What Is McKinseys View Of The Coming Transformation Of Construction?

The construction industry was witnessing only slow growth for more than a decadeeven before the outbreak of the pandemic. With the COVID-19 situation, the industry is probably seeing something close to the worst of its days. According to a report by the Global Construction Review, the GVA (Gross Value Added) for the Indian market is set to fall by 34%. Another report by The Economic Times in June revealed that the industry may suffer losses of nearly INR 7.3 lakh crore in construction investment.

However, if McKinsey’s view of disruptions being the catalyst for change is to be believed, the situation could turn in favor of the key players in construction, as well as the new entrants.

So, what’s McKinsey’s view, and how does it impact transformation in the industry in the coming year? Let’s shed some light on that.

Key moves to shape the future of the construction industry

The experts at McKinsey, one of the global leaders in consulting and research, feel that technology-led disruptions and the current pandemic situation will transform the construction ecosystem. They say that the following shifts in construction will not only change the old ways but also highlight the new normal the industry will change too.

Productization 

From being purely a service-driven industry, construction will take on a product-based approach, marketing the structures that they raise along with their associated services as standardized products. For eg., one interesting set of thoughts is emerging around housing with integrated co-working-like facilities to empower a greater number of people working from home. It will help increase the satisfaction of the end customers, who will be able to understand things better. The idea that when consumers buy products, they buy concrete results will contribute towards the industry performing well holistically.

Control of value-chain and integration with supply-chain

The companies will be more self-sufficient by controlling all design, engineering, manufacturing, supply chain, and other activities along the value chain to establish self-sufficiency. The focus will be more on such companies that adopt a one-stop solution and they will lead the others. In the context of technology (more on that later) this could mean construction companies will have to find a way to hire, engage, and retain technology talent like BIM experts. That’s a considerable shift.

Specialized development

The companies will be developing specialized niche based on their expertise along with different segments like single-family houses, commercial buildings, infrastructure, hospitality real estate, healthcare, etc. This will help them build deep expertise, success stories, and intellectual property that will help them get an edge over their competitors.

Branding and customer-centric development

This point follows from the predictions that construction companies will look to provide product-based solutions, which can be easily marketed to the end customers, and that they will adopt specialized development as their mantra. With narrow targeting, the companies will have to focus on their branding to target niche markets. Their offerings will have to be extremely focused on the needs of that target segment. Customer-centricity will become an inevitable need.

Incorporation of technology

Technological integration will help the construction industry build better, faster, cheaper, and more sustainably. The availability of new materials, increased digitalization, more data-driven decision-making, and automation of workflows will help them seek a better and more promising future. From building off-site manufacturing units to incorporating robotics in manufacturing and construction technology, the returns on investment will increase manifold. Of course, the base of many of these technology-led innovations will have to be the comprehensive, transparent, and current models provided by BIM.

Investing in human resources

In India, the construction industry is probably low down on the list of employment options of millennials. A physically taxing work environment and perceptions about traditional and outdated work practices hold them back. This will change with the incorporation of advanced technologies, increased employment of a full-time skilled workforce, and the dying out of many traditional practices.

Sustainability

Much has been said. Suffice it to say that sustainability is now a key focus area of the industry. With time, it will prove to be the oxygen for construction companies.

How can India make the most of these shifts?

The value of the global construction industry will jump to $12.7 trillion by 2022, according to a report by the Hindu Business Line. If India can make the most of the current disruptions and turn them in its favor with the help of both government and private initiatives, it will be able to contribute about $640 billion to this. The industry has to do away with old practices and adapt to technological advancements like BIM, 3D imaging, Cloud and mobile technologies, AR/VR, Robotics, and more, as well as invest in start-ups that aim to change the future of this sector with their innovative ideas and designs.

It also needs to employ more skilled manpower, especially among the young people, who are scared to join the industry right now. Appropriate salaries, along with better working environments, opportunities for growth, and even higher incentives will prove attractive. The construction companies can also work hand-in-hand with the government to empower women, who currently stand at only 10% of the total workforce in the industry. Such initiatives will help them make the most of the global technologies and disruptions that are set to change the industry.

McKinsey says that the ongoing and future disruptions will shape the industry by breaking conventions, changing business models, and finally delivering on the promise of technological advancements. Such trends, if they come about, could permanently alter the way construction companies run today, forcing them to adapt to the new world. And this will help us leave the pandemic and its economic impact behind to look towards a better and safer future.

Modular Construction And The Enabling Role Of BIM

The current pandemic may have led the construction companies into challenging timesdue to a disruption in the supply chain and shortage in manpower. But not all hope is lost.

Construction companies are turning to technology to help them get back on track, control costs, and work more efficiently. In that vein, they are increasingly adopting a promising way of construction called modular construction.

Once heralded as the next big thing in the construction industry along with 3-D printing, companies use modular construction to build certain pre-fabricated units offsite and then fit it with onsite structures. One can think of it as Lego blocks that are stacked one above the other to create a structure. Hopes from the technique are high. In fact, McKinsey predicts modular construction to be a $130 billion market by 2030.

Modular construction offers various benefits:

  • It can accelerate the speed of construction by 50%
  • It can lead to 20% cost savings
  • It can reduce the labour costs of a project by 25%.

While modular construction has proven to be a boon for the construction industry, it has its challenges to pull off.

