Rethink cost estimation with core processes that drive 5D BIM

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Rethink cost estimation with core processes that
drive 5D BIM
With the adoption of Level 3 BIM, cost estimation
can be adopted through 5D. This is possible by
linking the 3D model to an estimation library or
database. 5D Estimation helps project
stakeholders understand the project better, and
collaborate efficiently. This preconstruction
estimation data is used by designers, engineers,
and other project team members to make informed
decisions in terms of project planning, cost
management, purchase, quality, etc. The benefits
of 5D BIM cost estimation have been highly
recognized in the AEC industry. It is undoubtedly
helping project owners and stakeholders leverage
faster project delivery, minimize cost, enhance
productivity, and project quality. The
integration of design and cost-estimation in
preconstruction provides deeper analysis and
project insight. The effective use and
transference of data across the various project
lifecycle creates a robust platform to avoid
project rework, data loss, etc.
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It also helps project stakeholders build better
bidding proposals, efficiently handle project
execution, and ensure positive project
delivery. Robust estimating software can augment
the complete process through data transparency,
mitigate errors risks, etc. All this and more
to ensure owners and project stakeholders can
leverage better ROI. Advantages of a fully
connected BIM workflow based on 5D cost
estimation Helps estimators work more
efficiently Leverage unprecedented levels of
information to enhance collaboration Enhance
overall project performance through design
construction linking Better project
visualization based on accurate
estimation Augment quantification of modeled
materials Find optimal accuracy and solution in
calculating costs and planning The highly visual
process makes it easier for estimators to
understand new processes and technology Generate
greater cost estimates at quick rates Create
deliver precise data for planning and field
implementation
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Along these lines, accurate estimation through
high-end software helps create seamless workflows
across all the project lifecycles.
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How does 5D Cost Estimation Help?
Build automated estimations based on access from
3D models accuracy eliminates errors and
rework Increase in overall accuracy based on
automated data processing Leverage historical
cost data based on accurate takeoffs Connect data
across various systems for project planning, cost
management, etc. Cost management tools can be
used to verify 5D estimation data based on
comparisons between budgeted data and the actual
amount Gain greater insight into the project
through accurate 5D cost estimation On-site
personnel can leverage building strategies and
gain insights through real-time information on
materials, costs, etc.
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Understanding Design and Construction as an
Integrated System It is important to identify a
very strong relationship between design
construction, it can be best viewed as an
integrated system That said, the design creates a
highly detailed description of a building,
facility, infrastructure, etc based on models,
plans, etc. Whereas, construction planning
involves the identification of activities and
resources to make these projects a
reality Various characteristics need to be
considered based on design and construction
Every building, infrastructure, or facility is
unique and requires custom designing Every
project takes a specific time to complete Design
construction for a specific project need to
satisfy certain conditions The service life or
sustainability of a building, infrastructure, or
facility is long Project complexities can cause
changes in designs during the construction phase
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The integration of 5D cost-estimation at the
design and construction phase creates a robust
design and construction workflow and mitigates
most of the challenges based on rework, budget
and time overruns, etc. The Cost Estimation
workflow
Prepare a plan to begin the estimation Create an
estimate Manage your estimates Enhance the
estimation technique Prepare a plan to begin the
estimation The primary objective of the project
team would be setting a definition through a
broad vision Identify resources to begin the
estimation Identify any kind of constraint Build
a project charter or initiation document
Identify people for budget management approval
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Prepare an estimate Use various cost estimation
techniques to create and maintain a
budget Leverage policies, market conditions,
templates, etc., to build an estimate Build
estimates based on parametric and analogous
estimation Use WBS or Work Breakdown Structure
using the scope and duration Cost baselines are
the approved time-phased budget and will be
leveraged by the project manager to manage the
complete estimation process Manage your estimate
The Project Manager is responsible to oversee
various phases of the cost estimation
process Specific cost estimates can be factored
in the project execution phase based on specific
costs from vendors, required resources,
etc. This helps project managers convey
transparent information and manage better
stakeholder communication
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Enhance the estimation technique The project
manager is responsible for managing and improving
project cost estimates based on specific
KPIs These KPIs can be listed as project
objectives, effort, cost analysis or tracking,
and project performance Project Managers can use
EVM to perform Earned Value Analysis that can
compare the earned value, planned value, and
actual costs Change requests can be managed and
the necessary project documents need to be
updated based on the change requests Various
Cost Estimation Techniques
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5D Cost Estimation can be achieved through
various techniques viz. Analogous Estimation
use historical data to determine project costs in
the early stages of the project Statistical
Estimation determine estimation based on
parametric calculations Bottom-Up Estimation
determine estimation based on individual work or
tasks Three-Point Estimation determine
estimation based on 3 techniques viz.optimistic,
most likely, and pessimistic Cost of Quality
determine estimation based on expenses during the
project to prevent failures and expenses done
after the project to focus on failures Reserve
Analysis determine estimation based on reserves
that need to be kept aside or allocated
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Conclusion Using 5D cost estimation across the
entire project lifecycle, estimators or
estimation companies can save on valuable time
and cost. The BIM 5D estimation advantage lets
stakeholders view the model along with the
necessary schedules. This ensures all the teams
get a clear grasp of how changes can affect the
cost cycle and vice-versa based on invaluable
information. BIM estimation from design to
construction always works towards owner and
stakeholder advantage.
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