POLITECNICO DI MILANO
Scuola di Ingegneria Industriale e dell’Informazione
Master of Science in Management Engineering – Milano Bovisa
BIM for Supply Chain Management in Construction
Setting up Contractor’s BIM-based Supply Chain
Supervisor | prof. Mauro MANCINI, Politecnico di Milano
Co-Supervisor | Alessio Domenico LETO, Politecnico di Milano
Co-Supervisor | prof. Carlo RAFELE, Politecnico di Torino
Student | Marijana Zora Kuzmanović
ID Number | 892241
Academic Year 2018/19
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Acknowledgements
I wish to express my sincere gratitude to professor Mauro Mancini for providing me with the
opportunity to work on this interesting topic. Throughout this research work, I have realized the
beauty of BIM which triggered my sincere desire to continue exploring its potential.
During this journey, I was able to get in contact with BIM industry experts, hear their practical
experience and feel their enthusiasm towards opportunities which BIM may unlock in construction,
for which I am very grateful.
I also wish to thank to Alessio, who was always there to guide me and closely follow my work.
Finally, I would not have made it up to here without the support of my mother and sister, closest
friends and coinquilini who were a bit tired of listening to the newest BIM-related insights I was
gathering throughout the work.
Zora
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BIM for Supply Chain Management in Construction
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Abstract
Construction enterprises mostly seek to implement BIM in the pre-construction phase, for
3D design visualization and clash detection (Bosch et al., 2017). However, BIM generated
information is not fully exploited within the activities of construction management,
fabrication, and erection (Aram et al., 2013), not to mention for reaching full collaboration
along the complex construction supply chains. That complexity can be attributed to the high
fragmentation present among the construction project actors, due to the presence of various
multi-disciplinary companies with unintegrated operational processes for collaboration
(Nam and Tatum, 1992; Robson et al., 2014; Dainty et al., 2001). Due to the project-based
nature of their collaboration, not so much effort has been put in managing the supply chain,
rather in risk shifting towards the upstream part of the chain and last tier suppliers (O’Brien
et al., 2009). These practices result in poor communication among supply chain actors, based
on 2D document management and a lot of rework. Direct consequences are lack of material
delivery transparency and high variability of data long the supply chain, which continue
prolonging the project deadlines and increasing the costs.
One of the methodologies which has a strong potential for enhancing the performance of
construction supply chains is Building Information Modelling (BIM), as a technological
enabler for up to date information exchange and collaboration between the actors (Eastman
et al., 2008; Bankvall et al., 2010; Bryde et al., 2013).
In that sense, this research tries to define the potential BIM-enabled tools which could
provide supply chain members with timely information exchange and allow them to take
control of their highly interdependent activities. Taking control is very relevant since final
value delivered to the Client is a direct function of the effective multi actor chain
management, as around 75% of the value of the construction works is contributed by
suppliers and subcontractors (Dubois and Gadde, 2000). Focus of the research has been set
on the construction phase of project lifecycle, by listing proven BIM applications within the
building components procurement, their production off-site, transportation and logistics as
well as on-site assembly.
However, due to the socio-technological nature of BIM, exploration of sound environment
for achieving transparent practices was needed, by investigating the current relationships
among supply chain members as well as their perception regarding the constraints for
achieving BIM-based supply chain management. These constrains may occur in different
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dimensions on inter-organizational level: social, organizational, technological and
economic. Only after understanding the potential which may be achieved by managing
supply chain with BIM and perceived constraints for reaching that potential, a guideline has
been produced, mainly concerning main contractor as the initiator of such practices.
Finally, main finding is related to the potential reinforcement between BIM and supply
chain. While the supply chain shall be stable and formed in a trusting environment (based
on principles of partnerships for tighter integration) in order to grasp the full value of BIM,
BIM can be used as a mean for regulating and tracking the information and material flows
among the actors in a standardized code-based and transparent form. By doing so, each
supply chain member is enriching building components with their piece of information and
in the moment of those information creation throughout the well-defined and regulated
collaboration processes enabled by BIM. Indeed, by pursuing such practices, value-added
in terms of rich building information models may be handed over to the Clients (besides the
physical assets) in the form of digital twins as a final result of successful collaboration. This
way of working may shift the competition in the construction sector from price based to
value based, as a result of supply chain management supported with BIM methodology.
Furthermore, this strategy may allow construction SMEs to gain competitive advantage
over the big industry players, by having whole supply chain by their side.
Key words: BIM; supply chain management; partnerships.
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Sommario
Le imprese di costruzione implementano il BIM principalmente nella fase di pianificazione,
per la visualizzazione di progetti in 3D e per il rilevamento di conflitti (clash detection) tra gli
elementi costruttivi (Bosch et al., 2017). Tuttavia, le informazioni generate dal BIM non
vengono sfruttate appieno nell'ambito delle attività di gestione e installazione in cantiere
(Aram et al., 2013), e la condivisione di tali informazioni è molto scarsa lungo le complesse
catene di approvvigionamento del settore. Tale complessità può essere attribuita all'elevata
frammentazione presente tra gli attori del progetto di costruzione, a causa della presenza di
varie imprese multidisciplinari con processi operativi non fondati sulla collaborazione
(Nam e Tatum, 1992; Robson et al., 2014; Dainty et al., 2001). A causa della sua natura basata
sul progetto, il settore delle costruzioni non ha fatto molti sforzi nella gestione della catena
di approvvigionamento o per condividere equamente i rischi tra gli attori (O’Brien et al.,
2009). Le attuali pratiche comportano una scarsa comunicazione tra gli attori della catena di
approvvigionamento, basata su una frequente rielaborazione dei documenti condivisi.
Conseguenze dirette di questa situazione sono la mancanza di trasparenza nel conferimento
dei materiali e l'elevata variabilità dei dati lungo la catena di approvvigionamento, con
conseguenti aumenti dei costi e ritardi nella consegna del progetto. Una delle metodologie
che sembrerebbe avere un forte potenziale nel miglioramento delle prestazioni delle catene
di approvvigionamento nel settore delle costruzioni è il Building Information Modeling
(BIM), una metodologia digitale basata sullo scambio delle informazioni e sulla
collaborazione tra gli attori del progetto (Eastman et al., 2008; Bankvall et al., 2010; Bryde et
al., 2013).
La presente tesi si propone l’obbiettivo di definire i potenziali strumenti basati sul BIM che
potrebbero fornire ai membri della catena di approvvigionamento uno scambio tempestivo
delle informazioni, consentendo loro il controllo delle attività altamente interdipendenti.
Assumere il controllo di ciò che si sta producendo è molto rilevante, poiché il valore finale
consegnato al cliente è una funzione diretta dell'effettiva gestione della catena multi-attore;
infatti, circa il 75% del valore delle opere di costruzione è fornito da fornitori e
subappaltatori (Dubois e Gadde, 2000). Il focus della ricerca è stato posto sulla fase
costruttiva del progetto, elencando le applicazioni BIM già collaudate
nell'approvvigionamento dei componenti dell'edificio, nella loro produzione fuori sede, nel
trasporto e nella logistica, nonché nell'assemblaggio in situ. Tuttavia, a causa della natura
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socio-tecnologica del BIM, è stata necessaria l'esplorazione di un ambiente collaborativo per
raggiungere pratiche trasparenti, indagando le relazioni attuali tra i membri della catena di
approvvigionamento e la loro percezione riguardo ai vincoli per la realizzazione della
catena di approvvigionamento basata sul BIM. Questi vincoli possono verificarsi secondo
diverse dimensioni a livello inter-organizzativo: sociale, organizzativo, tecnologico ed
economico. Solo dopo aver compreso il potenziale che può essere raggiunto gestendo la
catena di approvvigionamento con il BIM e percependo i vincoli per raggiungere quel
potenziale, è stata prodotta una linea guida, principalmente riguardante l’appaltatore
principale, considerato come il precursore di tali pratiche.
Il risultato principale di tale lavoro è legato al potenziale rafforzamento tra la metodologia
BIM e la catena di approvvigionamento. Mentre la catena di approvvigionamento deve
essere stabile e formata in un ambiente pienamente collaborativo (basato su principi di
partnership per una più stretta integrazione), il BIM può essere utilizzato come mezzo per
regolare e tracciare i flussi di informazioni e materiali tra le parti interessate in una forma
standardizzata, codificata e trasparente. In questo modo, ciascun membro della catena di
approvvigionamento arricchisce i componenti dell'edificio delle loro informazioni,
basandosi su processi di collaborazione ben definiti e regolamentati dal BIM. In effetti,
perseguendo tali pratiche, il valore aggiunto in termini di modelli ricchi di informazioni
può essere consegnato al cliente (oltre alle risorse fisiche) sotto forma del gemello digitale
dell’edificio, quale risultato finale di una collaborazione ben riuscita. Questo modo di
lavorare, in conseguenza della gestione della catena di approvvigionamento supportata
dalla metodologia BIM, può incentivare una concorrenza basata sul valore aggiunto
piuttosto che sul prezzo. Inoltre, questa strategia può consentire alle piccole e medie
imprese delle costruzioni di ottenere un vantaggio competitivo rispetto alle grandi imprese
del settore, sfruttando interamente la propria catena di approvvigionamento.
Parole chiave: BIM; gestione della catena di approvvigionamento; collaborazione.
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Table of Contents 1 Introduction ............................................................................................................................. 15
1.1 Research Purpose ........................................................................................................................ 15
1.2 Research Methodology .............................................................................................................. 16
1.3 Structure of the Thesis work .................................................................................................... 18
2 Literature Review ................................................................................................................... 21
2.1 Challenge in the Construction Sector ..................................................................................... 21
2.2 Building Information Modeling .............................................................................................. 23 2.2.1 Understanding the “Digital Evolution” .............................................................................................. 23 2.2.2 Setting up the BIM process for the Contractor ................................................................................... 29 2.2.3 Interoperability allows collaboration .................................................................................................. 32 2.2.4 BIM transforms enterprises ................................................................................................................... 33
2.3 Construction Supply Chain ...................................................................................................... 36 2.3.1 Construction Supply Chain | Flows and Stakeholders .................................................................... 36 2.3.2 “Big blocks” of the Construction Supply Chain ................................................................................ 41
2.3.2.1 Procurement of building materials / components .................................................................. 41 2.3.2.2 Off-site production of building materials / components ....................................................... 43 2.3.2.3 Transportation & Logistics .......................................................................................................... 43 2.3.2.4 On-site Assembly/Construction ................................................................................................ 45
2.3.3 Common issues of Construction Supply Chain Management ......................................................... 46 2.3.4 Philosophy of the Supply Chain Integration ...................................................................................... 48
2.4 BIM for Supply Chain Management in Construction ........................................................ 51 2.4.1 Interdependence between BIM and Supply Chain Management ................................................... 51 2.4.2 Requirements for BIM-enabled Supply Chain Management ........................................................... 54
2.5 Gaps found in the literature ..................................................................................................... 57
3 Research Methodology .......................................................................................................... 59
3.1 Purpose of the work ................................................................................................................... 59
3.2 Research Questions .................................................................................................................... 59 3.2.1 Which are the opportunities and trends of BIM-based Supply Chain? ......................................... 60 3.2.2 Which are the common barriers for establishing BIM-based Supply Chain? ................................ 60 3.2.3 How could a Contractor set up a BIM-based Supply Chain? .......................................................... 61
3.3 Research Methodology .............................................................................................................. 62 3.3.1 Literature Review ................................................................................................................................... 63
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3.3.2 Survey ....................................................................................................................................................... 63 3.3.3 Interviews ................................................................................................................................................ 67
4 Findings ................................................................................................................................... 69
4.1 What is BIM-based Supply Chain Management? ................................................................ 69 4.1.1 Which are the opportunities and trends of BIM-based Supply Chain? ......................................... 70
4.1.1.1 Procurement of building materials/components .................................................................... 72 4.1.1.2 Off-site production of building materials/components ......................................................... 74 4.1.1.3 Transportation & Logistics .......................................................................................................... 78 4.1.1.4 On-site Assembly/Construction ................................................................................................ 80
4.1.2 Perception of the practitioners regarding the potential of BIM-based SCM ................................. 83 4.1.3 Why supply chain actors shall collaboratively embrace BIM? ........................................................ 86
4.2 Which are the common barriers for establishing BIM-based Supply Chain? ............... 89
4.3 How could a Contractor set up a BIM-based Supply Chain? ............................................ 98
4.4 Putting it all together ............................................................................................................... 107
5 Discussion and Conclusion ................................................................................................ 113
5.1 Summing up .............................................................................................................................. 113
5.2 Limitations of the study .......................................................................................................... 119
5.3 Recommendations for future research ................................................................................. 119
6 Bibliography & Sitography ................................................................................................ 121
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List of Tables Table 1. Areas for boosting construction productivity .............................................................. 22
Table 2. LOD requirements for certain BIM applications ......................................................... 29
Table 3. Typical configurations of construction supply chain .................................................. 41
Table 4. Addressing Construction Supply Chain issues with BIM .......................................... 53
Table 5. Profile of the interviewees ............................................................................................... 67
Table 6. Potential of BIM by construction supply chain area ................................................... 71
Table 7. Perception regarding opportunities in SCM enabled by BIM ................................... 84
Table 8. Perception regarding supply chain areas of improvement ........................................ 85
Table 9. Solving Construction Supply Chain issues with BIM ................................................. 86
Table 10. Supplier selection criteria .............................................................................................. 90
Table 11. Nature of partnerships in the supply chain ............................................................... 91
Table 12. Barriers for supply chain partnerships ........................................................................ 92
Table 13. Perceived constraints for BIM implementation ......................................................... 93
Table 14. Perceived BIM-based SCM feasibility for the Contractors ....................................... 94
Table 15. Perceived BIM-based SCM feasibility for the Subcontractors/Suppliers .............. 95
Table 16. How to incentivize suppliers for BIM-based SCM .................................................... 95
Table 17. Future development of SCM with BIM ....................................................................... 96
Table 18. Opportunities offered by BIM for supply chain management .............................. 115
List of Figures
Figure 1. Research Methodology adopted ................................................................................... 18
Figure 2. Overall research framework ......................................................................................... 19
Figure 3. Core causes for low productivity in construction sector .......................................... 22
Figure 4. BIM Maturity levels ........................................................................................................ 24
Figure 5. Value of 3D BIM .............................................................................................................. 26
Figure 6. Overview of different LODs ......................................................................................... 27
Figure 7. BIM process flow - Starting from 2D drawings ......................................................... 30
Figure 8. BIM process flow - Collaborative model ..................................................................... 30
Figure 9. BIM process flow - Including fabricators .................................................................... 31
Figure 10. Areas of enterprise BIM-based transformation ........................................................ 34
Figure 11. Overview of the Construction Supply Chain Flows and Actors ........................... 39
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Figure 12. The 3 Vs of Construction Project Data ....................................................................... 39
Figure 13. “The five rights” of logistics ........................................................................................ 44
Figure 14. General issues along the Construction Supply Chain ............................................. 47
Figure 15. Traditional (left) and BIM-enabled (right) information exchange ........................ 54
Figure 16. Overview of the BIM-based supply chain model .................................................... 55
Figure 17. Overall research framework ....................................................................................... 61
Figure 18. Research Methodologies adopted .............................................................................. 62
Figure 19. BIM for SCM survey questionnaire structure .......................................................... 65
Figure 20. Role of the companies in the supply chain ............................................................... 66
Figure 21. Annual turnover range ................................................................................................ 66
Figure 22. Types of projects executed .......................................................................................... 66
Figure 23. Number of employees .................................................................................................. 66
Figure 24. BIM-enabled material procurement ........................................................................... 72
Figure 25. Visualizing status of prefabricated components ...................................................... 76
Figure 26. Connecting the supply chain with RFID tags ........................................................... 80
Figure 27. BIM-enabled components status monitoring ........................................................... 81
Figure 28. Overview of barriers perceived for BIM-based SCM .............................................. 97
Figure 29. Guideline for setting up BIM-based SCM ............................................................... 109
Figure 30. Overall research framework ..................................................................................... 113
Figure 31. Overview of barriers perceived for BIM-based SCM ............................................ 116
Figure 32. BIM-based SCM implementation guideline ........................................................... 117
List of Abbreviations
BDOs | BIM Digital Objects
BIM | Building Information Modeling
CDE | Common Data Environment
CSC | Construction Supply Chain
SC | Supply Chain
SCM | Supply Chain Management
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1 Introduction
This chapter briefly explains the purpose of the research, methodology used for conducting
the same as well as the overall structure of the thesis work.
1.1 Research Purpose
This research aims at understanding the potential applications of Building Information
Modeling (BIM) for Supply Chain Management (SCM) in Construction industry, their
benefits, barriers and enablers for implementation. Focus has been set on the construction
phase of the project lifecycle, and the perspective taken was that of the general contractor,
as the potential initiator of such practices and integrator of various project supply chain
actors.
The relevance of this exploratory research mainly lies in the lack of BIM utilization for
enhancing construction industry collaboration, especially those related to the complexity of
supply chain management. Namely, construction enterprises mostly seek to implement BIM
in the pre-construction phase, for 3D design visualization and clash detection (Bosch et al.,
2017). However, BIM generated information is not fully exploited within the activities of
construction management, fabrication, and erection (Aram et al., 2013), not to mention for
reaching full collaboration along the supply chain. Therefore, initial part of the research
focuses on understanding the potential applications in which BIM may support execution
of complex and highly intertwined supply chain management activates. That complexity
can be attributed to the high fragmentation present among the construction project
stakeholders, due to the presence of various multi-disciplinary companies with
unintegrated operational processes for collaboration (Nam and Tatum, 1992; Robson et al.,
2014; Dainty et al., 2001). Since the overall performance of the supply chain is dependent on
multiple actors besides the contractor (designers, numerous subcontractors and suppliers
of building materials/components), tools and methodologies for transparent and real-time
communication are needed to improve the overall process of value delivery to the Client.
Moreover, by effectively managing the supply chain, contractors should be able to take
more control of their processes and reduce wastes in terms of quality, costs and time which
are still present. Indeed, taking control is crucial due to the mutual interdependence among
supply chain actors, who shall maintain their relationships until the project targets have
been achieved (Frazier, 1983). One of the methodologies which has a strong potential for
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harmonizing project-based supply chains is Building Information Modelling (BIM), as a
technological enabler for up to date information exchange and collaboration between the
actors (Eastman et al., 2008; Bankvall et al., 2010; Bryde et al., 2013).
Moreover, it was also needed to gather the perception regarding the feasibility of achieving
transparent supply chain practices offered by BIM. Therefore, survey questionnaire has
been distributed on a European level (and wider) in order to understand whether the main
barriers perceived by multidisciplinary supply chain members for adopting such
transparent supply chain practices may be country specific and/or related to their openness
for partnering and collaboration. The inspiration for such survey arises after reviewing
significant research efforts within the Dutch construction industry (Papadonikolaki et al.
2015; 2016, 2017), with a focus on inter-organizational level of BIM applications for
harmonizing information flows and relationships across the supply chain. However,
peculiarity of Dutch industry is related to well established SCM practices due to the culture
of long-term partnerships which may already be ready to grasp BIM as a technological
enabler. Thus, Costa et al. (2019) propose a further research addressing countries with more
significant construction activities segmentation, since the barriers and relationships among
actors could be context specific.
Finally, after the perception of the practitioners regarding feasibility of achieving
collaborative SCM practices has been gathered, this research tries to provide a guideline in
the form of three blocks as enablers for reaching the state of BIM-ed supply chain: people,
process and technology, as the connection of these three may enable integration. These
guidelines have been established after investigating practitioners’ opinion on potential
ways in which barriers for collaboration may be overcome.
1.2 Research Methodology
In order to cover the above-mentioned research topic in a comprehensive way, answering
to the three research questions has been set as a main objective of the thesis (represented
below). The first one concerns structuring the applications of BIM for improving different
areas of the project supply chain and benefits which may be achieved, while the second one
deals with understanding the perceived barriers which may arise when trying to achieve
such practices. Thus, the first question aims at answering the WHAT and WHY part of the
topic BIM for Supply Chain Management, to map the potential applications and benefits
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which stem from implementation of BIM for information and material management
practices. However, certain resistance for BIM adoption may arise, thus posing the need for
second research question. Finally, the third question seeks to gather insights from the
practice by understanding the processes of collaboration enabled by BIM and core enabling
factors for reaching those. Therefore, the third question answers the HOW part of actually
setting up the BIM-enabled supply chain. The three research questions and structure of the
answers for those are presented below.
� RQ.1 Which are the opportunities and trends of BIM-based Supply Chain?
Following the logic of material and information flows from defining them within the 3D
environment to their installation on site, opportunities have been classified within four “big
blocks” of construction supply chain:
§ Procurement of building material/components;
§ Off-site production of building materials/components;
§ Transportation and Logistics;
§ On-site Assembly/Construction.
However, since the construction supply chain actors and activities are tightly intertwined,
consideration of overall benefits regarding information and material flows will be presented
as well.
� RQ.2 Which are the common barriers for establishing BIM-based Supply Chain?
Innovative technological tools such as BIM impose various barriers for adoption within the
single organization per se. However, in order to reach above-mentioned opportunities along
the whole project supply chain, observation of barriers on inter-organizational level is
needed as well. For the sake of understanding multidimensional factors influencing the
adoption of BIM for supply chain management, the barriers have been clustered into four
main blocks:
§ Economic – Lack of financial resources for investing into BIM solutions;
§ Organizational – Complexity of integrating processes and defining responsibilities;
§ Technological - Appropriate software infrastructure for collaboration;
§ Social – Attitudes towards information transparency and risk allocation.
