This week McGraw Hill Construction released its SmartMarket Report on The Business Value of BIM in Australia and New Zealand. The report, sponsored by Aconex and other partners, surveys 435 design and construction industry professionals in the ANZ region, including both BIM and non-BIM practitioners. Among the world’s major construction markets assessed in a previous McGraw Hill report, ANZ ranks third behind the U.S. and South Korea in percentage of BIM users with more than three years of experience in the discipline.
Fifty-one percent of ANZ users are currently engaged with BIM on more than 30% of their projects – and this is expected to grow to 74% by 2015. Over the same period, the percentage of contractors implementing BIM on at least a third of their projects will double, from 33% to 66%. By comparison, 61% of designers use BIM on 30% or more of their projects today, and 56% will implement it on over 60% of their projects by 2015.
McGraw Hill’s findings are consistent with the market experience of Aconex – more than half of all new construction projects on the Aconex platform worldwide involve multi-company project teams collaborating on BIM models and processes. Certain regional projects profiled in the report – including New Royal Adelaide Hospital and the Canterbury Earthquake Recovery program – have been supported by Aconex.
BIM ROI for Infrastructure and Construction Projects
Forty percent of the ANZ users surveyed report positive return on their investment in BIM – up to 25%. Eighty percent cite the three most important ROI metrics as:
- Process improvements, such as fewer requests for information (RFIs) and unplanned changes
- Faster project delivery
- Financial improvements, such as reduced cost, higher profitability and increased productivity.
ROI varies by sector and implementation level:
- Fifty-five percent of users that focus on infrastructure projects report ROI of more than 25%.
- Twenty-nine percent of commercial and residential BIM practitioners report the same.
There’s a direct correlation between BIM engagement and returns:
- Forty-seven percent of users implementing BIM on over 60% of their projects report ROI above 25%.
- Only 10% of users at implementation levels below 15% report comparable ROI.
Planned BIM investments over the next two years include:
- Development of internal BIM procedures (58%)
- Custom 3D libraries (47%)
- BIM processes with external parties (47%)
- New or upgraded desktop systems (43%).
Reduced Errors and Rework, Increased Collaboration
ANZ users at the higher levels of BIM implementation cite improved project accuracy and efficiency as well as opportunities for collaboration with other firms on the project team as key short-term benefits:
- Forty-five percent experience fewer errors and omissions.
- Twenty-eight percent are able to reduce rework.
- Twenty-seven percent are able to collaborate with owners, designers or other external firms on their projects.
- Additional benefits reported by users include enhancement of their organization’s image as an industry leader (38%) and the ability to offer new services (22%).
Because the region is at an intermediate phase of BIM engagement, BIM business and project benefits score lower than they do in more mature regions such as North America and South Korea:
- Seventeen percent of those surveyed report better cost control and predictability.
- Sixteen percent claim reduced workflow cycle times.
- Faster approval cycles rank at 7% for regulatory approvals and 6% for client approvals.
Long-term benefits enjoyed by experienced BIM practitioners in ANZ include:
- Reduction of overall project duration (16%)
- Lower construction cost (14%)
- Increased profitability (12%)
- Improved safety (9%).
These benefits are rated highly by approximately twice as many users focused on infrastructure projects as they are by commercial and residential designers and builders.
BIM Adoption and ROI Drivers
McGraw Hill devotes a section of the report to non-BIM users in ANZ – why they haven’t adopted BIM, how they perceive their competitors’ and clients’ use of it, what would convince them to adopt it, and factors that either delay or encourage their adoption. The chief reasons for non-adoption include the perceived lack of demand from owners and other firms on projects. However, the report also notes that 83% of owners included in the survey either require or encourage BIM skills and experience in their selection of project team members.
BIM collaboration across project teams is in its infancy – only 9% of ANZ contractors regularly receive BIM models from designers, which is far below the model-sharing practices of other major regions. Contractors rank several factors that would increase the benefits of BIM, including:
- The integration of BIM data with mobile devices and apps (100%)
- The use of contracts to support BIM and collaboration (86%)
- Better interoperability between software applications (86%)
- More clearly defined BIM deliverables between project participants (86%).
Contractors also rank benefits that would continue to improve BIM ROI. These include:
- More efficient project processes (58%)
- Better multi-party communication from 3D visualization (57%)
- Increased job site safety (31%)
- Positive impact on sustainability (30%)
- Reduced cycle time for project activities and delivery (28%).
“BIM is fast becoming a must-have capability.”
Based on its research data, McGraw Hill makes a series of recommendations for the ANZ construction industry:
- Evaluate the sharing of models across design and building teams in more advanced geographies – Canada, Brazil, South Korea, the U.S., and the U.K. – and determine why this isn’t more prevalent locally.
- Learn from other regions how to increase the value of BIM in areas that have proven successful – e.g., coordination of multiple trade disciplines, model-driven layout in the field, and integration of models with inspection and handover processes.
- Create as-built models for owners as an opportunity for growth and competitive differentiation.
- For users: improve BIM skills and engagement levels in order to generate greater benefits.
- For non-users: engage now, since the longer it takes to adopt and implement BIM, the more challenging it will be to compete with existing users.
Aconex – Here to Help You with BIM
With headquarters in Melbourne and offices throughout Australia and New Zealand, Aconex has been serving the ANZ construction market since 2001. We help owners and contractors successfully deliver BIM projects through collaborative information and process management.
For us and our clients, BIM is much more than 3D models. It’s objects and spaces within models, tagged with comprehensive project data that captures a complete history of coordination and collaboration between multi-company design and construction teams – and delivered to owners as a clear roadmap for asset operation and maintenance.
Wherever you are on the BIM adoption and usage curve – pre-BIM, beginning, intermediate, or advanced – we look forward to speaking with you about your construction projects and how structured collaboration can improve their performance. Download our free eBook – BIM: Breaking Down the Barriers – and contact us today for a demo of Aconex construction management software.
SmartMarket Report Image: McGraw Hill Construction
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