Research

June 2019
BIM Execution Framework
for early-stage estimating
in PPP projects

rics.org/research
 BIM Execution Framework
for early-stage estimating
in PPP projects

2 © RICS Research 2019

 rics.org/research

BIM Execution Framework

for early-stage estimating
in PPP projects

Report written by:

Professor Srinath Perera
Chair of Built Environment & Construction Management
Director for Centre for Smart Modern Construction,
Western Sydney University, Australia

Sadhana De Silva
Chartered Quantity Surveyor and Researcher, Australia

Dr Robert Osei-Kyei
Lecture in Project Management, Western Sydney University,
Australia

Professor Yilin Yin

Tianjin University of Technology, China

Dr Lei Zhou
Chairman, Shanghai Dragonboat Investment Management Co., Ltd,
China

Dr Xiaohua Jin
Senior Lecturer in Project Management, Western Sydney
University, Australia

Dr Nirodha Fernando
Lecturer, University of Salford, UK

Dr Solomon Babatunde
Lecturer, Obafemi Awolowo University, Nigeria

Dr Yingbin Feng
Senior Lecturer in Quantity Surveying, Western Sydney University,
Australia

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 BIM Execution Framework for early-stage estimating in PPP projects

Research Team:
Dr Qijuan Liu
Tianjin University of Technology, China

Mr Qian Liu
Glodon Company Limited

Mr Bingbing Zhang
Glodon Company Limited

Research Funders
RICS Research Trust, UK
Glodon Company Ltd., China

RICS Research Team

Katherine Pitman
Global Research Programme Manager
[email protected]

Steven Matz
Global Research Assistant
Study sponsored by : [email protected]

Fabrizio Varriale
Global Research Assistant
[email protected]

Published by the Royal Institution of Chartered Surveyors (RICS)

RICS, Parliament Square, London SW1P 3AD
www.rics.org
The views expressed by the authors are not necessarily those of RICS nor any body
connected with RICS. Neither the authors, nor RICS accept any liability arising from
the use of this publication.
All rights reserved. No part of this publication may be reproduced or transmitted in any
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charity established by RICS in 1955 information storage and retrieval system, without permission in writing from the publisher.
to support research and education
in the field of surveying. Copyright RICS 2019

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Contents
Executive summary......................................................................................................9
1.0 Introduction...................................................................................................12
2.0 Methodology..................................................................................................13
3.0 Overview of the Public Private Partnership concept............15
3.1 PPP process and models...................................................................15
3.2 Cost estimating practices in PPP....................................................17
3.2.1 Estimating for PPP projects in the UK............................................17
3.2.2 Use of estimating in PPP projects in Australia.............................18
3.2.3 Use of estimating in PPP projects in China...................................19

4.0 BIM-enabled cost estimating for PPP projects........................20

4.1 BIM-enabled estimating for general construction projects.....20
4.2 BIM-enabled estimating for PPP projects.....................................22
4.3 Contractual measures facilitating BIM-based
management of PPP projects..........................................................22
4.3.1 Issues in the UK...................................................................................23
4.3.2 Issues in Australia...............................................................................23
4.3.3 Issues in China.....................................................................................24

5.0 Organisational practice case studies.............................................25

5.1 Cost estimating process used in PPP projects in the UK...........26
5.1.1 Cost estimating process used at PPP phases..............................26
5.1.2 Dealing with differences between cost estimates
prepared at PPP phases and negotiations....................................26
5.1.3 Extent of computer usage in the estimating process................26
5.1.4 BIM application in estimating for PPP projects
(project level/enterprise level)........................................................26
5.1.5 BIM-enabled estimating practice in PPP projects
(Industry level)....................................................................................27
5.2 Cost estimating process used in PPP projects in Australia......28
5.2.1 Cost estimating process used at PPP phases..............................28
5.2.2 Dealing with differences between cost estimates
prepared at PPP phases and negotiations....................................28
5.2.3 Extent of computer usage in the estimating process................28
5.2.4 BIM application in estimating for PPP projects
(project level/enterprise level)........................................................28
5.2.5 BIM-enabled estimating practice in PPP projects
(industry level)....................................................................................29
5.3 Cost estimating process used in PPP projects in China............30
5.3.1 Cost estimating process used at PPP phases..............................30
5.3.2 Dealing with differences between cost estimates
prepared at PPP phases and negotiations....................................30
5.3.3 Extent of computer usage in the estimating process................31
5.3.4 BIM application in estimating for PPP projects
(project level/enterprise level)........................................................31
5.3.5 BIM-enabled estimating practice in PPP projects
(industry level)....................................................................................32
5.4 Comparative analysis of estimating practice in PPP
projects in the UK, Australia and China..........................................32

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 BIM Execution Framework for early-stage estimating in PPP projects

6.0 Process protocol model for BIM-enabled cost

estimating in PPP projects...................................................................33
6.1 Early-stage cost estimating practice in PPP project
delivery process..................................................................................33
6.2 Final process protocol model for BIM-enabled estimating.......33
6.2.1 The usage of the process protocol model for BIM-enabled
estimating.............................................................................................37
6.2.2 Validation of model.............................................................................38
6.2.3 Validating the model amendments and the final model.............39

7.0 BIM Execution Framework for estimating

in PPP projects.............................................................................................40
7.1 Drivers and barriers for BIM-enabled estimating
practice in PPP Projects....................................................................40
7.1.1 Drivers for implementing BIM-enabled estimating
practice in PPP in the UK, Australia and China.............................41
7.1.2 Barriers to the adoption of BIM-enabled estimating
practice in the UK, Australia and China..........................................46
7.2 Best practices in BIM-enabled estimating for
PPP projects.........................................................................................51

8.0 Conclusions....................................................................................................53
8.1 PPP projects and the state of construction industry.................53
8.2 Main research findings......................................................................53
8.3 Recommendations.............................................................................54

9.0 References.....................................................................................................55
10.0 Acknowledgements...................................................................................57

List of Figures
Figure 1 Research method.....................................................................................13
Figure 2 Phases of PPP delivery process............................................................16
Figure 3 PPP models................................................................................................17
Figure 4 Traditional vs. BIM estimating method................................................21
Figure 5 Process protocol model for BIM-enabled estimating of
capital construction cost of PPP projects.........................................34

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List of Tables
Table 2.1 Expert information..................................................................................14
Table 5.1 Status of cost estimating in PPP projects (UK)................................26
Table 5.2 Status of BIM-enabled cost estimating at early stages of
PPP projects (UK)....................................................................................27
Table 5.3 Status of BIM-enabled estimating practice in PPP projects
at industry level (UK)...............................................................................27
Table 5.4 Status of cost estimating in PPP projects (Australia)....................28
Table 5.5 Status of BIM-enabled cost estimating at early stages of
PPP projects (Australia).........................................................................29
Table 5.6 Status of cost estimating in PPP projects at industry level
(Australia)..................................................................................................29
Table 5.7 Status of cost estimating in PPP projects (China)...........................30
Table 5.8 Status of BIM-enabled cost estimating at early stages of
PPP projects (China)...............................................................................31
Table 5.9 Status of cost estimating in PPP projects at industry level
(China)........................................................................................................32
Table 6.1 Definition of terms for process protocol model for
BIM-enabled estimating projects........................................................35
Table 6.2 Guidelines on using the model...............................................................37
Table 6.3 Extent of agreement results on overall satisfaction
(Expert Forum Round – 1 Outcome)....................................................38
Table 6.4 Results on extent of agreement on model update...........................39
Table 7.1 Ranking of drivers by UK PPP experts.................................................41
Table 7.2 Ranking of drivers by Australia PPP experts.....................................42
Table 7.3 Ranking of drivers by China PPP experts............................................43
Table 7.4 Ranking of drivers by all respondents
(UK, Australia and China).......................................................................44
Table 7.5 Validation results of overall top 5 rankings of drivers for
implementing BIM-enabled estimating practice in PPP.................45
Table 7.6 Ranking of barriers by UK PPP experts...............................................46
Table 7.7 Ranking of barriers by Australia PPP experts....................................47
Table 7.8 Ranking of barriers by China PPP experts..........................................48
Table 7.9 Rankings of barriers by all respondents.............................................49
Table 7.10 Validation results of overall top 5 rankings of barriers for
implementing BIM-enabled estimating practice in PPP.................50
Table 7.11 Best practices in BIM-enabled estimating for PPP
projects and their country-specific rankings....................................51

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 BIM Execution Framework for early-stage estimating in PPP projects

Abbreviations
AEC Architecture Engineering and Construction
AFC Anticipated Final Cost
AIQS Australian Institute of Quantity Surveyors
BEFEP BIM Execution Framework for Estimating in PPP projects
BEP BIM Execution Plan
BIM Building Information Modelling
BLT Build-Lease-Transfer
BOO Build-Own-Operate
BOOT Build-Own-Operate-Transfer
BOT Build-Operate-Transfer
BQ Bills of Quantity
BTO Build-Transfer-Operate
CECA China Engineering Cost Association
CIC Computer Integrated Construction
CPPPC Social Capital Cooperation Centre
DBFO Design Build Finance Operate
DBOM Design Build Operate Maintenance
DIT Department of Infrastructure and Transport
ECOSOC United Nations Economic and Social Council (French Abbreviation)
EOI Expression of Interest
EPC Engineering, procurement and construction
GC21 General Conditions of Contract 21
GDP Gross Domestic Product
HM Her Majesty’s
IBC Institute for BIM Canada
NATSPEC National Building Specification
NDRC National Development and Reform Commission
NRM New Rules of Management
NZIQS New Zealand Institute of Quantity Surveyors
OECD Organisation of Economic Development and Co-operation
PFI Private Finance Initiative
PPP Public Private Partnerships
PSC Public Sector Comparator
QS Quantity Surveying
RFP Request for Proposal
RICS Royal Institution of Chartered Surveyors
ROT Rehabilitate-Operate-Transfer
UK United Kingdom
VfM Value for Money

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Executive summary

The use of Public Private Partnerships (PPP) as the vehicle The key advantages were efficient process of design and
to procure large-scale social and physical infrastructure estimating through reductions in time, clash detection,
projects is becoming increasingly deployed around the ease of dealing with changes and analysing their impact,
globe. This international study evaluated the use of PPP increased speed of decision-making, and visualisation,
procurement in the UK, Australia and China as three of among others.
the most mature and rapidly developing users of the PPP
The challenges were the scarcity of skilled personnel
procurement route. It focused on the ways of improving
who have knowledge and experience in using BIM
digitalisation in PPP procurement with the use of Building
and in particular for estimating, absence of a standard
Information Modelling (BIM) and its impact on early-stage
guideline for use of BIM for estimating purposes, software
estimating. This research aimed at developing an execution
integrations issues, and lack of client appetite to develop
framework for BIM-enabled early-stage estimating for PPP
BIM models (or spend for it), among others.
procured projects, learning from the situations in these three
most advanced user countries. The expectation is that such The recommendations that flow from these include: greater
a framework will also help the rapidly developing countries, levels of industry-wide training of personnel, universities and
who are increasingly reliant of PPP types of procurement. tertiary education establishments focusing on more training,
development of BIM-related estimating standards, and
The construction industry although contributing over US$10
policy level government led support (as in the case of the
trillion per annum and having 13% of global GDP is one
UK mandating level 2 BIM for public sector projects over
of the least digitalised industries (McKinsey, 2017). The
£16m). It is recommended that BIM adoption especially
past decade saw the dawn of the 4th Industrial Revolution
for estimating purposes should occur at the Project
exacerbating the need for digitalisation of the construction
Development Phase to Request for Proposal (RFP) Phase
industry, which is facing global challenges. BIM has been
where PPP consortia can implement BIM models in their
the answer of the construction industry to achieve this step
bids that would include the first generation of BIM-enabled
change although the proliferation of the FinTech sector is an
estimates for the project.
imminent addition in the decade to come. There are varying
levels of adoption of BIM in the construction industry in the This report proposes an execution framework for BIM-
three countries examined, with the UK having the lead with enabled early-stage estimating in PPP projects with three
the most mature levels of adoption and use, followed by primary components:
China and Australia.
1. Process protocol model for BIM-enabled early-stage
The research examined the practice of estimating in PPP estimating in PPP projects (Section 6.2)
projects in these three countries and concluded that there 2. Drivers and barriers for BIM-enabled early-stage
are growing similarities in the perception of advantages, estimating that should be considered (Section 7.1)
challenges and recommendations that make for the greater
adoption of BIM-enabled estimating for PPP projects. 3. Best practice guidelines for adopting BIM-enabled
early-stage estimating in PPP projects (Section 7.2)

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 BIM Execution Framework for early-stage estimating in PPP projects

The process protocol model (Figure 5 on page 34) is the These had cross-board acceptance from all six
main component that provides step by step guidance on international experts.
how to integrate BIM-enabled estimating at early stages
Barriers for the adoption of BIM-enabled estimating
of PPP projects. This model helps in developing a BIM
at early stages of PPP projects were defined as the
Execution Plan (BEP) for the project. Project managers,
inhibitors that discourage the use of BIM-enabled
cost managers and BIM managers involved in the project
estimating. Understanding barriers that apply to each
should use this proposed process protocol as the basis of
country is important so that adequate steps can be
a considered and systematic adoption of BIM for estimating
taken to eliminate such.
purposes. In adopting the process protocol, one should
consider the estimating practice of the country concerned. The top three barriers identified in the UK were:
For example, in the UK, the New Rules of Management Technological issues, followed by Inadequate relevant
(NRM 1) developed by the Royal Institution of Chartered knowledge and expertise in using BIM and Poor
Surveyors (RICS, 2012a & b) should be considered, while in information sharing and collaboration issues.
Australia, estimating guidelines produced by the Australian
The top three barriers in Australia were: Inadequate
Institute of Quantity Surveyors (AIQS) can be considered.
relevant knowledge and expertise at the top, followed
Similarly, in China, the China Engineering Cost Association
by Cultural resistance for using new technologies
(CECA) has detailed guidance on developing estimates
like BIM and Incompatibility between BIM data and
using its index or quota-based systems that should be
standard practices.
considered. The process protocol is designed in a generic
manner enabling easy adoption to fit individual country- The barriers identified in China were very much similar to
specific requirements. It is also accompanied by a table what was identified in the UK and Australia where the top
that defines and describes each of the terms in the protocol three were: Technological issues, at the top followed
(Table 6.1) followed by guidance notes for implementation by Inadequate relevant knowledge and expertise in
(Table 6.2). using BIM, and Implementing BIM is expensive/Cost
overrun with BIM respectively.
Understanding the drivers and barriers for BIM-enabled
estimating at early stages of PPP projects is vital for the There were six barriers identified at the top for all countries.
successful implementation of the process protocol. Drivers These were: Inadequate relevant knowledge and
are the factors that encourage and enhance the adoption of expertise in using BIM, which was clearly at the top.
BIM for early-stage estimating. Though, both second and third ranked barriers did not have
full consensus they were in overall terms: Technological
The top three drivers for the UK were: Government
issues and Low quality of BIM data. The fourth ranked
pressure towards better practices was top, followed
barrier, Incompatibility between BIM data and standard
by Easier communication and collaboration between
practices did have full consensus of all experts. Two
all stakeholders. Both Cost savings and increased
barriers were jointly ranked fifth by all experts: Cultural
efficiency in monitoring with reduction of requests
resistance for using new technologies like BIM and
for information and Greater access to information,
Liability issues including professional licensing,
enabling earlier input into feasibility, planning, design,
design liability and vulnerability to changes of BIM
costs and environmental assessment were the joint third
by unauthorised parties.
most important driver.
The third key component of the framework is the best
In Australia, the top three Drivers were: Desire for
practice guide for BIM-enabled estimating (Table 7.11) at the
innovation to remain competitive at the top spot
early stages of a PPP procured project. The guide identifies
indicating commercial pressures, followed by Accurate
seventeen aspects that BIM managers, project managers
construction sequencing and clash detection and Time
and cost managers should consider in implementing the
savings in the preparation of cost estimates respectively.
process protocol proposed. These are categorised into
The situation in China especially at the top was similar Process, Practice and Policy, covering the three main areas
to Australia with Desire for innovation to remain of concerns for implementing BIM-enabled estimating. The
competitive being considered the top driver, followed by Process category contains the measures that practitioners
Improving the capacity to provide whole life value to need to carefully consider when they are in the process
client and Facilitating increased pre-fabrication with of using the BIM for early-stage estimating. The second
information-rich BIM. It is interesting to see the emphasis category, Practice consists of practice that ensures the
China puts on prefabrication here. overall management of the use of BIM in early-stage
estimating in PPP projects. This informs practitioners of
The top four drivers for all countries were: Desire
the measures to take into consideration when drafting PPP
for innovation to remain competitive, Accurate
contracts and a BIM Execution Plan. The third category,
construction sequencing and clash detection,
Policy provides measures on how governments and
Improving the capacity to provide whole life value
external stakeholders could help to facilitate the use of BIM
to client, and Client/Competitive pressure respectively.
in early-stage estimating in PPP projects.

