2009 bim smart market report december

8/6/2019 2009 Bim Smart Market Report December

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Whos using BIM, and where are they getting the real business value? These are the

two questions we hear all the time. Like any innovation trying to gain traction, itsactual business benefits are what will make it successful. And their impact on usersbottom line is what will drive adoption. There are enough people now using BIM

that we can start to answer these questions.

That is the purpose of this SmartMarket Report: The Business Value of BIM.

By surveying thousands of AEC participants in North America from the full spectrum of roles anddisciplines we learned that:

I Almost 50% of the industry is now using BIM.

I All BIM users plan significant increases in their use.

I The vast majority are experiencing real business benefits directly attributable to BIM.

We asked nonadopters why they hadnt adopted BIM and what they will need to start. With users

we examined the many ways they are experiencing business value, from hard-nosed ROI calculationsto qualitative process improvements and enhanced project outcomes.

In addition, there are six in-depth case studies showing how BIM is solving real problems onactual projects. We also have special features, including closer looks at BIMs role with greendesign, marketing, infrastructure and industrial projects.

As we move ahead through uncertain times, the research clearly shows that BIM adoption willincrease, and we can expect new practitioners to build on the successes of earlier implementers,accelerating our industrys exciting transformation to a more productive digital project lifecycleenvironment.

We want to thank the many busy professionals who responded to our surveys and oursupportive partners who, by making this research possible, are tangibly expressing theircommitment to the improvement of the entire AEC industry.

Harvey M. Bernstein

Stephen A. Jones

Introduction

Norbert Young, FAIA, is a registered architect, with professional affiliations including The American Institute of Architectsand the International Alliance for Interoperability, where he served as Chairman of the IAI-NA Board of Directors and wasinstrumental in IAIs evolution into the buildingSMART Alliance at the National Institute of Building Sciences. A true leaderand innovator in his profession, Norbert is a strong advocate for the development and adoption of global standards for datato enable true interoperability in the design and construction industry. He is an active, recognized speaker nationally andinternationally, addressing such topics as Interoperability and Its Impact on Our Industry, and Current Trends in Interoper-ability. Norbert is a Fellow of The American Institute of Architects and in 2008 he was inducted into the National Academyof Construction.

Steve Jones leads McGraw-Hill Constructions initiatives in Building Information Modeling, Interoperability and IntegratedProject Delivery as well as developing alliance relationships with major corporations for technology and content. Beforejoining McGraw-Hill, Steve was a vice president with Primavera Systems, the world's leading provider of project manage-ment software. Prior to that, Steve spent 19 years in a variety of design and management roles with architecture firms. Mostrecently he was a principal and board of directors member with Burt Hill, one of the largest architectural/engineering firmsin the world. Steve holds an M.B.A. from Wharton and a B.A. from Johns Hopkins.

Harvey M. Bernstein, F.ASCE, LEED AP, has been a leader in the engineering and construction industry for over30 years. He serves as Vice President of Industry Analytics, Alliances and Strategic Initiatives for McGraw-Hill Construction,where he has lead responsibility for MHCs research on thought leadership and green building initiatives. This includesresearch studies on future industry trends in areas such as interoperability, BIM, the global construction marketplace sustain-ability and innovation. He also is a visiting professor at the University of Reading (UK) School of Construction Managementand Engineering. Harvey has an M.B.A in Corporate Marketing from Loyola College, an M.S. in Engineering from PrincetonUniversity and a B.S. in Civil Engineering from the New Jersey Institute of Technology.

John Gudgel currently serves as the Director of Industry Alliances. In this capacity, he is responsible for managingMcGraw-Hill Constructions relationships with both national and regional industry associations. He also produces and offersthought leadership on construction technology topics and has been the Editor-in-Chief of past SmartMarket Reports on BIM(2008) and Interoperability (2007). He has over 17 years of experience in technology project management in the computerand telecommunications industries. John has an M.S. in eCommerce from George Mason University, an MS in Telecommuni-cations from the University of Colorado and a B.S. in Geological Engineering from the Colorado School of Mines.

Norbert W. Young Jr.

John E. Gudgel


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Table of Contents

Imagescourte

syofMortensonConstruction

IntroductionSmartMarket Report Executive Summary .........................4

Overall Value of BIM .....................................................................6

Case Study: Research 2........................................................................10

Industry Issue: Impact of BIM on Productivity..................................12

Industry Issue: Return on Investment in BIM....................................13

Internal Business Value of BIM............................................14

Industry Issue: Impact of BIM on Marketing.....................................18

Case Study: Texas A&M Health Science Center.............................19

Project Value of BIM...................................................................20

Case Study: Sutter Health Medical Center ......................................24

Industry Issue: BIM and Green Building............................................26

Case Study: Virtual Mock-Ups.............................................................27

Player Value of BIM.....................................................................28

Software Industry Perspective .............................................................35

Adoption of BIM............................................................................36

Case Study: Department of Energy....................................................43

Industry Issue: Opportunities and Obstacles for Engineers .........44

Case Study: BIM on Heavy Civil Projects.........................................46

Conclusions.....................................................................................48

Resources ........................................................................................50

Methodology ...................................................................................50

Cover images provided byBryan Christie Design


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Do Not Measure Measure

Negative

Break even

Less than 10%

10-25%

25-50%

50-100%

Over 100%

0

20

40

60

80

100

Perceived ROI Versus Formally Measured ROI

21%

26%

17%

17%

10%

3%6%

14%

14%

15%

25%

13%

10%

9%

SmartMarket ReportExecutive Summary

Better Than Expected ValueReturn on investment can be calcu-lated in various ways, but those whotake a data-driven approach see moreupside to BIM. Users who formallymeasure their ROI report better re-turns than those who estimate ROIbased on perception.

I Seven in ten BIM users who

measure ROI see positive returns,compared to half of those who onlygo by their perception of value.

I One in five BIM users who meas-ure ROI see returns greater than

50%double the perceived value.

Competitive AdvantageBIM is seen as a way to get a leg upon the competition. This is particularlytrue among less experienced userswho are promoting a new service.

IMarketing new business to new

clients is the top rated businessbenefit of BIM.

I Half of users say offering newservices with BIM is a significantbusiness benefit.

I Two-thirds of users say BIMs ability

to help a company maintain repeatbusiness with past clients bringsat least a moderate level of value.

Improved ProductivityBIM creates efficiencies. Users realizesome of the greatest value of BIMthrough its potential to cut down onrework, such as rekeying informationinto models or making changes in thefield. As users become more proficient,the opportunities to improve productiv-ity are more pronounced.

I Reducing rework is the highest-rated business benefit amongexperts. Four in five experts say

it brings high to very high value,compared to 23% of beginners.

I The potential of BIM to improveproductivity is ranked by architectsas the top way to improve their returnon investment in the technology.

I Reduced conflicts and changes

during construction are amongthe top rated ways engineers sayBIM adds value to a project.

I Clash detection and avoiding

rework are the top rated ways own-

ers say BIM saves time and money.

BIM DefinedFor purposes of this report, McGraw-Hill Construction defines BIM as: Theprocess of creating and using digi-

tal models for design, construction

and/or operations of projects.

Reaping Higher Returns During Lean TimesEven as the design and construction industry confronts a down economy, most BIM users are seeing positive payback fromtheir use of the technology, according to McGraw-Hill Construction research. Users gain bankable benefits that enhanceproductivity, improve their ability to integrate teams and give them an edge on the competition. The value from BIM growsas users gain experience, offering them an opportunity to reap greater returns even during an economic recession.

Key Findings

I Two-thirds of BIM users say they see positive ROI on their overall investment in BIM.

I 87% of expert users are experiencing positive ROI with BIM.

I 93% of BIM users believe there is potential to gain more value from BIM in the future.

Source: McGraw-Hill Construction, 2009


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Investing in the TeamUsers recognize that BIM brings buildteams together. Whether they aim toseamlessly exchange project data or

communicate ideas more effectively, BIMadds additional value when used to inte-grate project processes. Likewise, obsta-cles that affect teamwork rank among thegreatest challenges faced by users.

IBetter multiparty communication

and understanding from 3D visuali-

zation is the BIM benefit rated mostlikely to improve ROI. 80% of usersgive it high to very high importance.

I Improved project process out-

comes, such as fewer RFIs and

field coordination problems, is thesecond-highest rated way to improvevalue with BIM. Communication of proj-ect data is critical to meeting this goal.

I The number of BIM-knowledgeable

companies on a project is a toprated factor affecting value on a proj-ect. Three in four users see this ashighly to very highly important.

I Presentation and visualization of

architectural design is the top taskthat benefits owners during a project.

