VALUE OF ADOPTING BUILDINGINFORMATION MODELLING

VALUE OF ADOPTING BUILDINGINFORMATION MODELLING (BIM) TO THESUPPLYCHAIN IN CONSTRUCTION INDUSTRY

Upeksha MadanayakeLiverpool John Moores University, Liverpool, UnitedKingdom

AbstractThis paper examines the value of adopting Building InformationModelling (BIM) to thesupply chain in the Construction Industry as adocumental chronicle that focuses on the impactBIM can have on someessential components related to the constructionindustry.Aforementioned components include the impact of BIM on theroles of the parties in thesupply chain. Thereupon, the ways that BIMsupports on effective management of risk andvalue during the projectcycle is speculated with some practical examples as well. Moreover,thereport also interlace with the benefits that BIM can conferred uponthe procurement process. Additionally, it has been discussed the waythat BIM facilitates the modern methodsof management that leads to thesuccess of supply chain integration. On the other hand, it isessentialto mention certain errors on BIM are also on the contrary. In thepoint of view ofsceptical visions, it has bad impacts that draw theconstruction industry in to an isolateddisposition as well. Thus, theauthor itself being unbiased, conspicuously shows that theadaptationof BIM is a powerful tool that has both good and bad impacts. However,pessimisticthinking can always state that BIM definitely makes theentire construction process easier tohandle and improves thecollaboration of work in a higher rate.

1. Introduction

Building Information Modeling (BIM) is a process of generatingbuilding data (spatialrelationships, structural elements, geometricinformation, components, quantities, materials, properties, etc.) ina digital representation and managing them with a collaborationof work inorder to use in construction planning, designing, predictingperformance and cost estimating(Allison, et al., 2011). It also can bedefined as a collaborative approach that ensures thecorrect partiesget the correct information at the correct time and get it right in

the first time(BCIS of RICS, 2011). In that case, information sharingthroughout the supply chain is done ina skillful manner. It is now afive- dimensional model that has the ability to keep it up-to-date,accessible in any stage and passes the information faster. Itgives clients, architects, engineers, builders and almost allthe stake holders a clear vision to follow up. BIM can be used as atool to illustrate entire building life cycle and constructionprocedures including the functioning andoperating patterns as well.Theperson who firstly brought out the idea of BIM was the head of BIMImplementation at theCabinet Office and BIM Program Director atBalfour Beatty, David Philip ( BuildingInformation Modelling (BIM)Working Party, 2011).Thus, BIM process undoubtedly is takingus into aworld of virtual reality, and it changes the traditional mannerletting the constructionindustry to design and construct buildingswith vast foreknow prior to the construction.

1.1 BIM in different perspectives1.1.2. UK government’s proclamation about BIM

UK Government has recently announced a mandate to use fullycollaborative 3D BIM onall publicly procured construction projects by 2016 as a minimum requirement drawing theawareness of the entire construction industry on BIM(Cabinet Office, 2011). The reportfurther says this can expect a costreduction in 20% in procurement increasing efficiency andindustryreform. This certainly has made a greater push to make BIM reality.Meanwhile,Government anticipates the industry to hasten the adoptionand utilization of BIM by affordingrequired information, standards;training; and the infrastructure facilities (Cabinet Office,2011).This definitely makes a big change in the current flow of supply chainwith animprovement of value and positive reduction in carbonperformance as well. The adoption ofBIM eliminates unnecessaryintermediaries between designers and manufactures while creatinganaffective link between all the parties of supply chain. On the otherhand, the Governmenthas not addressed on the technological constraintsregarding BIM. Therefore it is only aboutinformation sharing throughcollaborative work and not about the technological side(CabinetOffice, 2011).

1.2.2 BIM in the point of view of RICSAs RICS finds, BIM has been a topic in manufacturing & engineeringindustries, and nowhas become a major influential aspect for construction sector. BIM offers the capacity to addressmany of the industries failings includingwaste reduction, value creation and improved productivity.“Although yet it has been showed a low use and awareness of BIM (2011 BCISsurvey), however thiswould change in an alarmingrate and it would become unstoppable.”(Paul Morrell, the Government's Chief Construction Adviser, 2011). AsRICS has identifiedthe biggest barrier for the implementation ofBIM is the lack of awareness.

1.2.3 BIM in the point of view of CIOBCIOB exerts their effort for senior management to improve theirunderstanding on BIM and theway it benefits their business strategynow and thereupon. CIOB has established a set of programwith Construction Industry Council (CIC) BIM forum, recognizingthat, the within ageneration, the status of the design and builtenvironment industry will be changed with theinduction of BIM. Thiswill largely impact on the roles of the supply chain (Townsend,CIOB,2012).

