1350 martin benchmarking, bim and beyond - etusivu · benchmarking, bim and beyond j martin...

RAKI, Helsinki, March 2013www.bcis.co.uk

Benchmarking, BIM and Beyond

J MARTINExecutive Director, BCIS

RAKI 30th anniversary

RAKI, Helsinki, March 2013

www.bcis.co.uk

Joe Martin

• Executive Director, BCIS of the RICS

• Member of Treasury’s Infrastructure UK (IUK) Infrastructure Data Group

• Member of Cabinet Office/IUK Joint Data and Benchmarking Group


www.bcis.co.uk

RICS

• The Royal Institution of Chartered Surveyors can trace its history right back to 1792 when the Surveyors Club was formed.

• The first RICS Council was elected in 1868. Today we cooperate closely with professional organisations around the world, with members specialising in all subjects relating to property, land and construction.

• Represent 22 disiplines

• 100,000 professional members – 30,000 working in construction

• Members in 146 countries, offices in 30 countries

• www.rics.org


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Government construction strategy


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UK Government Construction Strategy

LESS COST – LESS CARBON

Reduce construction costs by up to 20%

• Procurement (integration, early contractor involvement)

• Benchmarking (knowing what a project should cost –design to cost)

• The use of BIM

Carbon reduction


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Government Construction strategy

• Target of ‘a sustainable reduction in construction costs of 15%-20% by end of this parliament’ (May 2015)

• Must be sustainable

• ‘To be achieved without impacting either whole life value or the long term financial health of the construction industry’

• £1,200m - £1,600m on a budget of £8 billion

• Not intended to reduce expenditure but get more buildings for the same money


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Achieving reductions

How will reductions be achieved

– Better control of scope

– Challenging/reducing scale and quality of projects

– Amended output specifications and floor areas

– Increased standardisation/bulk purchasing

– Reduce non-production cost

– Building Information Modelling

– Avoiding redesign


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Achieving reductions

How will reductions be achieved

– Project team collaboration/integration – Early stage – management– Programme management– Better collaboration with supply chain– Setting challenging benchmarks– Publication of Benchmark data– Using available elemental benchmarks to challenge

allocation of resources


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Government Construction strategy

Three main strands

– Procurement

– Benchmarking

– BIM

… All of which need a construction economist!


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Procurement

‘New’ methods of procurement

– Cost-led procurement

– Integrated Project Insurance

– Two stage open-book


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Procurement

Cost-led procurement

– Cost benchmarks and outline brief

– Framework of integrated teams

– Programme of work

– Value for money


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Procurement

Integrated project insurance

– Cost benchmarks and outline brief


– Third party verification

– Insurance policy – all risks including cost overrun


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Procurement

Two stage open book– Cost benchmarks and outline brief


– First stage – capacity, capability etc (pre-qual)

– Second stage – open book proposal

– Independent stage gate reviews


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Benchmarks

Benchmarks

Cost Reduction Validation Method

10 February 2012

Construction Cost Benchmarks, Cost Reduction Trajectories & Indicative Cost Reductions April 2011 to March 2012

23 April 2012


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Benchmarking

What do we mean by benchmarking?


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Benchmark


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Benchmark

• a permanent physical mark of known elevation used to provide a point of beginning for determining elevations of other points in a survey. (Surveying Moffit & Bossler)


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Management Benchmarking

Management benchmarking

• the continuous process of measuring products, services and practices against the toughest competitors or those recognised as industry leader

• i.e learn from best in class.


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Benchmarking?

Benchmarking Process

BenchmarkMetrics

BenchmarkPractices

Benchmark Gap* How much* Where* When

How close to the gap* Improved knowledge* Improved practices* Improved processes

Superior Performance

Benchmarking Robert C Camp


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Benchmarking?

• We are looking at one dimension.

• Cheapest is not best in class.

• But you cannot judge the value without knowing the cost

• Below average cost may be all we can afford.

• So we need knowledge of costs in the market to set our target.

• This is an everyday activity in a market based society

• We do it with products we buy every day…


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Everyday benchmarking


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Benchmarking

Agreed cost sufficient to build to the required standard, verifiable from the market

‘Should cost’As distinct from the

‘Will cost’

Design to a cost not cost a design


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What do we use benchmarks for?

• Estimating cost of new projects:

• What do we expect our project to cost relative to the cost of previous projects?


