McKinsey predicts 38% Cost Savings by using Digital Construction

Begin 2017 McKinsey published an eye-opening report. If construction would digitize, it will save costs by 38%. In North America alone, that equates to a yearly savings of half a Trillion dollars.

Construction next to farming remains the least digitized industry.  The report shows that production levels in the building industry have actually dropped in the USA. We know of Projects in the 70’s in Florida when houses were completed in 28 days, which in today’s construction is unimaginable.  Internationally the price of construction per sq ft in the USA is one of the highest. The McKinsey report indicates how the use of BIM, Design-Build methods, Pre-fabrication techniques and Digital Construction will lower cost of construction substantially.

Civil Digital Construction shows substantial Cost Saving

Changes in Digital Construction started in Europe and have gotten a firm hold in China. In Civil Projects since the introduction of Digital Construction, the prices have dropped substantially.  the same is expected in commercial Residential Construction.

Using BIM for all levels of Construction

The use of BIM is starting to become common practice. Unfortunately, the BIMs of the Architect are not always able to communicate with the BIMs of the Contractor. Often the BIMs don’t go further than a nice looking 3-D visualization, and all the work winds up done traditionally with takeoffs from printed plans. In Digital Construction BIM is used to automate estimation, so the estimator can focus on value engineering the project from the start. Furthermore in Digital Construction BIMs are used to organize pre-fabrication, transportation of pre-constructed building elements and laser aided verification of the project under construction.

Design Build

The McKinsey report singles out the Design-Build method as major cost saving as it brings the entire design and construction team on the same platform. The traditional Design/Bid/Build method results often in controversial situations between the team players, which shows in a number of lawsuits brought forth. The Design-Build method lawsuits account for only 3% of the total construction lawsuits.


VERTKAAL delivers as a Design-Build consultant the tools to the Team enabling implementation of Digital Construction and its Cost Savings. Additionally, the Pre-Designed building components accelerate the design phase. The BIMs that accompany the building components are geared to fully implement Digital Construction.


The reports published by McKinsey give great insight about the arrival of the digital age in the construction industry. they can be found here:


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