BIM Technology has always been viewed as a tool to enhance project profit margins. Based on project profit requirements, it is mainly divided into two categories: budget BIM (focused on revenue) and construction BIM. These two BIM systems are developed according to distinct needs, following the principles of “Create ‐ Maintain ‐ Share,” which support refined project management. Let’s explore how BIM technology drives profits.
Budget BIM — Income
Budget BIM refers to BIM model data created, maintained, and shared during the preparation of engineering project budget documents. It relies on construction contracts, drawings, review minutes, and relevant national and local regulations, including technical approval forms, visa forms, engineering contact forms, change orders, and other documentation agreed upon with the project owner. From bidding to project completion, budget BIM runs through the entire project management process and serves as an important reference for owner payments.
Currently, China’s engineering contracts generally fall into two models: fixed total price contracts and fixed unit price contracts. Both models share the characteristic that the comprehensive unit price remains unchanged during construction once the contract is signed (usually with a ±5% material price adjustment clause). Therefore, whether process payments are based on engineering stages (e.g., underground primary structure) or monthly progress (often declared and reviewed on the 25th of each month), the payment is closely linked to quantifying work in the budget. Budget BIM’s flexibility to split project quantities anytime and anywhere perfectly meets this requirement.
Moreover, the economic analysis methods stipulated in Chinese engineering contracts typically follow two modes: lists and quotas. Lists include the national 2008 standard list, port-style lists, and enterprise-adapted lists (e.g., Jindi Real Estate). Quotas are divided into local quotas and enterprise-specific standards evolved from local quotas (e.g., Greenland, Poly). Each method has its own calculation rules, specifications, and project divisions. Budget BIM’s adaptable calculation capabilities support seamless switching between these standards, significantly enhancing budget data acquisition and analysis efficiency.
For example, in government projects—usually involving state-owned assets and employing the fixed unit price contract model with national 2008 inventory and monthly progress payments—budget BIM plays a vital role throughout budget data management. During bidding, the construction company establishes an initial budget BIM based on bidding drawings, documents, and item details, using the owner’s calculation rules and specifications to verify quantities and conduct strategic bid analysis. After winning the contract, the project team refines and adjusts the budget BIM according to finalized drawings and review minutes to ensure consistency with owner-approved documents.
Throughout construction, budget BIM is continuously maintained using owner and supervisor approvals for change orders, visa forms, technical approvals, and engineering contact forms. This data is called upon promptly and accurately to support monthly reports, output estimates, and payment settlements. Budget BIM is dynamically updated and verified with the owner until project completion, with BIM technicians adjusting data within specified limits based on experience and negotiation skills. This process guarantees timely, accurate, and advantageous data for the owner, minimizing omissions and delays.
Construction BIM — Cost
Construction BIM (traditionally known as “construction budget”) is BIM model data created, maintained, and shared throughout construction, building upon the budget BIM. It incorporates the on-site construction plan, actual technology, company standards, and special process techniques. From contract preparation to project completion, construction BIM runs through the entire project management process and serves as a critical basis for cost accounting, subcontractor settlements, and material supplier payments.
In China, construction enterprises—whether state-owned or private, directly operated or affiliated—use labor teams for on-site work. Enterprise personnel typically serve as management, overseeing and guiding rather than performing production tasks. Due to the lack of operational standards, labor teams generally use similar construction techniques. Consequently, construction BIM exhibits a degree of universality and versatility.
Construction BIM, as a project management tool, focuses heavily on data generated by actual site operations and provides powerful construction guidance. To improve efficiency, construction BIM is often optimized and refined based on the project’s budget BIM. For instance, while budget BIM calculates stair concrete volume by projected area, construction BIM performs volume measurements based on actual site conditions.
Unlike budget BIM, which considers changes confirmed by the owner, construction BIM comprehensively accounts for on-site realities, including changes caused by construction party errors. Although owners do not recognize these additional workloads, contractors must factor them into material procurement and quantity analysis. Construction BIM’s close alignment with actual site conditions also leverages BIM’s 3D virtual representation for construction guidance, collision detection, and drawing query resolution in three dimensions.
Construction BIM provides timely, accurate, and site-specific solutions at the component level. Its data significantly supports project management activities such as material requisition limits, material planning, cost estimation, fund allocation, secondary processing, subcontractor payments, and supplier settlements. It is the core data management tool underpinning the entire project management system.
In summary, BIM technology creates profits through refined project management. In other words, BIM elevates project management to generate profit margins—something that simple modeling alone cannot achieve.
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