If the estimation is not correct on a project, it will affect the business negatively. While underestimation of the cost leads to loss of money, the overestimation may result in failure at the bidding phase. Even though the direct victim of this issue in traditional fixed price contracts is contractor, the impact of poor estimation will be seen in the entire project.
The typical pain areas for BoQ’s industry wide are:
A baseline of cost required at the various stages of project development is called cost estimation. The cost engineer or estimator predicts an amount at a given stage, based on the data available. Even though several types of cost estimation methods exist, Bill of Quantities (BOQ) Unit costs is the most commonly used. In this approach, the bill of quantities assigns a unit cost to each of the components or tasks. If you sum the quantities that are multiplied by the corresponding unit costs, you will get the total cost of the project. Unit cost method is based on a simple arithmetical principle and is very accurate in estimating. But proper application is essential. However, there are three key factors that decide the success of this method.
Besides the three main factors, there are many other fixed or variable factors like inflation, consumption rates, taxes, currency fluctuations and contingencies etc., which should be considered by the estimator.
The best way to get an accurate BOQ is nothing but adoption of Building Information Modeling services. The possibilities of common errors in BOQs are minimal in the projects that use BIM Process and technology. BIM represents a single and accurate design model instead of providing several drawings. A BIM model can create a bim quantity takeoff automatically, which means it has in-built intelligence to know about each building element and with what it is made of. Therefore, it any change occurred in the design of a model, the BOQ will also be updated.
Costing is one of the most important aspect of a project to the owners of the project. Controlling cost escalation and managing material is one issue that cannot be compromised.
Quantities for architectural and structural components are extracted at schematic, tender, Good-For-Construction (GFC) and construction stage. At the schematic stage it is used for budgeting. While tendering, the BIM quantities are compared against the tender costs. As the design is refined at GFC stage, the revised quantities are used for evaluating change requests. On completion of execution, the bim quantity take offs from the model are used for bill verification.
At every stage, the accuracy of BIM quantities exceeds the accuracy of conventional thumb rule calculation. Overall adoption of building information Modeling services helps control cost escalation and disputes during the checking process.
On an average while comparing the benefit of BIM for Accurate Quantification and material procurement it can be summarized through our project experiences that
The difference in the quantities is anywhere between 1% – 8%.
The availability of software packages that can help prepare bills of quantities is increasing day to day. Bills of quantities are produced with the help of building information Modeling services. They do this task using the information contained within the model. The benefits of integrated BIM solutions are several and they are beneficial for everybody in a construction industry including owners, cost consultants, project managers and contractors.
Building information Modeling services help owners take a ‘hands-on’ approach to manage investors, stakeholders and contractors. Using this technology, the project managers and architects can provide their services on behalf of their clients. Cost consultants can provide various services like rapid and credible cost planning, energy analysis and procurement services etc. BIM helps contractors support revaluation amendments.