Software Difficulties Cost Builders Billions

Software Difficulties Cost Builders Billions

Inadequate software interoperability in the capital facilities industry cost the commercial, institutional and industrial building sectors $15.8 billion in 2002 in lost efficiency, according to a newly released study commissioned by the National Institute of Standards and Technology (NIST).

Conducted by RTI International (Research Triangle Park, N.C.) and the Logistics Management Institute (McLean, Va.), the report places a price tag on avoidance, mitigation and delay activities due to data-exchange problems. It also takes into account the cost of redundant paper management.

The analysis, expected to benefit key stakeholders throughout the construction industry, breaks down data exchange-related losses for architects and engineers, general contractors, specialty fabricators and suppliers, and owners and operators at three different stages of a building’s life: (1) design and engineering; (2) construction; and (3) operations and maintenance.

The publication, Cost Analysis of Inadequate Interoperability in the U.S. Capital Facilities Industry (NIST GCR 04-867), also identifies barriers and opportunities for improvement. Electronic copies are available at www.bfrl.nist.gov/oae/oae.html.

Media Contact: John Blair, (301) 975-4261