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Benchmark estimates

RICS New rules of measurement - order of cost estimating and elemental cost planning (NRM1)

Defines an Order of cost estimate as a benchmark estimate, i.e. It is based on knowledge of what building costs rather that the cost of building a specific design

• This is the data that BCIS collects

• … and the knowledge that exists in an experienced surveyors head!


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BCIS database

BCIS database

– Building £/m2 gross internal floor area

– Building costs/functional unit

– Element £/m2 gross internal floor area

– Element £/element unit quantity

Element ‘a major physical part of a building or other entity that fulfils a specific function or functions irrespective of its design, specification or construction,’


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Primary Schools £/m2, 1Q2013, UK Mean Location

Primary Schools


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Primary SchoolsExternal Walls

£/m2, 2Q2012, UK Mean Location


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Government (Cabinet Office)Benchmark data

Cost Benchmark data

• Type 1 benchmark; Spatial measures - £/m2, £/m, £/km, £/m3

• Type 2 benchmark: Functional measures – business outcomes £/place in schools, £ of flood damage avoided/£ invested

• Type 3 benchmark: department specific – e.g. MoJ ratio of production cost/total construction cost

• Type 4 benchmark: Type 1 at the elemental level


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Type 1 and Type 2 benchmarks

Primary Schools (Index Cost per floor area/Cost per place)

40

60

80

100

120

140

160

30 years 25 years 20 years 15 years 10 years 5 years

£/m2 £/place


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Highways Agency benchmarks


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Highways Agency benchmarks


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Cost Reduction Validation Method

Cost reduction validation - calculation method

• Publication of baseline benchmarks by departments e.g.– Cost of school by £/m2

– Cost of a road by £/lane kilometre

• Costs reduction reported by comparing current benchmarks with baseline benchmarks

• Generally benchmarks based on – contract award (commitment) data.

– Or where this is not available, otturn (throughput) data


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Benchmark data

Benchmarks show single point average (mean) and 20th and 80th percentiles

Defined ranges

• Range T (top), 80th minus mean/mean as a percentage

• Range B (bottom), 20th minus mean/mean as a percentage

• Range T+B, 80th minus 20th/ mean as a percentage


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Benchmarking Objectives

Objectives:

• to incentivise higher levels of integrated team working, continuous improvement and effective innovation

• challenge to ‘beat the benchmark’

• benchmarks will fall overtime and cost will increasingly cluster at the lower end of the range of costs currently paid for similar products.

• Point of reference for wider public sector – Health trusts and local authorities


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UNCLASSIFIED

Benchmark data


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Counterfactuals

• The cost reduction validation will take account of ‘counterfactuals’ i.e. the circumstances that would have prevailed had the:– Government Strategy not been introduced

– External factors, such as building regulations, not been introduced

• Therefore benchmarks will be adjusted for inflation with due recognition that:– Market pressures lead to improved efficiency and therefore become

sustainable

– Global commodity prices suppress the restoration of construction inflation


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Inflation

Tender Price Index of Public Sector Building Non-Housing

50

70

90

110

130

150

170

190

210

1Q2000

3Q2000

1Q2001

3Q2001

1Q2002

3Q2002

1Q2003

3Q2003

1Q2004

3Q2004

1Q2005

3Q2005

1Q2006

3Q2006

1Q2007

3Q2007

1Q2008

3Q2008

1Q2009

3Q2009

1Q2010

3Q2010

1Q2011

3Q2011

1Q2012

3Q2012

1Q2013

BIS PUBSEC Tender Price Index of Public Sector Building Non-Housing


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Benchmarks

Benchmarks provided by:

• Department of Health (Procure 21)

• Department for Environment, Food and Rural Affairs/Environmental Agency

• Department for Transport/Highways Agency

• Department for Communities and Local Government/Homes and Communities Agency

• Ministry of Defence/Ministry of Justice

• Department for Education/Education Funding Agency


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Future Benchmarks

Benchmarks to be published from the Regulated Sector

• London Underground

• Network rail


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Benchmark details

Details of what is included:

• What the data represents

• Statistical population represented

• What is included/excluded. The building based benchmarks are given mapped against NRM1 Costbreakdown structure.

• Where the data comes from

• How it has been calculated

• Departments to state proportion of expenditure covered by benchmarks


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Benchmarks

Type 1 and Type 4 benchmark metrics are all cost per unit.

All the building benchmarks are cost per m2 gross internal floor area

The scope for buildings is defines by reference to the NRM1/SFCA list of costs for cost planning

Scope of other construction entities are also defined but are all different.


