18 management beating the bim scramble

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FRIDAY 24/02/2012 WWW.BDONLINE.CO.UK MANAGEMENT 18 GRAHAM DAVIES ([email protected]) TEL: 020 7560 4096 FAX: 0151 353 3501 4jobs.com LIZ BURKE ([email protected]) TEL: 020 7560 4096 FAX: 0151 353 3501 We have seen a number of bim software providers but we’re worried we don’t know enough about bim to make the right decision. What do you advise? Investing in bim and choosing the right system is a big decision. Getting it wrong can be a very expensive mistake, so it is worth getting to know more about bim. Bim software development and market uptake is currently equivalent to the “VHS/ Betamax” stage of the develop- ment of videos in the 1970s. There are competing software systems, some based on 2D and 3D cad systems, being over-sold as all-singing-all-dancing bim systems. So the first piece of advice is: be sceptical about any “snake oil” claims from software providers. Start by seeing bim not as a 3D drawing system or technical tool, but rather as an approach or a way of thinking. Bim is about integrated design, developing, visualising and testing a design in collaboration with the design team, suppliers, constructors and the client. This virtual proto- typing reduces mistakes and increases certainty of outcomes. This can lead to completely different forms of design processes, procurement and construction. For example, the RIBA is now working on radi- cally changing the RIBA Outline Plan of Work (Stages A to L) to take account of bim’s impact. Before thinking about “which bim system”, you should radically review how you can make your ways of working more effective, efficient and profitable. Do some Beating the bim scramble With building information modelling ever-more prevalent, our experts advise how to choose a system and the legal pitfalls to watch out for research on what clients, constructors, suppliers and other design professionals will need, as well as exploring the opportuni- ties that new technologies can bring. With bim you can be an information owner/manager/ synthesiser, not just the designer. Where do you see your future? Your investigations and knowledge building can include bim conferences, seminars, books and web-searches, talking to peers, looking at competitors and sampling bim systems. Also researching regulatory and procurement changes, such as the UK government’s declared intentions to use bim on all public construction projects with reduced carbon and improved performance. Then develop a game plan for the future of your practice, start- ing with improving your design and business processes. From that you will be able to develop a brief for what you want your bim system to do within these wider ambitions. Only then will you be able to test the available bim systems and make the right choice for your practice. We’ve read some horror stories about architects’ liability regarding bim. Is this just scaremongering or will bim make architects more vulnerable to being sued? Building information modelling shares project information between all those involved in designing a building, facilitating co-ordination of their input and making it easier to spot design problems. To this extent it could be seen as something that might reduce architects’ liability. However, there are potential legal problems. These largely arise from the way bim combines information from those involved in the project into a single model, blurring the lines between who has done what. The first issue surrounds who owns the bim model and the information within it. As designs from different consultants become part of the model, ownership of designs and infor- mation becomes much less clear. The employer may require the architect to retain overall design responsibility, but the architect may be unwilling. Other liability worries include potential failure of the software through corruption of informa- tion or incorrect processing, and confidentiality of information. Architects working on a bim project need to ensure contrac- tual documentation is clear on the issues above, delineates their areas of responsibility and risk, and addresses any future use that can be made of the bim model. It is also important to inform professional indemnity insurers that the architect is undertaking this type of work. In light of these issues, the insurance industry has had some concerns about the use of bim. However, in November the government announced it would trial a “no-fault” project insur- ance on a Ministry of Justice bim programme. DISCLAIMER This column is for general information only. It should not be relied on or treated as a substitute for specific legal advice relevant to particular circumstances. Neither BD nor the contributors’ employers accept any responsibility for the personal views expressed in this section. Professional Richard Brindley Executive director, RIBA Professional Services Legal Patrick Perry Partner with London law firm Barlow Lyde & Gilbert While the cost of bim software will vary according to an individual practice’s requirements, it is fair to say that it represents a substantial outlay and one that could have greater financial implications from April. Because the software will be used for a number of years How will investing in bim affect your tax bill? Moneywise Mark Twum-Ampofo Partner with chartered accountant Kingston Smith Now could be the best time for major capital expenditure. ILLUSTRATION : ANGELA SALT While the cost of bim software may well fall within this reduced allowance, you also need to consider all other capital items purchased in the it represents capital rather than revenue expenditure. This is important because of the way in which companies receive tax relief on their spend. Until the end of March, practices are entitled to an Annual Investment Allowance (AIA) enabling them to claim full tax relief on the first £100k of capital expenditure in a year. That means that for most architects the cost of purchasing bim software will be set against profits in the year of purchase. However, from April the AIA will decrease to £25,000. financial year — such as laptops, iPads and desks — which together could take you over the £25,000 threshold. The excess will be eligible for capital allowances which is a far less generous regime and only allows a firm to write off 20% of your expenditure against profits each year. Cash flow permitting, practices expecting to make the move to bim in the near future should consider whether it would be beneficial to make the investment before the end of next month in order to accelerate their tax relief.

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Page 1: 18 MANAGEMENT Beating the bim scramble

FRIDAY 24/02/2012 WWW.BDONLINE.CO.UK MANAGEMENT18

GRAHAM DAVIES([email protected])TEL: 020 7560 4096FAX: 0151 353 3501

4jobs.comLIZ BURKE([email protected])TEL: 020 7560 4096FAX: 0151 353 3501

We have seen a numberof bim software

providers but we’re worriedwe don’t know enough aboutbim to make the rightdecision. What do youadvise?