Owners also say improved collectiveunderstanding of design intent is thetop way that projects can gain value.

Obstacles

I Improved interoperability between

software applications is the top in-dustry improvement that will increaseBIM value.

ISeventy percent of users say moreclearly defined BIM deliverables

between parties is highly tovery highlyimportant to increasing the value of BIM.

RecommendationsIBeginners: Value is on the hori-

zon. New users see limited valueinitially, but additional opportunitiesmaterialize with experience.

INon-Users: Dont delay yourdecision. BIM users are seeingpositive returns today and expect

those benefits to grow over time.Delaying adoption will leave youfarther behind.

IOwners: Take charge. A large ma-jority of owners recognize that BIMis valuable, and AEC companies sayclient demand is a top motivatingfactor in the decision to use BIM. Ifyou demand its use, firms will follow.

ISoftware companies: Speeddelivery of solutions. Users havequickly gained experience andbecome acutely aware of software

interoperability and functionalitylimitations. Tools need to keep pacewith rising demand.

IAll users: Dont hold back. Thegut reaction in a down economy isto cut back. BIM is a tool that helpsexperienced users find value. Con-tinue to invest today or else you mayfind yourself behind the competitionwhen market conditions improve.

Owner DemandOwners see that BIM creates value.

I 70% report positive ROI from BIM.

I

Lower project cost is among the toprated ways users expect BIM to bringhigh value.

IHalf of owners say overall betterconstruction project outcomes is asignificant benefit of BIM.

The AEC community looks to clientswhen deciding to use BIM:

I Not enough demand from clientsis the top rated reason non-users havenot adopted it.

I Seven in ten non-users say ownersdemanding BIM use on projects

would significantly impact their deci-sion to adopt BIM.

Rapid AdoptionBIM has quickly gained momentumthat is expected to continue in thecoming years.

IHalf of the industry is using BIM orBIM-related tools today. This repre-sents a 75% increase in usage inthe last two years.

I 42% of users are at an expert oradvanced levelthree times theamount reported in 2007.

I Half of contractors report using BIMor BIM-related toolsfour timesthe level reported two years ago.

I Two-thirds of experts use it on morethan 60% of their projects today.

I One-third of all users utilize BIM on60% or more projects today, buttwice as many expect to be using

it at that level in two years.

I 42% of non-users believe that BIMwill be highly or very highly impor-

tant to the industry in five years.

I Nearly half of non-users havent triedBIM, but are open to exploring itspotential value.

Fewer Legal IssuesIn past studies, users raised concernsabout legal issues, such as liability in anenvironment of open data exchange. As thelegal framework for working in BIM has de-veloped, those concerns appear to befading.

I Two-thirds of non-users say concernsabout liability have little to no

impact on their consideration of BIM.

All Respondents2009

2007

48%28%

Growth in BIM Use

Importance of BIM

in 5 Years

Very high importance

High importance

16%

Moderate importance 39%

Low importance

31%

No importance

11%

3%

Source: McGraw-Hill Construction, 2007, 2009



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Overall Value of BIM

BIM Reaps ReturnsBIM is paying off for a solid majority ofusersparticularly the most experiencedones. Whether its through budget itemsthat can be tracked or less tangiblebenefits, BIM users largely believe thatthey are experiencing a positive returnon investment. Nearly two-thirds (63%)of BIM users say they see positive

ROI on their overall investment in

BIM, with 15% reporting an ROI of

50% or more. Another 20 percentbelieve they are breaking even.

ROI Exceeds EstimatesThe ROI for BIM is higher than manyusers think. Users who formallymeasure their ROI on BIM using

project data report higher returns

than those who estimate returns

based on perceived outcomes. Halfof those who do not formally track ROI(53%) perceive that they garner positiveresults, while three-quarters of thosewho do measure ROI (72%) report posi-tive returns. BIM is shown to provide abroad range of opportunities to realize

value, and those who formally measureit may see a more complete pictureregarding returns.

I One in five users who formally

measure ROI see returns above

50%, twice the rate of those who dontmeasure it.

I 9% of users who formally meas-

ure ROI see returns above 100%,compared to 6% of those who dontmeasure it.

Perceived ROI by Experience Level

Negative

Break even

Less than 10%

10-25%

25-50%

50-100%

Over 100%

0

20

40

60

80

100

ExpertAdvancedModerateBeginner

33%

29%

18%

11%

3%

2%

4%

19%

25%

21%

19%

10%

3%

3%

8%

13%

12%

30%

17%

10%

10%

5%

8%

9%

23%

16%

19%

20%

Overview: The Value Proposition of BIMFor champions of building information modeling, the value proposition is clear.The vast majority of users report seeing positive returns on their investment

in BIM. For the time and expense put into making BIM part of their practice, usersgain a range of benefits that could include improved productivity, enhanced

quality, increased opportunities for new business and overall better project

outcomes. The more benefits a user reaps, the higher the perceived value.

The benefits gained from BIM are greater than many users believe. Those whoformally measure ROI on BIM report higher returns than those who estimate returnsbased on perception.

With experience, users can see more value. Experts prove that, as users gainproficiency, they will find ways to leverage the technology to their benefit. Given that

BIM is still an emerging process, this trend should gain momentum as more usersmaster it and software providers develop additional tools.

I 63% of BIM users say they see positive ROI on their overall investment in BIM.

I 72% of users who formally measure their ROI on BIM report positivereturns, compared to 53% of users who estimate returns based on perception.

I 87% of expert users see positive ROI with BIM compared to 38% of beginners.

I 93% of BIM users believe that, compared to today, there is potential to gain morevalue from BIM in the future.

Experience Yields ResultsUsers report that they realize significantlybetter ROI as they gain experience withthe technology. Eighty-seven percentof expert users see positive ROI with

BIM compared to 38% of beginners.

The progression is a steady one. Many oftodays beginners can expect to see bet-ter results over time as they deepen theirknowledge and use of the technology.



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OwnerContractor

EngineerArchitect

Perceived ROI on Overall Investment in BIM

19%

23%

13%

19%

14%

7%

5%

32%

22%

22%

11%

6%

2%

4%

13%

16%

17%

27%

11%

8%

10%

5%

25%

16%

34%

7%

2%

11%

NegativeBreak evenLess than 10%

10-25%25-50%50-100%Over 100%


User Differences

I Contractors see the highest ROI,

with seven out of ten (71%)

reporting positive results.Contractors are likely to see moretangible benefits, such as savingsrealized through clash detection.Because BIM was initially developedwith a focus on designers, contrac-tors as a group are relatively new tothe technology and its expandingrange of tools. The fact that so manycontractors see positive results todaysuggests that additional value couldbe realized in the future as they gainmore experience.

I Owners are as likely as contrac-

tors to see a high ROI with seven

out of ten (70%) reporting positive

results. As the ultimate client, ownersrealize the combined benefits from allteam members that experience posi-tive ROI. The fact that a large majorityof owners believe BIM yields positiveresults bodes well for expansion ofBIM use in the coming years. Teammembers say client demand is theprimary driver for adoption of BIM.

If owners ask for it, team memberswill follow.

I Around six in 10 architects (58%)

using BIM see positive ROI. Asdesigners, they experience less of thedirect cost savings seen in the fieldand realize many intangible benefitssuch as improved coordination ofdrawings and documents.

I Less than one half of engineers

(46%) experience positive ROI

when using BIM. One-third of users

say they see negative ROI. Engineerssay they are less likely to see savingsin time and costs from BIM than otherteam members. These views can dif-fer by discipline (see Player Valuechapter). Many engineers also reportthat BIM does not have sufficientfunctionality for their practice. Expan-sion of the technology offerings forengineers could help improve theiroutlook on its value in the future.

Key FindingsI Most users see positive ROI in BIM.

I Returns improve with experience.I Owners and contractors see the highest returns on BIM.

I Nearly all users believe there are greater future opportunities to gain valuefrom BIM.

I Top rated areas of BIM investment: 1) software, 2) developing internalcollaborative BIM procedures, 3) marketing a firms BIM capability,4) BIM training, 5) new/upgraded hardware

Editors note: Return on investment figures from survey results reflect respondentsperceived ROI and are not the result of a prescribed approach to calculation.


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Where Users InvestGaining BIM capabilities and expertiserequires investments in a broad range ofproducts and processes. These areas of

investment change over time, assome initial investments take a back-

seat to ones that will deepen a users

BIM competency. Contractors are themost likely to see a need to focus onnearly all areas of investment, today andfive years from now. Owners report littleneed to focus on BIM investments today,but see rising demand within five years.

