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McGraw-Hill The Business Value of BIM

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McGraw-Hill Construction SmartMarket Report: The Business Value of BIM. Who’s using BIM, and where are they getting the real business value?
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Page 1: McGraw-Hill The Business Value of BIM

THE BUSINESS VALUE OF BIMGetting Building Information Modeling to the Bottom Line

Premier Corporate PartnerGovernment PremierPartner

Corporate Contributor Sponsors

Association Premier Partners

Page 2: McGraw-Hill The Business Value of BIM

2

Who’s using BIM, and where are they getting the real business value? These are thetwo 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 users’bottom 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:

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

� All BIM users plan significant increases in their use.

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

We asked nonadopters why they hadn’t adopted BIM and what they will need to start. With userswe 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 BIM’s 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 industry’s 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 IAI’s 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 Construction’s 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. fromWharton 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 MHC’s 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 Construction’s 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

Page 3: McGraw-Hill The Business Value of BIM

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Table of Contents

ImagescourtesyofMortensonConstruction

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

Overall Value of BIM .....................................................................6Case Study: Research 2........................................................................10Industry 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...................................................................20Case Study: Sutter Health Medical Center ......................................24

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

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

Player Value of BIM.....................................................................28Software Industry Perspective .............................................................35

Adoption of BIM............................................................................36Case Study: Department of Energy....................................................43

Industry Issue: Opportunities and Obstacles for Engineers .........44Case Study: BIM on Heavy Civil Projects.........................................46

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

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

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

Cover images provided byBryan Christie Design

Page 4: McGraw-Hill The Business Value of BIM

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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.

� Seven in ten BIM users whomeasure ROI see positive returns,compared to half of those who onlygo by their perception of value.

� One in five BIM users who meas-ure ROI see returns greater than50%—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.

� Marketing new business to newclients is the top rated businessbenefit of BIM.

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

� Two-thirds of users say BIM’s abilityto help a companymaintain 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.

� Reducing rework is the highest-rated business benefit amongexperts. Four in five experts sayit brings high to very high value,compared to 23% of beginners.

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

� Reduced conflicts and changesduring construction are amongthe top rated ways engineers sayBIM adds value to a project.

� Clash detection and avoidingrework 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, constructionand/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

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

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

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

Source: McGraw-Hill Construction, 2009

Page 5: McGraw-Hill The Business Value of BIM

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

� Better multiparty communicationand understanding from 3D visuali-zation is the BIM benefit rated mostlikely to improve ROI. 80% of usersgive it high to very high importance.

� Improved project process out-comes, such as fewer RFIs andfield coordination problems, is thesecond-highest rated way to improvevalue with BIM. Communication of proj-ect data is critical to meeting this goal.

� The number of BIM-knowledgeablecompanies on a project is a toprated factor affecting value on a proj-ect. Three in four users see this ashighly to very highly important.

� Presentation and visualization ofarchitectural 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

� Improved interoperability betweensoftware applications is the top in-dustry improvement that will increaseBIM value.

�Seventy percent of users saymoreclearly defined BIM deliverablesbetween parties is highly to very highlyimportant to increasing the value ofBIM.

Recommendations�Beginners: Value is on the hori-zon. New users see limited valueinitially, but additional opportunitiesmaterialize with experience.

�Non-Users: Don’t delay yourdecision. BIM users are seeingpositive returns today and expectthose benefits to grow over time.Delaying adoption will leave youfarther behind.

�Owners: 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.

�Software companies: Speeddelivery of solutions. Users havequickly gained experience andbecome acutely aware of softwareinteroperability and functionalitylimitations. Tools need to keep pacewith rising demand.

�All users: Don’t 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.

� 70% report positive ROI from BIM.� Lower project cost is among the toprated ways users expect BIM to bringhigh value.

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

The AEC community looks to clientswhen deciding to use BIM:

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

� Seven in ten non-users say ownersdemanding BIM use on projectswould significantly impact their deci-sion to adopt BIM.

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

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

� 42% of users are at an expert oradvanced level—three times theamount reported in 2007.

� Half of contractors report using BIMor BIM-related tools—four timesthe level reported two years ago.

� Two-thirds of experts use it onmorethan 60% of their projects today.

� One-third of all users utilize BIM on60% or more projects today, buttwice as many expect to be usingit at that level in two years.

� 42% of non-users believe that BIMwill be highly or very highly impor-tant to the industry in five years.

� Nearly half of non-users haven’t 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 be fading.

� Two-thirds of non-users say concernsabout liability have little to noimpact on their consideration of BIM.

All Respondents

2009

200748%

28%

Growth in BIM Use

Importance of BIMin 5 Years

Very high importance

High importance

16%

Moderate importance 39%

Low importance

31%

No importance

11%

3%

Source: McGraw-Hill Construction, 2007, 2009

Source: McGraw-Hill Construction, 2009

Page 6: McGraw-Hill The Business Value of BIM

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Overall Value of BIM

BIM Reaps ReturnsBIM is paying off for a solid majority ofusers—particularly the most experiencedones. Whether it’s 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 positiveROI on their overall investment inBIM, with 15% reporting an ROI of50% 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 usingproject data report higher returnsthan those who estimate returnsbased 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 realizevalue, and those who formally measureit may see a more complete pictureregarding returns.

� One in five users who formallymeasure ROI see returns above50%, twice the rate of those who don’tmeasure it.

� 9% of users who formally meas-ure ROI see returns above 100%,compared to 6% of those who don’tmeasure 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 investmentin BIM. For the time and expense put into making BIM part of their practice, usersgain a range of benefits that could include improved productivity, enhancedquality, increased opportunities for new business and overall better projectoutcomes. 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 thatBIM is still an emerging process, this trend should gain momentum as more usersmaster it and software providers develop additional tools.

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

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

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

� 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 withBIM compared to 38% of beginners.The progression is a steady one. Many oftoday’s beginners can expect to see bet-ter results over time as they deepen theirknowledge and use of the technology.

Source: McGraw-Hill Construction, 2009

Page 7: McGraw-Hill The Business Value of BIM

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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%

Source: McGraw-Hill Construction, 2009

User Differences

� 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.

� Owners are as likely as contrac-tors to see a high ROI with sevenout of ten (70%) reporting positiveresults. 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.

� 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.

� Less than one half of engineers(46%) experience positive ROIwhen using BIM. One-third of userssay 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 Findings�Most users see positive ROI in BIM.

� Returns improve with experience.

�Owners and contractors see the highest returns on BIM.

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

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

Editor’s note: Return on investment figures from survey results reflect respondents’perceived ROI and are not the result of a prescribed approach to calculation.

Page 8: McGraw-Hill The Business Value of BIM

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Where Users InvestGaining BIM capabilities and expertiserequires investments in a broad range ofproducts and processes. These areas ofinvestment change over time, assome initial investments take a back-seat to ones that will deepen a user’sBIM 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� 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.

� 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.

� 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 today’s 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 whereBIM wasn’t 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 BIM 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 ROI—with at least two-thirds doing so comparedto 40% of beginners—even 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 haven’t decided if they will (27%).Those with more expertise with BIM are most likely to indicate that they willprobably never measure their ROI if they have not been doing so thus far.These users have made the decision to pursue BIM and don’t 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%

Source: McGraw-Hill Construction, 2009

Page 9: McGraw-Hill The Business Value of BIM

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

� 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.

� Developing collaborative BIMprocesses 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 forteamwork. 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.

� 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.

� 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 everythingout of BIM that they can, or that they are getting a lot of value comparedto only 9% of beginners.

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

� 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.

� Six in ten architects report seeing positive ROI on BIM. 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.

� Engineers are the most pessimistic about the value of BIM, 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 developmentcatches up with demand, this attitude would likely change.

All Respondents

Level of Business Value of BIM

We're getting nomeaningful valuefrom BIM

We're just scratchingthe surface of how muchvalue BIM can provide us

We're getting a lot of valuefrom BIM but believe thereis more to be gained

We're getting everythingout of BIM that we believeit can provide us4%

48%45%

3%

Source: McGraw-Hill Construction, 2009

Page 10: McGraw-Hill The Business Value of BIM

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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 believedit 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 bejust as complex and we knew we coulddo better with BIM.”

In order to better leverage the benefitsof the technology, Mortenson pursuedan integrated approach, engaging earlywith 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 owner’s 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, Colorado

ImagecourtesyofMortensonConstruction

Page 11: McGraw-Hill The Business Value of BIM

11

orders compared to R1. As a result,Cunz estimates that the team was ableto save enough in administrative costs tomore 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 can’t quantify definitely that BIMsaves time because the only way to dothat is if you had every hour of everycraftworker mapped,” he explains.“We’d 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 won’t share their company’s pro-ductivity factors, because that’s part oftheir competitive advantage. It’s hard toget true metrics.”

Regardless, Cunz says it’s 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, theexecution 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 R1’s 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, thejob 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 BIMin 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.

Page 12: McGraw-Hill The Business Value of BIM

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Industry Issue:Impact of BIM on Productivity

Building information modeling couldplay 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 thatcould 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; andimprove 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 don’t utilize it, especially cost andschedule improvements.

Other breakthrough opportunities sug-gested in the study include:

• Improved jobsite efficiency throughmoreeffective interfacing of people, processes,materials, equipment and information

• 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-port’s 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 committee’s goals aren’t 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 challenges…can 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 systemsand 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 for“intelligent” 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 WorkersSources: 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 IndexNon-Farm Productivity Index

ChartcourtesyofPaulTeicholz

Page 13: McGraw-Hill The Business Value of BIM

13

Effect of BIM Use on Project Profitability

Increase

Don’t 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 thisSmartMarket Report were also exploredin a study by Burcin Becerik-Gerberand Samara Rice at the University ofSouthern California’s Department ofCivil and Environmental Engineering inearly 2009. The team’s 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 than1% 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 absorbingeach 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 travelcosts 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

Source: McGraw-Hill Construction, 2009

Page 14: McGraw-Hill The Business Value of BIM

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Top Rated Ways BIMSaves Time and/orMoney� Avoiding rework/changes

� Conflict avoidance/resolution

� Increased productivity/efficiency

Internal Business Value of BIMBusiness BenefitsWithin their own practices, BIM userssee numerous opportunities to realizevalue. Since BIM is an emergingprocess that has started to capturethe attention of the building commu-nity at large, users are eager to bankits 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 savingsand 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 newclients. BIM opens doors for compa-nies in the built environment. Asmore clients begin to require BIM onjobs, team members need to have BIMskills to capture that business. On theflip side, companies can also introducethe technology to new clients that aren’trequiring BIM and use it as a marketingfeature to get a leg up in their bid toland a job. All team members—otherthan owners who are also clients—ratethis as a top benefits. This is particu-larly true for less experienced userswho are promoting this new skill.Experts believe it is important, but lessthan some other top benefits.

2) Overall better construction projectoutcomes. Half of owners (48%) saythat BIM’s impact on the overallproject 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 staff’s 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

Source: McGraw-Hill Construction, 2009

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 inthe form of improved staff productivity, increased profits or new businessopportunities for the company. But internal business benefits aren’t gainedovernight. With experience, users begin to see how BIM can offer considerablevalue to their companies.

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

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

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

Page 15: McGraw-Hill The Business Value of BIM

Top Rated BenefitsOther Than Saving Timeor Money� Better understanding of projectin any/all stages

� Better collaboration

� Visualization

15

for them. Owners who are less experi-enced with BIM see this as their topbenefit, while expert owners rank itslightly 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 omissionsin 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 thatinformation 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 ahigh level of benefit to their prac-tices. Naturally, this is more importantto more recent adopters of the technol-ogy. Contractors, who as a group haveadopted 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 toreduce rework as a significant ben-efit. This is the highest-ranked benefitreported by expert users (77%), com-pared to fewer beginners who see itthat way (23%).

Resetting Project DeliveryIn 2007, the Weitz Company beganan ambitious Plan for 2013 to “reset”its 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 Sullivan’s Opera-tional Excellence (OE) group beganencouraging a cultural shift from “thetypical heroic problem solving, to prob-lem seeking” that identified riskier as-pects of projects and developed toolsto address themmuch earlier.

Bruce Cousins, Weitz’s 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 of1% 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 ExperienceInternal 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 toreport 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 otherrelated 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:

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

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

� BIM reduces errors and omissionsin construction documents: 76% ofexperts versus 26% of beginners.

� BIM helps in marketing newbusiness to new clients: 71% ofexperts versus 28% of beginners.

� BIM helps in maintaining busi-ness with past clients: 61% ofexperts versus 19% of beginners.

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

�More experienced users reap far greater benefits.

� Half of owners believe BIM is highly effective in creating better constructionproject outcomes.

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

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

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

Page 16: McGraw-Hill The Business Value of BIM

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Improving Business ValueAlthough most BIM users see positiveROI, they also see room for improve-ment. Users report a variety of ways thatthey could see better returns on BIM,ranging from less tangible benefits—suchas improved communication and market-ing—to more defined savings, such as re-duced requests for information andimproved productivity.

Top Rated Ways to Improve Value

1) Better multiparty communicationand 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 see this as highly important, with con-tractors ranking it as their top improvement.

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 BIMis 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 onmarketing. BIMcould be seen as a differentiator when bid-ding or negotiating for work, especially if aclient recognizes its value. Seven in tenusers (71%) see this as a highly importantarea of improvement, especially engineers.