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� RQ. 3 How could a Contractor set up a BIM-based Supply Chain?
The answer to this research question seeks to provide a guideline and the key success factors
for setting up a BIM-enabled project supply chain, mostly concerning people, processes and
technology, from inter-organizational perspective, since supply chain actors are highly
interdependent and final value delivered to the Client is a direct function of
multidisciplinary collaboration.
Throughout the research work, different methods were utilized for gathering specific
insights related to the three above-mentioned research questions. The choice of the
methodology for answering the specific research questions is presented in the Figure 1
below.
Figure 1. Research Methodology adopted
1.3 Structure of the Thesis work
The following chapter (Chapter 2), Literature review, seeks to gather the existing research on
the two distinct topics of BIM and SCM separately, starting from understanding the basic
concepts of Building Information Modeling and its transformative power as a technological
support in the construction industry. Secondly, overview of construction supply chain and
current supply chain management practices have been presented, as a base for
understanding the issues which construction project actors are facing nowadays. Finally,
these two are merged together in a structured form to present potential of BIM for
improving collaborative practices along the supply chain, mostly concerning the downsides
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stemming from the ways that current project supply chain operate. Finally, output of this
chapter are the gaps found in the literature, which have been used as a base for setting up
the research questions, as well as hypothesis under which the research has continued.
The third chapter, Research Methodology, presents the goals of the work in the form of
research questions stemming from gaps identified in the literature, methodology used
(literature review, survey and interviews) for reaching those goals and overall planned
structure of the guidelines in which unification of the findings will be presented. Due to the
exploratory nature of the research, a mixed method was used to gather the data from
multiple sources.
Following chapter – Findings presents the insights gathered from practitioners from two
sources: survey and interviews, which are mainly answering to HOW question of
establishing BIM-based supply chain management and barriers which may appear when
doing so. However, in this chapter literature was used as well, as a secondary source to
answer to the question WHAT, by listing proven potential applications of BIM for different
supply chain areas (the four big blocks above-mentioned). Finally, the findings are unified
in form of a structured guideline for establishing BIM-based supply chain solution, which
is the ultimate goal of the research work, presented in Figure 2 below.
Figure 2. Overall research framework
Finally, the fifth chapter Discussion and Conclusion sums up the overall research work done,
presents the limitations of the study as well as suggestions for future research work.
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2 Literature Review
The aim of this chapter is to have a comprehensive overview of the academic research
regarding Building Information Modelling, Construction Supply Chain (CSC) and the
integration of the two, with the focus on the Supply Chain of the Contractors and their
interaction with other Construction Supply Chain actors, mainly throughout the
construction phase. Overview is crucial to provide possible directions for supply chain
management improvement with the support of BIM as a technological enabler for real-time
information sharing and integration among the stakeholders.
Therefore, main outcome of the literature review is a draft of the hypothesis about the
current state of CSC and BIM, as well as identification of research gaps which are crucial for
setting up the research questions and overall objectives of the work.
2.1 Challenge in the Construction Sector
Construction sector has been criticized for many inefficiencies, among which productivity
stagnation and low digitalization index (McKinsey Global Institute, 2017). On the one side,
demand for construction is expected to grow to $17.5 trillion by 2030 (Boston Consulting
Group, 2015), while there is the question whether the supply side (construction enterprises)
is ready to cope with it. This era of digital disruption shall not be considered as a threat for
traditional players due to accelerating number of new entrants with innovative solutions,
but rather as an opportunity to learn, collaborate and increase competitiveness on the
market. The opportunity is certainly there, and contractors shall seize it, while changing
their day-to-day business practices is certainly needed.
As researched by McKinsey Global Institute (2017), the core of the construction industry
stagnation can be attributed to: “Misaligned incentives among owners and contractors and with
market failures such as fragmentation and opacity”.
In order to understand the directions needed for change, it is relevant to identify issues the
industry has been facing according to their source of origin. Namely, Figure 3 below
demonstrates issues at three different levels, such as those related to external forces,
industry dynamics and firm’s operational practices. Within the following chapters, scope of
the research will focus on the latter two.
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Figure 3. Core causes for low productivity in construction sector
Source: Adopted from McKinsey Global Institute, 2017
Nevertheless, according to McKinsey Global Institute (2017) there are some macro areas
from which the change of practices could start, with a potential of increasing sector’s
productivity by 50 to 60%. Those relevant to the scope of the research work are presented
in Table 1 below.
Table 1. Areas for boosting construction productivity
Source: Adopted from McKinsey Global Institute, 2017
First potential area of improvement concerns industry practices, where collaboration and
partnerships as seen as good starting point for change. On the other hand, advancement in
supply chain management practices and technology (digitalization) can significantly impact
the productivity of the sector and are related to the capabilities of the firm. Implementation
of technologically advanced solutions can secure the solid competitive positioning of the
companies, while lowering costs and increasing productivity of day-to-day business. As
Area of improvement Possible direction Impact on productivity
Collaboration and contracting
Seek for collaboration practices – Integrated Project Delivery (IPD), long-term partnerships and “single source of truth”
8-9%
Procurement and supply chain management
Digitalize procurement and supply chain flows, improve contractor-supplier transparency and reduce delays, strive for just-in-time principle
7-8%
Technology Make BIM universal, use cloud and IoT for accurate real time data 14-15%
§ Increasing project
complexity;
§ Extensive regulation;
§ Informalities and
potential for
corruption.
§ Lack of transparency
within the sector;
§ High industry
fragmentation;
§ Contractual incentives
are misaligned.
EXTERNAL FORCES INDUSTRY DYNAMICS
§ Underinvestment in
digitalization, innovation
and capital;
§ Poor project management
and execution practices.
FIRM OPERATIONS
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reported by Boston Consulting Group (2017), digital solutions can provide annual global
cost savings up to $1.2 trillion in the engineering and construction phase (concerning non-
residential projects only).
Therefore, the following section of the literature review will focus on investigating issues
and opportunities within these areas previously mentioned, where the area of technological
solutions will tackle solely BIM as the technological enabler.
2.2 Building Information Modeling
This sub-section deals with the general definitions and characteristics of Building
Information Modeling (BIM), as well as its transformative power within the construction
enterprises. It covers those BIM-related topics relevant for understanding its application for
supply chain management in the following chapters.
2.2.1 Understanding the “Digital Evolution”
Construction industry has been facing the era of digital disruption. As any other industry,
construction has experienced the gradual process of digital transition by the introduction of
CAD (Computer Aided Design) which had at first allowed practitioners to switch from
hand-made to digital drawings in 2D format. This disruption brings new opportunities and
benefits to the industry actors, but some challenges arise as well within the need for
innovative operations of project delivery. In order to understand properly both the benefits
and the challenges, an overview of the BIM definitions is presented below.
“A BIM is a digital representation of physical and functional characteristics of a facility. As such it
serves as a shared knowledge resource for information about a facility forming a reliable basis
for decisions during its lifecycle from inception onward. “
- National BIM Standard
“A digital representation of the building process used to facilitate the exchange and
interoperability of information in digital format.”
- Eastman et al., 2011
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“BIM is a verb or an adjective phrase to describe tools, processes and technologies that are
facilitated by digital, machine-readable documentation about a building, its performance, its
planning, its construction and later its operation.”
- Eastman et al., 2011
From the definitions above, three keywords regarding BIM can be extracted:
digital, information and process.
Interestingly, no definition mentions modelling. Even tough 3D modeling of facilities is
enabled with BIM, key letter here is “I” and the information or insight which BIM is able to
provide to project actors, through the usage of digital technologies and establishment of
new ways of working (processes).
There are various maturity levels which can be implemented starting from 0 to 3, where
they have all evolved starting from CAD and 2D drawings. By saying evolved, it is not just
a simple evolution passing from 2D drawing to 3D models and objects, but it is a new data
environment, able to store various information, as well as new way of working. As
Weisheng et al. (2019) note, BIM is “live”, while any of the 2D CAD drawings can be
considered quite static. This can be clearly seen in the Figure 4 by representing the evolution
of BIM maturity models, initially defined by the UK National Standard.
Figure 4. BIM Maturity levels
Source: Re-diagramed by Lin et al. (2015) from initial diagram by Bew and Richards
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One of the core differences among above shown BIM maturities is the ability to collaborate
and create smooth and interoperable workflow, depending on the tools used. Firstly, BIM
Level 0 can be considered as a traditional construction practice pre-BIM period, where
specifications, quantities and cost estimates are produced manually, from 2D drawings
rather than derived from a 3D model. Data exchange can occur in the 2D paper/electronic
form. However, main difference between the levels 1, 2 and 3 could be noted as access
granted to the models used and level of integration among parties achieved, where Succar
(2009) has labelled the levels as Object-based modelling, Model-based collaboration and
Network-based integration respectively. The potentials for collaboration within the levels
are following:
§ Level 1 - Object-based modelling introduces the concept of object-based modelling
in single-disciplinary form in order to support 3D visualization, but without
modifiable parametric attributes. Thus, this level is supporting solely the design
project lifecycle stage, with no signs of model interchanges and collaborations.
§ Level 2 - Model-based collaboration enables the creation of BIM federated model,
which allows multidisciplinary project actors to share their parametric-based 3D
models within the common file formats such as Industry Foundation Classes (IFCs)
as well as working within the Common Data Environment (CDE). Furthermore, this
level introduces the other two BIM dimensions, 4D and 5D, by offering
interoperability with scheduling software or cost estimation databases respectively.
However, usage of certain standards related to files exchange and import/export
interoperability is needed to allow the smooth collaboration.
§ Even though majority of the industry actors are currently within Level 1 or 2, the
main goal is reaching Level 3 - Network-based integration and putting the concept
of “Open BIM” and Integrated Project Delivery (IPD) into practice. Within Level 3,
complete information transparency and real-time modifications sharing is possible,
since all the parties can work on a collaborative single project cloud-based model.
Example of tools allowing this way of working are Autodesk 360 and Graphisoft
BIMX, where each project actor has access to the field relevant to his role on the
project. Furthermore, thanks to the power of real-time connection via cloud, data
coming from different sensors and devices may be integrated into this environment.
Nevertheless, as a prerequisite for its implementation, redefinition of contractual
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relationships and processes, as well as revision of risk-allocation practices is needed
(Succar, 2009).
Another classification of BIM practices can be seen from the “dimensional” perspective.
When speaking about BIM, most would think of parametric-enabled modeling such as
architectural, structural, MEP or other, with the specific geometry data and specifications.
Indeed, these three dimensions allow the project team to spot the design gaps at early stages
of the project lifecycle, by having the possibility of clash detection and evaluation of
different design alternatives.
§ The core value of 3D BIM can be demonstrated with the Figure 5 below (AIA, 2007),
which can be considered as the “mainstream” curve of BIM’s role within AEC
industry, initially developed by Patrick MacLeamy describing the integrated project
delivery. Namely, BIM as a mean for prototyping and visualization allows
anticipation of project risks, mainly concerning ability to influence costs before
design issues in following phases occur. By early visualizing the discipline-specific
models in one BIM model, costs of design changes in early phases are lower than
those which may arise during the following project phases when the team and
machinery are already on the site and consume financial resources.
Figure 5. Value of 3D BIM
Source: American Institute of Architects, 2007
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Speaking of 3D models, another question arises and is related to the Level of Definition or
Level of model Detail (LOD) required from each party contributing to the common BIM
environment. LODs required from various disciplines (structural, MEP, architectural) rise
accordingly to the project lifecycle stage in which a certain deliverable is needed. There is
no need for very detailed modelling of each and every part of the future facility, since the
process should be efficient and actually ease the assembly on the site. Furthermore, higher
level of detail may be required for components ordering or production. Overview of the
possible LODs is shown in Figure 6 below.
Figure 6. Overview of different LODs
Source: American Institute of Architects, 2007
Furthermore, by continuing to add dimensions over the 3rd, BIM gives the possibility of
answering to different project needs. Possible dimensions are listed below.
§ 4D – Adding time
By adding time as a dimension, BIM gives an overview of both spatial and temporal aspects
of the project, thus providing all the project actors with the unambiguous logic behind the
activities sequencing. By connecting the project schedule with the 3D model of the structure
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and installations, alternatives of activities sequencing and installation plans can be
evaluated beforehand.
Moreover, time and space flows of specialized contractors (e.g. mechanical, electrical,
plumbing) on site can be visualized and managed more efficiently. Not only human
resources can be managed more accurately, but also flows of materials and equipment. This
is possible with the visualization of accesses to the site and throughout the site,
representation of large equipment and scaffolding locations and their alternatives, as well
as material storage areas.
All the above-mentioned functionalities can help optimization of on-site logistics,
concerning people and material flows, which will be tackled more in detail within following
sections.
§ 5D – Adding cost
The 5th dimension allows more accurate and automatized quantity take off and cost
estimation processes. BIM tools are able to compute the number of specific components,
space area and volume, quantities of certain materials, etc. This functionality significantly
reduces the probability of human errors and time waste, which may arise when computing
these quantities manually from 2D drawings. Nevertheless, mistakes related to the input
data can arise when developing the model itself.
Finally, when combining the previous dimensions and LODs, the Table 2 below outlines the
requirements of specific LOD in different project lifecycle phases. Certainly, this table differs
by project, where the specific requirements shall be specified within the BIM Execution Plan
(BEP).
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Project Phase LOD 100 LOD 200 LOD 300 LOD 400 LOD
500
Design (3D)
Non-geometric line, area or volume, not
distinguishable by type or material
Three-dimension
generic object, with material but no layout
or location
Specific object with
dimensions, capacities and
space relationships
Shop drawing/fabrication with manufacturing
and installation-related information
As built
Scheduling (4D)
Total project construction
duration
Time-scaled, ordered
appearance of major
activities
Time-scaled, ordered
appearance of detailed
assemblies
Fabrication and assembly details N.A.
Cost Estimation
(5D)
Conceptual cost estimation
Estimated cost based on measurement
of generic element
Estimated cost based on measurement
of specific assembly
Committed purchase price of
specific assembly at buy out
As-built cost
Table 2. LOD requirements for certain BIM applications
Source: Adopted from Bedrick, 2008, Weisheng et al., 2019
One perspective which is missing the responsibility of project parties involved and their
contribution to BIM CDE. Following chapter tackles this from the perspective of possible
BIM information and document flows.
2.2.2 Setting up the BIM process for the Contractor
After having an overview of BIM level boundaries and opportunities they offer to project
actors, this section deals with the BIM process flow, mostly from the perspective of the
construction contractor and concerning the design and pre-construction project lifecycle
phases.
As Sacks et al. (2018) note, the general document and information flows depend on the
owner of the first construction model to enter the BIM flow. Initial example (Figure 7) deals
with the case when the Contractor develops a construction model from 2D drawing, thus
more traditional approach.
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Figure 7. BIM process flow - Starting from 2D drawings
Source: Sacks et al., 2018
This traditional approach can cause inefficiencies when changes in the design model have
been made since there is a lack of parametric components and connection between the
construction and design model, thus causing time waste in model updates. This limits the
potential of the BIM solely on 3D (clash detection, constructability review, visualization)
and 4D (visual planning), diminishing the possibility of the 5th dimension. This occurs due
to inability to extract quantities from 3D model in order to support procurement and
production control (Sacks et al., 2018).
Figure 8. BIM process flow - Collaborative model
Source: Sacks et al., 2018
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Another case, more advanced, is the one where the integration of designers’ and contractors’
models into a common collaborative model arises (Figure 8 above). Since the 3D models are
produces separately, risk of modifications update is still present as in previous case, while
the benefits of higher accuracy appear.
Important thing to emphasize in this case is the nature of the shared model itself, which can
be distinguished into 2 cases (Sacks et al., 2018):
1. Single platform model, where multidisciplinary models can be opened and modified in
a single BIM platform, thus allowing real-time updates;
2. Federated model, in which modifications to each single multidisciplinary model are
done in discipline-specific models and must be imported again into a BIM integration
tool (e.g. Autodesk Navisworks Manage, Solibri, VICO Office or other).
The benefits of BIM collaboration can amplify when fabricators are included within a model
(Figure 9), especially in the case of providing their own 3D models (not the 2D shop
drawings which require additional effort in modelling afterwards). By integrating their 3D
models, information such as production details about specific systems and components is
provided. AGC (2010) argue that his integration can be considered as a path towards
Integrated Project Delivery, thus unlocking the collaboration potential of BIM.
Multidisciplinary actors such as architects, designers, contractors, and subcontractors work
together from the early phases of the project, which is enabled by a joint contract.
Figure 9. BIM process flow - Including fabricators
Source: Sacks et al., 2018
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Nevertheless, the usage of specific models and decisions regarding the information and
document flows shall be specified within the BIM Execution Plan. By doing so,
responsibilities regarding specific deliveries are clearly defined, mostly concerning the time
of the delivery, their required LOD as well as software used for model delivery and
communication (Hardin and McCool, 2015).
After having an overview of the possible document flows with BIM, another topic, related
to interoperability of data coming from various sources will be briefly discussed in the
section below.
2.2.3 Interoperability allows collaboration
BIM manager: “All right, so everyone using CAD needs to be saving down DWG s to 2010 for Frank. Make
sure you save those in the CAD folder and not the Native folder. We’re going to be using Tekla BIMsight for
coordination. If you’re using Revit, then you’ll need to export to IFC for BIMsight but export to DWG for
the CAD users. Don’t forget to save down to 2010.”
- Hardin and McCool, 2015
In order to allow BIM to unlock its collaborative potential, interoperability among project
actors’ deliverables must be enabled, as well application of certain BIM related standards
regarding information and document management. Given the complexity of construction
supply chain due to the involvement of many actors which generate data in different
formats and software infrastructures, some standards and procedures seem necessary
indeed. This complexity leads to inefficiencies in terms of work duplication, time waste for
information gathering and poor decision-making based on fragmented or outdated data,
due to the lack of the whole picture of the project (Ernst & Young, 2018). Furthermore, given
the multiple source of data in construction projects, which is being generated every day both
from site-related or office-related activities, real time connection among actors is crucial.
Thus, Sacks et al. (2018) explain the two most common approaches for achieving easily such
interoperability among project actors:
§ Usage of software infrastructure from the same vendor;
§ Usage of software from different vendors which support input/outputs files within
the same industry standard.
The potential of the two solutions differ, where the first one allows solid integration among
the multidisciplinary design models. As Sacks et al. (2018) notes, in a case when there have
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been some modifications within the architectural model, mechanical model will experience
the same changes accordingly. In the second case, objects within the models shall be defined
in a proprietary or open-source way (e.g. Industry Foundation Classes) to allow
interoperability among various formats of data. This case could seem more realistic,
especially since inter-organizational data exchanges are needed (e.g. architectural design
has been generated by a consultant external to the Contractor’s enterprise). Given the
emergence of new technologies in construction such as IoT and drones or mobile devices,
interoperability is needed to capture and share this real-time data from site. In general, these
issues can be tackled with APIs (Application Program Interfaces) in the form of plugins as
well, by creating well-functioning digital ecosystems.
Even when trying to achieve the 4th dimension of BIM, intra-organizational capability
among the design and planning team shall be established. For example, if structural design
has been done in Revit and project schedule in MS Project or Primavera P6, Navisworks or
Synchro is needed as an integrative tool to connect this data, while following certain coding
principles.
However, practitioners are still lost in this sense, since there is no unique standard
specifying which software infrastructure and formats shall be used for data sharing, thus
posing additional re-works and costs for the purpose of data visualization, search and
exchange. In order to allow smooth data exchange, a clear definition of software
infrastructures and data formats which will be in use throughout the project development
shall be specified within the BIM Execution Plan.
By tackling the interoperability point, a more comprehensive picture of BIM has been
created, mostly in its transformative power within and among the construction enterprises.
Accordingly, next section deals with one of the prerequisites for establishing BIM processes
– change.
2.2.4 BIM transforms enterprises
“The heart of transformation is the biggest challenge for most people — change.”
- Ernst & Young, 2018
Indeed, BIM can offer various advantages, but the road to those applications can be quite
long. What is important to be stressed is that BIM shall not be seen only as an application of
a specific software (i.e. Revit or Navisworks) inside the company’s premises for obtaining
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short term project-based benefits, but more as a methodology and mindset for future
construction supply chain optimization and effective multi actor collaboration within and
outside the enterprise boundaries. As noted by McKinsey (2019), success of BIM
implementation will ultimately depend on enterprise capability to establish smooth new
ways of working. However, in pursuance of this flow, a clear strategy and vision of BIM
shall be defined beforehand, with a clear roadmap explaining how to achieve those.
Even though application of BIM has been mainly conducted by the bigger or innovative
players within the AEC industry, its more intensive diffusion is expected to come. It is worth
mentioning that contractors and reinforcement manufacturers reflect a lower rate of BIM
adoption compared to architects and engineers (Aram et al., 2013). Study conducted by
Bosch et al. (2017) discovers lack of demand, both external (from clients and partners) and
internal (within the enterprise) as a barrier for BIM adoption. Following barriers are
concerning high investments needed for setting up hardware and software infrastructure,
as well as those related to the lack of competences and user-friendliness of the solutions
from the market.
That being said, BIM does really transform enterprises, both on intra- and inter-organizational
level. However, the areas of enterprise transformation stemming from BIM implementation
can be presented as in Figure 10 below:
Figure 10. Areas of enterprise BIM-based transformation
Source: Hardin and McCool, 2015
Hardin and McCool (2015) label these areas of transformation as:
“Three-legged stool as key success factors of BIM.”
