1350 Martin Benchmarking, BIM and Beyond - BIM and Beyond J MARTIN Executive Director, BCIS ... RICS New rules of measurement - order of cost estimating and elemental cost planning

  • View
    216

  • Download
    3

Embed Size (px)

Text of 1350 Martin Benchmarking, BIM and Beyond - BIM and Beyond J MARTIN Executive Director, BCIS ... RICS...

  • RAKI, Helsinki, March 2013www.bcis.co.uk

    Benchmarking, BIM and Beyond

    J MARTINExecutive Director, BCIS

    RAKI 30th anniversary

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Joe Martin

    Executive Director, BCIS of the RICS Member of Treasurys Infrastructure UK (IUK)

    Infrastructure Data Group Member of Cabinet Office/IUK Joint Data and

    Benchmarking Group

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    RICS

    The Royal Institution of Chartered Surveyors can trace its history right back to 1792 when the Surveyors Club was formed.

    The first RICS Council was elected in 1868. Today we cooperate closely with professional organisations around the world, with members specialising in all subjects relating to property, land and construction.

    Represent 22 disiplines 100,000 professional members 30,000 working in

    construction Members in 146 countries, offices in 30 countries www.rics.org

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Government construction strategy

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    UK Government Construction Strategy

    LESS COST LESS CARBONReduce construction costs by up to 20% Procurement (integration, early contractor

    involvement) Benchmarking (knowing what a project should cost

    design to cost) The use of BIM

    Carbon reduction

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Government Construction strategy

    Target of a sustainable reduction in construction costs of 15%-20% by end of this parliament (May 2015)

    Must be sustainable To be achieved without impacting either whole life

    value or the long term financial health of the construction industry

    1,200m - 1,600m on a budget of 8 billion Not intended to reduce expenditure but get more

    buildings for the same money

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Achieving reductions

    How will reductions be achieved

    Better control of scope Challenging/reducing scale and quality of projects Amended output specifications and floor areas Increased standardisation/bulk purchasing Reduce non-production cost Building Information Modelling Avoiding redesign

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Achieving reductions

    How will reductions be achieved

    Project team collaboration/integration Early stage management Programme management Better collaboration with supply chain Setting challenging benchmarks Publication of Benchmark data Using available elemental benchmarks to challenge

    allocation of resources

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Government Construction strategy

    Three main strands Procurement Benchmarking BIM

    All of which need a construction economist!

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Procurement

    New methods of procurement

    Cost-led procurement

    Integrated Project Insurance

    Two stage open-book

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Procurement

    Cost-led procurement

    Cost benchmarks and outline brief

    Framework of integrated teams

    Programme of work

    Value for money

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Procurement

    Integrated project insurance

    Cost benchmarks and outline brief

    Framework of integrated teams

    Third party verification

    Insurance policy all risks including cost overrun

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Procurement

    Two stage open book Cost benchmarks and outline brief

    Framework of integrated teams

    First stage capacity, capability etc (pre-qual)

    Second stage open book proposal

    Independent stage gate reviews

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmarks

    Benchmarks

    Cost Reduction Validation Method10 February 2012

    Construction Cost Benchmarks, Cost Reduction Trajectories & Indicative Cost Reductions April 2011 to March 2012

    23 April 2012

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmarking

    What do we mean by benchmarking?

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmark

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmark

    a permanent physical mark of known elevation used to provide a point of beginning for determining elevations of other points in a survey. (Surveying Moffit & Bossler)

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Management Benchmarking

    Management benchmarking

    the continuous process of measuring products, services and practices against the toughest competitors or those recognised as industry leader

    i.e learn from best in class.

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmarking?

    Benchmarking Process

    BenchmarkMetrics

    BenchmarkPractices

    Benchmark Gap* How much* Where* When

    How close to the gap* Improved knowledge* Improved practices* Improved processes

    Superior Performance

    Benchmarking Robert C Camp

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmarking?

    We are looking at one dimension. Cheapest is not best in class. But you cannot judge the value without knowing the

    cost Below average cost may be all we can afford. So we need knowledge of costs in the market to set

    our target. This is an everyday activity in a market based society We do it with products we buy every day

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Everyday benchmarking

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmarking

    Agreed cost sufficient to build to the required standard, verifiable from the market

    Should costAs distinct from the

    Will cost

    Design to a cost not cost a design

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    What do we use benchmarks for?

    Estimating cost of new projects:

    What do we expect our project to cost relative to the cost of previous projects?

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmark estimates

    RICS New rules of measurement - order of cost estimating and elemental cost planning (NRM1)

    Defines an Order of cost estimate as a benchmark estimate, i.e. It is based on knowledge of what building costs rather that the cost of building a specific design

    This is the data that BCIS collects

    and the knowledge that exists in an experienced surveyors head!

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    BCIS database

    BCIS database Building /m2 gross internal floor area Building costs/functional unit Element /m2 gross internal floor area Element /element unit quantity

    Element a major physical part of a building or other entity that fulfils a specific function or functions irrespective of its design, specification or construction,

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Primary Schools /m2, 1Q2013, UK Mean Location

    Primary Schools

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Primary Schools /m2, 1Q2013, UK Mean Location

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Primary Schools /m2, 1Q2013, UK Mean Location

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Primary Schools /m2, 2Q2012, UK Mean Location

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Primary SchoolsExternal Walls

    /m2, 2Q2012, UK Mean Location

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Government (Cabinet Office)Benchmark data

    Cost Benchmark data Type 1 benchmark; Spatial measures - /m2, /m,

    /km, /m3 Type 2 benchmark: Functional measures business

    outcomes /place in schools, of flood damage avoided/ invested

    Type 3 benchmark: department specific e.g. MoJ ratio of production cost/total construction cost

    Type 4 benchmark: Type 1 at the elemental level

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Type 1 and Type 2 benchmarks

    Primary Schools (Index Cost per floor area/Cost per place)

    40

    60

    80

    100

    120

    140

    160

    30 years 25 years 20 years 15 years 10 years 5 years

    /m2 /place

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Highways Agency benchmarks

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Highways Agency benchmarks

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Cost Reduction Validation Method

    Cost reduction validation - calculation method Publication of baseline benchmarks by departments

    e.g. Cost of school by /m2 Cost of a road by /lane kilometre

    Costs reduction reported by comparing current benchmarks with baseline benchmarks

    Generally benchmarks based on contract award (commitment) data. Or where this is not available, otturn (throughput) data

    RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmark data

    Benchmarks show single point average (mean) and 20th and 80th percentiles

    Defined ranges Range T (top), 80th minus mean/mean as a

    percentage Range B (bottom), 20th minus mean/mean as a

    percentage Range T+B, 80th minus 20th/ mean as a percentage

  • RAKI, Helsinki, March 2013

    www.bcis.co.uk

    Benchmarking Objectives

    Objectives: to incentivise higher levels of integrated team working,

    continuous improvement and effective innovation challenge to beat the benchmark benchmarks will fall overtime and cost will increasingly

    cluster at the lower end of the range of costs currently paid for similar products.

    Point of reference for wider public