1

COST PLANNING AND CONTROL THROUGH 5D BUILDING

INFORMATION MODELING IN CONSTRUCTION INDUSTRY

Chong Kah Wee

INTRODUCTION

Cost planning and cost control is defined as a managerial process which must
be gone through in all project stages, involving different sectors and other
processes of a construction (Kern & Formoso, 2004). It is done to produce
cost information to support decision making in production development and
production control which also includes decisions related to finance,
profitability, timing, and quality in order to achieve the goals set for the
business (Kern & Formoso, 2006).
The cost planning is a system that requires full coordination of the project
from the inception stage until completion. The cost planning theory involves a
subset of the cost control system of a project. It is quite usual that the terms
cost planning and cost control overlap and is used concurrently (Ahmad,
2009). If cost control is not carried out for the duration of the contract, the
effectiveness of the cost planning at the pre-tender stages will be seriously
reduced. As mentioned by Cartlidge and Mehrtens (1982); Ashworth, Hogg,
and Higgs (2013); and Ahmad (2009), it is not only to determine the probable
cost of a building but to control the design development throughout the
project, and to provide the client with value for money.
Unfortunately, the reputation of the accuracy of the traditional methods of
cost management is not at all good. The traditional construction cost
estimating method more on ‘guesstimates’ because it due to assumptions of
the cost of time and materials (Cartlidge & Mehrtens, 1982). Cost control and
planning process have been found to be inconsistent, inaccurate and results in
poor cost management service provided by quantity surveyor (Azman, Abdul-
Samad, & Ismail, 2013). Due to this, the construction professional should
think way forward to improve the estimating accuracy and enhance further the
quality of estimating for construction project (Fung, Salleh, & Rahim, 2014).
Building information modeling has the potential to revolutionize the
quantity profession (Olatunji, Sher, and Gu, 2010). BIM is not just software;
it is both a technology and a process. It can be one of the tools for the purpose
2 Book Title (1 line only)

of produce useful data for building costs (Azhar, Khalfan, & Maqsood, 2012).
BIM software can provide estimating data and 3D visualization which can be
used by the quantity surveyor to produce a BQ in a suitable electronic format
(Nadeem, Wong, & Wong, 2015). By using BIM technology, it is believed
that BIM can benefit the quantity surveying practice by improving the
estimate in a quicker, accurate, and reduce potential for human error.
This research is intended to the examine the potential of 5D BIM to be
applied as a part of the cost management process and to improve the cost
control and planning practice throughout the construction project from pre-
contract stage until post-contract stage. The industry should embrace the new
opportunities and benefits provided by this new technology, i.e BIM.

LITERATURE REVIEW

Cost Planning and Control

Cost is the most important consideration in a construction project. The

quantity surveying profession which employed to provide financial advice in
the construction and development work is commonly known as the cost
planning and control of buildings (Wanyona, 2005). The cost planning starts
from the inception stage of the project until the project is handed over to the
contractor for construction (Ahmad, 2009). While the cost control has been
taken as referring to control the cost of the construction project is kept within
the agreed cost limits from the inception until the completion of the project
(Sambasivan & Soon, 2007).
Cost planning is the technique by which the budget is allocated to the
various elements of an intended building project to provide the design team
with a balanced cost framework within which to produce a successful design
(RICS, 2011). According to Bahaudin et al., (2012), cost control is controlling
the cost for construction projects starts early during the project life cycle from
the conception stage through to the construction stage and beyond.
The aim of the cost planning and control is to deliver the best possible
design that within the client budget (Cunningham, 2015). The primary
objective of cost planning and pre-contract cost control is to ensure that the
project is kept within the agreed budget and that the employer obtains better
value of money. While the cost control during the post-contract should be
kept to see that the progress will not upset the estimate and client budget
(Willis & Willis, 1975).
 Chapter Title (1 line only) 3

5D BIM

5D BIM is cost data added to 3D model. In 5D model, the cost data is linked
to the BIM Quantity Takeoff to produce an effective and accurate cost
estimation and calculation. 5D, is all about cost (Mitchell, 2012). 5D BIM is
where model objects include specification data and other properties which can
be directly use for pricing construction work (Stanley & Thurnell, 2014).
Through 5D BIM application, the quantities of materials of a construction
project can be transferred and extracted from the BIM models automatically
and effectively.
5D BIM costing applications are theoretically contained in the model
itself, using integrated cost databases embedded within 5D models, helping to
streamline the work of QSs, as rather than relying on data storage external to
the application they are using for costing projects, the data is able to be
applied to projects and updated as required by importing up to date
information (Stanley & Thurnell, 2014).