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Tools / Technology
Probably, when thinking of BIM implementation, companies initially think of which
software infrastructure to adopt. These solutions may be integrated with the existing ones
of company’s practices or may require developing radically innovative ones. When
speaking about inter-organizational relations, the question of interoperability of data
exchange outside company’s borders must be tackled for achieving successful
communication, as mentioned in the previous section.
Process
One of the main challenges could be the re-designing of the processes and interactions among the
stakeholders. Whichever BIM solution the enterprise decides to implement, it would probably
differ from the existing organizational practices and procedures. Therefore, the project
actors shall not expect the new tools to be used in the same way as in the previous processes
but should rather think of how to establish new workflows.
Behavior
When implementing BIM, traditional mindset and practices should be left aside, since new
ways of working are required. This innovative working procedures shall be carefully
introduced to the employees via specifically designed training sessions. However, there
shall be an internal innovation team, responsible for designing and execution of these
trainings, as well as implementation of BIM strategy overall (Aconex Group, 2018).
Nevertheless, the top management shall be on board as well. All this has a certain cost, but
it shall be offset by value added from BIM adoption in the long term. After all, the people
are those who will drive the adoption of BIM, thus employee training costs may exceed
those of setting up hardware and software infrastructure (Sacks et al., 2018).
Finally, as anticipated, establishing a clear BIM strategy and roadmap is needed, in which
the three above-mentioned factors shall be well defined. As a report by Ernst & Young (2018)
notes, a clear digital strategy is an engine for the sound transformation path.
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2.3 Construction Supply Chain
“We will need a new supply chain to deliver our new products to our new set of customers. This supply
chain is the bridge between the customer needs of a market segment and the value-added of a product.
If we can’t connect the two, then we have a showstopper.”
- Walker William, 2016
Another relevant part of the research is understanding the construction supply chain itself.
This section will firstly tackle the overview of supply chain actors and flows among them,
as well as supply chain configurations in terms of diverse material flows. These
configurations are strictly related to the quote above. Namely, peculiarity regarding CSC
lies in its uniqueness for each and every construction project, because customer (Owner) is
the one which dictates the project requirements. Secondly “big blocks” of construction
material supply chain will be explained in detail (procurement of building materials /
components, production of building materials / components, transportation and logistics,
on-site assembly), following the logic of material flows towards the construction site.
Finally, core issues and integration trends among supply chain actors will be presented in
the final sections.
2.3.1 Construction Supply Chain | Flows and Stakeholders
In 1992, Christopher has defined supply chain as:
“The set of a downstream flow of material, an upstream flow of transactions and a bidirectional
flow of information.”
From the definition above, we can clearly identify three different flows within this chain:
material, financial and information. Later, a supply chain was considered to actually
constitute a network rather than a chain, as the multiple organizations that form it,
simultaneously generate different and multiple information streams (Christopher, 2005).
Therefore, the research on construction supply chain has been and may be conducted from
various perspectives, either intra-organizational, inter-organizational or cross-
organizational (Vrijhoef and London, 2009). The intra-organizational level concerns
material production chains, such as concrete (Aram et al., 2013) and specialized construction
operations. Despite material, information and financial flows, CSC is more complex, thus
requiring the observation of people, transportation routines and work equipment as well
(Cox and Ireland, 2002). In order to observe the inter-organizational SC level, the lack of
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standardization along the supply chain and soft skills, such as trust and leadership and
commitment (Kim et al., 2010) shall also be taken into account.
However, in order to understand the nature of the construction supply chains, the
definitions of construction projects are presented below:
“An endeavour in which human, material and financial resources are organized in a novel way,
to undertake a unique scope of work, of given specification, within constraints of cost and time, so
as to achieve beneficial change defined by quantitative and qualitative objectives.”
- Turner, 1999
“A project is a temporary endeavor undertaken to create a unique product, service, or result.”
- PMBOK
The abovementioned novelty can be identified within the construction supply chain as well,
due to its unique configuration, unique processes and stakeholders involved, as well as its
temporary nature. This could exactly be the point in which CSC differs from the
manufacturing one, since the construction supply chain is project based.
Construction Supply Chain Actors
What can be noticed from the definitions above is the configuration of the chain itself, with
multiple actors upstream contributing to the final value delivered to the Client downstream.
Those actors form the different tiers of construction supply chain (Lundesjö, 2015):
§ Tier 1 companies | Main Contractors and Designers (structural, MEP, architectural)
They are usually the closest to the Client and have a contractual relationship;
§ Tier 2 companies| Subcontractors (specialist/trade contractors or manufacturers)
They usually have a direct contractual relationship with the main contractor/tier 1;
§ Tier 3 companies | Manufacturers and material distributors
They could form a contractual relationship with tier 2 enterprises (as well as tier 1),
in order to supply materials or building components needed for specialist works.
As Lundesjö (2015) notes, tier 2 and 3 companies are hired to perform a certain work package
for the main contractor. Subcontractors can have a contract for installing
specific/specialized construction works, such as mechanical, electrical, piping, roofing,
façade, masonry/bricks. However, they may offer additional services such as design,
supply, and maintenance of their work package installed.Thus, the final value delivered is
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a direct function of the effective multi actor chain management, since around 75% of the
value of the final works stems from works of suppliers and subcontractors (Dubois and
Gadde, 2000).
These last two tiers are exactly the spot where the fragmentation effects in the supply chain
arise, due to a large number of small, labor intensive companies and competition-based
relationships with conflicting inter-organizational culture (Nam & Tatum, 1992; Robson et
al., 2014; Dainty et al., 2001). This puts the general contractor in a position of supply chain
manager or integrator. Since contractor is usually responsible for the quality of the final
product delivered, compliance with certain rules and procedures by subcontractors is
needed. As Lundesjö (2015) claims, compliance may be related to management of
distribution, deliveries and storage of materials. Since subcontractors are responsible for
their own supply chains within this complex network, this poses additional difficulties for
the general contractor in managing the flows and diminishes the visibility and effective
communication along the distant parties in the chain (e.g. between contractor and building
component manufacturer).
Given that the general contractor has a position of a supply chain manager, multiple
responsibilities shall be approached carefully. As Council of Supply Chain Management
Professionals states:
“Supply chain management encompasses the planning and management of all activities involved in
sourcing, procurement, conversion and all logistics management activities. It also includes
coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third party service providers, and customers.”
Therefore, contractor should not think only about managing the information and material
flows through different stages of their evolution throughout the project execution but shall
consider the management of the stakeholders involved as well.
In order to have an idea about the complexity of information and material flows along the
chain and positioning of different supply chain stakeholders, O’Brien et al. (2009) have
presented the configuration of CSC, shown in Figure 11 below.
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Figure 11. Overview of the Construction Supply Chain Flows and Actors
Source: O’Brien et al., 2009
Construction Supply Chain Flows
For the sake of simplicity and understanding, information and material flows have been
overviewed separately in the following discussion.
§ Information flows
Demonstration of information flows complexity can be seen in the amount of data generated
within a large infrastructure project, where around 130 million emails, 55 million documents
and 12 million workflows can be exchanged (Aconex Group, 2018). Further complexity
concerns also variety and velocity of this data (Figure 12).
Figure 12. The 3 Vs of Construction Project Data
Source: Ismail et al., 2018
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The 3Vs list from figure above give just a glimpse of the data which could be generated in
multiple formats, starting from the 3D design models, through planning and scheduling of
activities, to the data gathered on the site during the execution. Due to construction
companies’ inability to process this data, 95.5% of data gathered remains unused (Hill,
2017). To tackle this opportunity and exploit the “power of data”, construction industry
shall initially employ new ways of working and higher level of collaboration practices, in
order to be able to extract the value of the right data (insight) in a right moment and from
the right party.
Finally, what is important to be noted is the interconnected nature of these data and their
dependence on multiple supply chain actors. Information flows are usually readjusted
multiple times since they have to be revised and approved by various actors in order to
proceed flowing. As explained by O’Brien et al. (2009), the architect sends drawings to the
engineer, who recreates the CAD drawings with engineering information added. After
completion of design, the construction manager recreates the drawings to add construction
ready details and associated information. This type of information management practices is
highly inefficient. Issues stem from the lack of economic incentives for information sharing
and the absence of effective tools and methodologies to do so. The consequences are project
delays and errors, reflecting in the augmentation of the bullwhip effect (Lee and Billington,
1992) along the chain, where the building product manufacturers experience the highest
level of information variability, as the upstream tier suppliers.
§ Material flows
As anticipated by Vrijhoef and Koskela (2000), CSC all the material flows are converging to
the construction site semi-processed or ready to be assembled. Indeed, construction site is
an ad-hoc factory where all the material flows are transformed in their desired final form
(Cox and Townsend, 1998).
However, different material flows belong to different supply chain configurations. Those
chain configurations may depend on the location of material or component production (off
or on site), as well as the degree of engineering design required. Therefore, even the concrete
supply chain can range from prefabricated elements which are delivered and connected on
site (e.g. beams or columns) to delivery of ready-mix concrete which is poured on site. The
possible configurations of material supply chain can be seen in the Table 3 below.
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Type of building component Description
Made-to-stock components (MTS) § Mass produced components; § Examples - standard plumbing fixtures,
dry-wall panels, pipe sections.
Made-to-order components (MTO)
§ Predesigned but only fabricated once an order is placed;
§ Examples - prestressed hollow-core planks, windows, and doors selected from catalogs.
Engineered-to-order components (ETO)
§ Engineering design is required before the manufacturing;
§ Examples - Structural steel frames, precast concrete elements, façades, MEP systems or any other component customized to fit a specific location and fulfill certain function.
§ Special case - Modular construction with off-site prefabrication.
Table 3. Typical configurations of construction supply chain
Source: Sacks et al., 2018
As Sacks et al. (2018) claim, due to the high level of engineering needed for ETO
components, managing this material flow requires tight collaboration among the designers,
components producers and those assembling the components on site. However, present
material management practices demonstrate a lack of clear responsibilities and real-time
communication among the supply chain actors (Perdomo-Rivera, 2004).
2.3.2 “Big blocks” of the Construction Supply Chain
In order to understand the construction supply chain and actors, this chapter will provide
an overview of the main phases or “big blocks” through which the materials and related
information flow, such as: Procurement of building materials/components, Production of
building materials/components, Transportation and Logistics, Construction/On-site
assembly. Description and definition for each block is provided, as well as pitfalls of the
current practices. Overview is needed to later analyze whether and how those can be tackled
by putting BIM into practice.
2.3.2.1 Procurement of building materials / components
Procurement in construction is quite a broad term, while being mainly related to the process
of acquiring goods or services necessary for project execution. Charvat (2000) defines
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construction procurement as the process which enables the client to gather the project team
and resources needed to translate project idea into reality. Namely, acquisition of services
is related to the sourcing and contracting with construction subcontractors and material
suppliers, or other parties required to carry out a project. However, scope of the research
concerns acquisition of building materials, as it initiates the material flow towards the site
(the downstream part of the chain) and is highly bound to the activities of the supply chain
management.
Mission of the procurement department can be defined as following:
Acquiring the right products in the right quantity and within the project budget.
Therefore, needs of this department mainly concern a well-developed system for
information gathering required for drafting Bills of Quantities (BoQs) for each building
material/component, as well as their specifications and quality requirements. Indeed, in
this way the department can send the requests for proposals (RFPs) to various components
suppliers and evaluate their offers. After the supplier has been chosen based on the
established criteria, following step is revising the shop drawings delivered by the suppliers
before the production can start.
Procurement of materials is a dynamic process which can last throughout the whole
construction phase, thus shall be synchronized and connected with the needs of material
installation schedule on site. Special attention shall be given to those materials with long
lead times. As Sears et al. (2015) note, purchase orders shall contain the information related
to the time and location of material delivery, as well as specific requirements related to their
receiving, off-loading, inspecting, storage, handling and installation on site.
However, making mistakes in this dynamic nature is not quite desirable, since it has
drawbacks on other parties involved in the project supply chain. As Hadikusumo et al.
(2005) claim, traditional material procurement can be quite time-consuming process of
extracting material quantities and cost estimates, as well as informing the right supply chain
actors when changes in the design occur. If delay or uncertainty is present in these activities,
they will strongly affect the production of materials, their installation schedule on site, as
well as schedule of other construction activities which they are pushing. Therefore, there is
a need of tightly integrating the procurement and on-site logistics functions (Lundesjö, 2015)
in order to prevent these types of drawbacks.
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2.3.2.2 Off-site production of building materials / components
Following the logic of material flows, next step in the process is their production (if needed)
after the purchase orders have been placed. Even tough building components
manufacturers belong to the 2nd or 3rd tier of the construction project supply chain, their
management highly affects the construction lead times and main contractors’ supply chain.
As anticipated before, the ultimate value of the project is a function of multiple stakeholders
within the chain, where the majority of the building components require customized
engineering and fabrication, especially those belonging to Engineered-to-Order supply
chain configurations. As Sacks et al. (2018) claim, when these processes are led by 2D
drawings, they require a lot of labor-intensive work, which may be prone to human errors.
Another consequence of traditional practices are the long production lead times due to the
poor connection between the design and production supply chain actors. By failing to
establish this connection, additional downsides emerge, such as project delays and re-works
on site, especially when design changes occur during the construction phase (Eastman et
al., 2011). Therefore, there is a need for real-time information exchange regarding fabrication
scheduling and material delivery to the construction site (Sears et al., 2015).
2.3.2.3 Transportation & Logistics
Logistics deserve a lot of attention when speaking about supply chain management. Quite
comprehensive and widely adopted definition of logistics management is provided below
by the Council of Supply Chain Management Professionals (CSCMP, 2013).
“Logistics management is that part of supply chain management that plans, implements, and controls the
efficient, effective forward and reverse flow and storage of goods, services, and related information between
the point of origin and the point of consumption in order to meet customers’ requirements.”
Another definition, taken from The Chartered Institute of Logistics and Transport, labels
logistics as “the time-related positioning of resource”. Both of the definitions imply the dynamic
position of resources, while the initial one tackles the relevance of resource storage as well.
However, construction logistics quite differs from the manufacturing one, due to an
additional complexity related to its dynamic nature. Peculiarity is related to the management
of the multiple material deliveries on site, which should follow Just in Time (JIT) principle,
where the delivery is planned in the exact time period when the site is ready to install the
materials. Lundesjö (2015) describes logistics as a process of five rights (Figure 13), ensuring
that a certain product or service is in the right:
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PLACE TIME QUANTITY QUALITY PRICE
Figure 13. “The five rights” of logistics
Source: Lundesjö (2015), own illustration
Nevertheless, construction logistics may be distinguished as following: off site (related to
material transportation and delivery planning) as well as on-site, where management of
different material storage and equipment location is needed (e.g. cranes or scaffolding).
Since integrated coordination of people, materials and equipment is needed, these two are
quite intertwined as well.
Speaking of off-site logistics, additional complexities for logistics planning and
management in construction industry are related to the nature of the construction site and
its location. Namely, construction site may be located in dense urban areas where traffic
congestions and lack of access to site can impose challenges. Another case is that when the
site is located far away from urban zones, where construction of material factories close to
the site may be required (Lundesjö, 2015).
However, on-site logistics requires quite a comprehensive scope of works as well, including
planning the site layout and access points before entering the construction phase, as well as
gathering the real-time input from the multiple supply chain actors throughout the
construction phase. It may concern the material inventory management and planning of
deliveries together with the procurement and production department, thus it may be
concerned as a key connection point between on and off-site teams. When mistakes are
made off site, they can be directly felt on the site, due to the lack of storage space for the
materials which were ordered in larger quantities, “just in case”, before the moment when
they are actually necessary according to their installation schedule (Mossman, 2008).
Furthermore, Strategic Forum for Construction Logistics (2005) stresses the fact that
delivering the materials on site before they are actually required imposes time waste in
moving these materials to locations where they do not present a location-based barrier for
executing the works on site. However, by doing so and keeping stocks for a long period of
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time, an additional risk of goods damage or theft may emerge. Another important aspect of
early material delivery is its effect on cash flows, depending on the terms in contract
specified with the Client. If the contractor is paid only after the materials have been installed
(not delivered), this may significantly delay the cash inflows compared to cash outflows
(Sears et al., 2015). On the other hand, by failing to synchronize material deliveries with the
schedule, significant project delays may appear as a consequence, since the materials are
not available on site when their installation is planned.
The report “Accelerating Change”, issued by the Strategic Forum for Construction (2002),
calls for action within the current construction logistics management practices by
highlighting:
“A considerable amount of waste is incurred in the industry as a result of poor logistics”.
Nowadays the construction logistics has a secondary role, while it should be considered as
an important link between multiple supply chain actors, mostly concerning the connection
of teams off and on site, which is currently highly disjointed and not taken into
consideration even when executing very complex projects (Lundesjö, 2015).
2.3.2.4 On-site Assembly/Construction
Finally, after the materials and components has been designed, procured, produced and
delivered, they shall be installed on-site on the right position, quality and time planned.
Sears et al. (2015) define the construction as:
“The process of physically erecting the project and putting the materials and equipment into place, and this
involves providing the manpower, construction equipment, materials, supplies, supervision, and
management necessary to accomplish the work.”
Therefore, throughout the construction phase, all the previous planning efforts are put into
practice and tested. As anticipated before, general contractor is the supply chain manager
at risk (O’Brien et al., 2009), thus being responsible for the coordination of the works of
subcontractors and their work packages. Since the assembly of all the materials delivered
for the building is done on site, the contractors also have the responsibility of planning and
organizing people, materials and equipment in situ, while facing the uncertainty of the site
environment (Lundesjö, 2015).
In order to do so and guarantee the installation of components as planned, team on site
needs real-time information from multiple supply chain actors. However, it is relevant to
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note that majority of the practitioners on the filed still trace the installation status of
components based on paper documentation, by utilizing the drawings, specifications,
checklists and reports (Wang et al., 2007). Problem with these manually performed practices
is their inability to provide timely information exchange among the supply chain actors.
Consequently, delays of components deliveries and their incorrect installation may arise on
site (O’Brien et al., 2009). Typical example provided by Sears et al. (2015) concerns late
material delivery, when the material is not placed in its installation point when planned.
This stops the works, causing time and cost waste due to the idle labor and machinery on
site. Thus, poor management of information across various supply chain actors bring and
multiple all the issues on site, thus requiring additional effort from the site time for
coordination and problem-solving, while this time may be invested in value-added
activities. This shall be considered as a significant waste. As argued by Eastman (2008) only
10% of the time on site is invested in value added activities, while in the manufacturing
sector this number may reach 62%.
While this section has outlined the general definitions and issues within the separate parts
of the supply chain in order to present current practices of supply chain actors in a
structured form, the following section provides more integrative perspective of the supply
chain practices, since the actors and their activities are tightly interdependent.
2.3.3 Common issues of Construction Supply Chain Management
Looking at the performances of the construction sector overall, Shehu et al. (2014) claims
that efficiency and performance is on a significantly lower level than other industries.
Furthermore, as Koskela in 1992 claimed, this uniqueness in time and configuration may be
the cause for productivity stagnation of the CSC compared to the practices in manufacturing
industry. In order to have a comprehensive overview of sector’s (under) performance, the
identification of complexities and peculiarities of the construction supply chains are the
starting point, as presented in previous section but separately. However, understanding
these complexities is relevant for diminishing the barriers that prevent performance
improvement within the construction sector (Costa et al., 2019).
Therefore, some of the aforementioned CSC problems can be seen in the Figure 14 below
(O’Brien et al., 2009), represented in the form of project phases and actors involved within
those.
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Figure 14. General issues along the Construction Supply Chain
Source: O’Brien et al., 2009
The Figure 14 clearly aligns with the common opinion among the researchers, which is the
labelling of information flows as imprecise and non-transparent among the supply chain
actors, and certainly not timely. The major part of these wastes and issues stem from the
traditional management practices (Vrijhoef and Koskela, 2000). As a response to this loosely
coupled CSC, there has been an increased interest in the supply chain management theories
to design solutions for coordination improvement of subcontractor and supplier networks.
Therefore, SCM and related concepts (e.g. partnering among SC actors) have been proposed
as a mitigation strategy (Ying et al., 2015).
In general, SCM was labelled as a comprehensive management approach to increase
customer satisfaction, value, profitability and competitive advantage (Mentzer et al., 2001).
A more comprehensive view defines the role of SCM as achieving trusting and transparent
collaborations among the different SC members, returning mutual profits and
counterbalancing the project uncertainties (London, 2009; Vrijhoef and Koskela, 2000;
Vrijhoef, 2011).
This management of the CSC itself has been facing barriers of different kind for successful
implementation in the construction industry. As stressed by Costa et al. (2019), barriers are
those of industry specific, organizational (poorly defined roles & responsibilities) and
cultural (lack of trust, change inertia and short-term project orientation) kind, thus giving
many directions for the improvement, but requiring quite comprehensive solutions as well.
The construction industry “curse” of a single project focus and frequent presence of
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competitive tender offerings also present a barrier for supply chain integration (Dubois and
Gadde, 2000). Interesting fact is that various contractors and building material and services
suppliers, are willing to challenge this scenario by entering in more collaborative
relationships as a way of increasing their competitiveness (Costa et al., 2019).
Thus, the overall complexity and bottle necks of the CSC call for studying how different
SCM agreements could emerge and which consequences they could produce on the
industry’s efficiency and competitiveness.
2.3.4 Philosophy of the Supply Chain Integration
“In no other important industry in the world is the responsibility for design
so far removed from the responsibility for production.”