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The report strongly advocates the adoption of the

following recommendations to help in the digitalisation
processes of the construction industry. Construction
procurement is the area that is least digitalised and
that inhibits the integration of digitalisation in the vastly
complex and fragmented construction industry.

The main recommendations are:

1. Adopt the BIM Execution Framework proposed
in this report and integrate it with the cost
management processes of each respective country.
2. Start to implement the use of BIM during the
Project Development Phase to Request for
Proposals (RFP) phase of PPP projects.
3. Encourage or mandate the use of BIM and
BIM-enabled estimates for consortia bids in
PPP projects.
4. Develop country-specific standards for BIM-
enabled estimating based on the process
protocol proposed.
5. Use the guidelines provided through drivers
and barriers for BIM-enabled estimating in
developing BIM Execution Plans for projects.
6. Use the best practice guide as a document
providing guidance and a checklist in writing
BIM Execution Plans for PPP projects.
7. Take steps in educating the workforce on
BIM-enabled estimating with necessary
training and academic programmes.
8. Encourage public authorities and construction
clients to mandate BIM for projects considering
the long-term benefits that it generates for
PPP projects.
9. Governments to take action to mandate use
of BIM in PPP-type of public sector projects
considering the successes of the lead taken by
the UK government in this respect.
10. Explore the impact and possibilities of
complementary digitalisation technologies such
as blockchain, Internet of Things and big data
analytics in achieving greater levels of digitalisation
in estimating and overall construction procurement.

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 BIM Execution Framework for early-stage estimating in PPP projects

1.0 Introduction
Satisfying clients’ requirements has been the focal point BIM, which is the platform for an integrated project
of landmark reports since the publications of Sir Michael delivery approach, can add value to PPP projects by
Latham’s report (Latham, 1994) and Sir John Egan’s providing an established medium for collaboration and
report (Egan, 1998). For instance, over the years, the information sharing among the stakeholders (Laishram,
construction industry has been criticised for its poor 2013). McArthur and Sun (2015) affirmed that PPPs are
performance by both government and institutional now becoming an increasingly popular procurement
reports across the globe. The recent report published method and are highly challenging as they require the
by McKinsey (2017) on the global construction industry collaboration of the designers, constructors and operators
shows global construction productivity improving at the from the earliest stage of the project, with each having a
low rate of 1% compared to manufacturing at 3.6%. The particular perspective. Therefore, balancing the conflicting
situation is worse in the case of digitalisation where the needs and identifying where they align are critical steps
construction industry is lacking behind all other industries in project planning (McArthur and Sun, 2015). Hence,
except agriculture. This is corroborated by Ashworth using BIM in PPP projects can provide substantial benefits
and Perera (2015) and Elmualim and Gilder (2014) that to the project team by facilitating the information flow
fragmentation exists in the division of obligation between between stakeholders, minimising duplication of efforts
the professions, professionals and contractors. These are and allowing the team to make informed decisions to
the basis of the ill-disposed culture between contractors, optimise the project over its lifecycle.
subcontractors, suppliers and their clients. The main
Relevant previous works, especially by Laishram (2011)
goal within the construction industry is to deliver a well-
explored the hurdles in the implementation of BIM to
designed, quality product to meet clients’ requirements,
manage the construction projects procured through
on time and within budget. Be that as it may, a large
PPPs. Ganah and John (2013) examined the suitability of
proportion of construction projects fail to achieve client
BIM for enhancing value for money (VfM) in PPP projects.
satisfaction. For example, according to Egan’s report,
McArthur and Sun (2015) reviewed the best practices for
in the UK around 30% of construction projects, usually
using BIM in PPP projects among others. Despite these
buildings, fail to meet clients’ requirements in terms of
previous studies, there is a dearth of efforts at exploring the
quality (Cunningham, 2013). It is against this backdrop that
application of BIM to early-stage cost estimating for PPP
many researchers advocate Building Information Modelling
projects. Thus, research on the integration of BIM into early-
(BIM) as the panacea and a genuinely necessary change
stage cost estimating for PPP projects is a timely need. It
in the construction industry. BIM has certainly created a
is on this premise that this research becomes imperative
clamour in the construction industry to shift the way that
with a view to developing the best practice framework for
design and construction documents are produced and
BIM-enabled early stage cost estimating for PPP projects in
communicated. In joining developed countries like the US
order to enhance value for money in PPP projects.
and those in Scandinavia where high-level adoption of BIM
is found, the UK government mandated the use of BIM This research aims to achieve the following:
by September 2016, for all those involved in larger-scale
• Review methods of estimating practised in early-stage
public sector projects.
estimating for PPP projects
BIM has received much attention in the management • Explore application of BIM to early-stage estimating
of infrastructure projects delivery with the possibility
to change the traditional construction practices. For • Analyse best practice in estimating and use of BIM
instance, a number of earlier researchers have alluded to for estimating
the benefits of BIM, such as reduction in design errors, • Evaluate drivers and barriers for BIM-enabled
reduction in project time and cost, better production early-stage estimating in PPP projects
quality, lifecycle data management, and an integrated
• Develop an execution framework for BIM-enabled
project delivery approach that encourages collaboration
early-stage estimating
among different stakeholders to the project over its
lifecycle (Ashworth and Perera, 2018). Public Private The next section identifies the approach used to achieve
Partnerships (PPPs) are exceptionally complex contractual these aims.
arrangements evolved to manage different risks
associated with projects by assigning the responsibilities
to various project stakeholders. Increasingly, governments
around the world consider PPP as an option of choice
for large-scale physical and social infrastructure projects.

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2.0 Methodology
The research methodology consists of a literature review, The case studies phase of the research involved primary
organisational case studies and Delphi-based expert data gathering through case study interviews identifying
forum. These qualitative methods enable the research organisational practice of early-stage estimating and the
to capture the state of BIM-enabled estimating in PPP level of use of BIM. It enabled the research to identify
projects at an in-depth and comprehensive level enabling best practice, as well as identify weaknesses that
a holistic view. The overview of the research method is require improvement leading to drivers and barriers.
provided in Figure 1. The conceptual process model established was further
developed and reviewed in this phase.
The research data was gathered from three partner
countries: UK, Australia, and China. Each country was The final phase of the research involved the formation of
represented by a project team that investigated the an Expert Forum consisting of six international experts
use of PPP, the early-stage estimating processes and in PPP and estimating. The forum included two experts
the level of use of BIM in PPP projects for the three from each country as indicated in Table 2.1. It enabled the
countries. Information gathered was collated and analysed research to capture the knowledge and experience of the
subsequently to develop the framework. experts in PPP and BIM. The expert forum was conducted
in two stages where drivers and barriers for adoption
The literature review was initially used to conceptualise
of BIM for estimating in PPP projects were reviewed
the state of early-stage estimating in PPP projects and the
and refined. It further enabled the research to refine
use of BIM in general. The first stage of the review was
and validate the process model developed at the case
to develop a greater understanding of the PPP process
studies phase and to finalise the framework. The final BIM
and stages involved and the role of estimators at different
Execution Framework consists of drivers and barriers for
stages. This was followed by a review of BIM and the level
BIM adoption in early-stage estimating in PPP projects, a
of use in general. Subsequently, drivers and barriers for
detailed model for executing BIM-enabled estimating and
the adoption of BIM were investigated. This stage helped
a set of best practice guidelines.
in conceptualising a process model for BIM-enabled
estimating in PPP projects. The next section of the report examines the estimating
process in PPP projects and the issues related to use
of BIM.

Figure 1 Research method

Literature • Conceptual model

review • Drivers & barriers

Case • Development of the model

studies • Framework

• Final framework
Expert
– Model
forum
– Drivers & barriers
– Best practice

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 BIM Execution Framework for early-stage estimating in PPP projects

Table 2.1 Expert information

Years of
Country Designation Qualifications experience
UK Expert 1 Associate Professor in BIM & Digital Technologies, MSc in Information 15 years in academia,
Research Fellow Technology in Property construction industry
and Construction research and advisory
PhD (Computer-Aided-
Learning in Building
Pathology)

Expert 2 Construction Manager /Group CEO International, PGCert APL, FCIOB, 42 years in construction
The Chairperson of a professional institution FCMI, FIoD, FHEA, EURBE industry

Australia Expert 1 Senior Cost Planner of a leading international B App Science in 32 years in
property and infrastructure company involved in Building, OAM, FAIB construction industry,
PPP procurement and academia

Expert 2 Co-founder of a quantity surveying technology B App Science in 35 years in the

software company and an advocate for BIM as Quantity Surveying construction and IT
chair of a ‘Smart’ building association software industries

China Expert 1 Vice General Manager of an engineering company, PhD, MSc (Mgmt), BEng 12 years in construction
General Secretary of a municipal association, industry specialising
Deputy Dean, (PPP research Centre) of a university in PPP

Expert 2 Consultant to the World Bank OECD and the B.Eng., M.Eng., M.Fin. 20 years in construction
ECOSOC of the United Nations; and PhD industry, research and
Advisor to the Ministry of Finance of China, the academia
State Development and Reform Commission and
many local governments in China on PPP

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3.0 Overview of the Public Private

Partnership concept
It is widely recognised that infrastructure is an enabler project are estimated. The next stage is the expression
for developing an economy, and that vast segments of of interest phase. At this stage, the private sector bidders
existing infrastructure in the developed world are becoming submit their preliminary proposal for consideration by
deficient. The unfolding impacts of climate change and the public authority. After this stage, the request for the
population increase are putting a strain on countries and detailed proposal follows. At this stage the private sector
their aging infrastructure (Petru, 2014). Countries across bidder submits a detailed proposal for evaluation by the
the globe need to construct new transit systems, roads public authority. The negotiation and completion phase is
and utilities or modernise their aging infrastructure to adapt where the preferred private sector bidder is selected, and
to the changing climate, reduce carbon emissions and detail contract terms including the sharing of risks and
support growing populations. Thus, global infrastructure responsibilities are agreed. Contract management is the
requirements could involve expenditure totalling US$50 last stage, where the private sector bidder takes over the
trillion in the period up to 2030 (The City UK, 2014). While management of the contract and project.
meeting this demand, public finances in many countries
There are two forms of models that are widely used by
face major constraints that could result in private sector
governments for the development of public infrastructure
finance playing a key role in bridging the gap. Being aware
facilities and services. These are: (1) a finance-based
of this, led the UK to revolutionise the delivery of public
approach that is aimed at using private finance to meet
infrastructure using Private Finance Initiative/Public Private
infrastructure needs; and (2) a service-based approach
Partnership (PFI/PPP). Today, the UK is considered one
that is aimed at optimising the time and cost efficiencies in
of the most mature in PPPs, though recent years saw
service delivery (Aziz, 2007). The first model relies on user
the decline of use after the introduction of the Private
fees and project demand to fund projects. For example,
Finance Initiative 2. HM Treasury (2014) reported that as
the earliest types of PPP were mostly finance-based and
at 31 March 2014, there were 728 PFI projects, of which
included Build-Operate-Transfer (BOT), Build-Transfer-
671 were operational in the UK with a total capital value of
Operate (BTO), and Build-Own-Operate (BOO) models
£56.6 billion. Currently, the success of PPP procurement
(Zhang and Kumaraswamy, 2001).
recorded in countries like the UK and Australia has been
witnessed by the world. In Australia, since the late 1990s The second model is service based, which is aimed at
PPP procurement started growing rapidly as an alternative using the skills, innovations, and management of the
public procurement mechanism and has since been private sector in optimising the time and cost efficiencies
used for a wide range of projects such as infrastructure, in service delivery. A good example of this approach is
utilities, health and correctional services (Siddiquee, 2011). the Design-Build-Finance-Operate (DBFO) arrangement.
It is evident that PPPs have made significant impacts Under this model, projects are funded mainly through
worldwide in public infrastructure development and are government sources, with or without user fees, while still
now used in over 40 countries. using private financing. Similarly, several arrangements of
PPPs have been used including the Build-Operate-Transfer
3.1 PPP process and models (BOT) model, which is most often cited when referring to
PPPs, and its variants including Design-Build-Operate-
PPPs are used when the public sector requires a private Maintain (DBOM), Build-Own-Operate (BOO), Build-Own-
sector partner to design, build, finance, maintain, and Operate-Transfer (BOOT), Design-Build-Finance-Operate
perhaps operate, a public infrastructure. It covers all (DBFO), Rehabilitate-Operate-Transfer (ROT), and Build-
types of collaboration to share risk and deliver policies, Lease-Transfer (BLT) among others. Figure 3 indicates the
services and infrastructure. Figure 2 shows the delivery PPP models with the level of private sector responsibility.
process of PPP projects. The PPP procurement process
involves five major stages. At every stage there are several
interrelated activities. The process starts from the project
development phase. It is at this stage that cost estimating
is performed. Detailed lifecycle costs of the proposed

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 BIM Execution Framework for early-stage estimating in PPP projects

Figure 2 Phases of PPP delivery process

Approval of project
investment and
procurement

Phases of PPP delivery

Key steps:
• Assemble resources
Project • Develop a project plan
Development
Phase • Develop a probity plan
• Commence key works streams
• Private sector interface

Key steps:
• Develop invitation for EOI
Approval to Expressions
invite expressions • Obtain approval to release
of Interest
the EOI
of interest Phase
• Release invitation for EOI
• Evaluate EOI responses
• Shortlist bidders

Key steps:
Approval to issue Request for • RFP development phase
an RFP to shortlisted Proposal – Develop RFP documentation
Phase
bidders – Seek approval to release
• RFP bid phase
• RFP evaluation phase
• Selection of preferred bidder

Approval
of preferred
bidder Key steps:
• Establish then negotiating team
• Set the negotiation framework
• Report to government
• Contract close/execution
Negotiation • Financial close
and Completion
Phase

Key steps:
• Formalise management
responsibilities
• Monitor project delivery
• Manage variations
Approval • Monitor the service outputs
to execute Contract • Maintain the integrity of
Management the contract
a contract

Source: Commonwealth of Australia (2016) National Public Private Partnership Guidelines – Vol. 2: Practitioners Guide, 2015, Department of Infrastructure
and Regional Development, Canberra, Australia

