Richard Saxon, author of Growth Through BIM, discusses costs along the supply chain and the resulting fees that set up the industry competition.
When Maggie Thatcher outlawed RIBA fee scales, she did us a favour of sorts. British architects have been free to shape and price their services flexibly and are forced to work out their costs in order to negotiate. German and some other EU architects remain protected by their fixed service and fee model, and don’t understand their costs. So when BIM came along, we were free to redefine our services and fees; they were not. They are on the sidelines, not competing.
We are not, however, making a good job of charging for BIM services. Years of vicious downward pressure have produced a cowering mentality: there will always be an architect who will undercut you if you try to get better fees.
But BIM produces a new pattern of benefits and costs, and it does so progressively, the more experienced one gets. There is more effort needed to set up a job at stage 1, and a new role: to be the information manager for the team. There is more work in building the first model, at stage 2, than in old stage C. But at stages 4 and 5 there is far less to do. Stage 6 and 7 are newly defined.
The old fee scale assumed the production information workload was the biggest element — architects gave away their concept designs to win the production task — but actually, the brief and concept are the highest in value creation for the client, while the production stage is the lowest.
Depending on building type and how developed your practice library of elements is, there are big economies of time and effort to be captured. Working to PAS 1192-2 should greatly reduce reworking and client change. You will need to train your client to play it the BIM way, commissioning everyone properly and framing their plain language questions.
It would be a service to the profession for the RIBA to hold benchmarking sessions with experienced BIM users, teasing out where costs can rise and fall, who benefits along the supply chain and how client and contractor could be addressed in negotiation. The resultant advice would not be an illegal fee scale but a guide to a still-changing scene.
Quantity surveyors, who are the first ones asked by clients to advise on fees, need teaching some new norms.
Richard Saxon is the author of Growth Through BIM, written for BIS and available on the CIC website or at www.saxoncbe.com.
Original article can be viewed at: http://www.bdonline.co.uk/we-need-to-learn-to-make-bim-pay/5064659.article.