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.

Government Construction Strategy - My Response

The Cabinet Office issued its Construction Strategy yesterday and I have spent the past 24 hours looking through it trying to understand what it means for the industry.

My overriding thoughts are that this is a really welcome strategy, which is long overdue. This government has clearly given consideration as to how it should spend its capital wisely and has pulled together a report which has included collaboration across a number of high level offices within Whitehall, the efficiency and reform group of the Cabinet Office construction sector unit of BIS, as well as Infrastructure UK.

In the past we have suffered from reports which have set out a vision rather than a strategy and plan. This document is different and has some clear, measurable objectives which enable us to move forward as an industry.

Clearly the issuing of the document is only step one and the critical issue now is whether it is adopted by all government departments and becomes central to what the government does.

The focus of the document seems to be very much on internal government procedures and how the government will procure and manage work, and less so on how the construction industry should respond. I believe it is here that the construction industry comes in, and should be capitalising on statements the government has made about benchmarking energy performance and cost, as well as the delivery of all buildings using BIM (Building Information Modelling).

Essentially, the government is setting out its expectations as a client challenging the construction industry, in the same manner as a potential preferred bidder must do, to set out its best response solution.

Traditionally the industry has been very conservative and has not progressed at a pace. Without a doubt, the expectations from government will be high and their benchmarks will be challenging. The industry therefore will have to invest in research, development and innovation. To achieve the levels of capital and revenue cost expected, the industry will have to think completely differently. I anticipate that a kick back from these proposals and only those who are willing to open their mind and think differently will flourish.

Throughout the document there are some very interesting facts and the one that struck me was that there are 300,000 businesses within the construction industry, of which 99.7% are SMEs with over 2 million workers, so clearly the fragmented nature of the industry will cause a problem in generating a holistic response.

The government is intending to establish a board which will be the centre point of this strategy and will communicate with all government departments. This is a much needed initiative in an industry that is so fragmented and does not yet speak with a single voice, so hopefully this will give clarity and direction to the industry.

It is interesting to see that the government has used the terms ‘standardised’ and ‘mass customised product’ in the report. Many organisations and individuals in the industry have fought against such an approach but the government’s advocacy of it is a clear indication of their intention to encourage the construction industry to move forward in this vein.

Another interesting addition is the fact that there is now a linkage between those who design and construct a facility and those who subsequently occupy and manage. Usually this linkage has not existed in any particular way and hopefully with the adoption of BIM the benefits will easily be demonstrated in the savings to revenue.

Across the action plan there are some very straightforward, yet important aspects which will make a considerable difference to the efficiency of the industry. There is a proposal to look at standardised Pre-Qualification Questionnaires (PQQs), such as PAS 91, as well as the potential of standardised procurement and contracts, something not currently prevalent within the industry.

Whilst BSF has been much maligned for its expensive approach, some of the information gained from the initiative was positive and has helped to inform policy. Clearly the idea of another forward plan of capital expenditure is a positive one, and it will allow organisations to invest long term and demonstrate value to client departments.

There also seems to be a willingness to ensure that the correct skills of procurement and management of projects are in place across the public sector, and as long as the individuals with these skills are sourced properly, their presence will ensure continuous learning and realistic expectations.

The idea of having structured cost targets and value criteria is also to be applauded. By collecting data and benchmarking, league tables can be identified and this in turn will help to develop the industry positively. The Movement for Innovation Programme was a good method of demonstrating the best in industry and provided some excellent benchmark data.

As an early adopter of BIM, _space group is pleased to see it mentioned within the strategy. The government clearly recognises the benefit that it will now receive as a client and will legitimise the approach across the construction industry. It is also interesting to see that integrated project insurance has also been considered and will be researched in greater detail in the future.

Overall I think this document clearly sets out what the government will be expecting from the construction industry over the next four years and will encourage a refreshing approach within the industry.

As the government is the single biggest client to the construction industry, spending around £41billion per annum, the industry has no excuse not to respond and achieve the benchmark targets which the government has set out in this report.

I am encouraged to see the report and it gives me hope for a better industry. However I am very realistic about the reticence that there will be across many organisations to adopt some of the proposals made in the report, and that this continues to be a tough time for the construction industry, one that will see many businesses stand or fall based on their decisions over the coming months and years.

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 big housing question

I have been inspired to write this blog entry following a recent episode of Panorama. The programme was all about the need for affordable housing across the UK. There was a shocking contrast of housing in London which was fraudulently being let by landlords at extortionate rates and a family of 9 in Sheffield living in a 3 bedroom house.

There are around 5 million people on the housing waiting list in the UK and it was clear that the majority of people on this waiting list have no chance of being housed. During the show, Portsmouth Council went through their own list contacting most of the people on it, informing them that there was no chance of them ever being housed by the Authority. This meant that they cut their list considerably.

The big question however, is what happens to the people who will never be housed?

We have been developing Spacehus as a potential product for this market and we have managed to get a 3 bedroom house at an all in cost of around £84k on a small development. The running costs of this house would be around £10 per week which also would go some way to address fuel poverty.

A concept image of the £84k Spacehus that could help solve the affordable housing issue

The challenge is however, encouraging RSLs to develop. I have spent the last few months talking to many RSLs, and there is not ability or desire to develop new homes. This therefore means that the market is stagnant, so as no improvement is being made in relation to the waiting list, we face the problem of it getting longer.

It seems the reasons the RSLs are reluctant to develop is that they have been familiar with the grant process and the Government is now encouraging to change models and progress with an affordable rent model, which seems to increase their risk considerably in the longer term. All the details are not clear at present and I hope that I can dig deeper to understand what the problem is and to try and find a way around the challenges and encourage take up.

It does seem however, that there is a standoff between the Government and Social Landlords, meaning that we have a growing housing crisis in the UK.

Land values continue to be unrealistic and planning continues to be challenging. Both of these are preventing private sector involvement, putting the market in stalemate.

I still remain convinced, with my entrepreneurial hat on, that there is a need for housing which is affordable to buy or rent and run. At _space group we will continue to invest in finding a solution to this problem, until we find a way of getting affordable sustainable homes delivered.

For a number of years, we at _space group we have been driven by the purpose of making life better. After watching Panorama, I am sure that if we manage to crack this problem we will definitely make life better for the family in Sheffield who are currently sleeping on the settee.

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.

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.