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This document is downloaded from CityU Institutional Repository,
Run Run Shaw Library, City University of Hong Kong.
Title Innovative generation in cost management through BIM environment
Author(s) Lin, Mushui (林木水)
Citation
Lin, M. (2013). Innovative generation in cost management through BIM environment (Outstanding Academic Papers by Students (OAPS)). Retrieved from City University of Hong Kong, CityU Institutional Repository.
Issue Date 2013
URL http://hdl.handle.net/2031/7147
Rights This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner. Access is unrestricted.
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Innovative Generation in Cost Management
through BIM Environment
By
Mushui LIN
Submitted in partial fulfillment of the requirements for
the degree of Bachelor of Science (Honours) in Surveying
Department of Civil and Architectural Engineering
City University of Hong Kong
March 2013
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DECLARATION
I declare that this thesis represents my own work, except where due acknowledgement
is made, and that it has not been previously included in a thesis, dissertation or report
submitted to this University or any other institution for a degree, diploma or other
qualification.
Signed _______________________________
Mushui LIN
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i
ABSTRACT
Construction cost management is essential for the success of a project. The
procedures in the project cost management include pre-contract cost estimating and
post-contract cost control. Cash flow forecasting, as one of the processes in the post-
contract cost control, serves the functions of: 1) assisting project managers to
anticipate the total planned budget, 2) illustrating a difference between anticipated and
actual expenditure of the project in a monthly basis, and 3) timely reminding the
client possible risks of overbudget and to take prompt remedial actions. Building
Information Modeling (BIM) is a new innovative technology that allows relevant
graphical and topical information related to the built environment to be stored in the
database for access and management through a project lifecycle. With development of
digital technology, data and information can be linked with 3D components in BIM to
provide 4D, 5D and 6D BIM. It is predicted that BIM could have a marked impact on
the construction industry and is regarded as a major challenge to conventional
professionals in AEC industry including Quantity Surveyors.
However, there is seldom research about what services can Quantity Surveyors
provide to Client on the BIM projects. This research will establish a framework of 5D
BIM construction cost management and evaluate the degree of feasibility and
efficiency of using 5D BIM for Quantity Surveyors in preparing cash flow forecast
for cost control. During the research process, the procedures for generating 5D BIM
cash flow forecast are demonstrated. The benefits and difficulties encountered are
described and analyzed. Solutions for some problems and recommendations for
improvement are discussed.
This research involves a pilot study to create cash flow forecast by using 5D BIM
technology. The steps in the pilot study include 3D model drawings, BIM quantities
takeoff and measurement, Bills of Quantities production and pricing, construction
programme planning, cash flow forecast and 5D simulation.
Through this research, it is found that 5D BIM is feasible to be used for construction
cost management by Quantities Surveyors. The benefits of 5D BIM in cost
management include 1) visualized communication; 2) fast response in model-based
cost management; 3) leveraged integration of information; and 4) close monitor on
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ii
actual cash flow. However, there are some difficulties or loopholes revealed due to
the contradictions between current cost management practices and BIM approach. It is
recommended that the industry needs to redefine current standards in order to make
BIM adoption and use easier. In addition, the university and the construction industry
needs to work collaboratively to ensure that BIM modules are introduced into higher
education curricula.
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iii
ACKNOWLEDGEMENTS
This dissertation would not have been possible without the guidance and the help of
several individuals who in one way or another contributed and extended their
assistance in the preparation and completion of this study.
First and foremost, I would like to express my sincere gratitude to my dissertation
supervisor, Dr. Daisy K. L. YEUNG, for her valuable guidance, advice and
continuous support throughout the production of this dissertation. She can always give
me insightful comments and inspiration when I hurdle the obstacles in the completion
of this research.
Besides my supervisor, I would like to thank Mr. Calvin KEUNG, for his kind
encouragement and assistance during the preparation of this dissertation. My sincere
thanks also go to Mr. K.K. CHAN, for his insightful knowledge and kind support for
this research.
I thank Mr. Kelvin KUO of isBIM Limited, the Hong Kong Institute of Surveyors,
BuildingSMART (Hong Kong) for their beneficial experience sharing.
Last but not least, I thank my families and friends for their numerous love, care and
support. Whenever I felt confused and pressured, they became my intimate audience.
This work is dedicated to them.
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TABLE OF CONTENTS
Abstract i
Acknowledgements iii
Table of Contents iv
List of Tables ix
List of Figures x
Page
CHAPTER 1: INTRODUCTION 1
1.1 Background to the Research 1
1.2 Statement of the Problem 3
1.3 Research Aims and Objectives 4
1.4 Methodology 4
1.5 Research Procedures 6
1.6 Outline Structure of the Thesis 7
CHAPTER 2: LITERATURE REVIEW-BIM 9
2.1 Introduction 9
2.2 Introduction to BIM 9
2.3 Adoption of BIM in the Construction Industry 13
2.4 BIM and Construction Planning 15
2.5 Model-based Estimating and Quantity Takeoff 17
2.6 BIM and Quantity Surveying Practice 20
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2.7 Adoption of BIM in Hong Kong 20
2.8 Worldwide BIM Standards and Policies 21
2.9 Future & Preparation for BIM 24
CHAPTER 3: LITERATURE REVIEW-CONSTRUCTION COST MANAGEMENT 25
3.1 Introduction 25
3.2 Process of Construction Cost Management 25
3.3 Cash Flow Forecast 26
3.4 Cash Flow Curve 27
3.5 Cumulative Cost Curve 28
CHAPTER 4: RESEARCH METHODOLOGY 30
4.1 Introduction 30
4.2 Background of Research 30
4.3 Research Framework 30
4.4 Description of Research Framework 32
4.5 Background of Pilot Study 34
4.6 Descriptions of Adopted Softwares 35
4.7 Declaration for Software Adoption 37
CHAPTER 5: 3D MODEL DRAWING 38
5.1 Introduction 38
5.2 List of BIM Software Applications 38
5.3 BIM Design Software Used in Pilot Study 40
5.4 Principles of Model Drawing 40
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5.5 Model Drawing By Floors 46
CHAPTER 6: QUANTITIES TAKEOFF AND MEASUREMENT 51
6.1 Introduction 51
6.2 Concrete 51
6.3 Formwork 57
6.4 Reinforcement 63
6.5 Door & Window 64
6.6 Internal Finish 65
6.7 External Finish 66
CHAPTER 7: BILLS OF QUANTITIES AND PRICING 67
7.1 Introduction 67
7.2 BQ Production 67
7.3 BQ Pricing 72
7.4 Cost Summary 75
CHAPTER 8: CONSTRUCTION PROGRAMME PLANNING 77
8.1 Introduction 77
8.2 Introduction to Construction Programme Planning 77
8.3 Bar Chart 78
8.4 Application of Computer in Construction Scheduling 79
8.5 Introduction to Microsoft Project 79
8.6 Construction Programme Planning for Pilot Study 79
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vii
CHAPTER 9: BIM CASH FLOW FORECAST 86
9.1 Introduction 86
9.2 Principles of BIM Cash Flow Forecast 86
9.3 Cost for Breakdowns of Construction Programme 87
