How an investment goes wrong at the starting line
- December 2, 2021
We just have watched how an investment has immediately become more expensive at the tender stage, at minute zero. I want to share this experience with you.
A multi-investor invited us to take part in a tender for thousands of m2 of very complex production space.
Three bids were invited in BIM and then electronic bidding was launched for 90% of the cheapest bid, which was accepted by one of the competitors on the first attempt.
Our offer was 110 mFt, but the project deal was finally 60.
What’s the problem? The customer saved 50 million HUF.
Are the grapes sour?
No. That’s not the point. For us, our co-designers didn’t come out of that money.
The point is that I think you’re losing many times over. Because he did not realize that
you cannot design a clean space
with conventional design technology, just like
you cannot design a laboratory or a data center
or a more complex factory.
Our price was to build a prototype of the factory in virtual space, with all its systems, in a full-scale software package.
We provide accurate material quantities, error-free design, simulate and optimize systems and provide a framework that makes communication five times faster and the AR visualization means the contractor will understand what to build.
He will deliver a 3D building model, a visualization plan, and many paper 2D system plans, which he has prepared based on Excel scales.
The inaccuracies in the design will be noticed by the contractor on-site during
construction and the first replacement work will be the 50 million HUF
won on the design after the deadline has also been canceled.
They will then start to move around and modify the plan as time goes on, construction stops, and new problems arise. A deviation from the plan in one discipline causes hundreds of problems at the level of other disciplines’ systems.
Experience shows that the planned investment cost of HUF 2 billion will increase by a factor of 1.2 to 1.5,
which in this case is HUF 0.4 to 1.0 billion.
At the same time, liability and legal disputes are constantly arising in the triangle of the customer, contractor, and designer, and construction is delayed by an average of one year, which means that production of the product line can only start when the competitor has already contracted for the product, or if it has already been contracted, then the production of a car, for example, cannot start, which means another unforeseeable penalty.
And I don’t have a problem with that, I have a problem with the fact that anyone who has been involved in this project will say that BIM is crap.
They just couldn’t tell the difference between Hollywood BIM and real BIM workflow.
Other times it’s worth going to the design office and asking them to show you one.