Problem in cost planning and control

Cost checking procedures are quite the most time consuming and error prone
part of the whole process and more they can be legitimately minimised the
better. It must be realised that if lack of time prevents essential cost checks
from being carried out, then the whole attempt at cost planning will largely be
a waste of time (Kirkham, 2014). It takes up a lot of the QSs’ time, focus and
attention to count as well as measure each item in the drawing. (Fung et al.,
2014). The estimate was said to be prepared in a hurry because of time
constraints.
Due to design variation and change of client’s requirements, cost plan
tends to change frequently. As a result, QSs take times to update the cost plan
frequently whenever design changes. A revised quantities and cost estimate is
necessary to prepare again and to generate updated design documents and
information when occur changes in a design (Kim & Park, 2016). Lacking in
sufficient detail as the personnel lacked the experience to prepare good plans.
Regular updating of plans was not done. QS did not understand finishes or the
design of construction details. More often, change in drawing plan is not
updated in the section or schedules which caused design discrepancies (Fung
et al., 2014).
Cost estimating is a multi-disciplinary task, accurate estimation of
construction costs will based on the availability of quality historical cost data
and requires input from the design team (Akintoye and Fitzgerald, 2000).
Historical data on actual cost of labour, equipment, and material, which
4 Book Title (1 line only)

provide reference information in pricing out future project. Lack of historical

data on pass estimate or the historical data not properly being used will reduce
the accuracy of the estimate (Fung et al., 2014). It is obvious that inaccurate
data will constitute a major cause of inaccurate cost estimates

The capability of 5D BIM

5D BIM enable quantity surveyors to effectively and efficiently prepare

the early cost estimation by generate essential quantified information at the
early design stage (Kim & Park, 2016). QS also will gain significant time
advantage in the quantification and calculation tasks by using BIM in order to
provide additional time to perform new and enhanced QS services (Crowley,
2013). BIM allows initial concept estimate to be prepared quickly with
information available. By using BIM, cost geometry can be extracted from the
earliest design to generate a basic costing which defines project scope at an
elemental level and establishes budget. Although the cost estimate is simple at
this stage but it has the largest impact on the final cost. With level of detail
(LOD) 100, quantities can be extracted faster from the model which eases the
preparation of cost appraisal (Fung et al., 2014).
BIM will extract as much geometric data as possible depending on the
level of data available in the model to generate preliminary cost estimates.
Moreover, BIM is able to speed up cost estimation preparation especially for
various design alternatives. This capability enables fast and accurate
evaluation of multiple design options (Mitchell, 2012) for client to choose
optimal design that meets his requirements. It can be done by conventional
working method but the process is tedious, time-consuming and error prone.
The detailed cost plans can be generated through linking a “5D Cost
Library” to BIM which performs the function of an estimating database
(Thurairajah & Goucher, 2013). QSs are able to extract element quantities
from the model to perform element cost estimation with more detailed
breakdown estimates (Cheung et al., 2012). Hence, cost plan can be updated
comprehensively and easily as the design develops. Changes in design can be
generated automatically, without the need to recalculate.
Automatically quantity takeoff is one of the BIM capability that help to
simplify and remove routine and drudgery that come with this task. (Popov et
al., 2010). One-click tools enable take-offs, counts and measurements to be
generated directly from the underlying model. BIM has the potential to rectify
this inefficiency by handling numerous and different information in a single
database. A quantity surveying firm’s cost databases provide the foundation
for the quality and value of the services they provide and can provide
significant competitive advantage. Intelligent information management is one
 Chapter Title (1 line only) 5

of the capabilities of BIM through a repository of information database in a

model (Cheung et al. 2012)

RESEARCH METHODOLOGY

A qualitative approach are employed in this research as it has the strength to

grasp the meanings of a phenomenon by interpreting the texts, either in the
spoken form from interviews, written form from documentation and observed
behaviors. The interviews were taken place with five consultant firm in order
to obtain and gather the details of the cost planning and control problem from
pre-contract stage to post contract-stage in construction projects. The
interviews are conducted in a face-to-face mode and individually with an
experienced quantity surveyor from each of the firms. The chosen quantity
surveyor must be at least 3 years of experience in cost planning and control of
construction projects.
A single case study were conducted in order to provide researcher to
experience how does the 5D BIM work and the implementation of 5D BIM in
cost planning and control. A BIM-complied QS firm, Perunding Kos T & K
has been chosen for the single case study to observe and collect the data. The
reason of choosing this company because it is the first company in Malaysia
that utilizes full BIM implementation in all quantity surveying processes, from
early stage cost planning all the way to the final account.