9.4 Cost for Items Excluded in BQ 88
9.5 Summary of Total Construction Cost 92
9.6 Cost Distribution for Construction Activities 93
9.7 Planned and Actual Construction Cost (Without Retention) 95
9.8 Payment Arrangements for Preliminaries and Retention 101
9.9 Planned Construction Cash Flow (With Retention) 102
9.10 Actual Construction Cash Flow (With Retention) 104
9.11 Final Cash Flow Curves and Forecasting (With Retention) 106
CHAPTER 10: 5D SIMULATION 109
10.1 Introduction 109
10.2 Introduction to Navisworks Manage 109
10.3 Process of Creating 5D BIM Simulation 109
10.4 Applications of 5D BIM in Interim Payment 118
10.5 Export to Video and Table Summary 118
CHAPTER 11: FINDINGS DISCUSSIONS AND ANALYSIS 126
11.1 Introduction 126
11.2 Benefits 126
11.3 Difficulties 128
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CHAPTER 12: CONCLUSIONS, RECOMMENDATIONS AND SUGGESTIONS 136
12.1 Introduction 136
12.2 Review of Research Objectives 136
12.3 Summary of Research 137
12.4 Conclusions 141
12.5 Recommendations 142
12.6 Limitation of Research 146
12.7 Suggestions for Further Research 148
REFERENCES 153
APPENDIX A – 3D Model Drawing 159
APPENDIX B –Bills of Quantities with Pricing 195
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ix
LIST OF TABLES
Page
Table 3.1 Process of Construction Cost Management 26
Table 4.1 Summary of Pilot Study Background 35
Table 5.1 List of BIM Software Applications 38
Table 5.2 Concrete Measurement Rules in HKSMM4 41
Table 6.1 Formwork Measurement Rules in HKSMM4 57
Table 6.2 Assumed Reinforcement Ratios 63
Table 6.3 Example of Internal Finishing in G/F 65
Table 6.4 Example of External Finish in G/F 66
Table 7.1 Bill for Each Floor 67
Table 7.2 Cost Summary of All Floors 76
Table 9.1 Cost for each bill and total cost 89
Table 9.2 Summary of Cost Estimation for All Items in Construction Programme 92
Table 9.3 Payment Arrangement for Preliminaries and Retention 101
Table 9.4 Payment Arrangement for Planned Construction Programme 103
Table 9.5 Planned (Baseline) Construction Programme Cash Flow 104
Table 9.6 Payment Arrangement for Actual Construction Programme 105
Table 9.7 Actual Construction Programme Cash Flow 106
Table 10.1 5D Cumulative Cash Flow and Monthly Interim Payment 119
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x
LIST OF FIGURES
Page
Figure 1.1 Process of 5D Simulation and cash Flow Forecast 5
Figure 2.1 BIM Maturity Diagram 10
Figure 2.2 Productivity of Construction Industry in U.S. 14
Figure 4.1 Research Framework 31
Figure 5.1 Concrete Measurement Rules in HKSMM4 42
Figure 5.2 Example of R.C. Frame Elements 42
Figure 5.3 Example of Column Properties 43
Figure 5.4 Example of Window Family 44
Figure 5.5 Example of Door Family 44
Figure 5.6 Properties Dialogue of a Window Set 45
Figure 5.7 Painting Function in Revit 45
Figure 5.8 Floor Plan-G/F 46
Figure 5.9 Floor Plan-1/F 47
Figure 5.10 Floor Plan-2/F 47
Figure 5.11 Floor Plan-3/F 48
Figure 5.12 Floor Plan-4/F 48
Figure 5.13 Floor Plan-5/F 49
Figure 5.14 Floor Plan-6/F 49
Figure 5.15 Floor Plan-Roof and Upper Roof 50
Figure 5.16 Whole Building 3D Model 50
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Figure 6.1 Example of Wall Concrete Takeoff 52
Figure 6.2 Example of Column Concrete Takeoff 52
Figure 6.3 Example of Beam Concrete Takeoff 53
Figure 6.4 Example of Slab Concrete Takeoff 53
Figure 6.5 Example of Model Tree 54
Figure 6.6 Example of Model Schedule 55
Figure 6.7 Example of Model Map 55
Figure 6.8 3D Curved Surface Area Measurement 56
Figure 6.9 Example of Workbook Function in CostX 56
Figure 6.10 Live Linking in Workbook 57
Figure 6.11 Example of Wall Formwork Area Measurement 59
Figure 6.12 Example of Column Measurement in Revit 60
Figure 6.13 Example of Beam Measurement in Revit 61
Figure 6.14 Define Floor Level 62
Figure 6.15 Automatic Takeoff and Sum up in Workbook 62
Figure 6.16 Example of Door Schedule 64
Figure 7.1 Structure of A Typical Bill in B.Q. 68
Figure 7.2 Example of Bill 1 G/F (Concrete Works) 69
Figure 7.3 Example of Bill 1 G/F (Brickwork & Blockwork, Internal and External
Finishing) 70
Figure 7.4 Example of Bill 1 G/F (Door Set, Steel & Metal Works, and Window Set)
71
Figure 7.5 Example of Priced BQ (Concrete Works) 72
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xii
Figure 7.6 Example of Priced BQ (Brickwork & Blockwork, Internal and External
Finishing) 73
Figure 7.7 Example of Priced BQ (Door Set, Steel & Metal Works, and Window Set)
74
Figure 7.8 Example of Cost Summary of Bill 1 in G/F 75
Figure 8.1 Major Items in Construction Programme (Without Cost) 82
Figure 8.2 Detailed Breakdown of Construction Programme (Without Cost) 85
Figure 9.1 Relationship between Program Planning, Cost and Schedule 87
Figure 9.2 Original Simplified Construction Program of R.C. Framing 87
Figure 9.3 New Detailed Construction Programme of R.C. Framing 88
Figure 9.4 Percentage for Calculating Items Excluded in BQ 90
Figure 9.5 Simplied Version of R.C. Framing Planning 93
Figure 9.6 Detailed Version of R.C. Frame Planning 93
Figure 9.7 Simplified Program for Joiner and Alum. Window 94
Figure 9.8 Detailed Construction Program of Joiner, Alum. Window 94
Figure 9.9 Planned and Actual Construction Programme (With Cost) 97
Figure 9.10 Baseline (Planned) Monthly Construction Cost (Without Retention) 98
Figure 9.11 Actual Monthly Construction Cost (Without Retention) 99
Figure 9.12 Planned (Baseline) & Actual Cumulative & Monthly Construction Cost
(Without Retention) 100
Figure 9.13 Comparison of Planned (Baseline) and Actual Cash Flow (With Retention)
108
Figure 10.1 Export Model to Navisworks Manage 110
Figure 10.2 Example of Schedules and Costs in Navisworks Manage 111
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Figure 10.3 Model Elements Selection and Attachment to Task 112
Figure 10.4 Example of inputting payment information of preliminaries, retention
money in Navisworks Manage 114
Figure 10.5 Simulation Settings 115
Figure 10.6 5D Simulation Example 117
Figure 11.1 Function for Team Collaboration in Revit 129
Figure 11.2 Dimension of Staircase Shown in Revit 130
Figure 11.3 Example of Window Family 131
Figure 11.4 BIM Standard Manual by Hong Kong Housing Authority 132
Figure 12.1 Revision to 3D BIM Model 150
Figure 12.2 Example of Saw-tooth Diagram 151
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Chapter 1: Introduction
1
1. CHAPTER 1: INTRODUCTION
1.1 Background to the Research
With the development of BIM technology, the adoption of the BIM in the
construction cost management will become populous. In the following, the
background of the research, including the techniques in the construction cost
management, development of BIM, and the adoption of BIM in the Hong Kong and
worldwide.
1.1.1 Construction Cost Management
Construction cost management is essential for the success of a project. The
procedures in the cost management for a project include pre-contract stage and post-
contract stage. The pre-contract cost management includes providing preliminary cost
estimate, controlling design development within budget and measuring quantities in
BQ. The post-contract cost management includes payment assessment, valuation of
variations, cash flow forecasting, and settlement of final account. Cash flow
forecasting is to assist the client early in the process with funding agreements and for
procurement and contract choice. It can be applied in cost control by comparing the
actual cash flow against the anticipated cash flow. The cash flow curve derived from
the forecast is used as a guide to the Client as the predicated cash flow forecast, which
enables to anticipate total construction cost as well as interim payments to the
contractor. The cumulative cash flow curves are graphic representation for the
planned expenditure for a project, which are usually in the shape of “S” and therefore
are usually referred as “S-Curve”.
