11th International Conference on Cutting-Edge Developments in Engineering

Technology and Science

Optimizing construction cost management with

BIM technology and Neural Network Models
Tejpal* Divyashree
Department of Civil Engineering Department Civil Engineering
Lingaya’s Vidyapeeth, Faridabad, India Lingaya’s Vidyapeeth, Faridabad, India
Email: tejpaltanwer13@gmail.com Email: divyashree@lingayasvidyapeeth.edu.in

Abstract— The development of construction projects plays Research indicates that the application of Building
a crucial role in the socio-economic growth of a nation. Information Modeling (BIM) technology in construction
Effective price management within these projects is vital and pricing can considerably enhance the efficiency of resource
has become a key element for major construction firms in utilization, curtail waste, and streamline operations. BIM
China to administer their operations. Currently, the state of also facilitates rapid and effective communication among
internal price management within construction is neither stakeholders and lays a solid foundation for project execution
optimal nor ideal. Budget overruns are rare, primarily due to at all stages, thereby improving the speed and accuracy of
the lack of proficient price management strategies, the absence cost estimations.
of cutting-edge technology, and inadequate forecasting
methods, which hinder the alignment of actual outcomes with This paper delves into the engineering cost estimation model
expected results in managing construction project costs. These and develops a comprehensive neural network prediction
discrepancies often lead to disappointing outcomes. This paper model aimed at refining the precision and technological
explores an engineering cost estimation model and develops a application of these predictions. By harnessing BIM
comprehensive prediction model using neural networks to technology's capabilities in price management and its
enhance the precision and technological applicability of application in the construction industry, firms can achieve
forecasts. Through the integration of Building Information significant benefits, thereby driving enterprise growth and
Modeling (BIM) technology and neural network models, and
development.
leveraging the cost benefits of Information and
Communication Technology (ICT), the construction industry II. LITERATURE REVIEW
can achieve stringent cost control, thereby generating
significant profits for businesses and fostering corporate As highlighted in previous research [8]-[14], the inherent
growth. complexity of projects is a major contributor to the
Keywords— BIM Technology, Neural Network Models inaccuracies in cost estimation. Industries that are project-
based often encounter substantial difficulties in cost control
I. INTRODUCTION and adhering to project budgets. Thus, understanding the
The construction sector plays a pivotal role in the socio- complexities in cost estimation and identifying best practices
economic advancement of our country, significantly for improving accuracy are crucial. Research findings
impacting social progress and bolstering economic growth indicate that factors like project risk, scale, deliverables, and
through its direct influence and its interactions with other timelines introduce complexities in cost estimates and need
industries. As multinational corporations enter our further scrutiny to mitigate unexpected cost implications.
construction market, competition intensifies, compelling According to document [15]-[18], comprehensive analysis
domestic construction firms to implement comprehensive has identified project design, scientific engineering
price management strategies throughout the construction management, and post-completion reviews as critical
process [1]-[6]. Effective price management in construction elements of cost control.
projects is crucial for enhancing the market competitiveness Literature [19] outlines that variables influencing project
of Chinese companies and profoundly influences their costs include bidding processes, design specifications,
development. construction methods, market conditions, and environmental
Currently, internal price management within the construction factors. Effective cost management from the design phase is
sector is suboptimal, with instances of budget overruns being emphasized as a fundamental strategy for overall cost
infrequent. This situation primarily stems from shortcomings containment. Research [20]-[22] delves into the composition
in effective price management, a deficiency in cutting-edge of project costs, noting that construction expenses are
technology, and a lack of foresight in forecasting, resulting in paramount and also the most volatile, impacted by factors
discrepancies between actual and anticipated outcomes in such as design, construction practices, and contractual
construction project pricing [7]. The construction agreements. Document [23] discusses the pivotal role of the
information model, embodying the integration of high-level design phase in cost control, stating that it significantly
information technology and digitalization, aids significantly influences subsequent stages, with 30% to 80% of
in the initial design, ongoing management, and final construction costs being determined during this phase.
settlements of projects, providing a robust platform for Literature [24] points out that major software firms like
information sharing and swift communication among project Autodesk, Bently, and Graphisoft have developed and
participants. widely distributed various BIM software, which is
continually evolving with upgrades and modifications. This