Source: McGraw-Hill Construction, 2009

Page 17: McGraw-Hill The Business Value of BIM

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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 usersreport several areas that they think arehighly important to increasing theirbusiness benefits with the technology.Software-related issues top the listof areas that need to be addressedto improve business value, includingbetter interoperability between soft-ware applications and enhancedfunctionality of BIM software. Theseconcerns aren’t 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 toimprove 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 BIM 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 highlyimportant to have more clearly

defined BIM deliverables betweenparties. In some cases, this issuecould be solved by meeting early inthe project schedule to define futuredeliverables.

4) More internal staff with BIMskills. To gain value, adopting BIMgoes beyond creating a group of userswithin a company. As more staffmembers develop BIM skills withina 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 bythe design and construction com-munity, BIM users are looking forowners to take the initiative onwhether the technology shouldbe utilized on a project. Contractorsare particularly swayed by ownerdemand—three-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

Source: McGraw-Hill Construction, 2009

Page 18: McGraw-Hill The Business Value of BIM

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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 perceivedas 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 andnon-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 Perspectivesbetween 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 aren’t sure aboutwhen they will acquire BIM capability,one-third of non-users indicate plansto 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.

Source: McGraw-Hill Construction, 2009

Page 19: McGraw-Hill The Business Value of BIM

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.

“We’d done the preconstruction work,” hesays. “It wasn’t like the clock started tick-ing when we won—it 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 company’s gam-ble paid off. Satterfield & Pontikes wasawarded a contract to build two new-facilities at the client’s 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 didn’t 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, hadoriginally 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 wouldn’t take and it gaveus the boost we needed.”

ImagescourtesyofSatterfield&PontikesConstruction

Satterfield & Pontikes Construction took plans and renderings of the Texas A&M Health Science Centerproject from designer FKP Architects and built BIM models that the company used to prepare its bid.

Case Study:Texas A&M Health Science Center

Page 20: McGraw-Hill The Business Value of BIM

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 leveragethe highest potential of BIM, teams often institute a collaborative—or integrated—ap-proach to design and construction. In these scenarios, teams are rethinking tradi-tional roles and workflows to find better and faster ways to communicateideas, 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.

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

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

� 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.

� 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 are experiencingmore valuein somephases than others.Users see thegreatest value as designs are fully devel-oped and constructionmoves forward.

Construction Documents.BIMpays off asdesigns become richwith data.With the ad-dition of specifications for contractors, BIMaids in improving communication betweenthe designworld and the building team.

Design Development. The design capabili-ties ofBIMare among itsmost obvious andimmediately understood aspects, particularlyasmore detailedmodels are created.

Construction.BIMcan save time andmoney—abenefit that becomes clear duringconstruction. For example, reducing systemsclashes canhelp budget and schedule.

Fabrication.Accuracy is critical for fabrica-tion, and a data-richBIMmodel can have apositive impact. By usingBIM,many fabrica-tors can extract data rather than draw speci-fications that feed directly into their existingsystems.

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

� 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.

� Nearly half of engineers see highvalue during the construction docu-ments phase, while four in ten sayBIM can be highly beneficial duringdesign development and fabrication.Engineers are most heavily engagedduring these phases of a project.

� 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

Source: McGraw-Hill Construction, 2009

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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 fabricatorson 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 teammembers. Although a widerange of project factors can influence 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 andmore 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.Moremodeling duringdesign improves everyone’s process. Three-quarters of all users say this factor is highlyimportant to the success of a project.

Interoperability between software usedby 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 usersfeel 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 ability ofconstruction firms to contribute time andmoney savings on a project can have a sig-nificant impact onBIM value.More than halfof users (55%) see this as a highly importantproject factor.Source: McGraw-Hill Construction, 2009

Key Findings� Factors with the greatest impact on BIM success on a project: 1) having BIM-knowledgeable designers on the project, 2) software interoperability

� Phases that experience the most BIM value during a project:1) construction documents, 2) design development

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

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

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

� 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 fromBIMuse, but there is concensus aboutwhichones bring themost value to a project.

� 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.

� 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.

� 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.

� 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%).

� 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 BIM’s abilityto reduce total project cost and overallschedule. Roughly one-third believe BIMcontributes highly to these, while onethird 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

Fewsay these are contributing high value:� Improved jobsite safety (14%)

� Faster regulatory approval (14%)

� Improved commissioning, close-outand 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 projecttasks. 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 complextasks, expertise plays a big role in theirability to experience value. Still othertasks have yet to be improved by BIM, butcould do so in the future.

Most Valuable Uses Today

� Presentation/visualization of archi-tectural design. Two-thirds of users(67%) see high value, especially archi-tects (76%) and owners (66%).

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

Emerging Values

Experience drives the ability to reap rewards.A large portion ofexperts see these tasksgaining high valuewhen done inBIM today,while less than half asmanybeginners seethat level of value.

� Client engagement (72% of experts)

� Drive shop fabrication equipment(54% of experts)

� Quantity takeoff (52% of experts)

� Less time documenting, more timedesigning (45% of experts)

� Shop drawing process(50%of experts)

� Cost estimation (41% of experts)

Future Developments

Few users of any expertise level see highvalue in using BIM on the following taskstoday. In some cases, usersmay not seeBIMas an improvement over currentmethods.As software is further developed, outlook onBIM’s impact on these tasks could change.

� 4D scheduling (17%)

� Energy analysis (16%)

� Submittals (other than shops) (14%)

� Operations & Maintenance (14%)

� 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 thehorizon.Drawing from a list of potentialbenefits, a majority of experts believethat all of them would create highvalue in five years with the exception ofBIM’s 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.

� Better-designed projects.BIMcan helpintegrated teamspushmore of the keydecisions to the earlier stages of theprocess, allowing for smarter designs thatcapture amore detailed viewof the entireproject. Seven in ten users (68%) believethiswill prove to have high value in thefuture, especially contractors (74%).

� Lower risk and better predictabilityof outcomes. Asmore 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.

� Prefabrication of larger, more complexparts of projects.BIM is helping pushthemovement towardmore prefabrication.Six in ten users (62%) say prefabricationwill bring high value to projects in the com-ing years. A largemajority of contractors(77%) see this as very beneficial.

� Greater professional satisfaction withproject 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.

� Reduced claims, disputes and con-flicts. Themore questions you can answerup front, themore you can eliminate thegray area thatwill cause problems later.Increasing predictability of projects canhelp reduce future claims and disputes.Fifty-nine percent of users say thiswillprove to have high value in five years, 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%

Source: McGraw-Hill Construction, 2009

Blurring the LinesThe ability of teams to create richer models and sharemore data with BIM has helpedfoster more collaborative decisionmaking on projects. Through integrated project deliv-ery, key construction firms, fabricators, suppliers and others canwork earlier in theprocess 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 teammember to the next with little or no inputfrom others.

Survey data shows that two critical design phases—design development and construc-tion documents—are 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 decisions that impact the project aremade. Although con-ventionally considered design phases, at least half of contractors and owners see thesephases as highly valuable opportunities to gain value on a project.

Page 24: McGraw-Hill The Business Value of BIM

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, firmSutter 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 Health’s facility planning and de-velopment department, wasn’t 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 broughttogether all major players, including thosewho usually would be hired as subconsul-tants or subcontractors. In addition to thearchitect—Phoenix-based DevenneyGroup—and the general contractor—DPR Construction of Redwood City, Cali-fornia—the team includes key MEPengineers and trade contractors; fire pro-tection services; and a lean/BIM projectintegrator, Ghafari Associates of Dear-born, Michigan.

“I didn’t see any point in the old hierar-chy,” Christian says. “It’s baggage fromthis splintered environment we’ve al-ways worked in. If you’re 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.

“We’re trying to change the way peoplethink about design and construction,”he adds. “It’s not just executing—it’s fig-uring out how best to work together.We spent a lot of time figuring out howdecisions should be made. It feelswasteful initially, but it’s 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 project’s success, Gha-fari’s strategy was to avoid specifyingwhich programs should be used.

Samir Emdanat, manager of advancedtechnologies at Ghafari, says that toooften, specifying technology can limitcreativity and reduce productivity.

“It can be a hindrance when you have aset of constraints that are not well con-ceived from the beginning and you haveto live within those constraints,” he says.“If the plan is flexible, we can build oneveryone’s core strengths and competen-cies to come up with the ideal approach.”

Emdanat says the main goal was to findeffective discipline-based chains of dataexchange that would allow building in-formation to flow easily from each de-signer to the appropriate tradecontractors and on to the fabricators.

“Whenever there’s an opportunity to pur-sue design-to-fabrication exchange, wepush that as hard as we can,” Emdanatsays. “That means you create the infor-mation once and use it downstream forconstruction.”

From there, interdisciplinary exchangemethods were developed to keep theproject tightly coordinated. In all cases,3D is standard. For example, the MEPteam supported the structural deliver-ables by coordinating entirely in 3D with-out producing any 2D documentation.

By the time the project broke groundin June 2009, the team had producedin excess of 25,000 electronic designdocuments. With hundreds of teammembers located in offices around thecountry, the more than 50 companiescreating files have access to all data inreal time from any location, using a se-ries of eight servers.

Emdanat says files are considered “live,”not copies that are uploaded to the site,so users don’t have to worry if they areaccessing the latest version of a file.

Page 25: McGraw-Hill The Business Value of BIM

“It was a huge challenge, but once weimplemented it and the teams beganworking with it, everything becametransparent,” he adds. “They could seewho worked on what file and when, sothey knew everyone’s progress. Ithelped them feel like one big team in-stead of a number of different ones.”

Communication didn’t migrate entirelyto the servers, however. The teammeets every week to review the designusing 3D models. Integration will re-main a critical strategy going forwardas designs are still in the works untilFebruary 2010—eight months aftergroundbreaking.

Early results

By the time construction got underway,Sutter Health started to realize the ben-efits of its approach. Early in the project,team members were asked to provideresource-loaded work plans to forecasthow they expected to spend their timeand money during design. Ghafaritracked each team's actual spending—or burn rate—against the original Sep-tember 2007 budget until December2008. While each team's results mayvary, the overall budget against actualspending for the preconstruction costsshowed a savings of $1.2 million.

Although significant time was spentearly in planning, Emdanat says theproject has outpaced projects executedunder traditional delivery methods. Heestimates that in California, projects ofthis magnitude take two and a half tothree years from beginning of design tocompleted design, followed by twoyears in permitting, and up to four yearsin construction. The Castro Valley de-sign started in October 2007 and theteam had submitted fully permitableconstruction documents by December2008—a one-year-and-three-monthprocess. Permit for construction was re-ceived six months later in June 2009.

Emdanat says that all benefits com-bined create a project that is “faster,better and less expensive.”

“This is not only the fastest designedlarge-scale health care project [in Cali-fornia], it was done at no added costand resulted in higher-quality and better-coordinated deliverables,” he says. “In thetraditional process, the owner has to picktwo out of the three [benefits] when theschedule is significantly accelerated.

Still more savings are expected on thehorizon. Hundreds of multidisciplinedesign coordination issues that aretypically resolved during construction

have also been identified and resolvedearly in design, including detailed coor-dination of the elevator equipment,stair details, plumbing wall coordina-tion, underground utility coordination,and coordination against steel bracesand plates. With those issues coordi-nated early, Emdanat says the designhas proceeded with much more cer-tainty, leading the team to expect re-duced rework or changes duringconstruction. Ghafari is monitoring theimpact and potential savings from thisearly coordination as the project transi-tions into construction to help betterunderstand the ultimate savings incost and time once the project is com-pleted in 2013.

Given the initial results, Christian saysSutter Health expects to continueusing its expanded view of IPD on fu-ture projects, and Emdanat forecaststhe trend could spread.

“Owners are not satisfied with the tra-ditional way of designing and deliveringprojects,” Emdanat said. “They see proj-ects run behind schedule and budget,and know that the old way doesn’twork. The silo perspective might makesense for some in the design and con-struction world, but owners believethere’s a better way to do things.”

25

Bird’s-eye view of the Sutter Medical Center Castro Valley model

ImagecourtesyofGHAFARIAssociates

Page 26: McGraw-Hill The Business Value of BIM

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Industry Issue:BIM and Green Building

Expected Growth in BIM Use on LEED Projects

11.5%

34.6%

23.1%

3.8%

23.1%

3.8%Decline

Stay about the same

Low increase

Moderate increase

High increase

Very high increase

Green building experts are searchingfor ways that BIM can help deliversustainable facilities in the future. Re-search shows that BIM has limited im-pact on green building processestoday, but many predict it could be avaluable tool in the coming years.

Results of this SmartMarket Report re-veal that one-third of users say BIM ishighly to very highly beneficial in deliv-ering better-performing completedbuildings, ranking it well below otherpotential benefits. More specifically, fewusers (15%) are currently getting ahigh level of value from using BIM forenergy analysis—a key process ingauging building performance.

However, users see its impact increas-ing on the horizon. Three in five userssay BIM will be highly to very highlyvaluable in producing better-performingbuildings in five years, especially ex-perts (69%).

Expert Perspectives

In a separate study, McGraw-HillConstruction surveyed firms involvedin projects that had achieved U.S.Green Building Council LEED Plat-inum certification about the impact ofBIM on green projects. Again, thesnapshot of today is far differentthan the future outlook.

