The BitcoinCRE conference took place on March 7 in New York. The team had an opportunity to share professional opinions on real estate and crypto-economy.
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U.S. construction-industry is far from perfect. Its productivity is lower today than it was back in 1968, and investments have fallen over the past 10 years. The construction sector productivity has grown at only 1% annually over the past two decades. If nothing changes, the industry will fail to deliver the infrastructure and housing the world needs.
Poor productivity is the main reason of the market decline. Although there are big technological players around the world, construction also has a large number of low-productivity small firms. The procedure of setting up contracts is quite imperfect. It all leads to disputes and endless changes to the project specifications that are nothing but common.
Construction is a very complex process difficult to control. This sector became a profitable area for corrupt authorities, which leads to the growth of renovations and repairs buildings that are not yet put into operation and schedule overrun.
Underinvestment in technology is another root cause of low productivity. There is a direct linkage between the level of digitization in a sector and its productivity growth rate. In the United States, construction is the second-least digitized industry after agriculture.
Innovation can definitely make an important contribution to fundamentally change this situation.
BIM as a tool to digitize the whole construction sector
BIM (Building Information Modeling or informational modeling of a building) has gained a reputation of a trusted tool for doing virtual construction. Today the list of projects using BIM is huge. The Walt Disney Concert Hall in Los Angeles was an early user of BIM and the new Giants stadium in the Meadowlands.
The use of BIM facilitates designing processes at all stages, performing analysis and control of all on-site activities. BIM technology is very detailed about all geometrical features of a building and all its structural elements. Such a complete model makes it possible to see all potential outcomes during construction in advance, assess efficiency rate, compare alternative options in order to focus on the best one and make an accurate schedule of all construction stages.
BIM enables for design and documentation to be done concurrently instead of serially. Schedules, diagrams, drafts, estimating, planning, value engineering and other forms of work are created dynamically while work is progressing.
Besides, the application of BIM technology reduces costs because more work can be done by a smaller team without corrections and renovations. Less time and money are spent in the process and management due to higher document quality and better construction planning.
The platform, based on the BIM technology, was represented at the BitcoinCRE Conference in New York.
BitRent uses BIM solutions to create and collect information about the building under construction at any stage of its existence. This technology allows to reproduce an accurate model on computers and other devices.
BIM is a state-of-the-art building tool capable of reducing costs of each construction project by 20% as well as cutting the completion time by 3 months.
Using BIM, the BitRent platform will achieve the following results:
- 33% lower costs – reduction in the initial cost of construction and the whole life cost of built assets;
- 50% faster delivery – reduction in overall time, from inception to completion, for new-built and refurbished assets;
- 50% lower emissions – reduction in greenhouse gas emissions in the built environment.
Thus, we believe that utilizing BIM within the BitRent platform in the construction sector will inevitably result in higher quality work, greater speed and productivity and lower costs for building professionals.