Areas of BIM Investment

I BIM software. Software is the toolthat drives building information model-

ing. Architects and contractors leadthe way, with half focusing on softwareinvestment. As software is an initial costof entry to BIM, beginners rankit as their highest-priority investment,while experienced users rank it lower.A large percentage of expert users(68%) say software is a primary focus,but more as a continuing investment.Half of all users expect software to be apriority investment in five years, but lessof a focus compared to other options.

I Developing internal collaborativeBIM procedures. Creating a collabo-rative BIM environment is always apriority. Half of architects and con-tractors focus on investing in theseprocedures today, and at least half ofall users say the development of theseprocedures will be a significant focusin five years. This is a top rated priorityfor the most experienced users, butless for more recent entrants.

I Marketing your BIM capability.

As an emerging technology, BIM isgenerating a buzz. Many firms (43%)focus on investing in efforts to makesure clients are aware of their BIMcapabilities. A large majority (69%)of experts are eager to marketthemselves as such, while fewbeginners (18%) are ready to pro-mote their BIM readiness. In fiveyears, all users expect marketing tobe the highest-priority investment,including todays beginners.

Quantifying ResultsIn order to better understand the potential of BIM, many users have made formallymeasuring ROI a part of their internal processes. Tracking ROI on BIM projects can bea tricky proposition. Although possible, (see Research 2 Case Study) the numer-

ous variables and unique aspects of every project typically make it a challengeto compare results of one BIM project to a similar completed project where

BIM wasnt used. Users often need to gather a wide range of data from varioussources and have a sufficient library of data on similar projects that can be used forcomparison. As more industry-standard metrics are developed, the ability to track ROIcould improve in the coming years.

Level of Measurement

Half (54%) of B IM users formally measure ROI on BIM. Few users (13%)measure it on a majority of BIM projects. This reflects the challenge posed whenusers search for measurable and comparable data. Architects are most likely to for-mally measure ROI. Engineers are least likely to measure it. Although experiencedusers are far more likely to measure ROIwith at least two-thirds doing so compared

to 40% of beginnerseven these experts are not currently tracking it on more than30% of their projects.

Experience

Measuring ROI on BIM is an emerging skill. The majority (77%) of those formallymeasuring ROI on BIM have been doing so for two years or less. Logically,those with more experience have been tracking it longer, with nearly half of expertssaying they have measured ROI for more than two years.

Future Outlook

Many who do not formally track ROI are open to doing so in the future. Two-thirds ofthem say they probably will in the future (39%) or havent decided if they will (27%).Those with more expertise with BIM are most likely to indicate that they will

probably never measure their ROI if they have not been doing so thus far.These users have made the decision to pursue BIM and dont need more definitiveproof of its value.

All Respondents

Percentage of Projects on Which BIM ROI Is Measured

None

Less than 25%

25-50%

50-75%

75-100%

46%

34%

7%

6%7%



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I BIM training. Training is a criticalinvestment, particularly for new users.Less experienced users rank training

among their highest priorities, while itis comparatively less important foradvanced users. In five years, trainingwill be a strong focus for half of allusers, but a lower priority than otherinvestments. Two-thirds of contrac-tors expect it to be a strong focus,while less than half of other users seethat in their own practices.

I New/upgraded hardware. Someusers (37%) focus on addressinghardware issues, but it is less of apriority than other possible investmentareas. All users believe this will betrue in the coming years as well.

I Developing collaborative BIM

processes with external parties.

Establishing a collaborative environ-ment among team members is by farthe highest-priority investment forowners today. As many owners lookto other team members to generateBIM content, they are acutely inter-ested in the ability to work with thatdata. It also reflects owners desire for

teamwork. Experts also rank thisamong their top priorities, showingthat they have moved beyond devel-opment of basic internal processesand now are looking to integrate withothers. All users say collaborationwith other team members will beamong their highest-priority invest-ments in five years.

I Software customization/interop-

erability solutions. When softwareprograms or platforms are incompati-

ble, productivity in the BIM world cansuffer. However, few users say theyare making significant investmentstoward solving such issues.

I Developing custom 3D libraries.

Investment in developing custom 3Dlibraries is most important to thedesign community, but even thoseplayers rank it among their lowestpriorities.

Value on the HorizonA majority of BIM users say they see value in BIM today, but the full potential ofits benefits has yet to be realized. Very few BIM users say they are gettingeverything out of BIM that they believe it can provide.

Most of the remaining users are evenly split between those saying they aregetting a great deal of value out of BIM but believe there is more to be gained(45%) and those who believe they are just scratching the surface of what BIMcan provide to them (48%).

Experience weighs heavily in users accounting of the business value of BIM.Eighty-eight percent of experts believe they are either getting everything

out of BIM that they can, or that they are getting a lot of value compared

to only 9% of beginners.

User Differences

I A majority of contractors (52%) already see value in BIM and believemore can be gained. They are the most likely group to believe this.

I Although seven in ten owners say they are experiencing positive ROI today,a majority of them (61%) believe they are just scratching the surface whenconsidering the value of BIM. They are the most likely group to believe this.

I Six in ten architects report seeing positive ROI on BI M. A third of thoseclaim returns in the 10-25% range, and half claim greater than 25%. Only2% feel they are currently experiencing its maximum value.

I Engineers are the most pessimistic about the value of BI M, with 12% say-ing they see no meaningful value from it. Around three in five engineers saythey are just scratching the surface when considering the value of BIM. Inpart, this represents the struggle of engineers to find sufficient BIM contentor functionality of software for their purposes. As software development

catches up with demand, this attitude would likely change.

All Respondents

Level of Business Value of BIM

We're getting no

meaningful value

from BIM

We're just scratching

the surface of how much

value BIM can provide us

We're getting a lot of value

from BIM but believe there

is more to be gained

We're getting everything

out of BIM that we believe

it can provide us4%

48%45%

3%



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Case Study:Research 2

In building the $201 million Research 2project for the University of Colorado-Denver Health Sciences Center,Mortenson Construction of Minneapolisended up developing a research projectof its own. The 11-story 540,000square-feet biomedical facility was afollow-up to the similar 650,000square-feet Research 1 tower built by adifferent contractor on an adjacent siteat the UCDHSC Anschutz MedicalCampus in Aurora, Colorado. The R2project, as it came to be known, pre-

sented Mortenson with a rare opportu-nity to compare its performanceagainst data from R1. The exercise en-abled Mortenson to quantify the poten-tial upsides of BIM and expose thechallenges of finding usable perform-ance metrics.

When Mortenson was selected for R2in 2003, the company had employed vir-tual design and construction on severalprojects, but lacked hard performancedata. Despite this, the company believed

it could deliver benefits on complexprojects, says Derek Cunz, director ofproject development at Mortenson.

We knew going into this job that R1had problems dealing with the verycomplex mechanical systems and mak-ing things fit, he recalls. R2 would be

just as complex and we knew we coulddo better with BIM.

In order to better leverage the benefitsof the technology, Mortenson pursuedan integrated approach, engaging early

with the design team, led by Denver-based Fentress Architects. The designteam, which also designed R1, hadnever included a general contractor inearly virtual coordination before. Theteam worked together on a nearly two-year design and preconstructionprocess to fine-tune how data would beshared, how subcontractors would beprocured, and how the models wouldbe used all the way through the project.

Owner Involvement

The owners team was also asked forearly input. The design called for multi-ple complex systems to be packed intotight spaces. Instead of focusing onlyon construction coordination issues,the team brought in owner representa-tives to ensure that the project wouldalso be maintenance-friendly uponcompletion.

BIM was used throughout mostphases of the project, ranging fromwork planning for concrete placementto 3D MEP coordination to assemblyinstruction models.

Since integrated virtual design andconstruction (VDC) was not in the R2contract and the approach was new tothe designers, the team had to addressmodel ownership issues for liabilityreasons. Mortenson verified the accu-

racy of the designers model for con-structibility issues and then took own-ership of the model when constructiondocuments were complete.

Although significant planning and veri-fication took place up front, the teamstarted to see significant time savingsonce the construction model tookshape. The structural engineers, Martin& Martin Engineers of Lakewood, Col-

orado, were able to transfer the 3Dstructural-steel design model to thesteel subcontractor, LPR Constructionof Loveland, Colorado. LPR thenturned around 3D shop drawings forreview in one package. The structuralengineers, who had never received asingle submittal all at once before,were able to speed through review andapprove it for fabrication. This con-tributed to the structural steel beingerected six weeks ahead of schedule.

