4 ways in which BIM can improve a construction company’s profitability

4 ways in which BIM can improve a construction company’s profitability

The construction industry is highly competitive and always grappling with ways of increasing their profit margins. One of the main reasons why the construction sector struggles with their margins is due to the way the industry operates. When the clients tend to award contracts especially in the public sector to the lowest bidder the AEC companies in order to gain contracts must compromise on their margins. On top of it there are frequent payment delays, onsite changes and rework as well as the ever changing climate conditions which could lead to loss of time and money. It is here that the construction companies must find ways to boost their margins and the Building Information Modeling could be the potential answer.

BIM with its various tools could go a long way in reducing mistakes, gaining exact costing as well as significantly diminish project timelines when combined with prefabrication. In the below article we will be looking at the four ways in which construction professionals can use BIM to increase their profitability.

1. BIM minimizes mistakes that cause rework:

Rework is perhaps one of the most expensive things that could occur during the construction process. It not just requires excess of materials and labour but could also be very damaging to their reputation. In a study conducted by PlanGrid it was found that rework costs the construction industry more than $177 Billion annually. The same study also found that a lot of these errors are caused by miscommunication and poor project information.

BIM could prove very beneficial to significantly decrease the occurrence of such errors. With tools for enhanced collaboration the virtual 3D model ensures that any changes made in the model are instantly updated in the cloud for everyone to see so that all the stakeholders can remain on the same page. BIM Coordination Services can be used to detect any interferences in the pre-construction phase itself where there is no loss of resources or money. It also increases the safety of workers onsite by avoiding any accidents caused due to unforeseen errors.

2. BIM allows accurate costing:

With 5D BIM it is also possible to add cost in the 3D model. In the intelligent 3D model the cost data is integrated in the model itself. Moreover, the information rich 3D model also contains all the requisite details about the asset from its material specification to individual component cost in order to gain a final cost estimate. Thus, even when a single component is changed its direct implication on cost is reflected. Moreover, the cost estimates are calculated considering the projects entire life-cycle from capital cost of purchase to installation to running it. Thus knowing the right cost from the onset helps the construction company with accurate project bidding. Similarly, when any changes are instantly reflected in the cost it helps the construction company stay on budget.

3. Prefabrication:

Prefabrication refers to the process of constructing the building off-site in a climate controlled warehouse location and then assembling it onsite. It uses the same materials, codes and building standards that conventionally built facilities follow but it takes less time. Firstly, there are no reduction of working hours due to weather delays ultimately translating to less cost of labour. It also saves on more resources as in factory conditions more materials can be recycled and there is less of waste. Prefabrication also works best with BIM and its enhanced visualization capacities. By constructing a 3D model before prefabrication commences ensures that the prefabricated components are of the right dimensions and that they will actually fit on-site.

4. BIM can be Outsourced:

One of the main reasons why AEC companies are a little hesitant when it comes to utilizing BIM is due to the lack of skills and resources required for its implementation. However, it is possible to outsource it to a third party which specializes in BIM solutions. It allows construction the construction company to leverage their expertise and at the same time not have to worry about training staff, investing in software etc. Here they just have to pay a given cost for the project and nothing else. Moreover, it is also possible that in some countries the cost of labour might be less allowing construction companies to further increase their margins. Thus, there are a various advantages of outsourcing BIM Drafting Services for construction companies like less cost, more turnaround time and higher quality deliverables.

Conclusion:

Thus, when the construction companies are already struggling with increased competition and lowering profits it is imperative that they look at new ways in which they can yield better returns. BIM as stated above could prove to be the solution to their problems.

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