- Sir Harold Emmerson (1962)
As a response to fragmentation and downsides it imposes for construction supply chain
actors, several CSC integration guidelines have been proposed. For instance, Fabbe-Costes
and Jahre (2007) have classified the supply chain integration as the integration of flows
(physical, information, financial); processes and activities; technologies and systems and finally,
people (structures and organizations). Thus, in order to achieve this philosophy, the efforts
have to be put towards multiple directions, as a result of SC configuration complexity.
Furthermore, Mentzer (2001) suggests the following activities to implementation of an
effective SCM philosophy:
§ Mutually sharing information and knowledge;
§ Mutually sharing channel risks and rewards;
§ Cooperation and coordination;
§ The same goal and the same focus of serving customers;
§ Integration of processes and
§ Partners to build and maintain long-term relationships.
Timely information exchange and communication throughout the supply chain is perceived
as essential, specifically through early involvement of the actors, for example contractors,
subcontractors and engineers (Love et al., 2004). If actors continue pursuing linear and
sequential communication practices, early stages of the project will continue to suffer from
lack of value added. According to Akintoye et al. (2000), early engagement of contractors
and suppliers in the project design phase decreases the risks of buildability issues and
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increases the work integration and knowledge exchange. Furthermore, Bankvall et al. (2010)
propose a development of effective Information and Communications Technology (ICT)
systems for information dissemination, coupled with the use of standards for mutual
alignment of those, with the final aim of coordinated working and development of future
close relationships built on trust and understanding.
Therefore, the potential solution for the integration of CSC shall be technology-based in
order to enable timely information sharing among actors, but somewhat standardized, thus
allowing interoperability of the data exchanged. Furthermore, there shall be specific
organizational structure within the collaborators so to guarantee more efficient information
distribution. Finally, crucial aspect for integrating CSC is the trust among the contractors,
suppliers and subcontractors which is currently constraining transparent communication.
This barrier could hardly be defeated with a technological solution per se, thus some
regulatory initiatives or long-term partnerships for benefits sharing could be drivers for
incentivizing the SC actors to seize this opportunity. SC partnerships, which consist of
multiple sets of relations from the contractor, use SCM philosophy to regulate the material
and information flows, by encouraging close project-based collaboration and engagement
in future projects (Papadonikolaki et al., 2016). As argued by Kundu and Portioli Staudacher
(2015), these partnerships can be established on a project (short-term) or a strategic (long-
term) level. Short term relationships can allow reaching higher quality (Karim et al., 2006)
or cost efficiency (Harland et al., 1999) for a certain project execution by integrating
operational processes, while the long-term ones require years of collaboration and
commitment to share the culture and proven practices with partners.
The issue that arises is that the changes at a cultural level (i.e. lack of trust) are hard to be
implemented quickly since they depend on companies’ leadership directions and behavior
changes and are highly affected by industry-related and organizational barriers (Costa et
al., 2019). Since organizational barriers are those that are totally under the control of the
company, they could present a starting point for inter organizational SC reconfiguration,
further spreading it to other actors by clearly demonstrating the need and benefits of more
coupled supply chains. This initiative shall be most probably taken by contractors, with a
high bargaining power towards their suppliers and subcontractors, in order to allow
quicker diffusion of collaboration along the CSC.
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Some relevant examples can be taken from practice, such as Mace Business School, formed in
2006, with the aim of training the supplier companies, since Mace’s strategy favors long-
term partnerships with suppliers. Namely, the company has selected 20 suppliers from their
supply chain which were provided with top management training to improve supply chain
practices. Aim was to prepare the trusted suppliers to face the challenges of complex
construction projects.
In that sense, the following section aims at discovering the potential of BIM for achieving
collaborative supply chain management practices, as the technological enabler for real-time
information exchange among actors, by taking inter-organizational perspective.
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2.4 BIM for Supply Chain Management in Construction
“We are not going to ask you to produce anything more than you did in the past, just that it will be in a
different format. You probably already have what we need.”
- Skanska
As mentioned in the previous paragraphs, digital technologies could appear as a solution
for construction supply chain fragmentation and performance stagnation. Therefore, the
following sections will present an overview of the literature regarding interdependence of
BIM and construction supply chains from inter-organizational perspective. After having an
overview regarding overall potential of BIM for SCM, some proposed requirements for
establishing such practices will be presented.
2.4.1 Interdependence between BIM and Supply Chain Management
When looking at the role of BIM in the CSC, it could be defined as collaborative
methodology that ensures the correct parties get the correct information at the correct time
and get it right in the first time (BCIS of RICS, 2011). BIM enables information creation,
integration and preservation throughout the project life cycle (Barak et al.,2009), by allowing
database generation for future effective decision-making. Papadonikolaki and Wamelink
(2017) further define BIM as following:
“A domain of loosely coupled information technology (IT) systems for generating (authoring tools),
controlling (model checking tools), and managing (planning tools) building information flows
intra- and inter-organizationally, based on principles of information systems’ interoperability”.
Therefore, we could label BIM as a “single truth” of the project incorporated into the
Common Data Environment (CDE), where all the information is consistent, classified and
coherent (Eynon, 2016). Furthermore, this information shared shall be transparent and of a
certain quality (Kundu and Portioli Staudacher, 2015). By doing so, it is possible to eliminate
limited visibility among the distant supply chain actors and lead towards their closer
integration (Dubois and Gadde, 2000). The benefits of effective communication could be felt
not only within on-site activities, but also at a corporate and strategic level.
The concepts of SCM and BIM have only recently gained such a momentum within the AEC
industry, where BIM has been identified as a potential methodology for enhancing the CSC
performance by effectively integrating project stakeholders and managing the flows among
them. Nevertheless, BIM-enabled SCM practices are still far from commonly spread across
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the industry. Papadonikolaki et al. (2015) report the increasing interest of construction
actors in the application of the two, where the academic research has a role to outline the
benefits of doing so, by mapping and analyzing proven practices within the AEC industry,
in order to trigger future actions.
Papadonikolaki et al. (2015) claim that the four areas of BIM application, such as design,
information, construction and performance management, could be determinants of successful
BIM-enabled SCM, especially highlighting the importance of information and performance
management as a core of CSC. Thus, BIM could sufficiently regulate building information
flows, because it is a structured data model of building information per se (Eastman et al.,
2008) and could offer more consistent flows through open standards, such as Industry
Foundation Classes. By enabling open standards and interoperability of the information
exchanged among the actors, BIM does seem as an opportunity to be seized. But how much
are contractors and other actors using it?
Well, adoption has still not diffused on a large scale, but we could say that is steadily
increasing (Laakso and Kiviniemi, 2012).As anticipated in one of the previous sections, one
of the barriers to implementation is that of the need fordeveloping new processes, intra-
and inter-organizationally, since collaboration within BIM is not a built-in feature
(Cerovsek, 2011; Eastman et al., 2008). Cidik et al. (2014) highlights that the SC actors have
to pragmatically tailor their “design workflow” with the BIM models to their particular
discipline-related needs. Furthermore, sophisticated technological solutions for integrating
BIM with the Enterprise Resource Planning (ERP) system would be needed to guarantee
effective processes achieved on a project portfolio level.
However, one of the commonalities of both Supply Chain Management and BIM is their
potential to integrate multi-disciplinary actors for more effective collaboration. As proposed
by Bankvall et al. (2010), application of information technologies have the potential to
integrate information flows among multi-disciplinary teams by improving their
collaboration (Eastman et al., 2011) and enhancing project control (Bryde et al., 2013). Thus,
some of the CSC issues which can be solved by BIM are summarized in the Table 4 below,
by clustering them in intra and inter organizational level.
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Table 4. Addressing Construction Supply Chain issues with BIM
Source: Adopted from Vrijhoef and Koskela, 2000; Madanayake (Undated); Lee and Billington,1992; Kolaric and Vukomanovic, 2018
One of the most relevant areas for improvement enabled by BIM is the information
exchange, as a driving engine of the project supply chain, but improving communication
practices can trigger the improvement of material flows. By having up to date information,
building materials / components production planning can be harmonized, similarly to the
concept of Lean philosophy, where the materials are pulled to the site exactly when they are
needed according to their installation schedule. By doing so, wastes are eliminated in terms
of waiting for the right information, but also in terms of inventory reduction on site. These
practices may be achieved through BIM-enabled centralized information storage and access
for all the supply chain actors (Figure 15).
Level of observation
Issues in Supply Chain Management Practices Application in practice Potential of BIM
INTR
A-
OR
GA
NIZ
ATI
ON
AL
LEV
EL No supply chain metrics Not measured too often
By centrally gathering all the data, BIM can support
performance evaluation process with previously
defined KPIs
Missing link between enterprise and project
resource planning
ERP quantities (purchased) and real
executed project quantities do not match
ERP shall be integrated with BIM in order to allow real
time information update on a project portfolio level
INTE
R- O
RG
AN
IZA
TIO
NA
L LE
VEL
Poor communication among supply chain
actors
Supply chain fragmentation causes low
interconnection among actors
Information with parametric properties ensures up to date
changes of documents in a CDE, where accessibility of
the specific supply chain actor depends on his role and
responsibilities
Lack of material delivery transparency
Suppliers downstream face delays in material orders due to “foggy”
data
Supply Chain actors can access to updated delivery
times, since they can be tracked (e.g. Barcodes), stored
and shared in the CDE
Variability of data along the supply chain
Presence of bullwhip effect (especially for last tier suppliers) causing
difficulties for suppliers’ production planning and over/under inventory on
site
Real time visualization and classification of inventory on site with BIM can smooth the
material flow and reduce waste
Incomplete shipment analysis
Difficulty in distributing real time information to all supply chain actors
Cloud solutions can connect suppliers, contractors and logistics providers (if any)
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Figure 15. Traditional (left) and BIM-enabled (right) information exchange
Source: Lundesjö, 2015
Thus, BIM can produce positive effects on the information flows and configuration of CSC,
where for the guarantee of the successful implementation, a central responsibility is needed.
For instance, a BIM Manager would be responsible for the creation of a project database to
be used throughout the project lifecycle (Khalfan et al., 2015), in order to provide up to date
transparent information for separate SC actors, as well as to use it for future projects and
relationships.
After reviewing the potential of BIM for harmonizing SCM, following section deals with
prerequisites identified by researchers for establishing such practices.
2.4.2 Requirements for BIM-enabled Supply Chain Management
As a response to the opportunity of CSCM with BIM, Papadonikolaki et al. (2015) have
presented a BIM-based SCM model with a unique combination of a product and a process
model (i.e. BIM) with an organizational one by the means of Modelling and simulation.
Process modelling was used for SC activities mapping, product for IFC files representation
and organization for roles specification (Figure 16). Therefore, when considering BIM-based
supply chain management practices, all the three perspectives must be taken into account.
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Figure 16. Overview of the BIM-based supply chain model
Source: Papadonikolaki et al. (2015)
Modelling and simulation approach have outlined the stakeholder complexity along the
chain and the incompleteness of BIM to analyze the interactions among them, but only to
provide access to common information. Overall, one of the main takeovers from
Papadonikolaki et al. (2015) is the importance of BIM not only for the material and
information flows, but also for managing the stakeholder network within the supply chain, due
to the absence of a suitable organization structure. Thus, the following guidelines proposed
by Robinson (2006) have been used when designing the BIM-based SCM model:
§ The model should contain the information flows from BIM applications;
§ The model should be applicable and extendable to different SC projects;
§ The model when applied to a case should analyze the project phases;
§ The model should produce quantitative results for further analysis;
§ The model and its output should be acceptable by the SC actors.
Moving to the long-term perspective of integrated SCM with BIM, a multiple project case
study within Dutch AEC (Papadonikolaki et al., 2016) has analyzed SCM activities that
contribute to SC integration with BIM (adopted Vrijhoef, 2011) as well as BIM application
areas per SCM project (adopted from Cao et al., 2014). The SC actors analyzed have used
BIM protocols to define their BIM process aside from the existing SC contracts, which
defined their financial obligations and rewards.
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The research has resulted in categorizing SC collaborations with BIM as:
ad-hoc, linear and distributed.
Within the ad-hoc configuration (1/5 cases), contractor has been the coordinator of BIM, but
BIM application was not required by the contract among actors. Higher level of BIM
adoption was identified in linear configuration (except certain suppliers), where in 2/5 cases
the contractor kept the role of BIM coordinator, but had separate BIM meetings with the SC
actors, causing duplication efforts in information exchange. Finally, distributed
configuration (2/5 cases) has proven to be more efficient than the linear one, due to the
uniform information sharing among the actors. Results of the research have marked the new
emerging roles of the CSC actors within BIM-enabled SC partnering, such as:
§ The contractor was usually the BIM-coordinator and often offered the infrastructure
(physical and digital) for BIM sessions (4/5 cases), where also the architect was
responsible for this function (1/5 cases);
§ The architects and structural engineers were BIM-proficient in all cases. The architects
usually had the additional task to integrate building information from suppliers that
were not using BIM (3/5 cases).
§ Some suppliers and subcontractors also used BIM because of either internal or external
demand (4/5 cases).
Overall, BIM does show the potential for the integrated approach to CSCM, where the
contractor would have a role of a BIM-based SCM initiator and coordinator, but further
information standardization is needed for the specific needs along the organizational
structure. Concerning suppliers and subcontractors, it is interesting to note that almost all
of them included in the research have used BIM. This could be a peculiarity of the Dutch
construction industry, as well as their willingness for information transparency, but it shall
be considered as an important pre-requisite for effective functioning of BIM-based SCM.
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2.5 Gaps found in the literature
There is still room for exploring inter-organizational working with BIM, and particularly
from a SCM perspective (Papadonikolaki et al., 2017). One of the researches proposes in
depth exploration of the interdependences among actors, processes and the sharing of
building product models (Papadonikolaki et al., 2016).However, seems that within the BIM-
based SCM research presented the gap concerning the collaborative management of the
material flows, which could be the direct consequence of timely information exchange.
Therefore, future research should try to include the BIM-enabled material management in
the model, and as proposed by Robinson (2006), by considering the different phases of the
project lifecycle. Therefore, the first research question emerges:
� Which are the opportunities and trends of BIM-based Supply Chain?
Moreover, the main part of the research regarding implementation of BIM along the supply
chain has been mainly conducted within the boundaries of the Dutch and UK construction
industries, while the authors are highly encouraging the validation of the hypothesis and
models developed for other countries. The peculiarity of the Dutch industry is a quite low
presence of cultural barriers, thus Costa et al. (2019) propose a further research addressing
countries with construction activities segmentation, since the barriers and relationships
among actors could be context specific.
Therefore, it would be of an interest to conduct an exploration on a European level (and
wider) in order to understand the main barriers perceived by various supply chain actors for
adopting such transparent supply chain practices which may be enabled by BIM. However,
a research shall be also able to detect the enablers for overcoming those barriers perceived
by the actors.
Therefore, in order to explore the two above-mentioned topics, other two research questions
have emerged:
� Which are the common barriers for establishing BIM-based Supply Chain?
� How could a Contractor set up a BIM-based Supply Chain?
However, final aim of the research should be to propose a comprehensive guideline for the
BIM-enabled collaborative practices along the construction project supply chain, by starting
with Main Contractors as initial supply chain integrators.
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Marijana Zora Kuzmanović 58
Finally, it is relevant to note some of the hypothesis drafted after the initial literature review
regarding BIM and SCM, under which the research will continue:
§ Hypothesis 1: Construction Supply chain is very fragmented, due to its temporary
project-based nature.
§ Hypothesis 2: This fragmentation is coupled with inefficient information
management and high variability of data along the supply chain actors.
§ Hypothesis 3: Information Technologies (IT) such as Building Information Modeling
(BIM) have the potential to improve the information exchange.
§ Hypothesis 4: Application of BIM to the Supply Chain Management of Contractor
can increase the overall performance of the construction supply chain and
competitive positioning of the companies.
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3 Research Methodology
This section explains the purpose of the work, research questions used as a guideline for
covering the topic in a comprehensive way, as well as multiple methodologies applied for
answering to those questions.
3.1 Purpose of the work
Aim of this research is to understand the trends regarding various BIM-enabled applications
for supply chain management in construction industry, and consequently, collaborative
potential of BIM for integrating the currently highly fragmented construction project supply
chains for improving information and material flows. Under the hypothesis that BIM is able
to improve these currently wasteful practices, it was of interest to systematically list
potential of BIM for different supply chain areas, as well as explore among the practitioners
the awareness of such applications, perception regarding barriers for achieving those and
key enablers necessary for successful implementation.
3.2 Research Questions
In order to cover the above-mentioned research topic in a comprehensive way, answering
to the three research questions has been set as a main objective of the thesis. In the following
discussion, these questions are explained briefly, as well as proposed structure for
systematically answering to those in the form of “blocks” of focus, with the aim of
simplifying the wide scope of the research, which includes multiple stakeholders and areas
of the construction supply chain. The three research questions are listed below, while
structure of the answers for those are presented in the following section.
� RQ.1 Which are the opportunities and trends of BIM-based Supply Chain?
� RQ.2 Which are the common barriers for establishing BIM-based Supply Chain?
� RQ. 3 How could a Contractor set up a BIM-based Supply Chain?
The first one concerns structuring the applications of BIM for improving different areas of
the project supply chain as well as the overall supply chain performance, while the second
one deals with understanding the perceived barriers by practitioners for achieving such
practices. These two questions aim at answering the WHAT and WHY part of the topic BIM
for Supply Chain Management, to map the potential applications and benefits which stem
from implementing those for getting the control of information and material flows in supply
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Marijana Zora Kuzmanović 60
chains. Finally, the third one seeks to gather insights from the practice by understanding the
processes of collaboration and core enabling factors necessary for reaching the vision of
BIM-based SCM. Therefore, the third question answers the HOW part of actually setting up
the BIM-based supply chain solution.
3.2.1 Which are the opportunities and trends of BIM-based Supply Chain?
Following the logic of material and information flows from 3D environment to their
installation on site, opportunities have been classified within four “big blocks” of
construction supply chain:
§ Procurement of building material/components;
§ Off-site production of building materials/components;
§ Transportation and Logistics;
§ On-site Assembly/Construction.
As anticipated, material flows are triggered from the upstream part of the chain with the
process of material procurement and purchase orders, towards the downstream part (their
assembly on site) and value delivery for the Client. However, since the construction supply
chain actors and activities are tightly intertwined, consideration of overall benefits
regarding information and material flows will be presented as well, underlying the
importance of integrating these blocks and connecting them in real-time as a prerequisite
for effective management and control of the supply chain which BIM can offer.
3.2.2 Which are the common barriers for establishing BIM-based Supply Chain?
Innovative technological tools such a s BIM impose various barriers for adoption within the
single organization per se. However, in order to reach above-mentioned opportunities along
the whole project supply chain, observation of barriers on inter-organizational level is
needed as well. For example, social factor may be very relevant, since sharing of data and
knowledge facilitated by BIM shall go beyond the boundaries of one organization and
require tighter collaboration among the members of supply chain (designers, contractors,
suppliers/subcontractors). For the sake of understanding multidimensional factors
influencing the adoption of BIM for supply chain management, the barriers have been
clustered into four main blocks:
§ Economic – Lack of financial resources for investing into BIM solutions;
§ Organizational – Complexity of integrating processes and defining responsibilities;
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Marijana Zora Kuzmanović 61
§ Technological - Appropriate software infrastructure for collaboration;
§ Social – Attitudes towards information transparency and risk allocation.
Inspiration for such division has come after reviewing previous researches, where the
authors encourage examination of barriers and exploration whether they could be context
specific, mostly concerning the social component which could be tightly dependent on the
country of operations (Costa et al., 2019).
3.2.3 How could a Contractor set up a BIM-based Supply Chain?
The answer to this research question seeks to provide a guideline in the form of key success
factors needed for setting up a BIM-enabled project supply chain, mostly concerning people,
processes and technology. Perspective taken was that of the main contractors, as potential
initiators of such practices, but considering the enablers for BIM-based collaboration among
tightly interdependent supply chain actors as well. As argued by Fabbe-Costes and Jahre
(2007), in order to achieve successful integration of actors along the supply chain,
multidimensional perspective must be taken into account, while considering the integration
of people (organizations and their relationships), processes, technology and consequently
information and material flows.
Figure 17 below presents the three research questions and structure of their answers.
Figure 17. Overall research framework
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3.3 Research Methodology
Throughout the research work, different methods were utilized for gathering specific
insights related to the three previously mentioned research questions. Since the nature of
the research is explorative, mixed method has been chosen for data gathering and critical
analysis. Indeed, certain overlaps among chosen methodologies occurred when answering
to the research questions. For example, in order to answer to the first research question, both
findings from literature and survey in the form of questionnaire were used to compare the
opportunities listed in literature and those perceived by the construction practitioners.
However, literature review has been used throughout the whole research, both for
understanding the topics and getting the author confident with the concepts of BIM and
supply chain management in construction, as well as for structuring the potential of BIM
for SCM applications in the later stage of the research. The choice of the methodology for
answering the specific research questions is presented in the Figure 18 below, while the
process followed is explained in following sub-sections.
Figure 18. Research Methodologies adopted
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3.3.1 Literature Review
Literature was constantly supporting the research. Firstly, literature review was used as a
base for setting the knowledge and confidence in the topic of the author, mostly concerning
BIM per se and the meaning of the concept, overview of the supply chain management
practices in construction industry and potential areas of improvement, as well as for
identifying the research gap in current findings related to BIM-based supply chains.
Furthermore, literature review was conducted in the later stage of the research, for
answering the first research question by clustering the identified opportunities of BIM
applications for supply chain management by the area of their occurrence along the chain.
