In the construction industry, there are many serious risks that may be encountered in construction projects. These risks may hinder the progress toward the completion of the project. One of the major risks linked to a construction project is the inaccuracy of cost estimation. Any project is carried out under uncertain conditions. To make the progress of the project smoother, some contractors rely on a cost-estimating model. Model Based Estimating is a new estimating tool as well as a new industry standard. It is one of the latest emerging developments in the construction industry. Let’s discuss it in detail:
What is Model Based Estimating
It is also referred to as 5D BIM. It involves a three-dimensional model rather than two-dimensional drawings. This model is used to extract quantities and build out the cost estimate of a particular project. Although this emerging development has turned out to be a popular way to a greater extent, it is all because of the continued enhancement of the preconstruction tools that permit it. Make sure you know that there are presently not many best practices or industry standards around this model.
How is this software helping companies?
In the construction industry, lots of preconstruction professionals have observed this gap and made efforts to try and narrow it. These efforts are made to use this method and develop industry-wide standards so that workflows can become more efficient and easy for every general contractor. Of course, you may be thinking about why this method even matters. Are there any advantages of using this method? Of course, yes! There are many interesting benefits of using it. Many benefits come with this type of estimate, such as:
- Enhanced accuracy and alignment
- Speeds up the process of budgeting
- Enhanced planning
Let’s discuss these benefits in detail:
Enhances accuracy and alignment
The most important thing about this type of estimating for a contractor is that it links cost directly to visual images. This is how it enhances accuracy also because of its ability to imagine what is going to be included. It is perfect for beginners in the construction industry. At the same time, it also provides huge support to enhance alignment with the project owner. The reason is that they are capable of seeing the assumptions that your team has developed.
Better planning structure
Another benefit of using Model Based Estimating is that if you use it in the current processes or operations, it provides an enhanced planning structure. For a glance, a team handling architecture-related tasks can make changes if needed to an item on the cost estimating with just a couple of clicks. Based on this kind of estimating, the changes will be reflected in both the estimation and designing parts.
Increase the speed of the budget process
Considering the use of this kind of estimating for a project will help you speed up the process of budgeting without fail. As mentioned above, costs in a project are directly linked to images. This is the main reason why there is a reduced chance of human errors, due to which a project can be delayed by weeks. In addition to that, this type of estimating for a construction project is a much more accessible data point for other departments in a construction company or business. Like if a subcontractor, project owner, or architect has something to update about the budget so that it can be reflected in any design change, then this type of estimating makes it simpler and smoother.
With the help of this kind of estimating, you can implement those updates in an easy and more effective way than it would be with a traditional cost estimate. Consequently, the entire team working on a particular project has the ability to receive all project updates in as little as a few days. It means that they do not need to wait for getting project updates because they will receive them in a few days rather than a few weeks.
How to be successful?
As Model Based Estimating is gaining momentum and more projects need estimating in BIM, professional estimators and contractors are working to define a new process and invest in the opportunities available for enhancing cost estimating with BIM. You should know where to begin and how to include this estimate. With it, you will make sure to achieve success.
You should start small. There is no need to expect to unplug the existing system of a construction company and make a change in just a single night. You must learn how to estimate with this method properly. Working to identify ideal projects and teams is the best way. After that, you will be able to include this kind of estimate in your project. Of course, you can take the guidance of professionals at VECTOR by Estimating Edge if you need to learn more about it.