Interscale Content Hub – BIM is changing all the time, with new tech, new challenges and new demands coming up in every project.
But there’s an age-old question we’re still asking: how much does BIM cost?
It’s a fair question. But the answer is pretty complex and multifaceted, just like the technology itself.
We all know Building Information Modelling (BIM) is more than just a software purchase.
So, the real challenge is understanding these costs, what affects them, and how to manage them effectively.
Understanding BIM Costs
There’s no one-size-fits-all price tag for BIM. It’s a moving target affected by all kinds of things, like software, hardware, training, and the often-overlooked cost of changing how we work.
The AIA’s 2021 report, “BIM and Beyond: Design Technology in Architecture,” shows the use of BIM in Australia is mature, with over 70% of firms using it for most of their projects.
But there is a cost to this adoption. Software licences, such as those for Autodesk Revit or similar platforms, can be pretty expensive.
The 2021 AIA report says that 52% of respondents said software costs were a big obstacle to adopting BIM.
On top of the software, there are costs related to training and upskilling staff, which 56% of respondents said was another big expense.
On top of that, firms often have to invest in new hardware to handle the demands of BIM software, which can be particularly expensive for smaller firms.
The complexity of the project also makes a big difference to the cost of BIM.
For instance, creating a detailed Level of Development (LOD) 500 model, which represents an ‘as-built’ condition, can increase project costs by up to 20% during the planning stages and up to three times that amount for service-heavy projects like hospitals, according to the AIA report.
A study from 2015, called ‘Assessing the Performance of the BIM Implementation Process within a Small Specialty Contracting Enterprise’, by Erik A. Poirier and colleagues, found a small mechanical contracting firm spent 0.8% of its yearly sales on BIM.
This included things like software licences, hardware, training, and overhead costs for employees who were working on BIM. So, that’s why we need to think about more than just the money involved.
The Australian Institute of Architects and NBS highlights the need for ‘exploratory time’ for users to understand the difference between BIM software and the broader BIM process. This learning curve can affect productivity at first, which adds another cost to the overall price.
For another insight, kindly read “How To Publish BIM 360 Model: A Step by step Guide.”
Factors Influencing BIM Costs
To answer how much does BIM cost, there are a few things we need to think about to get a handle on the overall cost of implementing BIM in a project.
Project Size and Complexity
The bigger and more complex a project is, the more resources you’ll need to create and manage a BIM model.
For example, creating a full BIM model for a big infrastructure project will take a lot of time and money.
This is shown by the trends in adoption that the AIA talked about in their 2021 report.
Level of Detail (LOD)
The level of detail in the BIM model can make a big difference in costs.
The AIA’s 2021 report goes into detail about how switching from a basic LOD 200 model to a highly detailed LOD 500 model can drive up costs, particularly in projects that require a lot of detail for operational management.
Training and Expertise
The AIA report shows there’s still a need for training and education, which also costs money.
Almost half of those we spoke to said a lack of in-house expertise was a big problem, meaning they need to invest more in training their staff.
Also, firms with a good grasp of BIM reported higher profits, showing that while training costs money, it can lead to long-term gains.
Client Demand and Education
The 2021 AIA report also says that 57% of respondents think clients aren’t ready to invest in BIM yet, mainly because they don’t understand what it can do for them.
This can also affect how much firms can charge for BIM services, which could impact overall profitability.
Market Maturity
BIM is pretty well established in Australia, but it’s still evolving. The 2021 report shows that firms that don’t use BIM are falling behind in terms of productivity.
This market pressure means that firms have to adopt BIM to stay competitive, which involves initial costs that might not be offset by project fees straight away.
Typical BIM Cost Structures
The cost structures involved with BIM are pretty complex and have a lot of different parts to them. Let’s have a look.
Software Costs
The AIA’s 2021 report shows how software costs are a big issue for many firms. For instance, 52% of respondents in the AIA report said that the cost of software is a big obstacle to BIM adoption.
