1 min readBIM Builder: Should Contractors take on More Risk for Greater Returns?

Build Only Contracts continue to be the construction industry’s biggest deterrent to delivery of better and leaner buildings with greater certainty.

Owners expect that construction will cost more and take longer than promised because of design discrepancies and latent conditions. If this is true, then there is an opportunity for builders to offer a higher price for a Warranted Lump Sum as an alternative to a hard dollar build only contract.

For builders this is a huge leap because they sit in a highly price competitive market and experience says – build only contracts are always decided on price.

Tradition dictates that resolution of design inconsistencies is not a reasonable risk for a builder to carry without novation of the designers, but the establishment of BIM as a robust virtual design and construction (VDC) process means under-pricing of risk should be a thing of the past.

Fast and reliable tools now exist for interrogation, validation and review of extensive design information. BIM provides the greatest level of certainty the industry has ever known and at all levels of design and construction. If adopted early and the entire supply chain is engaged, it…