1.1.2 BIM
As suggested by Robert (2011), there are two ways to define BIM, i.e. Building
Information Modeling and Building Information Management. Building Information
Modeling is a technology that allows relevant graphical and topical information
related to the built environment to be stored in a rational database for access and
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Chapter 1: Introduction
2
management. Building Information Management is the collection, organization,
analysis, and distribution of attributed data contained within a building project.
BIM enables data and information to be linked with 3D components in the BIM
model to provide 4D, 5D and 6D BIM. 4D BIM is to embed time into the 3D model,
which can be used to simulate the construction process of the building. 5D BIM is to
add cost to the 4D model. It allows quick cost estimation for different design options
at the concept stage. 6D BIM is to incorporate data of facilities into the model which
enables the facilities managers to have a powerful tool to manage the assets during the
operating stage.
With data of a construction project stored in the BIM model, the designers and
constructors can simulate real life situations before commencing the project on site.
Therefore conflicts in design and construction can be reduced. The automatic
measurement function enables the Quantity Surveyors to run takeoffs and opt for the
exact quantities used in estimating the pre-bid budget. Upon completion of the
construction, the data-rich model can be delivered to the operator for facility
management.
Compared with the traditional approach of cost estimating, the model-based
estimating of BIM enables automatically takeoff quantities from the model, which
allows the project team to see the cost effects of their design options and proposed
changes during all phases of the project. The benefits of model-based estimating
include 1) consistent information with design, 2) efficient, cost effective and reduce
human errors, and 3) enable estimators to focus on high value project factors.
1.1.3 BIM Adoption in Hong Kong & Worldwide
BIM has been adopted in several projects in Hong Kong. The Hong Kong Housing
Authority has introduced BIM in its public housing projects since 2006. It is reported
by Hong Kong Housing Authority (2011) that BIM has benefited the government
organization in the construability analysis, clash detection and environmental analysis.
It has also planned to apply BIM for facility management of the HA assets. As
reported by HKBIM (2011), other organizations like MTR and some private
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Chapter 1: Introduction
3
developers have also attempted the implementation of BIM in producing drawings in
recent years.
In the worldwide, some countries, like Singapore, United States and Korea, have
move far in advance and lead the world in BIM implementation. The Singapore
government is very encouraging the adoption of BIM. It mandates that all
architectural, structural, mechanical and electrical plans for building works to be in e-
submission for regulatory approval by 2015. It has also set up a BIM fund to
encourage construction firms to implement BIM technology. In the US, BIM at the
design stage is now a mandated requirement for public office building procured and
maintained by the US General Services Administration. In UK, the Government’s
chief construction adviser indicated in October 2010 that BIM will become obligatory
on publicly procured projects in the near coming future.
1.2 Statement of the Problem
BIM could have a marked impact on the construction industry. It is regarded as a
major challenge to the conventional professionals in the AEC industry including
Quantity Surveyors. Quantity Surveying is regarded as an important discipline
responsible for cost and contract within the construction industry. Measurement and
preparations of Bills of Quantities are important functions underpinning quantity
surveying practices. It is predicted that BIM will have the potential to revolutionize
current practices of Quantity Surveying. It is also central to the contention that BIM’s
potential in automatic measurement might threaten clients’ requirements for quantity
surveying services.
However, there is seldom research about what services can Quantity Surveyors
provide to the Client on the BIM projects. In fact, the industry shall embrace the new
opportunities and benefits provided by this new technology. With automatic quantities
takeoff undertaken by BIM software applications, the Quantity Surveyors can focus
on more valuable services such as construction cost management, contract
administration, risk assessment, pricing, valuation and so on, which cannot be
replaced by computer and software.
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Chapter 1: Introduction
4
1.3 Research Aims and Objectives
Although there are some case studies for using BIM in cost estimating of different
design options, there is seldom research about using 5D BIM for construction cost
management.
This research aims to establish a framework of 5D BIM and evaluate the degree of
feasibility and efficiency of using it for Quantity Surveyors in construction cost
management in compliance with existing Hong Kong Standard Method of
Measurement. During the research process, the procedures for generating 5D BIM
cash flow forecast and simulation, the benefits and difficulties encountered will be
described and analyzed. Solutions for some problems and recommendations for
improvement will be discussed.
This research aims to conduct a pilot study to investigate the production of
construction cash flow forecast through the BIM environment. The following
objectives are formulated for carrying out this study.
1) To review the development of Building Information Modeling (BIM) and
techniques for project cost management;
2) To create BIM model with associated construction programme planning and cost
in compliance with the Hong Kong Standard Methods of Measurement.
3) To produce project cash flow and 5D BIM simulation under Quantity Surveying
practices,
4) To identify benefits and difficulties encountered for construction cost
management through BIM environment; and
5) To make recommendations for improving BIM application in cost management
for Quantity Surveyors.
1.4 Methodology
As illustrated in Figure 1.1, 5D BIM is composed of three elements, i.e. 3D model,
time and cost. In order to achieve 5D BIM simulation and cash flow forecast for use
by Quantity Surveyors in the cost management, the 3D model drawing is produced in
accordance with the principles laid down in the standards methods of measurement.
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The in
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
“Cost” can
create 5D BIM for simulation and cash flow forecast.
`
The following met
aims and objectives.
1)
2)
The information of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
“Cost” can be input into the 3D model by linking with the construction elements to
create 5D BIM for simulation and cash flow forecast.
Figure
The following met
aims and objectives.
Literature Review
literature review is conducted in order to establish a deep knowledge base and
understanding abou
construction cost management techniques. The literature
books, journals, conference papers, seminars,
Pilot Study
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
3D Model
•Model
Drawing
Following
HKSMM
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
create 5D BIM for simulation and cash flow forecast.
Figure 1.1 Process of 5D Simulation and cash Flow Forecast
The following methodologies are applied for the purpose of achieving the research
aims and objectives.
Literature Review: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
understanding about the current development and research of BIM technology and
construction cost management techniques. The literature
s, journals, conference papers, seminars,
Pilot Study: The processes in the pilot study include the s
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
3D Model
Model
Drawing
Following
HKSMM
Time
•Construction
Programme
Scheduling
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
create 5D BIM for simulation and cash flow forecast.
Process of 5D Simulation and cash Flow Forecast
hodologies are applied for the purpose of achieving the research
: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
t the current development and research of BIM technology and
construction cost management techniques. The literature
s, journals, conference papers, seminars,
The processes in the pilot study include the s
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
Time
Construction
Programme
Scheduling
5
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
create 5D BIM for simulation and cash flow forecast.
Process of 5D Simulation and cash Flow Forecast
hodologies are applied for the purpose of achieving the research
: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
t the current development and research of BIM technology and
construction cost management techniques. The literature
s, journals, conference papers, seminars,
The processes in the pilot study include the s
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
Construction
Cost
•Automatic
Quantity
Takeoff and
measurement
•Pricing in Bills
of Quantities
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
create 5D BIM for simulation and cash flow forecast.
Process of 5D Simulation and cash Flow Forecast
hodologies are applied for the purpose of achieving the research
: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
t the current development and research of BIM technology and
construction cost management techniques. The literature
s, journals, conference papers, seminars, workshops
The processes in the pilot study include the s
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
Automatic
Quantity
Takeoff and
measurement
Pricing in Bills
of Quantities
Chapter 1
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
Process of 5D Simulation and cash Flow Forecast
hodologies are applied for the purpose of achieving the research
: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
t the current development and research of BIM technology and
construction cost management techniques. The literature review ranges from
workshops etc.