Among respondents, less than one inten used BIM on LEED platinum proj-ects. Most of these projects were certi-fied in 2007 and 2008, suggesting thatmuch of the design and analysis hadbeen done years in advance when BIMwas still in limited use industry wide.

One-third of those who hadn’t usedBIM on a LEED platinum project stillare not using it on LEED projects today.Another third are light users, utilizing iton less than 15% of projects.

However, 69% are forecasting theiruse of BIM on such projects to in-crease by at least a moderate amount

in the next two years—with 35%predicting a high increase.

More Analysis Capabilities Needed

When reporting current concerns, somerespondents noted that BIM is still anascent technology that needs furtherdevelopment, particularly in the MEPfields.

In order for BIM to better apply to sus-tainable projects, many respondentsspecifically cite the need for improvedenergy modeling and analysis capabili-ties to test design alternatives andbudgets against performance.

Additionally, some see the need forbroader applications of the technologyin the future, especially if it is to beembraced by owners seeking LEEDcertification.

A respondent from an architectureand engineering firm says that—de-spite the fact that BIM implementa-tion has been “expensive and difficult”at his company—he sees opportuni-ties down the road.

“We believe it will actually reduce thesize of project teams, and make thoseteams more nimble,” he says. “We be-

lieve BIM will facilitate smarter but sim-pler buildings, less reliant on technol-ogy and taking better advantage ofsite-specific design.”

An owner’s representative says hethinks that BIM could help with “the in-tegrated design process that LEEDprojects encourage.”

“I see every project in the future usingBIM, but until it is integrated into thedesign process from the beginning of aproject it will not [be] fully accepted byowners and the industry,” he says.

Still others hope that one day BIM canplay a role in ensuring that green proj-ects continue to meet their efficiencygoals throughout the ongoing operationand maintenance of a facility.

“While BIM aids in the design processand recording the predicted energyusage of a building, BIM should help in-tegrate ongoing measurement and veri-fication of actual building energy useand compare it to the predicted model,”says one sustainability consultant. “Thiscould help inform project [members]that their building may or may not beperforming to their assumed designedenergy standard.”

Source: McGraw-Hill Construction, 2009

Page 27: McGraw-Hill The Business Value of BIM

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Design documents convey a project’sfinished state. Typically, contractorshave to determine the means andmethods by which it will be built. Full-scale physical mock-ups of complexaspects, especially exterior envelopeconditions, are a common way to visu-alize the end result and test the con-structibility of a proposed design.Though extremely useful, these physi-cal mock-ups are expensive, so a teamwill usually only study a small fractionof the total project.

Jim Bostic, vice president of construc-tion at St. Joseph Health System inOrange, California, typically budgets$250,000 to $500,000 for a singleexterior envelope mock-up, focused ona project’s most potentially problematiccondition. On the new Mission Hospitalfacility, his design team proposed all-metal cladding, a new approach for St.Joseph, and he was concerned aboutits constructibility.

Modeling Mock-Ups

Having successfully deployed BIM onseveral recent projects, Jim decided toretain an outsourcing company to modelfive critical areas of the exterior claddingdesign at a high level of detail for closerexamination.

At this point, one physical mock-uphad been built; the fabricator’s shopdrawings for the exterior cladding hadbeen produced and approved; andphased fabrication had been sched-uled and was underway. But this mod-eling exercise uncovered enoughproblems in the five critical areas thatJim stopped the process and investedan additional $150,000 to fully modeleach piece of every condition on thebuilding envelope. This took threemonths, but was phased to match thefabrication schedule so issues wereresolved in a timely, sequential mannerthat minimized the schedule impact.

Added Costs Averted

As a result, 45% of all panels weremodified, affecting over 20,000 squarefeet of building surface. Jim estimatesthat the potential extra cost of not hav-ing identified these issues in advancewould have been $1,387,500.

“The core team [designers and con-tractors] really came together andworked out the problems,” he says.

Mission Hospital is scheduled for sub-stantial completion in September2009, and Jim is now requiring BIMfor the design and construction of allhis future projects, as well as involvingmore team members earlier in theprocess. Although the ROI can bechallenging to calculate because, ashe says, “you can’t always put a dollarfigure on costs you avoided,” from his40 years of building experience he issure BIM will save significant time andmoney for St. Joseph Health System.

Case Study:Virtual Mock-Ups

ImagescourtesyofSt.JosephHealthSystem

Page 28: McGraw-Hill The Business Value of BIM

Player Value of BIM

28

Overview: Adding It All UpJust as with buildings themselves, abuild team’s value is the sum of itsparts. When using BIM across anentire project, each firm has anopportunity to realize its owndistinct benefits. Companies maysee savings individually that collec-tively create significant value. Thesecould be tangible benefits that im-prove productivity, reduce costs andsave time. Although each player seesits own opportunities, most recognizethat value can also be gained byimproving the ability of every buildteam member to share data andbecome more integrated.

Project Participants Who are Perceivedto Experience the Most Value

52%

46%

42%

40%

34%

26%

23%

11%

Architects

Structural engineers

Construction managers/general contractors

Fabricators

MEP engineers

Owners

Specialty contractors

Building productmanufacturers/distributors

Very High/High

Who Gets Most Value?

Architects

The evolution of BIM started witharchitects, and many still see its valueemerging from its use in the designphases. Most in the design community,along with many contractors (43%)and owners (41%), say that architectsexperience a high level of value.

Structural Engineers

Nearly half of all users recognize thatstructural engineers can garner a highlevel of value from BIM. Such ele-ments as steel columns, beams andtrusses are frequently modeled byusers. Contractors are the most likely(47%) to see structural engineersrealizing significant benefits.

Construction Managers andGeneral Contractors

Money is largely spent and savedduring construction. Reducing reworkcan help keep budgets in line. Own-ers are the most likely (57%) to seea CM or GC as gaining high value ona project, most likely because thatsavings could be passed on.

Fabricators

As BIM reduces conflicts and cre-ates confidence in building plans,many team members see opportuni-ties for value in fabrication. Accuratefabrication of materials reduceswaste while preassembly can savetime. Contractors (56%) are far morelikely to see fabricators as experienc-ing high value than architects (23%),engineers (38%) or owners (30%).

MEP Engineers

There is a range of opportunities forMEP engineers to use BIM. Modelinglarger elements such as duct sys-tems and air handlers are approach-able options, while smaller elementssuch as electrical switches and out-lets might prove more challenging.Notably, very few engineers (22%)collectively see MEP engineers reap-ing high value. Nearly half of contrac-tors (45%) believe MEP engineerssee significant value.

Owners

Owners ultimately experience all valuecollectively gained on a project. Morethan half (52%) of owners say they ex-perience high value, but less than 30%of all other users believe this. This

could be because other team mem-bers recognize that owners have yet tosee much value from BIM for use inoperations and maintenance. Still,most owners believe they can bank onthe value of BIM during design andconstruction.

Specialty Contractors

Although specialty contractors arecharged with executing the complexi-ties of a project, few team members(23%) believe they are experiencinghigh value from BIM. On the whole,subcontractors are smaller firmsrelative to general contractors and thecosts of adopting BIM would be morepronounced. As BIM users employ awide range of software applications,subcontractors may face interoperabil-ity issues and incur added expenses towork within various models.

Building Product Manufacturers

Very few (11%) of build team mem-bers see building product manufactur-ers as gaining high value from BIM.This could reflect team members’belief that BPMs are not supplyingsufficient BIM-related information yet.

Source: McGraw-Hill Construction, 2009

Page 29: McGraw-Hill The Business Value of BIM

ArchitectsArchitects recognize BIM’s value in both definitive and more intangible ways. Produc-tivity can be improved as designers spend less time rekeying information or addressingthe concerns of other build team members. At the same time, BIM adds new dimen-sion to design and allows expanded levels of creativity and communication. BIMgained an early reputation as being design software, but architects see the need for anexpanded community of build team members to enter the BIM environment.

Efficiency

Architects see BIM as an opportunity to be more efficient. Among their top bene-fits reported, architects point to improved coordination of documents and drawingsthrough BIM. In part, this also helps free up designers’ time so that they can focus onbeing creative, rather than being bogged down with documentation. As their work getspassed on to other team members, they recognize that BIM can save time by reducingerrors and requests for information that could hamper the schedule.

The potential to improve productivity of personnel by using BIM is ranked by archi-tects as the top way that they can improve their ROI with the technology. Three-quartersof architects (74%) report this is a highly important factor, more than all other users.

Visual Impact

Architects sell ideas, and being able to effectively communicate is critical to winning a job andbringing vision to reality.Presentation and visualization of architectural design are reportedas key benefits realized through BIM. Although users can create data-richmodels, the 3Daspects of BIM remain a critical part of how the technology brings value to architects.

Architects say:

� Better multiparty communication and understanding from 3D visualization isthe top way that their firms currently see ROI on BIM. Eight in ten architects (79%)rank it as highly important.

� Improved collective understanding of design intent is the top way that BIMbrings value to a project. Two-thirds of architects (65%) rank it as highly important.

Teamwork

Architects realize that how they experience value through BIM extends well beyondtheir individual workstations. More than any other users, architects see a greater needfor more of the industry to have BIM skills. Architects say their firms would see morevalue from BIM if:

� There were more external firms with BIM skills (77%)

� There was more internal staff with BIM skills (73%)

� There was more incoming entry-level staff with BIM skills (59%)

29

Top Rated BusinessBenefits� Reduced errors and omissionsin construction documents

� Marketing new business tonew clients

� Offering new services

Perceived ROI

Negative

Break even

Less than 10%

10-25%

25-50%

50-100%

Over 100%

0

20

40

60

80

100

19%

23%

13%

19%

14%

7%5%

Architect

Architect PerspectivesDavid Ivey, BIM manager for HOK inChicago, is bullish on higher produc-tivity from BIM, though “most currentgains are still being re-invested inlearning.” He also noted, “We’re wayahead of traditional billing on ourBIM projects. Clients need to allowshifting fees to earlier phases.”

Design Group was working 100%in CAD in 2005. The firm, based inColumbus, Ohio, is now working en-tirely in BIM with 2.5 million squarefeet of BIM work in design, underconstruction or completed. BIMTechnology Manager Brian Skripaccites interoperability as the top in-hibitor of greater productivity gains atthe firm. Still, it is seeing success withBIM. A recent in-house BIM surveyshowed an 84% positive rating for“Overall Impact of Adoption,” com-pared to 57 percent industry-wide, asshown in McGraw-Hill Construction’s2008 SmartMarket Report on BIM.

Source: McGraw-Hill Construction, 2009

Key Findings� Architects are perceived to reap the highest value from BIM.

� Engineers see the most value in marketing BIM services and theproductivity gains created by BIM.

�Civil engineers lag behind structural and MEP engineers in adoption.

�Contractors reap the highest value from benefits related to costs.

�MEP contractors rank among the top BIM adopters.

�Owners see BIM as a valuable communication tool.

Page 30: McGraw-Hill The Business Value of BIM

30

EngineersMany engineers believe they can leverage BIM to their benefit. Given that engineersare more likely to report challenges with BIM, those who have become proficient atthe technology are using it to get a leg up on the competition. To reap more benefitsfrom BIM, engineers seek improvements. Insufficient software functionality and interop-erability issues can create challenges for some, hindering their ability to see value. Manyengineers also report that there is insufficient BIM content to meet their needs and thatthey don’t see its application to their practice.

Marketing

Engineers who use BIM believe they are in demand. The ability of some to use analysistools with BIM has the potential to bring value to an entire project. Those who canleverage those benefits see it as giving them an edge on the competition. Assuch, BIM can be an asset as firms look to drum up business.

Engineers say:

� Marketing new business to new clients is the top way that BIM benefits theirbusiness. Four in ten (43%) see this as highly beneficial.

� Offering new services is the second ranked way that BIM benefits their business.Nearly four in ten (38%) see this as highly beneficial.

� Positive impact on marketing is among the top three ways that engineering firmssay they see positive ROI.

Productivity

Engineers see BIM saving time and money. For them the analysis is simple: less prob-lems equals more profit.

� Reduced errors and omissions in construction documents is the third rankedway that BIM benefits their business.

� Reduced conflicts and changes during construction are among the top threeways that engineers say BIM adds value to a project.

Challenges

For engineers to maximize the value of BIM, they need to see improvements to soft-ware platforms and how they interoperate.

The top factors that would increase an engineering firm’s ability to see business benefits are:

� Improved interoperability between software applications. Eighty-three percentrated this as highly important, more than any other user group.

� Improved functionality of BIM software. Seventy-eight percent rated this as highlyimportant.

� More clearly defined BIM deliverables between parties. Two-thirds (65%) ratedthis as highly important.

Perceived ROI

Negative

Break even

Less than 10%

10-25%

25-50%

50-100%

Over 100%

0

20

40

60

80

100

32%

22%

23%

11%6%

2%4%

Engineer

Project Factors AffectingValue� Project complexity

� BIM-knowledgeable designprofessionals on the project

� Interoperability between softwareapplications used by team members

Most Beneficial Taskswith BIM� Presentation/visualization ofarchitectural design

� Spatial coordination

� Structural analysis

Engineer PerspectivesLarge multidisciplinary engineeringfirms—such as Parsons Brincker-hoff, Arup, Flack & Kurtz andJB&B—are leveraging BIM suc-cessfully on high-profile projectsaround the globe. But BIM is alsoproviding real business value formidsize regional and small localengineering firms.

