Benefits and Costs of Research: A Case Study of Construction Systems Integration and Automation Technologies in Industrial Facilities.
Benefits and Costs of Research: A Case Study of
Construction Systems Integration and Automation
Technologies in Industrial Facilities.
(718 K)
Chapman, R. E.
NISTIR 6501; 175 p. June 2000.
Available from:
National Technical Information Service
(NTIS), Technology Administration, U.S. Department of
Commerce, Springfield, VA 22161.
Telephone:
1-800-553-6847 or 703-605-6000;
Fax: 703-605-6900.
Website: http://www.ntis.gov
Order number: PB2000-106671
Keywords:
construction; industries; costs; building economics;
delivery time; economic analysis; impact evaluation;
industrial facilities; integration and automation; life
cycle costing; safety
Abstract:
The National Institute of Standards and Technology
(NIST) is improving its resource allocation process by
doing "microstudies" of its research impacts on society.
This report is one of a series of microstudies prepared
by NIST's Building and Fire Research Laboratory (BFRL).
This report focuses on a critical analysis of the
economic impacts of past, ongoing, and planned research
on BFRL's construction systems integration and
automation technologies (CONSiAT) major product. The
CONSiAT major product is an interdisciplinary research
effort within BFRL -- in collaboration with the
Construction Industry Institute, the private sector,
other federal agencies, and other laboratories within
NIST -- to develop key enabling technologies, standard
communication protocols, and advanced measurement
technologies needed to deliver fully-integrated and
automated project process (FIAPP) products and services
to the construction industry. This case study of BFRL's
CONSiAT-related research, development, and deployment
effort illustrates how to apply in practice a series of
standardized methods to evaluate and compare the
economic impacts of alternative research investments. It
is presented in sufficient detail to understand the
basis for the economic impact assessment and to
reproduce the results. It is based on past, ongoing, and
planned research efforts. Thus, it includes
CONSiAT-related investment costs that have already
occurred along with estimates of future investment costs
and cost savings due to the use of FIAPP products and
services. The results of this study demonstrate that
the use of FIAPP products and services will generate
substantial cost savings to industrial facility owners
and managers and to contractors engaged in the
construction of those facilities. The present value of
savings nationwide expected from the use of FIAPP
products and services is in excess of $2.0 billion
(measured in 1997 dollars). Furthermore, because of
BFRL's involvement, FIAPP products and services are
expected to be commercially available in 2005. If BFRL
had not participated in the development of FIAPP
products and services, the commercial introduction of
FIAPP products and services is expected to be delayed
until 2009. Consequently, potential cost savings
accruing to industrial facility owners and managers and
to contractors over the period 2005 through 2008 would
have been foregone. The present value of these cost
savings is approximately $150 million. These cost
savings measure the value of BFRL's contribution for its
CONSiAT-related investment costs of approximately $30.1
million. Stated in present value terms, every public
dollar invested in BFRL's CONSiAT-related research,
development, and deployment effort is expected to
generate $4.95 in cost savings to the public.
Building and Fire Research Laboratory
National Institute of Standards and Technology
Gaithersburg, MD 20899