RESULT AND DISCUSSION

The research findings revealed the potential integration of 5D BIM in

solving the problem in cost planning and control and enhance the quantity
surveyor performance. The common problem that facing in quantity
surveying practice are time consuming and susceptible to human error.
However, this problem can be solved by embraced the 5D BIM in order to
reduce the time, cost and enhance quality. These problems are identified as in
Table 1.
Table 2 is anything to go.
6 Book Title (1 line only)

Table 1 Capabilities of 5D BIM in Cost Planning and Control process

Problem in Cost Capability of BIM in

planning and control solving problem
Cost appraisal Accuracy of GFA GFA can be extract from
the model
Cost plan Calculation Error Less calculation error as
built in calculation rule
Time Constrain Save time
-need set formula in -Automatic calculate
spreadsheet which no need set
-clearly understand the formula
SMM2 calculation rule -with SMM2 calculation
rule
Update cost plan Time Consuming Rapidly update the cost
-Spend time in detect plan
changes -Easy to detect the
-Re-measurement due changes
to -Reduce re-work/ work
difficult trace back the load which easy to
item modify the quantities
Design Changed Modify the model
Frequently -Software identify the
-Manually detect changes
changes
Cost estimate for Time Constrain Time saving
various design - work process is -speed up the work
(Value engineering) tedious process
Error prone Eliminate the mistake
Cost Checking Take time to checking Easier for cost checking
-Avoid missing item -Able visualize
-Avoid under estimate throughout the model
or over estimate
Checking in the excel Checking in the model
spreadsheet -View the model in
-Tally back the different direction
quantities - Automatic calculation
-Formula set wrongly
on spreadsheet
Bill of Quantities Time consuming Sava huge amount of
-Use scale ruler or time
excel in quantity - Ease of quantity take
takeoff off
- Printing format is set
 Chapter Title (1 line only) 7

-Need to set printing

format
Bill of Quantities Human error Minimize human error
- need deduct some - precise deduction, no
item in order to avoid overlapping
double counting
Low level of accuracy High level of accuracy
- Missed out the
element
Drawing discrepancy Minimize the
discrepancy
Pre-tender estimate Cost data 5D Cost Library
Interim Payment Over certified Certified exactly the
-use percentage to work done
certified the amount of -easier to compare the
payment work done at site and
BIM model
Variation order Spent time in doing Extract the quantities
measurement from model
Dispute between Minimize the dispute
parties
-Difficult to reach
mutual agreement
Final Account Required long time to Reduce the settlement
settle time
- Finalize variation
order
- Re-measurement
Dispute between Settle without argument
parties

Cost Appraisal
The design is still in conceptual and limited information is available. For the
inexperienced person like fresh graduate, they might not sure which part is
considered in GFA. Therefore, if the GFA is measured under BIM software, it
will know what QS GFA looking for, which is deduct all the ancillary area,
stairways, corridors or other feature. Thus, BIM allows the cost appraisal to
be prepared faster and effective.

Cost Plan
By conventional way, if the cost plan need to in detail, it need take a lot of
time in doing measurement. However, BIM software use to built up the 3D
model by key in all the building information into it, thereafter the extract out
the quantities into the cost plan and put in the rate into it. Therefore, BIM
8 Book Title (1 line only)

enable the cost plan to be produce more reliable and accurate way in a short
time frame.

Table 2 Anything to go

Anything To go

Update Cost Plan

Conventionally, mostly update the cost plan is mean redo the cost plan, which
mean no longer use the previous, because it is difficult to modified it.
Quantities can be rapidly update whereby just modified the BIM model when
the design is changes, it will generate a new model based on the latest
drawing. The process of update a cost plan also become easier which the
software will help you to compare the drawing, identify the changes, adjust the
quantity, then the new quantities will be come out which embedded with the
rule of SMM2. Thus, update the cost plan can be achieved in the shortest time
to know the cost of the changes they make.

