5D Planning and Cost Management

Introduction

BIM is more than just well-known software like CAD that looks to benefit builders and construction companies. It also serves as a repository for digitalized information relevant to a specific construction project, as well as a carrier for storing and sharing related knowledge resources that can be added, extracted, or updated in real-time at any stage of the project, allowing relevant staff to complete their work and perform their functions with its timely assistance.

Cost Management

The expected or real expenditures paid for an entire project, which includes the construction and installation price incurred in transaction activities in equipment, technology, and labor markets, as well as the overall price of this construction project, are referred to as construction project costs. Project costs are reasonable in comparison to the project’s cost. Project costs are essentially all of the costs that a construction organization incurs, including labor, raw materials, and equipment costs; indirect costs, such as all administrative and testing charges; profit after completion; all taxes; and other project costs.

How BIM can Solve Cost related issues?

In recent years, BIM technology has been widely used to control costs in a variety of projects. Examining design drawings and construction documentation; using BIM technology to consolidate and collect quantitative changes in a project so that cost management can be performed; updating BIM models on real-time changes in a project, evaluating and sharing real-time information on collaborative management platforms, and settling project costs are some of its main functions.

1. Project Initiation & Planning Phase

• The work during the initial stage of a project consists mainly of decision, design, and bidding, all of which are present at the start of each project, while the expenses of a specific project are determined by the decision period’s aim.
• At this point, BIM uses multi-dimensional modeling to create simulated models of the complete project, including three-dimensional modeling, project scheduling, and cost analysis and categorization.
• Following that, the estimation and statistics based on the data supplied in these models help to control project costs. The financial effect of design on a project might range from 35 % to 75 %. The amount of complexity in design requirements and documentation has a direct impact on the accuracy of design budgetary estimations.
• Before BIM, laborious and complicated design and incomplete documentation often resulted in calculation errors, whereas now, with the aid of corresponding quantity surveying software, high-accuracy project quantity documentation can be quickly accessed simply by importing the modified BIM models established during the investment and decision period.
• Furthermore, 4D-BIM models created after adding the time dimension contribute to the steady depth of design and virtual construction that designers do to perfect their technological design and eliminate potential hazards as much as feasible.

2. Project Control & Execution Phase

• The distribution of technology and engineering materials can help to keep project expenses under control. Finally, despite monthly and even daily variations in the ever-changing market, the price of engineering materials must be maintained at a reasonable level, which necessitates staff responsible for project cost management conducting surveys in advance of the prices of materials needed throughout the construction period, as well as real-time surveys at the construction stage to gather information.
• The visualization and informatization presented by BIM technology’s models, which become more particular with more information and stay updated in sync with the current information, is one of the most remarkable features.
• It is feasible to update the overall information of project models created with BIM technology in accordance with construction schedules at any moment.
• Following surveys on a practical project are greatly reduced due to the excellent consistency between construction buildings and building models. All of the information is up to date, which saves workers a lot of time and effort.
• At this point, BIM technology aids in the early discovery of issues in project cost management that are either concealed or exposed. For example, by using BIM technology in cost management to cut project expenditure, certain needless expenditure that is immune to physical inspection during project construction may be discovered in real time.
• Furthermore, studies show that BIM plays an important role in cost management, as the entire project cost may be reduced by 70% for a 3% investment in BIM technology. Before giving relevant information to management, management employees must aggregate and selectively output database information, drawings, and design costs.

3. Project Closing Phase

After construction is completed, project expenses are the last but most important step in project cost management. Relevant staff is required to present a holistic picture of the project costs incurred over the course of the entire construction by summarizing related contracts and agreements drawn up previously, estimated costs and expenses, and materials required for local government and other related organizations. In this time frame, applying BIM to project cost management may considerably enhance accuracy and efficiency. BIM is a system with a large database that allows all project contents engaged in a specific build to be assembled. Its unstructured database may collaborate with project cost management platforms to communicate information.

Conclusion

When it comes to project cost management, BIM is a cutting-edge technology that offers significant benefits. To begin with, BIM technology can provide the most up-to-date information with project cost management employees as soon as possible. This information is regularly updated in sync with real-time changes in a project.

Traditional project cost management is delayed owing to belated information, but BIM technology can gather and communicate updated information to workers in real time, which is an efficient way to handle the issue. Furthermore, its use results in effective project cost management. The management of building quality and costs is demonstrated by the essence of project expenses. BIM technology is an information-model-based tool that appears to be superior in supporting engineering employees in conducting the most efficient management.

Finally, when applied to project costs, it makes each aspect of project cost management fair-grained and well-grounded. The precise conditions of many projects differ. Unlike traditional project cost management, which estimates the total price fairly based on the specific expenses required for each part of the total project quantity, BIM technology estimates the total price reasonably based on the specific expenses required for each part of the total project quantity.