Return on Investment Analysis of Building Information Modeling in Construction

Building information modeling (BIM) signifies the creation and use of a three-dimensional virtual model that replicates the design, construction, and operation of a building. This technology's recent emergence and the evolution of virtual design and construction (VDC) in the architecture, engineering, and construction (AEC) industry is fundamentally changing the process by which buildings are designed, constructed, and used for future generations. However, BIM's high initial cost has deterred many industry professionals from putting the technology to practice. In many cases, an owner's acceptance of BIM is crucial to the success of a company's capacity to finance VDC goals. In order to persuade stakeholders to see the potential benefits of paying additional fees, this study presents the possible cost savings of BIM's implementation. The research objectives were to justify the high initial investment of BIM, to encourage a greater commitment to technological advancements in the AEC industry and to convince the general public of BIM's cost savings. A comprehensive literature review was performed to define BIM and its history in the industry, present its quantitative and qualitative benefits, and find similar case studies that have been conducted on the return on investment (ROI) of using BIM. Using a sample of past project data from a medium-sized commercial construction firm, two case studies of varying project types were conducted. In each study, a recently constructed BIM-assisted project was compared to a similar project constructed without BIM. The potential savings to an owner choosing to invest in BIM as an additional service were estimated based on the measurable cost benefits associated with reduced schedule overruns, fewer requests for information (RFIs) and reduced change orders. This research confirmed that BIM is a worthwhile investment for owners. In the two case studies presented, the ROI of BIM varied greatly from 16% to 1654%. Though an owner's decision to invest in BIM should be weighed heavily against the scale and complexity of a project, this research suggests that vast savings may be realized regardless of a project's size. ( en )