2011 is the BIM tipping point

Will 2011 be the tipping point for BIM? Image from www.tvscoop.tv

Over the past couple of weeks there has been a growing amount of interest, discussion and debate about Building Information Modelling. The momentum was started in October 2010, with comments from Paul Morrell about the Government’s ambition to embrace BIM. The Government’s construction strategy, issued in May, formalised this view. As a company that has been evangelising about BIM for several years, it is nice that some of the views we have had are being embraced by others, views that we have been able to share with the industry, along with our learning, during our conversion to a BIM-centric organisation. There are still negative responses to the approach, however there are now a majority of individuals and organisations who accept that BIM is the future and they will have to adopt and invest moving forward.

What I have noticed over recent months is the pace of adoption. Over the past few weeks I have spent time in London and have met with a number of senior individuals from major constructors and consultancies. Many of these organisations have made rapid progress and are driving it through their companies and making it part of their forward strategies.

I believe that our professional institutions have been very slow to respond to these changes. Organisations such as the RIBA and RICS are still grappling with BIM, and this is a concern as they are seen as our industry’s representatives in the public realm. In order to adequately service us as personal and professional representatives, and highlight our position as an industry, these organisations must change their role very quickly, and embrace a position as representatives of a skill set within the whole life cycle of the design, construct and operate that our industry has.

Jack Pringle, the next present of the RIBA, made a great point in Building Magazine last week when he suggested that the Construction Industry Council was an excellent organisation to be the umbrella for the industry bringing together the complete cycle into a single organisation. The CIC has also had opportunity to influence the Government in a way which the professions have not achieved for many years, and this level of mutual respect and understanding is very important as it provides us with an intelligent, measured and coherent voice, particularly relevant at a time when the industry’s involvement public sector projects, such as BSF, have come under fire.

I am really encouraged that the life cycle of a building is now being understood and appreciated. The days of considering the design and construction of a building separate to its capital cost are starting to diminish. Progressive organisations have acknowledged that getting the requirements right in the first instance influences the process of design and construction is very important, and also has a huge impact on the operation and the revenue costs of a building during its life cycle.

_space group has embraced a ‘Big BIM’ approach with a four stage process that takes in this life cycle (www.bigbim.co.uk ), and similar models which adopt similar principles are used in other firms. There is no right or wrong approach to BIM. The important thing is that our industry understands the wider life cycle of a building.

There will still be architects, engineers and constructors who see their role in very narrow terms, rather than embracing this broad spectrum view. However at _space group, our openness to innovation and use of our skills has allowed us to get involved with a whole range of organisations throughout the whole cycle of a project. We are now providing support to sub-contractors, main contractors, other consultants and end users to deliver a more integrated approach which delivers less waste, less cost, less energy and less risk.

As the pace of adoption increases, it is clear that this year will be a BIM tipping point for our industry and those not on board will be tipped out of any meaningful work in the industry.

What future for our industry?

What does the future hold for our industry?

On the front page of the Financial Times yesterday was an article about the incredible decline in construction output during 2011. Overall construction workload fell by a staggering 39%. This is the most significant fall for the past 35 years. There were turnover statistics from several of the major construction companies, including Kier and Balfour Beatty, which indicated the considerable reduction in their construction turnover in the period.

The quarterly GEP figures issued for Quarter 1 suggested that construction output was down by nearly 5% in the period. There are no regionally adjusted figures so I would anticipate that the decline in the regions is far greater as the overall figure will be bettered by investment in the South East.

This catastrophic level of change in any industry will inevitably reshape the future considerably. For the construction industry, clearly we will never go back to the past and the type of industry it was over the past 15 years will not be seen again. We are in a period of flux at present where there is little workload or revenue, but at the same time there are improvements in technology which could reshape how we design, deliver and operate buildings for the future.

All businesses are keen to set out a vision of sustainability which looks to provide steady employment and profit for those involved in the businesses, something which is clearly under considerable threat in the construction industry at present.

As I look into the future I believe it is impossible to predict where we will be in 2 or 3 years time. Long term investments are a considerable gamble with the future being so unpredictable. Many firms are shrinking their regional presences and looking to develop opportunities in the South, which will obviously drain talent from the regions. Organisations are consolidating and changing on a regular basis. International markets continue to be the lifeline of most organisations that are able to stay afloat.