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Figure 3 PPP models

Divestiture

Build – Own – Operate

Greater private sector control

Design – Build – Finance – Maintain – Operate

Design – Build – Finance – Maintain

PPP Models
Build – Operate – Transfer

Build – Lease – Transfer

Build – Transfer

Design – Bid – Build

Greater private sector risk assumed

Figure source: Adapted from Siemiatycki, 2012, p. 5

3.2 Cost estimating practices process involves diverse stakeholders working on

separate information pools, thus, with the use of BIM,
in PPP different views of the project are unified to a common
platform, which will enable all stakeholders to effectively
At the early stages of PPP projects, costs are estimated exchange the same information and work collaboratively
by both the public and private sectors. Specifically, the (Smith, 2014).
stage at which estimating for PPP projects costs takes
place depends on the project party i.e. public or private 3.2.1 Estimating for PPP projects in the UK
sector. The public sector usually performs early-stage
estimating at the conceptual stage of the PPP process. The launch of PFI in the UK in 1992 saw the development
The public sector/contracting authority adopts the public and extensive adoption of the PPP model for the
sector comparator (PSC) to ascertain the possible lifecycle procurement of public infrastructure projects. HM
cost of the proposed PPP project. More details on the Treasury has indicated that PPP solutions should only be
early-stage estimating by the public sector are provided in considered for projects with a capital value of £50m or
subsequent sections. more because less capital-intensive projects rarely justify
the relatively high procurement and management costs
For the private sector, the early-stage estimating occurs (Department of Finance, 2017). Hence, accurate project
at the pre-tender stage of the PPP process. At this stage, cost estimation of the PPP project is essential.
the private sector bidders ascertain the detailed lifecycle
costs of the proposed projects. The proposed lifecycle During the early stage of a PPP project’s development,
costs of the projects are then assessed and evaluated generally preliminary estimates are carried out to
by the contracting public authority and are used as one estimate the project cost and to check for the value for
of the bases for selecting the right bidder. Importantly, money (Ashworth and Perera, 2015). The PSC, capital
BIM application at the pre-tender stage is very critical appraisal, financial analysis and affordability studies
and should be introduced at this stage because it can are based on such estimates (Boussabaine, 2007). It is
dramatically improve time and cost savings. The PPP suggested that in the absence of complete design and

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 BIM Execution Framework for early-stage estimating in PPP projects

specifications, preliminary cost plan and estimates that are territories Commonwealth of Australia, 2016, Volume 6. In
lacking a rational basis may prove disastrous for project this context, the Australian PPP market is widely accepted
stakeholders (Li, Shen, and Love, 2005). Furthermore, to be among the most sophisticated and mature PPP
it is well documented that the early-stage preliminary markets in the world.
cost estimate will change around 20% with the final cost
The PSC is developed to test whether PPPs provide
(Ashworth and Perera, 2015, 2018).
better VfM over traditional procurement options and to
Generally, the success of a project largely depends on the act as a benchmark against which bids are compared
accuracy of the early estimate of the project’s Anticipated (Commonwealth of Australia, 2016). Since the PSC is a
Final Cost (AFC) (HM Treasury and Infrastructure UK (2013)). valuable tool for government in determining VfM, it is vital
Furthermore, early cost estimates are vulnerable to that the PSC is prepared carefully and comprehensively.
influencing behaviours when allied to the desires of key The guideline publication Commonwealth of Australia
stakeholders to ensure a proposal secures funding and 2016, National Public Private Partnership Guidelines
meets (sometimes conflicting) objectives. According to – Volume 4: Public Sector Comparator Guidance –
HM Treasury and Infrastructure UK (2013), AFC for any 2008, provides directions on the development and
project or programme consists of two components (1) use of the PSC. The Australian government and all the
a Base Cost (which is the value the estimators believe states and territory governments require application of
represents the most likely expenditure required to deliver PSC to ensure VfM and high levels of integrity in PPP
the requirement) and (2) a Risk Allowance. Furthermore, procurements. This is evident according to publication
risk allowance is accounted for the course of action over Commonwealth of Australia 2016, National Public
the project’s life such as the development of the design, Private Partnership Guidelines – Volume 6: Jurisdictional
the greater understanding of the solution’s interfaces with Requirements – 2014, which contains state and territory
its physical environment, scope changes and specific risks governments’ specific PPP guidelines namely, New
(HM Treasury and Infrastructure UK, 2013). Two steps are South Wales Requirements (2012), Partnerships Victoria
involved when developing the AFC. (1) Generating the initial Requirements (2013), Queensland Requirements (2011),
estimate and (2) Testing the initial estimate against the Western Australian Requirements (2010), South Australian
appropriate project out-turn reference data. The initial cost Requirements (2009), Tasmanian Requirements (2009),
estimate can be created at the inception stage from the Northern Territory Requirements (2009), and Australian
Green Book Supplement. This estimate is usually created Capital Territory Requirements (2009).
from the initial risk estimates and the reference class
It is important that estimated net capital costs should
forecasting (Infrastructure Risk Group, 2013). Importantly,
reflect the best available information and prevailing best
to cross check any early estimate, the out-turn data for
practice, as incorrect estimates may lead to cost overruns
comparable projects should be used (HM Treasury and
and may adversely impact on the interests of project
Infrastructure UK, 2013).
stakeholders. In the case of PPP projects, end users (or
the public sector) generally bear the consequence of
3.2.2 Use of estimating in PPP projects cost overruns by way of paying extra margins on services
in Australia delivered. This is particularly evident in the operation of
In Australia, the growing importance attached to PPP social and economic infrastructure projects procured
procurement at national and state level has led to through PPPs across many countries including UK and
formulating policy and guidelines and establishing separate Australia (Doloi, 2011).
groups and units to assist various government agencies in In Australia, based on data from 56 projects and a survey
undertaking PPPs (Siddiquee, 2011). Australia’s National of 102 quantity surveying firms, Ajibade and Pasco (2008)
PPP Working Group was established in 2004 with revealed that the accuracy of pre-tender building cost
jurisdictional representation of the Australian government estimates has not improved over time and the majority
and all the states and territory governments to lead of the respondents were dissatisfied to a certain degree
PPP policy development and process improvement regarding the accuracy of estimates in the industry.
(Infrastructure Australia, 2018). Subsequently, Australia Notwithstanding, the findings of research conducted in
developed a National PPP Policy Framework and National Australia by Doloi (2011) clearly highlighted the requirement
PPP Guidelines to provide a consistent framework for a radical shift in cost estimation of complex projects
that enables public and private sector collaboration to rather than relying on traditional cost estimation principles,
enhance public service delivery through private sector which remain inadequate in addressing demand for cost
participation in provision of infrastructure and related management in modern complex projects. Thus, BIM
services. According to the Commonwealth of Australia being not new to Australia and having an abundance of
(2016), National Public PPP Guidelines – Overview (2008), advantages may help in enhancing the accuracy of early-
PPP guideline publications comprise volumes (1 – 6) of stage cost estimates, avoiding unfavourable procurement
National PPP Detailed Guidance Material. Deviations from decisions especially in case of PPPs that have direct
the national guidelines are allowed as per the individual impact on public interests.
Jurisdictional Requirements Documents of states and

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3.2.3 Use of estimating in PPP projects Investment estimates are of paramount importance as
in China a basis for VfM evaluation and measurement of financial
expenditures. The vast majority of PPP projects in China
In China, the project investment estimate is based on are started once the feasibility study is completed. That
the project design or feasibility study documents at the is, the VfM Evaluation Report, the Financial Capability
decision-making stage that define the composition of Demonstration Report and the PPP Implementation
the proposed project in accordance with the prescribed Plan are all based on the Feasibility Study Report and
procedures, programmes and bases. It is one of the the investment estimates, measurement basis, project
important factors in project investment decision-making output, and operation and maintenance costs, economic
(Yan Ling and Yin Yilin, 2017). evaluation parameters (Gong and Wei, 2016). Moreover,
The Construction Project Cost Advisory Code (GB / T the pre-investment estimate, project output and operation
51095-2015) provides that the estimated investment can and maintenance costs of PPP projects are the core
be divided into construction project investment estimates, basis for calculating government subsidies and feasible
single project investment estimates, and unit project gap subsidies or adjusting users’ payment quotas. If the
investment estimates. The investment estimate in the estimation is not accurate, the data on project output and
project proposal stage can be compiled using the index operation and maintenance costs will have a direct impact
of production capacity, coefficient estimation, proportion on the expenditures of the financial departments and will
estimation, index (quota) estimation or the hybrid method. affect the experience of infrastructure users. Therefore,
The investment estimation in the feasibility study stage the investment estimation benchmark is the basis for the
adopts the quota-based estimating method. These quotas VfM to evaluate and measure the financial expenditure.
are investment indicators or benchmarks that estimates Relevant industrial authorities are required to provide
can be evaluated against. more accurate investment estimation benchmarks, project
output, and operation and maintenance costs benchmarks
In the traditional investment management model, the to enable the implementation of PPP projects.
investment decision-making (feasibility) stage usually
constrains the investment estimation. However, because Inaccurate investment estimates will aggravate the Two
the project conditions are far from being certain at this Standard and One Standard investment in PPP projects
stage, the project construction plan is not yet specific and lead to the project investment being out of control.
enough, and the proposed projects are generally not Both the Ministry of Finance and the NDRC have indicated
yet formed, it is very difficult to estimate investment in the relevant documents that Two Standards and One
and the error can be substantial. More often, in order to Standard in the practice of the PPP project is legal (that
launch the project, investment is underestimated, and is, the social capital with corresponding capacity can
profits are overestimated, while the rigor of investment build itself without further bidding by the contractor at
estimates is ignored. the construction stage). However, Two Standards and
One Standard also has its drawbacks. When selecting
Due to the inaccurate, sometimes missing, preliminary social capital, the basis for project investment and annual
estimates of PPP projects in China, a series of problems government operation subsidy (if any) during the project
have arisen. A corresponding benchmark (index) system operation period comes from the feasibility study report
is missing for the preliminary estimation of PPP projects. and the project investment estimate General Index (Zhang,
According to the information released by the Ministry of 2016). If the estimation of investment is still determined
Finance, the Social Capital Cooperation Centre (CPPPC) using the traditional pricing method (e.g., expanding the
and the National Development and Reform Commission index method or quotas) and the accurate bidding price
(NDRC), such a benchmark system is very important for and pricing system cannot be set up, there is no effective
the development of the more advanced municipal PPP government investment review of the whole process of
projects (such as rail transit, landscape greening, water cost supervision, resulting in the one-time gaming gambler
supply, drainage, heating, hospitals, education, affordable mentality that exacerbates the social capital side to grab
housing PPP projects). Although China has national excess construction profits (Yu, 2012). At the same time,
benchmarks for PPP projects such as rail transit, water PPP projects in this context are similar to those projects of
supply, drainage, heating and underground integrated a general contracting arrangement – both winning bidders
pipe corridors, the benchmark (index) system is not (social capitalists or general contractors) are identified at
perfect enough to guide local practices. Furthermore, the pre-project stage (conceptual or preliminary design
such a system has not been established for landscaping stage) to sign the total contract. It is similar to the method of
PPP projects. Although a clear estimation benchmark cost management and investment control of engineering,
system has not been established for the PPP projects procurement and construction (EPC) projects. Relevant
of hospitals, education and affordable housing projects, industry authorities should formulate more accurate
there are professional reference books (but their accuracy investment estimation indices applicable to various types
is unknown). In summary, it is imperative to establish a of PPP projects in order to curb the risk caused by the
reasonable and sound estimation benchmark (index) Two Standard and One Standard. The earlier stage of the
system to guide the implementation of PPP projects. contracting phase of the project is estimated to be distorted
and the project investment is out of control.

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 BIM Execution Framework for early-stage estimating in PPP projects

4.0 BIM-enabled cost

estimating for PPP
projects
4.1 BIM-enabled estimating for
general construction projects
It is the practice to perform early-stage cost estimating
based on schematic design to obtain initial budget
prices of a project. However, schematic designs usually
provide a rough design thereby making it extremely
challenging to obtain enough information for a proper
detailed cost estimate. As a result, involvement of the
cost estimator’s subjective decisions in the estimating
process is inevitable. As BIM is widely used in the building
construction industry, it could also be used in estimating
so that more accurate estimating outcomes are achieved
(Seul-Ki, Kim, and Yu, 2014).
Using level 3 BIM, cost estimating can be carried out
through the 5D function by linking the model to an
estimating database (Haque and Mishra, 2007). Ashworth
and Perera (2015) states that early-stage cost estimating
can be performed with the use of cost databases such
as Building Cost Information Service in the UK (BCIS),
Rowlinsons Australian Construction Handbook or
Spon’s Architects’ and Builders’ Price Book in the UK,
to provide high-level cost information. Certain software
providers are now publicising that it is possible to develop
detailed cost plans through linking a ‘5D Cost Library’ to
BIM. Some leading software used for estimating in the
UK are Navisworks, Autodesk QTO, CostX, Innovaya,
iTWO, d-profiler, Vico, ProjectWise Navigator, Bentley
ConstrucSim, Balfour Technologies (Abanda, Kamsu-
Foguem and Tah, 2017). In Australia, Cost X and BuildSoft
are the most dominant, while in China, Glodon estimating
software is the most popular.
As indicated in Figure 4, with interconnected object
quantities and estimate items, estimates are easily
updated with each reloading of the modified 3D model
from the BIM software. Therefore, it can be deduced that
BIM estimating greatly improves accuracy of an estimate
giving the estimator a better understanding of what is
being estimated.

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Figure 4 Traditional vs. BIM estimating method

Traditional estimating method BIM estimating method

Dodge Viewer Dodge Viewer

Construction Construction
Documents Building documents Documents Building document
are acquired from are acquired from
Dodge Report for Dodge Report for
buildings regional to buildings regional to
the programme. the programme.

Dodge Viewer Dodge Viewer

Review of Files are viewed using Review of Files are viewed using
Documents Dodge Viewer and Documents Dodge Viewer and
and Specs printed (if desired) as and Specs printed (if desired)
full size or ¼ size using as full size or ¼ size
lab printers. using lab printers.

Dodge Viewer & Revit

AutoCAD Three dimensional
Quantification On screen take offs are model is created
of Materials BIM Modelling
done using CAD tools using construction
and the Dodge Viewer documents.
software.

RS Means Visual Estimating

Costs, including waste Translated (Innovaya)
and contingencies are BIM BIM Model is imported
Costing:
determined RS Means and Model and analysed for
Material,
verified using industry cost completeness.
Labour,
data and adjusted using
Equipment
the appropriate factors as
defined in RS Means.
Materials are
Timberline quantified and
Take Off/
Excel Quantification
Mapping and mapped to database
The final estimate is Costing for costing
Final Estimate created in Excel and
all computations for
material, labour and
equipment are driven
by formulae. Sage Timberline
Estimate is generated
Cost
and analysed for
Database
reasonableness and
unit costs are verified
for accuracy.

