What is BIM Cost, the Benefit, and Strategies for AEC Firms?

Building Information Modeling (BIM) has become an indispensable tool for cost in the Architecture, Engineering, and Construction (AEC) industry. This article explains the various cost aspects of BIM cost estimation strategies, benefits and how it can lead to project savings.

Table of Contents

Understanding BIM Costs – What Does It Really Include?

Implementing BIM cost involves more than just purchasing software licenses. Moreover, it requires looking at initial outlays, ongoing expenses, and less obvious “hidden” costs.

Breaking Down the Initial Costs of BIM Implementation

Software Licenses: The cost of BIM software itself, which can range from perpetual licenses to subscription models, and varies significantly depending on the vendor (e.g., Autodesk Revit, ArchiCAD, Bentley AECOsim) and the specific modules required.
Hardware Upgrades: Running BIM software efficiently often necessitates powerful computers, high-resolution monitors, and sufficient storage, which may require significant hardware upgrades for existing systems.
Initial Training: To effectively utilize BIM, staff members need comprehensive training, which can be provided by software vendors, third-party trainers, or in-house experts. This can involve significant upfront costs and time commitment.
Pilot Projects: Many firms opt to implement BIM on smaller pilot projects first to iron out workflows and identify challenges before a full-scale rollout. This phase incurs costs related to the project itself and the learning curve.

Ongoing Costs – Maintenance, Updates, and Training

Software Subscriptions or Maintenance: If using a subscription model, these are regular fees. For perpetual licenses, there are often annual maintenance or support contracts to receive updates and technical assistance.
Software Updates and Upgrades: As BIM software tool evolves, firms need to invest in updates and upgrades to leverage new features and maintain compatibility with industry standards.
Continuous Training: The BIM landscape is dynamic. Ongoing training is essential to keep staff proficient with new software versions, emerging technologies, and evolving BIM standards and best practices.
IT Infrastructure Maintenance: Maintaining the necessary IT infrastructure, including servers, networks, and data storage, for BIM projects also contributes to ongoing costs.

Hidden Costs – Time, Learning Curve, and Workflow Disruptions

Time Investment for Learning: Beyond formal training, there’s a significant time investment as employees adapt to new software and workflows, which can temporarily impact productivity.
Steep Learning Curve: For those accustomed to traditional CAD methods, the transition to BIM can involve a steep learning, leading to initial slowdowns and potential frustration.
Workflow Disruptions: Integrating BIM into existing project workflows requires careful planning and can initially disrupt established processes as teams adjust to new collaboration methods and information exchange protocols.
Data Management and Storage: BIM models can be large and complex, requiring robust data management strategies and potentially increased storage costs.
Resistance to Change: Overcoming resistance to new technologies and processes within an organization can also be a “hidden cost” in terms of time and effort required for change management.

How Can BIM Reduce Project Costs?

BIM service can offer significant opportunities to reduce construction project costs by these implementations:

Reducing Rework and Errors Through Clash Detection

One of BIM’s most powerful cost-saving features is its ability to perform clash detection. By integrating models from various disciplines, BIM services can automatically identify conflicts and interference (clashes) before construction begins.

Proactive Issue Resolution: Identifying clashes in the design phase, rather than on-site, drastically reduces the need for expensive rework, material waste, and schedule delays.
Improved Coordination: BIM fosters better coordination among project stakeholders, leading to a more integrated design and fewer misunderstandings that could lead to errors.

Optimizing Material Usage Through 3D Modeling and Quantification

Accurate Material Take-offs: BIM models can generate highly accurate material take-offs, minimizing over-ordering or under-ordering of materials, both of which lead to waste and increased costs.
Reduced Waste: By optimizing material usage, firms can significantly reduce construction waste, leading to environmental benefits and cost savings on disposal.
Better Budgeting and Procurement: Accurate quantification enables more precise budgeting and more efficient procurement processes, potentially leading to better pricing from suppliers.

Enhancing Project Collaboration and Reducing Delays

Centralized Information: BIM models serve as a central repository for project information, ensuring all stakeholders are working with the most up-to-date data. This reduces miscommunication and errors.
Improved Communication: Visual 3D models are easier to understand than traditional 2D drawings, leading to clearer communication among team members, clients, and contractors.
Faster Decision-Making: With readily available and accurate information, project teams can make faster and more informed decisions, preventing costly delays.
Streamlined Workflows: BIM promotes integrated project delivery (IPD) and other collaborative workflows, leading to more efficient processes and reduced project durations.

BIM Cost Management Estimation Strategies for AEC Firms

To maximize the benefits of BIM and control costs, AEC firms should implement an BIM cost estimating strategy by doing these:

Choosing the Right BIM Software for Budget and Scale

Assess Project Needs: Firms should evaluate their typical project types, sizes, and complexity to choose software that aligns with their specific requirements.
Consider Scalability: Select software that can scale with the firm’s growth and evolving project demands.
Evaluate Licensing Models: Compare perpetual licenses versus subscription models and understand the total cost of ownership over time.
Research Industry Standards: Choose software that is widely adopted in the industry to ensure compatibility and ease of collaboration with other firms.

Implementing Standardized Workflows to Reduce Redundancy

Develop BIM Execution Plans (BEP): Create clear BEPs for each project that define roles, responsibilities, information exchange protocols, and modeling standards.
Utilize Templates and Libraries: Develop and utilize standardized templates, families, and object libraries to reduce redundant work and ensure consistency across projects.
Automate Repetitive Tasks: Leverage BIM software’s capabilities to automate repetitive tasks, freeing up staff for more complex problem-solving.

Integrating BIM With Existing Project Management Software

Data Exchange: Ensure BIM software can exchange data with existing project management, scheduling, and cost estimation software to create a unified project information ecosystem.
Improved Data Flow: Integrating systems reduces manual data entry, minimizes errors, and improves the flow of information across different project phases.
Holistic Project View: This integration provides a holistic view of the project, enabling better tracking of progress, costs, and resources.

What is the ROI of Using BIM in Construction?

The Return on Investment (ROI) of BIM in construction can be substantial, though it can be challenging to quantify precisely:

Reduced Project Costs: As discussed, this is the most direct measure of ROI, achieved through minimized rework, optimized material use, and fewer errors.
Shorter Project Schedules: By streamlining workflows, improving communication, and resolving issues proactively, BIM can significantly reduce project timelines, leading to savings on labor, equipment rental, and overhead costs.
Improved Quality: Fewer errors and better coordination lead to higher quality construction, reducing the need for costly post-construction fixes and warranty claims.
Enhanced Client Satisfaction: Delivering projects on time, within budget, and to a higher quality standard leads to greater client satisfaction, which can result in repeat business and positive referrals.
Increased Profit Margins: The combination of cost reduction, schedule acceleration, and improved quality directly contributes to healthier profit margins for AEC firms.
Risk Mitigation: Identifying and resolving issues in the design phase significantly mitigates risks associated with construction delays, budget overruns, and legal disputes.
Better Asset Performance (for Owners): For building owners, BIM provides a rich data model that can be used for facility management, maintenance planning, and energy optimization throughout the building’s lifecycle, leading to long-term operational savings.
Competitive Advantage: Firms that effectively leverage BIM gain a competitive edge in the market, attracting more projects and talent.

In conclusion, BIM service for cost is not just about direct savings of projects, but also about the impact of improved efficiency, reduced risk, enhanced collaboration, and better overall project outcomes for the AEC industry.