1.2.4 BIM in the point of view of RIBARIBA identifies BIM as a rich digital model of that emphasizes all theaspects of building. It isa tool that can be used by the design teamfor design implications, the contractors to model theconstruction, andthe owner to manage the facility, throughout the life cycle of thebuilding(Alliance for Construction Excellence, 2008).

1.2.5 BIM in the point of view of National Building Specification(NBS)The National BIM survey carried about by NBS summarizes as follows; 

43% of respondents were neither aware nor using BIM.

78% agree the BIM is the future of project information Almost a third (31%) of construction professionals are now using

BIM which is upfrom 13% in 2010 More than 80% agreed BIM increases the coordination of

construction documents, with65% of those using the technologysaying BIM delivered cost efficiencies.(The National BIM survey,November 2012)

1.2.6 BIM in the point of view of construction industry

Only 13% of industry currently uses BIM (Waterhouse, R., CEO, RIBAEnterprises, NBS-BIM Roundtable Discussion: BIM Adoption – What itmeans for the industry Part 3, 2012).Majority of the BIM success and apotential industry shift will more in to education and training, ofBIM skills. So that people who are new to the industry will have mixof knowledge and skills on BIM literacy to fit for purpose (Philp, D.,2011). The sentiment that BIM is only for large companies ischallenged by the increment of small and medium enterprises (SMEs)showing a downstream in investments. (Waterhouse, R. 2011). NBSresearches evidently shows some companies are prepared to invest onBIM based constructions earlier than others, with the assistance ofmedium and large contactors. They are wise enough to fore seethe benefits of investing in BIM and the smooth flow of supply chain with an efficient, effective and economized collaborative work. Theenterprises who have already implemented BIM have now powerfully usesit to strengthen and make stable their businesses in a competitiveenvironment. Although it seems to be risky in the sense of moderntechnology, businesses industry professionals must focus on the BIMprocess that improves certainty and efficiency of a project ratherthan counting on the technological risks (COBRA, 2004). But the truthis majority of the industry is looking forward for the evidence thatproves BIM works and consequent a worthy investment by seekingpractical circumstances that reports the adoption of BIM. This has nowhas been the biggest challenge for BIM from the industry.

2 The impact BIM can have on the roles of the parties in the supply chain

2.1 Parties and roles of supply chain in construction industryThe supply chain is the network of organizations that are linked withupstream anddownstream connections, in the process of producing avalue product/ service to the client.(Christopher 1992).A supply chainin construction is consisting of all the parties involved in to theconstruction process directly or indirectly in order to perform their own responsibilitiesfulfilling client’srequirements. Parties of supply chain include; manufacturers,retailers, raw material andcomponent suppliers, transporters,warehouses, wholesalers, distributers, retailers, andcustomersthemselves (Briscoe, G. and Dainty, A., 2005)

Construction supply chains are now full of waste and issues. The basicconcept of SCM is Just-In-Time delivery (JIT) and logisticsmanagement. But the current SCM is majority of logistic based. Oneof the main problems that have risen so far is the transportationcost and that has amajor influence on thecontractor’s point of view. On the other hand, research statistical datashow thatmain contractors are buying more labor and material than early days.In fact, time buffers have been the closest reason for allthe issues (Malleson, 2012). As a cycle, the reasonfor these timebuffers probably is the errors in communication. Poor communicationand poorinformation flow between supply chain members lead to most ofthese problems. Lack ofcollaboration work and non-cooperativerelationships also back up this retreat.

Therefore the assistance given by BIM addresses all these problems togain the real value of SCM.

2.2 How BIM benefit on supply chain (good impacts)BIM redesigns the supply chain’s structure and controls withcoordination to the new configuration and continuous improvement. Whenit comes to the supplier’s side it is a reengineering for theprocurement process as it is an admixture of logistics andrecurring product development programs. In fact, BIM endorse a joint set of activities for the better coordination and good will for thesupply chain by following aspects;

Provides collaborative design and construction procedures as acommon single sourceto support all the parties

Improves communication means between client, designprofessionals, contractors,suppliers and manufacturers

Improves individual satisfaction Identifies possible risks and mitigates them

Information sharing all the parties of supply chain Minimizes design changes and RFIs Early cost certainty Predictable planning Lower the cost amidst of supply chain (reduce logistical,

delivery, operational costs) Proper information exchange among supply chain parties Provides an action plan for uncertain “In case” incidents.