Cost Estimate for Various Design

Quantity surveyor always facing the difficulty to prepare the cost estimate for
various design due to time consuming. Normally, it need to produce the cost
estimate in a shorter time for client to choose which is more valuable. QS tend
to make error because the time given is too short, they not enough time to
check again the work. However, BIM enable QS to generate various cost
estimate for different design quickly and accurate. The ease of quantity
takeoff can speed up the work process.

Cost Checking
QS always spent a lot of time in perform the cost checking to ensure all the
design element have been capture. Besides, they also need to check back
again the formula in the excel spreadsheet to avoid the formula set wrongly or
miscalculated. Other than that, human error such as formula set wrongly also
will be minimized due to the BIM software have the built in calculation which
 Chapter Title (1 line only) 9

embedded with the rule in SMM2. Therefore, the QS only checking in the
model, which is easier when compare to laborious and manual checking work
The process of cost checking can become faster and accurate due to
able visualize throughout the BIM model which can view the model in
different direction. By visualization and viewing the 3D model, it facilitates
the senior QS making it easier to check, detect and identify which element
have not yet been captured in the model in order to avoid the missed-out item.
which cause serious impact to the project budget.

Bill of Quantities
Preparation the BQ in the shortest time with accurate and precise quantity is
required in the industry. The automation of the production of bill of quantities
that offered by 5D BIM would eliminate the tedious conventional
measurement work and at the same time reduces the time and human error.
The BQ also were automatically updated if there are changes in the model or
design. Conventionally, after takeoff the quantities, the QS required to
manually input or key in the quantity into excel spreadsheet.
Clash detection is also as one of the benefit when compare to manually, it
is because in conventional way is very difficult to detect the changes. BIM
software can help to detect the changes, which is it have a button new
variation- will show the quantities before and after. This is to identify what
had being changes from current drawing and previous drawing. Architect or
engineer wont cloud for every changes.

Pre-Tender Estimate
The BIM software has a place which is “cost data library” to save and store
the historical data, The great advantage to store all the cost data in the BIM
software is to assist the user obtain the data easily and as a reference for next
similar project. This is very useful especially in the early project stage.

Interim Payment
Conventionally, the amount that certified to contractor is based on percentage,
which is just use eye to detect how many percentage of the work done, it may
cause over-certified or under-certified. By using BIM software, QS can
certified the amount exactly same with the actual work done on site. The
contractor will submit the claim together with their BIM model to quantity
surveyor in order to show the work have carried out on site in that month.
After the submission, the quantity surveyor will go to the site valuation to
10 Book Title (1 line only)

observed, compare and evaluate the work done with the submitted BIM
model.

Valuing of Variation
BIM model is just help to reduce the VO which detect the error in the early
stage. Besides, the element in the variation become more obviously and easy
to measure and re-calculate the quantity via using BIM software. This process
is faster when compared to manually takeoff.

Final Account
Quantity surveyor is they always takes a long time to settle the final account
because the final amount not agreed by contractor. This problem can be settle
by using BIM model, which can help both parties to see clearly, then no
dispute anymore. Now, the final account can be settle easily and faster through
the use of BIM model.
When the payment is made progressively, it will speed up in settling
the final account. The model grow progressively by the claim that submitted
by contractor, at the end, it become a complete model. When the model is
complete, the work is also complete. Thus, this can use to settle the final
account.

CONCLUSION

In conclusion, the above study proves that Implementation of BIM in the cost
planning and control process is a potential solution for the main problem that
facing by quantity surveyor which are time constraint and prone to error
(Ahmad, 2009). The capability of the BIM, automating function, such as
automatically generate the quantities, takeoff from the model, rapid updating
the quantities, and automatic production of bill of quantities by a single click
which will allow them to complete their tasks more quickly and eliminated the
error.
BIM would help to eliminate the human careless mistakes, improve
overall quality of the work to become more efficiency and productivity. For
the effectiveness in term of time which will help to accept and received more
repeat business due to the high satisfaction from the client. Hence, the time
benefit by using BIM can help to expand the service offering and enhance the
quantity surveying practice. It is time to move the construction industry
forward and the whole thing become better.
 Chapter Title (1 line only) 11

ACKNOWLEDGEMENT

The authors express greatly indebted acknowledgement to the PM. Sr Dr.

