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The Impacts of BIM on Cost Savings in Large-Scale Projects: A Guideline

The impacts of BIM on cost savings in large scale projects

Interscale Content Hub – The impacts of BIM on cost savings in large-scale projects is transformative. Why? Large-scale construction projects are complex, expensive, and riddled with potential for delays and overruns.

Building Information Modeling (BIM) is changing the construction industry for the better. How? BIM offers a set of tools and processes to streamline operations and significantly reduce costs. 

BIM also provides a comprehensive approach to design, planning, and execution that unlocks substantial cost savings.

So, rather than sugar coating things, it’s better to get into the nuts and bolts.

Cost Analysis of Large-Scale Projects Without BIM

Large-scale construction projects are incredibly complex, and unfortunately, they have a reputation for exceeding their budgets and timelines.

McKinsey & Company shows that projects often take significantly longer to finish, typically take 20 percent longer, and cost far more than originally anticipated, up to 80 percent over budget.

This holds across different construction sectors,  and it’s not unusual for projects to run at least 16% over budget.

So, what causes these cost overruns? Traditional project management methods often face specific challenges.

For instance, without a central source of information readily available, it’s incredibly difficult to generate accurate estimates for labor, materials, and equipment needs.

This leads to either overestimating or underestimating costs, which quickly becomes a budget problem.

Furthermore, when architects, engineers, and contractors aren’t working from the same updated data, it leads to communication breakdowns and costly errors that require rework.

Also, without the ability to effectively visualize the final structure, hidden design issues, like structural elements clashing with each other, might not be discovered until the construction phase.

These last-minute changes drive up costs and cause frustrating delays.

Additionally, poor planning often leads to wasted resources – materials may be over-ordered or underutilized, and labor isn’t always used efficiently. Both situations lead to increased costs and delays.

Finally, construction consistently ranks as a high-risk industry. Poor coordination and planning exacerbate these inherent safety risks.

The result? Potential accidents, delays due to injuries, and even financial penalties for safety violations.

How BIM Reduces Costs

A paper, “Effect of Building Information Modeling (BIM) on Reduced Construction Time-Sosts: A Case Study,” by Moh Nur Sholeh and colleagues highlights the challenges of traditional construction methods, which often lead to high costs, delays, and quality issues.

BIM offers a solution by integrating various aspects of a construction project from the very beginning to its completion. 

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A case study presented in the paper demonstrates that BIM can potentially reduce project time by 50% and construction costs by an impressive 52.36%.

These improvements stem from better coordination between different teams and the ability to identify and avoid errors much earlier in the planning stages.

It’s important to note that BIM adoption requires an initial investment in software and qualified personnel.

BIM solves the problems with traditional construction workflows by creating a digital environment where all the stakeholders can work together easily. Let’s discuss how.

Accurate Project Estimations

BIM can do the hard work for you when it comes to quantity takeoffs. It’ll extract material quantities directly from the 3D model, so you can be sure of getting accurate calculations.

This process uses the parametric properties of BIM objects to automatically count things like steel beams, concrete volumes, and piping lengths.

By linking the quantities to specific parts of the model, estimators can work out exactly what they need and avoid wasting materials.

BIM models can hook up with cost estimation software, so that any changes to the design get reflected in the budget.

Tools like Autodesk’s Cost Management or Trimble’s Vico Office can give you detailed cost reports by linking quantities to unit costs in a central database.

This lets you do dynamic budgeting, where any changes to the model are reflected in the updated cost estimates.

Improved Collaboration

A Common Data Environment (CDE) is basically a digital repository where all project information is stored and shared among stakeholders.

Systems like BIM 360 or Bentley ProjectWise keep track of model versions, documentation, and data access, so everyone has access to the latest information. This makes sure everyone’s on the same page and avoids any confusion. It also means less rework.

Also, coordination models bring together individual discipline models into a single, federated model.

Tools like Navisworks or Solibri let teams run clash detection analyses to spot physical conflicts between different systems, like structural steel and HVAC ducts.

If you can resolve these issues in the virtual model, you can save money by avoiding costly on-site modifications.

Efficient Resource Management

BIM models can be used to create 4D simulations that show how construction activities will be sequenced.

Software like Synchro or Navisworks Timeliner links construction tasks to specific model elements, which gives you a visual simulation of how the project is progressing.

This helps us spot scheduling conflicts, make the best use of our resources, and cut down on idle time.

