BIM is the life-cycle management of the built environment supported by technology. As such, its ultimate purpose is to manage total cost of ownership (TCO).
Total Cost of Ownership (TCO)/Lifecycle Cost :Total cost of ownership (TCO) is a dollar per square foot value ($#/square foot) associated with a facility. It is a calculation of all facilities-specific costs (not including furnishings or non-facility specific equipment) divided by estimated lifespan of the building (30 or 50 years), and the total gross area. Facilities specific costs include all construction, preservation, maintenance, and operations costs. A strategic asset management practice that considers all costs of operations and maintenance, and other costs, in addition to acquisition costs. TCO, therefore includes the representation of the sum total of the present value of all direct, indirect, recurring and non-recurring costs incurred or estimated to be incurred in the design, development, production, operation, maintenance of an facility/structure/asset over its anticipated lifespan. (Inclusive of site/utilities, new construction, deferred maintenance, preventive/routine maintenance, renovation, compliance, capital renewal,and occupancy costs.) Again, note that land values are specifically excluded.
Is this an appropriate metric? Are there others?
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BIM, EVM, TCO (or TCM – Total Cost Management) are all inter-related
BIM is the life-cycle management of the built environment supported by digital technologies.
TCM is effective application of professional and technical expertise to planand control resources, costs, profitability and risks. Simply stated, it is a systematic approach to managing cost throughout the life-cycle of any enterprise, program, facility, project, product, or service. This is accomplished through the application of cost engineering and cost management principles (I assert this aspect is somewhat incorrect…it not only cost engineering and cost managemt principles, but rather the application and integration multi-discipline competencies;…but hey this definition is from the AAECI, so how can I complain?). , proven methodologies and the latest technology in support of the management process. It can also be considered the sum of the practices and processes that an enterprise uses to manage the total life-cycle cost investment in its portfolio of strategic assets. (Source: (PUBLIC REVIEW DRAFT) AACE® International Recommended Practice No. 82R-13 EARNED VALUE MANAGEMENT (EVM) OVERVIEW AND RECOMMENDED PRACTICES CONSISTENT WITH ANSI EIA-748)
EVM has two critical flaws…
1. No mention of the need for collaborative project delivery methods, examples in construction sector being IPD – Integrate Project Delivery and JOC – Job Order Contracting. I argue that EVM is little more than an accounting number crunching exercise unless embedded within a collaborative project delivery methods. (History BTW proves me write on this… just as in the case of ISO 9000, consultant made millions while little true improvement in fundamental business processes was gained).
2. No mention of functional as well as physical metrics. Both are required in terms of a product, building, etc.
So, what is needed?
A complete ontology for each sector (built infrastructure, products, etc.). A life-cycle management strategy noting all required competencies, process, technologies, stakeholder, etc. etc.
BIM (Building Information Modeling) is the life-cycle management of the built environment supported by digital technologies. As such it is a process of collaboration, continuous improvement, transparency, and integration. 3D distractions aside, achieving optimal return-on-investment (ROI) on BIM requires focus upon change management, first and foremost. Ad-hoc business practices, traditional construction delivery methods, and legacy software must be cast aside.
BIM is managing information to improve understanding. BIM is not CAD. BIM is not 3D. BIM is not application oriented. BIM maximizes the creation of value. Up, down, and across the built environment value network. In the traditional process, you lose information as you move from phase to phase. You make decisions when information becomes available, not necessarily at the optimal time. BIM is not a single building model or a single database. Vendors may tell you that everything has to be in a single model to be BIM. It is not true. They would be more accurate describing BIM as a series of interconnected models and databases. These models can take many forms while maintaining relationships and allowing information to be extracted and shared. The single model or single database description is one of the major confusions about BIM.(http://4sitesystems.com/iofthestorm/books/makers-of-the-environment/book-3/curriculum-built-world/categories/introductionbim-integration/)
The principles of BIM:
Life-cycle management: Process-centric , longer term planning and technologies that consider total cost of ownership, support decision making with current, accurate information, and link disparate knowledge domains and technologies.
Collaborative Delivery Processes: Integrated Project Delivery (IPD) procurement and construction delivery processes that consider and combine the knowledge and capabilities of all stake holders – Owners, AEs, Contractors, Business Product Manufacturers, Oversight Groups, Service Providers, and the Community. (i.e. IPD, Job Order Contracting/JOC)
Standards and Guidelines: Common glossary of terms, metrics, and benchmarks that enable efficient, accurate communication on an “apples to applies” basis.
