ROI of VDC

Ken Stowe (Autodesk) organized and moderated a session at AU last year on ROI of Utilizing BIMs for Builders. Builders from several companies shared how they are using BIMs, some of the challenges they've encountered, the benefits, and then some metrics associated with that use. The information was great, so the company has been watching the recording of it. It has gotten me thinking about our own metrics.

With regard to our VDC adoption, we are in an interesting place right now. We are wrapping up our involvement in our first VDC projects (Gen I & Gen II projects) while we are working Gen III projects, all of which include a model sharing component and several of which contractually require virtual construction. It almost hurts to look at earlier projects - we are more efficient now and the tools have come so far in just 2 (almost 3!) years. There is one exciting thing about wrapping up these Gen I & II projects - we finalize our ROI for VDC on the project (and then with much fanfare, we present to John Tocci, other Tocci execs and the project owner).

Calculating ROI is difficult and is definitely up for interpretation. Our take on it: document everything we used the BIM for on the project (in a ridiculous spreadsheet that includes 20 different tabs, hyperlinks and formulas that I always manage to 'break' - although I always fix them before the VC Coordinator on the project notices) and then figure out what would have happened if we hadn't used the model for that (working with subcontractors, supers, etc.).Here are two examples from one of our projects - you'll probably have to click on the image to actually read the text (I couldn't get it any larger and was too lazy to retype):























From there, we add up the totals and do a little math to figure out total ROI; for the project referenced above, it turned out to be:







Of course, anyone can come in and say that issues could have/would have been found without VDC, but it does give us a sense of what VDC has contributed project. And at least it starts the discussion. How is everyone else calculating VDC? Any comments/criticism on the examples I shared? Any feedback is great, as we want keep improving as much as possible.

Like What You Read? Sign up to receive emails about my posts, occasional newsletters, and various free resources - including: 5 Time Saving Tools for Overclocked Building Industry Innovators (Would You Believe That They are All Free?!)






3 comments:

GenYConstructionEngineer said...

We have met some resistance with quantifying the ROI on our BIM efforts on our IWP's, mainly from the project manager, superintendent, and field staff. They come up with reasons like, we had an inflated estimate, we had the A-Team, and we would have caught that. One project for example is 200K under budget, and the team believes utilizing BIM was a wash, even though our BIM costs were nearly 1/10 of that. From those discussions we have developed a Doubt Factor, DF, that we can apply to the total dollars saved. In your example of penetrations you could use a DF of .5 stating that at least half of the penetrations would have caused problems. With this number being variable it allows you to adjust as the team sees fit and still record the potential, which is from .00 - 1.00. We can also then quantify the other factors listed above,
Good weather DF = .2
A-Team DF = .3
Good Subcontractor DF = .3
BIM DF = .2
Total DF always has to equal = 1.

You may even have a -DF in the equation if the BIM Model was wrong.

This allows us to track the assumptions made while calculating BIM ROI.

Maybe I am putting to much of my engineering practice into this?

What do you think?

guttu said...

Can we get the recordings for the Ken Stowe show at Las Vegas for ROI on BIM?

Laura Handler said...

Yes, through the Autodesk University website - just create a log-in and then you can search for it.