The processes in the pilot study include the steps of 1)3D model
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
5D BIM
Simulation
&Cash Flow
Forecast
1: Introduction
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
Process of 5D Simulation and cash Flow Forecast
hodologies are applied for the purpose of achieving the research
: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
t the current development and research of BIM technology and
review ranges from
teps of 1)3D model
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
5D BIM
Simulation
&Cash Flow
Forecast
: Introduction
formation of “Time” is obtained by construction programme scheduling and the
information of “Cost” is achieved by automatic quantity takeoff and measurement as
well as pricing of the Bills of Quantities. After that, the information of “Time” and
be input into the 3D model by linking with the construction elements to
hodologies are applied for the purpose of achieving the research
: In the outset of this research study, a comprehensive
literature review is conducted in order to establish a deep knowledge base and
t the current development and research of BIM technology and
review ranges from
teps of 1)3D model
drawing, 2) BIM quantities takeoff and measurement, 3) Bills of Quantities
-
Chapter 1: Introduction
6
production and pricing, 4) construction programme planning, 5) cash flow
forecasting, and 6) 5D simulation. The progress of this pilot study starts with the
3D model drawings in accordance with the 2D drawings of a completed simple
project. After the model drawings, the quantities of materials can then be taken off
from the 3D model by Revit’s inherent functions and other third party softwares.
The Bills of Quantities are produced by abstracting and billing those quantities
measured. After pricing of the BQ, the cost for construction works can then be
obtained. Together with the construction programme scheduling, the time and
schedule for the construction activities can then be linked with the associated cost.
By inputting data of schedule and cost into the 3D model, a 5D BIM model can be
created to simulate the construction progress and coinstantaneous cash flow. The
monthly and cumulative cash flows for planned and actual construction programs
can then be plotted and deduced in the graph to produce the “S” curve. With the
assistance of BIM construction management software, the 5D BIM simulation
with visualization of construction activities, programme schedules and cash flows
can therefore be produced for the whole project for construction cost control and
interim payment.
1.5 Research Procedures
The following are research procedures in order to achieve the research aims and
objectives.
1) To conduct literature review on BIM and construction cost management;
2) To draw a 3D BIM model of a simple project in compliance with the Hong Kong
Standard Methods of Measurement;
3) To generate automatic quantity takeoff and measurement from the BIM model;
4) To produce Bills of Quantities and then to obtain prices of items in the Bills of
Quantities for construction cost;
5) To generate planned and actual construction program to obtain schedules for
construction activities;
6) To embed schedule(time) and cost into 3D model and generate the 5D
construction cash flow forecast;
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Chapter 1: Introduction
7
7) To create integrated 5D BIM simulation and compare actual cash flow against
planned cash flow;
8) To analyze benefits of 5D BIM cash flow forecast and describe difficulties
encountered;
9) To suggest possible solutions and recommendations for improvement.
1.6 Outline Structure of the Thesis
This thesis is separated into 12 chapters in order to provide a clear and concise
account of the content. The outline structure of the thesis is summarized in the
following.
Chapter 1 introduces the background to the study, statement of the research problems,
research aims and objectives, and explanation of the research methodology. It is the
foundation of this thesis.
Chapter 2 develops the theoretical basis of the thesis by reviewing the literature
relating to Building Information Modeling (BIM). The current development of BIM
technology and its applications in the construction planning, model-based estimating
are examined. The adoption of BIM in Hong Kong and worldwide BIM standards and
policies are investigated and reviewed.
Chapter 3 is to overview the process of construction cost management and the
techniques for producing cash flow forecast.
Chapter 4 sets out the research design and methodology adopted in this research. The
primary research methodology adopted for this study is pilot study. The research
framework is designed for this study.
Chapter 5 is to demonstrate the principles and process of drawing 3D model in
accordance with the principles laid down in the Hong Kong Standard Methods of
Measurement.
Chapter 6 is to demonstrate the procedures of quantity takeoff and measurement from
the 3D model.
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Chapter 1: Introduction
8
Chapter 7 is to describe the process of producing Bills of Quantities floor by floor in
the 3D model and pricing on the bills of quantities to obtain the construction cost.
Chapter 8 is to describe the procedures to create planned and actual construction
programme planning and scheduling in accordance with the 3D model drawing.
Chapter 9 is to demonstrate the process of creating planned and actual cash flow
forecasting by linking elements in the 3D model with associated time and cost.
Chapter 10 is to demonstrate the procedures to create 5D BIM simulation with
visualization of construction activities together with simultaneous construction
schedule and cost.
Chapter 11 is to discuss the findings of this study including the benefits of 5D BIM in
construction cost management and the difficulties encountered during this study.
Chapter 12 is to present the conclusions of the research result, research limitations,
recommendations for applying 5D BIM for construction cost management and
suggestions for further study.
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Chapter 2: Literature Review-BIM
9
2. CHAPTER 2: LITERATURE REVIEW-BIM
2.1 Introduction
This chapter presents a summary of the literature reviews relating to Building
Information Modeling (BIM). The topics of the literature reviews about BIM can be
summarized into eight categories including 1) introduction to BIM, 2) adoption of
BIM in the construction industry, 3) BIM and construction planning, 4) model-based
estimating and quantity takeoff, 5) BIM and Quantity Surveying practices, 6)
adoption of BIM in Hong Kong, 7) worldwide BIM standards and policies, and 8)
future and preparations for BIM. In the following, the literature reviews about these
topics are discussed in detail.
2.2 Introduction to BIM
In the following, the introduction to BIM includes 1) definition of BIM, 2) BIM
maturity diagram, 3) BIM vs. 2D drawings, 4) 4D, 5D and 6D BIM and 5)
applications of BIM.
2.2.1 Definition of BIM
BIM is widely used as the acronym for ‘Building Information Modeling’. As provided
by Schwegler (2001), BIM is defined as the process of creating an information
database for a project in which lifecycle information is expressed in an interoperable
manner to create, engineer, estimate, illustrate and construct a construction project.
The Department for Business Innovation and Skills of the United Kingdom (2012)
defined BIM as a collaborative way of working, underpinned by the digital
technologies which unlock efficient methods of designing, creating and maintaining
the assets. It embeds key product and asset data into the 3D model for effective
management of information throughout a project lifecycle, i.e. from the earliest
concept through to operation.
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Chapter 2: Literature Review-BIM
10
2.2.2 BIM Maturity Diagram
As suggested by the Royal Institute of British Architects (RIBA) (2012), the most
effective way to understand BIM is to refer the BIM Maturity Diagram which is
prepared by Mark Bew and Mervyn Richards, as shown in Figure 2.1. In accordance
with this diagram, the maturity of BIM can be categorized into Level 0, Level 1,
Level 2 and Level 3.
Figure 2.1 BIM Maturity Diagram (Bew and Richards, 2008)
1) Level 0-CAD: The Level 0 is to use 2D Computer Aided Design (CAD) files
for producing information, which has been used by majority of the design
practices for many years.
2) Level 1- 2D and 3D: In this level, the uses of 2D and 3D information are both
increased. However, 3D software is only used as a conceptual design tool
during the early project stages and for visualization of the finished project. In
this level, BIM is also referred to as ‘Lonely BIM’ because it cannot be shared
with other members of the team.
3) Level 2- BIM: In level 2, 3D models are collaboratively produced by all key
members of the integrated team. But they need not co-exist in a single model.
Therefore the full potential of the intelligent data contained in the models may
not be realized at this level.
4) Level 3 – iBIM: The move from Level 2 BIM to Level 3 Integrated BIM
(iBIM) is the most challenging one. In the Level 3, the integrated BIM model
provides shared data for information in the facility management and lifecycle
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Chapter 2: Literature Review-BIM
11
costing. As illustrated by RIBA (2012), the Level 3 BIM will make it possible
to:
• Implement early design analysis on environmental performance and
minimize iterative design time;
• Quickly derive cost from the model using new costing interfaces;
• Analyze health and safety associated with the construction and
maintenance of the building; and
• Align asset management, key performance indicators, and other
feedback information with intelligent briefing, and to inform and
improve future projects.
2.2.3 BIM vs. 2D Drawing
As stated by K. Pramod Reddy (2011), the 2D drawing only enabled the coordination
in two dimensions and did not validate the space in any other dimension. This results
in inconsistent and repeatable outcomes from meeting to meeting and project and
project. BIM provides a much greater level of accuracy, which benefits all of the
trades and builders involved in the coordination process.