For instance, if the pre-fabricated unit is not precisely manufactured, it may not fit well with the onsite structure and could lead to cumbersome and disruptive rework. In fact, the company might have to incur 30% of additional costs due to rework.

That’s where technology like Building Information Modelling (BIM) can come to the rescue.

The Role Of BIM In Modular Construction

BIM promotes the creation of comprehensive, accurate, time-sensitive, and validated models of every little detail of the construction site. This level of detail can help construction companies to create a detailed 3D visualization of each component being constructed offsite as well that can fit perfectly within the rest of the structure that is documented just as clearly.

BIM can also help in:

1. Digitizing the construction workflow

Some construction companies have started thinking of concepts like Digital Engineering. A key component of this would be digitizing workflows. Automating these processes can drive up construction efficiency and reduce risk. Digitization can help companies to estimate costs accurately, reduce the reworks, promote transparency in project status, and maintain quality. Of course, given the wealth of information inherent to BIM, companies can create digitized workflows of the offsite construction of complex designs of components.

2. Enabling MEP coordination

Mechanical, Electrical, and Plumbing MEP coordination can be quite tedious and time-consuming. It accounts for almost 40% to 60% of the project. In the context of offsite modular construction, this is a crucial process because all three disciplines should be aware of the precise location of the proposed installation during the modeling phase. An oversight could lead to a major loss in time and effort. To ensure seamless integration among different plans, companies use BIM. BIM gives the specialists a 3D view of the structure in the pre-construction phase. It enables the specialists to identify potential clashes in the MEP systems and address them at an early stage itself. Modular construction benefits from the precision provided by BIM and minimize risks in pre-fabrication design.

3. Reducing cost escalation

As found by a study on the Korean construction industry, although modular construction is known to reduce costs, it could escalate costs if the initial planning is not done correctly or if the workforce is not skilled enough. BIM can help companies to address this issue by reducing escalating costs. It can help companies to streamline their construction workflows, reduce wastes in the pre-fabrication stage, and even find the right collaborators who can reduce insurance costs and tender risk premiums. According to a study by McKinsey, BIM has generated positive ROI for at least 75% of the construction companies.

4. Adhering to project schedule

Considering that both offsite and onsite development takes place simultaneously, modular construction can be completed 30% to 50% sooner than traditional constructions. It is particularly useful for construction companies as they can avoid risks or delays occurring due to extreme weather conditions that may prevail onsite. To coordinate efforts across locations and ensure seamless adherence to the project schedule, companies have been using BIM.  Right from exchanging information to coordination, BIM enables the project managers to manage the project end-to-end effectively. It brings together all the stakeholders involved in the project, which ramps up the process of communication and eventually, the completion of the project. Countries like the UK and Norway also use BIM to submit their designs to the Governmentelectronically, so they can quickly check if the construction complies with the regulations and approve it.

5. Reducing wastage of pre-fabricated material

The iconic 50-storeyed Leadenhall Building in London may be a landmark for tourists. However, architects know it for its sustainable model of construction. The Leadenhall Building is a fine example of how modular construction can help companies to achieve zero waste as most of the components are designed and manufactured offsite. Apart from cutting labour costs and improving productivity, modular constructions are also known to help build sustainable buildings. It can reduce up to 90% of waste. And of course, with BIM project managers can reduce wastage effectively. Considering that the drawings are made in 3D, it allows the stakeholders to visualize the plan, identify errors, and rectify them early. It reduces the chances of rework and brings in precision in the entire process.

Conclusion

It is clear that the techniques of modular construction along with the power of BIM can help construction companies to boost the progress and quality of their projects. No wonder world over governments and construction companies are backing BIM to fast-track projects. Have you considered how BIM can help you drive up your effective implementation of offsite modular construction?

5 Suggestions for India’s Metro Projects To Get Back On Track

Besides real estate, tourism, hospitality, and retail, another industry that has been suffering from the brunt of COVID-19 lockdowns is construction and development. Ongoing projects were stalled due to the nationwide lockdown. As the situation developed, many workers returned to their hometowns as they feared for their safety and livelihood. As lockdowns lift slowly, the ramifications are still becoming clear. By some estimates, 12.2 crores people may have lost their jobs, a huge section of which hail from the construction sector, one of the biggest job creators in the market.

The good news is, the lockdown is being lifted in many parts of the country in a phased manner. With stimulus packages announced and government spending ramping up, economic activity will also look to kick on. The hope is that the industry will regain its workforce and informal labour. According to a report by the Economic Times, 70% of highway projects have already been resumed in Delhi, and metro projects too are being opened in various parts of the country like Pune, Chennai, Kanpur, Delhi, and Kolkata. That said, due to labour shortage, material unavailability, and transportation issues, it could take a while before all the projects are back on track.

Here are some suggestions to restore the pace of development across India’s ambitious metro projects.

Take lessons from the past

We should take effective lessons from the success of previous projects to ensure that the work is completed on time and without much hassle. For example, the Nagpur Metro construction project was one of the fastest-completed projects in the history of the nation. With proper incorporation of advanced technologies like BIM and well-planned utilization of sustainable energy sources, the project is referred to as the greenest metro in India, apart from being acknowledged for its pace and efficiency.

According to a report by Nation Next, the project took only 27 months from the date of inception to the completion of trial runs, which is a record in itself. Great leadership, proper communication between all the stakeholders, and constant tracking and monitoring led to the success of the Nagpur Metro project. We should refer to such shining examples to deal with future projects, especially during such difficult times.

