The Impact of BIM/VDC on ROI: Developing a Financial Model for Savings and ROI Calculation of Construction Projects
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Building Information Modeling (BIM) or Virtual Design and Construction (VDC) recently has been regarded as crucial by the architecture, engineering, and construction (AEC) industry. The use of BIM/VDC represents the creation and use of a three-dimensional (3D) virtual model that amplifies the design, construction, and operation of a building. This technological improvement fundamentally changes the process of how the buildings are designed and constructed. However, the approach to the use of advanced technology in the AEC industry does not seem to be welcomed by the majority of the industry regarding high initial cost of implementation. This study presents data gathered from meetings, interviews and a case study which was a construction project run in Sweden to determine the savings implementing BIM/VDC and to reveal the return on investment (ROI) from a general contractor (GC) perspective. The potential savings to the GC to invest in BIM/VDC were estimated based on the PENG model, measurable cost benefits associated with reduced schedule overruns and reduced change order cost.
This thesis confirmed that BIM/VDC results in vast savings and positive impacts on ROI based on the results from the case study which deployed it successfully.
Place, publisher, year, edition, pages
2012. , 58 p.
BIM, VDC, return on investment (ROI), savings, construction
IdentifiersURN: urn:nbn:se:kth:diva-101167OAI: oai:DiVA.org:kth-101167DiVA: diva2:546660
Subject / course
Degree of Master - Real Estate Development and Financial Services
Tarandi, Väino, Professor
Karrbom Gustavsson, Tina, Lektor