2.2.4 4D, 5D and 6D BIM
As illustrated in the “BIM Overlay to the RIBA Outline Plan of Work” issued by the
RIBA (2012), data and information can be linked with 3D components or assemblies
in the BIM model to provide 4D, 5D and 6D BIM.
1) 4D BIM
4D BIM is to add time to the project 3D model. It is useful to simulate the
construction process of the project in order to identify issues such as critical path
activities, logistical delivery and refining the construction process. It can also be used
to examine ways to make up time. The contract administrator can also use the
programme to assess delays and applications for Extension of Time (EOT) raised by
the contractor. A 4D enhanced model enables a diverse team of project participants to
evaluate and comment on the project scope and corresponding schedules in a very
proactive and timely manner (K. Pramod Reddy, 2011).
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Chapter 2: Literature Review-BIM
12
2) 5D BIM
5D BIM is to incorporate programme schedules and cost information into the project
3D model. It will allow cost estimation of design options to be produced faster. It also
makes different design options to be assessed accurately at the concept stage and
makes the design to be more aligned with a client’s budget.
3) 6D BIM
6D BIM is to add data of facilities into the model. It enables the facilities management
teams to have a powerful tool to manage the assets. For example, if a door is damaged,
the FM team can click the door tag in the model and find its supplier and then order or
repair the door in accordance with the supplier’s data.
2.2.5 Applications of BIM
The applications of BIM can be demonstrated in the following aspects, which include
construability analysis, automatic measurement, facility management, as well as
energy analysis.
1) BIM & Construability Analysis
Latham (1994) reported that design deficiencies and associated constructability
constraints are the largest factors responsible for the poor performance of the
construction industry. With data of the project stored in the BIM model, designers and
constructors can simulate real life situations before commencing project on site.
Therefore it is likely that conflicts in design and construction can be reduced by BIM.
2) BIM & Automatic Measurement
BIM has the powerful function of automatic measurements. The Cooperative
Research Centre for Construction Innovation has reported successful attempts to
produce Bills of Quantities automatically using the Industry Foundation Class (IFC)
data (O.A. Olatunji et al, 2010). A data-rich BIM contains all of the potential building
information, including the specifications and quantities, which allow the Quantity
Surveyors to run takeoffs and opt for the exact quantities used in estimating the pre-
bid budget (K. Pramod Reddy, 2011).
3) BIM & Facility Management
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Chapter 2: Literature Review-BIM
13
BIM enables an organization to virtually build the building before the actual
construction start. This helps to eliminate many of the inefficiencies of the
construction process. Upon completion, the data-rich model can be delivered to the
owner or the facility manager for operating the building throughout its entire life
cycle (K. Pramod Reddy, 2011). As reported by Hong Kong Housing Authority
(2011), it has planned to apply BIM technology to streamline the maintenance, repair
and management of HA facilities.
4) BIM & Energy Analysis
BIM can analyze and predict energy cost during the early design phase. It will help
architects to understand how their design would impact energy consumption and costs
during the building’s life cycle. Facility managers can also use data in BIM to
benchmark a building’s energy consumption (K. Pramod Reddy, 2011). As reported
by the Hong Kong Housing Authority (2011), BIM enables them to simulate the time
of sunrise and sunset at a site and the direction the sun travels. This enables to
determine the best location for sitting buildings and for planting greenery. Therefore
the design can be enhanced by leveraging natural resources like sunlight and airflow,
which eventually reduces the use of air-conditioning and consumption of energy.
2.3 Adoption of BIM in the Construction Industry
In the following, the discussions about the adoption of BIM in the construction
industry include the issues about 1) construction industry and technology, and 2) the
slow adoption of BIM in the construction industry.
2.3.1 Construction Industry and Technology
The construction economy is important to the society in terms of employment and
economies contribution. However, it is well recognized that construction industry is
conservative to technology adoption (O.A. Olatunji et al, 2010). In accordance with
the research undertaken by the Center for Integrated Facility Engineering in Stanford
University, U.S., the productivity of construction industry relative to all non-farm
industries in the U.S., during the period from 1964 to 1998, showed that the
construction productivity had declined slightly while productivity in all other
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Chapter 2: Literature Review-BIM
14
industries had almost doubled in this period, as shown in Figure 2.2 (Benedict et al,
2001).
Figure 2.2 Productivity of Construction Industry in U.S. (Stanford University, 2001)
2.3.2 Slow adoption of BIM in Construction Industry
As reported by Phillip G. and Jon H. Pittman (2004), the productivity and economic
benefits of BIM were widely and increasingly acknowledged and well understood.
The technology of BIM is also readily available and rapidly maturing. However, the
adoption of BIM is slower than anticipated. Although lack of interoperability between
software applications is one significant point of friction, it is neither the singular nor
most important factor impeding BIM adoption. As suggested by Phillip G. and Jon H.
Pittman (2004), there are three interrelated barriers to BIM adoption as:
1) the need for well-defined transactional business process models;
2) the requirement that digital data be computable; and
3) the need for well-developed practical strategies for the purposeful exchange of
meaningful information between the many tools applied to industry processes
today.
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Chapter 2: Literature Review-BIM
15
2.4 BIM and Construction Planning
In the following, the discussions about the applications of BIM in the construction
planning include 1) introduction to BIM construction planning, 2) functions of BIM
construction planning, 3) applications of BIM in construction planning, 4) benefits of
BIM construction planning and 5) the examples of applying BIM construction
planning in Hong Kong.
2.4.1 Introduction to BIM Construction Planning
It is claimed that by using the BIM platform together with the construction process
management software like Autodesk Navisworks Manage, the workflow of the
construction process can be simulated to effectively plan construction operations,
identify potential problems, and explore and evaluate alternatives (Autodesk, 2012).
2.4.2 Functions of BIM Construction Planning
The functions of BIM construction planning include simulating planned sequences of
construction activities, identifying clashes and interference problems, finding
opportunities for improving construction schedules, tracking materials and managing
the supply chain (Autodesk 2012).
2.4.3 Applications of BIM in construction planning
As reported by Autodesk (2012), BIM can be applied in the construction planning in
terms of the following areas.
1) 4D Modeling
The 4D modeling can simulate the planning sequence of construction activities and
space requirements on site, provide powerful visualization and identify the problems
well in advance of construction activities.
2) Site Utilization Planning
The use of BIM can help to evaluate the locations of facilities on site during multiple
phases of the construction process.
3) 3D Coordination and Clash Detection
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Chapter 2: Literature Review-BIM
16
It is to identify potential conflicts by comparing all building systems and thus to
reduce field conflicts.
4) Identify Time-Based Clashes
By using the time-based clash testing, BIM can be used to verify the planned
sequence of construction operations on the constrained sites.
5) Construction System Design (Virtual Mockups)
BIM can be used to create a model and conduct analysis on the construction of a
complex building system for the detailed construction planning.
6) Materials Planning and Management
By linking the building elements in the project model and the associated task schedule,
the dates when elements are needed on site for installation can be forecasted.
2.4.4 Benefits of BIM Construction Planning
As claimed by Autodesk (2012), traditional scheduling methods, such as bar charts or
critical path method network diagrams, can be difficult to address the spatial aspect
and they are not linked to the design or building model. The advantages of using 4D
simulations include:
1) informing design decisions by considering the impact on construction of
proposed design features;
2) identifying and resolving problems earlier;
3) accessing and managing project risks; and
4) improving project schedules and bringing facilities to client sooner.
2.4.5 Example of BIM Construction Planning in Hong Kong Housing Authority
As reported by the Hong Kong Housing Authority (2011), BIM enabled them to
monitor the construction progress closely and ensure a six-day construction cycle for
a typical floor. One example of using BIM for site planning is the Kwai Chung Tai
Pak Tin Street project in which the site is very congested and has slopes on its three
sides. BIM has assisted to define the best routes for site workers and trucks, the best
location for soil disposal, as well as the optimum works sequence for transporting
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Chapter 2: Literature Review-BIM
17
formworks and steel bars. The detailed programme and workflow simulated by BIM
have enhanced both work efficiency and site safety.