Ensure proper hygiene

With the lockdown getting lifted, we need to be careful about the safety of the workers on site. This is both a moral and strategic imperative. Any spread of infection will impact not only the health of the workers but could also shut down or quarantine the site. We MUST take all necessary precautions to ensure the health and safety of the workers. Soaps, sanitizers, masks, and face shields should be provided to the workers, especially if their work involves meeting other people and working alongside them. Apart from supplying masks and sanitizers, we could go the extra mile to provide proper food, sanitation, and hygienic working conditions to the workers to prevent them from falling sick.

Social distancing, no matter how difficult it may seem, should be maintained at all costs while working. The companies must take the time to create awareness through education among all the workers regarding the precautionary measures that each worker needs to take to stay safe.

Technology integration is a must

The success of the Nagpur Metro project can be attributed to the integration of technologies like 5D BIM, which enhanced the resource efficiency, speed, and overall quality of the project. The clash-detection capabilities of BIM can become a massive contributor to saving time in such large and complex projects. In ongoing and future projects, the developers should make the most of such technologies like 3D visualizations, 4D progress monitoring, BIM modeling services to ensure successful completion within the deadlines. Integrating mobile apps into the operating processes will help increase the accessibility to plans and information on and off-site.

With more incorporation of high-end technologies on the construction site, the load on the engineers could be lessened, thus helping them increase their focus on providing innovative suggestions and solutions to solve pressing problems. Technology will also ensure seamless communication and the minimum loss of information, besides helping in mitigating potential risks.

Focus on post-construction evaluation

At the end of each phase of the project, a proper evaluation model could be put in place to identify potential issues to learn from. This will allow us to take necessary corrective actions in time for future phases. For instance, accurate and complete as-built BIM models can give the engineers valuable insight into the various components of the project. You could break down the model into phases and look at them in the context of engineering design, construction, and evaluation to get insights for improvements.

Stay in sync with the rules

There are a bunch of rules defined by the government. It would be useful to turn to some intelligent system to track the rules as well as log compliance with those rules. It’s a dynamic situation and regulations change, so it’s important to stay on top of the rules defined by the Government of India but also the SOPs that come into play in today’s construction site. For eg., it may be best if the workers are prevented from using public transport to reduce their exposure to infections. The company can arrange for proper transportation facilities for the workers, who will also be keener to resume work if they feel safe.

All the extra efforts that we take now will count in the long run. The faster you can complete the projects that you are working on, the better for your cash flows and overall financial results. The builders, developers, and construction companies that pull through this extremely challenging period will be extremely well placed to overcome any challenge in the future. After all, what could be harder than the situation we are in currently?

Why India’s Construction Industry Must Now Turn To Technology More Than Ever Before

The year 2020 has ushered in the times of unpredictability and is anticipated to cause a long-lasting impact on the world economy. COVID-19 has created a situation wherethe demand is for India to be self-reliant in every way with the extensive support of science and technology. For sectors in India such as construction, there couldn’t be a better time to revamp the processes and fine-tune technology adoption as the projects reopen gradually.

Prime Minister Narendra Modi has recommended self-reliance as the way forward and suggested five pillars of self-reliance. These were economy, infrastructure, technology-driven systems, vibrant demography, and demand. Of those, at least two, infrastructure and technology-driven systems, go hand in hand. Let’s see how this match is necessary now.

India’s construction industry: A recap

Earlier this year, at the Construction Technology Conference in India, the Prime Minister had stated that the year 2020 was going to be all about construction and technology. India’s construction industry is already one of the fastest-growing in the world and was expected to reach $ 1 trillion by 2025.

A variety of challenges face India’s construction sector but the industry has been growing exponentially. Despite that, the use of technology has still not picked up enough space. The construction sector in India is often disorganized, family-run, and labour-dependant. The developers are still inclined to rely on conventional methodologies and practices. The wide availability of cheap manual labor and the necessity to keep the construction costs lower are some of the reasons why the construction industry in India is averse to adopting technology.

India’s construction industry is largely driven by homebuyers. The demand for residential properties has been steadily increasing and there’s a significant pressure to maintain a low cost of construction as the property prices continue soaring due to several other factors. The cost of land is one and commercial practices is another. The government has been actively engaged in introducing the global best practices and the RERA Act and GST are some efforts to standardize projects, assureconsumers of definite timelines in project delivery, and regulating the industry in general.

The Impact of COVID-19

In late March 2020, the country went into complete lockdown, shutting down all the construction projects- public as well as private. This had the knock-on effect ofdriving a large displacement of thousands of construction laborers, causing them to return home. This has also jeopardized the future of several projects.

When the lockdown is lifted, there are high chances that things won’t be back to normal fairly quickly for the construction industry. The shortage of raw material, as well as manpower, is expected to cause several hurdles in the projects across the country, bringing to the fore the importance of modernizing the construction processes by using technology. The need will be to deliver projects faster with constrained resources and fewer staff on site. That’s a “made for technology” problem. For instance, turning to Building Information Modeling could help constriction companies optimize resource estimates, make better plans and schedules, ensure greater collaboration, reduce clashes, and detect issues early. This has been proven to help deliver projects faster, more efficiently, and at a lower cost.

