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http://dx.doi.org/10.6106/JCEPM.2013.3.1.001
Abstract: Construction is a competitive industry and successful contractors must be able to win bids to obtain projects. Cash flow
analysis not only determines actual profit at the end of the project, but also estimates required cash resources or cash ballances at
the end of every month. Cash flow analysis is important in managing a construction project; however, it requires extensive
information that is not immediately available to the general contractor. Before contractors can perform cash flow analysis, they
must first complete a series of pre-requisites such as the quantity take off, scheduling, and cost estimating, followed by accurate
assessments of project costs incurred and billable progress made. Consequently, cash flow analysis is currently a lengthy, uncertain
process. This paper suggests improved cash flow analysis can be developed using data extraction in Building Information
Modeling (BIM). BIM models contain a wealth of information and tools have been developed to automate a series of process such
as quantity takeoff, scheduling, and estimating. This paper describes a prototype tool to support BIM-based, automated cash flow
analysis
Keywords: Building Information Modeling, cash flow analysis, ifcXML, planning
I. INTRODUCTION
Assistant Professor, Engineering Technology and Construction Management, The University of North Carolina at Charlotte, 9201 University City
Blvd., Charlotte, NC 28223; PH (704) 687-5095; FAX (704) 687-6577; email: h.kim@uncc.edu (*Corresponding Author)
2
Principal Investigator, Principal Investigator, USA Corps of Engineers, Engineering Research and Development Center, PH (217) 373-6723; (FAX)
217-373-6724; email: Francois.Grobler@usace.army.mil
Preparing a Construction Cash flow analysis Using Building Information Modeling (BIM) Technology
Create Schedule
Within Desired
Completion
Date?
BID Project
FIGURE I
CASH FLOW PROCESS DIAGRAM
Increase Productivity
B. Quantity Takeoff
The data arrays contain all the necessary quantity and
material information that is later used for the scheduling
and estimating processes. The program stores these data
arrays internally. In other words, the user cannot readily
view these arrays. The user can, however, create an
output file to manually check the quantity takeoff. The
prototype creates a simple text file as an output. This file,
however, can be imported into excel with semicolons as
the delimiting character to signify a new cell. The
spreadsheet created by the prototype includes material
information such as layer names, material names, layer
thickness, area, and volume. For doors and windows it
also includes operation type. Table 1 shows a portion of
the quantity takeoff spreadsheet generated from the text
output file. Within the BIM model, building elements
such as slabs, windows, doors and windows are assigned
unique names. Generally these names are generic and
numbered (i.e. Wall 1, Wall 2, Etc). The names for these
elements were included in the spreadsheet, which allows
you to find that particular building element in the 3D
software and visualize its location within the structure.
FIGURE II
THREE-DIMENSIONAL MODEL USED FOR CASE STUDY
Preparing a Construction Cash flow analysis Using Building Information Modeling (BIM) Technology
FIGURE III
IFCXML TREE
Name
TABLE I
QUANTITY TAKEOFF
Layer
Material Name
Thickness
Perimeter
(inches)
Width(in)
Area
(sqFt)
Volme(CF)
3966.666643
5950
5950
SLABS
Slab-02
Slab-01
Slab-02
WALLS
Wall-01
Wall-02
Wall-03
Wall-04
Wall-05
Wall-06
Wall-07
Wall-08
Wall-09
Wall-10
Slab-04 on gravel_1
212 + 3/4 Plywood_1
212 + 3/4 Plywood_1
03Concrete Random
06 Plywood-1/8 ply
06 Plywood-1/8 ply
3.999999952
0.75
0.75
4560
4560
4560
7.999999952
12
12
5950
5950
5950
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
09 Gypsum- Board
