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DCD
Design Cost Data™                          July-August 2011 $17.00

     The #1 Industry Source for Actual Square Foot Cost Data




Tenant Build-Outs Going Strong
Taking Budgeting to a New Level with BIM
DCD Industrial Building Cost Analysis




                                                                             InCapital Holdings, LLC
                                                                                 Boca Raton, Florida
                                                                     Architect: Gallo Herbert Lebolo
Taking Budgeting to a
New Level with BIM
By Lori Nash Byron




B
        IM (building information modeling) is moving from buzzword
        to business tool. While not all construction firms routinely use
        BIM software, many of the early adopters are finding new
uses and technologies to solve problems and add value.
    In this article, we’ll look at two cases using “macro” BIM soft-
ware tools to make development go/no go decisions and keep a
target value design on track. Macro BIM is a building information
model, made of higher level building elements. It’s used for macro
level analysis including visualization, spatial validation, cost model-
ing/estimating, phasing/sequencing, energy performance, and risk
analysis. Macro models are meant to be built quickly, to rapidly ana-
lyze multiple concepts before using a more detailed “micro” BIM tool.
Macro BIM authoring tools use parametric variables and inferencing
                                                                           3D model of site master plan created by DProfiler, a macro BIM soft-
capabilities to quickly build enough relevant data for analysis.           ware. Building locations, elevations, orientations and more can be
                   Data Rich Site Master Planning                          changed to evaluate the site and cost impacts.
    Post real estate market crash, savvy owners and construc-              of the site to the south. With only the developer’s napkin sketch,
tion firms have leveraged macro BIM technology to improve their            Myers had to house more than a dozen buildings – retail, office,
ability to evaluate how a particular site matches the intended use         residential, parking structures – on the site. He also had to marry
before the land is purchased. Accurate estimates from general              the site’s proposed network of roads and pathways to the existing
contractors can help an owner to determine whether a project is            transportation network surrounding the site.
viable, at the earliest stage. Using macro BIM applications, owners            Myers first imported the proposed site’s topography from
and developers can quickly evaluate the feasibility and costs of           Google Earth™ into his macro BIM application, set elevations for
building the project on a particular site. There’s also the benefit of     buildings and parking structures and modeled all the structures for
seeing it and better understanding the assumptions the estimate            the virtual site plan. He used the software to estimate the cost of
is based on.                                                               the buildings and the site, computing the grade, cut and fill costs
    The director of preconstruction for a major real estate devel-         and produced a color-coded image illustrating the cut and fill areas
opment company, known for a signature product, says that in his            visually. Nearly 600,000 cubic yards of dirt had to be redistributed
business, the site is critical. “Typically the designers can play around   to balance the site.
with the buildings, elevations and finishes on a project to meet the           Next, Myers explored site planning alternatives, creating virtual
budget, but the site – we can’t control that. It has to be engineered.     scenarios based on building and site item location and orientation,
The sooner we know what the issues are, the better.”                       as well as changes to the building pad and site item elevations.
    Garry Myers is a Senior Construction Estimator for Clark Con-          He advised the owner’s representative on the site’s issues and
struction Company, an ENR Top 400 contractor, headquartered in             related costs for each scenario.
Lansing, Michigan. He has 30 years of estimating experience, and               The outcome? The significant challenges associated with this
spent much of the last ten creating conceptual master planning             site have the developer leaning toward a “no go” decision. The
