New process management without risking millions in Northern Denmark
The digital tenders for large-scale projects place new demands on project and risk management. Those will be solved, among other things, with new software based on the 3D models. That will allow more accurate calculation and control of the costs in the construction process. In Aalborg, they are successfully doing so.
In Northern Jutland is a “small” project on the way. The construction of the new university hospital for 0.6 billion euros has begun. Projects of this size have many uncertainties about time, finances, work processes, and materials. That’s why you’re trying out new software for risk analysis. It will help you determine if the quantities and materials are right, and what the consequences of a delay elsewhere in the process are for your work scheduling.
“This is the first time that we apply the method in the context of digital tendering. The budget for the first part of the project, which will finance the floors and columns from the lower floor to the tenth floor of the helipad, is over half a billion Danish kroner. The expectations are consequently great. It should be ensured that the solidity and robustness of the project is in order”, explains Niels Uhrfeldt, project manager in the Region of Northern Jutland.
A risk analysis minimizes the risk of future cost increases
“The new procedure makes it possible to minimize the risk of future cost increases. There are many elements that can increase the cost along the way. But, if you notice errors already in the design phase, and not only during the execution, you can save a considerable amount of money. That is a completely new form of external control if the builder ensures the constructability and consistency of the tender documents before the tender. It works really well and you do not have to raise extra money for the project once it’s running. It is an affordability that the builder can perform this independent control”, says Niels Uhrenfeldt, adding that this is a quality assurance of the digital model.
- Firm: New University Hospital Aalborg
- Web: https://www.nau.rn.dk/
- Project sum: 550 Mio. Euro
- Size: ca. 170.000 m2
- Construction period: 2013 – 2020
- Source: www.borsen.dk
„The method is a requirement for our schedule.”
– Niels Uhrenfeldt, Project Leader, New University Hospital Aalborg
Avoid delays with an early-stage risk analysis
A project of this magnitude should not run very badly because it costs a lot of money if the schedule shifts. According to Niels Uhrenfeldt, in such a large project there is no financial leeway for a shifting schedule as a result of which the different stages of the project can not be met.
“The BIM method is a prerequisite for our schedule. But it is also important in terms of risk management in the project phase, where we need to avoid that different contractors interrupt each other in their job responsibilities. Therefore, the whole building is subdivided into smaller sections. Computer software then manages the time, finances and staff on the ground. When something moves, it has consequences elsewhere and you can always follow it in the software day by day”, he says.
The ability to link knowledge makes it possible to get an overview of the project. But, of course, it costs a bit to use it. “However, the costs pay off quickly”, says Niels Uhrenfeldt. “With large projects, it can quickly cost millions of euros as the schedule shifts. So the cost of using this method quickly becomes savings. It will probably also be a matter, of course, to use it in many other places in relation to BEP (BIM Execution Plan) regulations. Moreover, more and more public constructions require the use of BIM. We already expect to use it for future construction projects around the university here in the city. The process was also the subject of a PhD project at Aalborg University, and it is wonderful to be able to use local methods”, he concludes.
Read more about Exigo’s consulting in risk management and financial management.
More examples of construction projects using Exigo’s intelligent Dashboards can be found in our references!