5D BIM links cost data with 4D scheduling models to show how costs change over time.

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Tools like Vico Office or CostX give project managers the info they need to make smart decisions about resource allocation, procurement, and cost management.

Please refer toCommon Challenges with BIM Object Libraries & How to Overcome Them,” for details about common challenges that you will faces with BIM object.

Risk Mitigation

4D models can be used to incorporate safety measures by simulating construction sequences and identifying potential hazards.

For example, if you add in guardrails, safety nets, or exclusion zones, teams can see and deal with risks before they happen.

Also, BIM models can do compliance checks for you using software like Solibri Model Checker or BIMcollab.

These tools make sure that the models are up to code, so to speak. They validate against building codes, fire safety regulations, and accessibility standards, so you can be sure that everything is in order and that you won’t get hit with any penalties.

BIM and Improved Resource Management

One of the most significant advantages of BIM is its ability to generate highly accurate material lists, or quantity takeoffs, directly from the 3D model.

This level of precision translates to more informed procurement, less excess inventory, and ultimately, fewer materials ending up in the landfill.

As mentioned above, BIM can also optimize labor resources. By incorporating project timelines and schedules into the model (known as 4D BIM),  managers can visualize the construction process in stages.

This allows for better workforce planning, ensuring the right teams and workers are on-site when needed and minimizing delays stemming from labor shortages or idle time.

Additionally, BIM models allow for simulations of how and when heavy equipment will be needed across various project phases.

This leads to more precise equipment scheduling and reduces costs caused by unnecessary rental periods or equipment sitting idle.

Then, BIM’s detailed virtual model of the project enables teams to plan site logistics meticulously.

This includes everything from where materials are staged to how equipment is positioned and how efficient delivery routes are designed.

The result is a more organized construction site where workers and equipment can move more freely, reducing bottlenecks and ensuring an efficient flow throughout the project.

Just for your information, you can gain insights about incomplete BIM data in Here is Your Action Plan for Dealing with Incomplete BIM Data.”

Risk Reduction and Mitigation with BIM

One of the best things about BIM is its clash detection capabilities. This lets the software compare the 3D models for everything from structural components to electrical and plumbing systems and flag any areas of conflict.

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It’s way more efficient and cost-effective to address these clashes in the digital model than to make changes on the fly during construction.

BIM also helps keep workers safe. By adding safety info to the BIM model, along with timeline data in 4D BIM, safety officers can see potential hazards across different construction stages.

This virtual walkthrough helps us spot potential trouble spots and put together the right safety procedures for the workers on site.

Plus, BIM’s real-time visualization tools make it easier for everyone involved to understand the full impact of any proposed change.

This helps avoid misunderstandings that often lead to unnecessary and expensive change orders further down the line.

Furthermore, 4D BIM enables project managers to connect specific construction tasks to the overall timeline.

This makes it much easier to identify critical parts of the schedule and spot potential delays before they occur.

Also, BIM models can be configured for automatic checks against building codes and safety regulations.

This helps teams identify areas of non-compliance proactively – leading to a smoother project and significantly reducing the risk of costly fines or rework.

How Interscale Can Help You Save Money with BIM on Big Projects

First of all, we know that no two projects are exactly alike.

That’s why we’ll work with you to figure out your specific challenges and come up with a BIM strategy that offers targeted solutions.  So you can be as efficient as possible and get the most out of it.

Our team has lots of experience managing BIM projects of all sizes, so we’ll handle coordination, proactively identify potential conflicts, and find quick resolutions. 

We also look at ways to cut down on waste, make your workforce more efficient, and avoid costly rework. This focus on efficiency means we can keep costs down.

We’ve been working with K2LD Architects and have been able to streamline workflows and enhance project delivery. Our integrated BIM model helped us avoid conflicts and make sure everyone was on the same page.

Now it’s your turn to enjoy the benefits. But we want you to do a background check. For the first step, check out our Interscale BIM management service page.

If you have any questions or need to make an adjustment, just let us know. We’re here for you 24/7.

Conclusion

BIM has a significant positive impact when it comes to managing costs on large-scale construction projects.

Its ability to provide precise estimates, streamline collaboration among teams, optimize the use of resources, and minimize potential risks goes a long way in ensuring projects stay on time and within financial targets.

If you’re looking to harness these benefits for your next major project, Interscale can be a valuable partner in gaining the impacts of BIM on cost savings in large-scale projects.