Interscale Content Hub – The construction industry is always looking for ways to work smarter, save money and get better results from projects.
Building Information Modelling (BIM) is now seen as a great way to make big changes in this area. But how does BIM save money?
It’s all about making processes more efficient, improving how teams work together, and giving valuable insights at every stage of the building lifecycle.
Let’s take a closer look at these points now.
How Does BIM Save Money: Key Ways
BIM can save money in a number of ways, including reducing the need for rework, improving project coordination and making buildings more energy efficient.
The 2016 Autodesk report, “The Value of BIM for Owners: Save Time and Money During the Building Lifecycle,” shows how rework alone accounts for about 30% of construction costs.
But that figure can be dramatically reduced by BIM’s clash detection and design validation features.
For instance, Lina Gharaibeh and colleagues in “Quantifying BIM investment value: a systematic review,” show how BIM cut rework costs by 49% in some projects, saving millions of dollars and making a big difference to project timelines.
Another important way that BIM can save money is by helping to manage the project schedule.
The Gharaibeh et al., review shows that BIM can save up to 41% of the time, as various case studies have found.
This also means that the project can be completed more quickly, which saves money and reduces the financial risks associated with delays.
The Autodesk report also shows how BIM helped a hospital project in Augusta, Maine. It was finished ten months early, saving $20 million.
BIM also helps with energy efficiency. It can be used in the design phase to analyse energy use early on. This leads to more sustainable building designs.
For further insight into the financial aspects of BIM, kindly read “How Much Does BIM Cost? Is It Possible on a Tight Budget? Is It Pays Off?“
Challenges and Considerations
BIM has loads of benefits, but there are a few things to think about before you get started.
The Australian Institute of Architects (AIA) and NBS Australia say in their 2021 report, “BIM and Beyond”, that the lack of in-house expertise, cost of software, and lack of standardised protocols are the main reasons why companies don’t use BIM.
It’s true that the upfront costs of BIM, including software, training, and integrating new workflows, can be a barrier for some organisations.
The Autodesk report says even though BIM can bring returns of up to 500%, the upfront costs are still a big obstacle for many companies, especially smaller ones.
These challenges show we need to make sure people get the right training, invest in the right software and develop clear guidelines for BIM implementation.
Also, the research by Gharaibeh et al., shows there’s no standard way of measuring the ROI of BIM, and people often don’t count the intangible benefits.
In other words, it is reasonable to ask how does BIM saves money. The lack of standards has left many people confused and has resulted in the creation of a multitude of parameters.
This shows that we need to do more research and development to come up with consistent ways of measuring the financial impact of BIM and to fully recognise the value of its intangible benefits, such as improved collaboration and decision-making.
How Does BIM Reduce Waste?
The reduction of waste through BIM is not a mere byproduct. It is, in fact, an intentional outcome of its intelligent design and data management capabilities.
As detailed in the systematic review by Gharaibeh and colleagues, there is no doubt that BIM plays a critical role in minimising construction waste.
It does this by improving project coordination, enabling better decision-making, and optimising material usage.
BIM’s ability to facilitate prefabrication and modular construction is a key factor in reducing waste.
Furthermore, integrating BIM into construction planning enables precise measurements and accurate material forecasting, reducing waste.
The Autodesk report definitively shows an increase in pre-fabrication opportunities of up to 50% for companies using BIM, which directly contributes to a reduction in on-site waste.
Furthermore, BIM’s clash detection feature is essential for preventing errors that would otherwise lead to costly rework and excess material waste.
The same Autodesk report shows how BIM has helped reduce rework costs by approximately 30% by identifying potential conflicts early in the design process.
For additional information on BIM Consultants, please refer to “What is a BIM Consultant? How It Help Avoid Costly Mistakes & Delays?“
When to Use BIM
Gharaibeh et al., have demonstrated without a doubt how BIM is most effective when integrated from the outset of the project lifecycle.
This approach guarantees all stakeholders are aligned and the full benefits of BIM are realised, including improved collaboration, clash detection and precise scheduling.
So, ideally, how does BIM save money? The ideal answer is BIM should be used from the conceptual design phase onwards so it can be really cost-effective.
Autodesk’s report definitively shows how early-stage adoption of BIM allows for iterative design processes.
BIM is also highly effective during the construction phase. The AIA’s “BIM and Beyond” report definitively shows how using BIM during construction improves on-site communication and coordination, leading to fewer delays and cost overruns.
In one of Autodesk’s most notable examples, BIM was used to construct a hospital in Augusta, Maine.
The project was completed ten months ahead of schedule and saved approximately $20 million.
The success of this project was largely down to the real-time data sharing and visualisation capabilities of BIM, which ensured that all team members were working with the most up-to-date information.
Furthermore, BIM’s value extends into the post-construction phase, particularly in facility management.
As detailed in the systematic review by Gharaibeh et al., BIM’s 3D models and integrated data can and should be reused for managing the building throughout its lifecycle, leading to more efficient maintenance and operations.
The Autodesk report also includes the U.S. Government Services Administration (GSA) as a user of BIM.
This allows the GSA to maintain a database of 3D models that assist in the ongoing management of their properties, leading to substantial operational efficiencies.
What If You Can’t Save Money Even Though Using BIM?
It’s a fair question because, like any tool, BIM needs to be used properly to get the most out of it.
That’s why, if you’re not seeing the cost savings you expected, it’s time to take a closer look at your BIM strategy.
Let’s look at V.J. Agosta and Associates (VJA) as an example. Even though they had some issues with Revit at first, partnering with Interscale helped them out.
We at Interscale did some audits of VJA’s Revit templates and workflows to find out what was causing problems and making things more expensive.
By making a few tweaks, VJA saw an uptick in productivity and fewer mistakes, which meant real savings.
Similarly, Studio Tate had a tough time when they first started using BIM.
The key to their success wasn’t just adopting the technology, but getting tailored support and training from Interscale.
This meant their team not only knew how to use BIM, but also knew how to use it to get better results on projects and save money in the long run.
The main thing to take away from this is that there’s no magic formula for making money from BIM.
If you don’t get the implementation right, have continuous support in place, and tailor the solutions, even the most advanced BIM systems won’t deliver the expected savings.
We know there’s a lot to take in, and we’re sorry if we’re making things a bit confusing for you right now.
Therefore, we’d love for you to take a look at our Interescale BIM Management page and get to know us a bit better.
Or, if you think a coffee and croissants might be a good idea, let’s meet up. We’re ready to show you how we can help you tackle those BIM challenges.
In Closing
While there’s an initial investment in software, training, and process adaptation when you start using BIM, the potential for cost savings and improved project outcomes is huge.
The issue is in the details of implementation. Yes, as you might expect.
As you might expect, the full range of BIM benefits can be achieved by implementing the effective use of BIM.
So, how does BIM save money? The answers will depend on your BIM implementation. Consequently, Interscale is prepared to serve as your BIM-supporting system.