Well-established MEP firms such asSpectrum Engineers in Salt LakeCity and Dunham Engineering inMinneapolis have adopted BIM as astrategic differentiator in their com-petitive markets and are winningwork as a direct result.

EMC Structural Engineers, a smallNashville-based firm, uses BIM forsteel, concrete and timber frameconstruction. Even though it is oftenthe only team member doing mod-els, EMC is experiencing a numberof internal and project benefits.“BIMreduces repetitive tasks, improvesquality control, promotes thinking in3D and improves communicationwith architects”, says Ben Beurgler,senior engineer at EMC. “We're justa small firm, doing small projects,but we see the value and we'vemade the commitment."

Source: McGraw-Hill Construction, 2009

Page 31: McGraw-Hill The Business Value of BIM

31

Engineers by DisciplineStructural Engineers

Structural engineers who use BIM do soto varying degrees. A survey of struc-tural engineers in the 2008 SmartMar-ket Report on BIM showed that four outof five BIM users frequently model steelcolumns, beams, trusses and concrete.More detailed elements pose a greaterchallenge. Three in ten frequently modelsteel details and reinforcing, while 6%model framework, according to the report.

Today, structural engineers who useBIM see benefits both internallyand at the project level. Compared toother engineers, structural engineersare much more likely to say BIM bringsvalue by:

� Helping maintain repeat businesswith past customers. This is theirtop-ranked internal benefit.

� Reducing overall project duration

Other highly ranked benefits:

� Presentation/visualization of ar-chitectural design

� Spatial coordination

MEP Engineers

Mechanical, electrical and plumbingengineers often work in great detail.A survey of mechanical engineers inthe 2008 SmartMarket Report on BIMshowed that a large majority of BIMusers frequently model duct systems,air handlers, grilles, diffusers and othermajor equipment, while one in fivemodeled energy management systemsand controls. Electrical engineers seemore challenges. Very few electricalengineers who use BIM reportedfrequently modeling any elements.

Competitive advantage

The level of challenge posed by model-ing detail in BIM could favor those whohave adopted it. MEP engineers whouse BIM recognize that it can be acompetitive advantage.

The top rated internal business bene-fits for MEP engineers are:

� Marketing new business to newclients

� Offering new services

Project Value

� MEP engineers are more likely tosee high value from cost estimationthan other disciplines.

� As with other engineers, users in theMEP fields rank presentation/visu-alization of architectural designand spatial coordination amongthe top benefits of BIM.

Civil Engineers

BIM is anemerging tool for civil engineers.Fewcivil engineers useBIM today, but theybelieve it will be valuable in the future (see“Adoption ofBIM” chapter).

Most Important Internal Benefits for Engineers

Very High/High

43%

38%

38%

35%

28%

28%

21%

19%

17%

17%

16%

10%

Marketing new business to new clients

Offering new services

Reduced errors and omissionsin construction documents

Maintaining repeat businesswith past clients

Younger staff’s learning of how buildingsgo together is improved

Reducing rework

Reducing cycle time of specific workflows

Reduced construction cost

Recruiting and retention of staff

Fewer claims/litigation

Reducing overall project duration

Increased profits

Those civil engineers who use BIMtoday see multiple opportunities forbenefits. Compared to other engineers,civil engineers who use BIM are mostlikely to say they see value in:

� Greater client engagement

� Greater community engagement

� Quantity takeoffs

� Spatial coordination

Although they do see project value, civilengineers lag behind in discoveringsome productivity and marketing oppor-tunities. Compared to others, civil engi-neers are far less likely to say BIM helps:

� Market new business to newclients

� Reduce rework

Source: McGraw-Hill Construction, 2009

Page 32: McGraw-Hill The Business Value of BIM

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ContractorsContractors see many of the most obvious and dramatic benefits of BIM. With thevast majority of a project’s cost dedicated to the construction phase, real sav-ings of time and money can be experienced in the field. By pre-planning thiersequencing and reducing conflicts and changes during construction, contractors canavoid many of the mistakes that erode budgets and schedules.

Cost Savings

Change is bad—at least during construction. As change orders add up on a job, sched-ules and budgets suffer. Contractors see that BIM can help reduce errors before theylead to rework in the field. Using BIM for clash detection while coordinating varioussubcontractors has proven highly effective for many users. Contractors report thatavoiding conflicts and changes are the top two ways that they save time and money ona project. . (see “A Model is Worth a Thousand Drawings” in Conclusions chapter)

� Reduced conflicts during construction is the top way that contractors say projectsgain value with BIM. The vast majority (83%) say this brings high value.

� Contractors point to spatial coordination as the specific task that shows the mostvalue. Eight in ten (78%) rated this at a high level of value.

Problem Solver

BIM can bring clarity to a complex project. Given that effective coordination bringsvalue, contractors see more opportunities to realize benefits as the level of complexityincreases. With greater confidence in the coordination process, many contractors arepushing for more prefabrication of systems and other building elements to help easeschedules.

� Project complexity is the top rated factor affecting value in a project for contrac-tors. Seven in ten (72%) rated this as highly important.

� Prefabrication of larger, more complex parts of projects will be the area wherecontractors expect to see the greatest value in the future. Nearly eight in ten (78%)expect prefabrication to bring high value in five years.

Individual Effort

Although many contractors using BIM see big benefits, working as a team can be achallenge. As contractors see significant savings through their own tasks, many maymake the decision to use BIM regardless of whether others are able to share BIMdata on a project. These issues will need to be addressed if BIM is to be broadly usedin an integrated environment.

� The vast majority of contractors (82%) say that better multiparty communica-tion and understanding from 3D visualization are top ways that BIM can im-prove value.

� Improving interoperability between software applications is the top way thatcontractors say they could increase the business value of BIM. Eight in ten con-tractors (78%) ranked it as highly important.

Perceived ROI

Negative

Break even

Less than 10%

10-25%

25-50%

50-100%

Over 100%

0

20

40

60

80

100

13%

16%

17%

25%

11%

8%10%

Contractor

Contractor Perspectives“Who should model what?” is a keyquestion for contractors.

“We do almost no modeling ourselves,”says Jim Barrett, national BIM man-ager at Turner Construction in NewYork. The company typically mandatesBIM to trade contractors because “itunlocks their creative juices and gen-erates ownership of the solution.”

At PCL Construction of Denver, alarge internal staff extensively mod-els all of its projects, with a specialfocus on self-performed concretework. The firm believes strongly inthe ROI of in-house BIM capabilityand plans to expand it.

Holder Construction Vice PresidentMike LeFevre uses BIM tactically tosolve specific problems that helpavoid risks from what he calls “GMPswith teeth.” He also asks trades tomodel for prefabrication, citing leanconstruction and green benefits.

David Morris, director of virtualconstruction at EMCOR, a nationalMEP contractor based in Norwalk,Connecticut, says he wants modelingon every job by “leveraging expertiseacross our offices and sharing filesand content libraries. The benefitsare just too outstanding.”

Source: McGraw-Hill Construction, 2009

Future Opportunities forValue� Prefabrication of larger, morecomplex parts of projects

� Better-designed projects

� Lower risk and better predictabil-ity of outcomes

Top Rated Benefits OtherThan Saving Time orMoney� Gives a competitive edge

� Visualization

� Marketing

Page 33: McGraw-Hill The Business Value of BIM

33

Most Important Internal Benefits for Contractors

Very High/High

58%

57%

56%

54%

42%

38%

33%

33%

32%

27%

24%

22%

Marketing new businessto new clients

Reducing rework

Offering new services

Reduced errors and omissionsin construction documents

Maintaining repeat businesswith past clients

Reduced construction cost

Younger staff’s learning of howbuildings go together is improved

Reducing cycle timeof specific workflows

Reducing overall project duration

Increased profits

Fewer claims/litigation

Recruiting and retention of staff

Contractors By DisciplineMEP Contractors

MEP contractors are champions ofBIM in the building industry. Four infive MEP contractors who use BIMsay they are seeing positive ROI inthe technology, more than other con-tractors and all other team members.

In light of those results, three in fiveMEP contractors say they haveadopted BIM. That rate ranks aboveother contractors and matches theadoption rate of architects.

� 44% are creating and analyzingmodels

� By comparison, 10% are using BIMtools to analyze existing models,showing that they are much morelikely to work in their own models, ei-ther by preference or necessity.

MEP contractors are reaping benefitsin many of the areas that most directlyapply to their trades. More than anyother contractors, the MEP tradesplace a high value on:

� Spatial coordination

� Shop drawing process

� Driving shop fabricationequipment

MEP contractors are also much morelikely to find value in quantity takeoffwith BIM compared to others, althoughat a moderate level.

General Contractors

A large majority of general contractorswho use BIM are reaping rewards today.More than seven in ten general contrac-tors are seeing positive ROI in BIM.Compared to others, they are most likelyto see ROI above 100%, with 14% ofgeneral contractors reporting returns atthat level.

The GC community sees a broad rangeof business benefits, especially those re-lated to productivity and communication.

� Spatial coordination holds thehighest value for general contractors.

� Presentation/visualization of ar-chitectural design is of high valueto them, more so than other contrac-tors.

� Reducing rework is also seen asproviding high value.

� General contractors are more likelythan others to say that BIM im-proves younger staff’s learning ofhow buildings go together.

Construction Managers

Construction managers are searchingfor value. Among all contractors, con-struction managers are least likely tosee BIM pay off, with 43% saying theysee positive returns on investment.Among those who do experience posi-tive ROI, most see returns below 10%.

Construction managers are adoptingBIM at levels on par with the industryas a whole (49%), but trail other con-tractors.

� 30% create and analyze models,less than other contractors

� 16% use BIM tools to analyze ex-isting models, more than othercontractors.

Like other contractors, constructionmanagers see value in:

� Presentation/visualization of ar-chitectural design

� Spatial coordination

� Offering new services

� Marketing new business to newclients

Source: McGraw-Hill Construction, 2009

Page 34: McGraw-Hill The Business Value of BIM

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OwnersOwners see the big picture. Even the most involved owner can’t be in the trenchesduring every phase and individual task of a project. Owners are looking for BIMto deliver results that can be seen in the project cost, speed of delivery andquality of the finished product. While owners ultimately could realize benefits thatextend into the operations and maintenance aspects of a project, few are seeingthose opportunities materialize yet.

Communication

Owners want to be kept in the loop. BIM expands the ways that project plans andprogress can be communicated to owners. Owners report that better understand-ing of projects in any or all stages is the top benefit beyond those that savetime and money. Likewise, owners want to see other team members improve theircommunication to keep projects on track.

Owners say:� Presentation and visualization of architectural design is the top task thatbenefits them during a project. Two-thirds rate this as providing high value.

� Improved collective understanding of design intent is the top way that projectscan gain value. Two-thirds rate this as contributing high value.

� Better multiparty communication and understanding from 3D visualizationis the second most important factor that could improve ROI in BIM. Three-quarters(76%) rate this as highly important.

Cost Savings

In the end, it all comes down to budget. Owners bear the ultimate cost of a projectand are highly interested in any opportunities for savings.

Owners say:� Clash detection and avoiding rework are the top ways that BIM saves time andmoney.

� Lower project cost is the third-highest way that they could see improved value of BIM.

Better Projects

Whether one or all team members on a project saw benefits by using BIM, owners seebig-picture value.

Owners say:� Overall better construction project outcomes is the top business benefit forthem. Half of owners (48%) see this as generating high value.

� Improved project process outcomes, such as fewer RFIs and field coordinationproblems, is the top way value could be improved. Half of owners (52%) see this asgenerating high value.

� Better-designed projects and better-performing buildings are the top twoways they expect to gain value from BIM in the future.

Perceived ROI

Negative

Break even

Less than 10%

10-25%

25-50%

50-100%

Over 100%

0

20

40

60

80

100

5%

25%

16%

34%

7%

2%

11%

Owner

Project Factors AffectingValue� BIM-knowledgeable designprofessionals on the project

� Interoperability between softwareapplications used by team members

� Project complexity

Top Rated Ways BIMSaves Time and/orMoney� Increased productivity/efficiency

� Improved coordination ofdrawings/documents

� Avoiding rework/changes

Owners PerceptionOwners who use BIM see a veryhigh rate of ROI, with seven in tenreporting positive results. Giventhose results, many owners expect thefirms that work for them to use BIM.

This is also true among those ownerswho have not adopted BIM themselves:

-Among owners who do not use BIM,only one in five estimate that de-sign and construction firms workingfor them are not using BIM at all.

-Nearly half (44%) of owners whodo not use BIM believe that firmsworking for them are using it on atleast a moderate number of theirprojects.

Owners’ view of BIM use on projectsappears to be higher than reality, giventhat half of the industry claims to useBIM or BIM-related tools today.Whether owners use BIM or not, manysee value today and expect the firmsthey hire to use it.

How Projects Gain Value� Improved collective understandingof design intent

� Reduced conflicts during construction� Improved overall project quality

Source: McGraw-Hill Construction, 2009

Page 35: McGraw-Hill The Business Value of BIM

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Software Industry Perspective:Interview with Jay Bhatt, Autodesk

Since then, the industry has embracedBIM as a process change, not just atechnology application. People tend toaffiliate process change with complexprojects…The fact is, most of our usersfall in the sub-10-person firm category.We don’t see a difference in adoptionbetween small, medium and large firms.