Detailed Cost
Estimate

Figure source: Sylvester and Dietrich, 2010

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 BIM Execution Framework for early-stage estimating in PPP projects

4.2 BIM-enabled estimating for 4.3 Contractual measures

PPP projects facilitating BIM-based
The three key choices for cost estimation using BIM can management of PPP projects
be categorised as: (1) move building object amounts to
For a successful BIM application in PPP contracts, proper
prediction software, (2) employ a BIM quantity take off
contractual measures need to be in place. In simple
resource, or (3) connect the BIM resource to the prediction
terms, contractual measures refer to the strategies that
software (Eastman et al., 2011). In the first two choices,
are required to enhance the legal and mutual relationship
information is extracted from the model and transported
existing among team members in a project. This implies
using a format that can be easily taken by cost estimating
that in every PPP contract, there is a mutual relationship
programs. For instance, there are several programs which
among client, contractor and other stakeholders. Indeed,
are compatible with cost estimation processes: CATO,
this contractual relationship needs to be properly
CostX, and Nomitech are among them (Exactal, 2017).
coordinated in a BIM environment to ensure that the
According to HM Government in the UK, (2013), the BIM project objectives and BIM goals are achieved. McArthur
Task Group was driven by industry and was supported with and Sun (2015) identified a series of contractual measures
£4m of UK Government funding for implementation of the that are applicable to PPP contracts. These include:
BIM strategy. Furthermore, HM Government has identified
• Dedicate personnel from all partners to develop BEP
that effective usage of BIM in public sector projects
(BIM Execution Plan)
could save money. As an example, collaboration with the
Ministry of Justice has demonstrated significant savings • Foster an open environment for sharing and
in the design and procurement stages, with the £20m collaboration
Cookham Wood prison reporting an 18% saving through • Develop guidelines to assist collaboration within the
effective use of BIM (HM Government, 2013). BIM is also consortium and project stakeholders
considered a repository for knowledge and information that
is useful during the operation and maintenance phase of • Early planning: especially regarding use case
the PPP project. However, in the UK, most PPP projects identification and selection and phased ownership
experienced cost and schedule overruns, though the assignments for model elements
government (as the client) was not liable for the increase in • Review and update the BEP regularly and resolve
expenditure incurred (Love et. al., 2015). For example, the outstanding issues
contractor John Laing was subjected to additional costs of
• Provide sufficient resources for BIM
£100m when it could not complete the National Physical
Laboratory (Love et al., 2015). • Ensure a consistent approach to BIM execution across
all partners
Its dynamic cost management system enables more
estimates of investment, improves cost management • Modify model in 3D instead of 2D views to ensure
and helps owners to make the right decisions, laying a model integrity etc.
solid foundation for lifecycle cost management (Zhang Generally, PPP is considered as a method of financing,
Shuli 2016). which is predominantly used for large infrastructure
The preparation of PPP project investment estimation projects (Osei-Kyei and Chan, 2015). BIM is mostly
based on BIM technology relies mainly on the existing encouraged in PPP contracts because it helps to minimise
model database. Through the application of the model lifecycle cost and maximise the sustainability of the
in the library, a visual model can be quickly set up and project. However, as previously emphasised by McArthur
the investment project estimate of PPP can be compiled and Sun (2015), strong collaboration among project
accordingly. The basic process includes: stakeholders is required to ensure that the BIM goals
of PPP contracts are achieved.
1. Building units or design units to establish the
preliminary design of the building in the BIM model
and determine the optimal programme
2. Estimating the cost using the preliminary BIM model
and database of costs
3. Investment estimates can then be integrated with
the financial analysis tools to obtain the return on
investment that will help in the project decision-making.

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4.3.1 Issues in the UK et al. (2015) studied the contractual and legal concerns
associated with BIM implementation by looking critically
A BIM Execution Plan (BEP) should be collaboratively
at the GC21 2nd edition, an Australian standardised
developed at the early design stage (Wu and Issa, 2014), to
construction contract. The authors proposed several
identify key project tasks, outputs and model configuration.
changes to the GC21 to suit the implementation of BIM
The Computer Integrated Construction (CIC) Research
in Australia. Some of the proposed changes include: the
Program (2011) described a BEP as a tool to provide a
need to adopt a collaborative contract structure with
standardised workflow and general guidance for strategic
equitable risk and reward mechanisms, recognition of
BIM implementation in a holistic approach for a project or
the model as a contract document and the need for
a group of projects. It is evident that early development
standardisation of communication/information exchange.
and effective use of a BEP has a strong influence on
the success of a project BIM. Against this backdrop Currently, there is no published standard construction
several BEP templates are developed. For instance, in form that specifically stipulates BIM provisions, and this
Australia, NATSPEC (National Building Specification) (2012) is certainly a major setback to BIM adoption for PPP
developed the National BIM Guide, which aims to establish projects in Australia (Kuiper and Holzer, 2013), (DIT,
a set of considerations when using BIM in an Australian- 2012). Notwithstanding, most BIM projects in Australia
based project. The National BIM Guide aims to assist adopt requirements and standards from other countries
clients, consultants and stakeholders to clarify their BIM with similar construction practices, including the UK
requirements in a nationally consistent manner. Furthermore, other projects with BIM adoption, consider
BIM as part of the design documentation (Kuiper and
In the UK, the AEC (UK) (2012) BIM Protocol builds on the
Holzer, 2013), (DIT, 2012). These notwithstanding, there
guidelines and frameworks defined by the UK standards
have been attempts by industry stakeholders to develop
documents including the Construction Project Information
guidelines for the implementation of BIM in the Australian
Committee (2013), and other BEP templates to include
construction industry. For example, NATSPEC (the
the Hong Kong Institute of Building Information Modelling
National Building Specification) has developed the National
(2011), Institute for BIM in Canada (IBC) (2013) and Indiana
BIM Guide, which aims to establish a set of considerations
University Architect’s Office (2015). These are reviewed
when using BIM in an Australian-based project (NATSPEC,
within the context of this research.
2011). The National BIM Guide is currently being used
A review of the BEP templates revealed a strong internal by clients, consultants and other project stakeholders
consistency among the templates. The consistency who are interested in adopting BIM in their projects.
across templates included the need to: set project goals, Moreover, the guide informs project stakeholders of the
define organisational roles, agree on model structure and BIM requirements for specific construction contracts
BIM information exchanges, document technological in Australia (NATSPEC, 2011). Other efforts by industry
infrastructure needs, document and schedule project stakeholders on BIM implementation in Australia includes
deliverables, and identify specific use cases required to the release of the Building and Construction Procurement
achieve these goals. Other requirements include: design Guide: Project Team Integration and Building Information
reviews, programming, maintenance scheduling, facility Modelling at the Australian Construction Industry Forum.
energy analysis, cost estimation, site analysis, 3D design Essentially, this guide provides helpful guidance on BIM
coordination, space management, 4D (phase) planning, issues. Also, the Australia and New Zealand BIM Best
design authoring, building system analysis, code validation, Practice Guidelines published by the Australian Institute
and sustainability evaluation among others. of Quantity Surveyors (AIQS) and New Zealand Institute
of Quantity Surveyors, (NZIQS) (2018), highlight key
4.3.2 Issues in Australia knowledge areas and specifics about BIM, what to expect
in a BIM project, quality assurance, legal issues to be
One of the most reported obstacles to the successful
aware of whilst working on BIM projects and information
adoption of BIM is the perceived legal risks associated
on what quantity surveyors need to know about BIM
with its integration and the need for implementation in
and a timeline of a quantity surveyor’s role in the BIM
a collaborative environment. Undoubtedly, many of the
Execution Plan. This document intends to provide a guide
existing standardised construction contracts used in
for quantity surveyors, cost managers or cost estimators
Australia were drafted before the emergence of BIM.
looking to be involved with a project utilising BIM.
Therefore, many of these contracts do not have BIM
Inevitably, these guidelines may complement the outcome
provisions, particularly on the need for a collaborative
of this research in proposing BIM-enabled cost estimating
environment in contract administration. This has therefore
framework for PPP projects.
been a major cause of delay in the successful adoption
of BIM in the Australian construction industry. Manderson

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 BIM Execution Framework for early-stage estimating in PPP projects

4.3.3 Issues in China

In China, the ultimate investment objective of social
capital investment projects is to make economic gains.
Government investment projects are more concerned
with meeting the needs of society or with economic
development, and are seldom merely for profit. For
PPP projects, the lack of a specific and measurable
investment objective poses difficulties for the project’s
goal management and contract management because
of the different objective functions of social capital and
government involvement.
Due to the imperfect laws and regulations of the PPP
model and related institutional environment in China,
there are not enough mature experiences to learn from.
To achieve the effectiveness of BIM management in
PPP projects, China could consider setting reasonable
contracts during project preparation, including the
terms enabling PPP project management based on BIM
technology to truly take hold (Pang Jiali, 2016).
First, clarify the requirements for submitting the
corresponding information from each participant, including
how to submit the information, whether it is paper or
electronic, the time submitted, the information creator who
submitted the information, and the information that can
be modified. Second, ensure that all parties are aware of
the input and output of information in each process, and
at the same time have the responsibility to ensure the
integrity and accuracy of the information, as well as the
terms of attribution of the relevant intellectual property
and confidentiality of the information. In the meantime,
to increase the enthusiasm of contractors to use BIM
technology, some incentive provisions should be set in
the contract to encourage contractors to use BIM
technology for design optimisation. For example, the
benefits of design optimisation using BIM technology
agreed in the contract can be considered as a percentage
of total cost to increase the enthusiasm of the contractor
to apply BIM technology.

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5.0 Organisational
practice case studies
This section is focused on the findings of face-to-face
interviews conducted in relation to cost estimating
practice in PPP projects in different countries comprising
the UK, Australia and China. Two organisations with
involvement or experience in PPP projects were identified
in the UK and Australia and three in China. A series
of interviews with two key professionals per company
involved in estimating were carried out. The results are
analysed in the following key headings:
1. Cost estimating process used at PPP phases
2. Dealing with differences between cost estimates
prepared at PPP phases and negotiations
3. Extent of computer usage in the estimating process
4. BIM application in estimating for PPP projects (project
level/enterprise level)
5. BIM-enabled estimating practice in PPP projects
(industry level)
The following sections of this chapter present the findings
from the interviews conducted on a country basis. In
presenting the results PPP projects were divided in to two
stages as follows:
• Stage A: Approval of project investment and
procurement selection [initial Public Sector Comparator
(PSC) Development]
• Stage B: Project Development Phase to Request for
Proposal (RFP) Phase (during which the upgraded
project estimate is prepared to compare bids)

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 BIM Execution Framework for early-stage estimating in PPP projects

5.1 Cost estimating process

used in PPP projects in the UK
5.1.1 Cost estimating process used
at PPP phases
The following table summarises the status of cost
estimating in projects in the UK.

Table 5.1 Status of cost estimating in PPP projects (UK)

UK
Criteria Status
Project team members involved • Project manager, project architect, client, commercial lead, project estimator, project design
in the cost estimating process team, site manager, and construction team members.

Information received to prepare • Mainly conceptual and schematic drawings at the early stage of the project and later on
the project cost estimate specifications.

Tools and techniques for • Use of norms from local authorities, benchmark the contractor’s data against historical data or
cost estimating internal data and further benchmark against the contractor’s pricing strategies, obtain specific
cost from nominated suppliers, cost data from similar PPP project schemes, price books, past
project cost data adjusting the time and location as well.

Level of detail of project • Nominal bills, subcontractor’s quotes, cost analysis, schedules of quantities
cost estimate and early elemental cost estimate.

5.1.2 Dealing with differences between 5.1.3 Extent of computer usage in the
cost estimates prepared at PPP phases estimating process
and negotiations Computers are utilised to a large extent at both stages
It is clear that the public authority responsible for the PPP of cost estimate preparation. Microsoft Excel and CostX
has a primary responsibility to keep the project and the are the most common software used for cost estimating
budget within scope. Therefore, they would go through and report generation. At Stage A, CostX and Excel are
details of relevant work and benchmarks, and afterwards used extensively. At Stage B, Revit and Vico Office cost
compile a summary of differences to reconcile. software are used as BIM-enabled estimating tools. Other
Contractors would generally realise that they must work software used in the preparation of cost estimate includes
within the envelope, for the scheme to go ahead. The Navisworks, Vector5 and AutoCAD (some of which are
contractors (PPP consortia) would always be aware of the used for measuring volumes of road and area etc).
budgetary limits of the project and they usually attempt to
be within these limits. They know that they must reconcile 5.1.4 BIM application in estimating for PPP
the cost plan back to the previous estimate that was projects (project level/enterprise level)
based on the design phase development.
The following table summarises the BIM Application in
estimating for PPP projects in the UK.

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Table 5.2 Status of BIM-enabled cost estimating at early stages of PPP projects (UK)

UK
Criteria Status
BIM use • Endeavour to use BIM on infrastructure project delivery especially for road and ports related projects.

Advantages • Time (reduction), clash detection, production of base data, ease of effecting changes in design or
amendment to quantities and rates.
• Design changes or amendments to quantities and rates are very easy to deal with if BIM is used.
• Cost or carbon implications can be generated from federated models.
• BIM-enabled cost estimating tools would be quite quick and can have significant benefit at Stage B,
thereby reducing the taking off time.
• BIM model can be used as a basis of designing other similar projects in future if required.

Challenges • Lack of availability of qualified personnel with relevant BIM and estimating knowledge.
• Quantity surveying (QS) firms working with BIM need to be aware of the limitations of various BIM software
from experience.
• It is difficult and expensive to enforce adopting of standards and maintaining those, as a large number of
designs come through in the form of sketches, which are not properly managed to expected level.

Recommended best • Having proficiency in BIM authoring individual software.

practices • Incorporate BIM-enabled estimating in the BIM Execution Plan.
• Ensuring QS information requirement is ascertained in BIM development.
• Having a thorough understanding of the software that you intend to use.
• Deciding on how often the cost plan (stage basis or other) is updated.
• Deciding on how implications of cost increases or any design changes are dealt with (revising model etc.).

5.1.5 BIM-enabled estimating practice in

PPP projects (Industry level)
The following table summarises BIM-enabled estimating
practice in PPP Projects at industry level in the UK.

Table 5.3 Status of BIM-enabled estimating practice in PPP Projects at industry level (UK)

UK
Criteria Status
Incompatibilities between BIM-enabled estimating • Not many incompatibilities exist between BIM-enabled estimating output
output and the prevailing estimating practice and the prevailing estimating practice requirements.
requirements/standards in the local construction • Some issues of incompatibility of Bills of Quantity (BQ) items and how BIM
provide quantities.
• Mainly it is associated with the level of training, adopting and adapting,
culture, government requirements and inconsistency. .

Recommendations for enhancing BIM-enabled cost • Better training and better understanding of what is in the market, cultural
estimating in local construction industry change, prompt adoption of BIM while challenging the barriers, federated
model (the model that combines all dimensions of BIM), teaching and
giving experience on BIM-enabled cost estimating software during
the undergraduate or post graduate programmes and increasing BIM
awareness within organisations .

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 BIM Execution Framework for early-stage estimating in PPP projects

5.2 Cost estimating process

used in PPP projects in Australia
5.2.1 Cost estimating process used
at PPP phases
The following table summarises the status of cost
estimating in projects in the Australia.

Table 5.4 Status of cost estimating in PPP projects (Australia)

Australia
Criteria Status
Project team members involved • Estimating manager, bid manager, project manager, design manager, design team, cost
in the cost estimating process planners and estimators, subcontractors and supply chain participants, specialist consultants
and estimators and financing institution and facilities manager.
• Majority stay throughout the process to offer cost information and to help with cost estimates
towards achieving the best output.

Information received to prepare • Mainly conceptual and schematic drawings, specification, design brief, schedule of areas and
the project cost estimate client’s preference scheme.