0.49999
0.49999
0.49999
0.49999
0.49999
0.49999
0.49999
0.49999
0.49999
0.49999
4.49999
4.49999
4.49999
4.49999
4.49999
4.49999
4.49999
4.49999
4.49999
4.49999
120
120
120
120
120
120
120
120
120
120
250
300
350
500
200
400
500
600
100
600
DOORS
Name
2
3
Height(in)
80
84
Width(in)
36
72
Panel Depth(in)
1.251968504
Operation Type
single_swing_right
double_door_single_swing
WINDOWS
Name
21
5
9
8
11
10
14
13
17
16
15
20
19
18
7
Height(in)
60
60
60
60
60
60
60
60
60
60
60
60
60
60
60
Width(in)
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
118.5
Panel Depth(in)
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
Operation Type
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
single_ panel
4
Vol.3, No.1 (Special Issue) / Mar 2013
ID
03 11 1365 3050
03 30 5340 4650
03 24 10 0600
06 11 1040 6140
06 11 1018 2740
06 16 23 0200
07 22 16 0030
08 11 16 0020
08 11 16 0300
Description
Edge forms, wood, 4 use,
on grade, up to 6 high
CIP SOG 3500 psi, not
incl finish, 4 thick
SOG #3-#7
Crew
TABLE II
RS MEANS LINE ITEMS
Daily
Labor
Unit
Output
Hours
Mat
erial
Labor
Equipment
Total
Total
inc.O&P
C-1
600
0.053
LF
0.27
21
2.37
3.54
C-14E
60.75
1.449
CY
117
59.5
0.51
177
222
4
Rodm
2.3
13.91
Ton
760
650
1410
1875
2 Carp
0.92
17.39
Mbf
375
725
1100
1525
2 Carp
2 Carp
1.75
1250
9.143
0.013
Mbf
SF
530
0.58
380
0.53
910
1.11
1175
1.46
1 Rofd
800
0.1
SF
0.64
0.35
0.77
1.05
2Sswk
ea
745
375
1120
1475
2Sswk
1.3
12.31
ea
1075
575
1650
2200
C. Estimating
Once the all the quantities are gathered, the next step is
to estimate their costs. In order to assign a cost factor to
the quantities, the program must be able to recognize
what the quantities belong to. This is achieved by storing
additional information such as relating building elements
and material type with the quantities. Once the program
knows which quantity to use, it is also important to make
sure that it is in the right units. The preferred units for
each item is determined by the unit values given from the
RS Means book. The prototype is written so that is
automatically converts to the desired units. For example,
the dimensions for concrete slabs are initially in inches or
cubic feet, which are converted into cubic yards (the
5
KICEM Journal of Construction Engineering and Project Management
Preparing a Construction Cash flow analysis Using Building Information Modeling (BIM) Technology
FIGURE IV
GANTT CHART
Prepare Site
Formwork Foundation Slab Phase 1
Construct Foundation Slab Phase 1
Rough Carpentry Phase 1
Install Doors & Windows Phase 1
Roofing Phase 1
Install Insulation Phase 1
Install Gypsum Walls Phase 1
Finish Roof Phase 1
Interior Paint Phase 1
Install Wall and Door Trim Phase 1
Finish and Paint Trim Phase 1
Exterior Paint Phase 1
TABLE III
SEQUENCE TABLE
Duration
ES
EF
5
0
5
2
5
7
14
7
21
10
21
31
3
31
34
4
31
35
3
34
37
10
37
47
3
35
38
7
47
54
1
54
55
2
55
57
6
57
63
LS
0
5
7
21
34
31
34
37
46
47
54
55
65
LF
5
7
21
31
37
35
37
47
49
54
55
57
71
TF
0
0
0
0
0
0
0
0
11
0
0
0
8
FF
0
0
0
0
0
0
0
0
11
0
0
0
8
DF
0
0
0
0
0
0
0
0
0
0
0
0
0
Critical Path
yes
yes
yes
yes
no
yes
yes
yes
no
yes
yes
yes
no
2
14
10
3
4
3
10
3
7
1
2
6
7
21
35
45
45
48
51
49
61
68
69
71
9
35
45
48
49
51
61
52
68
69
71
77
19
21
35
48
45
48
51
74
61
68
69
71
21
35
45
51
49
51
61
77
68
69
71
77
12
0
0
3
3
0
0
25
0
0
0
0
12
0
0
0
0
0
0
25
0
0
0
0
0
0
0
3
3
0
0
0
0
0
0
0
no
yes
yes
no
yes
yes
yes
no
yes
yes
yes
yes
Punchlist
Project Closeout
5
5
77
82
82
87
77
82
82
87
0
0
0
0
0
0
yes
yes
D. Scheduling
Direct Cost
Indirect
Cost(11.47%)
Tatal Cost
Markup 0.05
Total Worth
Client Retainage
Payment Due
Payment
with Delay
Cumulative
Payments
Cash Outflow
Cumulative Worth
Cumulative Outflow
Cumulative Income
Cumulative Interest
Overdraft
Interest 1%
Month 1
23088
Month 2
24934
TABLE IV
CASH FLOW SPREADSHEET
Month 3
Month 4
5939
10920
Month 5
10186
Month 6
Month 7
Summations
120069
2648
2860
5843
1253
1168
13772