Users and non-users continue toraise concerns about interoperabil-ity. How is that being addressed?

Vendors are working hard on this issue.The biggest initiative here is to make ourown platforms—and most competitiveplatforms—have seamless data ex-change. The industry has talked aboutdifferent formats that make it easier to[exchange] sets of information. I’d love tosee that idea work, but it’s not clear if itwill or won’t. We’re not waiting for that.We want to say, “Let’s not have softwarevendors or tool providers constrain thechange toward BIM and integrated proj-ects. Let’s make sure it works.”

Like BIM, sustainability is a hottopic in the industry. Sustainabilityhas yet to prove very valuable for alarge portion of users. In the future,what will be the place for BIM in asustainable world?

Until recently, analytical and simulationtechnologies haven’t existed to under-stand how a building could be sustain-able. Meanwhile, [green] standardshave continued to evolve and are beingworked out…In the absence of a returnargument [because of new technology],you need top-down direction. We’restarting to see that with the public sec-tor mandating [green building]. Wehave a perfect storm gathering for thegreen building movement and BIM isthere with it.

Client demand is cited as the top fac-tor that drives the decision to useBIM, yet many owners have yet toadopt it themselves. How can client-driven demand be created underthose circumstances?

Spreading the value proposition of BIMin the building industry is counterintu-itive to the way change typically hap-pens. A lot of time change is top-downdriven. The BIM movement is moreviral. Architects picked it up first. Thencontractors and engineers began tosee value in it and started creatingmodels. Owners, who are seen as thedirecting force [in project decisions],have now started to see the valuegained from those models. They aretrying to figure out how best to applythis to their businesses and decide howaggressive they need to be in specify-ing BIM…Some owner segments, suchas retail, have been very aggressivearound BIM and do drive adoption.Other owner segments haven’t be-cause they are more focused on opera-tions and maintenance and thelong-term lifecycle issues, but you’restarting to see them get very visiblearound BIM because they believe it willultimately return [value] to the lifecycleof a facility.

Contractors have rapidly adoptedBIM in recent years. What is drivingthat trend and how will it impact thefuture outlook of BIM on projects?

[The contractor segment] are the fastestgrowing BIM adoption group that we see.For architects, it was a grassroots adop-tion that they saw as a better way to de-sign…Contractors look at analyticalaspects, simulation and cost technologiesthat leverage the database in the designmodel. If they can connect this rich infor-mation that represents a building being

created and connect it to a timeline sothat the team can better understand howit all goes together, they see obvious re-turns from that…As contractors are be-coming more savvy about BIM and canshow results, the owners now start towake up. It becomes a domino effect.

As a whole, engineers lag behind ar-chitects and contractors. What factorsdo you see contributing to that?

Some engineers, like structural engi-neers, are in many ways on the leadingedge of modeling, but MEP seems tobe the most challenged. There are sev-eral factors driving this. Unlike in archi-tecture, the draftsmen still exist verystrongly in MEP firms. In architectureyou don’t see the draftsmen. They aredesigners. They let the model help withthe drafts. That is a process change forthem. Secondly, MEP engineers arevery returns-centric. They are more likecontractors. They are into function andlooking for returns. Architects took a vi-sionary stance early. Engineers are verypractical. They want proof, just like con-tractors. Thirdly, they need analyticaltools. They don’t create a piping designbecause they appreciate the beauty ofpipe. They need to perform analysis.Until a few years ago when the industrystarted to provide analytical tools [inBIM] that allowed them to be proficient,it would have been very difficult for themto transition from the old workflow.

Many users believe that BIM is notas effective on smaller projects. Howdo you view the application of BIMbeyond the realm of large complexprojects?

There’s a lot of visibility around largeprojects with BIM. The perception ex-ists that…BIM is really only applicableto big projects because it’s a compli-cated paradigm shift. But BIM is notthat complicated. When we first pushedRevit out to the market, we wanted toshow how it was different from CAD.

Jay Bhatt, senior vice president ofAutodesk, AEC Industry Group, shareshis outlook on current and future trendsin BIM.

Page 36: McGraw-Hill The Business Value of BIM

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Adoption of BIM

Overview: Two Year Rise in BIM UseBuilding information modeling has quickly gained momentum, and much of the indus-try is adding it to their toolboxes. Half of respondents (49%) report using BIM orBIM-related tools.

The move into BIM is relatively recent with two-thirds of users adopting it within thelast three years. Data from the 2007 McGraw-Hill Construction SmartMarket Reporton Interoperability backs up this trend, showing that 28% of the industry was usingBIM or BIM-related tools at that time. This represents a 75% increase in use inthe last two years.

Meanwhile, users have quickly gained proficiency. In 2007, 14% of users categorizedthemselves as expert or advanced. Today, 42% are expert or advanced users—three times the amount in 2007.

User Differences� Architects, who were early adopters of the technology, remain the highest users ofBIM. Six in ten of all architects create BIM models with half of users alsoanalyzing them. Today, 43% of architects who use BIM consider themselves ad-vanced or expert users compared to 26% in 2007.

� Contractors are gaining ground faster than any other group, as more users discoverthe value of the technology beyond the pure design process. Half (50%) of con-tractors report using BIM or BIM-related tools—four times the level re-ported in 2007 (13%).

� Four in ten engineers (42%) use BIM, but they continue to lag behind archi-tects and have been surpassed by contractors in use. Many engineers reportthat they struggle to find sufficient BIM-compatible content to meet their needs orthey don’t see BIM’s application to their practice.

� Owners are gaining ground with more than one-third (37%) using it today—approaching the usage rate of engineers. This growth comes despite the factthat owners have yet to realize a significant impact from BIM on their own opera-tions and maintenance needs.

Growth in Expertise

Architect Engineer Contractor Owner

2007 2009

Advanced/Expert Users

26%

43%

16%

37%

5%

45%

8%

21%

Years Using BIM

0

20

40

60

80

100All Respondents

1 year 22%

2 years 26%

3 years 18%

4 years 10%5 years 6%

More than5 years

18%

Authoring Versus AnalysisUsers typically create models, ratherthan working with existing ones. Al-though some team members, such ascontractors and owners, use tools toanalyze existing models, a majority ofplayers author their own models. Insome cases, this could be because theteam member is the only one using BIMon a project. In other scenarios, multipleteam members may choose to createtheir own models that focus on their in-dividual needs rather than alter or addto an existing model.

User Differences

� Six in ten architects create BIMmodels with half of users also analyz-ing them.

� Engineers tend to author their ownmodels, although at a lower level thanarchitects (40%).

� While 12% of contractors use toolsto analyze existing models, one-thirdcreate and analyze their own models.This could be because models fromother team members either don’t exist,aren’t being shared or don’t providesufficient information for a contrac-tor’s needs.

� Owners are the least likely to createmodels (12%) and most likely to ana-lyze existing models (17%).

Source: McGraw-Hill Construction, 2009

Source: McGraw-Hill Construction, 2007, 2009

Page 37: McGraw-Hill The Business Value of BIM

37

OwnerContractor

EngineerArchitect

63%51%

58%42%

8%

4%

13%

28%

17%

12%

2%1%

12%

33%

27%29%

BIM Adoption and Usage

We are not using BIM

We are creating(authoring) models

We are using BIM toolsto analyze models but not creating ourown models

We are creating andanalyzing models

Depth of InvolvementAs building team members begin toadopt BIM, use of the technology isbecoming more commonplace on proj-ects. Its frequency of use can varygreatly depending on the need and theexpertise of the user.

� Two-thirds of experts use it on morethan 60% of projects.

� One in five beginners use BIM onmore than 15% of their projects.

� Among all users, a majority (55%)use BIM on less than 30% of proj-ects, while a quarter (27%) use itfrequently, on 60% or more of theirprojects. In part, this reflects thatBIM is still a new technology tomany users.

Differences in DisciplinesEngineers, as a group, trail othermain team players in their adoptionof BIM, but there are notable differ-ences between disciplines.

� Structural and MEP engineersare using BIM at levels similar toindustry-wide averages, while civilengineers lag far behind. Morethan four in five civil engineers arenot using BIM.

Looking toward the future, many engi-neers see significant changes ahead.

� Among BIM users, one quarter ofstructural engineers utilize it onmore than 60% of projects today.Twice as many of them expect to useit at that level in two years.

� Among BIM users, one in ten civilengineers utilize it on more than60% of projects today. That level ofinvolvement is forecast to almostquadruple in two years.

� Among BIM users, one in eight MEPengineers utilize it on more than60% of projects today. That level ofinvolvement is expected to almosttriple in two years.

Source: McGraw-Hill Construction, 2009

Key Findings�Half of the industry has adopted BIM, a 75% increase from two years ago.

�BIM use by contractors has quadrupled in the last two years.

� The rate at which BIM users utilize it on projects will double in two years.

� The U.S. West Coast has the highest concentration of BIM users.

�Non-users are open to adopting BIM in the future.

�Greatest challenges for non-users: 1) not enough time to evaluate BIM,2) software/hardware upgrades, 3) functionality doesn’t apply well to their practice

Page 38: McGraw-Hill The Business Value of BIM

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Significant Future GrowthWith gains in expertise, many of today’snew users will expand their use of BIMto more projects in the future.

� Two-thirds of users have adopted itwithin the last three years, and fre-quency of use is expected to growconsiderably in the near future.

� While nearly a quarter of users employBIM frequently on their projects today,the number using it at that level coulddouble in two years.

User Differences� Beginners are optimistic that they willexpand its use quickly. While 80% useit on 15% or less of projects today, only14% expect to use it at that level intwo years.

� Today’smoderate users will be to-morrow’s heavy users. One in tenmoderate users employ BIM on a ma-jority (60% or more) of projects, butnearly half expect to use it at that levelin two years.

�Architects expect the largest rise in BIMusewith two-thirds saying it will be usedon amajority of projects, compared to37%who use it at that level today.

� Roughly two out of ten engineers,contractors and owners who useBIM employ it on a majority of theirprojects. Four in ten expect to use it atthat level in two years.

Current and Future BIM Use

All Respondents – 2 YearsAll Respondents – Current

Architect

Engineer

Contractor

Owner

Beginner

Moderate

Advanced

Expert

2 Years

Current

2 Years

Current

2 Years

Current

2 Years

Current

2 Years

Current

2 Years

Current

2 Years

Current

2 Years

Current

6%

34% 17%

21%

25%18%

15-30%

30-60%

52%

27%

Less than 15%

More than 60%

25% 18% 20% 37%

5% 9% 19% 67%

40% 20% 19% 21%

9% 17% 31% 43%

37% 25% 17% 21%

4% 21% 32% 43%

41% 27% 14% 18%

11% 27% 20% 42%

80% 13% 5% 2%

14% 40% 31% 15%

37% 27% 23% 13%

6% 19% 31% 44%

10% 22% 24% 44%

2% 5% 19% 74%

5% 14% 14% 67%

3% 16% 80%

By Respondent Type

By Level of BIM Expertise

1%

Steady ProgressionBIMproficiencywill improve steadily, asusers advance to the next level in two years.

� 15% of beginners expect to use BIMon 60% or more of projects in twoyears—nearly the same level (13%)that moderate users are at today.

� 44% of moderate users expect to useBIM on 60% or more of projects in twoyears—the same level (44%) that ad-vanced users are at today.

� 74% of advanced users expect touse BIM on 60% or more of projectsin two years—more than experts areat today (67%).

Source: McGraw-Hill Construction, 2009

Page 39: McGraw-Hill The Business Value of BIM

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BIM Use In North America

38%NORTHEAST

45%SOUTH

52%MIDWEST

56%WEST

49%CANADA

Although nearly half of the industry in North America is using BIM or BIM-re-lated tools, there are strong regional differences in adoption levels. Researchconducted for the SmartMarket Report shows that the West Coast of the U.S.is outpacing other regions of the United States and Canada.

Fifty-six percent of respondents in the western U.S. said they are using BIM,tallying far ahead of the Northeast (38%). Canada has a 48% adoption rate.

Kevin Bredeson, director of virtual construction at Providence, R.I.-basedGilbane, says that a combination of sophisticated clients and the level of thecompetition is driving BIM use to higher levels in the West.

“There are a lot of savvy owners as well as more forward-thinking contractorsand architects on the West Coast,” he says. “A lot of it is owner driven and ittrickles down from there.”

James Barrett, regional manager of Construction Technologies at TurnerConstruction in New York, agrees, noting that northern California and thenorthwestern states are particularly interested in BIM.

Additionally, Barrett says there are strong pockets of activity around the coun-try, such as Texas, Chicago and Washington, D.C. Much of the activity in theMid-Atlantic states has been driven by federal work that requires BIM.

By comparison, Barrett says it is a challenge to find other build team membersusing BIM on jobs in the Northeast. “It’s unusual to get even a 2D electronicdrawing in New York,” he says. “On the West Coast, it’s standard that every-thing is digital. It’s a cultural issue where people [in the Northeast] are more re-sistant to change, and on the West Coast they have a more open-mindedattitude about experimenting with new methods.”

Source: McGraw-Hill Construction, 2009

Client Demand for BIMLack of client demand is the toprated reason AEC companies do notadopt BIM. But increasingly, con-tractors are mandating BIM fromkey trades and owners are demand-ing it from entire teams.

