Chapter 3 Discussion Questions (Continued)
4.3 TYPES OF OWNERS: WHY, HOW OFTEN, AND WHERE THEY BUILD
condition assessment over time. The owner can view the facility or facilities periodically to get a “ big picture ” view of its condition assessment.
Rapidly evaluate the impact of retrofi t or maintenance work on the facility. Another example is the use of visual and intelligent models to help facility managers assess the impact of retrofi t or maintenance work. For example, a BIM - based FM system was applied during maintenance work on the Sydney Opera House (Mitchell and Schevers 2005). The maintenance team used the model to visually assess which areas would be affected when power was cut to a specifi c room.
4.3 TYPES OF OWNERS: WHY, HOW OFTEN,
Expense or Income
Category Description
Factors that increase/decrease
cost (relative) BIM Application First costs
(all owners)
Land acquisition Cost to purchase land or existing facility
Economy and market demand
None
Design Services related to
designing the building to meet owner requirements
Scope (extent of requirements)
Program compliance and automated- drawing production Level of information
development, and complexity
Coordination
Regulatory compliance
Code-checking
Construction Services related to physically constructing the facility based on design documentation
Labor market Material costs and accurate quantities
Prefabrication and 4D Prefabrication and coordinated design Rework due to
errors and quality of construction
Clash detection and coordination Site constraints 4D
Complexity Coordination and 4D Project management Costs associated with
managing the project
Coordination costs and number of organizations Furnishings Furniture, fi xtures,
and equipment
Confi guration, availability, and coordination
Design confi guration
Recurring costs (primarily operating owners)
Carrying charges Interest on fi nancing Project duration Over-estimating the project
4D and prefabrication Takeoff conceptual estimating Insurance Costs associated with
insuring facility
Operational risks Operation simulation
Replacement Costs associated with replacing furnishings, fi nishes (carpets and paints), equipment, including roofs or other building components
Selecting low-end and poorly performing materials
Asset management and analysis
(Continued)
c04.indd 112
c04.indd 112 12/19/07 1:57:18 PM12/19/07 1:57:18 PM
Expense or Income
Category Description
Factors that increase/decrease
cost (relative) BIM Application Maintenance Costs associated with
maintaining the facility including landscape and grounds
Poor design and construction and the maintainability of the design
Operation simulation
Operations and utilities
Energy and voice data Energy effi ciency and building performance
Energy analysis and performance monitoring Personnel Salary and benefi ts
for non-operation staff
Poorly functioning space or non-ideal work environment
Energy analysis and scenario design
Income Sale/lease Income from selling or
renting a property
Time to sale/market 4D, prefabrication, and coordination Marketability of facility Design confi guration
Operation
simulation (pre-sales visualization) Energy analysis Market demand and
the economy
None
Production Goods manufactured
or sold in a facility (retail)
Time to market 4D, prefabrication, and coordination
Services Income from services
performed in facility
Workplace productivity of services
Energy and lighting analysis, operation simulation
Indirect Reduction in
operational costs
Sustainability Energy analysis and design options
the largest portion of this market (Tulacz 2006). The case studies at the end of this book demonstrate various BIM applications and benefi ts for the fol- lowing types of operating owners:
Healthcare (Camino Group Medical Building)
Federal facilities (Federal Courthouse, Federal Offi ce Building, and Coast Guard Facility Planning)
General commercial space (One Island East Offi ce Tower and Hillwood Commercial Project)
Manufacturing (General Motors Production Plant)
•
•
•
•
c04.indd 113
c04.indd 113 12/19/07 1:57:19 PM12/19/07 1:57:19 PM
These types of owners — owners who operate — benefi t from any of the BIM applications areas listed in Table 4 - 2 that are associated with fi rst and recurring costs.
Owner developers, on the other hand, build to sell and are motivated to maximize their rate of return on their investment in the land and the facility.
Developers who sell have a shorter ownership lifecycle compared to the owner who operates. Owners who sell are typically real estate developers or multi or single family home builders. * Their fi nancial models are primarily driven by the cost of the land and permitting and the risks associated with market down- turns and changing market trends. The changes in construction cost have less impact than these factors in their business models. The indirect costs that stem from design and construction services can impact their business models in the following ways:
1. Unreliable or poor estimates result in higher (than necessary) carrying costs.
2. Lengthy permitting phases result in higher carrying costs and missed market opportunitites.
3. Rework and poor planning increase schedule duration and increase car- rying costs, time to market/sale
4. Design commitments early in a length design a and schedule process reduce opportunities to respond to market changes and to maximize sale price.
Owner developers can avoid these hidden costs and increase ROI by apply- ing BIM on their project to improve estimate reliability (e.g., conceptual esti- mating), better communicate project to the community, reduce time to market, and improve marketability of the project.
4.3.3 When Owners Build: One - Time or Serial
Another factor related to the owner ’ s business model is how often they build.
Owners that build once are initially less likely to invest in process changes either due to lack of time for research and education or perceived value to invest in change. Whereas owners building serially, such as universities, devel- opers, or retail owners, often recognize the ineffi ciencies in current delivery methods and their impact on overall project cost. These repeat builders are more likely to consider building delivery processes that are not based on minimizing
*The scope of this discussion does not address the unique demands of the home builder market and its own network of service providers. While many of the benefi ts we cite certainly apply to home builders, the technologies and tools we discuss in this book focus on commercial construction.
c04.indd 114
c04.indd 114 12/19/07 1:57:19 PM12/19/07 1:57:19 PM
initial fi rst - costs to delivery models that optimize the overall building delivery and yield quality facilities based on reliable costs and schedules. Consequently, serial owners tend to represent a high proportion of early BIM adopters.
One - time owners, though, can benefi t just as much as serial owners and can do so easily by collaborating with design and construction providers famil- iar with BIM processes. Many of the case studies discuss projects where a serv- ice provider initiated the use of BIM.