Lack of standardization: The wake-up call

One of the most critical reasons causing problems in the construction process in the country and also causing significant delays in project completion is the lack of standardization. The industry mostly depends on decentralized processes and there’s no modern project management to keep an active track of completion status and identifying the roadblocks. Along with causing delays in the project delays, this also results in budget overruns for the project.

In post-COVID-19 times, such scenarios can be risky for developers in the industry. And there couldn’t be a better time to adopt technology like Building Information Modelling or BIM. Implementing BIM not only helps in accelerating the design, planning, and visualization process but also helps in controlling the construction project costs, which is paramount especially post COVID-19. Smart devices and IoT-based sensors along with project management software could also be immensely helpful in tracking project progress in real-time.

Smart cities: India’s hot target

India is already gearing up for a paradigm shift and bridging the infrastructural gap has been on the checklist of the government while also being a demand from the citizens of the country. The National Smart Cities Mission has been one of such endeavors to remodel the existing urban areas with immaculate planning. Optimizing land, creating enough open spaces and walkable localities, developing new public transport such as metros, and applying smart solutions for infrastructural developments are few of the many agendas of the smart cities mission. As the world struggles post-COVID-19, India has a great opportunity to shine and smart cities powered and accomplished with technology can help in doing so. These projects could be quick to dive into, given that they are already at various stages of planning and execution already. Achieving these monumental benchmarks in the stipulated time will only be possible with the help of technology.

The rapidly growing importance of green construction

The modern Indian consumer is more energy conscious than before and from office spaces to residential blocks, the demand for green construction is higher than ever. Construction using environment-friendly material, energy-efficient buildings with recycling mechanisms in place and IoT-powered smart buildings are gaining momentum, especially in the metro cities. For the sustainable approach to construction, it is imperative to look for modern solutions that involve technology for efficient energy usage, reduced wastage, and sustainable operation and maintenance. And, no surprise that BIM has a role to play here.

The construction industry in India pre-COVID approached technology with a ‘don’t fix something that isn’t broken’ approach. But times have changed. To thrive and survive, the construction industry must implement new technologies, and now is the time to put global best practices into action.

How to answer the call to “turn crisis into opportunity”? in India’s highway construction sector

Never before have we experienced a pandemic of this magnitude. It sometimes seems that the entire world has come to a standstill. However, despite the reigning uncertainties, the lockdowns across India are slowly getting lifted and economic activity is gradually beginning. While the crisis still looms, it also gives us the chance to turn it into an opportunity.

The Government of India, under the direction of the honorable Prime Minister, has laid an impetus on ‘infrastructure’ and ‘technology-driven systems’, as a part of India’s future strategy to come out of this crisis. It is abundantly clear that building infrastructure will be crucial to develop and accelerate the economy. The highway construction sector is already seeing tremendous focus and there seem to be major plans to commence work on a war footing on highway projects.

However, we also need to bear in mind that the world of work that we will enter post-lockdown will be very different from the world of work that was.

For starters, it is highly unlikely that social distancing is going away anytime soon. But with fewer resources available, on-site social distancing becoming the new normal, and fewer people available to address each task, how can we make sure productivity meets economic needs?

To emerge out of this situation we have to ensure that we enter the post lockdown stage with speed, agility, and optimal resource utilization.

When it comes to complex infrastructure projects like the highways construction sector, technologies such as BIM are going to act as force multipliers to assist us in navigating the challenging environment that is to come.

Here is how technology will act as a great enabler of the construction industry in the post COVID world.

Maximize resource utilization

BIM, or Building Information Modelling, is more than your average technology product that merely provides a digital representation of the physical and functional characteristics of a facility. It is also a shared knowledge resource that helps in driving reliable decisions. BIM gives construction projects the ability to effectively map and manage the resources needed for a particular task.

In the new world with reduced budgets, time constraints, and fewer people, highway construction has to make sure that resource allocation is optimized on-site. In this world, construction companies will have to turn to technologies such as BIM to grow their pool of ‘off-site experts” to address the planning, resourcing, design, analytics, collaboration, tracking and monitoring, and other key functions and make sure that work can be conducted more efficiently using less labour.

Facilitate better planning

Infrastructure projects are infamous for extending beyond the designated timelines. Given that now we shall be racing against the clock, we need to remove all the obstacles that impede timely project completion. For this, quite naturally, project management teams and all stakeholders have to get complete and transparent insights into project progress and project impediments. We also have to look at procuring and using more modern building materials, make accurate time and cost estimate projections, and ensure that all changes to the original plan are made and recorded as decided.

With BIM, construction companies can connect all the stakeholders including the architects, contractors, designers, and developers. It can help them visualize the whole construction series and understand the progress of construction activities proactively throughout the lifetime of the project.

This helps in identifying the gaps, if any, between expected and actual project completion time. It optimizes equipment, material, and human resource planning and eliminates waste. Improved site logistics management accelerates the construction process and reduces delays in materials procurement. It also enhances coordination capacities and productivity and thereby leads to cost and time savings as well.

Smooth information exchange

Information in the construction industry is very asset-heavy. Yet, it must move with agility across teams and stakeholders. Time loss owing to incomplete information sharing or loss of information during the exchange process can lead to significant project delays. Gaps in information between teams can cause clashes. Clashes mean rework and delays. And each delay has a cost impact.

Technologies such as BIM accelerate project progress by enabling transparent collaboration and complete project monitoring during the project execution phase. Report of the actual project status, delays, and potential catch-up plans are all detailed out and ensure proactive risk mitigation. Better communication between different teams and divisions, visual communication of project parameters and ongoing progress, and proactive identification of sequencing or phasing issues help drive better-aligned efforts.