ENR Top 100 contractor LaytonConstruction of Sandy, Utah, man-dates BIM from key subs, especiallyfor health care work. BIM ManagerDamon Socha says BIM willingnessis now a prequalification and evenfirst-time users cooperate. Mostowners will pay extra to have subsmodel their work, he says. A sub’sdecision about how much to modelfollows a simple rule, he says. “If it’snot in your model, then you’re respon-sible for coordinating it and any costof moving it, which gets us prettycomplete models” he explains.

On the federal level, the U.S. GeneralServices Administration mandatesBIM for spatial validation on all proj-ects. The GSA goal is that teams willcontinue using it through construc-tion, which about half currently do.The U.S. Army Corps of Engineersmandates complete BIM for many ofits standard building types. Both agen-cies provide BIM guides detailing itsrequirements, but no financial support.

Wisconsin and Texas mandate BIM formost new projects. Texas plans to hosta master version of the project modelon its servers during design and con-struction, so that at completion it’s readyfor energy and facility management.

Many private owners are also man-dating BIM. John Moebes, directorof construction for Crate and Barrelof Northbrook, Illinois, runs an all-BIM nationwide program and is con-stantly pushing his teams to “deliverBIM value the board of directors willcare about.”

Adoption of BIM by Region

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Client Demand and Competition Drive AdoptionSavvy design and construction firms understand the need to keep pace with theircompetition and fulfill the needs of clients. Current BIM users recognize the impactthese factors have on the value of BIM to their businesses, listing marketing BIM serv-ices and satisfying client demand among their top ways value can be improved.

Non-users are influenced by these same issues when considering adoptingBIM. Many say they don’t see enough client demand and believe their competitionisn’t using it very much or at all. This perception doesn’t match industry trends. Non-users hold these views despite the fact that half of the industry is currently using BIMand that 70% of owners recognize that BIM brings positive return on investment.

Perceived Lack of Demand

Two-thirds of non-users say they haven’t seen enough demand from owners or otherproject team members to prompt them to try BIM.

� Four in five non-users (86%) believe current or prospective clients are either not usingBIM very much or not using it at all. Half of architects believe clients aren’t using it at all.

� One-third (35%) of owners who do not use BIM believe the design and construc-tion firms working for them are using BIM on a moderate number of other projects.Another third (36%) believe they are not using BIM very much.

Little Pressure From Competition

The vast majority of team members not using BIM do not see their competitionadopting it either.

� More than four in five non-users (89%) believe their competition is either not usingBIM very much or not using it at all. A third of engineers and contractors believetheir competition isn’t using it at all.

� Three-quarters (77%) of owners who do not use BIM believe that other ownerssimilar to them are either not using BIM very much or not using it at all.

Non-Users Remain Open-MindedAlthough nearly half of building team members aren’t using BIM today,most non-users are open to evaluating its potential benefits. These team members see nu-merous possible opportunities for BIM to pay off, but challenges lie on their path toadoption, primarily a lack of demand from clients and peers.With use of BIM ex-pected to expand significantly in the coming years, demand will rise and pushmore team members to put BIM to the test.

Key Findings About Non-users� Nearly half of non-users are open to exploring BIM’s potential value.

� Almost a quarter are already convinced it will be valuable.

� Almost a quarter are currently evaluating it, but haven’t tried it yet.

� Few non-users have no interest in using it (11%) or have tried it and decided not touse it (2%).

� Engineers who have not used BIM are the least likely to be actively evaluating it,but one-half are open to exploring its potential value.

� Architectural non-users have both the highest number not interested in BIM, and themost number actively evaluating it, a sign of this segment approaching a mature stateof adoption.

0

20

40

60

80

100

Perceived Frequency ofClients Using BIM

Not at all

Not very much, less than 15% of projects

A moderate amount, on 15-30% of projects

To a fairly largedegree, on 30-59% of projects

34%

53%

12%

1%

0

20

40

60

80

100

Perceived Frequency ofCompetition Using BIM

Not at all

Not very much, less than 15% of projects

A moderate amount, on 15-30% of projects

To a fairly largedegree, on 30-59% of projects

30%

55%

14%

1%

Source: McGraw-Hill Construction, 2009

Source: McGraw-Hill Construction, 2009

Page 41: McGraw-Hill The Business Value of BIM

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Challenges to AdoptionBeyond client demand, non-users see challenges that are of moderate to lesser con-cern when considering whether to adopt BIM. As a new technology, dealing withcosts and training issues have been the greatest hurdles on the path toadoption.

� Haven’t had sufficient time to evaluate BIM:With construction running atrecord highs in recent years, many firms had been too focused on their existingprojects to consider testing new methods. In light of the recent slowdown in newconstruction, firms may find this is not a significant issue moving forward.

� Software/hardware upgrades too expensive. Architects and engineers aremost likely to believe this, which could reflect the fact that they generally bring inlower revenues than contractors.

� Functionality doesn’t apply well enough to what we do. Engineers are mostlikely to believe this, which illustrates a belief that BIM is not addressing theirpractice-related needs.

� Insufficient BIM-compatible content available for my needs. Owners rankthis among their top reasons for not implementing BIM, which could indicate thatthey see BIM as more relevant to the work of other team members.

Most Important Obstacles to BIM Adoption

67%

49%

41%

35%

33%

Not enough demand from clientsand/or other firms on projects

Haven’t had sufficient timeto evaluate it

Software too expensive

Functionality doesn’t apply wellenough to what we do

Required hardware upgradestoo expensive

Very High/High

Issues With Little Impact on AdoptionSome issues that have been identified by users as challenging are not seen as signif-icant barriers to adoption by non-users. At least half of non-users say these factorshave little to no influence on their decision not to adopt BIM:

� Concerns about insurance/liability: 64%

� Current methods we use are better: 62%

� Poor interoperability with CAD applications: 54%

� Software too difficult to use: 51%

� Insufficient training available: 50%

Source: McGraw-Hill Construction, 2009

Importance of BIMin 5 Years

0

20

40

60

80

100

No importance

Low importance

Moderate importance

High importance

Very high importance

3%16%

39%

31%

11%

Source: McGraw-Hill Construction, 2009

Upbeat Future OutlookAbout two in five non-users (42%)believe that BIM will be highly or veryhighly important to the industry infive years. Only a small group of them(13%) say they either have no interest inusing it, or have tried it and decided notto use it again. The vast majority areopen to exploring it.

Evaluating factors that would promptnon-users to adopt, client requirementranks as the most important. Two-thirdssay they don’t see enough demand fromclients yet. However, 55% of ownerssay that BIM will be highly or very highlyimportant to the industry in five years –more than any of the other team mem-bers surveyed. If owners see BIM asimportant and can push it as a require-ment, more adoption will follow. (SeeClient Demand for BIM on page 39).

Believing in the cost effectiveness ofBIM ranked as the second most impor-tant factor that would encourage adop-tion. And when asked about reasons fordelaying adoption, concerns about BIM’scost and it’s effectiveness on smallerprojects are the top two reasons given.Six in ten (59%) non-users believe thatBIM seems less efficient for smallerprojects, while 54% list cost required asa limiting factor. Firms that focus onsmaller jobs need to understand BIM’svalue in that context in order to makethe investment.

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Factors Influencing Decision to Adopt BIM in the Future

71%

70%

68%

66%

61%

59%

55%

55%

53%

50%

More accurate construction documents

Improved communication between all partiesin the design and construction process

Reduced number of field coordination problems

Owners demanding it on their projects

Improved budgeting and cost estimating capabilities

Reduced construction costs

Less time drafting; more time designing

Safer worksites

Reduced number and need for information requests

Improved scheduling capabilities

Very High/High

Influential BenefitsJust like those who have already cham-pioned BIM, non-users want to see itimprove efficiency, eliminate errorsand reduce costs.

Accuracy

Improved accuracy is a big potentialdraw for non-users. Seven in ten are en-ticed first and foremost by the potentialfor BIM to providemore accurateconstruction documents. Every teamplayer ranks this among their top bene-fits. Reduced number of field coordi-nation problems is also seen as acritical benefit by all non-users.

Productivity

Productivity issues are also drivingfactors. All non-users list improvedcommunication between all partiesin the design and construction

process among their top benefits,especially owners. Naturally, architectswelcome the prospect of less timedrafting; more time designing.Owners and contractors highly rankreduced number of and need forinformation requests.

Schedule and Budget

Saving time and money is a core goalof any building team, especially own-ers. Contractors and owners would liketo see BIM lead to reduced construc-tion costs. Both rank it among thebenefits that would most influencetheir decision to adopt BIM. All usersexcept engineers say improvedscheduling capabilities as wellas improved budgeting and costestimating capabilities would be in-fluential factors.

Less Influential Factors

Less than half of non-users said thesepotential benefits would highly or veryhighly influence in their decision toadopt BIM.

� Reduced construction schedule

� Increased ability to use leanconstruction techniques

� Improved code checking, compli-ance

� Reducing litigation, insuranceclaims

� Improved ability to do sustainabledesign and construction

� Parametric modification of designs

� Improved operations, mainte-nance and facility management

� Improved ability to do digitalfabrication

Source: McGraw-Hill Construction, 2009

Page 43: McGraw-Hill The Business Value of BIM

43

Forman is particularly enthusiastic aboutBIM enabling better constructibility. “Allthe wiring is in conduit,” he explains. “It’seasy just to say ‘field route that,’ but howdo you know it’s even possible? WithBIM we know. In fact we developed newpipe supports for the conduit to ensureit.” And quantities extracted from themodel are “almost exactly” what theindependent estimators found doingtraditional takeoffs.

DOE expects the project will take three tofour years to construct. Forman is explor-ing ways to use the model to reduce con-struction time and is also planning to useit to train employees at the facility virtuallybefore occupancy, taking months out ofthe traditional startup phase.

Fouché has high praise overall for DOE’suse of BIM on this project, saying theagency “really knows why they want touse it, in the places it makes an impact. It’sall about knowing your building better.”

Case Study:Department of Energy

The U.S. Department of Energy’s NationalNuclear Security Administrationprocesses nuclear and high-explosivematerials at its Pantex complex in Amar-illo, Texas. CH2M-Hill is providing fulldesign services for a new $100 million,45,000 square-foot high-explosivespressing facility there. Unique project fea-tures include multi-layered blast-resistantconcrete architecture, extensiveprocess piping, sophisticated operatingequipment, and eight separate electri-cal and control systems.

When conventional CAD constructiondocuments were 95 percent complete,the project went on hold for funding andscope review. Although DOE had littleexperience with BIM, Pantex project en-gineer Stephen Forman was inspired bylessons learned from other DOE proj-ects where problems could have beenprevented using BIM. Taking advantageof this hiatus, Forman modified CH2M-Hill’s contract, giving them four monthsto convert the CAD design into BIM.David Fouché, senior technologist forCH2M-Hill, was eager for this opportu-nity. “This is a great case for ‘It’s nevertoo late’” he says.

To optimize spatial coordination in thissystems-intensive facility the teamdecided to model everything down to¾-inch conduits. They also modeledevery piece of equipment, includingcranes and robotics that could be ani-mated to demonstrate their operation.Forman wanted to be able to “seeeverything” so his team could under-stand critical interfaces between struc-ture, systems and operating equipment.

The modeling proved highly valuable.Clash detection software identifiedthousands of collisions but more impor-tantly, virtually “walking through” everyroom with the operations staff uncoveredover 500 serious problems. In one case,“the user wouldn’t be able to function be-cause the crane would get in the way,”Forman recalls. As a result, the craneswere redesigned to work properly.

Independent cost estimators calculated a$10 million savings generated by themodeling effort. “You’re building a V-8engine inside a building, so it’s worth it toget it right,” Fouché says.

Interior bay with animated equipment models that simulate operation

ImagescourtesyofB&WPantex,CH2M

Hill,DOENNSA

Complex systems are modeled down to ¾” conduit for precise coordination

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Industry Issue:Opportunities and Obstacles for Engineers

In the expanding world of BIM, manyengineers find themselves stuck in themiddle. On one side, most architectsare transitioning to BIM, and those whohave made the move often expect theirsubconsultants at engineering firms todo the same. On the other side, con-tractors are rapidly adopting BIM,driven in large part by the tangible sav-ings in cost and time that are possibleduring the construction phase. Above itall, more owners are pushing for BIMuse in project teams.

Meanwhile, engineers see mixed results.Adoption is slow in some disciplines asfirms struggle to fit BIM into their prac-tices and gain value. Results from thisSmartMarket Report show that 42% ofengineers use BIM or BIM-related tools,compared to 58% of architects and49% of contractors. Most engineers whouse BIM perceive that they break even(22%) or lose money (32%) on BIM,while most architects and contractorssee positive returns.

Solving the value proposition in theengineering world can be tricky, as afirm’s discipline, size and ability to re-think its internal processes all factorinto the equation.

While engineers as a whole lag behindother team members, many structuralengineers are champions of BIM. Thelarge elements designed by structuralengineers—such as steel columns,beams, trusses and concrete—areeasier to model than smaller elementsneeded by disciplines such as mechani-cal, engineering and plumbing, saysErleen Hatfield, principal at ThorntonThomasetti in New York.

“It fits well with what we already do, andusing BIM has increased our productivityas a result,” she says, noting that the firmuses it on all projects.

On the new $1 billion MeadowlandsStadium project being built in EastRutherford, New Jersey, Hatfield esti-

mates that using BIM enabled ThorntonTomasetti to save at least three monthsin the schedule.