Research 2, Aurora, ColoradoImagecourtesyofMortensonConstruction


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orders compared to R1. As a result,Cunz estimates that the team was ableto save enough in administrative costs to

more than cover the cost of using BIM.Schedule Improvements

Significant schedule gains were alsorealized. When completed in June2008, the R2 project was two monthsahead of schedule and six monthsahead of R1. In addition to a reductionin rework enabled by early coordinationefforts with BIM, Cunz also credits 4Dsimulation during the job for helpingimprove the schedule. The mechanicalsub, U.S. Engineering of Denver, esti-

mated a 50% reduction in labor and a50% reduction in schedule thanks tothe VDC approach.

Mortenson was aiming to extract asmuch hard data as possible to quantifyits results, but Cunz admits that pro-ductivity was tough to gauge. In orderto do a full schedule analysis, Cunzsays analysts would need to take adeep look at data from project to proj-ect, such as manpower by trade.

You cant quantify definitely that BIM

saves time because the only way to dothat is if you had every hour of everycraftworker mapped, he explains.Wed like more information on exactdollar values with change orders,schedule and productivity, but everyoneprotects their production rates. Thatmakes it hard to do. The subcontrac-tors wont share their companys pro-ductivity factors, because thats part oftheir competitive advantage. Its hard toget true metrics.

Regardless, Cunz says its important forcompanies to track performance dataon BIM projects to understand its trueimpact on their own business and theteam as a whole.

Contractors are too busy building totrack all of the data, he says. We werefortunate to have a student help us.Those kinds of partnerships are bene-ficial. You have to find a way to getyour arms around this stuff.

Evaluation Opportunity

By the time the team was halfwaythrough construction in mid-2007, the

execution was already paying off. A vari-ety of design and construction teamswere building multiple projects on thecampus at the time, and Cunz says theowners noted that R2 was outperform-ing those other projects, none of whichwas using BIM. Specifically, the ownernoted that R2 was doing better than R1.

He told us that our change orderswere much lower than R1s were at thesame point in the job, he recalls. Helaughed and said, I just thought yourproject manager was behind in submit-ting them.

Both parties were intrigued by the dif-ferences between the similar projectsand together they hatched a plan tobetter quantify the results. ThePasadena, California, firm Jacobs,which served as program manager ofthe R1 and R2 projects, was able toprovide access to the change orderlogs, request for information logs, thecritical path method schedule andother relevant data from both jobs.

A University of Colorado graduate stu-dent conducted independent analysisof the data. Cunz says the student readevery RFI and classified whether or noteach was related to issues that couldbe resolved with BIM. At that point, the

job was nearly 75% complete, allowingthe student to break the analysis intoperformance by phase.

The study spotlighted a range of sav-ings and benefits on the R2 projectcompared to R1. Through use of BIM

in VDC, more decisions were madeearly in the project, causing an in-crease in RFIs during preconstruction.However, the early VDC review duringdesign led to a reduction in construc-tion RFIs of 74% during the founda-tion phase and 47% during the steelerection phase.

Overall, R2 experienced a 37% reduc-tion in coordination RFIs and a 32%reduction in coordination change

ImagescourtesyofMortensonConstruction

Shown above, layers of complex systems thatsurround the vivarium in the Research 2 towerat the University of Colorado-Denver HealthSciences Center campus in Aurora, Colorado.


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Industry Issue:Impact of BIM on Productivity

Building information modeling could

play a vital role in improving construc-tion productivity, according to a 2009study commissioned by the NationalInstitute of Standards and Technology.The report, titled Advancing the Com-petitiveness and Efficiency of the U.S.Construction Industry, examines con-cerns over lagging productivity andrecommends ways to reverse the trend.

Widespread deployment and use ofBIM is one of five breakthrough op-portunities outlined in the study that

could improve efficiency and productiv-ity in two to 10 years. The report notesthat BIM is particularly beneficial be-cause it is intended to be interoperableamong all team members, enablingmodeling techniques and processesthat integrate design, production andoperations activities.

Fears that inefficiency is costing own-ers and construction firms billions ofdollars annually have fueled the pro-ductivity debate in recent years. A2004 analysis by Dr. Paul Teicholz ofStanford University suggested thatconstruction labor productivity declinedby nearly 20% between 1964 and2003, while other non farm industriesimproved by more than 200%.

The report also claims BIM could helpimprove the quality and speed of project-related decision making; manage supplychains; sequence workflow; improve dataaccuracy; reduce time spent on dataentry; reduce design and engineeringconflicts and subsequent rework; and

improve lifecycle management of build-ings and infrastructure.

The report culls research from severalother studies that have shown howprojects with interoperable technologycan yield better results than projectsthat dont utilize it, especially cost andschedule improvements.

Other breakthrough opportunities sug-gested in the study include:

Improved jobsiteefficiencythrough moreeffective interfacing of people, processes,materials, equipment andinformation

Greater use of prefabrication, pre-assembly, modularization, and off-sitefabrication techniques and processes

Innovative, widespread use of demon-stration installations

Effective performance measurement todrive efficiency and support innovation

BIM could help make many of the re-ports other recommendations a reality,says Ted Kennedy, founder of theBirmingham, Alabama, firm BE&K andthe study committee chairman.

BIM is a catch all in a lot of ways, hesays. It allows us to address many ofthe issues we have in improving pro-ductivity.

Kennedy notes that BIM could helpmultiple team members communicateproject information effectively, therebyimproving jobsite efficiency. Data frommodels could also be used to aid inprefabrication and preassembly.

Kennedy adds that models of com-pleted projects could provide a detaileddatabase of project information for usein performance measurement, as datafrom one project is benchmarkedagainst others.

The committees goals arent withouttheir challenges. While BIM is envi-sioned as interoperable, data does notalways flow seamlessly between thevarious software applications used inthe industry today. A 2004 NIST studyraised concerns over the issue, esti-mating that a lack of interoperabilityled to $15.8 billion in annual losses.

The report points to efforts by industrygroups, including the buildingSMARTAlliance, to make software more inter-operable and suggests that with con-certed effort, those challengescan besolved in two to five years.

Perhaps the most daunting task isgetting the highly fragmented con-struction industry to make a collectiveeffort to seek solutions, Kennedy says.

People get used to their own systems

and processes, he says. It will take awhile to get people to change theirmethods.

Other barriers mentioned to the wide-spread deployment of interoperabletechnologies include legal issues, data-storage capacities, and the need forintelligent search applications to sortquickly through thousands of data ele-ments and make real-time informationavailable for on-site decision making.

Constant $ of Contracts/Workhours of Hourly Workers

Sources: U.S. Dept. of Commerce, Bureau of Labor Statistics

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004

Construction Productivity Index

Non-Farm Productivity Index

Chartcourte

syofPaulTeicholz


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13

Effect of BIM Use on Project Profitability

Increase

Dont know

No change

Decrease

40.9%

27.7%

19.5%

11.9%

Industry Issue:Return on Investment in BIM

Many of the issues covered in this

SmartMarket Report were also exploredin a study by Burcin Becerik-Gerberand Samara Rice at the University ofSouthern Californias Department ofCivil and Environmental Engineering inearly 2009. The teams report, titled ABenchmarking Study on the Use andValue of Building Information Modelingin Architecture, Engineering and Con-struction, discussed the costs andbenefits of using BIM. The focus wason the most tangible benefits that couldbe most definitively tracked. In providingdata, the respondents were asked toreference one particular project thatthey had completed, rather than lookingat a body of work.

Costs

Most firms handle BIM duties in-house.The study shows that relatively littleis being spent on outside BIM consult-ants, with 59% saying that no consult-ants were hired at all. Nineteen percentsaid consultant hiring added less than

1% to total job cost. Ten percent said itequaled between 1% and 2.9% of totaljob cost. Contractors and constructionmanagers were more likely to outsourceBIM work than architects and engineers.

A large portion of respondents saidBIM use had no impact on staff or of-fice space requirements. A majority(59%) said office space needs wereunchanged by using BIM, while 11%said they used less space and 9%required more. While 41% said staffingneeds were unchanged by BIM use,

21% reported needing less staff.Thirteen percent needed more staffto work in BIM.

The majority of respondents spent lessthan 0.5% of overall net revenue onsoftware, software upgrades, hardware,hardware maintenance and training.Comparatively, hardware contributedthe most costs, with 39% saying itadded between 0.5% and 1.49%, fol-lowed by software (34% in that range).

The vast majority of firms are absorbing

each of these costs, while roughly one inten pass the costs on to owners throughfees. Around 3% to 4% said the ownerprovided the items or services to them,therefore covering these costs directly.

Benefits

BIM has a largely positive impact onproject schedule and costs, accordingto the report. A majority of respondents(55%) said BIM helped cut projectcosts, with 39% saying costs were re-duced by up to 25%. Three in ten saidBIM made no change in project costs.

