Cost Effectiveness of Computerization in Design and Construction

The primary purpose of these studies was to examine the efficiency and cost effectiveness of the use of computer aided design, engineering, and construction management, and the challenges that companies faced with its implementation. Despite the studies reported in these documents having been completed in 1989, there were findings made that are still very applicable today, though some of the predictions understandably were inaccurate.

The data for these studies was gathered by the use of surveys, interviews with selected CII firms and software vendors, meetings with the CII Design Task Force subcommittee, and workshops with participants from selected CII firms.

The participants in the studies unanimously agreed that the investment in the implementation of computerized systems was cost effective, though the difficulty of establishing quantitative proof varied with the applications. The use of 2-D CAD systems, analysis software, and project management systems was easily proven to be cost effective, but the use of 3-D CAD systems, linked to a database, was more difficult to evaluate.

The initial computerization of the industry involved implementing 2-D Computer Aided Design systems, Computer Aided Engineering systems for data analysis, and project management and administration systems. The CAD systems made for quick revisions to engineering drawings and simplified reuse of designs. The CAE systems improved accuracy and consistency and saved time. The systems used for project management and administration improved efficiency. All of these changes reduced man hours, which saved time and money, and additionally improved the deliverables.

Engineering companies considered it was worthwhile to implement the “intelligent” 3-D CAD systems, but that the true beneficiaries of the savings that were made were realized by their downstream customers, which are procurement, construction, startup, and the owners. Due to competition between engineering companies, they were not willing to pass costs associated with the implementation to their customers. The result was competitive bids, which resulted in more jobs, with the added benefit to their customers of more accurate, complete data. Again, this made these types of systems desirable to the engineering companies.

To summarize, although this research was conducted in the late 1980s, the industry then was poised on the brink of a major change in how engineering information was developed and managed. The advancements in hardware and software since then have been phenomenal, yet many of the challenges faced at that time with implementing design technology in a cost effective way are still valid today.

CAD/CAE in the Construction Industry is part of a group of research conducted by CII in the over-arching area of Design published in 1984-1989.