Tools and techniques for cost • Start with looking at the design, cost implication, programme implications related to every
estimating aspect of the building.
• High-level cost planning by means of costing ideas and options while providing feedback to the
design team so that the most optimised solution is achieved at the start.
• Benchmarking in terms of application of cost/m²
• Rates based on other similar projects to form a view on an appropriate value for a project to guide
the consultant’s design to be in-line with the client’s’ expectations.
• In the end, elemental bills with the ability to be coded on trade basis, so that market cost
information is obtained easily on each trade.

Level of detail of project cost • A very high-level cost plan at the start and then progressed to more detailed bill of quantities.
estimate • Final estimate is more detailed than cost/m² of functional area. Elemental bill of quantities with
the ability to change from elemental to trades.

5.2.2 Dealing with differences between 5.2.4 BIM application in estimating for PPP
cost estimates prepared at PPP phases projects (project level/enterprise level)
and negotiations The following table summarises the BIM application in
There is limited room for negotiations between the estimating for PPP projects in Australia.
client and the PPP consortia. Benchmark process and
consultant evaluations are used to ensure prices are cut
down to the minimum possible.

5.2.3 Extent of computer usage in the

estimating process
Most commonly used software for bill of quantities
and estimating are Buildsoft, CostX, Vectorworks,
Plainswift, while some bespoke software is used by larger
construction companies. CostX is the most popular
software for estimating and cost planning other than the
use of Microsoft Excel. MS Project was also cited as
software used for planning and scheduling.

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Table 5.5 Status of BIM-enabled cost estimating at early stages of PPP projects (Australia)

Australia
Criteria Status
BIM use • BIM for estimating in PPP is in its infancy and not widely used in PPP bid preparation.
• BIM is mainly used for design purpose and visualisation of some selective PPP projects.
• BIM is used for various estimating purposes of other projects.

Advantages • BIM enables electronic documentation, 3D visualisation, ability to easily detect change, manipulation of
data, good decision-making and speed.
• Quantities can directly be extracted from the model.
• Fully updated model (including what is in that building) is handed over at the end of the project to the
facilities manager/operating authority, making operation of the facility easier.
• 3D BIM makes it possible to visualise, walk through and spin around the modelled designs making clients
impressed with BIM (clients can look at it, feel it and see what is happening).

Challenges • As the design consultants and the estimators have different thoughts on what should be included
on the model, a lot of modification to the model is still required so that it can be utilised to extract
cost information.
• Having the model in a way that information could be extracted easily.
• Lack of appetite for implementing preliminary concept designs into models by designers at the start of
the project.

Recommended best • Public authority to encourage adoption of BIM.

practices • Design development with the use of BIM to be closely followed up with estimating (5D BIM).

5.2.5 BIM-enabled estimating practice in

PPP projects (industry level)
The following table summarises BIM-enabled estimating
practice in PPP Projects at industry level in Australia.

Table 5.6 Status of cost estimating in PPP projects at industry level (Australia)

Australia
Criteria Status
Existing incompatibilities between • Mismatch in data formats between different software.
BIM-enabled estimating output and
the prevailing estimating practice
requirements/standards in the
local construction

Recommendations for enhancing • Upskilling people and teaching BIM

BIM-enabled cost estimating in local • Technological, including software issues and lack of BIM expertise, legal issues and
construction industry acceptability, design liability, licensing, data security, economical cost, cultural resistance
and lack of BIM awareness should be addressed.

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 BIM Execution Framework for early-stage estimating in PPP projects

5.3 Cost estimating process

used in PPP projects in China
5.3.1 Cost estimating process used
at PPP Phases
The following table summarises the status of cost
estimating in projects in China.

Table 5.7 Status of cost estimating in PPP projects (China)

China
Criteria Status
Project team • Initial team includes professionals of various disciplines, technical personnel in engineering technology,
members involved engineering economy, cost and finance, implementation agencies, government-funded representatives,
in the cost feasibility study units, consulting agencies and industry authorities.
estimating process • The bidding team includes professionals from operation department, marketing department, legal
department, commerce department, finance department, investment department and other departments
related to the project.

Information • Initially, relevant policy documents of the PPP project and project operating costs, feasibility study report
received to prepare provided by the implementing agency and relevant industry specifications and standards.
the project cost • The consulting organisation collects the relevant policy documents of the PPP project, the relevant industry
estimate specifications, standards and project operating costs. Basic project operation information obtained through due
diligence conducted by consulting organisation.
• Usually, no drawings but simple sketches along with any relevant information, properties of the building including
the structure, use, several floors above ground, several floors underground, decoration standards, etc.
• At the bidding stage, additional information on project payment mechanism, price adjustment mechanism,
project contract price determination method and adjustment method (if any), engineering quantity list (if any),
distribution of rights and obligations and bidding indicator setting, etc.
• Design drawings for some projects, for which the government completes preliminary works of the project prior to
contract award.

Tools and • Initial project cost estimate using feasibility study and unit costs (cost/m²) based on relevant standards,
techniques for historical cost indicators of similar projects, government-issued quota and current market prices.
cost estimating • The cost estimate at bidding stage compliant with government-issued quota and equivalent to investment
estimate prepared at feasibility study phase.

Level of detail • Initial estimate including benchmark prices based on quantity determined by the feasibility study report and unit
of project cost costs (cost/m²).
estimate • At the bidding stage, the cost estimate including financial data such as financing, loans, and interest % and cost
indicators with reference to unilateral cost of similar projects.

5.3.2 Dealing with differences between project is completed, it will be settled with the construction
cost estimates prepared at PPP phases and party according to the actual situation. The preliminary
estimate is only a reference.
negotiations
Where there is a difference between the project costs
At Stage A, the project cost estimate is usually based
estimate prepared at Stage B and the selected bidder’s
on the initial feasibility study. At Stage B, if the design
project cost included in the Bid Proposal, the purchaser
documents are obtained, the quotation is generally
shall determine the social capital selected, the difference
based on the design budget. Where there is a difference,
between the social capital bid quotation and the purchase
the design estimates supersede and if the feasibility
control price. This is only from the client’s side. The bid
study of Stage A is based on the quotation, the stage
price shall prevail, and the operating cost shall be adjusted
will be consistent. After the drawings are published, the
according to the price adjustment mechanism stipulated in
construction and installation project fees will be re-
the PPP project contract.
determined, and the contract will be signed. After the

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The initial project cost in the bid proposal is subject

to negotiation. Moreover, the project bidding will be
accompanied by the project market test. The project
bidding, that is, the project evaluation process will be
accompanied by the project market test, the main purpose
of which is to communicate the relevant core boundary
conditions of the project, such as project financing cost
and social capital fund. Costs such as operating costs,
project cost determination, etc., are all core requirements
related to the project lifecycle cost.

5.3.3 Extent of computer usage in the

estimating process
Software is mainly used for project budgeting. At Stage
A: historical data and indicators, the commonly used
software is Excel, and Guanglianda engineering cost
software. At Stage B: Guanglianda calculation software,
Guanglianda engineering cost software, and material price
information network are used.

5.3.4 BIM application in estimating for PPP

projects (project level/enterprise level)
The following table summarises the BIM application in
estimating for PPP projects in China.

Table 5.8 Status of BIM-enabled cost estimating at early stages of PPP projects (China)

China
Criteria Status
BIM use • BIM is not used currently for estimating purposes.
• Guanglianda estimating software is used to calculate the amount.
• Even if some design adopts BIM, the information volume of the model is unable to meet the application of
various stages such as cost and construction management.

Advantages • Enterprises do not perceive many advantages of using BIM-enabled estimating when compared to the
traditional use of Guanglianda software.
• Future versions of BIM-enabled estimating will enable modelling costs from inception to final bid model.
• There are many benefits during detailed design development and later operation and maintenance phases.

Challenges • Absence of unified standard in adopting BIM.

• Difficulty in supporting cost estimating due to low level of information carrying capacity of the designed
BIM model.
• Unavailability of BIM models at the early stage as it is expensive to create a model from an early stage.

Recommended • At Stage A, BIM cannot be effectively be used unless it is for a very similar building or structure for which a
best practices BIM model exists.
• At Stage B, BIM models can be developed to support bids. However, the PPP practice in China does not allow
for such level of detail at present. Therefore, to adopt BIM-enabled estimating, PPP practice needs to be
changed through policy drivers.

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 BIM Execution Framework for early-stage estimating in PPP projects

5.3.5 BIM-enabled estimating practice in

PPP Projects (industry level)
The following table summarises BIM-enabled estimating
practice in PPP projects at industry level in China.

Table 5.9 Status of cost estimating in PPP projects at industry level (China)

China
Criteria Status
Existing incompatibilities between • Difficulty in using BIM to complete the investment estimating before determining the
BIM-enabled estimating output and investment intention because of its holistic nature. Though it is used at some stage which
the prevailing estimating practice is problematic.
requirements/standards in the • BIM model standards completed by different design institutes are different, thus, unable
to unify the index conditions (cost benchmarks and quota) associated with the cost library
local construction
and the model.

Recommendations for enhancing • Requirement to improve the BIM technology itself and integration with other software.
BIM-enabled cost estimating in
local construction industry

5.4 Comparative analysis of The UK showed the comparatively highest level of usage
followed by China and Australia. Although, general usage
estimating practice in PPP of BIM is much higher in all countries, use of 5D BIM was
projects in the UK, Australia limited and use in PPP projects even scarcer.
Designs at very early stages lack the detail that is required
and China for a BIM model, making its usage at early stages
This section compares and contrasts the PPP project limited. This is universal and common to all countries.
estimating practices between the three countries the UK, The main challenges come from lack of knowledge in
Australia and China. the construction industry on the use of BIM and the
poor level of skills. Education was identified as one of
The project team members involved in bid preparation the primary requirements. Policy and legislative support
stages are similar in all three countries. The notable for BIM implementation was evident in the UK but such
difference here is that in China there were more agencies positive approaches were less prevalent in China and even
involved in these processes. Data provided at bid stages non-existent in Australia. In China, it was clear that the
were much similar in the UK and Australia whereas in absence of a unified standard was a main challenge even
China drawings were usually not provided at this stage. if the designer decides to adopt BIM. In Australia, it was
The findings on the extent of computer usage in the seen that a BIM-enabled cost management best practice
estimating process indicated that there is widespread guide has just been introduced.
computer usage at both stages (i.e. stages A and B) of Policy frameworks and government pressure were seen
cost estimate preparation. In the UK and Australia, Excel as important recommendations for Australia and China.
and CostX were commonly used at Stage A, while Revit All countries would expect greater level of contractual
and Vico Office were used as BIM estimating tools at Stage support for implementation of BIM in projects and in
B in the UK. Microsoft Excel was commonly used at Stage particular PPP projects.
A in China, whereas Guanglida engineering cost software
was used at Stage B. BIM usage in PPP projects was found to be moderate in
the UK. In Australia, there was moderate levels of usage
At Stage A, use of BIM for estimating purposes is not (especially for large-scale projects) for construction
very practical due to the fact that single rate estimating projects in general, but the extent of BIM usage was for
techniques such as cost per m2 is primarily used. However, PPP projects was very low. In China, the extent of BIM
there is a much more positive prognosis for the use of BIM- usage was high generally for construction projects but not
enabled estimating during the Stage B of PPP projects. significant for PPP projects.

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6.0 Process protocol model for BIM-enabled

cost estimating in PPP projects
6.1 Early-stage cost estimating At the RFP stage of the PPP projects, PPP bidding
documents are issued to interested bidders/PPP sponsor
practice in PPP project delivery consortia through open or selective tendering. Once the
process PPP bidding documents are obtained by PPP sponsor
consortia, design development is progressively carried out
In a typical PPP project environment, early-stage cost parallel to cost the planning and estimating process. Both
estimating is carried out at three main phases of the project the design and cost planning processes are influenced
delivery process prior to contract award. The first and the by each other until a substantial design development is
initial cost estimate is prepared at the PSC development implemented and the detailed estimate is prepared for
stage during which the investment decision is taken, and bid submission. Thus, the PPP bid proposal preparation
the main project components and parameters are decided stage provides an ideal platform for implementing
upon. At this stage, detailed project documents such as BIM-enabled cost estimating practice in PPP projects.
drawings and specifications are non-existent for estimating Implementing BIM at this stage would also help PPP
the capital construction cost of the project. The available sponsor consortia to use BIM for various other purposes
project information could be limited to few sketches and such as resources planning, clash detection and 3D
a schedule of functional requirements. Thus, it is obvious project visualisation apart from BIM-enabled estimating.
that available project information is insufficient to develop In addition, for the winning bidder, BIM could also be used
a BIM at this stage and implementing BIM-enabled cost effectively for post-contract project management including
estimating is rather impracticable. cost management as well. Therefore, this research
focused on implementing BIM-enabled estimating of
Subsequent to the PSC development, at the Expression capital construction cost by PPP sponsor consortia
of Interest (EOI) stage (Figure 2, see page 16) additional and developed a conceptual model for the process and
project documents are developed. These documents thereafter a detailed model, which was validated by
form part of the EOI and Request for Proposals (RFP) the experts and updated based on experts’ comments
bidding document package issued to the bidders through two rounds of Delphi-based expert forums.
and form the basis for the pre-tender cost estimate
to be prepared prior to RFP. The pre-tender estimate
provides the basis for bid comparisons and may outline 6.2 Final process protocol model
the indicative framework costs for various project
components of the proposed PPP project. When
for BIM-enabled estimating
compared to traditional project delivery, in PPP delivery The final process model was developed through a
there is not enough detailed project documentation detailed and iterative consultation with industry experts
available at the tendering stage to prepare the pre- in estimating and those who had direct specific
tender cost estimate. This is due to the fundamental experience in PPP projects. The aim of the model is
characteristics of the PPP project delivery, where the PPP to create a process protocol for integrating BIM for
bid proposal is envisaged to include a substantial design estimating at the early stages of a PPP project. It will help
component, resulting in each bidder submitting their in the systematic regularisation of estimating tasks for the
own distinctive design proposals. Thus, in PPP project PPP consortia bids.
delivery only a few design and specification documents
The terms used in the model are explained in the Table
are developed at the pre-tender stage (EOI and RFP
6.1. These terms must be read in conjunction with the
documentation), making detailed BIM-enabled cost
process model presented in Figure 5.
estimating an impracticable task.

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 BIM Execution Framework for early-stage estimating in PPP projects

Process protocol model for BIM-enabled estimating of capital construction cost

Figure 5 of PPP projects

PPP bidding documents Document

Decision

Missing data
Data
Review of PPP documents
Process
Function

Database
Yes Check for contradicting/ Function with
Clarify contradictions
& revise missing information manual input

No

Develop schedule of Industry standards/norms

functional areas

Cost/m2 rate of
functional areas
Check for agreement No Agree on aligning
on aligning model objects with model objects with
cost data formats cost data formats
Prepare preliminary
cost plans Yes

Design model in a BIM

authoring software

Translated BIM into a chosen Update BIM

Take Off/
5D cost modelling software
Quantification

Cost model/Estimate
Update Cost model/Estimate

Unit cost database Cost checks and negotiations

within PPP sponsor consortium

Subcontractor Check for agreement Yes

cost information on cost reductions

No

Check for
compliance with price No
guidelines/Quotas

Yes

Detailed cost estimate

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Table 6.1 Definition of terms for process protocol model for BIM-enabled estimating projects

Term used in model Definition/brief description

PPP bidding documents PPP bidding documents usually include project-related documents in connection with design,
specifications, specific performance requirements, relevant standards, project schemes
and relevant state or government PPP guidelines on joint venture consortia, bidding process,
procurement and overall PPP framework applicable to the project. The constituents of the bidding
1 documents and the amount of the details included in PPP bidding documents may vary from
project type, procurement arrangement, client organisation, geographical location and many
other factors. PPP bidding documents are generally obtained from authorised private consultants
(PPP advisory) or directly from public authority clients.