Schedule impact was even more pro-nounced, with 63% saying schedulewas reduced. Forty-five percent saidschedule was reduced by up to 25%,while 28% of respondents said therewas no change to schedule.

While most saw overall schedules re-duced, there were differences overwhen those savings were realized.When asked about changes in projectphase durations because of BIM use,respondents generally showed work in-creasing early in the life of a projectand decreasing later. Respondentswere more likely to say BIM added timeto the schematic design and conceptual

design phases, with 20% saying it in-

crease duration by up to 25% and 13%saying it was between 25% and 50%.

As the project shifted to detaileddesign, respondents were more likelyto see time begin to decrease, with26% saying duration dropped by up to25% and 16% saying it dropped be-tween 25% and 50%. The majority(58%) said time was saved duringconstruction, with 41% saying ittrimmed duration by up to 25%.

Printing, document shipping and travel

costs were generally reduced or un-changed when using BIM instead oftraditional processes. Around half ofrespondents reported no change inthese categories. Nearly all otherrespondents said these costs werereduced, typically by 25% or less.

Returns

When adding it all up, respondent weremost likely to report that project prof-itability increased as a result of usingBIM. Two in five respondents (41%)

said that their project profitability in-creased, while 12% said it decreased.

ChartcourtesyofBurcinBecerik-Gerber



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Top Rated Ways BIMSaves Time and/orMoneyIAvoiding rework/changes

IConflict avoidance/resolution

I Increased productivity/efficiency

Internal Business Value of BIMBusiness BenefitsWithin their own practices, BIM userssee numerous opportunities to realize

value. Since BIM is an emergingprocess that has started to capture

the attention of the building commu-

nity at large, users are eager to bank

its buzz. Marketing and the ability topromote new BIM-related services areamong the top benefits reported. Thesense that BIM creates an overall betterproduct is also very beneficial.

Productivity issues, such as reducingrework and errors, ranked higher thanbenefits related directly to time savings

and cost reduction. This reflects thefact that users of all levels could seeBIM as helping them work better, butcost savings are more likely to be real-ized by experienced users.

Top Rated Business Benefits

1) Marketing new business to new

clients. BIM opens doors for compa-

nies in the built environment. Asmore clients begin to require BIM on

jobs, team members need to have BIMskills to capture that business. On the

flip side, companies can also introducethe technology to new clients that arentrequiring BIM and use it as a marketingfeature to get a leg up in their bid toland a job. All team membersotherthan owners who are also clientsratethis as a top benefits. This is particu-larly true for less experienced users

who are promoting this new skill.

Experts believe it is important, but lessthan some other top benefits.

2) Overall better construction project

outcomes. Half of owners (48%) say

that BIMs impact on the overall

project outcome is a high benefit

Relative Importance of Internal Benefits

Marketing new businessto new clients

Overall better constructionproject outcomes

Reduced errors and omissionsin construction documents

Offering new services

Reducing rework

Maintaining repeat businesswith past clients

Younger staffs learning of howbuildings go together is improved

Reducing cycle timeof specific workflows

Reducing overall project duration

Reduced construction cost

Increased profits

Recruiting and retention of staff

Fewer claims/litigation

0 20 40 60 80 100

49%27%22%2%

48%25%25%2%

47%28%21%4%

47%27%24%2%

45%27%25%3%

36%28%31%5%

31%30%33%6%

31%32%34%3%

27%29%41%3%

25%32%37%6%

21%71%46%2%

21%30%43%6%

20%26%40%14%

Did Not Answer None/Low Moderate High/Very High


Overview: Internal InterestsBeyond simply keeping up with industry trends, BIM users are looking for repeatablebusiness value from their investment in the technology. The payoff could come in

the form of improved staff productivity, increased profits or new businessopportunities for the company. But internal business benefits arent gainedovernight. With experience, users begin to see how BIM can offer considerablevalue to their companies.

I Experts are three to four times more likely than beginners to see a high level ofinternal benefits.

I Eight in ten experts say reduced rework brings high to very high value.

I Half of all users say marketing new business to clients brings significant value.Seven in ten experts believe this.


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Top Rated BenefitsOther Than Saving Timeor MoneyI Better understanding of project

in any/all stages

I Better collaboration

I Visualization

15

for them. Owners who are less experi-enced with BIM see this as their topbenefit, while expert owners rank it

slightly lower. The internal value of thisto the other build team members isexperienced as reduced problems,improved client relationships and morepersonal satisfaction.

4) Reduced errors and omissions

in construction documents. Virtual de-sign and construction with BIM createsthe potential to identify problems earlierin the building process. With interopera-ble exchange of models and data,

team players can better ensure that

information is complete and accu-

rate. Half of all users (47%) see this asa significant benefit, particularly contrac-tors. More experienced users recognizeits value compared to others.

3) Offering new services. BIM is away to bring new offerings to an oldbusiness. Many users (47%) sayadding BIM to their toolbox brings a

high level of benefit to their prac-

tices. Naturally, this is more importantto more recent adopters of the technol-ogy. Contractors, who as a group have

adopted BIM later than many in the de-sign community, are far more likely tosee this as significantly beneficial.

5) Reducing rework. Fixing problemsearly means fewer issues in the plansand ultimately fewer hassles in thefield. A majority of contractors(57%) see the potential of BIM to

reduce rework as a significant ben-

efit. This is the highest-ranked benefitreported by expert users (77%), com-pared to fewer beginners who see it

that way (23%).

Resetting Project DeliveryIn 2007, the Weitz Company beganan ambitious Plan for 2013 to resetits project delivery processes over sixyears by leveraging the benefits of vir-tual design and construction withinthe principles of lean construction.COO Len Martling saw that reducingwaste and rework would add signifi-cant competitive advantage.

Vice President Mike Sullivans Opera-tional Excellence (OE) group beganencouraging a cultural shift from the

typical heroic problem solving, to prob-lem seeking that identified riskier as-pects of projects and developed toolsto address them much earlier.

Bruce Cousins, Weitzs senior man-ager of VDC, worked with field per-sonnel to find specific ways BIMcould cut costs, optimize scheduleand reduce risk. Cousins scored earlysuccess by modeling the embeds ona self-performed concrete project, re-ducing errors from a historical rate of

1% to 2% down to 2 in 5,000.With 35 projects underway using OEtools in 2009, Weitz is delivering10% to 20% schedule reductions toclients and logging significant ROIper project on their Plan for 2013 in-vestments. They are also winningnew work in very competitive settingsby demonstrating the value of thesecapabilities to prospective clients.

Valuable Experience

Internal business benefits increase asBIM users gain experience. There is avast divide between novices and sea-soned users in how they perceive thevalue BIM brings to their own practices.Among a broad range of possible bene-fits, experts are roughly three to fourtimes more likely than beginners to

report seeing high to very high lev-

els of value. This is a natural, but dra-matic, progression. As users get startedwith BIM, they make investments insoftware, hardware, training and other

related initial costs. Meanwhile, they arelikely to be less productive with the tech-nology until they gain proficiency. Onceusers learn how they can leverage thetechnology to their advantage, theybegin to bank those benefits.

When comparing expert and beginneropinions about what aspects bring highto very high value:

I BIM increases profits: 43% ofexperts versus 7% of beginners.

I BIM reduces rework: 77% ofexperts versus 23% of beginners.

IBIM reduces errors and omissions

in construction documents: 76% ofexperts versus 26% of beginners.

I BIM helps in marketing new

business to new clients: 71% ofexperts versus 28% of beginners.

I BIM helps in maintaining busi-

ness with past clients: 61% ofexperts versus 19% of beginners.

Key FindingsI Marketing new business to new clients is the top rated business value of BIM.

I More experienced users reap far greater benefits.I Half of owners believe BIM is highly effective in creating better construction

project outcomes.

I Avoiding rework/changes is the top rated way to save time and/or money.

I Better multiparty communication and understanding from 3D visualization isthe top rated way value can be added.

I Lack of software interoperability and functionality are rated as the greatestobstacles to improving value.


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16

Improving Business ValueAlthough most BIM users see positive

ROI, they also see room for improve-

ment. Users report a variety of ways that

they could see better returns on BIM,ranging from less tangible benefitssuchas improved communication and market-ingto more defined savings, such as re-duced requests for information andimproved productivity.

Top Rated Ways to Improve Value

1) Better multiparty communication

and understanding from 3D visualiza-

tion. By sharing information through BIM,the team can better communicate its ac-tions and ideas. Three-quarters (77%) of

users seethis as highly important, with con-tractors ranking it as their topimprovement.