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Retaining structuresEmbankments

Environment benchmarks for CO/IUK

Unit Cost £1 Date

Mean Range2

P10 P90

Embankments 500 to 5000m3 total volume

Total project cost3 m3 31 17 38 2011/12


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Benchmark data and BIM

BIM Commercial Phase 2 - Data Structures

Report for Cabinet Office by BCIS

• Data recorded by the clients in order to establish their benchmarks and agree project costs

• Standard classification

• Represented in a BIM

• Reported in COBie


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Information requirements

The types of information required are:• Entity• Entity types (entity by user function)• Costs for:

– Elements– Non-Elemental cost categories

• Abnormals• Type of work (new build, refurbishment, etc)• Usability of floor space (buildings)• User function of ‘spaces’ (subdivision of entity)• Cost influencing factors• Measurement of whole entities, Type 1 measures• Measurement of ‘spaces’ (subdivision of entity)• Functional metrics, Type 2 measures• Measurement of Element Unit Quantities, Type 4 measures


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BIM is integral to the Construction Strategy

BIM Strategy published June 2011

Also:Low carbon strategyInfrastructure strategy


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Government’s Hypothesis for BIM

Government as a client can derive significant improvements in cost, value and

carbon performance through the use of open sharable asset information


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Enabling the Government BIM Strategy


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Target

Target for all projects to deliver information at level 2 of the maturity model within five years.

Managed 3D environment held in separate discipline ‘BIM’ tools with attached data. Commercial data managed by an ERP. (‘Enterprise Resource Planning’ software) Integration on the basis of proprietary interfaces or bespoke middleware could be regarded as ‘pBIM’ (proprietary). The approach may utilise 4D programme data and 5D cost elements as well as feed operational systems.


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Challenge for the Cost Consultant

‘The effective adoption of BIM technologies by cost consultants and planners has been slow to date, and should this situation remain, then cost and programme services will not benefit from the productivity and speed of response that a settled BIM process can offer.

This is not to say that the adoption of BIM will not be without its challenges, but that the professions cannot afford to be outside of the BIM loop.’


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COBie drops

Drop 1 2 3 4

End of design brief

End of design development

Tender documentation

Handover

Use Check against:Client’s brief

Cost planning

Risk Management

Check against:

Project brief

Cost planning

Tender

Transparency

Environmental checks

Package scope check,

Cost checks,

Carbon checks

O&M Data handover

Actual costs

Actual programme

Actual carbon performance

Key client benefits

Does the brief meet my requirements in terms of function, cost and carbon?

Has anything changed?

What is being priced by main contractors?

Has anything changed?

Has design been over value engineered?

Did I get what I asked for?

Data to manage my asset effectively.


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Initial Cost Estimate

Initial cost estimate produced:

• Before the model

• Based on employer’s requirements

• Floor areas or functional units (e.g. school places)

• Benchmark costs

• Elemental


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Initial cost estimate

Refined benchmark cost estimate based on element unit rates from ‘massing model’


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Cost checks as design develops

As the design and the model develop, the required measurement and specification needs to be derived automatically from the model, to allow cost checking to the initial estimate.


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Employer’s Information Requirement

The Employer’s Information Requirement (EIR) will identify the cost information it requires and,

The Supply Chain Information Execution Plan (SCIEP) will need to be explicit in explaining how the information modelling aspects will be carried out to provide the information required.


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BIM and Infrastructure

Note: this slide has been stolen from Christophe Castaing (EGIS) and Pierre Benning (Bouygues Travaux Publics


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Data model and IFC for Infrastructure

Note: this slide has been stolen from Christophe Castaing (EGIS)and Pierre Benning (Bouygues Travaux Publics)


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22/03/2013UNCLASSIFIED

Thanks:

Mark Bew, Engineering Construction Strategies LtdNick Nisbet, AEC3Christophe Castaing, EGISPierre Benning, Bouygues Travaux PublicsJared Banks, Shoegnome, LLC, USA

Thanks


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Links

Full details at:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61152/Government-Construction-Strategy_0.pdf

http://www.cabinetoffice.gov.uk/resource-library/construction-cost-benchmarks

http://www.bimtaskgroup.org/wp-content/uploads/2012/03/BIS-BIM-strategy-Report.pdf


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Construction economists

Construction Economists

The futures bright

RAKI, Helsinki, March 2013www.bcis.co.uk

Benchmarking, BIM and Beyond

J MARTINExecutive Director, BCIS

RAKI 30th anniversary

1350 martin benchmarking, bim and beyond - etusivu · benchmarking, bim and beyond j martin...

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