978-93-340-4772-1 ©ICCDETS24 https://doi.org/10.62919/sdfg8911

advancement has fostered basic technology development, illustrating the interrelationships within the 3D spatial
data sharing, and standardization within the industry. components.
According to document [25]-[26], technological innovation
in construction primarily stems from significant industry Interconnectivity: Components within the BIM model are
shifts, advocating for the use of dual-purpose technologies to interdependent; changes in one part affect others.
enhance operational efficiencies in engineering firms. Consistency: BIM data are uniform across the project and
Literature [27] introduces a method based on the IFC synchronized through computerized analysis at all stages.
management model to aid project stakeholders in crafting Table 1: BIM Function and applications
construction plans, using digital technology to simulate
scenarios and minimize system-user interaction. Document Project Stage Functions and Applications
[28] examines data from 55 completed projects to construct a Investment Decision- - Programme Selection
multisource neural network model, enhancing empirical Making
predictions of project costs. Document [29] presents a Planning & Design - Budget Estimates
systematic analysis of the methodological foundations of BP - Limit Design
neural networks for project cost estimation, emphasizing the Bidding - Precise List
accuracy and speed of this approach. Finally, document [30]-
- Unbalanced Quotation
[31] uses a model based on 13 detailed technical studies for
estimating bridge construction costs, comparing multiple Construction Phase - Cost Analysis
linear regression and neural network analyses to determine - Human, Material, Machine
the most accurate estimation models. Analysis
- Quota Collection
III. BIM TECHNOLOGY CHARACTERISTICS - Change Management
- Payment Management
Completion Phase - Settlement
A. Essence of BIM Technology
From a technical standpoint, BIM (Building Information
Modeling) technology is founded on computerized three- B. BIM Technology in Cost Management
dimensional digital capabilities that represent construction Accumulation of Building Data
entities completely and provide precise information and data
on construction projects. As a transformative modeling tool Building data accumulation is vital for price consultancy
in construction engineering, its robust data storage and firms and represents a core aspect of effective construction
processing capabilities catalyze significant changes across engineering management. Despite its importance, reliance on
engineering projects. These advancements foster industry experienced engineers for data gathering and cost analysis is
modernization, addressing shortcomings inherent in common, and high staff turnover rates can jeopardize data
traditional engineering construction cost methods, which integrity. The integration of Internet+ technologies by
extend beyond budgeting and settlements to encompass all governmental initiatives provides new opportunities for
project phases and system components. This leads to new overcoming traditional challenges like vast information
forms of communication and collaboration among quantities and complex data analysis, thus enhancing data
stakeholders. The BIM model serves as a comprehensive accumulation and analysis capabilities. This integration
framework for the entire project lifecycle, encapsulating facilitates real-time information exchange among
data, processes, and resources, and is accessible to all project participants, ensuring timely updates and preventing delays
participants for efficient management and execution. that could impact access to critical project information.

Fig. 1: Schematic Diagram of BIM Technology Fig. 2: BIM Software Schematic

Key characteristics of the BIM model include:
Integrity: The BIM model houses complete information Implementation of Comprehensive Cost Management
regarding project design, construction, and maintenance,

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BIM facilitates thorough cost management throughout the newcomers, not only boost employee motivation but also
project lifecycle. Utilizing BIM data, project estimations are elevate the technical proficiency of new staff, thereby
derived considering factors like unit costs and project enhancing the company's capabilities in dynamic cost
quantity indices. This method provides more detailed budget management and nurturing a pool of skilled professionals.
forecasts compared to traditional approaches, offering
precise information for construction plans and enabling B. Comprehensive Dynamic Cost Management and
comprehensive work lists that prevent calculation errors Control
during the bidding process.
BIM-Based Engineering Calculations Dynamic cost management in construction requires
meticulous attention to all phases of a project. This involves
BIM technology streamlines the preparation of project
an integrated approach to managing and controlling costs at
budgets through accurate workload calculations, reducing the
every stage—from policy development to project
influence of manual errors in engineering quantity estimates
and enabling more reliable statistical analyses. The precision completion. During the decision-making phase, senior
in calculating bid prices positively impacts the efficiency and management must conduct thorough analyses to determine
accuracy of construction bidding, laying the foundation for the necessity of construction projects, engage in scientific
effective project consultations and subsequent construction planning, and develop accurate construction estimates and
phases. budgets. This ensures the project progresses smoothly while
maintaining quality and cost-effectiveness. In the design
This integration of BIM technology not only optimizes phase, designers are tasked with conducting detailed
design and measurement processes but also enhances the engineering assessments that consider applicable standards
overall feasibility and accuracy of construction projects, and the project's specific needs to minimize costs
enabling better planning and execution of engineering tasks.
effectively. The construction phase is pivotal for dynamic
cost management; it requires the collection and timely
analysis of all cost-related data to maintain a reliable
database for ongoing financial oversight. The project's
completion phase, which includes quality audits and
financial settlements, involves comparing and reviewing all
costs and expenditures against construction contracts to
verify settlement data's accuracy and ensure robust dynamic
cost management.

Fig. 3: Flowchart of Cost Management

IV. COST PREDICTION MODEL Fig. 4: Quota Design Process

A. Advanced Training for Cost Managers C. Leveraging Information Technology in Cost

Management
The competency of cost managers is critical for effective
dynamic building cost management, significantly The application of information technology is essential in the
influencing the accuracy and thoroughness of financial engineering pricing process, where large volumes of data
oversight. Dynamic management of building costs entails need to be managed accurately. Effective use of information
considerable effort and necessitates hands-on involvement technology supports dynamic control, offering automation
in actual pricing activities. It is essential for professionals to benefits and enhancing data management innovation. It
move away from outdated pricing management concepts allows departments to efficiently coordinate various work
and embrace advanced dynamic control techniques to types and personnel, significantly reducing the workload on
adeptly handle and master cost management. Construction construction teams. Building Information Modeling (BIM)
companies should enhance their training programs and technology plays a crucial role from the decision-making to
organize expert panels to deliberate on competitive bidding the initial stages of construction, enabling precise
strategies and pricing tactics. Practical training simulations of material use and labor involved, and
opportunities, such as pairing experienced workers with providing a dependable data source for the entire

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construction process. Additionally, advanced predictive
technologies offer early warning capabilities that are crucial
for minimizing construction risks, reducing costs, and
promoting effective dynamic cost control throughout the
project lifecycle. option for sustainable infrastructure development.

Acknowledgment
The work written is entirely original, acknowledge all
sources of data and appropriately represent the work or
words of others in citations or quotations
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