Review PPP bidding PPP bidding documents are reviewed and checked by all partners of the PPP sponsor consortium
documents including financier, construction contractor and facilities management contractor to determine
if there is missing information that would be vital for bidding. Construction contractors may have
2 their own teams including design, cost and management sub-consultants and various specialised
subcontractors. PPP sponsor consortium liaise with authorised private consultants (PPP
advisory) and public sector authority regarding clarifications on missing information.

Check for contradicting/ Similar checking process as described in above 2 is carried out for contradicting information
3 missing information as well.

Clarify contradictions PPP sponsor consortium liaise with authorised private consultants (PPP advisory) and public
sector authority regarding clarification on contradicting information. After clarifications are
4 and revise
made, relevant documents are revised as applicable. This process is continued until no further
contradiction is found.

Missing data Missing data is obtained from respective sources of information and issued to PPP sponsor
5 consortium by authorised private consultants (PPP advisory) or public sector authority once
clarifications are made.

Develop schedule of The initial schedule of functional areas of the proposed project is developed based on drawings,
specifications, applicable industry standards and norms. As for example, in cases of a school
6 functional areas
project, schedule of areas of classrooms, libraries, staff facilities, sports facilities etc., are
developed based on prevailing industry standards and norms.

Industry standards, There are various prevailing standards and norms applicable to project types, specific
7 norms etc. functions, geographical locations etc. that are utilised in deriving schedule of functional
areas of PPP projects.

Cost/m2 rate of Cost/m2 rates of functional areas are obtained from historical database information, price books,
8 functional area subcontractor quotations etc.

Prepare preliminary This is a very high-level cost plan/estimate, which is prepared to establish the framework cost
9 cost plan for the proposed PPP project. This preliminary cost plan also provides a guideline for cost control
during design development.

Check for agreement on It is important to ensure whether the design team (including BIM manager) and cost planning
team are in agreement on aligning model objects with cost data formats to have compatibility
10 aligning model objects
between BIM model objects and cost data formats.
with cost data formats

Agree on aligning model Agreement between design team (including BIM manager) and cost planning team is expected in
aligning model objects with cost data formats. This would save the time in estimating and helps to
11 objects with cost data
enhance the efficiency of the process.
formats

Design model in a BIM 3D-type BIM is created using information from PPP bidding documents in BIM authoring software.
At this stage, due consideration is given to factors such as construction approach, resource
12 authoring software
planning, complexities of design components, clash detection, programme etc., that would have
direct impacts on project cost.

Translated BIM into Once the translation is done, the model is analysed and reviewed for completeness. 3D
a chosen 5D cost visualisation and virtual reality walk-throughs of the BIM can be used to keep the project team and
client informed of the construction scenario, design, activities etc. Simulated BIM helps to control
modelling software
13 design and value engineering facilitating project costs to be within the framework cost.
BIM data can automatically be exported into bills of quantities templates of computer aided
estimating software. 5D cost model is derived by attaching time scale (to become 4D) and overlay
of costs (to become 5D) to a 3D model.

continued

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 BIM Execution Framework for early-stage estimating in PPP projects

continued

Term used in model Definition/brief description

Take off/Quantification This process might not be required with some cost modelling software, which automatically
perform the quantification function. However, in some cases, components, materials, plant and
14 equipment and other resources might be required to quantify and cross-check before mapping to
cost database for costing. Apart from that, quantification is executed if BIM data is required to be
manipulated to align with successive construction operations, phases, methods etc.

15 Cost model/Estimate Cost model/estimate is derived applying unit rates to quantities on desirable templates.

Unit cost database Unit rates of bills of quantity items are obtained from various cost databases, price books, etc.
16 These rates are verified through various industry price information sources and subcontractor
quotations.

Subcontractor cost Cost information on specialised trades/elements is obtained through quotations or price lists
17 information from nominated subcontractors/subcontractors.

Cost checks and This involves cost checks and negotiations within members of the PPP sponsor consortia towards
seeking agreement on cost reductions. These cost reductions could be achieved by means of
18 negotiations within PPP
changes to designs, specifications, programmes, rates, overheads and profits etc.
sponsor consortium

Check for agreement on This is seeking the agreement on cost reductions subsequent to the process carried out in
19 cost reductions 18 above.

Check for compliance Prior to finalisation of the estimate, which represents the capital construction cost segment
of the collective bid proposal, further checks are made to see whether the final estimate is in
20 with Price guidelines/
conformity with Price guidelines/Quotas issued by PPP clients.
Quotas

Update Cost Model/ Cost Model/Estimate is updated based on negotiated cost reductions within PPP sponsor
21 Estimate consortium and/or if the Cost model/Estimate does not comply with Price guidelines/Quotas.

22 Update BIM BIM model is updated, if the cost reductions result in design changes.

Detailed cost estimate This is the estimate of the capital construction cost, which is included in the bidding price (among
23 other price components) of the PPP sponsor consortium

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6.2.1 The usage of the process protocol Thus, the following guidelines (Table 6.2) offer useful
model for BIM-enabled estimating insights for practitioners on how to use the model in
their respective PPP project environments. The guideline
The process model is intended to be used for BIM- begins with hiring a BIM Manager by a member of the PPP
enabled estimating practice in UK, Australia and China Consortia who is responsible for design, construction,
for PPP projects. However, with each country having its cost management and project management. Their role is
own policies, practices and procedures for PPP project to guide the estimating process utilising the BIM-enabled
execution, caution should be taken to adapt it suitably. estimating process protocol developed.

Table 6.2 Guidelines on using the model

Responsible Team Member/ Members

Activity (Designations may vary based on project/country)
At the start:
Appoint a BIM manager to implement the BIM-enabled Project Manager/Project Lead
estimating process
(Identified as a best practice in BIM-enabled estimating
practices in PPP projects in Section 7.2 of the report)

Evaluate model steps against PPP project practices, policies BIM Manager, Project Manager, Design Manager and Cost Manager
and requirements

Identify practices, policies and requirements, those that deviate BIM Manager, Project Manager, Design Manager and Cost Manager
from the model and decide on how to deal with differences

Prepare coordinated BIM execution plan in line with model BIM Manager, Project Manager, Design Manager and Cost Manager
steps (as applicable) for designing and estimating processes

Inform each project participant of the model process and their BIM Manager, Project Manager, Design Manager and Cost Manager
role and responsibilities

During the process:

Manage the overall process in accordance with model steps BIM Manager
(as applicable)
(This includes coordinating, directing, leading the team and
controlling and facilitating the process)

At the end:
Identify deviated practices from the model process and offer BIM Manager, Project Manager, Design Manager and Cost Manager
recommendations for future practitioners on:
• measures to be followed to comply with the modelled
process without deviations
• possible minor amendments to the modelled process,
where compliance is challenging

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 BIM Execution Framework for early-stage estimating in PPP projects

6.2.2 Validation of model Overall outcome of the Expert Forum Round -2 (Table 6.4)
justifies model satisfaction (first column) validation results
In order to validate the model (from Expert Forum Round
obtained from Expert Forum Round -1, those range
-1), experts from all three countries were invited to rank their
from 3 (Good/Satisfactory) to 4 (Very Good), indicating
extent of agreement with the model. Table 6.3 shows the
their acceptance of the model for its intended practice
overall results for their agreement with the model validation
in PPP projects.
outcome. As shown in the table, the extent of agreement
(second column) mean scores obtained for the overall top In addition, respondents strongly agree on the initial
five rankings range from 4 (Agree) to 5 (strongly agree). validation outcome which is “Very Good” regarding overall
Specifically, respondents strongly agree on the initial satisfaction/benefits which could be achieved in using
validation outcome which is “Very Good” with regard to BIM-enabled estimating over traditional estimating practice
flowing aspects of the model: in PPP projects. This outcome justifies furthermore, the
high anticipation and optimism of the industry experts
a. Comprehensiveness and adequacy of the model
regarding BIM-enabled estimating in PPP projects.
in representing every step of the BIM-enabled
estimating process
b. Ease of understanding the model for use in guiding the
process of cost estimating

Table 6.3 Extent of agreement results on overall satisfaction (Expert Forum Round - 1 Outcome)

Overall Satisfaction Extent of Agreement

(Expert Forum Round with Expert Forum
-1 Outcome) Round -1 Outcome
Mean score Mean score
(round off to (round off to
the nearest the nearest
Model Validation Aspects/Questions whole unit) Interpretation whole unit) Interpretation
Does the Model comprehensively and
adequately represent every step of the
1 BIM-enabled estimating process adopted 4 Very Good 5 Strongly Agree
by PPP sponsor consortia in estimating
Cost of PPP projects?
Can the Model be easily understood and used
2 by PPP sponsor consortia in guiding the 4 Very Good 5 Strongly Agree
process of cost estimating of PPP projects?
Can PPP sponsor consortia achieve efficiency
Good/
3 in estimating the cost of PPP projects, if the 3
Satisfactory
4 Agree
Model is carefully followed?
How do you rate the overall applicability of Good/
3 4 Agree
the Model in your country? (All countries) Satisfactory

UK 4 Very Good 4 Agree

4 Good/
Australia 3
Satisfactory
5 Strongly Agree

Good/
China 3
Satisfactory
4 Agree

How do you rate the overall satisfaction/

benefits (over and above traditional
estimating process) that can be achieved by
5 adopting a BIM-enabled estimating process
4 Very Good 5 Strongly Agree

to estimate cost of PPP projects (by PPP

sponsor consortia)?

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6.2.3 Validating the model amendments and

the final model
As explained in Section 6.2.1, the model was updated
and tested through Expert Forum Round - 2, with the
following objectives:
a. To obtain agreement on amendments done based on
Expert Forum Round -1 outcome
b. To obtain comments towards further improvements to
the model

Table 6.4 Results on extent of agreement on model update

Round 2 Response (Extent of your Agreement)

Validation Aspect/Question Mean Score

(rounded to the nearest
on Model Update UK Australia China whole number) Interpretation

Do you agree that the updated Model is an

improvement to the previous model in terms
of comprehensiveness, representation,
efficiency and ease of understanding of the 4 4.5 4 4 (Agree)
BIM-enabled estimating process adopted
by PPP sponsor consortia in estimating the
Capital Construction Cost of PPP projects?

Experts’ responses as indicated in Table 6.3 reveal that Overall results on model validation and model updates
they agree on the model update, which is intended to indicate that experts from the UK, Australia, and China
be an improvement in terms of comprehensiveness, agree that the model would provide a beneficial outcome
representation, efficiency and ease of understanding of to their respective countries in influencing efficient
the BIM-enabled estimating process adopted by PPP and effective cost estimating practice through BIM-
sponsor consortia in estimating the Capital Construction enabled cost estimating in PPP projects. This reveals
Cost of PPP projects. There were no further comments on high anticipation and optimism of the industry experts
further improvements on the model. Thus, the model as regarding BIM-enabled cost estimating in PPP projects,
indicated in Figure 5 (page 34) represents the final model which would inevitably become a driver for enhancing
for BIM-enabled Estimating Process for Estimating Capital BIM-enabled cost estimating in PPP projects.
Construction Cost of PPP projects.

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 BIM Execution Framework for early-stage estimating in PPP projects

7.0 BIM Execution

Framework for
estimating in
PPP projects
The BIM Execution Framework for Estimating in PPP
projects (BEFEP) consists of three main components.
1. Process protocol model for BIM-enabled estimating
2. Drivers and barriers for implementing BIM-enabled
estimating in PPP projects
3. Best practice guidelines for BIM-enabled estimating
The first component of the framework was presented in
the previous section (6.2). The remaining two components
of the framework are presented here.

7.1 Drivers and barriers for BIM-

enabled estimating practice in
PPP projects
Drivers and barriers for BIM-enabled estimating were first
identified through a literature review and then subsequently
expanded through case study interviews of experts
covering UK, Australia and China. These were further
expanded and refined through the international expert
forum following an iterative Delphi-based process.

7.1.1 Drivers for implementing BIM-enabled

estimating practice in PPP in the UK,
Australia and China
Drivers are defined as factors that help and encourage the
adoption of BIM for estimating purposes in PPP procured
projects. The following sections evaluate these barriers
from the perspectives of estimating experts in each of the
countries in this research.

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7.1.1.1 The UK Ranking of drivers by UK

Table 7.1 PPP experts
The rankings for the drivers for implementing BIM-enabled
estimating in PPPs are shown in Table 7.1. As presented in
the table, the set of 20 drivers have mean values ranging
between 2.25 and 4.25. Furthermore, they are ranked
UK
from 1st to 8th. Interestingly, four drivers emerged as the Drivers for implementing BIM-
top two. Specifically, two are ranked first and two are enabled estimating practice in PPP Mean
ranked second. The top two drivers, with mean scores of in the local construction Industry Score Rank
4.25, are ‘Government pressure towards better practices’ Government pressure towards
4.25 1
and ‘Easier communication and collaboration between better practices
all stakeholders’. The joint-second ranked drivers were
Easier communication and
‘Cost savings and increased efficiency in monitoring with
collaboration between all 4.25 1
reduction of requests for information’ and ‘Greater access stakeholders
to information enabling earlier input into feasibility, planning,
design, costs and environmental assessment’. Cost savings and increased
efficiency in monitoring with
3.75 2
It is not surprising that government pressure is ranked very reduction of requests for
critical in the UK. This is because the UK government has information
made it mandatory for all publicly-funded projects to use a Greater access to information,
Level 2 BIM (Efficiency and Reform Group, 2011). Although enabling earlier input into feasibility,
3.75 2
this policy is geared towards traditional-bid-build projects planning, design, costs and
as they are often funded by the government, PPP projects environmental assessment
are also possibly to be included in the future. BIM certainly Client/competitive pressure 3.50 3
offers many benefits in early cost estimating; therefore,
it has become essential for governments to encourage Improving the capacity to provide
3.50 3
all stakeholders in the construction industry to adopt whole life value to client
BIM in public projects including PPP infrastructure. PPP Time savings in the preparation of
3.50 3
projects usually have a large group of stakeholders with cost estimates
multifaceted objectives (Zou et al. 2016). Importantly, the
Accurate construction sequencing
effective management and coordination of the numerous 3.50 3
and clash detection
participants in a PPP project are essential to the success
of the project (Osei-Kyei and Chan, 2015; Cheung et BIM increases the accuracy in the
al. 2012). With the use of BIM, the large stakeholder of quantity take-off, especially at the 3.50 3
early stage of the design
PPP projects can be effectively managed by enhancing
communication and interaction. BIM application can Automation of schedule/register
3.25 4
help practitioners to communicate and resolve planning generation
issues quickly online. Furthermore, all parties can make Facilitating facilities management
a contribution to the design without necessarily meeting 3.25 4
activities
physically. These indeed enhance collaboration and foster
Reducing variability in cost
team coordination. 3.25 4
estimates
Desire for innovation to remain
3.00 5
competitive
It allows precise future prediction of
3.00 5
the construction costs
Improved financial forecasting 3.00 5

Facilitating increased pre-fabrication

2.50 6
with information-rich BIM
Improving built output quality 2.50 6

Streamlining design activities and

2.38 7
improving design quality
Designing health and safety into the
2.25 8
construction process
Improving communication with
2.25 8
operatives

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 BIM Execution Framework for early-stage estimating in PPP projects

