Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    Modelling the costs of corporate implementation of building information modelling

    Access Status
    Fulltext not available
    Authors
    Olatunji, Oluwole
    Date
    2011
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Olatunji, O. 2011. Modelling the costs of corporate implementation of building information modelling. Journal of Financial Management of Property and Construction. 16: pp. 211-231.
    Source Title
    Journal of Financial Management of Property and Construction
    ISSN
    1366-4387
    URI
    http://hdl.handle.net/20.500.11937/29556
    Collection
    • Curtin Research Publications
    Abstract

    Purpose – The popularity of Building Information Modelling (BIM) has improved tremendously inrecent years. The business sense it makes to construction small to medium-sized (SME) organizationshas also become vitally important, especially when the deliverables of BIM potentials are becomingmore explicit than they were several years ago. Moreover, there is adequate evidence to suggest thatan early adoption of BIM by construction SME organizations could mean marked sustainable businessadvantage to them. The purpose of this paper is to initiate a long-term study on how BIM triggersmarket improvements in the Australian construction industry, to establish the specific impact of theseon construction industry’s contribution to Australian economy, also to develop a simple model on thecost of implementing BIM in a typical construction SME.Design/methodology/approach – This research relies on evidence from literature to identifydifferent operational models of construction organizations, namely; matrix, divisional, functional andnetworked business models. A definite approach was taken to articulate some contributory conceptsand rationales which drive organizational response to technological changes across the identified fourcategories of organization structure models. Focus group discussion was the primary research methodfor this study, while additional data were collected from public sources. Respondents and data weresourced from two firms selected from each type of organization model. In the end, 24 industrypractitioners from a range of Australian construction SME businesses that provide software andtechnical support services, consultancy and contracting services took part in the study.Findings – Analysis of 32 sample cases revealed that BIM implementation costs were mostly definedby a range of cost variables, including software acquisition and technical support, hardware, training,services and implementation contingencies. On the average, software costs accounted for about55 percent of total implementation costs. This particular cost descriptor was about five to seven timesmore than the cost of hardware (depending on the level of sophistication of operations, expectedimplementation outcomes and whether new hardware were used or existing installation wereupgraded with BIM compliant drivers). The study also found that training cost was a third of softwarecosts, while the average total cost of services, recruitment and contingencies, all added together, wasabout 5 percent of total implementation costs. In the end, a linear model was developed to predict thecost of BIM implementation in construction SMEs.Originality/value – A preliminary version of this study has been presented in the 2010 edition of theInternational Conference on Information Technology in Construction (CIB W078). As a study in a newdirection, it focuses on specific organization models and their unique responses to drivers of change.While other studies have looked into macro implementation of BIM, mostly without considering thepeculiarity and dynamics of organization structure, this study has focused on construction SMEbusinesses offering a wide range of services.

    Related items

    Showing items related by title, author, creator and subject.

    • The dynamics of Guanxi in the business context under China's economic transition
      Nie, Katherine Su (2007)
      Numerous popular business publications and academic literature have highlighted that the Chinese cultural phenomenon of guanxi has made noticeable impacts on the economic efficiency in China’s economic transition. Despite ...
    • Critical issues for the future of the Australian urban water supply industry
      Fazakerley, Victor William (2005)
      This study makes a contribution to the Australian urban water supply industry because it highlights some of the critical issues the industry faces in the future. Through the scenarios it illuminates an alternative method ...
    • Modelling Governance Indicators and Managing e-Business Information Systems
      Nimmagadda, Shastri ; Mani, Neel; Reiners, Torsten; Wood, Lincoln (2020)
      Information Systems are in growing demand in various business and government organizations. Despite increased competition, business growth and technology innovation, at times, we overlook the governance, transparency, ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.