2) Improved project process out-

comes, such as fewer RFIs and fieldcoordination problems. By identifyingissues before they show up in the field,users can prevent costly mistakes.Three-quarters of all users (74%) seethis as highly important, with engineersranking it at the top of their list.

3) Improved productivity of person-

nel. One of the top rated ways that BIMusers can be more productive is by shar-ing data seamlessly with other users,eliminating the need to reenter data.Seven in ten users (73%) see this as

Relative Importance of BIM Benefits to Improving ROI

Very High/High None/Low

77%

74%

73%

71%

71%

66%

57%

50%

44%

43%

36%

5%

6%

7%

9%

9%

9%

12%

20%

21%

22%

26%

Better multiparty communicationand understanding from 3D visualization

Improved project process outcomes, such as fewerRFIs and field coordination problems

Improved productivity of personnel

Increased prefabrication

Positive impact on marketing

Reduced cycle time for projectactivities and delivery

Lower project cost

Improved jobsite safety

Positive impact on sustainability

Positive impact on recruiting/retaining staff

Faster plan approval and permits

highly important, with architects rankingit as their top improvement.

4) Increased prefabrication. When BIM

is used to coordinate shop drawings andeliminate clashes before they could hap-pen in the field, users can employ prefab-rication with more confidence. A largemajority of contractors (73%) forecastthat more model-driven prefabrication willimprove their returns.

5) Positive impact on marketing. BIMcould be seen as a differentiator when bid-ding or negotiating for work, especially if aclient recognizes its value. Sevenin tenusers (71%) see this as a highly importantarea of improvement,especially engineers.



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Challenges to ValueMost users see value in BIM, but sev-eral factors limit their ability to realizebetter results. A majority of BIM users

report several areas that they think arehighly important to increasing theirbusiness benefits with the technology.Software-related issues top the list

of areas that need to be addressed

to improve business value, including

better interoperability between soft-

ware applications and enhanced

functionality of BIM software. Theseconcerns arent limited to novices. Usersof all levels report that these issuesneed to be addressed if they are toimprove the benefits they hope to gain.

Top Rated Areas for Improvement

1) Improved interoperability be-

tween software applications. Non-in-teroperability limits the potential of BIM,especially in an environment where datais exchanged between various buildteam members. As BIM has developedand new tools have been introduced, in-teroperability has become an increas-ingly important issue. Although effortsto create standards are underway, is-sues remain. Eight in ten BIM userssay there is a significant need to

improve interoperability. This need isexpressed by a majority of all users atall experience levels.

2) Improved functionality of BIM soft-

ware. Functionality is a typical strugglefor emerging technologies. As softwarecompanies develop BIM tools and usersput them into practice, new demandsarise. Users are looking for additionalways to leverage benefits from BIM.More than three-quarters of users

(78%) say improved functionalitywould greatly enhance value. Begin-ners rank this as their top demand.

3) More clearly defined BI M deliver-

ables between parties. Just like withinteroperability between software appli-cations, different players need to knowthat they can exchange the right typesof information among team members.Seven in ten users say it is highly

important to have more clearly

defined BIM deliverables between

parties. In some cases, this issuecould be solved by meeting early in

the project schedule to define futuredeliverables.

4) More internal staff with BIM

skills. To gain value, adopting BIMgoes beyond creating a group of userswithin a company. As more staffmembers develop BIM skills within

a company, that company can ex-

perience its benefits more deeply.

Architects are the most interested inseeing this improvement. Naturally, be-ginners see a greater need to expand

BIM use within a company than moreexperienced users.

5) More owners asking for BIM.

Demand for BIM starts at the top. Ifthe client wants BIM on a job, it imme-diately gains a level of value to users.While BIM may be used largely by

the design and construction com-

munity, BIM users are looking for

owners to take the initiative on

whether the technology should

be utilized on a project. Contractorsare particularly swayed by ownerdemandthree-quarters say this ishighly important.

Top Ways to Improve Value of BIM

Improved interoperability betweensoftware applications

Improved functionality of BIM software

More clearly defined BIMdeliverables between parties

More internal staff with BIM skills

More owners asking for BIM

More external firms with BIM skills

More 3D building productmanufacturer-specific content

More use of contracts to supportBIM and collaboration

More incoming entry-levelstaff with BIM skills

Willingness of AHJs (Authorities HavingJurisdiction) to accept models

Reduced cost of BIM software

More hard data demonstratingthe business value of BIM

More readily available training in BIM

Integration of BIM data with mobiledevices/applications

More readily available outsourcedmodeling services

79%

78%

70%

69%

67%

66%

65%

62%

54%

54%

54%

51%

49%

39%

25%

Very High/High



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18

Industry Issue:Impact of BIM on Marketing

BIM User and Non-User Viewpoints

Projected Importance of BIM to Success in 5 years

Projected Importance of BIM to Success in 2 years

Perceived Importance of BIM to Success Now

Degree that clients are mandating BIM

Perceived rate of increase in client/prospect interest

Level of interest in BIM among clients/prospects

Degree that BIM capability is perceived

as a competitive advantage

Perceived buzz in your marketplace about BIM

Number of your competitors marketing themselvesas having significant BIM capability

50%

74%

11%

63%

0%

39%

12%

64%

11%

47%

2%

40%

4%

31%

21%

57%

13%

61%

BIM Users Non-Users

Very High/High

Leveraging BIM capability to win newbusiness was reported as the topinternal business benefit in the mainresearch conducted for this Smart-Market Report. To take a closerlook at the dynamics of this trend,McGraw-Hill Construction partneredwith the Society for Marketing Profes-sional Services (SMPS) for a specialsurvey of hundreds of its membersin August 2009 about how BIMcapability is perceived and marketed.The group included BIM users and

non-users from a wide range of com-pany sizes across the U.S. Selectedfindings are summarized below.

Winning New Work

While non-users report that BIM iscurrently of little importance to newbusiness, 98% of BIM users indicatethat BIM capability is having an impacton their companies winning new work.Half of these users characterize theimpact as moderate, and another quar-ter rate it high or very high.

Other Differences in Perspectives

between BIM Users and Non-Users

As shown by the chart on this page,BIM users have a distinctly differentperspective compared to non-users onthe interest level, usage and competi-tive importance of BIM in their market-place. This is especially striking in thediffering perceptions about how manyclients are now mandating BIM.

Future Importance

One area in which both BIM users andnon-users agree strongly is the futureimportance of BIM to their success.Users that rate it high or very highdouble from the current level of 39%to 74% in five years. And even thoughno non-users attribute high or veryhigh importance to BIM today, half ofthem agree that it will reach that levelof criticality within five years.

Plans for Adoption by Non-Users

Though 39% still arent sure aboutwhen they will acquire BIM capability,one-third of non-users indicate plans

to get on board within two years: Next 12 months 19%

Next 1-2 years 14%

More than 2 years 25%

Never 3%

Not Sure 39%

Fastest Growing Market Segments

Respondents were asked which marketsegments seem to be adopting BIMthe fastest:

Public work 35%

Health care 28%

Education 24%

Private and other 13%

Promotion of BIM Capability

Half of BIM users responded high orvery high when asked how activelythey are promoting their BIM capability.Three in five forecast they will be in-creasing their BIM promotion by signif-icant amounts in the next 12 months.

Verbal presentations scored highest inresponse to questions about where andhow users are currently promoting theirBIM capability:

In verbal communications 53%(speeches, etc)

In printed communications 37%

(brochures, etc)

In physical office space 35%

On company website 25%

Electronic communications 17%

(e-newsletters, etc)

In new business meetings and presen-tations, half report that they proactivelytalk to prospects and clients aboutBIM, even if not asked about it. In fact,

63% of users say they are closelyaligning their company image with BIM,characterizing it as either a major fac-tor or critical to their identity in themarketplace.(See Resetting ProjectDelivery on page 15)

Clearly the impact of BIM capability onthe pursuit of new business is beingfelt by BIM users and non-users alike,and this trend will accelerate as adop-tion and implementation expand.



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19

and MEP plans. Satterfield & Pontikesdedicated a crew of modelers andestimators to dig through the detailsfor six weeks. The team modeled exte-rior and interior elements, includingexterior walls, interior partitions, floors,foundations, elevated slabs, beams,girders, columns, ceilings, windows,doors and other elements that wouldbring the most benefit to estimating.

In the end, Marshall says the bid camedown to a better understanding of keyquantities and pricing.

We reduced the unknowns and could bemore aggressive with pricing, he says.

After winning the project, Marshalladds, the team had a head start andcould begin to mobilize early.

Wed done the preconstruction work, hesays. It wasnt like the clock started tick-ing when we wonit had already begun.