The firm shared its models with thesteel fabricator, who pulled an ad-vanced bill of materials from the dataand saved nearly four weeks in theschedule.

The structure’s most complicated con-nections were also detailed in modelsthat were passed on for use by thecontractor, Skanska USA Building ofNew York. The project, which brokeground in 2007, was five monthsahead of schedule when steel erectionwas finished. The project is on track forcompletion in 2010.

Even smaller firms see BIM playing amajor role on structural engineeringjobs. EMC Structural Engineers inNashville, Tenn., which has eight engi-neers on staff, has followed client de-mand and moved into using BIM. Ben

Buergler, senior engineer at EMC, saysmost elements are easy for his firm tomodel in BIM, with some exceptions,such as wood trusses.

However, Buergler says, the firm hasyet to explore the technology as a trueengineering tool. Although it drafts inBIM, it is unable to do analysis. The firmis currently committed to a structuralanalysis program that isn’t interopera-ble with its BIM software.

“As a small firm, we can only take onone transition at a time,” he says.“We’ve made the move to BIM fordrafting, but trying to switch both draft-ing and analysis is too great of a taskright now.”

As a result, Buergler says the firmdoesn’t see any productivity gains fromBIM today, but he is hopeful that willchange.

“Once we can link drafting and analysis,we’ll see some real benefits,” he says.

Structural model of Meadowlands Stadium, East Rutherford, N.J.

ImagecourtesyofThorntonThomasetti

Page 45: McGraw-Hill The Business Value of BIM

45

“We know it’s coming. We know wehave to invest. For now, the benefit isthat architects are demanding it andwe can provide that service.”

Many MEP engineering firms see simi-lar issues, but some concerns are mag-nified. McGraw-Hill Construction’s2008 SmartMarket Report on BuildingInformation Modeling showed thatlarge mechanical elements such asductwork and air handlers were fre-quently modeled by MEP engineerswho use BIM. However, few MEPusers reported modeling electrical ele-ments, which are much smaller bycomparison.

WSP Flack & Kurtz began 3D model-ing five years ago and within a fewyears started building a library of smartcontent, says John Bredehorst, execu-tive vice president and managing direc-tor of the firm’s New York office.Because there is little existing contenton the market, Flack & Kurtz has de-veloped most of its libraries in-house,creating content for multiple softwareplatforms.

As projects increasingly move towardBIM and models get more complex,Bredehorst says the company is alsoinvesting heavily in hardware upgradesto handle storage capacity demandsand computing power needs.

Years into the process, he says, thecompany is “close to breaking even” onits investment in BIM. Like many earlyadopters, Bredehorst takes the longview of BIM.

“We know this will be important in thefuture and we want to be out front andshaping it, rather than come in at thetail end and be a follower,” he adds.“We jumped in with both feet and knewsome would be written off as trainingand development, but that’s the cost ofdoing business.”

Many early adopters are banking onbenefits that could result from thatsame pioneering spirit. As some oftheir peers have yet to invest in BIM,those firms with existing BIM expertise

see significant marketing opportuni-ties. MEP firms are most likely to seemarketing new business to new clientsas the top business benefit of BIM,according to results from this Smart-Market Report.

Matt Jensen, project manager at Dun-ham Engineering in Minneapolis, sayshis 85-person firm made the move intoBIM two years ago to give it a competi-tive advantage, as more architects de-manded it and few competitors wereable to comply. The move has paid offfor business development, as two ofthe company’s largest clients havecommitted to working 100% in BIM bythe end of 2009.

While the firm may not see benefits inthe form of improved productivity yet,Jensen says the marketing gains areclear.

“We wanted to be out front,” he adds.“Not a lot of firms have made this jump.In an environment like we’re in today,a lot of people don’t want to make theinvestment, so we see ourselves asahead of the game.”

Mark Brumfield, senior principal atHeapy Engineering in Dayton, Ohio,agrees that process change is criticalin BIM adoption for engineers.

“I’ve heard engineers say, ‘Aren’t wedoing the contractor’s job for them?’”he says. “My question back is, ‘Doesyour design work?’ If you’re dependingon a contractor in the field to deter-mine if it works, you’re not doing yourjob well enough.”

Heapy Engineering adopted 3D mod-eling six years ago and over time it hasmodified its practices to leverage thebenefits of the software.

“You have to be smart and understandwhat the software does,” he says. “Youshift time and effort to where it’sneeded. If you fight the software, it willwin every time and it will be painful.”

That shift also means rethinking theidea of value, Brumfield says. Althoughhe can’t say if the firm has improved itsprofitability by using BIM, using it hasled to a 75% decrease in changes—afact that doesn’t go unnoticed byclients.

“Project productivity is a benefit,” hesays. “There’s value in that.”

ImagecourtesyofHeapyEngineering

Heapy Engineering, which created this model for its Adams County Hospital project, hasmodified its internal processes to better leverage the benefits of BIM.

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Case Study:BIM on Heavy Civil Projects

Deep-bore tunnel model of the Alaskan Way Viaduct, Seattle, Washington.

ImagecourtesyofParsonsBrinckerhoff

Among many in the design and construc-tion industry, building information model-ing is trapped in a vertical world. Its initialdevelopment as a design tool aimed pri-marily at architects helped lay a path thathas led to widespread use of the technol-ogy in the building sectors. But anemerging group of users in the heavy civildisciplines see valuable applications forBIM on horizontal projects, paving theway toward a range of new opportunities.

“People shouldn’t look at the word ‘build-ing’ in BIM as an actual building, but asthe verb ‘to build,’” says Jay Mezher, de-sign visualization manager for ParsonsBrinckerhoff in Seattle. “It’s not limited tovertical structures. You can model andanalyze as many issues in horizontal proj-ects as you can in buildings.”

The civil world is starting to get the mes-sage. Research for this SmartMarket Re-port shows that civil engineers lag behindothers in their adoption of BIM. Morethan four in five civil engineers are notusing BIM today. However, its use in thecivil engineering community is gainingtraction. Among BIM users, one in tencivil engineers utilize it on more than60% of their projects, but that level of in-volvement is expected to quadruple intwo years.

In the transportation sectors, ownersare beginning to take notice. CosimaCrawford, chief engineer for the NewYork City Transit Authority, predicted inan August 2, 2009, article in Engineer-ing News-Record that, “in 10 years, wewill be living in a BIM world. It’s our newreality.”

In New York, that reality is becomingclear. The New York City MetropolitanTransportation Authority used virtual de-sign and construction on the $1 billionFulton Street Transit Center and the $4.5billion Phase One Second Avenue Sub-way project, particularly for visualizationsand time sequencing.

Simulated in Seattle

PB began using VDC at the Alaskan WayViaduct and Seawall Replacement projectin Seattle in 2004 and has seen its appli-cation evolve over time. The project aimsto replace the existing Alaskan WayViaduct, a critical elevated highway thatwas damaged by an earthquake in 2001.

Initially, PB’s efforts were focused onproject visualization for public outreach.The team modeled two options—an ele-vated structure and a tunnel—creating afive-minute video that would allow thepublic to visualize driving through theproposed alignments. In addition to mod-eling the structures themselves, the sur-rounding existing buildings were createdin 3D. To improve the sense of virtual re-ality, cars, trees and people were addedto the animations.

In addition to traffic simulations, the mod-els also played a critical role in supportingenvironmental impact studies, showingpedestrian views of the project. The teamblended actual photos with the 3D modelto create a more realistic sense of place.

“We were beginning to build the entirecity in 3D,” Mezher says. “Since it’s anurban-scale project, we had GIS datathat we could use; we had the footprints

of the buildings; and we had the build-ing heights. It was all a very accuraterepresentation.”

As the database of project-related infor-mation began to grow, other tasksemerged. To help show the potential im-pact on the local community, PB createdvisual simulations of construction phas-ing. Data from multiple traffic studieswas added to the model so viewerscould accurately visualize the impact thatconstruction might have on traffic. An in-teractive web tool was created to helpshow traffic during each constructionphase and at different times of the day.

Although the two original alignmentswere rejected, the database was avail-able for use on ten new options thatwere created. Among the alternativeswas a deep-bore tunnel that requiredmodelers to add in all of the basementsof surrounding buildings as well as exist-ing railroad, sewer and utility tunnels. Atthis point, the team’s modeling tasksbegan to transition from a tool to helpwith public presentations to one thatcould guide design decisions.

“We already had this database and thesemodels to pick and choose from,” Mezheradds. “We could not only to show what

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47

the options were, but during the designprocess they started asking us to modelevery single option and compare themfrom different camera angles. Ultimately,we helped the design team make moreinformed decisions about where the bestpotential alignments would be.”

In April 2009, the deep-bore tunneloption was approved, and PB hascontinued to leverage its models fordesign purposes. Accurate daylightingstudies have been drawn from themodels, combining the geo-referencedcoordinates with exact daylighting atdifferent times of the day or year.

At the south end of the tunnel, the modelwas linked with a 100-activity scheduleto generate a 4D model that simulatesconstruction sequencing.

“We’ve been able to move into a very in-tegrated approach,” Mezher says. “Wecall it a CAVE—computer analysis visualenvironment. We bring in key stakehold-ers to one joint meeting, open up the 3Dmodel and work through any issues.We’ve been able to answer 85 percentof all questions on the spot.”

As the ten-year construction projectmoves ahead, Mezher expects the modelto continue to bring value.

“The idea is to pass this on for construc-tion purposes and even operations andmaintenance,” he adds. “Once you havethese built, if you keep them updated theuses could carry on well past design.”

Overcoming Conflicts

Some in the heavy civil constructionworld are already seeing the potential forBIM to bring value. The Walsh Group ofChicago is banking on BIM for its waste-water treatment plant projects, especiallyfor conflict resolution.

“Just like in vertical buildings, we see it asa way to reduce errors,” says Dan Klanc-nik, VDC manager at the Walsh Group inChicago. “Conflicts tend to be muchmore expensive in treatment plants andheavy construction than in commercialwork, so the benefits are easily realized.”

Given that commitment, the company isusing BIM even when others on a projectare not. Archer Western of Atlanta, a sub-sidiary of Walsh, used BIM on the $76million Central Arizona Project watertreatment plant expansion, building mod-els from 2D drawings created by theproject engineers.

Klancnik says the company spent$40,000 to create the models, but identi-fied more than $150,000 in systemclashes. Requests for information werealso reduced by an estimated 75%, withzero change orders. Klancnik says thatthe 12 people who worked on the modelduring preconstruction saved the work ofdozens in the field later, helping shavethe 28-month schedule by five weeks.

Field Experience

Sundt Construction of Phoenix has alsotaken a horizontal view of BIM. DanRussell, simulated construction managerat Sundt, says the company has seensuccess in wastewater treatment plantsand now is exploring it on highway andtransit projects.

Russell says Sundt is approaching under-ground utility modeling the same way it

would approach building systems, usingit to identify potentially costly clashes.

“The idea came from a light rail job weworked on,” he explains. “The as-builtinformation said certain utilities were incertain locations, but we hit a gas line.We went back to the design team andtold them the as-builts weren’t right andwe stopped working. They came backwith new information and the first timewe stuck a bucket in the dirt, we hit a lineagain. That’s when we realized weneeded to be modeling this just like inthe building world. If we can use it toavoid issues in buildings, we can use it tohelp avoid hitting things like gas linesand fiber-optic cables that cost a lot oftime and money.”

Russell says the next goal is getting themodels tied into the company’s surveyequipment and GPS-guided heavy equip-ment to help with tasks such as layout.

“At first the uses of BIM in civil aren’tobvious, but once you see them, you canget just as much benefit in the heavy civilworld as in the building world,” he says.

ImagecourtesyofTheWalshGroup

The Walsh Group identified $150,000 in system clashes at Central Arizona Project watertreatment plant expansion project near Phoenix, Arizona.

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Impact of skill level on internal benefits(rated High or Very High value)

Beginner Expert

7% 43%

14% 58%

Reducing rework 23% 77%

Maintaining repeat business with past clients 19% 61%

Offering new services 28% 72%

Marketing new business to new clients 28% 71%

Improving productivity of personnel 46% 71%

Increasing profits

Reducing cycle time of specific workflows

Winning Business andGrowing the CompanyAEC BIM users cite its positive impacton marketing and providing new serv-ices. Reflecting their recent surge ofadoption, nearly 25% of contractorspicked this over all other internal BIMbenefits not related to time or money.And looking to the future, the top BIMinvestment 5 years out will be “Market-ing your firm’s BIM capability.”

But as BIM becomes mainstream howwill users convey the unique value oftheir particular approach to BIM-savvyclients? Industry leaders will need tokeep innovating to stay ahead of fastfollowers.

Getting BIM to the Bottom LineThe business case for BIM is rapidly taking shape around the themes of productivityand profitability.

When asked to identify the most important way BIM is saving time and/or money fortheir company, 77% of BIM experts cited “increased productivity/efficiency” andother productivity-related benefits. And all of the productivity-enhancing benefitsnoted as highly valuable by BIM users show a significant increase in impact as expe-rience and skill level advance, promising a steady path to increasing productivitygains for BIM implementers.

Although the direct impact of BIM on profitability currently scores somewhat lowerthan other productivity benefits, the cumulative effect of all these benefits will mostcertainly help BIM find its way to the bottom line.