Forecast successes and challenges

As we progress through a project, the variables tend to change as well. Timelines can get updated, material procurement might get delayed, the design could change…when it comes to construction, nothing can be set in stone (or concrete) given the vast number of stakeholders, departments, and teams involved. The construction industry will have to become more agile to accommodate these changes easily so that project timelines can be met and financial losses capped.

Instead of relying on guesswork and having to “deal with” sudden changes, using BIM as a dynamic modelling tool can solve these problems. BIM can be a powerful tool and can be used to diligently forecast both positive and negative scenarios and help stakeholders gain deep insights into understanding and predicting potential clashes that impact project progress.

Post-construction evaluation

Moving ahead, we also have to learn from our mistakes. When it comes to the construction industry, information usually resides in silos. It does not flow freely and it definitely cannot be accessed easily. However, as we come out of the COIVD crisis we have to make sure that our efficiency, especially for crucial infrastructure construction projects, increases dramatically. But can we achieve this as well using BIM?

All the information regarding the project from the start to end, all variables, all data, every piece of project-related information can be stored in BIM models. BIM thus acts as an information repository that can be accessed to identify what went right and what did not after project completion. Using these insights gleaned from data future project planning can be further fine-tuned and all the impediments to project success can be dealt with.

In Conclusion

The government of India now plans to construct more than double the highways constructed in the last fiscal. There is also the ambitious highway development program — Bharatmala Pariyojana –which includes the development of about 65,000 km of national highways. States are already mobilizing the supply chain and addressing transporters’ concerns to re-start highway construction projects. While we cannot deny the existence of the crisis, there is something that we can do about it.

Focus on infrastructure development, is a great direction to take as an effort to rebuild the economy. Building the infrastructure will result in more job creation, increase economic activity, and create demand. An infrastructure focus will also help us make up for all this lost time. All we need to do now is to make sure that we make the right technology choices to tide over the challenges in the post-lockdown world of work and make sure that all these projects get completed in time.

BIM For Conceptual Estimating

Conceptual estimating has always been a crucial aspect while planning a new construction project.

Developers assign costs for every stage of the planning to determine the costs, feasibility, and direction of the project. That enables the construction company to build a perspective of how the project will come together over time.

Construction companies call it part-science and part-art. There are two main approaches to it.

  • The cost approach: Cost estimation can safely be called the cornerstone of conceptual estimating. Over 70% to 80% of the costs are determined during the pre-construction stage itself.  It gives the developers an overview of the total budget and the potential for cost overruns in the project. It also enables developers to start planning for ways to work within a limited budget. In the current economic scenario, it is definitely advisable to have a cost estimate prepared for the projects on the floor to have a template to aim for at all times.
  • The design approach: In the design approach, the construction company creates a detailed design based on the written scope and then proceeds with the construction. The concept is the main differentiator in this process.

How Can BIM Help With Conceptual Estimating?

BIM software comes with in-built estimating features that can help construction companies estimate better:

Cost-savings

According to McKinsey, large construction projects take 20% more time to finish, and 80% of the time goes over budget. They, and we, believe that BIM can help in solving these issues. It can shorten the duration of a project and save on effort and material costs. A 5D model of a project, for instance, can help builders get an overview of the project’s total cost as tied to the schedule. Take the UK’sCrossrail project, for example. The full-lifecycle BIM approach adopted for the project is estimated tohave saved 20% on design and construction and 40% on operations and maintenance costs. Closer to home, the Nagpur Metro Rail project is being credited with driving savings of an estimated Rs 1552 crores by using advanced technology like BIM.

Automating the process

Research shows that manual estimation can take up 50% to 80% of the time during the cost estimation stage. Additionally, manual estimating can also be prone to human errors such as inaccurate drawing interpretations during measurement. BIM enables automatic quantification, i.e. automating the quantification process that involves tallying components from printed drawing sets, or CAD drawings and using estimators to come up with a project cost estimate. It improves the plan efficiency of the project by removing duplication and reducing the chances of human errors. It can also minimize cost variation that normally occurs due to errors. This can help improve adherence to planned estimates, a key advantage in managing financing and cash flows. It can also help ensure more rational vendor billing and payments.

Saving time

Considering that BIM automates the steps such as manually entering the quantities and pricing, the estimators can save time on conceptual estimating. As the estimated quantities and pricing are linked to BIM, estimators do not have to update the quantities manually; neither do they have to update the pricing manually. It gets updated automatically. Providing a detailed estimate of a significant project can be quite cumbersome. That’s where BIM comes to rescue.

Let’s look at a complexexample. The IT giant – TCS was looking to redo a significant portion of a campus spread over 74,000 sq. ft. But the designs available to them were from the planning stage, whereas the as-built campus was substantially different. They used BIM to build a model focused on the architectural, structural, and services components. This was designed to be used for Clash Detection and Resolution (CDR) as the new designs and plans took shape. The estimated time frame for the completion of the CDR phase of the project through the conventional method was over three months. By using BIM, this phase was completed in 1 month -a time saving of 66%!