estimates for major development projects. Myers describes how              developer credits the 3D conceptual cost models with giving him
he uses DProfiler, a macro BIM application from Beck Technology,           the facts to make a fiscally smart decision, quickly. He is also
for preliminary cost estimating of site master plans. “I use DProfiler     making plans to bring the technology in house to improve their
to determine a project’s costs while there’s little information, to help   internal analytics.
the owner make fundamental decisions,” says Myers. “I create                                Fast and Accurate Cost Estimates
high level conceptual models and then experiment with different                       Keep Target Value Design Projects on Track
configurations for the buildings within the site to see what the cost          Target value design (TVD) is a lean construction practice that
ramifications will be.”                                                    incorporates targets such as cost and LEED goals, as factors in
    In early 2010, Myers began work on a proposed $100 million             design upfront to minimize waste and create value. For example,
site development project, creating a conceptual master plan with           rather than designing a project and then determining the cost to
detailed costs that the developer would use to determine whether           build it, TVD methodology establishes a price first, and only then
to move forward with the project.                                          determines what can be designed to fit that price. This cost/de-
    The proposed site was attractive from a market perspective,            sign tension requires that designers, constructors and owners
but posed serious engineering challenges. The 50 acre infill par-          collaborate to evaluate a project's priorities, design features and
cel had dramatic 30-foot elevation changes from the north end              costs continuously, not just at milestones.
14                                                                                                                Design Cost Data /July-August 2011
TVD requires that the design be based on a
detailed estimate. Teams composed of architects,
engineers, and contractors design and construct to
a specific target cost, which can never be exceeded.
The target costs are established for the different
areas of a project, including the site improvements,
building envelope, interior/finishes, vertical transpor-
tation, material handling, structure, and mechanical,
electrical, and plumbing. The targets are adjusted
up and down across the different areas to maintain
the overall project target cost.
     Model-Based Estimating Makes TVD Work
    To design to a detailed estimate, teams must have
a mechanism to quickly evaluate alternate design
concepts and their costs. Major projects could require
new detailed estimates weekly to keep the project on
                                                         Macro BIM software combines real-time cost estimating with 3D visual images of the
target to meet its budget. Macro BIM software solves buildings or site.
one of target value design’s biggest challenges, the                    Hill.”And seeing the model helps us all to avoid errors that can
need to generate fast and accurate detailed estimates for evolving      creep into projects because of misunderstandings.”
designs throughout the life of the project.                                  As BIM technology continues to mature, construction profession-
    Andy Hill, preconstruction manager for the Phoenix office of DPR    als are using it to improve the existing delivery processes. The real-
Construction, is using macro BIM software for rapid cost feedback       time connection between design, cost, and schedule using macro
on a target value design project, a new university building. He says    BIM is taking decision making and budgeting to a new level.
that being able to express the design concepts through a lightweight         About the author: Lori Nash Byron is a freelance writer and
3D model helps the team to communicate the concepts, track the          owner of Practical Magic Marketing.
budget, the changes and the issues clearly and quickly.                      Lori has 20 years experience in the marketing field work-
    “During our project team meetings, I can make some changes          ing in the AEC, technology and financial services sector. Visit
in the model on the fly, and then we can all see it and review the      www.PracticalMagicMarketing.com or email Lori at lori@practi-
cost ramifications. It keeps us clear and on track,” comments           calmagicmarketing.com.