25737
1287
27024
2702
24321
27794
1390
29184
2918
26265
56782
2839
59621
5962
53659
12173
609
12782
1278
11503
11354
568
11922
1192
10730
133840
6692
140532
14053
126479
24321
26265
53659
11503
24783
24321
50587
104246
115749
140532
-25737
27024
-25737
0
0
-25737
-257
-27794
56207
-53531
0
-257
-53788
538
-56782
115829
-110313
24321
-795
-86787
-868
-12173
128610
-122486
50587
-1663
-73562
-736
-11354
140532
-133840
104246
-2399
-31993
-320
0
140532
-133840
115749
-2719
-20810
-208
0
140532
-133840
140532
-2927
3765
0
140532
-133840
TABLE IV
SUMMARY OF CASH FLOW EQUATIONS
Indirect Cost
Tatal Cost
Markup
Total Worth
Client Retainage
Payment Due
Payment with Delay
Cumulative Payments
Cash Outflow
Cumulative Worth
Cumulative Outflow
Cumulative Income
Cumulative Interest
Overdraft
Interest 1%
E. Cash Flow
Preparing a Construction Cash flow analysis Using Building Information Modeling (BIM) Technology
Figure V
CASH FLOW CHART
VI. CONCLUSION
The proposed methodology demonstrates that an
automated cash flow analysis is possible based on the
information from a building information model.
Furthermore, the framework of this prototype utilizes
ifcXML, an international industry standard; which creates
interoperability between users and recognized on in
international level. The purpose of this prototype is to
demonstrate that cash flow analysis, which is historically
a difficult and tedious task, can be automated with the
help of BIM technology and ifcXML standards. Further
development can add details to the cash flow automation
program such as applying fuzzy systems theories or
adding the option to apply S-curves rather than linear
curves. The cash flow analysis can also become more
accurate with a more detailed model. This type of model
would have much more information but because of the
standard ifcXML schema, this data would be similarly
machine-readable. The prototype would have to be
expanded to accommodate for this increase in
information, although the methods for retrieving the
additional data would be similar.
This research intends to make aware that current
technology is available and capable of automating the
cash flow process. Further development and research is
warranted for the program to be used on more complex
projects. This includes adding built-in libraries for
scheduling and estimating to account for different types
of construction project, materials, and activities.
As Park et al. [1] pointed out, the accuracy of cash
flow models is dependent on how they manage
unpredictable factors such as time delays, cost overrun,
change orders, etc. This accuracy can be increased during
the construction phase as more information and
conditions are revealed. Because this prototype is
generated from a BIM model, it can only be as accurate
and detailed as the model. Consequently, updated cash
flow analysis reports could be performed at any stage of
the project as long as the BIM model reflects the most
current changes.
A unique value of this prototype is dramatically
automating the time required to generate cash flow
analysis. Traditionally, contractors could spend weeks
performing the quantity takeoff, scheduling, cost
estimating, and cash flow analysis. This prototype offers
a method that can produce a cash flow in minutes.
Architects will often propose multiple designs, each
represented by its own 3D model. With this technology,
contractors would be able to quickly compare cash flow
REFERENCES
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[2]
[3]
C.W. Chen, C.H. Tsai, C.P. Tseng, M.H.L. Wang, P.Y. Chung, A
novel fuzzy regression approach on managing target cash balance
for construction firms, Proceedings of the 17th IASTED
International Conference on Modeling and Simulation, Montreal,
Canada, pp. 224-225, 2002.
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KICEM Journal of Construction Engineering and Project Management