Academic literature was mostly collected via search engines such as Scopus and Google
Scholar, by using the key words relevant for the topic. Besides the academic papers found
on those platforms, many books related to Building Information Modeling or Supply Chain
Management in Construction were constantly supporting the research. Furthermore, due to
the quite novelty of the topic and its relation to digital transformation of the construction
industry practices, consultancy house papers were used as well (e.g. McKinsey and Boston
Consulting Group) in order to complement to the knowledge of existing academic research
with real case studies. Primary language of the search was English.
3.3.2 Survey
The choice of using survey as a methodology in this research arises from the need to gather
insights from multiple supply chain actors about their current supply chain relationships,
their awareness about the potential of BIM for improving those, as well as barriers perceived
which may arise when deciding to collaboratively use BIM in multiple areas of the project
supply chain. Therefore, quantity in terms of data gathered was needed to assess the current
industry awareness regarding the possibilities which BIM could offer for SCM.
Furthermore, both quantity and diversity were needed to gain insight whether the barriers
for transparent collaboration could differ according to certain actor and/or country of
operations. Since the survey was used in a standardized form, it can be considered as a
measurement tool for gathering the “snapshot of how things are” at a certain moment, from
a target sample of respondents (Denscombe, 2010). However, one of the risks when
performing research with the support of survey lies in the quality of data gathered (which
may in certain way bias the interpretation of the results obtained) and inability to tackle the
topics in depth (Kelley et al., 2003). Thus, in order to tackle this trade-off between quality
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and quantity, interviews with BIM-related industry experts have been performed in a later
stage of the research, which will be mentioned in following sections.
Sample & distribution
Survey has been conducted on the European level and wider, where the target respondents
were multiple actors along the construction supply chain: Owners/Clients, Designers,
Consultants, Contractors, Suppliers/Subcontractors. These multi-disciplinary respondents
have been chosen due to the nature of explorative study and the need for including diverse
perspectives when tackling topics related to the inter-organizational practices.
Survey has been communicated in a form of close-ended questionnaire to the companies via
e-mail directly, via national construction organizations (e.g. ANCE in Italy) and finally via
BIM-focused LinkedIn groups to widen the sample and include respondents outside
Europe.
Survey structure
Questions for the respondents has been divided into 4 blocks (Figure 19):
Block 1: Profiling the respondent companies
Questions from block 1 were relevant for understanding the sample of the respondents
regarding their role in the supply chain, size (in terms of annual turnover and number of
employees), country of operations and types of projects they execute (public or private).
Block 2: Supply chain relationships
Main aim of the questions from this block was to understand the nature of the relationships
within the supply chain, related to supplier selection criteria, existence and nature of the
partnerships, as well as barriers for pursuing partnering practices.
Block 3: Perception about BIM for supply chain management
3.1 Mapping the perceived potential of BIM for SCM
These questions were mostly aimed at mapping the current perception of industry players
regarding BIM potential in different areas of the supply chain and overall in terms of
improvement which these practices could bring.
3.2 Mapping the perceived barriers of BIM for SCM
Barriers were observed at two different levels: intra-organizational (regarding BIM
implementation constraints within one organization) and inter-organizational in the form
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Marijana Zora Kuzmanović 65
of perceived feasibility for integrated implementation of BIM along the supply chain.
Respondents were asked to indicate feasibility perceived separately for main contractors
and suppliers/subcontractors.
3.3 Future of supply chain management with BIM
Finally, it was interesting to ask the respondents about their perception of future
development of SCM with the support of BIM.
Figure 19. BIM for SCM survey questionnaire structure
Types of questions
Some of the questions were designed as multiple-choice ones, where the respondents were
given the opportunity to choose multiple areas where BIM could bring improvement and
cause constraints for implementation. In these types of questions, it was important to gather
information about the overall sample awareness and perception of how things are. On the
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other hand, some questions required from respondents to give a certain grade, based on a
5-point Likert scale, mostly concerning the strength of the barriers for establishing
partnerships with supply chain actors (1-very low relevance to 5-high relevance), as well as
when mapping the feasibility for BIM implementation along the supply chain from four
different perspectives (organizational, technological, economic and social). The latter type
of questions required from respondents to grade the feasibility separately for the contractors
and suppliers/subcontractors to identify whether there is some difference in feasibility
perceived for two different types of supply chain actors, with the aim of tailoring the
guidelines for implementations separately.
Total responses collected were 33, of which 21 European companies and 12 diffused
worldwide. In the Figures 20, 21, 22 and 23 below, the profile of the respondent companies
is shown, where they quite differ in terms of position in the project supply chain (mostly
led with Contractors and Designers), number of the employees and annual turnover.
In this section, profiling of the respondents is shown only in order to demonstrate the
sample. Insights gathered will be used within the Sections 4.1 and 4.2, mostly related to the
potential of BIM-based SCM perceived by the companies and barriers of different kind
respectively.
27%
18%33%
9%
12%
DesignerConsultantContractorSupplier/Sub-contractorNo response
64%15%
21%
BothPublic ProjectsPrivate Projects
30%
21%18%
9%
21%No responseUp to EUR 2 millionEUR 3 million to 10 millionEUR 11 million to 50 millionMore than EUR 50 million
6%
15%
24%
55%
No response
1 to 9 employees
10 to 50 employees
More than 50employees
Figure 20. Role of the companies in the supply chain Figure 22. Types of projects executed
Figure 21. Annual turnover range Figure 23. Number of employees
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Data analysis
In general, data was analyzed by simply ranking the responses in order of their relevance,
corresponding to the number of respondents which have chosen the answers from multi-
choice type questions or by the strength of the barriers perceived. This helped collecting the
perception of “how things are right now” in the construction industry and where the focus
of future improvements shall be. Finally, analysis will also indicate whether there are some
differences in perceptions according to different variables: profile of the respondents (e.g.
role or country of operations).
3.3.3 Interviews
After mapping the potential opportunities, perception of improvements which they could
bring, as well as barriers which could be faced, interviews were needed to collect data
mostly on the HOW part of collaboratively establishing BIM for project supply chain, from
the perspective of Main Contractor. In order to answer to this question, experience of the
people interviewed regarding BIM was crucial, while in the survey questionnaire this had
no such relevance. Profile of the interviewees is presented within the Table 5 below.
Table 5. Profile of the interviewees
The choice of the interview arose from the novelty of the topic and lack of numerous projects
executed in a completely BIM-integrated supply chain, such as those in the Netherlands
explored by Papadonikolaki et al. (2016; 2017). Due to this constraint, conversation with
experts was more explorative in order to gather their opinion about the prerequisites and
key enabling factors for establishing BIM-based SCM practices, through following three
dimensions: People, Process and Technology. As mentioned before, the choice of these three
Specialization of the interviewees
Years of experience in AEC industry
Country of current operation
Position in the supply chain
BIM Manager and Adjunct Professor 10+ Italy General Contractor
BIM Coordinator 15+ Germany Consultant
BIM Manager & BIM Serbia Board Member 15+ Serbia BIM Solutions Developer
CEO and Managing Partner 25 + Serbia Consultant (Project and
Contract Management)
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areas come from Fabbe-Costes and Jahre (2007) since they are crucial aspects which must be
taken into account when speaking about inter-organizational integration.
The nature of the interviews conducted was mostly unstructured, relying on the open-
ended questions, in order to allow the interviewees to focus on their areas of expertise
(Denscombe, 2010). For example, conversation with Italian BIM Manager was mostly
oriented on the process part and guidelines used for designing and managing the
workflows, since it is his areas of occupation, as well as relationships with suppliers. On the
other hand, interview with the CEO and contract specialist was more oriented towards the
contractual aspect of BIM when implemented collaboratively on the project. Furthermore,
since Serbian BIM Manager is also a BIM solution developer, technology and people
dimensions were mostly relevant, due to his experience in BIM solution implementation in
various companies and projects, supported with training. However, in order to keep them
on the topic, three blocks were mostly used as a guideline and scope of discussion. Within
the block of people, topics tackled were mostly related to suitable contractual relationships
among supply chain actors operating in BIM environment, as well as organizational
structures, capabilities and trainings needed for driving the BIM implementation.
Moreover, block of processes concerned the need of BIM-driven workflows, protocols and
standards. Finally, technology block was focused on infrastructures for information and
material management solely provided by BIM platforms and those complementary ones
needed to support this way of working.
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4 Findings
This chapter tries to unify all the findings from various research sources and tools used
throughout the research. Section 4.1 tries to define the concept of SCM with BIM, as well as
demonstrate some proven BIM-enabled applications for collaborative supply chain
planning, management and tracking. At the end of the section, perception from practitioners
about the potential of BIM-based SCM gathered from the survey will be presented. Section
4.2 deals with understanding the barriers which shall be overcome to reach those practices.
Within this section, some findings from the survey will be presented and critically analyzed,
mostly comparing to the insights gathered from the literature. Following section (Section
4.3) tries to identify the key enablers for implementation of SCM solutions, in the form of
overcoming four barriers mentioned before. Finally, Section 4.4 sums all the findings and
provides a guideline for setting up BIM-based SCM.
4.1 What is BIM-based Supply Chain Management?
Firstly, it is interesting to take a look at the chosen two definitions below:
BIM
“ABIMisadigitalrepresentationofphysicalandfunctionalcharacteristicsofafacility.Assuchitservesasasharedknowledgeresourceforinformationaboutafacilityformingareliable
basisfordecisionsduringitslifecyclefrominceptiononward.“
-NationalBIMStandard
SCM
- CouncilofSupplyChainManagementProfessionals
SCM may actually present the mindset oriented towards collaboration and cooperation
among the supply chain actors, while BIM may be considered as a technological enabler for
connecting them, by storing, sharing and visualizing reliable and timely information
regarding the status of the facility and its components.
“Supplychainmanagementencompassestheplanningandmanagementofallactivitiesinvolvedinsourcing,procurement,conversionandalllogisticsmanagementactivities.Italsoincludescoordinationandcollaborationwithchannelpartners,whichcanbesuppliers,intermediaries,thirdpartyserviceproviders,andcustomers.”
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When the two are put together, they may present (author’s interpretation):
“Collaboration and cooperation for achieving just-in-time management and tracking of
interdependent construction supply chain activities with the aim of value co-creation and
the means of transparent BIM-based technological environment.”
Therefore, if these two are used to complement each other, outstanding opportunities may
be grasped, which will be presented in the following discussion.
4.1.1 Which are the opportunities and trends of BIM-based Supply Chain?
While Chapter 2 has shown a clear interdependence between BIM and SCM, especially
regarding their ability to integrate members of the supply chain by allowing them real-time
communication, this chapter dives into specific applications of BIM to activities relevant for
SCM, mostly related to supply chain tracking, or “taking control of the supply chain”. These
applications are direct consequence of features which BIM offers, such as visualization and
real time communication, supporting members of the supply chain in collaborative decision
making such as planning of material deliveries just-in-time, in the right quantity and quality
when they are needed on the site. In that sense, following discussion tries to identify
numerous potentials which can be unlocked when having BIM proficient supply chain
network connected in an intelligent digital and timely way. However, these are presented
independently from the contract types which may regulate exchange of the information and
data among supply chain members (designers, general and specialist contractors and
material suppliers). This point of view will be briefly tackled when answering to the HOW
part in the Section 4.3.
As anticipated before, the logic followed was that of the stages of supply chain where the
materials “flow” starting from defining them within the visual digital environment (3D
information model) according to Client’s preferences. Namely, after components are being
modelled in a 3D environment and correlated with all the additional information (their size,
shape, location, specifications), they are then procured, fabricated, transported to the site
and assembled on a planned facility’s position by their schedule. Finally, they should “flow
back” to the digital environment from the real one, into a “digital twin”, which is the ultimate
value-added for the Client.
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Table 6 below summarizes main findings related to the opportunities which may be
facilitated with BIM proficient supply chain, while the following discussion explains each
of the blocks in detail.
Table 6. Potential of BIM by construction supply chain area
Source: Own illustration
Area of the supply chain Potential applications of BIM
Building materials/components
Procurement
§ Export of accurate material quantities coupled with
specifications from object-based BIM model; § Creation of bills of materials (BoMs) and purchase of
materials directly through BIM cloud tools; § Specification of codes for identification, coherent with
manufacturer (e.g. RFID tags, Barcodes/QR codes); § Complete 4D-enabled construction schedule for material
ordering; § Integration of up-to date BIM data with ERP.
Building
materials/components Off-site Production
§ Usage of BIM Digital Objects, coordination and update from real-time exchanged BIM model;
§ Specification of codes for components identification (e.g. RFID tags, Barcodes/QR codes);
§ Error free fabrication via BIM and CNC machines; § Establishment of pull production flow.
Transportation and Logistics
§ Site workspace and layout management; § Modelling of equipment movement and positioning; § Schedule coordination for Just in Time delivery; § Real-time location tracking of materials (e.g. with RFID
tags, Barcodes/QR codes); § On-site inventory optimization.
Construction / On-site assembly
§ Improved coordination of specialist contractors on site;
§ Code-based components quality control (e.g.
Barcodes/QR Codes, RFID tags);
§ Real-time installation status monitoring and uploading;
§ Scan to BIM and generation of the digital twin.
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4.1.1.1 Procurement of building materials/components
BIM approach to material procurement allows gathering object-oriented information in the
form of size, shape and location of a specific building component, as well as material’s
physical characteristics, its unit cost and quantity take off (Grilo et al., 2011). However, the
3D federated model must be generated properly, containing all the necessary attributes and
classifications (Eynon, 2016) in one place, pulled from various disciplines (e.g. structural,
MEP, architectural, façade). By being able to obtain such information, procurement process
can be harmonized in terms of quality and reliability of data obtained, especially compared
to the manual quantity take off practices from 2D drawings. Example of BIM-based platform
can be seen in the Figure 24 below, which demonstrates the clear benefit of BIM in creating
material and component lists, as well as bills of quantities.
Figure 24. BIM-enabled material procurement
Source: Bexelconsulting1
However, another possibility may be related to using object and location-based codes for
identification inside the 3D models and transferring those to the manufacturers, in order to
establish unambiguous communication, coupled with visualization. Indeed, if proper
1 https://bexelconsulting.com
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codification is done at earlier stages of the project, more accurate tracking of their flows and
status towards the downstream part of the chain can be facilitated in later stages. As Grilo
et al. (2011) argue, BIM can be driving a change in material procurement, due to its ability
to harmonize unstructured information into structured data which can be used in an
interoperable way among the supply chain actors.
Furthermore, the emergence of BIM Digital Objects (BDOs) and BIM procurement
tools/applications may completely revolutionize the material procurement process, leading
it toward online procedure (Eastman et al., 2011). Example of such application is
BIMsupply®, as a cloud-based solution that allows the creation of bills of materials, tenders,
bids and direct orders within a BIM project in Autodesk Revit. Therefore, lists of products
and materials can be shared with building product manufacturers in order to get pricing,
quotes or to place direct orders. However, this tool may be merely used for MTS material
components due to their standardization and wide availability, while for ETO components
more tight collaboration with suppliers is needed.
Moreover, possibilities of BIM do not stop here. By connecting the 4th dimension (time) with
object and location-based 3D information model, BIM facilitates timing of purchase orders,
enabled by dynamic visualization. This is very important feature for procurement planning,
especially concerning building components with long lead times which could significantly
cause delays on site (Eastman et al., 2011) if procurement and on-site teams do not exchange
timely information. Furthermore, buffers may be planned in a more accurate way, or at
least, unambiguous impacts of late procurement on following construction activities may
be visualized with schedule simulations. Contribution of 4D arises in improved timing of
releasing purchase orders, related to triggering the material flows from the upstream part
of the chain (component suppliers) in the right moment. By visualizing the exact works
scheduled (in terms of their scope and location) for a specific date, procurement department
can unambiguously plan the material orders and their delivery on the site, in the right
moment, at a right quantity and specifications (ibid).
Another emerging topic regarding BIM-enabled procurement is its integration with existing
Enterprise Resource Planning (ERP) solutions. Both BIM and ERP have a purpose of
“Information Systems”, where BIM can take this role on a project level, while ERP on
enterprise and project portfolio level. If those two systems would be integrated, resource
planning and purchasing process could be significantly improved on the enterprise level.
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One study, conducted by Kolarić and Vukomanović (2018), argues that BIM potential has
not been fully exploited since there is a lack of data integration with ERP software. This
triggers the issue of mismatch between real project data (ordered, built and charged
quantities) and enterprise accounting data.
For example, Kolarić and Vukomanović (2018) have stressed an opportunity of ERP and
BIM (Revit software) integrated solution, provided by Olilo Technologies2, where the
functionalities are following:
§ Direct link between Revit Object database & ERP;
§ Designer is made aware of stock at design time, to make sure that right
object/family/material is available at production time;
§ Bill of quantity extraction from Revit to ERP;
§ Cost estimation can be automated by pulling the quantity & material details from
Revit and their corresponding cost from the ERP;
§ Work schedule can be generated from the Revit model and ERP data;
§ The system can keep updated people of various departments by automating the
email process and informing them with stock, material and cost updates;
§ Field Staff Collaboration.
4.1.1.2 Off-site production of building materials/components
Kensek and Noble (2014) stress:
“BIM’s ability to link a manufacturer’s specifications to a designer’s model is one of its best strengths.”
Indeed, by facilitating timely data exchange among designers, contractors and building
components manufacturers in the form of object-based and “smart” digital data linked to
those objects, BIM can harmonize information exchange and consequently material flows
among supply chain members. As Hardin and McCool (2015) argue, suppliers can
contribute to the project success by creating parametric components that contain product
specifications in a digital format, as well as life-cycle information useful for facility
management. This is exactly what the early adopters within the industry are trying to
accomplish, by involving their suppliers in the early project phases and seeking to synergize
the production with the design (Alwisy et al., 2018). According to Erwin Van Schooten,
2 https://www.olilo.ae
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Managing Director at Spelsberg3, inclusion of suppliers/manufacturers into BIM
collaborative environment can add significant value to both contractors and material
suppliers.
When having BIM proficient suppliers, supply chain actors are given a greater degree of
flexibility when changes in design of components occur, due to the easiness of exchanging
up-to-date parametric-based changes within 3D models (Holzer, 2016) and cloud-based
CDE. As Eastman et al. (2011) claim, manual checking and verification of these documents
may take weeks, while in the reviewing system offered by BIM, this type of time waste is
significantly reduced. Furthermore, by minimizing the manual checks along the process,
higher degree of both design and production accuracy is guaranteed, as well as reduction
of human errors (Garagnani and Manferdini, 2013; Hardin and McCool, 2015; Gigante-
Barrera et al., 2017) due to unambiguous visualization in 3D for all parties. By carefully
coordinating the design changes and production process, BIM significantly improves
information exchange and synchronizes the workflows (Mirarchi et al., 2017), as well as
reduces cycle times for design revision and production (Sacks et al., 2018). Another
consequence of these practices concerns reduction of Requests for Information (RFIs) and
excessive costs and delays those may impose (ibid). An example worth mentioning is BIM-
enabled construction of baseball stadium in USA, where timely communication among
supply chain members have resulted in less than 100 RFIs for structural steel elements,
compared to possible 10.000 RFIs if such project was not supported with BIM (Boston
Consulting Group, 2016).
Moreover, when having 3D models from suppliers in higher levels of detail needed for
fabrication and construction (LOD 400), coupled with their object and location-based
codification (as mentioned in previous sub-section), time needed for problem solving on
site, potential reworks and generation of as-built models can be significantly reduced,
making these practices a valuable resource for contractors. It is true that this codification
and identification of building components can be done in Excel spreadsheets, but this
actually has no real value in BIM-enabled communication where elements can be associated
with their location and scheduled installation on site. Real value of codification with means
of Barcodes/QR codes or RFID (Radio Frequency Identification) tags lies in tracking status
3 Spelsberg is a German manufacturer of plastic enclosures for the electro technical market.
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of these components throughout their production, transportation and installation on the
site. Identification tags associated to digital objects in the model correspond to the ones
assigned to the real building components. By tracking components status in real time,
production flows between factories off-site and on-site are synchronized and both
contractors and manufacturers gain in terms of inventory reduction and costs of keeping
those in stock (Sacks et al., 2018). Furthermore, manufacturers are able to get control of their
production planning and schedule the components delivery when they are needed (e.g.
maybe one month after initially scheduled by procurement plan if delays on site have
occurred), by clearly visualizing components status (e.g. solely on cloud or 4D). These RFID-
based practices have already been proved for precast concrete components (Ergen et al.,
2007). Namely, example may be provided for prefabricated concrete elements, where the
digital collaboration within the supply chain has managed to track the status of thousands
of concrete precast elements throughout their fabrication, delivery and installation (Sawyer,
2008). This was achieved through the sharing of color-coded and synchronized Tekla model
viewer among the project parties, as well as usage of RFID tags for components status
tracking (Figure 25 below).
Figure 25. Visualizing status of prefabricated components
Source: Vela Systems, Inc (adopted from Sacks et al., 2018)
Eastman et al. (2008) mentions another successful case study of involving the steel producer
into the CDE where all the information exchanged was up to date (e.g. 3D and 4D models,
plans and all documents). When having the access to synchronized 4D model, steel
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producer has managed to plan more accurately the schedule of production and delivery of
the components. By doing so, the unique connection between the site and the components
production has been achieved, allowing the pull production flow from CDE and up-to date
information sharing. However, a key factor for achieving production planning offered by
BIM is the timely and unambiguous bidirectional information flow among the suppliers and
contractor on site.