                                                         Circle #109 On Reader Service Card
Design Cost Data /July-August 2011                                                                                                         15

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Budgeting with Macro BIM

  • 1. DCD Design Cost Data™ July-August 2011 $17.00 The #1 Industry Source for Actual Square Foot Cost Data Tenant Build-Outs Going Strong Taking Budgeting to a New Level with BIM DCD Industrial Building Cost Analysis InCapital Holdings, LLC Boca Raton, Florida Architect: Gallo Herbert Lebolo
  • 2. Taking Budgeting to a New Level with BIM By Lori Nash Byron B IM (building information modeling) is moving from buzzword to business tool. While not all construction firms routinely use BIM software, many of the early adopters are finding new uses and technologies to solve problems and add value. In this article, we’ll look at two cases using “macro” BIM soft- ware tools to make development go/no go decisions and keep a target value design on track. Macro BIM is a building information model, made of higher level building elements. It’s used for macro level analysis including visualization, spatial validation, cost model- ing/estimating, phasing/sequencing, energy performance, and risk analysis. Macro models are meant to be built quickly, to rapidly ana- lyze multiple concepts before using a more detailed “micro” BIM tool. Macro BIM authoring tools use parametric variables and inferencing 3D model of site master plan created by DProfiler, a macro BIM soft- capabilities to quickly build enough relevant data for analysis. ware. Building locations, elevations, orientations and more can be Data Rich Site Master Planning changed to evaluate the site and cost impacts. Post real estate market crash, savvy owners and construc- of the site to the south. With only the developer’s napkin sketch, tion firms have leveraged macro BIM technology to improve their Myers had to house more than a dozen buildings – retail, office, ability to evaluate how a particular site matches the intended use residential, parking structures – on the site. He also had to marry before the land is purchased. Accurate estimates from general the site’s proposed network of roads and pathways to the existing contractors can help an owner to determine whether a project is transportation network surrounding the site. viable, at the earliest stage. Using macro BIM applications, owners Myers first imported the proposed site’s topography from and developers can quickly evaluate the feasibility and costs of Google Earth™ into his macro BIM application, set elevations for building the project on a particular site. There’s also the benefit of buildings and parking structures and modeled all the structures for seeing it and better understanding the assumptions the estimate the virtual site plan. He used the software to estimate the cost of is based on. the buildings and the site, computing the grade, cut and fill costs The director of preconstruction for a major real estate devel- and produced a color-coded image illustrating the cut and fill areas opment company, known for a signature product, says that in his visually. Nearly 600,000 cubic yards of dirt had to be redistributed business, the site is critical. “Typically the designers can play around to balance the site. with the buildings, elevations and finishes on a project to meet the Next, Myers explored site planning alternatives, creating virtual budget, but the site – we can’t control that. It has to be engineered. scenarios based on building and site item location and orientation, The sooner we know what the issues are, the better.” as well as changes to the building pad and site item elevations. Garry Myers is a Senior Construction Estimator for Clark Con- He advised the owner’s representative on the site’s issues and struction Company, an ENR Top 400 contractor, headquartered in related costs for each scenario. Lansing, Michigan. He has 30 years of estimating experience, and The outcome? The significant challenges associated with this spent much of the last ten creating conceptual master planning site have the developer leaning toward a “no go” decision. The estimates for major development projects. Myers describes how developer credits the 3D conceptual cost models with giving him he uses DProfiler, a macro BIM application from Beck Technology, the facts to make a fiscally smart decision, quickly. He is also for preliminary cost estimating of site master plans. “I use DProfiler making plans to bring the technology in house to improve their to determine a project’s costs while there’s little information, to help internal analytics. the owner make fundamental decisions,” says Myers. “I create Fast and Accurate Cost Estimates high level conceptual models and then experiment with different Keep Target Value Design Projects on Track configurations for the buildings within the site to see what the cost Target value design (TVD) is a lean construction practice that ramifications will be.” incorporates targets such as cost and LEED goals, as factors in In early 2010, Myers began work on a proposed $100 million design upfront to minimize waste and create value. For example, site development project, creating a conceptual master plan with rather than designing a project and then determining the cost to detailed costs that the developer would use to determine whether build it, TVD methodology establishes a price first, and only then to move forward with the project. determines what can be designed to fit that price. This cost/de- The proposed site was attractive from a market perspective, sign tension requires that designers, constructors and owners but posed serious engineering challenges. The 50 acre infill par- collaborate to evaluate a project's priorities, design features and cel had dramatic 30-foot elevation changes from the north end costs continuously, not just at milestones. 14 Design Cost Data /July-August 2011
  • 3. TVD requires that the design be based on a detailed estimate. Teams composed of architects, engineers, and contractors design and construct to a specific target cost, which can never be exceeded. The target costs are established for the different areas of a project, including the site improvements, building envelope, interior/finishes, vertical transpor- tation, material handling, structure, and mechanical, electrical, and plumbing. The targets are adjusted up and down across the different areas to maintain the overall project target cost. Model-Based Estimating Makes TVD Work To design to a detailed estimate, teams must have a mechanism to quickly evaluate alternate design concepts and their costs. Major projects could require new detailed estimates weekly to keep the project on Macro BIM software combines real-time cost estimating with 3D visual images of the target to meet its budget. Macro BIM software solves buildings or site. one of target value design’s biggest challenges, the Hill.”And seeing the model helps us all to avoid errors that can need to generate fast and accurate detailed estimates for evolving creep into projects because of misunderstandings.” designs throughout the life of the project. As BIM technology continues to mature, construction profession- Andy Hill, preconstruction manager for the Phoenix office of DPR als are using it to improve the existing delivery processes. The real- Construction, is using macro BIM software for rapid cost feedback time connection between design, cost, and schedule using macro on a target value design project, a new university building. He says BIM is taking decision making and budgeting to a new level. that being able to express the design concepts through a lightweight About the author: Lori Nash Byron is a freelance writer and 3D model helps the team to communicate the concepts, track the owner of Practical Magic Marketing. budget, the changes and the issues clearly and quickly. Lori has 20 years experience in the marketing field work- “During our project team meetings, I can make some changes ing in the AEC, technology and financial services sector. Visit in the model on the fly, and then we can all see it and review the www.PracticalMagicMarketing.com or email Lori at lori@practi- cost ramifications. It keeps us clear and on track,” comments calmagicmarketing.com. Circle #109 On Reader Service Card Design Cost Data /July-August 2011 15