2.5 Model-based Estimating and Quantity Takeoff
The discussion for model-based estimating and quantity takeoff includes the issues
about 1) traditional cost estimating, 2) definition of model-based estimating, 3)
functions of model-based estimating, 4)benefits of model-based estimating, 5) model-
based estimating in stages, and 6)methods for exporting BIM to cost estimating
system.
2.5.1 Traditional Cost Estimating
In the traditional approach, the estimators will typically begin cost estimating by
digitizing the architect’s drawings, or importing their CAD drawings into a cost
estimating software, or manual takeoff from the drawings. However, human errors
will be introduced and inaccuracies in the original drawings will be propagated in
such traditional process (Autodesk, 2007).
2.5.2 Definition of Model-based Estimating
Model-based estimating is to use features in the BIM model to create conceptual
estimates. It can be used to compare the cost of proposed alternatives and prepare
preliminary estimates to confirm cost feasibility and evaluate proposed design
changes (Autodesk, 2012).
2.5.3 Functions of Model-based Estimating
As claimed by Autodesk (2012), model estimating can be used to accurately generate
quantity takeoffs and assist in the creation of cost estimates throughout the lifecycle
of a project. It enables the project team to see the cost effects of their design decisions
and proposed changes during all phases of the project. It will also support better
design decision-making and can help curb excessive budget overruns due to project
modifications.
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Chapter 2: Literature Review-BIM
18
2.5.4 Benefits of Model-based Estimating
As reported by Autodesk (2007), the benefits of BIM Cost Estimating include the
following aspects:
1) consistent information with design:
By using BIM, measurements and quantity takeoff can be generated directly from the
model. Changes in the design can automatically ripples to all related measurement,
schedule and documentation.
2) Efficient, Cost Effective and Reduce Human Error
BIM cost estimating can enable estimators to save time, cost and reduce the potentials
of human errors.
3) Enable focusing on high value project factors
With quantities takeoff and measurement automatically done by BIM, estimators can
focus on high value project-specific factors such as identifying construction
assemblies, generating pricing, factoring risks and so forth.
2.5.5 Model-based Estimating in Stages
As reported by Autodesk (2012), model-based cost estimates are very valuable to
project teams at every stage of the design process, as shown in Table 2.1.
Table 2.1 Stages of Model-based Estimating (Autodesk, 2012)
Stage Action Purpose
1) Early Design
Stage Cost estimates based on area or
volume of a proposed conceptual
design and comparison to
historical data.
To confirm that the design is
feasible and in alignment
with budget.
2) Design being
developed Material takeoff and quantify
key building elements to
compute real-time preliminary
cost estimates.
To confirm that the evolving
design is staying on-track
and evaluate the cost impact
of proposed design
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Chapter 2: Literature Review-BIM
19
enhancements.
3) Design
matures with
construction
details
accurately
modeled
Precise quantity takeoffs
extracted from BIM model to
compute very detailed cost
estimates.
To analyze factors in the
planned construction process
and consider labor, materials,
equipment, and subcontractor
costs for all building
elements.
4) Increased
detail level of
each element
in BIM model
Increase level of costing detail. To make more precise cost
estimates.
2.5.6 Methods for Exporting BIM to Cost Estimating System
The approaches to export quantities and descriptions from BIM into a cost estimating
system include Application Programming Interface (API), Open Database
Connectivity (ODBC) and Output to Excel. The selection of approach to be adopted
shall be in accordance with the estimating workflow, the costing solutions, the pricing
database and other factors of the organization (Autodesk, 2007).
1) Application Programming Interface
This approach is using a direct link between the costing system and BIM software like
Revit. The user can export the building model from BIM software using the costing
program’s data format and send it to the estimator. The estimator can then open it
with the costing solutions to begin the costing process.
2) Open Database Connectivity
It typically uses the ODBC database to access the attribute information and dimension
data in the building model. Such kind of estimating software applications include
CostX and ITALSOFT.
3) Output to Excel
This method is to take off quantity within Revit and then output to an Excel program.
It is most suitable for some projects with simple costing workflow.
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Chapter 2: Literature Review-BIM
20
2.6 BIM and Quantity Surveying Practice
The topic about BIM and Quantity surveying practices will cover the discussion about
1) role of Quantity Surveyors, and 2) effect of BIM on Quantity Surveying practices.
2.6.1 Role of Quantity Surveyors
Quantity surveying is regarded as an important discipline responsible for cost and
contract within the construction industry. The conventional services provided by the
Quantity Surveyors include preliminary estimates, feasibility studies, cost plans, and
bills of Quantities preparation. They are also responsible for construction contract,
tender analysis, contractor selection and financial management of all construction
works. In addition, some quantity surveying firms provide other services such as
value management, management contracting, construction dispute resolution and so
on (Nkado, 2000).
2.6.2 Effect of BIM on Quantity Surveying Practices
As reported by Masidah and Khairuddin (2005), while some professional services
provided by Quantity Surveyors might be unnecessary, measurement and preparations
of Bills of Quantities are important functions underpinning quantity surveying
practices. It is predicted that BIM will have the potential to revolutionize current
practices of quantity surveying. It is central to the contention that BIM’s potential in
automatic measurement might threaten clients’ requirements for quantity surveying
services (O.A. Olatunji et al, 2010).
2.7 Adoption of BIM in Hong Kong
BIM has been adopted in several projects in Hong Kong. In 2011, the Hong Kong
Institute of Building Information Modeling (HKIBIM) has issued a report about the
use of BIM in Hong Kong since 2005. It was reported that projects in MTR and other
private developments have attempted the implementation of BIM in producing
drawings in recent years (HKIBIM, 2011).
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Chapter 2: Literature Review-BIM
21
In the public sector, the Hong Kong Housing Authority claimed that it had introduced
BIM in its public housing projects since 2006. In fact, BIM system has been adopted
in more than 19 public housing projects by the Hong Kong Housing Authority at
various project stages for identifying and resolving construction and demolition
difficulties. As reported by the Hong Kong Housing Authority (2009), it had set up
plans for BIM as:
1) starting from 2014-2015, use BIM as a standard design tool for housing
projects;
2) from 2006, pilot BIM for more than 19 public housing projects at various
project stages;
3) prepare in-house BIM standards, user guide, library component design guide
and references;
The projects utilizing BIM technology include So Uk Demolition, So Uk
Redevelopment, Kwai Chung Area 9H, and Kai Tak Site 1B. It is reported that the
application of BIM enabled the Hong Kong Housing Authority to perform building
analysis to avoid clashes in design and improve communication among project teams,
contractors and the public. It has also pilot several projects using BIM environmental
analysis, 4D construction planning and it has planned to apply BIM technology to
streamline the maintenance, repair and management of HA facilities (Hong Kong
Housing Authority, 2011).
2.8 Worldwide BIM Standards and Policies
The discussion about the worldwide BIM standards and policies will cover the
adoptions of BIM in countries of Singapore, China, Korea, the United States and the
United Kingdom.
2.8.1 Singapore
The Singapore Government is encouraging the adoption of BIM technology in the
construction industry. The Singapore Building and Construction Authority (BCA)
mandates that all architectural, structural, mechanical and electrical plans for building
works shall be in e-submission for regulatory approval by 2015. It is expected by the
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Chapter 2: Literature Review-BIM
22
Singapore BCA that 80% of the organizations in the construction industry will use
BIM by then. The BCA has also set up a BIM fund in order to encourage construction
firms to implement BIM technology in actual projects (Singapore BCA, 2012).