Detectingerrors early-on

BIM helps in managing risks, design errors, quality, and budget of the project. The intuitive design of BIM gives users a better view of the design and detects risks that can be addressed early on to avoid any challenges during construction. Let’s consider a 40-acre project with a site of 30-feet elevation. There would be dozens of buildings and structures on that site. The entire information may be hand-drawn. When the sketch gets digitized and modeled with BIM, the estimators can calculate the cost and provide conceptual estimates that show the probable elevation issues that the developer could face during construction. Instances like these help construction companies to mitigate risks at an early stage.

Conclusion

BIM, if used in the right manner, can enable construction companies to save an average of 5% of operating costs per annum. It offers multiple benefits ranging from increasing ROI to reducing change orders and requests for information through the process of construction. It also promotes more communication and effective collaboration across various stakeholders involved in the conceptual estimation.

BIM can completely change the way conceptual estimation is done. It can change the way estimators plan and build the project. For any assistance in integrating BIM with the conceptual estimation process, contact us. We will guide you through the process, just like we have done for dozens of other projects.

An Exploration of Offsite Construction And 3D Printing

I have been a part of the construction industry for many years, and in all that time, I have observed something unexpected about the industry. As much as the feeling is that the industry resists change, it has evolved steadily and constantly.

Who could have thought that we could not only identify clashes but also rectify them before the construction began or that construction doesn’t need to happen at the construction site? It would have been hard to imagine a few years ago. But, here we are, and this is just the beginning of how technology is going to revolutionize the way we think and do things in our industry.

The ever-increasing infrastructure demands, and tight spaces on-site have opened the gates to offsite construction. As per one definition, “Offsite construction is the completion of elements or components of a construction project at a different location from where they will be permanently installed.” The offsite construction involves planning, design, and fabrication of the elements which are then built in the offsite manufacturing unit. The manufacturing unit can either be a permanent facility or a temporary facility built for the duration of a project. The finished product is then transported to the construction site for installation.

As they say, necessity is the mother of invention – the global construction industry is looking towards new and innovative ways to keep projects moving faster and more efficiently. And, offsite construction is just one of them. And, I feel this change has been long overdue in the industry.

3D Printing and Offsite Construction – What are they?

The current pandemic situation has made the world turn around to technology to innovate and fight against the COVID19 breakout. 3D printing found global attention when the medical fraternity turned towards it to meet the shortage in supply for masks and other equipment. But, did you know that the construction industry has been using 3D printing to revolutionize the construction methods and techniques for long?

Researchers have been toying with the idea of 3D printing since the early 80s. It took three decades for 3D printing technology to become mainstream but, it started becoming mainstream only recently.

3D printing is a combination of techniques that are used to print a physical structure. The three-dimensional physical structure is created from a digital file in 3D modeling software which is then brought to life via a 3D printer. The technology is relatively new for the construction industry. It is rapidly being developed and innovated to build complete structures like bridges and houses using materials such as concrete, metal, and resin. You would have all seen fascinating videos of homes being built in, what seems like, hours. That’s 3D printing at work.

Understanding the role of BIM in 3D Printing and Offsite Construction

In this technological age, people have certain expectations and demands like speed, accuracy, and an elevated user experience that cannot be fulfilled with traditional construction methods.

I believe that BIM technology is reshaping the digital landscape of the construction industry while offsite construction and 3D printing are set to reshape the physical landscape. And the two are deeply connected. The nature of the beast is such that you have to follow JIT methods. That leaves little flexibility in offsite construction schedules or onsite assembly or installation. To make offsite construction work you need extremely comprehensive, accurate, and current data about the site as it stands. That becomes the base for the elements that get constructed offsite. You cannot afford any gaps or deviations as that will make assembling the elements onsite incredibly difficult, if not impossible. That is where BIM models can deliver massive value. It’s remarkably similar with 3D printing. The structure comes up based on a detailed and comprehensive digital depiction. There’s truly little room for manual intervention or “on the fly” changes. This is a” made for BIM” use-case.

The benefits of 7-dimensional BIM have been well-established in our industry. Now it’s time to realize the potential of BIM in backing innovations like 3D printing and offsite construction.

The construction industry is at a cusp of a technological revolution with BIM, offsite construction, and 3D printing playing a crucial role in it. The future is digital. Considering the acceleration in the pace of life there is likely to be increasing pressure on construction companies to complete structures within a very short period. In essence, the construction industry will have to depend upon technologies like these to deliver better, faster, greener, and sustainable structures. It’s certain that BIM will play a key enabling role in all these developments!

7 Ways to control construction project costs

Construction engineers are driven to look for ways to improve everything from construction methods, the materials used, to the systems used to develop new building designs with lower cost margins and thin financing costs. Under those circumstances, there is a lot of pressure on contractors and designers to find more effective ways to reduce construction costs.

BIM is being used by a growing number of engineers, architects, and contractors to make the design and development of structures faster, better, and more cost-efficient. BIM has been proven to help reduce costs and increase efficiency throughout the project lifecycle ranging from design and construction to facility management.

