Cost Analysis of Inadequate Interoperability in the U.S. Capital Facilities Industry.
Cost Analysis of Inadequate Interoperability in the U.S.
Capital Facilities Industry.
Gallaher, M. P.; O'Connor, A. C.; Dettbarn, J. L., Jr.;
Gilday, L. T.
NIST GCR 04-867; 194 p. August 2004.
Sponsor:National Institute of Standards and Technology,
cost analysis; industries; economics; building
economics; costs; building design; interoperability
costs; life-cycle cost analysis; capital facilities;
electronic building design
Interoperability problems in the capital facilities
industry stem from the highly fragmented nature of the
industry, the industry's continued paperbased business
practices, a lack of standardization, and inconsistent
technology adoption among stakeholders. The objective of
this study is to identify and estimate the efficiency
losses in the U.S. capital facilities industry resulting
from inadequate interoperability. This study includes
design, engineering, facilities management and business
processes software systems, and redundant paper records
management across all facility life-cycle phases. Based
on interviews and survey responses, $15.8 billion in
annual interoperability costs were quantified for the
capital facilities industry in 2002. Of these costs,
two-thirds are borne by owners and operators, which
incur most of these costs during ongoing facility
operation and maintenance (O&M). In addition to the
costs quantified, respondents indicated that there are
additional significant inefficiency and lost opportunity
costs associated with interoperability problems that
were beyond the scope of our analysis. Thus, the $15.8
billion cost estimate developed in this study is likely
to be a conservative figure.