Collaborative, Open Technologies and Tools: Cloud-based systems architectures that enable rapid, scalable development, unlimited scalability on demand, security, real-time collaboration, and an full audit trail.
(Johnson et al. 2002) – There is an interrelationship between business goals, work processes, and the adoption of information technology. That is, changes in business goals generally require revising work processes which can be enhanced further by the introduction of information technology. But we also recognized that innovations in information technology creates possibilities for new work processes that can, in turn, alter business goals In order to understand how information technology influences architectural practice it is important to understand all three of these interrelated elements.
Business Goals… Work processes …. Information technology
require/create require/create require/create
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Sustainability – “to create and maintain conditions, under which humans and nature can exist in productive harmony, that permit fulfilling the social, economic, and other requirements of present and future generations.” – US Executive Order 13423
The majority (60-80%) of CMMS implementations fail for the same reason that the majority of ERP systems and IWMS systems fail… the lack of due consideration of robust, lead, processes and procedures. Quite simply, technology is used to automate existing processes vs. implement more efficient, transparent, collaborative, and accurate policies and procedures.
For example, virtually none of the major (or even minor) CMMS or IWMS technology vendors incorporate a standardized cost database, such as RSMeans, from which users could compare their actual material, equipment, and labor costs against a localized reference standard. “Just plain stupid”, right?
What good is a CMMS system into which an Owner inputs their own experiences without comparison to industry averages, best-practices, or any third party metrics? What can these Owners possible be benchmarking against? How can goals, objectives, targets be established?
1. How many Owners understand the difference between CMMS (Computerized Maintenance Management Systems) and CPMS (Capital Planning and Management Systems) and the absolute requirement for BOTH relative to efficiently managing larger facility portfolios?
2. How many Owners continue to be reactive in their capital allocation, even with a CMMS…aka spending 60%+ of their budgets on emergency or unplanned maintenance vs. planned, preventive and/or predictive maintenance?
3. How many Owners still wallow in design-bid-build and change-orders, legal disputes, and poor quality vs. collaborative efficient methods such as Job Order Contracting and Integrated Project Delivery?
The sad part is, there is a lot of information out there on efficient life-cycle management of the built environment supported by digital technology. Why are many facility management executives still supporting unsustainable business practices? That’s the hard question.
If you believe Cloud Computing is “hype”, “unsecure”, “won’t be accepted as an enterprise-wide solution”…. WRONG.
Significant change is upon the AECOO (Architecture, Engineering, Construction, Operations, Owner) Sectors, and many are unprepared.
BIM… as a process (not as a 3D visualizuati0n tool) will be commonplace, in parallel with cloud computing, total cost of ownership, as well as efficient construction project delivery mechanisms such as IPD (integrated project delivery) and JOC (Job Order Contracting).
Currently used techologies and processes such as IWMS (Integrated Workplace Mangement Systems), EVM (earned value management), and LEAN are interim at best as they do not provide the level of domain-knowlege, ease-of-use, or scalability, collaboration and interoperability needed to be efficient.
IWMS systems, for example… like Maximo, TMA, Planon, etc. have roots in legacy applications and/or specfic knowledge-domains (such as CMMS-commuterized maintenance management, or CAFM-computer-aided facilities management/space planning/utilization). Despite attempts to provide equivalent levels of sophisitications across all requisite domains, they appear to struggle at best.
Similarly, processes sush as EVM or ” earn-valued management” are being applied to Construction Project Management. While this may represent a step forward for many construction firms and Owners, is far too simplistic to enable facility life-cycle management and/or total cost of ownership (TCO) level decision support.
The convergence of BIM as a process and Cloud Computing provides the enabling platform for facility life-cycle mangement. The future is now.
Much has been said about BIM, and many misunderstand its core definition and purpose.
BIM is the process of efficent life-cycle management of facilties and associated infrastructure, supported by digital technologies.
BIM is not IWMS, CPMS, CMMS, CAFM, BAS, GIS ….. , but the integration of these and other core knowledge domains within a collaborative enviroment… with Owners, Contractors, AEs, facility/infrastructure users, service providers, and oversight groups… sharing information via open, comment defintions, taxonomies, benchmarks, practices and standards.
Technology now allows for the relatively simple task of integrating multiple technologies and knowlege domains and enabling accurate, secure, and rapid access to detailed informations and decision support systems. However, the REAL ISSUE is that the AEC / AECOM sector must change its “ad hoc” and traditionally unproductive ways of doing business.
