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BIM Q&A: Using BIM for Accurate Cost Estimation and Construction Phase Cost Management

The application of BIM technology during the construction phase primarily involves the use of BIM 5D. This approach enables dynamic analysis of process calculations and costs, significantly enhancing cost control efficiency. BIM 5D is a five-dimensional building information model that integrates “time schedule information” and “cost information” with the traditional 3D building model, forming a composite of 3D model + 1D schedule + 1D cost. It combines data on engineering quantities, progress, and costs.

This model allows for workload estimation and links the 3D building components with the construction schedule, enabling dynamic simulation of the construction process. This integration facilitates real-time monitoring of progress and cost control. Key challenges addressed by BIM 5D include:

BIM Q&A | How to use BIM for cost estimation? Application of BIM technology in cost management during construction phase

1. Quality Management with BIM
BIM technology enables quality issues to be recorded and tracked via the BIM 5D platform. This allows for effective analysis of common quality problems, helping management take preventive actions and prioritize inspections in future construction activities. This proactive quality management approach reduces rework and hidden risks, ensuring a more orderly cost management process.

2. Schedule Management through BIM
The overall construction schedule can be imported into the BIM 5D platform, allowing simultaneous management of both the schedule and the 3D model. BIM technology enables 3D simulation of the construction progress, helping verify actual progress and facilitating mid-term settlements with fewer approval delays. Based on the simulation, the schedule can be linked to the budget, enabling detailed fund allocation and coordination across different specialties. This approach optimizes resource allocation, reduces waste, and supports procurement planning by identifying material requirements for each phase. Contractors can plan work, allocate manpower and materials efficiently, and strictly follow construction drawings to avoid delays.

During construction, changes are inevitable—whether initiated by the construction team or the owner. The BIM 5D model clearly quantifies the scope of changes and allows real-time schedule adjustments to keep progress within manageable limits.

BIM Q&A | How to use BIM for cost estimation? Application of BIM technology in cost management during construction phase

3. Material Management Using BIM
By generating material reports through the BIM 5D platform and implementing on-site material requisition quotas, material waste is minimized, ensuring efficient use of resources. Construction teams can create material usage plans based on engineering quantities, coordinate material deliveries, and dynamically manage material consumption to stay within budget.

4. Business Management with BIM
Material consumption is closely linked to schedule management, allowing for rational allocation of materials according to construction progress, as discussed above.

Regarding total and subcontractor settlements, the BIM platform helps determine winning quantities and prices, budgeted quantities and prices, and subcontract prices. This clarity defines responsibilities and construction scopes clearly. During settlements, budgets and costs for each subcontract are calculated based on the scope, and subcontract inventories are quickly identified. This detailed management model, with clear clauses and defined roles, reduces disputes and delays in settlements.

Furthermore, BIM technology enables dynamic cost management analysis. By comparing winning bid prices, budgeted prices, and actual costs, it becomes easy to identify any budget overruns. The causes of these overruns can then be analyzed, allowing for timely corrective measures. Continuous deviation analysis throughout the project lifecycle ensures effective cost control and management.

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BIM WORLD » BIM Q&A: Using BIM for Accurate Cost Estimation and Construction Phase Cost Management

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