This generation has never seen such a dramatic downturn, and construction leaders are drawing on much of their experience to maintain business sustainability. While it may be difficult to predict where any of us will be beyond the next 12 months, all we can hope is that when we do see a light at the end of the tunnel, the future will be different, but secure, as well as exciting and challenging. Hopefully we can all learn lessons from this period and ultimately ensure we all have a better future.

The Future of Architecture

Will onsite be replaced by offsite manufacture in the future?

The recent publication by Building Futures about the future of architecture is an excellent insight into the challenges facing the industry. The report paints what I believe to be an incredibly accurate and perceptive view of our future.

The premise of the document is that there may be no architecture profession by 2025, which is an interesting argument and one I feel is close to what will be the reality of the situation.

Ultimately, I believe that the RIBA will end up representing two very different types of organisation.

At one end of the spectrum, the RIBA will represent the small general practitioners which operate in local markets on one-off niche projects. At the other end of the spectrum they will represent architects internationally – large international practices which deliver high profile complex schemes around the world.

Those medium-sized architects face the future of a diminishing marketplace. Previously, these practices have been involved in large Government programmes such as BSF or P21+. They have also delivered mixed use commercial schemes for developers across the UK.

In reality, it is no longer an option for these practices to rely on the Government for work, as the marketplace and requirement for these schemes is disappearing fast. Such organisations need an ongoing growth and revenue to provide investment in training and development and to cover large overheads.

The report hints at what these practices need to do to survive. They will need to reposition themselves and do something different in the marketplace.

Their future lies in capitalising in the need for a coordinating role. The use of BIM in construction projects supports the need for a lead designer or coordinator. There is an opportunity to embrace this role however I am sure many design managers within construction businesses will attempt to take on this role for themselves.

The role of consultant engineer may also diminish as both M&E and structural sub contractors take on more and more of the technical requirement.

The medium sized practice could also look to develop products on behalf of the industry. There is an opportunity to use the design skills which architects have to produce buildings which are manufactured rather than constructed. These products can then be sold to the large contactors or direct clients. If the designers can be clever enough they could create products which depend less on constructors and more on assembly, changing the industry through an investment in innovation. Large contractors who have strong balance sheets tend not to invest in research and development and are happy to continue to deliver projects how they have always been delivered.

The final area of opportunity for these mid-range practices is on international work. Over the past 10 years many of these practices have built up a great amount of experience in designing hospitals and schools. These skills should not be wasted and can easily be exported to other parts of the world. It will mean competing on a global stage, but with the right targeted marketing there may be an opportunity to fill the gap left by the reduced spending in the UK.

There is no doubt that the prognosis for architectural practice as we know it today is not good. By 2025, the profession will be very different and many of the current medium sized practices will not exist in their current form. A number of new businesses will have been formed by the more entrepreneurial and innovative business leaders, whilst many of the others will have been absorbed by larger construction companies who have identified the need for the coordination skills which are inherent in the traditional architect.

It's just the beginning

How far along the road to recovery are we?

Since we returned to work after Christmas I have sensed a notable change in atmosphere and confidence across the industry.

It seems like a number of organisations are making announcements to reduce their costs since they have returned after the break.

I suspect that during 2010 many companies were hanging on, waiting for the market to improve. Unfortunately that has not happened and is unlikely to happen in the near future. I would guess that when the Directors of these companies sat down and looked at cash in the bank and opportunities going forward, some fairly drastic measures had to be taken.

Consultancies would have looked at their costs and realised the only option is to cut resource to minimise outgoings. It is clear, from the fact that there are several small to medium sized construction businesses that have gone into administration since the New Year due to cash pressures and lack of future pipeline, that in some cases, this has not been enough.

I think this process will continue right through 2011 and beyond. I think the last two to three years and the forthcoming two to three years are likely to be the most significant in construction for at least a century. There are many theories of what the impact of this reduction in construction work will be, but I hope that something positive comes out of such a negative situation.

As an industry we can hopefully embrace this period and look to find more efficient ways of delivering buildings to the highest standard.

