With the deadline for all public sector construction projects to be implemented to BIM (Building Information Management) level 2 fast approaching, many contractors are still coming to terms with the sea of change that BIM will bring to the sector. For many, the cultural change of adopting a transparent, collaborative approach with delivery partners is daunting enough…but the cost of investing in BIM software seems insurmountable.
At the moment, the construction sector is suffering from a capital investment Catch 22: investment in costly BIM software may put the company ahead of the game but will take cash flow out of the business at a time when the sector is only just rising up from the ashes of recession. Meanwhile, failure to invest in BIM software could leave your company behind, not only in the context of the competitive market but also in terms of bidding for BIM-based tenders.
The result of all this is an industry-wide game of chicken. Everyone knows they have to spend money on BIM software sooner or later but they’re all waiting to see when others will take the plunge before they’re willing to jump too.
Of course, there is another way to approach this (in business there is always an alternative approach!). Instead of seeing BIM as an onerous obligation to invest in software, construction companies should be seeing it as an ideal opportunity to steal a march on the competition. The trick is to reduce the financial implications by using refinancing rather than utilising cash flow to purchase the software.
Often refinancing is mistakenly associated with ‘pawning’ assets like plant, vehicles and equipment when a business finds itself in dire financial straits. While it can be used in this way, it’s actually a much more sophisticated financial tool than that, enabling businesses to invest in preparing the company for growth.
Purchasing BIM software is just one of the ways in which refinancing could help your business without reducing your cash flow or relinquishing use of any assets. Why not visit www.praeturaaf.co.uk to find out more?