7.1.1.2 Australia Ranking of drivers by

Table 7.2 Australia PPP experts
Table 7.2 shows the ranking of the drivers for implementing
BIM-enabled estimating in PPPs for Australia. The top
three drivers in rank order are ‘Desire for innovation to
remain competitive’, ‘Accurate construction sequencing
Australia
and clash detection’ and ‘Time savings in the preparation Drivers for implementing BIM-
of cost estimates’. enabled estimating practice in PPP Mean
in the local construction Industry Score Rank
‘Desire for innovation to remain competitive’ is ranked
first with a mean value of 4.0. This driver implies the Desire for innovation to remain
4.00 1
competitive
enthusiasm of practitioners or companies to remain at
the forefront of innovation. Local PPP practitioners and Accurate construction sequencing
3.50 2
consortia in Australia aspire to be at the forefront of BIM and clash detection
implementation. Also, BIM is seen by local practitioners as Time savings in the preparation of
the means to remain competitive and be innovative in the 3.00 3
cost estimates
PPP market. Moreover, a consortium that adopts BIM in
PPP estimating is seen as more ‘visionary’ and ‘purposeful’ Government pressure towards
2.50 4
better practices
(Ruikar et al, 2005). Therefore, there is an urgency and
aspiration by local practitioners in the Australian PPP Client/competitive pressure 2.50 4
market to adopt BIM for PPP cost estimating.
Facilitating increased pre-fabrication
2.50 4
with information-rich BIM
Greater access to information,
enabling earlier input into feasibility,
2.50 4
planning, design, costs and
environmental assessment
Designing health and safety into the
2.00 5
construction process
Cost savings and increased
efficiency in monitoring with
2.00 5
reduction of requests for
information
Improving communication with
1.75 6
operatives
Automation of schedule/register
1.75 6
generation
Facilitating facilities management
1.75 6
activities
Improved financial forecasting 1.75 6

Easier communication and

collaboration between all 1.75 6
stakeholders
Improving the capacity to provide
1.50 7
whole life value to client
Streamlining design activities and
1.50 7
improving design quality
Improving built output quality 1.50 7

BIM increases the accuracy in the

quantity take-off, especially at 1.25 8
the early stage of the design
Reducing variability in cost
1.25 8
estimates
It allows precise future prediction of
0.75 9
the construction costs

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7.1.1.3 China Ranking of drivers by

Table 7.3 China PPP experts
Table 7.3 shows the rankings of the drivers for
implementing BIM-enabled estimating in PPPs in
China. The top three drivers in rank order are ‘Desire
for innovation to remain competitive’, ‘Improving the
China
capacity to provide whole life value to client and Facilitating Drivers for implementing BIM-
increased pre-fabrication with information-rich BIM. enabled estimating practice in PPP Mean
in the local construction Industry Score Rank
‘Desire for innovation to remain competitive’ is ranked
first with a mean value of 4.75. Essentially, because of Desire for innovation to remain
4.75 1
the competitive nature of the Chinese PPP markets, local competitive
construction firms are forced to be innovative to gain Improving the capacity to provide
4.50 2
competitive advantage in the market. In this regard, BIM whole life value to client
technology is highly used in the Chinese construction
Facilitating increased pre-fabrication
industry. The use of BIM technology in Chinese PPP 3.88 3
with information-rich BIM
projects usually puts local construction firms at the
forefront of innovation and, in recent years, Chinese Client/competitive pressure 3.75 4
local construction firms have boosted their innovation Accurate construction sequencing
3.75 4
by adopting virtual reality technologies in the delivery and clash detection
of projects.
Automation of schedule/register
3.63 5
generation
Easier communication and
collaboration between all 3.63 5
stakeholders
Streamlining design activities and
3.50 6
improving design quality
Cost savings and increased
efficiency in monitoring with
3.50 6
reduction of requests for
information
Government pressure towards
3.25 7
better practices
Time savings in the preparation of
3.25 7
cost estimates
Designing health and safety into the
3.00 8
construction process
Improving communication with
3.00 8
operatives
Facilitating facilities management
3.00 8
activities
BIM increases the accuracy in the
quantity take-off, especially at the 3.00 8
early stage of the design
Greater access to information,
enabling earlier input into feasibility,
2.75 9
planning, design, costs and
environmental assessment
Improving built output quality 2.25 10

It allows precise future prediction of

2.25 10
the construction costs
Reducing variability in cost
2.25 10
estimates
Improved financial forecasting 1.25 11

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 BIM Execution Framework for early-stage estimating in PPP projects

7.1.1.4 Overall ranking and comparison ‘Desire for innovation to remain competitive’ is ranked
of drivers for implementing BIM-enabled first with a mean value of 3.92. It is also ranked first by
the Australian and Chinese respondents, whereas the
estimating practice in PPP among the three UK respondents ranked it fifth. This outcome shows that
countries the Australian and Chinese experts considered this driver
Table 7.4 presents the overall rankings of the drivers for more important than their UK counterparts. This outcome
implementing BIM-enabled estimating practice in PPP by is not very surprising because the UK PPP market is not
all respondents. Included in the table are the rankings for as competitive as the Australian and Chinese markets.
each country for the purpose of comparison. This could be as a result of the well matured and
developed UK PPP market compared to the other two
The top three rankings in order are ‘Desire for innovation countries. In Australia and China, local investors face
to remain competitive’, ‘Accurate construction sequencing fierce internal rivalry. In this regard, there is an urgency
and clash detection’ and ‘Government pressure towards for local investors and PPP consortia to be innovative to
better practices’. remain competitive.

Table 7.4 Ranking of drivers by all respondents (UK, Australia and China)

Drivers for implementing BIM-enabled estimating practice in PPP in the UK Australia China Overall
local construction Industry Average Average Average Average Rank

Desire for innovation to remain competitive 3.00 4.00 4.75 3.92 1

Accurate construction sequencing and clash detection 3.50 3.50 3.75 3.58 2

Government pressure towards better practices 4.25 2.50 3.25 3.33 3

Client/competitive pressure 3.50 2.50 3.75 3.25 4

Time savings in the preparation of cost estimates 3.50 3.00 3.25 3.25 4

Easier communication and collaboration between all stakeholders 4.25 1.75 3.63 3.21 5

Improving the capacity to provide whole life value to client 3.50 1.50 4.50 3.17 6

Cost savings and increased efficiency in monitoring with

3.75 2.00 3.50 3.08 7
reduction of requests for information
Greater access to information, enabling earlier input into
3.75 2.50 2.75 3.00 8
feasibility, planning, design, costs and environmental assessment
Facilitating increased pre-fabrication with information-rich BIM 2.50 2.50 3.88 2.96 9

Automation of schedule/register generation 3.25 1.75 3.63 2.88 10

Facilitating facilities management activities 3.25 1.75 3.00 2.67 11

BIM increases the accuracy in the quantity take-off, especially at

3.50 1.25 3.00 2.58 12
the early stage of the design
Streamlining design activities and improving design quality 2.38 1.50 3.50 2.46 13

Designing health and safety into the construction process 2.25 2.00 3.00 2.42 14

Improving communication with operatives 2.25 1.75 3.00 2.33 15

Reducing variability in cost estimates 3.25 1.25 2.25 2.25 16

Improving built output quality 2.50 1.50 2.25 2.08 17

It allows precise future prediction of the construction costs 3.00 0.75 2.25 2.00 18

Improved financial forecasting 3.00 1.75 1.25 2.00 18

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7.1.1.5 Validation of the overall rankings

of drivers for implementing BIM-enabled
estimating practice
Table 7.5 shows the overall validation results for the top
five rankings of drivers for implementing BIM-enabled
estimating practice in PPP. As shown in the table, the
mean scores obtained for the overall top five rankings
range from 3 (undecided) to 5 (strongly agree). Specifically,
‘Desire for innovation to remain competitive’ and ‘Client/
competitive pressure’ received a score of 5, which implies
that respondents from the three countries strongly agree
on the position of the two drivers and their inclusion in the
top five rankings.
‘Accurate construction sequencing and clash detection’
and ‘Improving the capacity to provide whole life value
to client’ received a score of 4. This also means that the
experts agree on their inclusion in the top five overall
rankings and their respective positions. This is not very
surprising because BIM is well noted for providing reliable
outputs on construction sequencing and clash detection.
‘Automation of schedule/register generation’ received a
score of 3, which means that respondents were not fully
convinced that it should be ranked third. Nonetheless,
BIM provides automation of register generation therefore it
makes it easier for PPP practitioners to estimate the cost
of PPP projects.

Validation results of overall top 5 rankings of drivers for implementing BIM-enabled

Table 7.5 estimating practice in PPP

UK Australia China
Rank Overall Ranking for UK/Australia/China Average Average Average Overall Average

5
1 Desire for innovation to remain competitive 4.00 5.00 4.33
(Strongly agree)
4
2 Accurate construction sequencing and clash detection 4.00 3.50 4.33
(Agree)
3
3 Automation of schedule/register generation 4.00 2.50 3.67
(Undecided)
4
4 Improving the capacity to provide whole life value to client 5.00 3.00 4.33
(Agree)
5
5 Client/Competitive pressure 4.00 5.00 4.67
(Strongly agree)

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 BIM Execution Framework for early-stage estimating in PPP projects

7.1.2 Barriers to the adoption of Table 7.6

Ranking of barriers by UK
PPP experts
BIM-enabled estimating practice
in the UK, Australia and China UK
Barriers are defined as factors that inhibit the adoption of Barriers for implementing BIM-
BIM for estimating purposes in PPP procured projects. enabled estimating practice in PPP Mean
The following sections evaluate these barriers from in the local construction Industry Score Rank
perspectives of estimating experts in each of the
Technological issues 4.00 1
countries in this research.
Inadequate relevant knowledge and
3.50 2
7.1.2.1 UK expertise in using BIM

Table 7.6 shows the results on the ranking of barriers by Poor information sharing and
3.50 2
collaboration issues
the UK experts. Four barriers emerged as the top three.
Two of these barriers are ranked second. The barriers Low quality of BIM data 3.00 3
include: ‘Technological issues’, ‘Inadequate relevant Cultural resistance for using new
knowledge and expertise in using BIM’, ‘Poor information 2.50 4
technologies like BIM
sharing and collaboration issues’ and ‘Low quality of BIM
data’. The first ranked barrier is ‘Technological issues’ BIM data ownership issues including
2.50 4
data security
with a mean value of 4.00. Technological issues refer to
the lack of BIM protocols such as client-specific protocols Implementing BIM is expensive/
2.50 4
for estimating the cost of PPP projects. The absence Cost overrun with BIM
of detailed BIM protocol for PPP estimating hinders the Lack of a check mechanism
2.00 5
urgency to adopt BIM for PPP estimating. Although there for designs
could be some BIM protocols in existence, these are not
Liability issues including professional
specifically designed for PPP projects. The technological licensing, design liability and
interface among programs also contributes to the 2.00 5
vulnerability to changes of BIM by
technological challenges in the use of BIM for PPP cost unauthorised parties
estimating. BIM requires many interrelated and cross-
Incompatibility between BIM data
referenced information and interfaces, and these pose a 2.00 5
and standard practices
lot of technological challenges. Estimating PPP project
costs requires a lot of information and it is often difficult Culture of adoption 1.00 6
to acquire the information needed to input into the BIM-
enabled estimating application.

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7.1.2.2 Australia Ranking of barriers by

Table 7.7 Australia PPP experts
Table 7.7 shows the rankings furnished by experts from
Australia. The rankings of the 10 set of barriers range
from first to sixth. The top three barriers are; ‘Inadequate
relevant knowledge and expertise in using BIM for PPP
Australia
estimating’, ‘Cultural resistance for using new technologies Barriers for implementing BIM-
like BIM’, ‘Incompatibility between BIM data and standard enabled estimating practice in PPP Mean
practices’ and ‘Liability issues including professional in the local construction Industry Score Rank
licensing, design liability and vulnerability to changes of Inadequate relevant knowledge
5.00 1
BIM by unauthorised parties’. These barriers have mean and expertise in using BIM
values ranging between 3.50 and 5.00.
Cultural resistance for using new
4.00 2
‘Inadequate relevant knowledge and expertise in using technologies like BIM
BIM for PPP estimating’ is ranked first by the Australian Incompatibility between BIM data
experts with a mean value of 5.0. Undoubtedly, Australia 4.00 2
and standard practices
has one of the most developed PPP markets in the
world, however, the use of BIM for estimating in PPP Liability issues including professional
licensing, design liability and
projects is still emerging and has not properly developed. 3.50 3
vulnerability to changes of BIM by
This is partially attributable to the low levels of BIM unauthorised parties
adoption in general construction practice. Although many
Australian PPP practitioners have a wealth of experience Low quality of BIM data 3.00 4
and knowledge in PPPs, the application of BIM in Poor information sharing and
3.00 4
estimating cost at the early stages of PPP projects has collaboration issues
not properly been explored and developed. Most of the
Lack of a check mechanism
local practitioners are yet to understand the issues and 3.00 4
for designs
practices involved in using BIM. This is quite unsurprising
because BIM is a little complex and its application in PPP Technological issues 2.00 5
estimating requires a thorough understanding and years BIM data ownership issues including
of training and practice. 2.00 5
data security
Implementing BIM is expensive/
1.50 6
Cost overrun with BIM

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 BIM Execution Framework for early-stage estimating in PPP projects

7.1.2.3 China Ranking of barriers by

Table 7.8 China PPP experts
The rankings of the barriers by the Chinese respondents
is shown in Table 7.8. Four barriers emerged as the top
three ranked barriers among the set of the 10 barriers.
The top ranked barriers are ‘Technological issues’,
China
‘Inadequate relevant knowledge and expertise in using Barriers for implementing BIM-
BIM’, ‘Implementing BIM is expensive/Cost overrun with enabled estimating practice in PPP Mean
BIM’ and ‘Low quality of BIM data’. in the local construction Industry Score Rank

‘Technological issues’ is ranked first by the Chinese Technological issues 4.17 1

respondents. It has a score of 4.17. As mentioned Inadequate relevant knowledge and
3.83 2
earlier, the lack of protocols and technological interface expertise in using BIM
among programs are the major technological challenges
Implementing BIM is expensive/
associated with the use of BIM for cost estimating in 3.83 2
Cost overrun with BIM
PPP projects. Like other countries including the UK and
Australia, China does not have a clear BIM protocol Low quality of BIM data 3.67 3
designed to suit the characteristics and features of PPP Lack of a check mechanism
projects in cost estimating and this impedes the effective 3.50 4
for designs
adoption of BIM for PPP cost estimating.
Liability issues including professional
licensing, design liability and
3.50 4
vulnerability to changes of BIM by
unauthorised parties
Incompatibility between BIM data
3.50 4
and standard practices
BIM data ownership issues including
3.17 5
data security
Cultural resistance for using new
2.50 6
technologies like BIM
Poor information sharing and
2.17 7
collaboration issues

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7.1.2.4 Overall ranking and comparison

of barriers for implementing BIM-enabled
estimating practice in PPP among the
three countries
Table 7.9 shows the overall ranking of responses by the
UK, Australian and Chinese PPP experts. The top three
barriers ranked by all respondents are ‘Inadequate relevant
knowledge and expertise in using BIM’, ‘Technological
issues’ and ‘Low quality of BIM data’. ‘Inadequate relevant
knowledge and expertise in using BIM’ is ranked first with
a mean value of 4.11. Also, it received a mean score of
5.00 for Australia (1st), 3.50 for the UK (2nd) and 3.83 for
China (2nd). This shows that the Australian respondents
ranked this barrier higher than their counterparts from
China and the UK. This outcome is not surprising because
BIM implementation has been quite well adopted and
implemented in China and the UK compared to Australia.
In this regard, the level of knowledge by practitioners in
Australia on how BIM can be used for PPP cost estimating
is high compared to China and the UK. Nonetheless, the
overall ranking shows that inadequate relevant knowledge
and expertise in using BIM for PPP cost estimating is high
in all the three countries.