The Government is putting huge faith in the private sector to drive recovery and with construction being one of the most significant industries in the country, clearly we will all have our part to play in the economic recovery process.

The Largest Change Management Programme Since Victorian Times

Paul Morrell - Chief Construction Advisor: Image from www.bco.org.uk

Paul Morrell has been at it again. As part of his role for the Department for Business, Innovation and Skills, he has issued a report which has looked at the implications to the construction industry of the low carbon challenge.

His report suggests that the industry faces the largest change management programme since Victorian times if it is to meet the low carbon agenda.

The report came from the Innovation and Growth Team (IGT) which is drawn from the construction industry and is asked by the government to consider how the construction sector could meet the low carbon agenda.

The Climate Change Act requires the UK to reduce its carbon account in 2050 to at least 80% lower than the 1990 base line.

Via the report, Paul Morrell has highlighted some of the good practice which is being carried out throughout the construction industry at present. There are some excellent projects where energy is right at the heart of the project. However, I believe that this is the exception far more than it is the rule.

In the past 12 to 18 months there has been a marked change in the approach to producing energy however, the continually disjointed nature of the process means that it is difficult to deliver efficient results.

Building regulations will continue to become increasingly onerous and our present methods of construction will make it increasingly challenging to achieve these stretching targets.

Over the past 10 years, the industry has proved that, even when there is plenty of work available, it is reluctant to invest in research and development. The industry shoots itself in the foot when times get tough in that it drives cost down without innovation.

Companies such as Laing O’Rourke have invested massively in research and development however, to continue this they need a considerable level of turnover. As part of the report there were some very nice platitudes from some Ministers stating how important the carbon issue would be to the construction industry.

I do not believe the industry will make this investment itself as it is naturally conservative and fearful of change, and the race for growth without investment is very raw to the industry at present following the spectacular demise of Connaught and Rok.

There is no incentive for the construction industry to invest in reducing energy and certainly if there is no commercial benefit to clients they are unlikely to invest themselves.

For us to get the significant improvements we need in energy performance, the Government needs to legislate to achieve these stretching targets. There will be kickback from the industry claiming the targets cannot be achieved however, this pressure will drive the industry to find ways to solve the problems.

Businesses who respond positively should be rewarded by the legislation and those who don’t should be penalised.

Unfortunately I do not have the answers to how this can be carried out but I do know that without it the industry will continue to progress as it always has done, with organisations continuing to undercut each other to win the next project.

BIM gets rolling

Over the past six weeks the term BIM (Building Information Modelling) has been used more than ever. At _space group, we have been tracking this technology for over 10 years and were converted a long time ago. The construction industry has now started to realise that there may be something in this new technology. The main driver for this change has been the adoption of the approach from client bodies. This includes the Government themselves, following several speeches from Paul Morell, the Government’s construction advisor, who is supporting BIM and confirming that it is the way all public buildings will be procured in the future. Other clients, such as Manchester City Council, have also stated that all future projects will be delivered using BIM.

Once large scale client bodies have made this jump, the rest of the industry will start to wake up to the need to use it, and hopefully, its potential.

Over recent weeks I have been involved in countless discussions, presentations and workshops with construction organisations who want to understand what BIM is all about. My starting point is always the same. BIM is not the answer to everything and there are some pieces of intelligent software available which do assist the process but there is still a need for experience and construction knowledge. The second point I make is that BIM is not only about training a team how to use sophisticated software but, I believe, is a complete cultural change within any organisation. Without decisions being made at the highest level of all businesses, BIM will not work. Procurement processes and contracts all need to be reviewed and re-aligned to this new integrated process.

We are only really at the start of our journey in the UK regarding BIM as several constructors start to realise the potential and need for this new approach. The architectural industry is still way off the pace and continues to fight against the technology. I believe much of this is fear and also arrogance in that many architectural businesses focus very much on the art rather than marketing needs.

The involvement by constructors has been really encouraging, however the understanding at board level still is a long way from delivery on site. Over the next few years we will see some major successes and failures utilising this approach however, I am absolutely convinced that BIM will be universally adopted across the industry and will deliver projects faster, cheaper and better.