Satterfield & Pontikes Constructionsees BIM as a sure bet. In 2008, thecompany, based on Houston, Texas,chose to invest $250,000 worth of re-sources into modeling a prospectiveproject that Texas A&M Health Sci-ence Center had put out for sealed-competitive bid. When bids were readin October 2008, the companys gam-ble paid off. Satterfield & Pontikes wasawarded a contract to build two new-facilities at the clients campus inBryan, Texas, for $103.5 million

nearly $10 million below the next clos-est bidder.

John Marshall, vice president of mar-keting at Satterfield & Pontikes, saysthe company saw BIM as a way todrive the risk out of its bid and give itan edge on the competition. By model-ing the project in advance of the bid,the company had a firm understandingof quantities and costs, allowing theteam to get comfortable with a pricethat was well below client estimates.

It was a leap of faith, but it was afairly well-informed risk to take on ourpart, he recalls. We didnt believe anyother bidder would dig into it with thesame approach that we did. Turns outwe were right.

The award was a second go-roundfor the project. The facilities, whichinclude the 128,000 square feetHealth Professions Education Buildingand the 127,500 square feet MedicalResearch and Education Building, had

originally been awarded through a CM-at-risk delivery method. After monthsof preconstruction, the contractorcame back to the client with a pricethat was above budget, Marshall says.The contract was terminated and theproject was put back out to the marketas a hard bid job.

Prior to bid, the designer, FKP Archi-tects of Houston, provided 60 per-cent-complete architectural, structural

The Medical Research and EducationBuilding is scheduled for occupancy inJuly 2010 with the other facilities tofollow in April 2011; however, Marshallsays the company expects to wrap upits work in December 2010.

Although the company invested nearlyten times the resources upfront that itwould normally put into a similar hardbid job, Marshall says the companyopted for the same approach it woulduse on a CM-at-risk or design-buildproposal.

We grew up as a hard bid contractor,but when alternative deliveries startinghitting, we had to get smarter, he re-calls. This is taking those lessons andapplying them to the hard bid environ-ment. We had an approach that weknew others wouldnt take and it gaveus the boost we needed.

Satterfield & Pontikes Construction took plans and renderings of the Texas A&M Health Science Center

project from designer FKP Architects and built BIM models that the company used to prepare its bid.

Case Study:Texas A&M Health Science Center


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20

Project Value of BIMOverview: Gaining Value CollectivelyWhile BIM can provide benefits to individual build team members, most users rec-ognize that its collective use on projects can drive better results. To leverage

the highest potential of BIM, teams often institute a collaborativeor integratedap-proach to design and construction. In these scenarios, teams are rethinking tradi-tional roles and workflows to find better and faster ways to communicate

ideas, reduce errors and improve productivity. Users recognize that having otherBIM-savvy team members on a project and being able to share data from modelswith them can benefit a job overall.

I Six in ten users say the number of BIM-knowledgeable companies on a project ishighly important to a projects success.

I Two-thirds of users recognize that interoperability between software applicationsused by team members has a significant impact on the value gained during a project.

I Most BIM users say that the combined benefits recognized by team membersacross the life of a project add up to a highly valuable end result for the owner.

I Two-thirds forecast that, five years from now, lower risks and better predictability ofoutcomes will be the top rated benefits for project teams.

Value by Project PhaseUsers can reap benefits throughout the lifeof a project, but areexperiencing more value

insome phases than others.Users see thegreatest value as designs are fully devel-

oped and construction moves forward.

Construction Documents. BIMpaysoffasdesignsbecome richwith data.With the ad-ditionof specificationsforcontractors, BIMaids in improving communicationbetweenthe design worldand the building team.

Design Development. Thedesign capabili-tiesofBIM are among its most obvious andimmediately understood aspects,particularlyas more detailed models arecreated.

Construction. BIM can savetimeandmoneyabenefit that becomes clear duringconstruction.For example, reducing systemsclashescanhelp budgetandschedule.

Fabrication. Accuracyis critical for fabrica-tion, and a data-rich BIM model can haveapositive impact.By using BIM, many fabrica-tors canextract data rather than draw speci-fications that feed directly into their existingsystems.

User Differences

I

Two-thirds of architects see highvalue during design development andconstruction documents, when mod-els are populated with higher levels ofproject data.

I Almost seven in ten contractors ex-perience high value during construc-tion and fabrication, when the bulk ofcosts are generated and opportuni-ties to save time and money arise.

I Nearly half of engineers see highvalue during the construction docu-ments phase, while four in ten say

BIM can be highly beneficial duringdesign development and fabrication.Engineers are most heavily engagedduring these phases of a project.

I The later phases of a project, such ascloseout or operations and mainte-nance, are not seen as valuable op-portunities for BIM by any users,including owners. As those capabili-ties improve with the continued devel-opment of BIM, the potential valueduring such phases should improve.

Perceived Value of BIM by Phase

Predesign

Schematic design

Design development

Construction documents

Construction

Fabrication

Closeout/commissioning

Operations and maintenance

55%

54%

49%

44%

40%

29%

16%

15%

Very High/High



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Impact of Project Factors on BIM Value

BIM-knowledgeable designprofessionals on the project

Interoperability between softwareapplications used by team members

Project complexity

Number of BIM-knowledgeablecompanies on the project

BIM-knowledgeable constructioncompanies on the project

Contract form that is supportiveof BIM and/or collaboration

Project schedule

Previous experience working withother companies on the project

BIM-knowledgeable fabricators

on the project

Project size

Project budget

BIM-knowledgeable client

Colocation of team membersfrom multiple companies

73%

67%

63%

59%

55%

48%

43%

42%

42%

41%

40%

38%

23%

Very High/High

Factors Affecting ValueThe success of a project lies in the capabili-ties of its team members. Although a widerange of project factors caninfluence value,

users recognize that BIM knowledge isthe key to leveraging its true benefits.This may be particularly true today, whenmany companies are still learning how touse the BIM and more firms continue toadopt it. Many BIM users working in ateam environment have already discov-ered that a lack of interoperability betweensoftware applications can limit success.Most also recognize that BIM can show-case its potential on complex jobs.

Top Rated Factors

BIM-knowledgeable design profession-als on the project. More modeling duringdesign improveseveryones process. Three-quarters of allusers saythis factor is highlyimportant to the success of a project.

Interoperability between software used

by team members. The ability to ex-change project data between various teammembers is among the top rated potentialbenefits of using BIM. Although someteam members could use it solely for theirown tasks, sharing data adds a new andvaluable dimension to the process. Inter-operability is key to making this exchangeseamless. Two-thirds of all users recog-nize this as a highly important factor.

Project complexity. 63% of users seeproject complexity having a major impacton BIM value. This is especially true forconstruction firms (72%). Skill level influ-ences this view also, with only 54% ofbeginners versus 70% of experts ratingit highly or very highly important.

Number of BIM-knowledgeable com-

panies on the project. Six in ten users

feel strongly that a project benefits frommore BIM-capable team members. Con-tractors (67%) and experts (68%) feelthis most strongly.

BIM-knowledgeable constructioncompanies on the project. The abilityofconstruction firms to contribute time andmoney savings ona project can havea sig-nificantimpact onBIM value. More than halfof users (55%) see this as a highly importantprojectfactor.Source: McGraw-Hill Construction, 2009

Key FindingsI Factors with the greatest impact on BIM success on a project: 1) having BIM-

knowledgeable designers on the project, 2) software interoperabilityI Phases that experience the most BIM value during a project:

1) construction documents, 2) design development

I Top rated overall project benefits of BIM: 1) presentation/visualization of architec-tural design, 2) spatial coordination

IBIM Benefit that generates the highest returns: reduced conflicts during con-struction

I Few users currently experience value from 4D scheduling and energy analysis.

I Top rated future benefits of BIM: 1) better designed projects, 2) lower risk andbetter predictability of outcomes, 3) prefabrication


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Banking on the BenefitsNumerous benefits can begained from BIMuse, but there is concensusabout whichones bring the most value toa project.

I Reduced conflicts during construc-tion. Conflicts in the field are costly, af-fecting both budget and schedule. Alarge majority of users (68%) recognizethat reducing conflicts produces thehighest rewards on a project, particu-larly contractors (83%). Engineersalso ranked this as the greatest benefiton a project.

I Improved collective understandingof design intent. With BIM offering 3Dvisualization and a rich database of proj-ect information, two-thirds of users

(65%) say collective understanding ofdesign intent provides a high level ofvalue. Most owners (73%) believe thisand rank it as the highest area of value,as they can use models to better under-stand and monitor ideas that carrythrough the lifecycle of a project.