2.8.2 China
In the Twelfth Five Years Plan released in 2011, the Chinese Government has realized
the importance of using information system to improve the qualities and standards in
the construction industry. In a report issued by the Ministry of Housing and Urban-
rural Development of the People’s Republic of China (2011), the government planned
to:
1) encourage application of BIM technology for clash analysis in the construction
projects;
2) apply information management in the construction industry to improve
productivity and management standards.
3) use BIM to visualize design in the design stage and to reduce errors in
information transmission during construction stage.
4) investigate possibilities of implementing BIM in complex and large projects.
5) incorporate BIM to synchronize information in architecture, structure and
mechanics.
2.8.3 Korea
The Korean government agencies including the Korean Public Procurement Service
and the Korea’s Ministry of Land, Transport and Maritime Affairs, are encouraging
the adoption of BIM. In January 2010, the Korean Ministry of Land, Transport and
Maritime Affairs has compiled a BIM application guide for architectural and civil
engineering works which include detailed descriptions of methods and conditions for
using BIM technology for owners, architects and engineers (Korean Ministry of Land,
2012).
2.8.4 The United States
As reported by K. Pramod Reddy (2012), some government agencies and building
owners in the United States such as the General Services Administration (GSA) and
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Chapter 2: Literature Review-BIM
23
the U.S. Army Corps of Engineers have taken extreme steps regarding mandating the
use of BIM. They believe the adoption of BIM will have benefits for every key player
in the construction process, from design to construction to facility management.
2.8.5 The United Kingdom
In May 2011, the Cabinet Office of the United Kingdom announced its Government
Construction Strategy for BIM. In accordance with this report, the Cabinet Office will
coordinate with the industry stakeholders to develop standards for BIM. As outlined
in this report by the Cabinet Office of U.K. (2011), the major BIM strategies set by
the Government are to:
1) allow time for industry stakeholders to prepare for new standards and training
for BIM;
2) complete agreed pilot projects using BIM;
3) starting from March 2012, post BIM to the completion process such as facility
management;
4) starting from April 2012, define and mandate BIM standards for Government
projects;
5) starting from summer 2012, roll out BIM to all government projects;
6) by July 2012, achieve goal of fully collaborative delivery via 3D models for
trial projects in multiple departments;
7) by 2016, require fully collaborative 3D BIM with all data and documentation
being electronic;
8) use BIM to integrate design and construction with facility management.
From the summer of 2012, the UK government has made commitments to have all of
its projects utilizing BIM based on the “Government Construction Strategy - UK
Government Cabinet Office, May 2011” as well as “BIM overlay to the RIBA Outline
Plan of Work” (Department for Business Innovation and Skills of U.K., 2012).
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Chapter 2: Literature Review-BIM
24
2.9 Future & Preparation for BIM
In the discussion for the future and preparation for BIM, the two issues will be
discussed, i.e. 1)the future impacts of BIM and 2)the suggested preparations for BIM.
2.9.1 Future Impacts of BIM
As reported by O.A. Olatunji et al (2010), BIM could have a marked impact on the
pre-construction processes, however, complying BIM with the relevant Standard
Methods of Measurement could be one of the chief challenges. BIM is regarded as a
major challenge to the conventional professionals in the AEC industry including
Quantity Surveyors, which may redefine the traditional professional boundaries.
2.9.2 Preparations for BIM
AEC industry will face a great challenge as the shift from Level 0 BIM to Level 3
BIM as described in the BIM maturity diagram is more significant compared with the
shift from drafting on tracing paper to CAD. The following are some approaches as
suggested by RIBA (2012) as to:
• provide training, especially in relation to teamwork and collaborative approaches
in design and construction to embrace new working methods;
• examine current successful private sector integrated team models and set out how
different models might be appropriate depending on the client’s aspirations and
risk profile;
• adopt industry-wide process;
• consider ways to build and manage successful project teams; and
• contribute to the debate on the best forms of procurement which will truly
encourage collaboration and innovation.
Therefore, the Quantity Surveyors and other construction professionals need to have
some preparations for BIM, e.g. reviewing quantity surveying curricula in education
(O.A. Olatunji et al, 2010).
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Chapter 3: Literature Review-Construction Cost Management
25
3. CHAPTER 3: LITERATURE REVIEW-CONSTRUCTION COST
MAN AGEMENT
3.1 Introduction
This chapter presents a summary of the literature reviews about construction cost
management. The topics covered in the literature reviews for construction cost
management include 1) process of construction cost management, 2) cash flow
forecast, 3) cash flow curve, and 4) cumulative cost curve. In the following, the
literature reviews about these topics are discussed in detail.
3.2 Process of Construction Cost Management
In Hong Kong, the normal processes of construction cost management include the
procedures as in the following:
1) providing preliminary cost estimate;
2) controlling the design development within budget;
3) measuring the quantities of construction works in the Bills of Quantities;
4) controlling cost in post-contract stage, including
a. payment assessment
b. valuation of variation
c. cash flow forecasting
d. settlement of final account
The process of construction cost management in different stages can be summarized
in Table 3.1.
-
3.3
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
cash flow forecast, 4) reten
format of cash flow forecast.
3.3.1
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
company, and 2) cash flow forecast of a particular projec
study, only
BIM technology
3.3.2
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
some issues differ between one party and another,
In this
Cash Flow Forecast
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
cash flow forecast, 4) reten
format of cash flow forecast.
3.3.1 Types of Cash Flow Forecast
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
company, and 2) cash flow forecast of a particular projec
study, only the cash flow of a project, i.e.
BIM technology
3.3.2 Employer’s
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
some issues differ between one party and another,
In this dissertation
Chapter
Table 3.1
Cash Flow Forecast
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
cash flow forecast, 4) reten
format of cash flow forecast.
Types of Cash Flow Forecast
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
company, and 2) cash flow forecast of a particular projec
the cash flow of a project, i.e.
BIM technology.
Employer’s vs. Contractor’s Cash Flow Forecast
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
some issues differ between one party and another,
dissertation, only the cash flow for the
Chapter 3: Literature Review
1 Process of Co
Cash Flow Forecast
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
cash flow forecast, 4) retention percentage and period, and 5) accurate graphical
format of cash flow forecast.
Types of Cash Flow Forecast
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
company, and 2) cash flow forecast of a particular projec
the cash flow of a project, i.e.
Contractor’s Cash Flow Forecast
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
some issues differ between one party and another,
, only the cash flow for the
: Literature Review
26
Process of Construction C
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
tion percentage and period, and 5) accurate graphical
Types of Cash Flow Forecast
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
company, and 2) cash flow forecast of a particular projec
the cash flow of a project, i.e. project cash flow
Contractor’s Cash Flow Forecast
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
some issues differ between one party and another,
, only the cash flow for the client
: Literature Review-Construction Cost Management
nstruction Cost Management
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
tion percentage and period, and 5) accurate graphical
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
company, and 2) cash flow forecast of a particular project (RICS, 2012). In this pilot
project cash flow
Contractor’s Cash Flow Forecast
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
some issues differ between one party and another, e.g. retention money (RICS, 2005)
client will be discussed.
Construction Cost Management
ost Management
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
tion percentage and period, and 5) accurate graphical
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
t (RICS, 2012). In this pilot
project cash flow, will be
Contractor’s Cash Flow Forecast
Generally, the approach adopted by the employer for producing cash flow for
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
retention money (RICS, 2005)
will be discussed.
Construction Cost Management
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
tion percentage and period, and 5) accurate graphical
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
t (RICS, 2012). In this pilot
will be created using
Generally, the approach adopted by the employer for producing cash flow forecast is
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
retention money (RICS, 2005)
Construction Cost Management
In the discussion for cash flow forecast, the following issues are discussed as 1)types
of cash flow forecast, 2) employer’s vs. contractor’s cash flow forecast, 3) function of
tion percentage and period, and 5) accurate graphical
There are mainly two types of cash flow forecast, i.e. 1) cash flow forecast of a
t (RICS, 2012). In this pilot
created using
ecast is
different from the approach adopted by the contractor. It is due to different
considerations in terms of payment dates, presentation of the cash flow forecast, and
retention money (RICS, 2005).