Even though Hardin and McCool (2015) argue that BIM can provide strongest potential in
ETO material flows (e.g. structural, MEP elements) due to the ability to close the gap
between designers, contractors and manufacturers, impact of BIM in standardized material
flows (MTS) shall not be neglected. Namely, it is interesting to mention that usage of BIM
digital objects (BDOs) may revolutionize the way building component manufacturers
operate and compete. There are some manufacturers which already present their building
products in a form of BDOs (not catalogs in pdf format) and store them in online databases.
Besides providing certain product details and specifications, with usage of BDOs, suppliers
are able to deliver rich geometric information to the contractors regarding the products (Al-
Saeed et al., 2019). Example of such online platform is NBS National BIM Library4, where
searching various categories of digital objects (e.g. windows and doors, floor finishes),
downloading them in the IFC format and integrating them parametrically with existing 3D
models is made possible.
Concept of BIM-enabled fabrication and capability of coordinating 3D models is still far
away from being widely spread among the material suppliers, even though they could
significantly benefit from establishing such practices (Hardin and McCool, 2015), both in
terms of waste reduction (e.g. reworks, design changes and inventory) as well as securing
their competitive advantage. Not to mention the potential of introducing Computer
Numerically Controlled (CNC) machinery integrated with BIM software (e.g. Autodesk
Inventor CAM) within their production systems, which have already been successfully used
in precast concrete components, steel and glass elements (Sacks et al., 2018). As Hamid et
al. (2018) claim, by having building components already defined in 3D environment, this
information from BIM environment can be easily translated to those needed for production
activities of CNC machinery. Indeed, usage of BIM for production may lead towards more
4 https://www.nationalbimlibrary.com/en/
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frequent pre-fabrication practices, especially those related to modular construction (Sacks
et al., 2018).
4.1.1.3 Transportation & Logistics
BIM applications for workspace management optimize the construction activities on site,
such as inventory location and storage (Moon etal., 2014). Various BIM-based solutions (e.g.
Trimble Sketchup or Autodesk InfraWorks 360) offer features which can support
developing plans for crane logistics, material storage areas, site access points, material
hoists, scaffolding (Hardin and McCool, 2015). Furthermore, by integrating BIM with
Geographic or Geo-spatial Information Systems (GIS), additional level of detail can be
added and enable more precise vertical construction and more accurate tracking of material
deliveries (Irizarry etal., 2013).
Role of BIM lies in timely logistics planning and management prior to the start of the
construction process. Instead of having multiple static 2D site logistics plans, BIM offers
dynamic visualization, since different stages of building components’ assembly have
different needs of site layout in time. For example, 4D simulations of crane lift schedules
connect the activities of the schedule and allow optioneering in executing parallel works on
multifloored building (Hardin and McCool, 2015). Some add-in applications for BIM
platforms such as smartCON Planner by Archicad provide detailed site layout and options
for simulation of equipment positioning (Sacks et al., 2018).
When the site layout has been optimized in terms of equipment access points and
positioning as well as storage of materials, this data may be shared with the building
components suppliers to plan material production and deliveries more accurately, or just
when they are needed (not earlier nor later). Overview of the dynamic site environment in
real time and with components coding and their inventory status on site allows
collaborative planning with suppliers, enhanced with status monitoring of building
components and pulling according to the updated installation plan. Since the construction
site is a dynamic factory, where multiple material flows are needed in different moments
and set of subcontractors may be responsible for their procurement (e.g. MEP elements and
architecture for ceilings), it is important to conduct this material coordination in a controlled
way, with all information in one CDE shared among project members. In that sense, logistics
plays a crucial role in connecting the supply chain members on site and outside the site.
These practices lead to reduced inventories on construction site (Eastman et al., 2011), which
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is a great value for the construction sites with the lack of storage and handling areas in a
tight environment, thus deliveries must be carefully planned according to daily or weekly
schedule needs. In that sense, real just-in-time logistics is necessary to allow the smooth flow
of materials when and where they are needed. Here RFID and Barcodes/QR codes
coherently specified with material suppliers and shared via cloud environment may play a
crucial role of pulling these materials according to inventory status and installation needs
on site (Lu et al., 2011; Hinkka and Tätilä, 2013). These can be related to the Kanban system
of lean philosophy, whose aim is to signal the inventory status in an electronic way
(Brintrup et al., 2010). However, in order to make this component tracking system work,
these tags shall be agreed with the components suppliers beforehand and attached to the
components (as mentioned in previous sub-section), prior to their delivery on site.
Furthermore, by integrating RFID with GIS, opportunities for component tracking go
beyond the site and their inventory management but can also gather real-time information
regarding transportation of these components (Irizarry et al., 2013). These practices can add
significant value when the production of the components is done in a foreign country, where
borders may have significant impact on transportation lead times. However, in other cases,
usage of Barcodes/QR codes may be sufficient for determining components status in the
form of milestones (e.g. in production, ready to be shipped, in transportation, arrived)
which shall be then updated to cloud environment and visible for all parties.
As anticipated within the sub-section 2.3.2, the role of the logistics management in
construction shall not be neglected, especially in BIM functioning environment. Indeed,
when multidirectional communication between site, procurement department and building
components producers is made possible in real time and supported with 4D visualization,
uninterruptable material flows may be achieved in the form of just-in-time delivery and
logistics management.
For example, Skanska, as one of the most prominent first movers in the industry, was
developing a Tag & Track system, excelling the use of RFID tags and barcodes on products
and components delivered to the site. By obtaining real-time monitoring of material
production, delivery, storage and installation, this new way of working could save up to
10% of project construction costs (World Economic Forum, 2016). Furthermore, these
connected systems can provide forecasts and alerts to project team when inventories are
running short in order to execute timely orders for replenishment (McKinsey & Company,
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2016). In that sense, Edirisinghe (2019) illustrates an interesting vision of fully connected
supply chain with the usage of RFID sensors (Figure 26 below).
Figure 26. Connecting the supply chain with RFID tags
Source: Edirisinghe, 2019
Thus, logistics integrates the data flows from upstream part (components production and
shipment status) with the downstream part (real time status of components installation on
site). Therefore, the following section will explain how this downstream data may be
visualized from the site by inputting installation status of components.
4.1.1.4 On-site Assembly/Construction
By using BIM as a tool for virtual prototyping (even in the form of 3D solely), initial benefit
which arises is the multidisciplinary design visualization in one federated model. This can
significantly reduce the costs of design changes or errors within on-site assembly. Namely,
functions of BIM such as clash detection and constructability analysis allow anticipation of
these risks (Papadonikolaki et al., 2015). Significance lies in the reduced time and resources
for problem solving when they arise on the site, since labor and machinery shall be paid for
well, stagnating and waiting for problems to be solved on site. However, if needed, problem
solving for the teams on site is also made easier with visualization of 3D drawings and
details for eventual clarifications before the real components “fitting” and coordination
issues occur.
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When adding time into visualization practices (4D), all the above-mentioned opportunities
which BIM offers for procurement, production and logistics may be obtained. Namely,
gathering real-time components installation status on site is needed, which distributes this
information to all the supply chain members upstream via cloud and keeps the components
status up to date. In order to do so, a simple tablet or mobile device connected with the
common cloud environment may be used on site to update the status of the certain building
components (e.g. arrived, checked, stored, installed) or percentage of their realization. This
data is than used for the purpose of logistics planning which then pulls all the other material
flows to the site when they are needed. Numerous studies have proven the concept of BIM-
enabled progress monitoring and components status update on site, with a simple
connection of real environment and status of components with their associated objects in a
shared 4D model (El-Omari and Moselhi, 2011; Davies and Harty, 2013; Tserng et al., 2014).
Thus, construction schedule may be updated in a timely manner and distributed to all
project actors in need, rather than waiting for updated 2D MsProject or Primavera files to
be printed and distributed within the dynamics of construction site where multiple issues
may impact the schedule just within one day. By integrating tools like BIM 360 field and
Navisworks for visualization, real updates may be transmitted in a matter of seconds.
Example of such case is shown in Figure 27 below, taken from Matthews et al. (2015).
Figure 27. BIM-enabled components status monitoring
Source: Matthews et al., 2015
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However, as a model for progress monitoring proposed by Getuli et al. (2016) notes, final
verification of components installation status shall end with the site director.
Finally, when integrating BIM with another emerging technologies such as laser scanning,
passing from as-designed to as-built has never been easier (Bosche , 2012). This may be
achieved by scanning real components installed via point cloud principle and uploading
them to the multidisciplinary visualization tools as Navisworks (Hardin and McCool, 2015;
Stojanovic et al., 2018). These processes also facilitate quality control and assessment of the
components installed (Kalyan et al., 2016).
This is the ultimate value, going downstream the chain as a result of collaboration, in
providing the digital twin to the Owner and supporting the harmonization of facility
maintenance process. By doing so, the material and components flows have finalized their
cycle from the Client’s vision and their initial representation within the 3D models, to their
physical installation on site and generation of as-built by putting them back into 3D digital
world with all the additional information which they have collected throughout their flow
(mostly contributed by the material manufacturers).
Even though the potential of BIM has been shown by different blocks of application, it can
be seen within the initial Table 6 that some opportunities do intertwine within the blocks
(e.g. components coding and tracking with Barcodes/QR codes or RFID tags). That is
exactly the value which BIM offers, by connecting those blocks in one common
environment, where real time information sharing allows collaborative management and
tracking of material flows throughout the supply chain stages. This is an important point to
be stressed since common practices are fragmented and do not pursue such integration as
demonstrated above.
In that sense, it is also needed to understand the current awareness of the supply chain
actors regarding the potential improvements enabled by BIM, since one of the constraints
for adoption could be also related to their lack of awareness. Following discussion will
represent the potential perceived by the practitioners (from the survey described in Section
3.2).
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4.1.2 Perception of the practitioners regarding the potential of BIM-based SCM
Due to the core value of BIM in facilitating real-time information exchange and keeping all
supply chain members updated, it was important to gather the perception of industry actors
about the efficiency of current information exchange practices. Thus, when practitioners
were asked to grade the information exchange efficiency from 1-very low to 5-very high,
opinions were quite aligned and graded the efficiency as medium (grade 3/5 from Likert
scale), where almost 40% of the respondents have graded it is low-medium (grade 2/5). This
common opinion among the practitioners validated the hypothesis generated at the
beginning of this research and confirms the findings from multiple academics as well.
However, this shall not be approached as a problem, but more as an opportunity for the
improvement, where BIM is ready to step in and ease day-to-day activities in the industry,
as demonstrated in the previous discussion.
Thus, it is relevant that supply chain parties are aware of this opportunity which BIM can
offer regarding information flows. Table 7 below confirms this, where centralized information
storage and information transparency are those ranked as top 3 benefits (chosen by 20 out of
33 respondents) which BIM can offer for SCM. Another positive feedback from companies
concerns recognizing control of processes as the most important opportunity provided by
BIM, which is crucial requirement for effective supply chain management (Bryde at al.,
2013), especially in the context of fragmented construction supply chains with limited
visibility on the overall project execution processes. Furthermore, when the practices are
transparent, mistakes can be identified more easily and solved in a timely manner, as
demonstrated.
It is interesting to note that BIM-enabled material and stakeholder management do not appeal
that much to the companies, as well as the potential of improving supply chain responsiveness
(Table 7). These are other relevant BIM-enabled values stemming from information sharing
and transparency, but the issue may be that of the unawareness about the potential, since
the literature and pilot projects mentioned in previous discussion proved benefits in these
areas. Another consequence of information transparency - reduced variability of data, whose
potential has been recognized by less than 50% of the respondents, shall be able to close the
gap among those operating off-site (designers and building components manufacturers)
and on-site (contractors), and reduce the occurrence of bullwhip effect, where the last tier
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suppliers are receiving high variations in orders quantities and timing of deliveries (Lee and
Billington, 1992).
Table 7. Perception regarding opportunities in SCM enabled by BIM
Another relevant topic is the awareness about different supply chain areas in which BIM
could bring benefits, presented in the form of the four big blocks from previous sub-section.
Common opinion of the respondents can be seen in the Table 8 below, where almost 70% of
the respondents think BIM could bring improvements within On-site assembly, followed by
Procurement of materials. On the other hand, a lower number of companies marked
Transportation and Logistics and Production/Prefabrication as potential areas of improvement.
However, as argued before, logistics shall be core area of improvement which pulls the
information from downstream part (the site) towards the upstream part (manufacturers) in
real time. Finally, less than 30% of companies recognize the opportunity of BIM-enabled
production, even though manufacturers could be those quite advanced in BIM, especially
with the usage of BDOs and digital catalogs.
Which of the following opportunities could BIM provide to Supply Chain Management?
Response type: Multiple choice Ranking Count Response
1 24 Control of processes 2 21 Cost efficiency 3 20 Centralized information storage 3 20 Information transparency 3 20 Quality control 6 14 Material management 6 14 Reduced variability of data 8 11 Stakeholder management 8 11 Supply chain responsiveness
10 10 Reduced bureaucracy effort Out of Total 33
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In which supply chain areas could BIM bring benefits?
Response type: Multiple choice
Ranking Count Response 1 23 On-site assembly 2 17 Procurement of materials 3 12 Transportation and Logistics 4 8 Production/Prefabrication
Out of Total 33
Table 8. Perception regarding supply chain areas of improvement
To conclude, main opportunities of BIM have been recognized within the information
exchange practices relevant for effective SCM. By facilitating timely data exchange among
the actors, companies do agree that BIM can enable them control of their supply chain
activities. This observation is very positive due to the complexity of the project chain related
to the amount of information exchanged on a daily basis. Opportunities identified are
considered as relevant during on-site assembly and procurement of materials. Interestingly,
even though academic research stresses the potential and importance of just-in-time
logistics and off-site production management with BIM, respondents do not feel so
confident about it.
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4.1.3 Why supply chain actors shall collaboratively embrace BIM?
As mentioned in the previous sections, BIM-based SCM solutions should be able to solve
many problems which actors are facings nowadays, mostly related to the complexity of
managing and controlling all the information and material flows in the short-term oriented
and fragmented project environments, which practitioners have recognized within the
exploratory survey conducted. That is the ultimate power, eliminating misunderstandings
(“foggy” data) and late information exchange between teams on site (contractors and
specialist subcontractors) and those off-site (suppliers of the building materials, designers,
Clients as well). BIM should be able to smooth these flows among dispersed actors and lead
them towards collaboration for mutual benefits of establishing fully transparent, controlled
and responsive supply chain and consequently, satisfied Clients. Summary of BIM potential
for solving information management issues is shown in Table 9 below.
Table 9. Solving Construction Supply Chain issues with BIM
Source: Adopted from Vrijhoef and Koskela, 2000; Madanayake (Undated); Lee and Billington,1992
Therefore, when striving for cooperation enabled by BIM, collaborative planning and
management of the supply chain can be obtained, leading to significant improvements.
These practices may be able to move the construction industry from being scrutinized as
one of the least productive ones. Furthermore, BIM-based SCM leads towards Lean
construction and eliminates the wastes, by allowing transparent processes, signaling the
Issues in Supply Chain Management Practices Scenarios in practice Potential of BIM
Poor communication among supply chain
actors
Supply chain fragmentation causes low
interconnection among actors
Information with parametric properties ensure up to date changes of documents in a
CDE, where accessibility of the specific supply chain actor depends on his role and
responsibilities
Lack of material delivery transparency
Suppliers downstream face delays in material orders due to “foggy”
data
Supply Chain actors can access to updated delivery times, since they can be tracked (e.g.
Barcodes), stored and shared in the CDE
Variability of data along the supply chain
Presence of bullwhip effect (especially for last tier suppliers) causing
difficulties for suppliers’ production planning and over/under inventory on
site
Real time visualization and classification of inventory on site with BIM can smooth the
material flow and reduce waste
Incomplete shipment analysis
Difficulty in distributing real time information to all supply chain actors
Cloud solutions can connect suppliers, contractors and logistics providers (if any)
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bottlenecks and allowing stable workflows (Sacks at al., 2018), compared to the traditional
practices of shifting risks to other supply chain parties. BIM-enabled way of working allows
contractors and suppliers to catch information when it is created by any of the supply chain
parties and consequently, to take control of the material flows and interdependent activities
in real time (e.g. logistics management and quality control).
On the other hand, there is another perspective which should be taken into account when
answering to WHY and it is the motivation for investing significant effort and resources for
the establishment of BIM-based SCM. If the supply chain members are not aware of the
potential and do not initiate on their own pursuing such practices, the demand side may
soon be the one which will require full exploitation of BIM among the supply chain, leaving
those who lag behind with limited business opportunities. Therefore, it is relevant to
consider the demand side as well, and the Clients (both public and private) which pull their
requirements from all the supply chain members. When speaking of the public ones, efforts
from policy makers have been made both on the national and European level. With the
update of European Union Public Procurement Directive (EUPPD) in 2014, aim of the
European Parliament was to raise national initiatives for BIM adoption by specifying:
“All the 28 European Member States may encourage, specify or mandate the use of BIM for publicly
funded construction and building projects in the European Union by 2016”. (Autodesk, 2014)
Nevertheless, leaders in BIM-related regulation may be found in the UK, Netherlands,
Denmark, Sweden and Norway (Autodesk) with a clear vision and strategy on a national
level, thus incentivizing the supply chain members towards the BIM implementation
throughout the execution of public projects. This may be one of the ways to incentivize the
adoption, as a “selection criteria”, with a clear obligation to comply with certain BIM
requirements if they wish to bid for the project. However, some sophisticated or informed
Clients and facility management companies from the private sector have also started to
impose BIM as a requirement when tendering. The ultimate value in both cases lies in the
“digital twin” for the future Owner, thus they shall be willing to pay more for this significant
value-added of having the complete information of physical asset in a digital form, which
allows reduction of operation and maintenance costs (PwC, 2018).
Indeed, reaching the state of BIM-based SCM in construction industry shall be a vision,
which requires a long process and commitment from the supply chain members, while their
mission shall be to take position of the leaders in that field and grasp the potential which
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BIM offers them. On this path, constraints of different kind and resistance from network of
multidisciplinary actors may occur and block the process. These constraints may be those
related to technology adoption solely (as BIM), eagerness for partnerships and collaboration
relevant for SCM, and finally those related to completely digitalizing the supply chain.
Thus, study of supply chain members’ current relationships and barriers for integration can
help design the guidelines for the successful implementation. Indeed, BIM can enable
integration by means of technology, but the supply chain must be ready to cope with it and
pass from linear and sequential to collaborative and parallel communication. This is exactly
what the following sub-section tries to achieve, to collect the insights from current industry
practices and feasibility of achieving the vision of BIM-based SCM.
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4.2 Which are the common barriers for establishing BIM-based Supply Chain?
When speaking of barriers in the context of BIM and SCM, they shall be carefully considered
from different perspectives:
§ Intra-organizational perspective
These are related to BIM adoption challenges solely which may arise within the boundaries
of one organization and affect the motivation for BIM adoption.
§ Inter-organizational perspective
On the other hand, since collaborative SCM solutions require involvement of multiple
supply chain members and their commitment, it is necessary to explore the current nature
of the relationships among supply chain members and their eagerness for cooperation,
before tackling the topic of digitalizing the whole supply chain.
Therefore, in order to answer to this question (RQ.2), the multidimensional barriers for
establishing transparent collaborative practices enabled by BIM have been clustered into
four blocks:
§ Economic – Lack of financial resources for investing into BIM solutions;
§ Organizational – Complexity of integrating processes and defining responsibilities;
§ Technological - Appropriate software infrastructure for collaboration;
§ Social – Attitudes towards information transparency and risk allocation.
Therefore, the following discussion presents findings gathered from survey questionnaire
by firstly tackling nature of relationships in the supply chain and barriers for partnering
practices, followed by BIM adoption barriers on intra-organizational level and finally
perceived feasibility of establishing BIM-based SCM from the four aspects listed above.
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Nature of relationships in the supply chain
Firstly, before tackling the BIM-related part of the supply chain, it is of interest to
understand the current relationships between actors and their nature, since existence of
partnerships among actors is tightly coupled with collaborative management of information
and material flows along the supply chain (Vrijhoef, 2011).
Table 10. Supplier selection criteria
Table 10 above signals the traditional construction practices, where the project actors use
price as the most common selection criteria when sourcing suppliers, followed by quality.
This may indicate that price-based competitive tendering is still present, which could pose
difficulties in achieving supply chain integration (Dubois and Gadde, 2000). However, it is
encouraging to notice the relevance of trust when choosing suppliers in more than 50% of
the responses. Furthermore, timeliness which should be important criterion is used only by
less than 30% of the respondents. Finally, application of BIM has still not been used as a
selection criterion widely. Out of six respondents which require usage of BIM from their
suppliers, four are the designers, and only two contractors (out of eleven contractors in total
from sample) which fully or partially operate in the public sector. Therefore, there is the
feeling that those contractors using BIM as a selection criterion, probably do so due to the
regulation (e.g. EUPPD). However, this finding may also be correlated with the wider BIM
adoption among the designers than the contractors.
According to McKinsey Global Institute (2017), collaboration and partnerships are one of
the possible areas of improvement within the construction industry and could boost
productivity by 8-9%. Therefore, in order to understand the current situation on partnering,
How does your company select subcontractors and/or material suppliers?
Response type: Multiple choice
Ranking Count Response
1 25 Price 2 24 Quality 3 18 Trust 4 12 Timeliness 5 6 BIM Application 6 2 Competence
Out of Total 33
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respondents were asked whether they have some strategic partnerships in place and if so,
in which activities related to supply chain management (Table 11 below, where the activities
were adopted from Vrijhoef, 2011). Overall, almost 60% of the companies do have some
partnerships in place (19 out of 33). However, it is relevant to understand the nature of these
partnering practices.
