Opinions are divided on BIM. One common criticism is the additional costs in the construction phase. But does BIM actually make construction more expensive? Various studies have come to the conclusion that its use is financially worthwhile - provided the basis is right.
Anyone who builds knows that there is hardly any other comparable activity that requires more collaboration, iteration and communication. In the networked world, this collaboration is integrated, automated and, above all, model-based. No wonder Building Information Modelling (BIM) is on the upswing: in the Digital Real Estate Study 2024 by pom+Consulting, 40 percent of over 120 managers and specialists surveyed confirmed that they already use BIM. A fifth (21%) are currently in the process of introducing the methodology.
Nevertheless, building with BIM is not free of controversy. Many users and clients complain that it is too complex, too expensive and too technical. And behind closed doors, they question whether the additional effort is actually worth it - both during construction and later during operation.
Five factors influencing ROI
Numerous studies and analyses on the profitability of BIM confirm potential benefits such as time savings, improved planning accuracy and cost reductions. A systematic analysis by Sompolgrunk et al. (2021) has identified five key factors that influence the ROI (return on investment) of BIM: Cost savings through better planning quality, increases in productivity, a reduction in information requests and rework, and fewer change orders. According to the study, the use of BIM can even lead to savings of 10 to 20 per cent, particularly in complex construction projects.
However, the stated ROI values vary greatly from study to study. In 2011, the American Society of Civil Engineers published a study that estimated an ROI of 140 per cent or more to be realistic. Two years later, however, doctoral students at the University of Florida determined values from 16 per cent. These fluctuations are due to the project-dependent nature of BIM.
In practice, the above-mentioned percentages are unlikely to be realistic. However, several case studies emphasise that the financial benefits of BIM vary depending on the type of project.
Infrastructure projects with BIM
Empirical experience in everyday project work shows that the duration of construction projects with BIM is significantly shorter on average than for traditionally constructed properties. This leads to cost savings for many buildings due to lower capital costs. While the planning phase tends to cause higher costs, the execution costs can be reduced in many cases.
This also increases overall productivity, as confirmed by the German Federal Ministry of Transport and Digital Infrastructure's BIM Federal Trunk Roads Masterplan (2021), albeit with one clarification: «[It is important] to bear in mind that the construction industry must first go through a ramp-up and investment phase before the full savings potential can be realised. However, savings through increased planning quality and quantity certainty can already be realised in the short term.»
Similar findings were made in the electricity supply industry. In an ongoing project for the distribution of energy and grid stability, BIM is leading to improved planning accuracy, optimised cost control and a significant reduction in supplementary costs. Conservative estimates assume cost savings of 2 to 5 per cent in project planning and put the potential additional costs without BIM at over CHF 1.5 million. The savings result from the seamless integration and coordination of all members of the project team as well as the use of Common Data Environments (CDEs), a digital environment in which all relevant information, such as plans, models, documents and reports, is centrally stored, managed and made accessible to all project participants.
Efficiency gains and productivity
A direct comparison between two almost identical major construction projects in north-west Switzerland also shows how BIM can be profitable. One building was planned and built using the ‘traditional’ method, the other using BIM. While the BIM project initially incurred higher construction costs, the use of the methodology led to a 10 per cent reduction in supplementary costs and thus to significantly lower costs in the construction phase.
Autodesk Revit, a well-known BIM software, carried out an efficiency gain analysis back in 2014 based on an ROI calculation model. This model takes into account software costs, labour costs and productivity in the first year. It shows that the greatest influence on the efficiency gain comes from productivity losses or gains. On average, savings of around 2 per cent were identified when analysing ten projects.
Basis for BIM success
Despite all the study results, BIM cannot be described as profitable per se. In order for model-based construction methods to actually lead to measurable efficiency gains and cost reductions, a number of basic requirements must be met.
To begin with, it is crucial to define clear goals for the use of BIM and to establish a long-term strategy that covers the entire life cycle of a building. The success of BIM depends to a large extent on the quality of the available data: This must be complete, up-to-date, consistent and accessible to all project participants at all times. To ensure interdisciplinary collaboration between all specialist disciplines, they must be able to exchange the relevant information in real time.
Another factor is the availability of qualified personnel with sufficient BIM knowledge. Regular training and further education are essential to ensure the efficient use of BIM technology in companies. In addition, powerful and compatible software solutions that enable interoperability with other systems must be available. Uniform standards and guidelines ensure that everyone involved works according to the same rules, while early BIM implementation, ideally as early as the planning phase, exploits the potential for cost reduction and risk minimisation. Regular monitoring, adaptation and feedback processes ensure that BIM is continuously optimised and achieves the desired return on investment (ROI).
How we support you.
pom+ supports property owners and portfolio holders in developing and implementing a BIM strategy, as well as in drawing up the resulting ordering bases for construction projects. The data flow from the planning stage to the operational stage is ensured by supporting the transfer and quality assurance of the relevant data into the target systems.