Benchmarking, BIM and Beyond

Transcription

1 Benchmarking, BIM and Beyond J MARTIN Executive Director, BCIS RAKI 30 th anniversary 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

2 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 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 Government construction strategy

3 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 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

4 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 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

5 Government Construction strategy Three main strands Procurement Benchmarking BIM All of which need a construction economist! Procurement New methods of procurement Cost-led procurement Integrated Project Insurance Two stage open-book

6 Procurement Cost-led procurement Cost benchmarks and outline brief Framework of integrated teams Programme of work Value for money Procurement Integrated project insurance Cost benchmarks and outline brief Framework of integrated teams Third party verification Insurance policy all risks including cost overrun

7 Procurement Two stage open book Cost benchmarks and outline brief Framework of integrated teams First stage capacity, capability etc (pre-qual) Second stage open book proposal Independent stage gate reviews Benchmarks Benchmarks Cost Reduction Validation Method 10 February 2012 Construction Cost Benchmarks, Cost Reduction Trajectories & Indicative Cost Reductions April 2011 to March April 2012

8 Benchmarking What do we mean by benchmarking? Benchmark

9 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) 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.

10 Benchmarking? Benchmarking Process Benchmark Metrics Benchmark Practices Benchmark Gap * How much * Where * When How close to the gap * Improved knowledge * Improved practices * Improved processes Superior Performance Benchmarking Robert C Camp 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

11 Everyday benchmarking 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

12 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? 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!

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

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

15 Primary Schools /m2, 2Q2012, UK Mean Location Primary Schools External Walls /m2, 2Q2012, UK Mean Location

16 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 Type 1 and Type 2 benchmarks Primary Schools (Index Cost per floor area/cost per place) years 25 years 20 years 15 years 10 years 5 years /m2 /place

17 Highways Agency benchmarks Highways Agency benchmarks

18 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 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

19 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 Benchmark data UNCLASSIFIED

20 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 Inflation Tender Price Index of Public Sector Building Non-Housing Q2000 3Q2000 1Q2001 3Q2001 1Q2002 3Q2002 1Q2003 3Q2003 1Q2004 BIS PUBSEC Tender Price Index of Public Sector Building Non-Housing 3Q2004 1Q2005 3Q2005 1Q2006 3Q2006 1Q2007 3Q2007 1Q2008 3Q2008 1Q2009 3Q2009 1Q2010 3Q2010 1Q2011 3Q2011 1Q2012 3Q2012 1Q2013

21 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 Future Benchmarks Benchmarks to be published from the Regulated Sector London Underground Network rail

22 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 Cost breakdown structure. Where the data comes from How it has been calculated Departments to state proportion of expenditure covered by benchmarks 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.

23 Retaining structures Embankments Environment benchmarks for CO/IUK Unit Cost 1 Date Mean Range 2 P10 P90 Embankments 500 to 5000m3 total volume Total project cost 3 m /12 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

24 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 BIM is integral to the Construction Strategy BIM Strategy published June 2011 Also: Low carbon strategy Infrastructure strategy

25 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 Enabling the Government BIM Strategy

26 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. 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.

27 COBie drops Drop 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. 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

28 Initial cost estimate Refined benchmark cost estimate based on element unit rates from massing model 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.

29 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.

30 BIM and Infrastructure Note: this slide has been stolen from Christophe Castaing (EGIS) and Pierre Benning (Bouygues Travaux Publics Data model and IFC for Infrastructure Note: this slide has been stolen from Christophe Castaing (EGIS)and Pierre Benning (Bouygues Travaux Publics)

31 Thanks Thanks: Mark Bew, Engineering Construction Strategies Ltd Nick Nisbet, AEC3 Christophe Castaing, EGIS Pierre Benning, Bouygues Travaux Publics Jared Banks, Shoegnome, LLC, USA UNCLASSIFIED 22/03/2013 Links Full details at: 152/Government-Construction-Strategy_0.pdf Report.pdf

32 Construction economists Construction Economists The futures bright Benchmarking, BIM and Beyond J MARTIN Executive Director, BCIS RAKI 30 th anniversary