The move to a subscription model for software (Software-as-a-Service) has made this problem worse, as firms now have to pay for it on an ongoing basis rather than just once.
Personnel, Training, and Expertise
As the 2021 AIA report shows, 56% of respondents said a lack of in-house expertise was a big problem.
Training new staff or upskilling existing employees takes time and money.
You might also need to bring in some extra staff with BIM know-how, or get your current team up to speed. For instance, you can take a look at the following table from Poirier and colleagues’ study.
Hardware Requirements
BIM software is pretty resource-intensive, so you need to make sure you have high-performance hardware.
Yes, you need to invest in some powerful computers that can handle large BIM files and complex models.
Upgrading your hardware is a must, but it can be a big expense, especially for small to medium-sized businesses.
Project-Specific Costs
The level of detail in BIM models makes a big difference to costs.
The 2021 AIA report says that developing a high LOD, like LOD 400 or 500, can increase project costs by up to 20% during the planning stages, and even more for service-heavy projects like hospitals.
The time and resources invested to achieve this level of detail often lead to higher upfront costs, which are expected to be offset by future savings in construction and operations.
To gain insights about the operator, please refer to “What is a BIM Coordinator? Responsibilities, Skills, & Qualifications“
Benefits of Investing in BIM
BIM can be expensive upfront, but it’s a great investment for the construction industry because it has such high potential returns.
The benefits are huge. And BIM goes way beyond just saving money. BIM makes projects more efficient, helps people work together better, reduces risks, and boosts profits.
There’s no doubt that BIM can make projects much more efficient.
BIM can help you work more efficiently and communicate better, which can mean shorter project times and lower costs.
BIM helped us predict total project costs and labour costs more accurately, which shows how it can help us control costs better.
BIM also makes it easier for project teams to work together, even when they’re based in different locations.
BIM makes it better for everyone involved in a construction project to work together and stay on the same page when it comes to the documentation.
Being able to see the project in 3D and access real-time data makes it easier for everyone involved to understand what’s going on and make better decisions.
Another great thing about BIM is how it helps you to reduce risks. The tech helps us spot and avoid potential issues early on, which means less costly rework and delays during construction.
BIM helps to make the construction process go more smoothly and get better results overall.
All in all, these benefits add up to increased profitability. So, as well as the old-age question of how much a BIM system costs, we also need to think about the benefits it can bring.
The efficiency gains, risk mitigation and enhanced collaboration create a great environment for financial success.
BIM gives construction firms the power to deliver projects on time, within budget and to a high standard, which makes clients happy and helps them get repeat business.
How to Achieve Cost Efficiency in BIM Projects
Many firms are worried about making the move to BIM from traditional methods. They’re concerned about the costs, the learning curve, and the potential for workflow disruptions.
The challenge is made even more difficult by the complexity of managing large datasets, ensuring collaboration across different teams, and maintaining high-quality standards while adhering to tight deadlines.
So, at Interscale, we’ve got a range of services to help you avoid these issues.
Our team of experts has got it all covered. We plan, coordinate, and oversee the entire BIM process, making sure everyone’s on the same page and workflows are efficient.
What does all this mean for you?
Our strategic approach to BIM management helps your firm get over the common hurdles to adopting and implementing BIM.
By focusing on standardisation, training, and proactive management, we make sure you not only adopt BIM successfully but also do so in a way that works for your budget.
Actually, we’ve got lots to show you to convince you. But we need you to do your own checks and due diligence.
So, to get started, you can take a look at the Interscale BIM Management page and see what it’s all about.
Or if you’re ready with coffee and croissants, let’s grab a meeting. We’d love to discuss your BIM challenges.
In Closing
As BIM adoption continues to grow in Australia, it will be increasingly important for firms to educate their clients on the value of BIM in order to fully realise its benefits.
So how much does BIM cost? The answer is it depends. And the good answer is to demonstrate the potential benefits.