The below BIM Framework, BIMF is a represetation of how the process side of BIM can be applied, with appropropriate customization, for any organization. Expanded details of each component is readily available. Also, it is important to become familiar with the following, if you are not current tracking these key initiatives/technologies/processes: Cloud technology, COBIE, IFD, IFC, OMNICLASS, UNIFORMAT, MASTERFORMAT, STEP, reference cost books / guides, JOC / Job Order Contracting, IPD / Integrated Project Delivery, FCI / Facility Condition Index , SCI / System Condition Index …….,
While “Government Focus” and/or “Government Priority” may seem to oxymorons to many of us, it is indeed past due that the Federal Government address Sustainability and Productivity issues within the building / AEC sector.
The altered economic landscape and the ever ticking global climate change clock require that we address facility renovation, repair, and sustainability immediately. This will require consistent condition assessment practices and efficient project prioritization mechanisms as well as efficient construction delivery methods such as Integrated Project Delivery (IPD) and Job Order Contracting (JOC).
May 26, 2011
National Institute of Building Sciences, Leading Organizations Issue Report of Findings
A new report from the National Institute of Building Sciences Consultative Council identifies five primary areas of concern regarding the nation’s buildings and infrastructure, and provides recommendations for action. Topics include: Defining High-Performance and Common Metrics; Energy and Water Efficiency; Codes and Standards Adoption and Enforcement; Sustainability; and Education and Training.
The National Institute of Building Sciences enabling legislation established the Consultative Council as an important link among disciplines in the field of building technology. The Council engages the leadership of key organizations with the intent of providing findings and recommendations for the advancement of the built environment. The Council report represents the collective vision of these leading organizations from across the building community.
“Given the many services we ask our buildings and infrastructure to perform, it is essential that the many disciplines and organizations responsible for the design, construction, operations and maintenance of buildings work together to identify overarching needs that can lead to widespread high-performance buildings,” said Ryan Colker, Director of the Consultative Council and Presidential Advisor at the Institute. “The Council’s initial report reflects this collective thinking and has the potential to significantly influence policymakers and the building community.”
The Council recommendations identify cross-cutting issues essential for reaching building industry goals. Specific recommendations include:
o The need to establish common definitions to guide measurement and expression of actual performance;
o Energy codes and standards should shift from prescriptive requirements towards performance-based provisions aimed at ultimately achieving net-zero energy use;
o Investment in energy and water related infrastructure is desperately needed and will vastly improve efficiencies and create jobs;
o Increased participation by federal, state and local government agencies would yield more uniformity and consistently adopted and understood codes, and increase the effectiveness of model building codes;
o At the state and local level, financial and technical resources must be available to ensure code and standard requirements are followed;
o Achieving sustainability requires addressing the triple bottom line of economic growth, environmental stewardship and social progress in all building and infrastructure projects;
o Public construction should address life-cycle costs and benefits, while accounting, financing, insurance and tax policies should facilitate and promote private investments in sustainable buildings and infrastructure;
o Education and training should be aimed at facilitating the entire life-cycle of buildings, from concept to design, construction, commissioning, occupancy, modification/renovation, and deconstruction; and
o Education and training incentive programs should be available to cover all levels and types of businesses and organizations, and should encompass all design, construction, maintenance and operational core competencies.
In 2010, Consultative Council members included: ASTM International; American Institute of Architects; American Society of Civil Engineers; American Society of Heating, Refrigerating and Air-Conditioning Engineers; Associated General Contractors of America; Building Owners and Managers Association, International; Construction Specifications Institute; ESCO Institute; Extruded Polystyrene Foam Association; Illuminating Engineering Society; International Association of Plumbing and Mechanical Officials; International Code Council; National Insulation Association; National Opinion Research Center at the University of Chicago; and United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry. Joining the Council in 2011 are the Laborers’ International Union of North America and HOK. The summary of recommendations appears in the Institute’s 2010 Annual Report, which is sent to the President of the United States and the U.S. Congress. To download a copy of the complete Consultative Council report, visit www.nibs.org/cc/Activities.
About the National Institute of the Building Sciences
The National Institute of Building Sciences, authorized by public law 93-383 in 1974, is a nonprofit, nongovernmental organization that brings together representatives of government, the professions, industry, labor and consumer interests to identify and resolve building process and facility performance problems. The Institute serves as an authoritative source of advice for both the private and public sectors with respect to the use of building science and technology. For more information, please visit www.nibs.org.