BIM helps the construction company to save money in the design and construction and development phases of the project. Here are some of the ways how BIM can help lower the lifetime cost of a building:

  1. BIM helps to improve collaboration: Failing to collaborate on projects leads to time delays and increases the cost beyond the initial estimations. BIM helps to enhance collaboration on the projects. This integrated nature of BIM helps to improve productivity within the engineering team and opens up new channels of communication, which makes it easy for the team members to work effectively with others involved with the projects. With BIM, teams come together on a common platform to ensure everyone can play their part. Accessible communication and effective collaboration are some of the main reasons to implement BIM for effective outcomes.
  1. BIM saves time (and cost): In the construction business, ‘time’ and ‘cost’ are essential factors in the project life cycle. One of the main reasons for organizations to adopt BIM is the potential for savings on cost and time. BIM helps to reduce both these elements of the project and improve the efficiency of the project lifecycle. With BIM, organizations can not only unleash creativity and enhance collaboration, but also save time and reduce the costs of the project. BIM helps to plan for the projects based on factors like cost and labor. It also helps discover unexpected expenses and helps the construction company deal with unplanned time constraints.
  1. Helps to improve coordination and clash detection: BIM permits teams to coordinate better and detect any internal, or external clashes before the construction cycle begins. BIM helps to avoid such conflicts with automated clash detection. This helps to reduce the amount of rework required during the construction phase. BIM provides the opportunity to plan it right before the onsite construction begins. It also helps to avoid last-minute changes and any unforeseen issues. Rework is time and effort-intensive, both of which cost money.
  1. BIM enables prefabrication: BIM provides easy storage and access to a wealth of information. This, in turn, helps the construction company leverage innovative means to save money. For instance, this information helps to generate detailed drawings for offsite manufacturing purposes. BIM makes it easy to design, detail, and build structures in an offsite controlled environment, thus increasing efficiency and reducing waste, labor, and material costs.
  1. BIM helps to create safer construction sites: BIM helps to improve the safety of construction sites by pinpointing the hazards at the initial stages of the designing phase before they become problems. This enables the organization to mitigate physical risks by visualizing and planning onsite activities better. The safety and visual risk analysis evaluations with BIM helps to ensure safety throughout the project lifecycle. A safer workplace is a more productive workplace. Safety on the construction site is also a proven way to avoid expenses due to accidents and delays.
  1. Reduces construction changes and design rework: During the design phase, BIM helps to reduce the errors and the redesign cost drastically. With BIM, the central model can be changed, which is then reflected in all associated drawings. By identifying potential issues and conflicts in the design phase itself, organizations can work productively and rework on the construction design problem to reduce errors. This helps to build structures without the need to redo things and eliminate the cost associated with changes late in the cycle. BIM frameworks also allow designers to observe the impact of any design changes instantly and factor those into the build as well as plan for their development.
  1. BIM provides a model-based cost estimation: BIM allows for an effective construction cost estimation, earlier in the planning stage. BIM helps to automate the time-consuming task of applying and quantifying costs, which enables organizations to focus on other value factors, such as identifying and factoring the risks. The BIM models enable better resource and material estimates. This means that materials can be procured in just the right quantity at just the right time. This has a big impact on reducing material wastage and costs associated with onsite storage of materials including material loss and pilferage. There is also the impact on financing costs as funds have to be committed only when they are needed and not earlier. All this helps control costs.

There’s no doubt that BIM or Building Information Modeling has become an essential tool with an abundance of advantages for the construction industry. As this post shows, projects using BIM have the opportunity to control construction costs too by leveraging this powerful technology.

Optimizing decision making with BIM

“To be careless in making decisions is to naively believe that a single decision impacts nothing more than that single decision, for a single decision can spawn a thousand others that were entirely unnecessary or it can bring peace to a thousand places we never knew existed.”
? Craig D. Lounsbrough, Flecks of Gold on a Path of Stone: Simple Truths for Life’s Complex Journey

Construction is an inevitably sequential process. One thing leads to another. Reversing a previous action is costly, time-consuming, and hard. On the other hand, a well-considered decision can set you on the path to successful project completion with the most optimized investment of effort and resources. So, how can we improve the chances of optimal decisions?

BIM or Building information modeling is already becoming a mainstay of the architecture, engineering, construction and operations industry. But with BIM, a carefully curated building information model can also be utilized for making better decisions about the planning, design, development, and operation of the facility.

Incorporating BIM in construction projects allows the following possibilities:

1. Optimized construction planning: The centralization of data in BIM facilitates quality control early in the project lifecycle. The data updated by all the concerned parties helps in creating a 3D visualization of the final facility. The 3D visualization helps in analysing the practicality of the design – whether the design can be implemented and what is the best way of doing so. Such decisions, when taken at the right time, show an impact over the entire lifecycle of the project.

2. Quantity estimation: One of the most wasteful tasks in a construction project is deriving accurate estimates for the quantity of the required raw material. A construction project can be marred by both over as well as under estimation of the quantity. BIM helps drive much better decisions about the accurate quantity of raw material required. It also allows much better decisions to be made about when these materials would be required. This eliminates waste and allows the project manager to adhere to the projected budget and maintain an efficient logistics schedule. That, in turn, results in avoiding time lags caused due to unavailability of raw material.

3. Better collaboration and communication: BIM technology allows easy collaboration and sharing information in real-time between teams and stakeholders. This ensures that all the team members have access to up-to-date project data at all times, anywhere. The accessibility to accurate data helps in eliminating construction errors during the design phase. The elimination of design error help saves time lags during the construction phase caused due to rework or redesign. Time is an essential resource in a construction project. Any time saved is money saved in terms of labour hours and logistics.

4. Better coordination and early clash detection: The BIM-facilitated seamless coordination between all the concerned parties allows the team managers to identify clashes as the construction proceeds. Such clashes cause rework that brings in delays and wasted effort. Even as such clashes may not be apparent very early in the design phase, even within the short term if teams become aware of impending clashes, they can plan for workarounds and plan the immediate effort much better.