Table 7.9 Rankings of barriers by all respondents

Barriers for implementing BIM-enabled estimating practice in PPP in the UK Australia China Overall
local construction Industry Average Average Average Average Rank

Inadequate relevant knowledge and expertise in using BIM 3.50 5.00 3.83 4.11 1

Technological issues 4.00 2.00 4.17 3.39 2

Low quality of BIM data 3.00 3.00 3.67 3.22 3

Incompatibility between BIM data and standard practices 2.00 4.00 3.50 3.17 4

Cultural resistance for using new technologies like BIM 2.50 4.00 2.50 3.00 5

Liability issues including professional licensing, design liability

2.00 3.50 3.50 3.00 5
and vulnerability to changes of BIM by unauthorised parties
Poor information sharing and collaboration issues 3.50 3.00 2.17 2.89 6

Lack of a check mechanism for designs 2.00 3.00 3.50 2.83 7

Implementing BIM is expensive/Cost overrun with BIM 2.50 1.50 3.83 2.61 8

BIM data ownership issues including data security 2.50 2.00 3.17 2.56 9

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 BIM Execution Framework for early-stage estimating in PPP projects

7.1.2.5 Overall ranking and comparison five rankings of barriers for implementing BIM-enabled
of barriers for implementing BIM-enabled estimating practice. ‘Inadequate relevant knowledge and
expertise in using BIM’ and ‘Cultural resistance for using
estimating practice in PPP among the new technologies like BIM’ obtained a score of 5 which
three countries signifies that the experts strongly agree on their positions.
The overall rankings of barriers for implementing BIM- Similarly, ‘Incompatibility between BIM data and standard
enabled estimating in PPP were sent to experts for practices’ obtained a score of 4, which implies the experts
validation. Specifically, experts from the UK, Australia, agree on its position and inclusion in the top five rankings.
and China were invited to rate their level of agreement For two barriers, namely, ‘Technological issues’ and ‘Low
on the top five overall rankings of barriers. As shown quality of BIM data’, their scores are 3.0, which means that
in Table 7.10, the experts generally agree on the top the experts were undecided concerning their positions.

Validation results of overall top 5 rankings of barriers for implementing BIM-enabled

Table 7.10 estimating practice in PPP

UK Australia China
Rank Overall Ranking for UK/Australia/China Average Average Average Overall Average

1 Inadequate relevant knowledge and expertise in using BIM 5 5 4

5
(Strongly agree)

2 Technological issues 4 2 5
3
(Undecided)

3 Low quality of BIM data 3 2 4

3
(Undecided)

4 Incompatibility between BIM data and standard practices 5 3 4

4
(Agree)

5 Cultural resistance for using new technologies like BIM 5 5 4

5
(Strongly agree)

Liability issues including professional licensing, design liability 4

5 4 3 4
and vulnerability to changes of BIM by unauthorised parties (Agree)

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7.2 Best practices in BIM-enabled the key factors estimators should consider in developing
and designing estimating practices for BIM-enabled
estimating for PPP projects estimating in PPP projects. As presented in Table 7.11,
the best practices are divided into three major categories,
The BIM Execution Framework for estimating in PPP namely: Process, Practice and Policy.
projects comprises a component that highlights best
practices in BIM-enabled estimating. This section presents

Best practices in BIM-enabled estimating for PPP projects and their

Table 7.11 country-specific rankings

UK Australia China
Rank Best Practice Average Average Average Overall Average

Process
1 Prepare a list of bidding documents 4.00 5.00 3.50 4 (Agree)

2 Check for contradicting/missing information 4.00 5.00 4.00 4 (Agree)

3 Clarify contradictions and revise documents accordingly 4.50 5.00 4.00 5 (Strongly Agree)

Develop schedule of functional areas enabled on industry

4 4.00 5.00 3.50 4 (Agree)
standards and norms
Prepare preliminary cost plans enabled on similar cost
5 4.00 5.00 4.50 5 (Strongly Agree)
information
6 Appoint BIM manager to manage the BIM process 3.00 3.00 5.00 4 (Agree)

Check for agreement on aligning BIM model objects with cost

7 3.00 3.50 3.50 3 (Undecided)
data formats
8 Agree on aligning BIM model objects with cost data formats 4.00 3.50 4.00 4 (Agree)

Translate BIM model into a chosen 5D cost modelling software

9 4.00 5.00 4.50 5 (Strongly Agree)
which facilitate estimate/cost model in the required format
10 Liaise with sub-contractors to get direct cost information 4.00 3.50 4.50 4 (Agree)

Conduct cost checks and negotiations within PPP sponsor

11 consortium for possible cost reductions and update the 4.00 5.00 4.00 4 (Agree)
Cost model and BIM model enabled on the outcome
Check for compliance with price guidelines Quotas to be in line
12 5.00 5.00 4.00 5 (Strongly Agree)
with project budget

Practice
Make BIM-enabled cost management (including early stage
1 3.00 3.00 5.00 4 (Agree)
estimating) a client requirement
Particular conditions include references to National level BIM
2 guidelines, execution plans, etc as compulsory practices and 4.00 5.00 4.50 5 (Strongly Agree)
procedures to be adhered to
Amend standard forms of contracts to facilitate BIM practices
3 in construction contracts and BIM to be regarded as a 3.00 5.00 4.00 4 (Agree)
contract document

Policy
Government/Public Authorities to prepare BIM guidelines for
1 4.00 4.50 5.00 5 (Strongly Agree)
various practices like estimating
Professional Institutions to support BIM implementation in
2 5.00 5.00 4.50 5 (Strongly Agree)
construction practices and provide training

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 BIM Execution Framework for early-stage estimating in PPP projects

Best practices under the Process category are measures that

practitioners need to carefully consider when they are in the
process of using BIM for early-stage estimating. This includes
instructions such as developing a schedule of functional
areas based on industry standards and norms, liaising with
sub-contractors to get direct cost information, preparing
preliminary cost plans based on similar cost information etc.
Practice is the second category of the best practice guide.
It consists of practice that ensures the overall management
of the use of BIM in early-stage estimating in PPP projects.
Specifically, instructions under the Practice category inform
practitioners of the measures to take into consideration when
drafting PPP contracts and BIM guidelines. Examples of
best practices under this category include the amendment
of standard forms of contracts to facilitate BIM practices in
construction contracts and the development of BIM-oriented
contract documents. Best practices under Policy provide
measures on how governments and external stakeholders
could help to facilitate the use of BIM in early-stage estimating
in PPP projects.
The Australia and New Zealand BIM Best Practice
Guidelines published by the Australian Institute of Quantity
Surveyors and New Zealand Institute of Quantity Surveyors,
(2018), highlights best practice guidelines on following:
a. BIM process
b. What to expect from a BIM project (BIM as a contract
deliverable or non-contract BIM)
c. Team collaboration
d. BIM Execution Plan contents and its use
e. BIM contents and development process
f. BIM integration and validation
g. Legal considerations for use of BIM
These guidelines inevitably help to guide the identified best
practices in PPP projects in Australia. Furthermore, China
and the UK can also benefit if such guidelines are developed
as applicable to their particular construction industries.
After developing the checklist of best practices, experts
were invited to validate these practices. As shown in the
Table 7.11, the mean values for the best practices range
from 3 (undecided) to 5 (strongly agree). Essentially, the
majority of the best practices received a score of 5, which
implies the best practices are relevant and if they are
carefully followed by PPP practitioners, the use of BIM for
early estimating in PPPs will be highly successful. In other
words, practitioners are likely to have a successful outcome
if these best practices are carefully followed.

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8.0 Conclusions
8.1 PPP projects and the state of All countries had similar perceived benefits of BIM-enabled
early-stage estimating with increased accuracy of estimates,
construction industry better predictability and cost management, clash detection,
among others. The main concerns revolved around the
Governments worldwide are faced with satisfying increased mismatch of estimator requirements to BIM data outputs,
demand for social and physical infrastructure, exacerbated lack of skills, knowledge and capability to use BIM effectively
by population growth and urbanisation. But they face in estimating and legal issues related to BIM adoption
the dichotomy of balancing tax revenue with public and use among others. There was greater expectation for
spending and consequently seeking alternative sources of governments to intervene and promote BIM adoption, as is
funding. Using private capital for development of large- the case of UK.
scale infrastructure projects is an age-old concept but
received a new lease of life with the large-scale adoption The research proposed a BIM Execution Framework for
by the UK in the early 1990s, resulting in the advent of the Estimating in PPP projects (BEFEP) comprising three
Private Finance Initiative. The common term use for using components:
private capital for public sector projects is Public Private • A process protocol model for BIM-enabled estimating
Partnership (PPP).
• Drivers and barriers for implementing BIM-based
The onslaught of the 4th Industrial Revolution in the past estimating in PPP projects
decade saw the increased need for digitalisation in the
• Best practice guidelines for BIM-enabled estimating.
construction industry. The need is aggravated by the
construction industry being notoriously slow in digitalisation The aim of the model is to develop a process protocol for
(second last among all sectors). The past decade saw the BIM-enabled cost estimating specifically targeted at PPP
introduction of BIM as a primary way to achieve a stepwise projects. The model was developed in three stages of
change in the digitalisation of the construction industry. consultation with the industry experts and finally validated
However, the level of adoption of BIM is not universal and through the expert forum. The model will be a useful
significantly varies between subsectors of construction document to analyse estimating requirements in developing
and countries. With this backdrop this research aimed at an overall BIM Execution Plan for a PPP project.
investigating the use of BIM in early-stage estimating for
Drives and barriers for BIM-enabled early-stage estimating
PPP projects.
were evaluated for all three countries separately. The overall
ranking of drivers and barriers vary slightly in importance
8.2 Main research findings between the three countries. The top five validated drivers
in rank order are: Desire for innovation to remain
This research investigated the practice of early-stage competitive, Accurate construction sequencing and
estimating in PPP projects in the UK, Australia and China. clash detection, Automation of schedule/register
These three countries are seen as countries that have a generation, Improving the capacity to provide whole-life
fairly advanced and mature PPP practice. The primary value to client, and Client/competitive pressure.
methodology employed in this research was to conduct
organisational practice case studies corroborated through a In a similar way the top six barriers in rank order are:
Delphi-based international expert forum of PPP estimators. Inadequate relevant knowledge and expertise in
using BIM, Technological issues, Low quality of
The research revealed there are different levels of BIM BIM data, Incompatibility between BIM data and
usage in the three countries, with the UK having the standard practices, Cultural resistance for using
highest and most advanced level of usage followed by new technologies like BIM, Liability issues including
China and Australia. However, the problems faced in BIM professional licensing, design liability and Vulnerability
adoption were very similar in all countries. The UK and to changes of BIM by unauthorised parties.
Australia have very similar estimating practices (commonly
identified through the British Commonwealth practice of The research also identified seventeen best practice
quantity surveying). China has not yet fully transited to guidelines that were put into three categories as
market-oriented commercial management practices and Process, Practice and Policy. These are measures that
thus the legacy of quota-based estimating systems seems project managers, cost managers and BIM managers
prominent (see Perera et. al 2015 for more details of cost should consider in developing BIM Execution Plans for
management in China). estimating costs in PPP projects.

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 BIM Execution Framework for early-stage estimating in PPP projects

8.3 Recommendations The research found that BIM is not very practical at the
very early stage due to lack of adequate design detail.
This study provided a comprehensive review of early- But it can be used at consortia bid proposal stage
stage estimating in PPP projects and the use of BIM in onwards. However, a separate class of visual modelling
enhancing the estimating process. The review covered and cost estimating software is currently emerging (for
three of the most advanced users of PPP as a procurement example dRofus™ and DESTINI Profiler™). Although
approach for large-scale public sector social and physical these software do not generate a COBie (Construction-
infrastructure projects. Using the findings of this research Operations Building Information Exchange) or IFS
the following key recommendations are made. (Industry Foundation Classes) compliant BIM as such,
they are useful in understanding the concept of design
1. Adopt the BIM Execution Framework proposed in and cost implications from an early stage itself. The
this report and integrate it with the cost management interviewees for case studies indicated their use as well.
processes of each country. It is therefore recommended that further research should
2. Start implementing the use of BIM during the Project be carried out in evaluating the potential use of such
Development Phase to Request For Proposals Phase software for early-stage cost planning in large-scale
of PPP projects. projects including PPP projects.
3. Encourage or mandate the use of BIM and BIM- Greater levels of digitalisation are imminent in the progress
enabled estimates for consortia bids in PPP projects. of the construction industry, and PPP projects have a
4. Develop country-specific standards for BIM-enabled greater role in implementing digitalisation and promoting
estimating based on the process protocol proposed. such. Adoption of BIM provides a significant opportunity
to achieve greater digitalisation. The construction
5. Use the guidelines provided through drivers and industries of the UK, Australia and China are moving
barriers for BIM-enabled estimating in developing BIM towards greater levels of BIM adoption and 5D BIM, where
Execution Plans for projects. BIM provides an interface for estimating is already a reality.
6. Use the Best Practice Guide as a document providing This research puts forward a framework that enables
guidance and a checklist in writing BIM execution development of BIM execution plans for PPP projects to
plans for PPP projects. ensure efficient and effective BIM-enabled estimating at
7. Take steps in educating the workforce on BIM- early stages of PPP Projects.
enabled estimating with necessary training and
academic programmes.
8. Encourage public authorities and construction clients
to mandate BIM for projects considering the long-term
benefits that it generates for PPP projects.
9. Governments should take action to mandate
use of BIM in PPP type of public sector projects
considering the successes of the lead taken by the
UK government in this respect.
10. Explore the impact and possibilities of complementary
digitalisation technologies such as blockchains,
Internet of Things and big data analytics in achieving
greater levels of digitalisation in estimating and overall
construction procurement.

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10.0 Acknowledgements
RICS Research Trust awarded the research grant for the project
to Professor Srinath Perera (Director, Centre for Smart Modern
Construction) with further sponsorship from Glodon Company Ltd.,
in China.
Professor Yilin Yin (Tianjin University of Technology, China), Dr Lei
Zhou (Chairman, Shanghai Dragonboat Investment Management
Co., Ltd, China), Dr Nirodha Fernando (University of Salford) and
Dr Solomon Babatunde (Obafemi Awolowo University, Nigeria) were
the co-investigators of this international study.
Professor Perera led the research team comprising the co-
investigators and Project Researcher Ms Sadhana De Silva
(Chartered Quantity Surveyor), Dr Xiaohua Jin, Dr Robert Osei Kyei,
Dr Yingbin Feng from Western Sydney University, Dr Qijuan Liu from
Tianjin University of Technology, China.
Mr Qian Liu of Glodon Company Ltd and Mr Bingbing Zhang also
assisted in data collection for the project.
The Principle Investigator Professor Perera and the team take this
opportunity to thank many construction organisations from the
UK, Australia and China who provided data for the project. Further
special appreciation goes to the international team of experts who
provided invaluable service and time for the project. The research
team also wish to thank the RICS Research Trust and Gloden
Company Ltd for the project grant and sponsorship. The team
also acknowledge the resource and facilities provided by the four
universities (Western Sydney University, University of Salford,
Tianjin University of Technology and Obafemi Awolowo University).
The research findings were presented at the final research
dissemination workshop conducted as Western Sydney University
on 16 November 2018 where over 80 international delegates from
many countries attended.

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