Table 11. Nature of partnerships in the supply chain
In the case when partnerships are present among the supply chain members questioned,
they are mostly aimed at partner sourcing, as well as at integration of operations and information
and knowledge exchange. Motives for partner sourcing are those of the need for additional
resources or services which may be provided by supply chain member and could be both
short-term (project-based) and long-term oriented. Presence of the latter two (operations
integration and information and knowledge exchange) is highly positive since it is bounded to
more efficient management of the flows in the supply chain (Vrijhoef, 2011).
On the other hand, partnerships which may require deeper collaboration in performing
quality management and logistics management are not so widely present but are two important
activities which, if planned and managed in a collaborative way, could lead to tighter
integration among the supply chain members. Finally, partnership types which require the
deepest integration among the parties, with the aim of cultural alignment were noticed only
in the three cases. As argued by Sambasivan and Yen (2010) this shall be the ultimate vision
of collaborative supply chain, where the highest value may be created by establishing a
common vision and values of the supply chain members, which may act as a single firm.
If you have some partnerships with suppliers, in which Supply Chain activities?
Response type: Multiple choice
Ranking Count Activity of the SCM
1 8 Partner sourcing
1 8 Integration of operations
1 8 Information and knowledge exchange
4 6 Quality management
5 4 Logistics management
6 3 Cultural alignment Out of Total 19
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Overall, it is relevant to note that a prerequisite for achieving successful supply chain
integration is the presence of collaborative management of all the activities mentioned
above, while the respondents had on average two out of total six factors present. For
comparison, within the case study research conducted in the Netherlands (Papadonikolaki
et al., 2016), at least four were present.
Perceived barriers for partnerships
After having an overview of the partnership nature of the supply chain members, it is
relevant to understand why they are of a certain type previously identified and what could
be the reasons blocking deeper integration among the actors for successful value co-
creation. Table 12 tries to demonstrate this.
Table 12. Barriers for supply chain partnerships
In general, the barriers have received scores in the range from low-medium (2/5) to medium
(3/5). The strongest barrier perceived is that related to the complexity of integrating processes,
with an overall mean of 3.2 out of maximum 5, while for the other three the scores are
somewhat lower and opinions are aligned, as indicated by lower standard deviation. The
finding regarding the ranking of lack of trust as the lowest barrier is encouraging, which may
indicate that the companies are willing to collaborate but are not so confident in how to
arrive there from the process integration side.
Perceived barriers for BIM adoption overall
As anticipated before, another barrier which shall be taken into account is the technology
adoption one. Overall, when looking at the difficulties which could arise from BIM
implementation (regardless of the supply chain network), almost 80% of the companies
agree on the problematic of inadequate skills (Table 13 below). Therefore, when speaking of
If you do not have partnerships in place, what are the strengths of the barriers?
Response type: 1 - very low importance to 5 - very high importance Ranking Barriers Mean Max Min ST.DEV
1 Complexity of integrating processes 3,211 5 1 1,357
2 Short-term project orientation 2,684 5 1 1,157
3 Fear of transparency and appropriate risk allocation 2,579 5 1 1,216
4 Lack of trust 2,526 5 1 1,073
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technologically related barriers, highest one perceived concern the people (and their skills)
who should actually drive the BIM inside and outside organization, where new BIM
proficient roles would be needed, such as that of a BIM Manager (Khalfan et al., 2015) acting
as a central figure. This constraint is followed by the topic of technological interoperability,
both inside and outside company’s boundaries (with suppliers/subcontractors).
Table 13. Perceived constraints for BIM implementation
Perceived feasibility of BIM-based SCM for Contractors and Suppliers/Subcontractors
Finally, in order to complete the perception of barriers by practitioners, they were asked to
grade the feasibility of establishing BIM-based SCM, from four different perspectives
(Organizational, Technological, Economic and Social). It was required to indicate the
feasibility separately for contractors and suppliers/subcontractors to gain insight whether
there are some differences in constraints which these two types of supply chain members
may face. In general, average feasibility perceived is not so encouraging, slightly above
medium feasibility (higher than 3), both for the contractors and suppliers /subcontractors.
Within the Tables 14 and 15 below, average feasibility perceived is presented according to
the whole sample (33 in total), only contractors (11 in total) and solely contractors from
Europe (7 in total). Ranking of the feasibilities from different perspectives (from highest to
lowest) is shown from contractors’ perspective since their perception is considered as the
most relevant one, as they could be the ones to initiate the cooperation enabled by BIM
(Papadonikolaki et al., 2016).
Which problems can arise when implementing BIM overall?
Response type: Multiple choice
Ranking Count Barriers
1 26 Inadequate skills
2 23 Interoperability with suppliers/sub-contractors
3 17 Interoperability with existing ICT systems
4 15 Inadequate organizational structure
4 15 Complexity of usage Out of Total 33
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Overall, the lowest feasibility for both types of the supply chain actors is the economic one
(3/5), followed by the technological, while the organizational and social ones seem quite more
feasible for the companies.
In your opinion, how much is BIM-based SCM feasible for the Contractors from various perspectives?
Response type: 1 - very low feasibility to 5 - very high feasibility Mean
Ranking by Contractors Perspective All
Contractors European
Contractors Whole sample
1 Organizational - Clear roles and responsibilities 3,727 3,571 3,548
2 Social - Openness for information transparency and risk allocation 3,455 3,143 3,226
3 Technological - Appropriate software infrastructure for collaboration 3,182 3,429 3,323
4 Economic - Sufficient financial resources 3,182 2,857 3,161
Table 14. Perceived BIM-based SCM feasibility for the Contractors
Since the sample is quite low (33 responses in total), there are no significant differences
found in the perception of solely contractors for themselves and other supply chain actors
(standard deviation is not so high). However, European contractors perceive lower economic
feasibility compared to the whole sample and all the contractors included in the sample
(Table 14 above). This may be related to the structure of the construction market in Europe,
with almost 95% of micro-enterprises and small and medium-sized enterprises (SMEs) 5,
thus arises the feeling of high hardware and software set up costs needed for achieving full
interoperability among the supply chain actors. This finding may be coupled with the
perception of technological feasibility, which is equally low as well and is related to software
infrastructures for collaboration and data exchange. However, this should not be perceived
as such a strong barrier due to the existence of IFCs and open-file formats. Finally, social and
organizational feasibility have received the highest scores, which may indicate for another
time that contractors may be quite open for transparent practices and could structure their
organization in such way to manage the supply chain with BIM.
5 https://ec.europa.eu/growth/sectors/construction_en
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In your opinion, how much is BIM-based SCM feasible for the Subcontractors / Suppliers from various perspectives?
Response type: 1 - very low feasibility to 5 - very high feasibility Mean
Ranking by Contractors Perspective All
Contractors European
Contractors Whole sample
1 Social - Openness for information transparency and risk allocation 3,636 3,571 3,419
2 Organizational - Clear roles and responsibilities 3,455 3,429 3,387
3 Technological - Appropriate software infrastructure for collaboration 3,091 2,714 3,097
3 Economic - Sufficient financial resources 3,091 2,857 3,097
Table 15. Perceived BIM-based SCM feasibility for the Subcontractors/Suppliers
Comparing to the results obtained concerning contractors, subcontractors’ feasibility from
social perspective is quite higher and perceived as the strongest one. This could signal that
the suppliers are quite ready to collaborate but are still waiting for contractors to take the
move. However, their readiness, in terms of establishing technological solutions for
collaboration and having sufficient financial resources to do so, may not be so high and is a
bit lower than those for main contractors.
Furthermore, respondents were also asked about the potential ways of incentivizing the
suppliers/subcontractors for establishing BIM-based SCM as well as their perception about
the future development of SCM practices with BIM (Tables 16 and 17).
If Suppliers’ readiness is not so high for establishing BIM-based SCM, how should Contractor incentivize them?
Response type: Multiple choice
Ranking Count Response 1 21 Training 2 9 Seminars
3 8 Short-term project benefits sharing
3 8 Long-term partnerships Out of Total 33
Table 16. How to incentivize suppliers for BIM-based SCM
Common perception is that the suppliers could be incentivized for BIM-based collaborative
practices with trainings, which could be appropriate concerning the perception of very low
technological feasibility. On the other hand, less than 30% of the companies have chosen
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long-term partnerships as appropriate incentive, but it is quite positive that almost all of
them are the Contractors, which should be the ones initiating the integration and BIM
adoption along the chain.
How do you see the future development of Construction Supply Chain Management with BIM? Response type: Multiple choice
Ranking Count Response 1 19 Increased Supply Chain integration 2 15 Usage of barcodes/QR codes
3 14 More frequent prefabrication practices
4 12 Increased diffusion due to the regulation 5 10 Control of logistics 6 8 Usage of blockchain 7 2 Don't know
Out of Total 33
Table 17. Future development of SCM with BIM
Finally, it was important to gather the perception of actors about the future trends which
may be shaping the development of SCM with BIM (Table 17 above). Positive feedback
received is related to the expectations about increased supply chain integration and usage of
complementary technologies for supply chain tracking with the support of barcodes and QR
codes. However, since also in this case, only around 30% of the companies expect BIM-
enabled control of logistics, they are probably not aware about the potential since the case
studies mentioned in Section 4.1 clearly indicated the feasibility of such practices. However,
another reason may be related to the tighter integration and collaboration required for
planning and managing the logistics collaboratively, but since integration is expected this
shall not be the case, rather the question of not knowing how to reach that potential.
Summing up the perception of barriers
Overall, practitioners are aware of most of the core potentials which BIM-based SCM could
offer (control of processes and improved information exchange), but probably are not sure
how to arrive there, since they perceive that inside their companies they do not have people
with adequate skills to drive BIM nor sufficient financial resources, while outside
company’s boundaries they have difficulties of integrating the processes with other supply
chain members (mostly from technological perspective and concerning interoperability
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needed for efficient exchange of files). On the other hand, it is quite positive that the
respondents are open to partnerships, since they envision tighter supply chain integration
in the future and long-term partnerships, which is a core prerequisite for arriving to fully
BIM-ed supply chain. However, the most relevant insight is that related to the social factor
and openness for information transparency, where the feasibility for conducting transparent
SCM enabled by BIM is somewhat higher for the suppliers than for contractors, while the
contactors shall be the ones to lead their partners and take a role of the integrator
(Papadonikolaki et al., 2016). Finally, a brief representation of the barriers perceived can be
seen in the Figure 28 below.
Figure 28. Overview of barriers perceived for BIM-based SCM
After having a comprehensive understanding of the barriers and their causes, next section
will try to tackle those by providing a guideline on overcoming them and unlocking the
powerful collaborative potential of BIM-based supply chain.
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4.3 How could a Contractor set up a BIM-based Supply Chain?
As literature and the findings from survey have demonstrated, BIM is able to harmonize
some of the practices along the construction supply chain, but in order to fully diffuse its
power, well-functioning supply chain shall be present. For this reason, observation of
current relationships and barriers for collaboration among the supply chain members has
been done in the previous section. Technological enablers such as BIM cloud solutions can
lead towards the integration of information in the fragmented construction supply chains,
but the supply chain must be ready. Therefore, the first question which pops out is, who
should be responsible for making the supply chain ready? Opinions found in the academic
literature mostly point at main contractors (Volk et al., 2014; Papadonikolaki et al., 2016;
Ghaffarianhoseini et al., 2017), as supply chain members who are usually early BIM
adopters, thus being responsible for BIM adoption dissemination and setting BIM-related
requirements to suppliers and subcontractors. Therefore, if considering main contractors as
quite BIM proficient (compared to the actors upstream), they shall be the ones to initiate
integration of the supply chain and support the development of BIM capabilities of their
partners. This shall also be in the interest of main contractors, to prepare their future
collaborators since the project success and Client satisfaction (downstream) is highly
dependent on the successful management of the supply chain and its members (upstream),
which supply main contractor with building components and/or services. In that sense,
following discussion will present the potential ways in which main contractors could
overcome the four types of barriers together with their suppliers and subcontractors.
Overcoming the barriers
§ Social – Attitudes towards collaboration, information transparency and risk
allocation
Even if the results from survey have demonstrated the highest feasibility concerning the
social factor and openness for information transparency, this barrier shall be carefully
approached. As O’Brien et al. (2009) note, it is in the nature of construction sector to shift
risks from downstream part (protecting the Clients) towards the actors upstream of the
supply chain – from main contractors to subcontractors and suppliers. Indeed, this way of
working can quite diminish the motivation for collaboration and partnerships among
supply chain members. However, since the survey results have shown that contractors and
suppliers are quite open for partnerships, this could be a good starting point.
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There is one point which was quite stressed by two Serbian interviewees. Namely, they have
both noted that real transparent ways of working may not be easily achieved in the countries
where the corruption is possible and quite common, especially within the construction
sector. However, they do see the potential of bypassing this obstacle, mostly by closely
collaborating with known suppliers/subcontractors, where the previous project experience
was positive for all parties. In this way, if relationship is based on trust, parties can be open
for accepting the advice of their known partners (e.g. knowing well the top management)
and experimenting together to increase competitiveness on the market. Another option
which the Serbian BIM Manager has mentioned is related to the usage of Integrated Project
Delivery (IPD), in order to align the interest of the parties and motivate them to closely
cooperate for mutual benefits. Thus, both long-term and short-term partnerships may be a
solid base for initiating transparent supply chain practices. However, main decision driver
is considered to be the motivation for being transparent, and in the cases of trusted partners
it is quite clear and could provide stability and continuous improvement to the supply
chain, while in the case of IPD benefits achieved are more of a single project-based nature.
When the members realize the value of collaboration and knowledge sharing for mutual
interest, they may be open to experiment with methodologies as BIM. But they must be
aware of the potential which may be achieved and have appropriate motives for
implementing new transparent ways of working. In that case, cultural barriers may be
overcome if contractors decide to pilot BIM project with the trusting partners and design
the potential BIM solutions with them. As anticipated before, supply chain must be ready
to enter in BIM-related ways of working, where openness for information sharing plays a
key role for extracting full potential of BIM. This information shall be shared even outside
the project context, or by including all the partners in the early phases so to design solutions
which could suit to everyone’s needs.
As reported by Skanska6, by not having manufacturer as a partner before starting BIM-
enabled material tracking process on the site, obstacles related to willingness to share all the
information on components’ status have occurred. Namely, at the beginning of BIM and QR
codes application, manufacturers did not feel comfortable in sharing real time information
on components status via the cloud. Manufacturers felt that Skanska wanted to gain more
6 https://www.autodesk.com/autodesk-university/class/Supply-Chain-Management-BIM-360-2018#video
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insight about their operations in order to judge their performance and conduct claim
management with proofs which may be tracked in the BIM environment. However, a lot of
effort and time has been invested by Skanska to convince the supplier in benefits which may
be achieved. At the end, manufacturer got convinced after experiencing the improvements
in material tracking and collaborative quality control. Only after a successful project
delivery with extraordinary results (only 3/1.468 prefabricated pieces of non-conforming
quality) the trust between the two parties has been established, as well as enthusiasm for
further exploration of BIM potential.
Thus, main takeover from the case study noted and interviews is related to the importance
of early involvement of the suppliers and subcontractors into the BIM environment.
Moreover, not only involvement is relevant but the engagement which shall facilitate
openness for information transparency. Thus, this barrier may be overcome through long-
term partnerships or IPD, since these strengthen the motives for tight cooperation.
However, since the choice of IPD cannot be directly impacted by contractors but rather by
Clients as a procurement strategy, partnerships shall be preferred solution for guaranteeing
trusting environment.
§ Organizational – Complexity of integrating processes & defining responsibilities
As anticipated before, contractor’s organization shall be ready to engage supply chain
members upstream and drive the BIM, since contractors could be the ones to initiate the
diffusion along the supply chain. Thus, BIM oriented culture within the contractor’s
organization is absolutely necessary, an organization which is curious to see the
improvements and grasp the opportunities of the four blocks previously mentioned. It is
interesting to note that all of the interviewees have stressed the need of enthusiastic and
BIM savvy people who will be eager to test the opportunities of BIM (e.g. at least during an
internship). In the case of the contractor, Italian BIM Manager emphasized the relevance of
the Research & Development team, as well as BIM Development team, which always have
the eyes outside the organization to catch the opportunities, test them and pilot if considered
promising. Therefore, it is also the culture of continuous improvement. However,
subcontractors (e.g. MEP, façade) should also have BIM proficient people who will drive
BIM within their organizations. Having one BIM Manager as a leader (e.g. that of main
contractor) and one BIM specialist for each subcontractor discipline is needed to guarantee
the smooth BIM workflow. Furthermore, requirement for this workflow is clear definition
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of roles and responsibilities of each party, which is actually the job of the BIM Manager,
acting as a coordinator from general contractors’ organization and defining the BIM
Execution Plan. Moreover, when adding 4th and 5th dimensions, BIM responsible for 4D and
5D must be assigned as well, notes Italian BIM Manager. In order to clearly define duties of
the parties, Responsibility Assignment Matrix (e.g. RACI: Responsible, Accountable,
Consulted, Informed), which is commonly used in project management practices, may
support BIM workflows as well. For example, research by Getuli et al. (2016) has defined
BIM-related responsibilities in terms of supply chain members’ accessibility given to certain
action connected with BIM model (e.g. permission to view, add information, edit) within
the environment of Autodesk BIM 360.
Furthermore, interaction among supply chain members shall be regulated as well, with
clearly defined BIM-related standards, workflows and protocols (e.g. British Construction
Industry Council one) for managing interdependent activities, included in the contracts. All
the interviewees have agreed on the role of the codification as the core link among all the
information which is shared within CDE among the parties and 3D building information
models. Codes are the ultimate language unambiguously linking the elements with all their
associated information: geometrical ones, specifications and time-schedule, as well as
language for communication with the suppliers and subcontractors (e.g. purchase orders
and material tracking). In that sense, Italian BIM Manager stresses the relevance of
establishing common standards among the supply chain parties and encourages the usage
of Singapore BIM Guide (issued by Singapore Building and Construction Authority) due to
its simplicity as well as PAS 1192 (issued by The British Standards Institution) for
information management.
However, the first international BIM-related standard ISO 19650 (Organization and
digitization of information about buildings and civil engineering works, including building
information modelling (BIM) – Information management using building information modelling)
launched in 2018 may play a crucial role for allowing planning and management of smooth
collaborative processes along the supply chain by providing information management
framework. Like ISO 9001 for quality management, ISO 19650 shall become a universal
language for digital information management.
Finally, it is worth mentioning the example of Skanska and another issue faced during initial
implementation of BIM 360 Field with unknown suppliers for the management of precast
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concrete elements flows. Namely, due to the difference in components’ codification
practices among parties, it was difficult to integrate quality control process in real time via
cloud. However, throughout the project execution, the solution was aligned to suit needs
and workflows of both parties, since speaking the same language was crucial for achieving
smooth information and material flows from supplier’s factory to the construction site. As
project manager of Skanska has noted, crucial success element would be:
“Speak and listen to everyone’s struggles and understand them to find a common solution.”
- Skanska, Autodesk University 7
Overall, BIM related standards and protocols (e.g. British CIC) should be able to regulate
the interdependent activities among the supply chain members, however processes must be
planned in advance. If desire is to achieve just-in-time material deliveries, efforts of
contractors and suppliers are needed. They shall be both open for compromise when
introducing new BIM tools which will impact their ways of working. However, by using
same information management standards and having a clear BIM Execution Plan, with a
definition of roles and responsibilities of the supply chain members, smooth workflows may
be achieved.
§ Technological – Appropriate and linked software infrastructure for collaboration
There is one interesting characteristic related to adoption of BIM as a technological
innovation for SCM and it is the phenomenon of network effect. The logic behind is very
simple – the more agents use it, the benefits when implementing it rise accordingly, or as
Shapiro and Varian (1999) stress: “The value of connecting to a network depends on the number
of other people already connected to it.” In that sense, the more supply chain actors collaborate
within BIM environment and contribute with their piece of information, the more value may
be created. The same observation is valid for the management of the supply chain activities
enabled by BIM. True information sharing can only be accomplished with both upstream
and downstream BIM diffusion (Benton and McHenry, 2010). However, this is possible in
the case of exchanging interoperable data, which can be achieved through the usage of IFC
or BCF files, which all of the interviewees have confirmed as currently in use and
functioning. In addition to these, usage of Application Program Interfaces (APIs) for
connecting manufacturers and their BIM-capable factories may be done to allow them
7 https://www.autodesk.com/autodesk-university/class/Supply-Chain-Management-BIM-360-2018#video
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visualizing components status monitoring in 4D (e.g. usage of color-coded elements in the
models according to their progress on site).
Indeed, using a software from the same vendor (e.g. Autodesk which offers numerous
software solutions for multiple stages of the project and different needs of the supply chain
actors) would be a first best solution for tackling the question of software interoperability,
but quite far from reality. Thus, if actors are not able to use the software from the same
vendor and data losses may occur (in terms of losing parametric characteristics, not just for
visualization purpose), technological constraint may still have a big impact on diffusion of
BIM across the whole supply chain. For that reason, contractors should initiate workshops
and knowledge exchange sessions with suppliers and subcontractors, in order to
understand their workflows and technology needs, with the aim of co-creating a solution
which would be suitable for all parties. It is relevant for main contractors to be informed
regarding the software packages used by subcontractors and suppliers in current practices
and identify whether there are some common solutions suitable for them. Thus, the earlier
the supply chain members get together and try to find BIM-based solutions for integrating
their interdependent activities, the better. Main contractors should act as quickly as possible
while they can support those suppliers with a lack of digital competences (Wang et al., 2017).
