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BIM Q&A: How BIM Enhances Cost Management Efficiency and Its Key Role

BIM plays a crucial role in cost management through three key areas: organizational structure, procurement methods, and working practices.

BIM Q&A | How can BIM improve the effectiveness of cost management? The main role of BIM in cost management

Organizational Structure

Traditionally, construction projects have a simple organizational structure, primarily centered around the cost consulting unit. Cost personnel from various participating parties collaborate to manage costs. With the adoption of BIM technology, this structure evolves to resemble the IPD model. The cost consulting unit no longer dominates; instead, cost management personnel from each participating party become the main contributors.

A dedicated cost management team is formed to oversee the entire project’s cost-related issues, ensuring involvement throughout all phases. This shift strengthens information flow and enhances coordination among participants and departments, which is highly beneficial for effective cost management.

Procurement Methods

Currently, there are three main procurement models in construction projects:

1. Design-Bid-Build (DBB)
This is the most common procurement mode in China. It offers strong economic competitiveness by allowing owners to control costs through bidding. However, its drawback lies in the sequential process—design first, then construction. The design team often focuses solely on meeting the owner’s requirements without fully considering overall project costs, quality, or construction technology. This disconnect leads to frequent changes during construction, causing delays and financial losses.

Applying BIM in the DBB model can improve design quality, but limited collaboration among parties restricts the full potential of BIM technology.

BIM Q&A | How can BIM improve the effectiveness of cost management? The main role of BIM in cost management

2. Design-Build (DB)
In this integrated model, contractors manage both design and construction. They must ensure the design meets owner requirements while considering construction feasibility, project costs, and scheduling. Effective communication and coordination among participants are essential to maximize management efficiency and cost control.

The advantage of DB lies in its holistic approach and strengthened collaboration. However, the general contractor holds significant control, creating a dependency risk for the owner and limited communication opportunities between subcontractors and the owner. Compared to DBB, BIM technology has greater impact here, as the general contractor’s comprehensive responsibility aligns well with BIM’s capabilities in cost management.

3. Integrated Project Delivery (IPD)
This model forms a cohesive team of all parties involved—including designers, contractors, and suppliers—centered around a BIM platform. They share information and work towards common goals, leveraging teamwork to develop the most efficient, economical, and effective solutions.

IPD effectively controls project costs while maximizing benefits for everyone involved. BIM technology maximizes its value in IPD by enabling early participation, fostering trust and cooperation, and facilitating joint decision-making. This approach prevents information asymmetry, improves cost management efficiency, and enhances coordination among all parties.

Working Methods

Traditionally, cost management is the sole responsibility of the cost consulting unit, covering all project stages from investment decisions to design, bidding, and completion. This point-to-point communication clarifies responsibilities and risks, avoiding overlapping management.

With BIM, this approach shifts from isolated point-to-point interactions to a more integrated, collaborative process. Cost consulting units no longer control cost management exclusively; instead, all parties participate from the project’s early stages to jointly manage and control costs. This results in faster information sharing and transmission, as well as more scientific and effective cost management.

In summary, BIM implementation significantly impacts traditional cost management practices. To fully leverage BIM’s benefits, it is essential to continuously refine practical applications, accumulate experience, and tailor BIM approaches to specific project needs, thereby maximizing cost management efficiency and accuracy.

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