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Does BIM improve the ROI of P3 project?

The Web is full of literature and videos about many aspects of BIM and its virtues, but little about the ROI (return on investment) of BIM.  The contractors, professionals, and clients that I have approached to discuss BIM and productivity technologies are overwhelmed and unsure of what sources of information are credible.

General contractors in particular often tell me that they need to demonstrate the ROI of BIM projects in order to push through the idea of such a change within their company and get their team fully on board.  

A demonstration of ROI for BIM projects

I came across an interesting webinar and the economist in me was pleasantly surprised by the usefulness of the messages.  Some will say that Autodesk may lack credibility or intellectual independence when the time comes to demonstrate BIM's ROI!  Of course, everyone can apply their own critical faculties.

The purpose of the video is to demonstrate how BIM and virtual design and construction (VDC) may improve the ROI of PPP (public-private partnership) projects.  However, I feel that the reasoning and analyses presented in the webinar's introduction generally apply to the industry. The webinar lasts one hour (a bit long, in my opinion) but it is possible to highlight some passages.

More information = higher ROI

To me, the connection established between knowledge of a project's information and contingency costs is the most important part of the video. A construction contractor's thinking must be directed toward the right issues. And the equation is simple:

↑ project information →  ↓risks  →  ↓ contingency costs  → ↑margin and ROI

Summary of the webinar

  • There is a lot of inefficiency in projects;
  • Studies demonstrate that losses and work resumptions may reach 4% to 14% of a project's overall costs;
  • Based on a series of workshops and studies regarding the ROI of PPP projects, Autodesk indicates that an average contingency rate of 7.5% with a traditional method could be lowered to 1.9% with BIM.

I will leave it to you to evaluate the assumptions and other subtleties of the research, but still! 

Building and operating more effectively

The webinar also covers the benefits of BIM/VDC during construction and buildout while taking care to separate the gains by categories of stakeholders: This is helpful.  At the end of the Webinar, a construction manager from Vancouver attests to his experience with a PPP project carried out using BIM/VDC.

Feel free to call me if you want to see how technology can increase the profitability of construction projects. See the webinar

Caroline Bergeron

Director of BIM business development

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