On the other hand, there could be some BIM advanced manufacturers as mentioned by BIM
Coordinator and Italian BIM Manager, thus they could also contribute to solution
development. By doing so, contractors may impact the decisions of lower tiers in terms of
software infrastructure choices for BIM data exchange before the market becomes too
diverse in terms of technological solutions.
If BIM-based solutions are not present in the lower tiers, one of the practices used (example
from Italian BIM Manager) is hiring the 3rd party (in terms of software consultancy house)
to integrate all the non-compatible BIM formats. However, if the shop drawings provided
by suppliers and subcontractors stay in 2D, they may be blocking “live” characteristic of
BIM and prevent realizing full value of flexibility and timeliness realization through real
time changes and updates within federated information models. Keeping 2D may seem to
block the full potential of BIM but can be used in the transition phase during the first BIM
project, as noted by Italian BIM Manager. Namely, when the Italian contractor has piloted
the BIM project, traditional 2D driven workflows were followed in parallel with the newly
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established BIM-enabled one. This was done with the aim of comparing the two workflows
and measuring improvements.
Furthermore, all the interviewees have stressed the importance of having cloud enabled
CDE which connects all the supply chain members in one digital ecosystem, especially the
teams on site and those in office for timely communication. Example of such proven cloud
solution is Autodesk BIM 360 Field, which offers components’ information in the form of:
code, location, status, install date, purchase date (Getuli et al., 2016). This cloud-based
workflow allows transparent material tracking directly via cloud, by scanning the
components code in certain milestones even with a mobile device and updating components
status. By doing so, pull-based lean methodology may be achieved, by informing all the
supply chain members in the moment when certain information is produced, thus
triggering further timely actions (e.g. material production and deliveries). This is also
enabled by unambiguous visualization in 4D environment, where each building component
has its unique code and color-coded status (Getuli et al., 2016). Furthermore, Italian BIM
Manager mentions another smart solution provided by iTWO 8 in the form of cloud-based
5D BIM enterprise solution, enabling demand-driven production for the suppliers, by
visualizing the status of building components enabled by connecting procurement and real-
time schedule on site.
However, one interesting topic raised by Serbian BIM Manager is related to the technology
readiness level concerning real time connections via cloud which could be considered as the
main enabler for the shared information models visualization and updates from
multidisciplinary sources. It may be more convenient to wait for 5g network to mature and
fasten the real-time information exchange process, since CDE platforms may be overloaded
and slow if shared among the whole supply chain, thus frustrating the users. On the other
hand, Serbian CEO stresses yet another advancement of the manufacturing sector which
does not wait 5g to diffuse but rather develops local 5g networks within their factories to
enable continuous communication and information exchange among smart machinery.
Thus, waiting for others to take action just results in losing the potential competitive
advantage and opportunity to pilot projects and gain knowledge before others in the market
do.
8 https://www.itwo.com/en/5d-bim-enterprise-platform-itwo-4-0/
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Overall, main takeover is related to the need to gather the supply chain members and choose
the most suitable cloud and object-based solution offered by BIM, where the interoperability
will be tackled beforehand, in order to smooth the implementation process and neutralize
interoperability issues when BIM pilot project kicks out.
§ Economic – Lack of financial resources for investing into BIM solutions
Finally, not having sufficient financial resources shall not be perceived as a critical constraint
even for the SMEs, since the cost for BIM-related software packages could be somewhat
similar to that of CAD systems (Bryde et al., 2013) and due to the presence of network effects
explained before. However, perception is that labeling financial inability as a constraint for
any technology adoption is a common issue of enterprises and is tightly coupled with short
term orientation on the problem, since the benefits which could arise in the long run can
outweigh the costs of setting up and maintaining software solutions for collaboration.
Indeed, this is a common opinion and it is considered reasonable, but to one contractor or
subcontractor it sounds quite intangible and may not help in pursuing the investment.
Difficulty arises in providing exact quantification of cost savings which may be achieved by
implementing BIM solutions. As Serbian BIM Manager notes, during the introductory
presentations for the top management of the construction companies seeking to implement
BIM solutions, topic of economic feasibility is one of the first on the list. Their BIM solution
development team does mention the potential of around 10% project costs savings with BIM
solutions implementation and stresses the amount of wasteful activities as a result of
traditional fragmented and 2D-based approach to projects execution. However, these 10%
may vary according to the complexity of the project as well as be a direct consequence of
supply chain BIM capability and overall team performance. Thus, it would be more tangible
and reasonable to speak about benefits realization and demonstrate those with proven case
studies in terms of optimization of inventory management up and downstream, reduction
of RFIs and improved communication, reduction of production lead times (both on and off
site). In that way, motivation for investing may be impacted, by having satisfied supply chain
team and Clients.
Thus, this consideration on economic feasibility should be valid for all, even for SMEs.
Actors should just be aware of the potential which may be reached and the best way to make
them believe so is to show them. Here, main contractors shall step in and lead the process.
In the case of Skanska, this is exactly was has been done, by sharing the short-term project
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benefits with subcontractors just to demonstrate the opportunities of real-time connection
and components installation status tracking which may be achieved with BIM 360 Field
(Autodesk)9. Skanska even provided supply chain members with portable devices (tablets)
connected to the cloud environment. By doing so, team on site was able to exchange the
data regarding prefabricated components ‘status with manufacturers by simply scanning
the component code and attaching the notes of the components’ conditions on cloud (e.g.
damaged or complying with quality standards).
As mentioned before, even in the case when subcontractors are not BIM proficient, a third
party may be hired to generate BIM-compatible documents. However, like Italian BIM
Manager has noted, suppliers and subcontractors will be paid less since they cannot
contribute fully with all the necessary information in a timely manner. Here the motivation
for investing plays a key role in adoption. For example, the motivation for building
components suppliers is clear when offering digital catalogs in BDOs form, due to the
marketing exposure. By doing so, fastening the design process for the architects (BIM
Coordinator gives an example of Velux and digital windows) and providing them with
smart digital product which contain all the additional information may be achieved.
However, in the case of subcontractors and less BIM proficient suppliers, contractors should
play an important role in helping them to build BIM capabilities, while clearly
demonstrating to the lower tiers benefits when piloting the projects, learning together and
feeling the improvements.
9 https://www.autodesk.com/autodesk-university/class/Supply-Chain-Management-BIM-360-2018#video
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4.4 Putting it all together
Since cooperation and collaborative efforts of multidisciplinary supply chain members were
present as crucial elements for overcoming each of the barriers in previous section, this shall
be considered as the starting point for action. Perception is that general contractors shall be
ready to initiate integration and incentivize other parties to do so due to his bargaining
power and ability to influence lower tiers by posing requirements for collaboration (e.g.
using BIM as selection criteria). However, this shall not be done in an aggressive way, but
rather by forming a trusting environment based on partnerships. Contractors cannot and
shall not be alone in this process, since efforts and inputs from the upstream part of the
chain are crucial in order to establish integrated and responsive supply chain supported
with BIM.
Even though the survey respondents have identified technological and economic barriers as
the strongest ones for establishing BIM-based supply chain solutions, these may be
overcome with collaboration and knowledge sharing among supply chain members, after
clearly aligning the motives for doing so. Thus, resolving the social constraint is a priority.
In that sense, before grasping opportunities related to BIM-enabled supply chain
information and material management (4D visualization coupled with components status
monitoring with RFID tags and GIS or solely with QR codes linking the components from
the model to their real flows towards the construction site), all supply chain members must
be on board for this way of working. More specifically, they shall be ready to re-design their
processes from sequential to collaborative (e.g. material procurement, quality control or
logistics), or at least make a compromise for the common realization of the value along the
supply chain. However, this transition takes time and contractors should focus on
developing BIM capabilities of their suppliers and subcontractors (Wang et al., 2019). Thus,
this change shall be initiated with the trusting subcontractors and suppliers, those with
whom main contractor already had positive experience in project execution or has good
relationships with the top management.
Figure 29 below tries to explain the core concept of guideline in the following discussion,
and is related to the need of integrating following dimensions:
§ People (supply chain members: main contractor, subcontractors and suppliers);
§ The interdependent processes which those members follow throughout the project
execution (planning and management of supply chain activities: procurement of
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materials, off-site production of building components, transportation and logistics
and on-site assembly of components) and only after
§ Technology (BIM related cloud solutions for real time information and material
tracking through components codes specifications and status updates).
The first step for main contractors is really to set up a well-functioning supply chain, in a
trusted environment, by closely collaborating with contractors and suppliers, as well as
integrating their processes by considering the needs of all parties upstream of the chain.
However, since survey has shown that supply chain members find this difficult and quite
complex, it shall be done in a partnering and trusting environment before any BIM pilot
project. This means that the members are aware that supply chain activities they execute on
a project base are highly interdependent and require efforts both from upstream and
downstream actors (presented with the link between members and activities in Figure 29)
which are needed to input the data for smooth collaboration. Only when the supply chain
is ready and eager to test the opportunities of BIM, technological element may be added to
reach that potential. By including BIM into the system, real time tracking of information and
material flows is facilitated, which are represented as the links between supply chain
members and activities respectively. What is relevant to be stressed is that BIM also plays a
role of the regulator of interdependent activities. Namely, its implementation requires clear
BIM Execution Plan, containing usage of information management standards (e.g. ISO
19650), definition of roles and responsibilities of the supply chain members regarding
information deliveries, as well as design of BIM workflows for achieving smooth
collaboration practices.
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Figure 29. Guideline for setting up BIM-based SCM
In this way, BIM and supply chain are reinforcing each other. While the supply chain shall
be stable and formed in a trusting environment (based on principles of partnerships for
tighter integration) in order to grasp the full value of BIM, BIM can be used as a mean for
regulating and tracking the information and material flows among the actors in a
standardized code-based and transparent form. By doing so, each supply chain member is
enriching the building components with their piece of information and in the moment of
those information creation throughout the well-defined and regulated collaboration
processes enabled by BIM. Indeed, by pursuing such practices, value-added in terms of rich
building information models may be handed over to the Clients (besides the physical assets)
in the form of digital twins as a final result of successful collaboration. This way of working
may shift the competition in the construction sector from price based to value based, as a
result of supply chain management supported with BIM methodology. Furthermore, this
strategy may allow SMEs to gain competitive advantage over the big industry players.
Thus, contractor shall have partners eager for long term collaboration and invest a lot of
effort in raising the importance of cooperation, with top management involvement and
tailored trainings in order to guarantee the commitment and align the cultures of
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organizations (such as done by Mace Business School10 and Skanska Supply Chain School11).
Partners should closely work together on integrating processes of quality control and
logistics management, supported with unambiguous language of communication (common
BIM-related standards for codification, protocols and workflows).
On the other hand, if contractors choose to set BIM as a selection criterion and continue to
build their BIM-related skills without including suppliers and manufacturers, only few of
the lower tier players may survive if being innovative. This approach may demonstrate
benefits in raising awareness of the lower tier regarding the importance of BIM proficient
skills and solutions within their enterprises, since industry is going towards BIM and
laggards may start losing numerous business opportunities. Namely, as Italian BIM
Manager noted, in the case when subcontractors are not BIM proficient, they are usually
paid less on the expense of the 3rd party needed to generate BIM compatible documents
from 2D drawings. However, within this approach, smooth integration of process is not
enabled per se, since the parties do not know each other nor trusting environment is present,
even in the case of selecting BIM proficient suppliers.
It is also interesting to mention that contractual forms such as Integrated Project Delivery
could suit quite well for BIM-based SCM practices (Succar, 2009). This is made clear after
looking at the definition of IPD below:
“Integrated Project Delivery (IPD) is a project delivery approach that integrates people, systems,
business structures, and practices into a process that collaboratively harnesses the talents and
insights of all participants to reduce waste and optimise efficiency through all phases of design,
fabrication, and construction.”
- IPD Definition Task Group, 2007
It seems that by definition, agreements among supply chain parties as those in form of IPD
would suit perfectly as a solution for BIM-based supply chain management. The main
reason why this contractual form would suit well is the existence of clear motives for such
tight collaboration, since the reward scheme is directly related to the project success, and
risks are equally shared among the parties. By conducting such practices, actors do not have
the right nor interest to shift the risk to other parties, since they are focused on value co-
10 https://foresite.macegroup.com 11 https://www.supplychainschool.co.uk/partners/skanska/
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creation with the aim of grasping higher profits. The better they perform together, the
higher the reward. And it is that simple. However, as anticipated, IPDs would be triggered
by the choice of Client’s procurement strategy, thus cannot be directly initiated by
contractors.
Finally, the most suitable strategy would be to pilot BIM learning project with chosen
partners. Since a prerequisite for this option is existence of tight and well-established
relationships between main contractors, their subcontractors and suppliers, supply chain
will be ready to grasp the opportunities offered by BIM and strengthen their relationship
cohesion with this learning experience. Lastly, it would be recommended to conduct pilot
projects with long lead and large components, mainly concerning ETO configurations (e.g.
prefabricated concrete elements, steel frames or façade) as proven with the case studies,
where tight integration among the members is needed. The crucial point here is Learn by
doing. Moreover, not only to learn but to feel the improvements which will highly affect the
future adoption process for enterprises.
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5 Discussion and Conclusion
This chapter briefly answers to the research questions, presents limitation of the study and
recommendations for future research.
5.1 Summing up
Overall research framework in form of research questions and structure of respective
answers is shown in the Figure 30 below, while the following discussion will briefly present
the answers and main findings. Main logic followed was to firstly inspect practical
applications which BIM can offer for supply chain management purpose, followed by
barriers which could be faced by contractors and suppliers when thinking to implement
such solutions. Understanding of these barriers was relevant in order to provide guidelines
for successful application of BIM into network of supply chain actors, their interdependent
processes which determine the success of the complex construction projects.
Figure 30. Overall research framework
RQ.1 Which are the opportunities and trends of BIM-based Supply Chain?
Opportunities which BIM can offer to support management of construction supply chain
are able to cover the whole material flow process, starting from generation of 3D
information models containing BIM digital objects connected with all the additional
information (their size, shape, location, specifications, enriched with installation schedule
and real time status), their procurement from that model, off-site fabrication, transportation
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to the site and assembly on a planned facility’s position by their schedule. In this way, by
means of BIM, BDOs are able to trigger just-in-time flow of materials to the construction site
when they are needed according to their installation schedule and real progress on site. This
is made possible by unambiguous 4D visualization and CDE connecting all the supply chain
actors (those off and on site), where they can transparently collaborate, input their piece of
information and stay updated by other supply chain members actions. At the end, the
building components “flow back” to the digital environment from the real one, into a “digital
twin”, which is the ultimate value-added for the Client. BIM-enabled applications per
supply chain area are summarized in the Table 18 below.
Area of the supply chain Potential applications of BIM
Building materials/components
Procurement
§ Export of accurate material quantities coupled with
specifications from object-based BIM model; § Creation of bills of materials (BoMs) and purchase of
materials directly through BIM cloud tools; § Specification of codes for identification, coherent with
manufacturer (e.g. RFID tags, Barcodes/QR codes); § Complete 4D-enabled construction schedule for material
ordering; § Integration of up-to date BIM data with ERP.
Building
materials/components Off-site Production
§ Usage of BIM Digital Objects, coordination and update from real-time exchanged BIM model;
§ Specification of codes for components identification (e.g. RFID tags, Barcodes/QR codes);
§ Error free fabrication via BIM and CNC machines; § Establishment of pull production flow.
Transportation and Logistics
§ Site workspace and layout management; § Modelling of equipment movement and positioning; § Schedule coordination for Just in Time delivery; § Real-time location tracking of materials (e.g. with RFID
tags, Barcodes/QR codes); § On-site inventory optimization.
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Table 18. Opportunities offered by BIM for supply chain management
According to McKinsey Global Institute (2017), these collaborative ways of working
(enabled by management of the supply chain and supported with technological means as
BIM) are able to boost productivity in the sector up to 20% and move away negative
perception about the construction sector’s progress stagnation. The core value of BIM here
is keeping the supply chain actors informed by allowing them communication within CDE,
where BDOs are coded in a unique way. In this way, enhanced information management in
a digital form alows timely material tracking in a physical world.
Thus, author has interpreted BIM-bas SCM as following:
“Collaboration and cooperation for achieving just-in-time management and tracking of
interdependent construction supply chain activities with the aim of value co-creation and
means of transparent BIM-based technological environment.”
However, the second research question has been set with the aim of understanding the
potential barriers for establishing such transparent practices along the supply chain.
RQ.2 Which are the common barriers for establishing BIM-based Supply Chain?
After discovering the opportunities enabled by BIM, it was of crucial importance to
understand the barriers perceived by supply chain members and their potential resistance
which could arise when implementing BIM solutions for total supply chain collaboration.
However, barriers are multilayered. Firstly, there are barriers related to technology
adoption solely within company’s borders (intra-organizational ones). Secondly, when
speaking about supply chains, relationships between actors shall be taken into account to
better understand their openness for information sharing and collaboration. This may be
considered as a requirement for implementing transparent BIM practices, as well as
collaborative management of the processes on inter-organizational level. Barriers perceived
by practitioners and their strengths are presented in the Figure 31 below.
Construction / On-site assembly
§ Improved coordination of specialist contractors on site;
§ Code and cloud-based components quality control (e.g.
Barcodes/QR codes, RFID tags);
§ Real-time installation status monitoring and uploading;
§ Scan to BIM and generation of the digital twin.
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Figure 31. Overview of barriers perceived for BIM-based SCM
Even tough economic and technological barriers are perceived as the strongest ones for
initiating BIM-based SCM practices, it is positive to note the social one is somewhat lower.
This may signal that practitioners may be quite open for collaboration but are not quite sure
how to achieve those practices with lack of financial resources and choices of software
infrastructures for process integration along the chain. It is interesting to stress that
economic constraints are even stronger in the context of European construction market,
composed of almost 95% of SMEs. Due to these reasons, a third research question was set
with the aim of providing potential guidelines for overcoming the barriers identified and
grasping the potential of BIM identified while answering to the first research question.
RQ. 3 How could a Contractor set up a BIM-based Supply Chain?
Due to the nature of BIM-based supply chain, which may be considered as socio-
technological concept, it was interesting to spot the reinforcement between the topic of
supply chain management and BIM. Thus, the main takeover of this research is related to
this interdependence between the two, which can be seen in the Figure 32.
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Figure 32. BIM-based SCM implementation guideline
Namely, this interdependence is relevant to be understood for BIM-based SCM
implementation. First step is related to integration of supply chain members, their activities
and processes, in order to provide a stable and trusting environment for future technological
applications. By conducting partnering practices, supply chain members are aware that
supply chain activities they execute on a project base are highly interdependent and require
efforts both from upstream and downstream actors (presented with the link between
members and activities in Figure 32) which are needed to input the data for smooth
collaboration. Only when the supply chain is built in a trusting environment and eager to
test the opportunities of BIM, technological element may be added to reach that potential.
By including BIM into the system, real time tracking of information and material flows is
facilitated, which are represented as the links between supply chain members and activities
respectively. In this sense, BIM can be used as a digital mean for regulating and tracking the
information and material flows among the actors in a structured and code-based cloud
environment, where interoperability among the parties is assured with the usage of IFC
data formats. Another contribution of BIM to supply chain management is related to its
regulatory power of actors’ responsibilities and execution of interdependent activities.
Namely, establishment of BIM requires clear BIM Execution Plan, containing usage of
information management standards (e.g. ISO 19650), definition of roles and responsibilities
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Marijana Zora Kuzmanović 118
of the supply chain members regarding information deliveries, as well as design of BIM
workflows for achieving smooth collaboration practices (with the support of BIM protocols).
By following this sequence of actions, barriers may be overcome with collaborative efforts,
mainly due to the presence of trust among the parties, encouraging them to find common
solutions suitable for achieving benefits.
By doing so, each supply chain member is enriching the building components with their
piece of information and in the moment of those information creation throughout the well-
defined and regulated collaboration processes enabled by BIM. Indeed, by pursuing such
practices, value-added in terms of rich building information models may be handed over to
the Clients besides the physical assets, in the form of digital twins as a final result of
successful collaboration. This way of working may shift the competition in the construction
sector from price based to value based, as a result of supply chain management supported
with BIM methodology.
Thus, main contractors, as initiators of such practices and integrators of the supply chain
shall call their partners for action, both suppliers and subcontractors, and start to closely
work on integrating their processes such as quality control and logistics management,
supported with unambiguous language of communication (common BIM-related standards
for codification and information management, protocols and workflows).
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5.2 Limitations of the study
One of the main limitations of the study is related to the small number of interviews
conducted and lack of case study approach, which are considered as methodologies for high
quality data gathering. Even though the author was trying to fill this gap with the case
studies published in academic articles, BIM-related books and those from Autodesk
University, there was no access to the deeper exploration of the interdependence between
supply chain management and BIM. Another limitation is related to the generalization of
the concept and lack of detail, since no specific material flow has been chosen, while the
focus was mostly given to the Engineered-To-Order building components (e.g.
prefabricated concrete elements and steel frames).
5.3 Recommendations for future research
One of the perspectives which is missing within this research is related to financial flows,
deeper exploration related to integration of BIM and ERP solutions and impact of BIM-
based SCM on project cash flows. Furthermore, since the economic barrier is still perceived
as critical by practitioners (especially concerning European SMEs), potential supply chain
finance solutions shall be explored for financing BIM-ed supply chain. Namely, there could
be financing advantages which may arise when looking at the financial profile and
performance of the whole supply chain, not solely the enterprise one.
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