The implications of BIM for construction professionals and insurers

What is BIM?

BIM, or Building Information Modelling, has no globally accepted definition. In the UK it is broadly accepted as being the “digital representation of physical and functional characteristics of a facility creating a shared knowledge resource for information about it” (Keith Snook, former RIBA Director of Research).

BIM is promoted as a risk mitigation tool, bringing many advantages for those involved in a construction project; improved knowledge and access to better information about the design, better management of design risk, easier coordination of different design and construction elements.

BIM is generally described by its level of maturity:

• Level 0 simply comprised 2D drawings – usually shared in hard copy format.
• BIM Level 2 involves holding project data, potentially including information about cost or programming, in (discrete and separate) BIM databases.
• BIM Level 3 involves holding data, including costs, programming and lifecycle facility management information, on a fully integrated, web-based system which can be accessed by all construction team members.

Increased focus on BIM in the UK

So far, government policy has mostly driven BIM in the UK, but it has also been gaining traction in the private sector. The indications are that the use of BIM Level 2 will significantly further expand over the coming years and that BIM Level 3 will be introduced and used more widely in future.

In June 2019, Digital Built Britain (formerly known as the BIM Task Group), sought funding to develop a programme to leverage the investments made in BIM and move towards Level 3. In the same month, following the recommendations put forward in last year’s Hackitt Review of Building and Fire Safety, the UK Government issued its proposals aiming to bring the Hackitt recommendations to life; it appears that the Government is keen to mandate the use of BIM in high-rise building. The majority of standard form construction contracts have been amended in the last couple of years to account for BIM, and new BIM protocols and ISOs have been issued, with more to be released in 2020.

Professional indemnity implications of BIM

The professional indemnity implications of BIM depend on whether a project is being coordinated using BIM Level 2 or 3.

Insurers have said that there are no particular risk issues for construction professionals when using BIM Level 2, and do not actively exclude BIM Level 2 from coverage; all those involved in the project under a traditional contractual structure should still have clear lines of responsibility.

BIM Level 3 will, however, be a different matter. Significant changes to existing contract structures and terms may be needed. Each project participant will have online access to a single project model and will be able to make changes to the model’s content during the project’s lifecycle. Clearly, this could blur lines of responsibility. Participants will need full traceability, and access may need to be carefully monitored and possibly restricted for some. If using BIM throughout the project’s entire life cycle, potentially meaning up to decommissioning and demolition, liability could also extend long after completion of a build. There are also inherent technical and cyber security risks. Such wider liability questions raise important legal issues which will require very careful contract drafting to address and mitigate some of the risks.

BIM Level 3 in the UK is still in its infancy, so there is no concrete evidence as to how its adoption will affect the UK construction and insurance markets. Insurability will be a key factor in deciding the viability of BIM Level 3, and those in the construction industry are carefully considering the best approach along with their insurers. Potentially, the industry could move towards more partnering or alliance contracts, and/or products like a single project insurance policy, rather than traditional individual annual policies. If that is the case, then there may well need to be more capacity in the market for this type of cover; not least, some insurers view single project policies as inherently risky, given the extended period of cover (typically up to 10 years or more). The debate is ongoing.

We considered some of these issues at our “Insuring the Future” event on 26 September 2019. If you would like to hear more, please contact Maria Moutafi.

Other articles from the "Technology in Construction" series

• Technology in Construction: the use of 3D printing
• Technology in Construction: Drones