I Improved overall project quality.The proof is in the finished product.Most BIM users (54%) see that thecombined benefits across the life of aproject add up to a highly valuable endresult for the owner. Contractors(58%) and architects (53%) are themost likely to believe this.

I Reduced changes during construc-tion. When BIM reduces conflicts, ithelps teams avoid costly changes inthe field. All users rank this amongtheir top benefits, including a majorityof contractors (64%) and owners(68%).

I Reduced number of RFIs. Completeand conflict-free data shared acrossmultiple users helps clarify intent. Allusers rank this among their top benefits.

Impact of Experience

Users are evenly split over BIMs abilityto reduce total project cost and overallschedule. Roughly one-third believe BIMcontributes highly to these, while one

third believe it brings little to no value.Experts are almost twice as likely asbeginners to see these BIM benefitsbring significant value, suggesting thatwith experience they can eventually paybig dividends.

Benefits With Limited Value

Few saythese arecontributing high value:

I Improved jobsite safety (14%)

I Faster regulatory approval (14%)

I Improved commissioning, close-out

and turnover (19%)

BIM Benefits Contributing the Most Value

Reduced conflicts during construction

Improved collective understandingof design intent

Improved overall project quality

Reduced changes during construction

Reduced number of RFIs(Requests for Information)

Better cost control/predictability

68%

65%

54%

54%

47%

37%

Very High/High

BIM at WorkAs BIM software developers continue toexpand its capabilities, users are learninghow to best apply these tools to project

tasks. The visual aspects of BIM, whichprovide a 3D understanding of design andcoordination issues, remain among its mostapproachable opportunities for users. Asusers apply BIM to more complex

tasks, expertise plays a big role in their

ability to experience value. Still othertasks have yet to be improved by BIM, butcould do so in the future.

Most Valuable Uses Today

I Presentation/visualization of archi-

tectural design. Two-thirds of users

(67%) see high value, especially archi-tects (76%) and owners (66%).

ISpatial coordination. Two-thirds (64%)see high value, especially contractors(78%). Engineers (52%) rank it secondto presentation/visualization.

Emerging Values

Experiencedrives theability to reap rewards.A large portion of experts see these tasksgaining high value when donein BIM today,while less thanhalfas many beginners seethat level of value.

I Client engagement (72% of experts)

I Drive shop fabrication equipment

(54% of experts)

I Quantity takeoff (52% of experts)

I Less time documenting, more time

designing (45% of experts)

I Shop drawing process

(50% of experts)

I Cost estimation (41% of experts)

Future Developments

Few users of any expertise level see highvalue in using BIM on the following taskstoday. Insomecases, users may not see BIMas an improvementovercurrent methods.As softwareis further developed, outlook onBIMs impact on these taskscould change.

I 4D scheduling (17%)

I Energy analysis (16%)

I Submittals (other than shops) (14%)

I Operations & Maintenance (14%)

I Project turnover & closeout (12%)Source: McGraw-Hill Construction, 2009


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Future OpportunitiesUsers have an upbeat outlook on BIM.Most have yet to unlock its full potential,but see significant improvement on the

horizon. Drawing from a list of potentialbenefits, a majority of experts believe

that all of them would create high

value in five years with the exception ofBIMs impact on safety issues and recruit-ment and retention of talent. At least fourin ten beginners also believe those oppor-tunities will be very valuable. Contractorsare generally the most optimistic that theywill see higher value in the future.

I Better-designed projects. BIM can helpintegrated teamspush more of the key

decisions tothe earlier stages of theprocess,allowingforsmarterdesignsthatcapture a more detailed view of the entireproject. Sevenin ten users (68%) believethiswillprove tohavehighvalue inthefuture,especially contractors (74%).

I Lower risk and better predictability

of outcomes. As more users share in-formation across models in the future,the ability to lower risk will improve.Two-thirds of users (64%) see this hav-ing high value five years from now, withtwo-thirds of contractors reporting it.

I Prefabrication of larger, more complex

parts of projects. BIM is helping pushthemovement toward moreprefabrication.Six in ten users (62%) sayprefabricationwill bring high value toprojects inthe com-ing years. A largemajority of contractors(77%) see this as very beneficial.

I Greater professional satisfaction with

project outcomes. Predictability andimproved performance go a long way to-ward making a company feel good aboutits work on a project. Six in ten (61%)see this benefit as having a high value inthe future.

I Reduced claims, disputes and con-

flicts. The more questions youcananswerup front, the more you can eliminatethegray area that will cause problems later.Increasing predictability of projects canhelp reducefutureclaims anddisputes.Fifty-ninepercent of users saythis willprove tohavehighvalue infiveyears,es-pecially contractors (68%).

Perceived Value of BIM Five Years from Now

Very High/ High None/ Low

Better-designed projects

Lower risk and better predictabilityof outcomes

Prefabrication of larger, more complexparts of projects

Greater professional satisfactionwith project outcomes

Reduced claims, disputes and conflicts

Better performing buildings/infrastructure

Individual participant productivity

Faster delivery schedules

Profitability of participating companies

Enhanced operations, maintenanceand facility management

Improved review and approval cycles

Lower construction costs

Recruitment and retention of talentto the industry

Safer construction processes and sites

68%

64%

62%

61%

59%

58%

58%

54%

53%

51%

51%

45%

40%

28%

9%

11%

11%

11%

14%

13%

12%

16%

14%

18%

20%

22%

23%

35%


Blurring the LinesThe ability of teams to create richer models and share more data with BIM has helpedfostermore collaborative decision making on projects. Through integrated project deliv-ery, key constructionfirms, fabricators, suppliers and others can work earlier in the

process with designers to enhance quality, constructibility, timeliness and affordability.BIM has proven an effective tool for this delivery method, breaking from the tradition ofhanding off completed work from one team member to the next with little or no inputfrom others.

Survey data shows that two critical design phasesdesign development andconstruc-tion documentsare seen as times when projects can gain considerable value. As de-signers add detail to models, these phases represent an opportunity for others toprovide input before costly decisionsthat impact the project are made. Although con-ventionally considered designphases, at least half of contractors and owners see thesephases as highly valuable opportunities to gain value on a project.


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Case Study:Sutter Health Medical Center Castro Valley

Floor-level view of systems designed for Sutter Medical Center Castro Valley

ImagecourtesyofGHAFARIAssociates

24

When the Sacramento, California, firm

Sutter Health first looked into buildingthe new Sutter Medical Center CastroValley, it saw no room for error. The$320 million project would replace theexisting 55-year-old Eden MedicalCenter in Castro Valley, California, witha seismically safe facility designed incompliance with current earthquakesafety laws. Using a team assembled in2007, the project would need to becompleted in time to meet a state-mandated 2013 seismic compliancedeadline. Budgets also had little wiggleroom, as Sutter Health would financethe entire project without public funds.

From the early planning stages, DigbyChristian, senior project manager withSutter Healths facility planning and de-velopment department, wasnt convincedthat traditional delivery methods or evenemerging integrated approaches wouldkeep the project on track. Although Sut-ter Health has successfully used three-party integrated project delivery methodsin the past, Christian decided to teardown the walls even further. The resultwas a 10-party IPD contract that brought

together all major players, including thosewho usually would be hired as subconsul-tants or subcontractors. In addition to thearchitectPhoenix-based DevenneyGroupand the general contractorDPR Construction of Redwood City, Cali-forniathe team includes key MEPengineers and trade contractors; fire pro-tection services; and a lean/BIM projectintegrator, Ghafari Associates of Dear-born, Michigan.

I didnt see any point in the old hierar-chy, Christian says. Its baggage fromthis splintered environment weve al-ways worked in. If youre committed asa team, why have a hierarchy?

Given the level of early input availablefor the project, the team invested in ex-tensive planning from the outset. Itconducted a 7-week $350,000 valida-tion study to ensure the project couldcome in at cost and budget. Next, theteam strategized about how best to fa-cilitate a seamless flow of ideas andcommunication among multiple parties.

Christian says the method requiresmore thinking up front, but leads to lesstime in production later.

Were trying to change the way peoplethink about design and construction,he adds. Its not just executingits fig-uring out how best to work together.

We spent a lot of time figuring out howdecisions should be made. It feelswasteful initially, but its a lot less frus-trating in the end.

Adding BIM to IPD

To speed decisions and streamlineprocesses, BIM and BIM-related toolsplayed a vital role within the team. Thedesign of all systems was performed andcoordinated using 3D modeling software.Although everyone knew technologywould drive the projects success, Gha-faris strategy was to avoid specifying

which programs should be used.Samir Emdanat, manager of advancedtechnologies at Ghafari, says that toooften, specifying techno