Investment fears aside, BIM lowers labor costs and coordinates teamwork among project stakeholders.
This is the second article of a three-part series that will examine important productivity drivers representing the construction industry’s future.
Computer modeling has become a game changer in construction. In its earliest form, architects, engineers and contractors used digital modeling tools to provide impressive marketing. Customers gasped as dramatic “flyovers” depicted their facility or building. Contractors have led the evolution of building information modeling (BIM) from the “oohs and aahs” of the boardroom to real-world applications. Progressive contractors are using BIM in conjunction with lean methods and prefabrication concepts to integrate benefits across not only spatial dimensions, but also measures of time and cost.
The Drawbacks
Critics still line up to denigrate BIM. Is it a true game changer, or is it a glorified marketing device that has enormous upfront costs with little payback? How does a trade contractor wield this tool in the face of skeptical general contractors, shrewd customers and defensive engineers? Technological advancement has never been without detractors, who continue to treat BIM like a passing fad.
The criticism has some merit—done poorly or incorrectly, BIM and its costly accessories are a paperweight. But used properly, BIM provides contractors the capability to utilize a long-term investment that yields quality and productivity gains for many years.
Dramatic changes in project design have strongly influenced contractor productivity. Interestingly enough, the groundswell in this design enhancement has been led by trade contractors, not designers. Recognizing the need to compensate for poor or inadequately designed structures and systems, contractors took up the BIM reins to control their risk and deliver higher-quality finished projects. According to FMI’s Productivity Survey, 63 percent of the respondents have engaged in a project where BIM was utilized.
From a strategic perspective, firms must make a serious commitment to the long-term utilization of BIM. Many firms view the costs associated with rework, inefficiency and poor coordination as enough motivation. Yet BIM’s considerable investment and operational costs often scare many contractors away from adopting the model. 
According to Figure 2 above, a combined 62 percent of survey respondents experienced some increase in their labor productivity from BIM. While labor savings occurred on these projects, the corresponding costs could offset any savings. Furthermore, the cost only exists because of inefficiencies in the delivery system and compensation for design inadequacies.
Regardless of the rationale, the likelihood of designs improving in the short term and long term is doubtful. Architects and engineers are under many of the same budgetary constraints as contractors. Yet proactive contractors recognize the inevitable movement toward this model. What the industry will soon see is BIM 2.0, rather than just BIM—meaning future software that is capable of incorporating budget and scheduling dimensions to improve the construction experience.
All-In or Bust
One of the main challenges to BIM lies in the overall adoption across a team of contractors, not just the individual firm. Much like the early days of the fax machine, sometimes a great tool only produces real benefits when everyone has one. According to the summary in Figure 3 below, survey respondents declared that “clash detection and interference management” remain the primary tactical reason for BIM.
The cost associated with an unproductive crew waiting on a resolution to a conflict is enormous. There are countless case studies demonstrating the power of clash detection by eliminating requests for information and contentious claims. BIM offers not only a direct correlation to labor productivity, but also customer management, trade coordination and materials handling. BIM’s larger role in the world of integrated project delivery provides another competitive advantage for organizations seeking to avoid the fray of the hard-bid marketplace. However, just like any strategic initiative, contractors must recognize the need for a wholesale investment—and how little room there is for dabblers.
The Digital Edge
Technological enhancements relating to productivity are not limited to BIM. Truly innovative organizations are utilizing everything from RFID tags for tools and materials management to handheld devices to drive information. Drawings, specifications, planning documents, time reporting and labor cost feedback are just a few examples of data being shared in real time with field managers and foremen. No longer is it necessary to wait 30 days to evaluate job performance. Instantaneous flow of information allows everyone to know the score of the game.
More importantly, many of these tools are extremely cost-effective and require significantly less of an investment than many contractors anticipate. The infrastructure and training required to drive the necessary change is less than the commitment to learning the intricacies of a laptop. In considering BIM and other digital solutions, contractors should consistently recognize the importance new technology and the incorporation of productivity enhancers. Despite fears of initial investment costs, lower-cost options do exist that can integrate with minimal conflict. Neophyte thinking has always been dangerous in this industry. Contractors must catch up with the times and understand how they can simultaneously be innovative and profitable members of their industry.