5. Safety and risk mitigation: Construction safety is in focus now. This is even more true when the construction site is in harsh or hazardous locations. BIM gives site managers and others tasked with safety, the most accurate and comprehensive data about the construction facility that allows them to make better decisions about the construction keeping safety in mind. For instance, if the model shows that as the facility takes shape a particular stage could present some specific challenges then the option is available to call for some expert help, deploy technology or add more resources at that point in time.

6. Operations and facilities management: A construction project generates humungous amounts of data which can be very useful for the continuing operation and facility management of the building. The collated data in BIM makes it easier for the facilities manager to make better plans for the ongoing management of the facility. The as-built feature comes handy for driving better decisions during renovation or refurbishment works. The digitally centralized data makes it easier for the operations and facility manager to access information regarding the building, which in turn promotes data-driven decision-making about the smooth functioning of the building during its lifecycle.

The most crucial thing in any project is the ability to make/take efficient decisions at the right time. The efficiency of decision-making in a construction project is mainly dependent upon the availability of data. BIM offers an abundance of accurate and current data about the project in one central location. The accessibility of the information enables accurate decision-making across the project lifecycle, right from planning through the construction and, even, into the maintenance phase.

#BIMForYou – How and why Project Managers should use BIM

There’s no longer any question that Building Information Modeling (BIM) has revolutionized the way the AEC industry operates. BIM has delivered a significant impact on long-term projects in terms of economic as well as technical viability. Owing to the cost benefits and various other advantages from the power of BIM, many countries have mandated the use of BIM technology for public projects. This move, in itself, speaks volumes about the significant potential of BIM technology in a construction project.

BIM applies across the design as well as the construction phase of a project. Of course, the life-cycle of a construction project doesn’t end at the handing-over of a facility; it is a continuing cycle. Many traditional construction projects accepted the project life-cycle to end at the handing over process, but, in this era, facilities management is a part of the construction project, and BIM plays a vital role in helping the facilities managers in operating and maintaining a building.

So, the long-term application of BIM technology ensures the efficient design, effective implementation, and smooth functioning and maintenance of a building. The objectives of cost, quality, sustainability, and safety can be met efficiently with BIM technology. The collation and availability of large amounts of data at a centralized location have made operations easier for all the stakeholders of a construction project.

Let’s focus on one key community of stakeholders, the Project Manager.

BIM & Project Managers

To a large extent, the success of a project depends upon the capability of the project manager. It’s important that the roles & responsibilities of a project manager should be clearly defined. BIM aids the project manager in fulfilling the onerous responsibilities of the role and duties by providing a centralized system that allows all the expertise & knowledge of all the involved parties to be brought together. BIM offers the seamless integration of information and ideas that help in mitigating clashes faced during the construction phase.

Let’s look into how & why project managers can use BIM:

  1. Effective Communication & Coordination in the Team

A successful construction project is a result of hard work and input of various involved teams. Traditionally, every team from architects, engineers, builders, electricians, and operations works independently. BIM brings all of them together and creates a centralized pool of information that is accessible to anyone from anywhere at any time. This feature has facilitated effective communication between all the departments, resulting in perfect coordination in the team. The main task of a project manager is to ensure seamless coordination amongst the different groups, and BIM makes this tedious task more manageable.

  1. Accurate Timelines & Estimations 

Achieving timeline and cost objectives play a crucial role in defining the success of any construction project. BIM allows project managers to draw significantly more accurate timelines and cost estimations. The accuracy of the calculations during the planning phase helps in ramping up the effectiveness of the planning function and improves the financial planning of the project.

  1. Phasing-out On-Site Redesigning

Every constructed building ends up being different from its original blueprint. The design tends to evolve as the construction process begins. Over time, these deviations tend to cause time lag and budgeting issues because of the impact on work that follows such changes. Such work ends up having to be changed on the fly, in response to the ground reality. This takes time, costs money, and consumes resources. BIM allows the Project Manager to document the ongoing work better and prevent such situations.

In addition, the clash-detection feature in BIM allows the project manager to identify any issues in the design that could cause clashes between different teams before the construction begins. This helps in saving not only time on redesigning but also the amount of raw material required and ensuring timely delivery of the project.

  1. Accurate Estimation of Raw Materials

One of the most demanding tasks faced by a project manager is deriving estimations for the raw materials required. An inaccurate estimation, both over and under estimation, of raw materials, will result in time lag and over-expenditure. This directly affects the budget and timeline of the project. BIM helps in delivering accurate estimations and reducing the burden on the project manager of manual calculations.

  1. Handing-over and Facilities Management

The role of a project manager in today’s times is not limited to the construction phase. An effective construction project is one that supports efficient operations of the facility even after the handover. The project manager has to ensure that the facilities manager has all the required information for operating and maintaining the building during its operating life-cycle. The centralization of data in BIM helps make it easier for the project manager to handover information to the FM. The BIM models, by virtue of being updated, tend to reflect the as-built state of the structure better. This ensures that the FM provides updated and accurate information to the facilities manager.

As is apparent, the application of BIM plays a vital role in the management of the project. A project manager can leverage the capability of BIM to deliver a successful construction project. BIM reduces the burden on the project manager of manually calculating and managing tasks. It seems clear that for a construction project to be successful today, project managers would do well to adopt BIM technology.

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