-
Chapter 3: Literature Review-Construction Cost Management
27
3.3.3 Function of cash flow forecast
The function of cash flow forecast is to assist the employer early in the process with
funding agreements and for procurement and contract choice. The cash flow profiles
may also be affected by the different procurement routes and contracts (RICS, 2012).
3.3.4 Retention Percentage and Period
The provision of retention is usually included in the construction contract. It is usually
10% of certified value excluding Nominated Subcontractors’ values, plus retention
retained for each Nominated Subcontractor. The limit of retention is usually 5% of
main contract sum excluding Nominated Subcontractors’ sub-contract sums, plus
limit of retention for each Nominated Subcontractor. Half of the total retained sum
shall be released upon the issue of the Practical Completion Certificate. The
remaining half shall be released upon the issue of Making Good Certificate which is
usually 12 months (or otherwise months agreed in contract) after the Practical
Completion Certificate (Ramus, 1996).
3.3.5 Accurate Graphical Format of Cash Flow Forecast
The retention shall be taken account of in the accurate cash flow forecast. There will
also be a long period between practical completion and the final certificate where the
cash flow is static with a final jump at the end which signals the return of the final
part retention (RICS, 2005).
3.4 Cash Flow Curve
In the following, the topics about 1) definition of cash flow curve, 2) function of cash
flow curve, and 3) preparations of the cash flow curve are discussed.
3.4.1 Definition of Cash Flow Curve
The cash flow curve is produced by a detailed estimate combined with a detailed
construction schedule. It is a graphical estimate of when the contractor expects to
have work in place and the estimated cost of that work. It is often one of the first
things the employer will ask the project manager (Len et al., 2005).
-
Chapter 3: Literature Review-Construction Cost Management
28
3.4.2 Function of cash flow curve
In the design process, cash flow cures are often used as a guide to the employer for
the predicted cash flow forecast (RICS, 2005). The cash flow curve serves the
function of a forecast to the employer of anticipated monthly payment to the
contractor for the completed work.
3.4.3 Preparation of cash flow curve
The cash flow curve is prepared by applying the estimated costs across the schedules
of activities. For example, if an activity has a value of $100,000 and takes five months
to complete, then $20,000 is spread over each of the five months. The other costs such
as the administration, taxes, and fees should be distributed proportionately over the
entire project. The cost data are summed at the bottom of the schedule for each month
to develop the anticipated monthly expenses (Len et al., 2005).
3.5 Cumulative Cost Curve
The discussion about cumulative cost curve will cover 1) the definition of cumulative
cost curve, and 2) the function of S-curve.
3.5.1 Definition of Cumulative Cost Curve
The cumulative cost curves are graphic representation for the planned expenditures
for a project. In the cumulative cost curve, x-axis represents the time periods and the
y-axis represents the cumulative costs expended at any particular time. The curve is
created by connecting the cumulative cost points of a project during each time period
over the entire duration of the project. The cumulative cost curve is usually in the
shape of a somewhat flattened “S” due to the higher expenditures during the middle of
the project and the lower expenditures in the beginning and end of the project. Thus,
the curve is also usually referred as “S-Curve” (James, 2008).
3.5.2 Function of S-Curve
As reported by James (2008), the S-Curve has many valuable functions in the
construction project management as to:
-
Chapter 3: Literature Review-Construction Cost Management
29
1) Help project manager see the total planned budget and communicate it in a
shorthand way;
2) Serve as an excellent briefing tool and easily to be read;
3) Serve as an excellent way of summarizing progress including both planned
and actual cost curves on the same graph for comparison; and
4) Analyze the earned value.
-
Chapter 4: Research Methodology
30
4. CHAPTER 4: RESEARCH METHODOLOGY
4.1 Introduction
The fundamental knowledge of the Building Information Modeling, cost management
and quantity surveying practices has been discussed in the literature review. With the
established knowledge, a pilot study about the innovative generation of cost
management using the 5D BIM technology will be carried out in order to find out
whether BIM can be used by the Quantity Surveyors for the cost management in the
cash flow forecasting.
4.2 Background of Research
With the development and maturing of BIM technology, the adoption of BIM
technology in the construction industry is inevitable. In fact, the Hong Kong Housing
Authority has set the targets to apply BIM to all new projects from design stage by
2014/2015 (Fung, 2011). BIM is expected to have a marked impact on the existing
practices for professionals in the AEC industry including the Quantity Surveyors. In
this dissertation, a pilot study of applying 5D BIM technology in the cost management
will be conducted to investigate the feasibility and efficiencies of using 5D BIM by
Quantity Surveyors. The difficulties encountered during the study will be discussed.
Some solutions for the problems will be suggested, while for some problems which
cannot be solved will be considered as the limitations of BIM adoption.
4.3 Research Framework
In order to fulfill the research objectives, a comprehensive research process including
literature review, pilot study, discussion and analysis of findings, conclusions and
recommendations are programmed at the outset of the research. The framework of the
research process is illustrated in Figure 4.1.
-
Analysis of Findings
•Benefits
•Difficulties and Problems
•Suggested Solutions
Recommendations &
Suggestions for Further
Literature Review
•BIM (development of BIM, 4D, 5D,
model-based estimating, standards
and policies worldwide, etc.)
•Construction Cost Management
flow forecast, cumulative cost curve,
etc.)
Discussion and
Analysis of Findings
Benefits
Difficulties and Problems
Suggested Solutions
Conclusions,
Recommendations &
Suggestions for Further
Study
Literature Review
(development of BIM, 4D, 5D,
based estimating, standards
and policies worldwide, etc.)
Construction Cost Management
flow forecast, cumulative cost curve,
Discussion and
Analysis of Findings
Difficulties and Problems
Suggested Solutions
Conclusions,
Recommendations &
Suggestions for Further
Study
Literature Review
(development of BIM, 4D, 5D,
based estimating, standards
and policies worldwide, etc.)
Construction Cost Management (cash
flow forecast, cumulative cost curve,
Analysis of Findings
Difficulties and Problems
Recommendations &
Suggestions for Further
Figure 4.1
31
(development of BIM, 4D, 5D,
based estimating, standards
(cash
flow forecast, cumulative cost curve,
•3D Model Drawing
measurement rules )
•BIM Quantities Takeoff and
Measurement
CostX; Measure by floor)
•BQ Production and Pricing
Use current tender price of related BQ to
reflect true price level)
•Construction Programme Planning
(Planned and actual construction
programme planning by assumption)
•Cash Flow Forecast
model with schedule and cost; Formulate
schedule for retention money deduct and
release; Create planned and actual cash
flow)
•5D Simulation
activities and simultaneous schedule and
cash flow)
1 Research Framework
Chapter 4
Data Collection
and Viability
Checking
Conduct Pilot Study
3D Model Drawing
measurement rules )
BIM Quantities Takeoff and
Measurement(Use Revit schedule and
CostX; Measure by floor)
BQ Production and Pricing
Use current tender price of related BQ to
reflect true price level)
Construction Programme Planning
(Planned and actual construction
programme planning by assumption)
Cash Flow Forecast
model with schedule and cost; Formulate
schedule for retention money deduct and
release; Create planned and actual cash
flow)
5D Simulation (Visulation of construction
activities and simultaneous schedule and
cash flow)
Research Framework
4: Research Methodology
Data Collection
and Viability
Checking
Conduct Pilot Study
3D Model Drawing (Follow HKSMM 4
measurement rules )
BIM Quantities Takeoff and
(Use Revit schedule and
CostX; Measure by floor)
BQ Production and Pricing (Bills by floor;
Use current tender price of related BQ to
reflect true price level)
Construction Programme Planning
(Planned and actual construction
programme planning by assumption)
Cash Flow Forecast (Link elements in
model with schedule and cost; Formulate
schedule for retention money deduct and