells a much more engaging story, especially for Owners who might not be comfortable with drawing sets. Simply illustrating the project with a 3D model, quickly showing two construction sequence alternatives based on the model, or quickly changing scope in a particular location can make your presentation resonate with the Owner.
And then, once gearing up for construction, the coordinated model produces many types of drawings, including installation and composite drawings, and field drawings to aid with field operations for everyone on the site.
Two hits of ROI:
1. Using a business development BIM model can help win the deal.
2. Off-site fabrication shaves weeks off the schedule and improves quality.
3D Constructability and Coordination
All constituents can finally see the embodiment of the design. So now changes can be proposed in the Vico 5D model (with complete budget and schedule implications) instead of on-site or at the last minute.
If you didn't see the Swinerton Builders episode of Fridays with Vico, please watch the recorded movie. In it, the Swinerton team expressed that cost avoidance through weekly coordination meetings is the easiest way to pinpoint ROI... but not the only way. Here they illustrated four case studies, each with their own particular cost avoidance and each with their own schedule ramifications, not to mention team building and trust between the GC, subs, and Owner.
Vico has also developed a new Lean Construction approach to Coordination which has proven to be 40% faster than traditional methods and yields a 50% reduction in coordination expenses. The methodology avoids clashes from the start by applying the logic and science of the System Priority Structure to the project modeling. The process includes five phases: modeling; resolving clashes; working with the design team and engineers on key issues; working with the subs to increase the level of detail for 2D installation and composite drawings; and finally a 6D model which includes submittals and materials preferences.
ROI: Hundreds of thousands of dollars worth of RFIs resolved before the first shovel breaks ground.
4D Scheduling and Production Control
If you have the right quantities, the ROI will be reflected in the estimate and schedule. No ifs, and, or buts about that. And by further refining the schedule to particular locations, you can create a highly mobilized assembly line on site, matching the lean tactics of our brethren in manufacturing.
Forward-looking schedule by trade by location means no stops and starts. With the Vico 5D model, trades can be optimally-sequenced to flow through the site without the undue rushing that leads to quality issues.
And as we saw in the St. Joseph Mission Hospital edition of Fridays with Vico, refining the schedule hinges on the coordination resolutions. In their particular situation, the hospital team saved ten weeks of concurrent downtime by resolving a tough materials intersection.
ROI: Schedule compression by at least 10%.
5D Estimating and Cost Planning
Construction quantities need to be derived from the BIM geometry. And if you've got that right, the rest will follow. It's these construction quantities that steer the living estimate from the conceptual estimates from the massing models and to the Earned Value Analysis.
So whether the cost components come from years of legacy data and experience, or the RS Means book, the estimate is refined through better quantities.
Hensel Phelps found that creating a special Concrete Book for the Owner worked extremely well on the Denver Justice Center. In this book, they explained their quantities, estimate, sequence, and schedule in terms the Owner appreciated a visual model. The book turned Hensel into the Owner's trusted partner because they made their methodology transparent.
ROI: Costing insight for subcontractors and self-performed work leads to margin preservation for the GC.
With 300-500% ROI being the norm for BIM construction projects, it's time to start investigating. Make your first stop at Vico's BIM 101 Workshop this Friday, March 20, at 12 Noon Eastern.
The ROI is there for the taking: team time savings, cost avoidance from clashes and schedule compression, and better estimates based on model geometry. Get your BIM on and start seeing the return.
About Vico Software
Vico Software, Inc. provides software and services to the building construction industry. Building owners, general contractors, and construction managers use our software and our services to reduce risk, manage costs, and optimize schedules on complex building projects. Vico's 5D Virtual Construction solutions pioneered the category of BIM for Construction, and they remain the industry's most integrated approach to coordination, quantity takeoff, cost estimation, project scheduling, and production control. The new Vico Office product suite continues this tradition making it possible to leverage many important BIM file formats such as Revit, Tekla, and ArchiCAD. The benefits of our solutions and services have been proven on hundreds of building projects to date.
For More Information, please contact:
Vice President of Marketing for Vico Software
Tel: 978-882-0170 x118 (eastern)