Conclusions

BIM Experience Highly ValuedBIM users would rather work with strangers who know BIM than with friends whodon’t. A majority of users (between 55% and 74%, depending on the discipline)gave high value to other team members on a project having BIM experience. Thisdisplaces the traditional favorite of “previous experience working together,” whichonly scored 42%. Additionally, when asked to rate factors that would most enableimproved ROI, 66% of BIM users gave a high score to “more external firms with BIMskills.” This shows that adoption needs to accelerate to meet demand.

Responsibility + Control = Lower RiskShifting detailed design and modeling to trade contractors is an increasing trend onBIM projects. This may be one of the reasons the data shows MEP engineers trailingall other design professionals, while MEP contractors boast a significantly higherpercentage of expert and advanced users than construction management, generalcontracting and other contractor types.

The business benefit of this trend derives from aligning responsibility with control,encouraging trade contractors to become more engaged in problem solving and opti-mization. As a result, these contractors would be more willing to accept responsibilityfor the outcome because they have greater ownership of it and control over it.

Going forward, the practical question of “who ought to do what” on projects willincreasingly challenge traditional roles, scope definitions, and contracting and com-pensation arrangements, as well as liability issues. BIM is a game changer.

Future Business ValueBusiness benefits related to visualiza-tion and spatial coordination (clashdetection) dominate the current per-ception of BIM value. But significantnew benefits are emerging, such asmodel-driven prefabrication, which77% of contractors predict will be thedominant value five years from now.And 80% of all expert users share thatview. Growing those skill sets now willcertainly pay off.

“In 10 years, we will beliving in a BIM world. It’sour new reality.”

Cosima CrawfordChief EngineerNew York City Transit Authority

“I don’t know how you’ddesign and build amedical facility todaywithout BIM.”

Douglas Fitzpatrick, P.E.Fitzpatrick Engineering Group

Page 49: McGraw-Hill The Business Value of BIM

49

A Model is Worth a Thousand DrawingsThe business value of visualization is a strong theme running throughout the researchresults. When asked about the single most important way (other than saving time ormoney) BIM is improving their company, 40% identified benefits directly related tovisualization. And 93% of expert BIM users designated “Better multi-party communi-cation and understanding from 3D visualization” as providing high or very high value.

But visualization is not about making a pretty picture. Its real power derives fromlinking project information—the “I” in BIM—with graphics, giving everyone the abilityto “see the data”. As rendering, simulation and animation technologies continue toadvance, visualization will increase the value of modeled information for everyone.

Convergence of BIM, Lean and GreenAnother emerging trend to watch is the convergence of three previously separate butrelated streams of innovation: BIM, lean and green.

In research for this SmartMarket Report, only 3% scored “positive impact on sustain-ability” as a top-rated business benefit of BIM, with 12 other benefits ranking higher.For some, the functionality of the software needs to catch up to the sophistication ofthe users.

“BIM is effective for the people who are new to LEED, but less effective for the peoplewho are already masters of it,” says Scott Kelly of Seattle-based KPG, Inc, who recentlycompleted a U.S. Green Building Council LEED Platinum-certified project.

But an increasing number of practitioners are seeing the opportunities to jointly lever-age these three initiatives. “BIM is the tool; lean is the process,” says James Barrett,regional manager of Construction Technologies at Turner Construction in New York.Barrett says the combination will prove to be the “killer app” for virtual design and con-struction, helping create high-performance buildings in the most efficient way.

Flowing as-built models into operations and maintenance offers another opportunity toconnect sustainable design objectives to real-world performance. Seema Pandya, sen-ior consultant with New York-based YRG Sustainability, says that, “while BIM aids in thedesign process and recording the predicted energy usage of a building, BIM shouldhelp integrate ongoing measurement and verification of actual building energy use andcompare it to the predicted model to inform owners how their building is performingagainst the designed energy standard.”

BIM Adoption: WestLeads East 56 to 38Author William Gibson’s line, “Thefuture is already here, it’s just notevenly distributed,” applies perfectlyto the current state of BIM adoption.

With a 56% adoption rate, the WestCoast of the United States outpacesthe Northeast (38%) by a factor ofalmost 1.5, while other regions fallbetween these extremes.

This is significant to owners lookingto roll out national BIM programs andfor BIM-oriented contractors lookingfor model-capable subs and suppliersto help them expand geographically.

Industry organizations should increaseefforts to inform their members in allparts of North America about BIM.

Additionally, institutions of higher learn-ing should produce graduates who areready to work in this new environment.In fact, 54% of BIM users highly rated“more incoming entry-level staff withBIM skills” as a way to help them in-crease the ability to experience busi-ness benefits of BIM.

“BIM is the tool.Lean is the process.”

Jim BarrettNational BIM ManagerTurner Construction

“BIM is the greatest thingfor a young architect thatever existed. There’smore opportunity herefor the single practitionerand the small firm thanever before.”

Paul SeletskyDirector of Digital DesignSOM

HOK and Holder Construction modeled a maze of below-grade utilities so foundationcontractors could “see” where to delicately weave new foundation members among them.

Images courtesy of HOK (top left), Emory University (bottom left) and Holder Construction (top right)

Page 50: McGraw-Hill The Business Value of BIM

50

Resources andMethodologyMcGraw-Hill Construction• MainWebsitewww.construction.com

• BIMWebsitewww.bim.construction.com

• Research and Analyticswww.analytics.construction.com

• Architectural Recordwww.archrecord.construction.com

• Engineering News-Recordwww.enr.com

Premier GovernmentPartner• U.S. Army Corps of Engineerswww.usace.army.mil

Association Sponsors• American Council of EngineeringCompanies www.acec.org

• American Society of Civil Engineerswww.asce.org

• American Society of ProfessionalEstimators www.aspenational.org

• American Subcontractors Associationwww.asaonline.com

• Construction ManagementAssociation of Americawww.cmaanet.org

• Construction Owners Association ofAmerica www.coaa.org

• The Construction SpecificationsInstitute www.csinet.org

• National Association of EquipmentDistributors www.naed.org

• Society for Professional ManagementServices www.smps.org

Premier Corporate Partner• Autodeskwww.autodesk.com/bim

Corporate ContributorSponsors• HOK www.hok.com

• Mortenson Constructionwww.mortenson.com

• Parsons Brinckerhoffwww.pbworld.com

• PCL Construction Enterprises, Inc.www.pcl.com

• Turner Construction Companywww.turnerconstruction.com

• The Weitz Companywww.weitz.com

Premier AssociationPartners• The American Institute of Architectswww.aia.org

• American Institute of SteelConstruction www.aisc.org

• ASFE www.asfe.org

• The Associated General Contractorsof America www.agc.org

• buildingSMART Alliancewww.buildingsmartalliance.org

• Construction Users Roundtablewww.curt.org

• Design-Build Institute of Americawww.dbia.org/pubs/

• Mechanical Contractors Associationof America www.mcaa.org

• Architecture Canada—The RoyalArchitectural Institute of Canadawww.raic.org

• Sheet Metal & Air ConditioningContractors’ National Associationwww.smacna.org

BIM Survey MethodologyMcGraw-Hill Construction conducted the 2009 Building Information Modeling Study to assess adoption of BIM across the construction industry and to gauge the perception ofvalue that firms are receiving by implementing BIM. The research in this report was conducted through an Internet survey of industry professionals between May 28 and July 2, 2009.The survey had 2,228 complete responses. The “total” category displayed throughout the report includes 598 architects (27%), 326 engineers (15%), 817 contractors (37%), 118owners (5%), 73 building product manufacturers (3%) and 296 other industry respondents. In addition, MHC further segmented the engineers and contractors categories.

The use of a sample to represent a true population is based on the firm foundation of statistics. The sampling size and technique used in this study conform to accepted industryresearch standards expected to produce results with a high degree of confidence and low margin of error. The total sample size (2,228) used in this survey benchmarks at a 95%confidence interval with a margin of error of less than 5%. For each of the architect and contractor respondent groups, the confidence interval is also 95% with a margin of error of5%. The engineers respondent group had a confidence interval of 95% with a margin of error of 5.4%; while the owners group had a confidence interval of 95% with a margin oferror of 9%. For the top three engineers subcategories (structural, civil and MEP) and top four contractor subcategories (mechanical/sheet metal/plumbing subcontractors, generalcontractors, construction managers and estimators) the confidence interval ranges from 90% to 95% with a margin of error ranging from 7% to 14%.

BIM Survey Methodology Respondent Profile

Other Contractor Role

Curtain Wall Fabricator /Installer

Civil / Site /Geotechnical Contractor

Concrete Fabricator /Contractor

Electrical Contractor

Steel Fabricator / Erector

Estimator

Construction Manager

General Contractor

Mechanical / Sheet Metal /Plumbing Contractor

8%

0%

1%

1%

3%

4%

13%

20%

24%

25%

9%

1%

2%

3%

6%

27%

53%

Structural Engineer

Other EngineeringPractice Type

Plumbing, Fire and LifeSafety System Engineer

Transportation Engineer

Electrical Engineer

Mechanical (HVAC) Engineer

Civil, Environmental,Geotechnical Engineer

Architectural Firm

Engineering FirmCM, General or

Trade Contractor,Fabricator, Estimator

Owner

BuildingProduct

Manufacturer/Distributor

Other

27%

15%37%

5%3%

13%

Source: McGraw-Hill Construction, 2009

Page 51: McGraw-Hill The Business Value of BIM

McGraw-Hill ConstructionPresident: Norbert W. Young, Jr., FAIA

McGraw-Hill Research & Analytics/AlliancesVice President, Industry Analytics, Alliances & Strategic Initiatives: Harvey M. Bernstein,F.ASCE, LEED© APSenior Director, Research & Analytics: Burleigh MortonDirector, Green Content & Research Communications: Michele A. Russo, LEED© APDirector, Market Research: John DiStefano, MRA, PRCDirector, Industry Alliances: John E. Gudgel

BIM SmartMarket ReportBIM SmartMarket Report subject matter expert, Senior Director, Stephen A. JonesEditor-In-Chief, Director of Industry Alliances, John E. GudgelBIM SmartMarket Report Research Project Manager, Dana S. Gilmore, MRA, PRCBIM SmartMarket Report Consultant, Bruce Buckley

Reproduction or dissemination of any information contained herein is granted only by contract orprior written permission from McGraw-Hill Construction.

For further information on this SmartMarket Report or for any in the series, please contactMcGraw-Hill Construction Research and Analytics.1-800-591-4462, 34 Crosby Drive, Suite 201, Bedford, MA [email protected]

Copyright © 2009, McGraw-Hill Construction, ALL RIGHTS RESERVED

Acknowledgements: The authors wish to gratefully thank our partners who helped support the BIMresearch. We would like to thank our Premier Corporate Partner, Autodesk; and our Corporate Contributor Sponsorsincluding HOK, Mortenson Construction, PCL Construction, Turner Construction Company, Parsons Brinckerhoff,and The Weitz Company. We would also like to thank our Government Premier Partner the US Army Corps ofEngineers and our Association Premier Partners: The American Institute of Architects (AIA), ASFE, AssociatedGeneral Contractors of America (AGC), buildingSMART Alliance, Design-Build Institute of America (DBIA),Construction Users Roundtable (CURT), American Institute of Steel Construction (AISC), Mechanical ContractorsAssociation of America (MCAA), Architecture Canada – The Royal Architectural Institute of Canada, and the SheetMetal and Air Conditioning Contractors National Association (SMACNA). We are also grateful to our AssociationSponsors including Construction Specifications Institute (CSI), Construction Management Association of America(CMAA), Construction Owners Association of America (COAA), American Society of Civil Engineers (ASCE),American Society of Professional Estimators (ASPE), American Subcontractors Association (ASA), NationalAssociation of Electrical Distributors (NAED), the American Council of Engineering Companies (ACEC), andSociety for Marketing Professional Services (SMPS). All of these association groups helped disseminate the surveyto their members.

The authors would also like to thank all of the people who agreed to be interviewed and provided other contributionsfor this report including David Fouché (CH2MHill), Stephen Forman (DOE), James Barrett (Turner Construction), Dr.Burcin Becerik-Gerber (USC), Samara Rice (USC), Jim Bostic (St. Joseph Health System), Mike LeFevre (HolderConstruction), Derek Cunz (Mortenson Construction), Ted Kennedy, (BE&K), Mike Sullivan (The Weitz Company),Bruce Cousins (The Weitz Company), Len Martling (The Weitz Company), John Marshall (Satterfield & Pontikes),David Ivey (HOK), Brian Skripac (Design Group), Ben Beurgler (EMC), Dave Morris (EMCOR), Jay Bhatt(Autodesk), Kevin Bredeson (Gilbane), Damon Socha (Layton Construction), John Moebes (Crate and Barrel), JayMezher (Parsons Brinckerhoff), Cosima Crawford, (NYCTA), Dan Klancnik, (The Walsh Group), Dan Russell (Sundt),Paul Seletsky (SOM), Douglas Fitzpatrick (Fitzpatrick Engineering Group), Digby Christian (Sutter Health), ErleenHatfield (Thornton-Thomasetti), John Bredehorst (WSP Flack & Kurtz), Matt Jensen (Dunham Engineering), MarkBrumfield, (Heapy Engineering), Scott Kelly (KPG), Seema Pandya (YRG Sustainability), Samir Emdanat (GHAFARI)and Ed Hoagland (PCL).

Page 52: McGraw-Hill The Business Value of BIM

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