Kherun Nita Ali for her generous advice and patiently guidance throughout the
whole research and all the respondents for generously participation.

REFERENCES

References
Ahmad, K. (2009). Construction Economic. Selangor, Malaysia: Prentice Hall.
Akintoye, A., & Fitzgerald, E. (2000). A survey of current cost estimating practices in
the UK. Construction Management and Economics, 18(2), 161-172.
Ashworth, A., & Hogg, K. (2013). Will's Practice and Procedure for the Quantity
Surveyor (12th ed.). UK: Blackwell Publishing.
Azhar, S., Khalfan, M., & Maqsood, T. (2012). Building information modeling (BIM):
now and beyond. Australasian Journal of Construction Economics and
Building, The, 12(4), 15.
Azman, M. A., Abdul-Samad, Z., & Ismail, S. (2013). The accuracy of preliminary cost
estimates in Public Works Department (PWD) of Peninsular Malaysia.
International Journal of Project Management, 31(7), 994-1005.
Bahaudin, A. Y., Elias E. M., Dahalan, H., & Jamaludin, R. (2012). Construction cost
control: A review of practices in Malaysia.
Cartlidge, D. P., & Mehrtens, I. N. (1982). Practical Cost Planning. London:
Hutchinson.
Cheung, F. K., Rihan, J., Tah, J., Duce, D., & Kurul, E. (2012). Early stage multi-level
cost estimation for schematic BIM models. . Automation in Construction, 27,
67-77.
Cunningham, T. (2015). Cost Control During the Pre-Contract Stage of a Building
Project–An Introduction.
Fung, W. P., Salleh, H., & Rahim, F. A. M. (2014). Capability of Building Information
Modeling Application in Quantity Surveying Practice. Journal of Surveying,
Construction and Property, 5(1).
12 Book Title (1 line only)

Kern, A. P., & Formoso, C. T. . (2006). A model for integrating cost management and
production planning and control in construction. Journal of Financial
Management of Property and Construction, 11(2), 75-90.
Kern, A. P., & Formoso, C. T. (2004). Guidelines for improving cost management in
fast, complex and uncertain construction projects. 12th Conference of the
International Group for Lean Construction.
Kim, K. P., & Park, K. S. (2016). Implication Of Quantity Surveying Practice In A Bim-
Enabled Environment.
Kirkham, R. (2014). Ferry and brandon's cost planning of buildings: . John Wiley &
Sons.
Mitchell, D. (2012). The 5D Qs: Today’s Methodology In Cost Certainty. Rics Cobra,
1198-1206.
Nadeem, A., Wong, A. K., & Wong, F. K. (2015). Bill of Quantities with 3D Views
Using Building Information Modeling. Arabian Journal for Science and
Engineering, 40(9), 2465-2477.
Olatunji, O., Sher, W., & Gu, N. . (2010). Building information modeling and quantity
surveying practice. Emirates Journal for Engineering Research, 15(1), 67-70.
Popov, V., Juocevicius, V., Migilinskas, D., Ustinovichius, L., & Mikalauskas, S. (2010).
The use of a virtual building design and construction model for developing
an effective project concept in 5D environment. Automation in construction,
19(3), 357-367.
RICS. (2015). Conference papers. Retrieved from
http://www.rics.org/my/knowledge/research/conference-
papers?pn=1&so=Relevance&rl=construction
Sambasivan, M., & Soon, Y. W. . (2007). Causes and effects of delays in Malaysian
construction industry. International Journal of project management, 25(5),
517-526.
Stanley, R., & Thurnell, D. (2014). The benefits of, and barriers to, implementation of
5D BIM for quantity surveying in New Zealand.
Wanyona, G. (2005). Risk management in the cost planning and control of building
projects: the case of the quantity surveying profession in Kenya . (Doctoral
dissertation, University of Cape Town).
Willis, A. J., & Willis, C. J. . (1975). Practice and Procedure for the Quantity Surveyor.
(metric). London: Crosby Lockwood Staples.
 Chapter Title (1 line only) 13

2
√𝐶 = 𝑚𝑒