Investing in bim andchoosing the right system is

a big decision. Getting itwrong can be a very expensivemistake, so it is worth getting toknow more about bim.

Bim software developmentand market uptake is currentlyequivalent to the “VHS/Betamax” stage of the develop-ment of videos in the 1970s.There are competing softwaresystems, some based on 2D and3D cad systems, being over-soldas all-singing-all-dancing bimsystems. So the first piece ofadvice is: be sceptical about any“snake oil” claims from softwareproviders.

Start by seeing bim not as a 3Ddrawing system or technical tool,but rather as an approach or away of thinking. Bim is aboutintegrated design, developing,visualising and testing a designin collaboration with the designteam, suppliers, constructorsand the client. This virtual proto-typing reduces mistakes andincreases certainty of outcomes.This can lead to completelydifferent forms of designprocesses, procurement andconstruction. For example, theRIBA is now working on radi-cally changing the RIBA OutlinePlan of Work (Stages A to L) totake account of bim’s impact.

Before thinking about “whichbim system”, you should radicallyreview how you can make yourways of working more effective,efficient and profitable. Do some

Beating the bim scrambleWith building information modelling ever-more prevalent, our expertsadvise how to choose a system and the legal pitfalls to watch out for

research on what clients,constructors, suppliers and otherdesign professionals will need, aswell as exploring the opportuni-ties that new technologies canbring. With bim you can be aninformation owner/manager/synthesiser, not just the designer.Where do you see your future?

Your investigations andknowledge building can includebim conferences, seminars,books and web-searches, talkingto peers, looking at competitorsand sampling bim systems. Alsoresearching regulatory andprocurement changes, such asthe UK government’s declaredintentions to use bim on allpublic construction projects withreduced carbon and improvedperformance.

Then develop a game plan forthe future of your practice, start-ing with improving your designand business processes. Fromthat you will be able to develop abrief for what you want your bimsystem to do within these widerambitions. Only then will you beable to test the available bimsystems and make the rightchoice for your practice.

We’ve read some horrorstories about architects’

liability regarding bim. Is thisjust scaremongering or willbim make architects morevulnerable to being sued?

Building informationmodelling shares project

information between all thoseinvolved in designing a building,facilitating co-ordination of theirinput and making it easier to spotdesign problems. To this extent itcould be seen as something thatmight reduce architects’ liability.

However, there are potentiallegal problems. These largelyarise from the way bim combinesinformation from those involvedin the project into a single model,blurring the lines between whohas done what.

The first issue surrounds whoowns the bim model and the

information within it. As designsfrom different consultantsbecome part of the model,ownership of designs and infor-mation becomes much less clear.The employer may require thearchitect to retain overall designresponsibility, but the architectmay be unwilling.

Other liability worries includepotential failure of the softwarethrough corruption of informa-tion or incorrect processing, andconfidentiality of information.

Architects working on a bimproject need to ensure contrac-tual documentation is clear onthe issues above, delineates theirareas of responsibility and risk,and addresses any future use thatcan be made of the bim model. Itis also important to informprofessional indemnity insurersthat the architect is undertakingthis type of work.

In light of these issues, theinsurance industry has had someconcerns about the use of bim.However, in November thegovernment announced it wouldtrial a “no-fault” project insur-ance on a Ministry of Justice bimprogramme.

DISCLAIMER This column is for general information only. It should not be relied on or treated as a substitute for specific legal advice relevant to particularcircumstances. Neither BD nor the contributors’ employers accept any responsibility for the personal views expressed in this section.

Professional

Richard BrindleyExecutive director,RIBA ProfessionalServices

LegalPatrick PerryPartner with Londonlaw firm BarlowLyde & Gilbert

While the cost of bimsoftware will vary accordingto an individual practice’srequirements, it is fair to saythat it represents asubstantial outlay and onethat could have greaterfinancial implications fromApril.

Because the software willbe used for a number of years

How will investing in bim affect your tax bill?

MoneywiseMark Twum-AmpofoPartner with chartered accountantKingston Smith

Now could be the best time formajor capital expenditure.

ILLU

ST

RA

TIO

N :

AN

GE

LA

SA

LT

While the cost of bim softwaremay well fall within thisreduced allowance, you alsoneed to consider all othercapital items purchased in the

it represents capital ratherthan revenue expenditure. Thisis important because of theway in which companiesreceive tax relief on theirspend.

Until the end of March,practices are entitled to anAnnual Investment Allowance(AIA) enabling them to claimfull tax relief on the first £100kof capital expenditure in a year.That means that for mostarchitects the cost ofpurchasing bim software willbe set against profits in theyear of purchase.

However, from April the AIAwill decrease to £25,000.

financial year — such aslaptops, iPads and desks —which together could take youover the £25,000 threshold.

The excess will be eligiblefor capital allowances whichis a far less generous regimeand only allows a firm to writeoff 20% of your expenditureagainst profits each year.

Cash flow permitting,practices expecting to makethe move to bim in the nearfuture should considerwhether it would be beneficial to make theinvestment before the end ofnext month in order toaccelerate their tax relief.