Articles

How Norway Cut Infrastructure Project Cost Overruns and Delays by Over 50% 

September 10, 2024

Building Information Modeling1 (BIM) adoption in Europe has steadily increased, growing by approximately 10% annually since 2009 [1]. Currently, about 50% of construction projects across Europe utilize BIM, with this trend expected to continue rising (see Figure 1).  
Figure 1: Share of architects using/expecting to use BIM according to USP research [1].

Europe leads globally in BIM advancement, and Norway stands out with the highest BIM penetration rate at 46%, matching the other Nordic countries. Larger European economies like the Netherlands, Belgium, Spain, the UK, and France trail behind, with adoption rates between 10-20% (see Figure 2).

Figure 2: Share of projects where BIM is used by architects based on survey among >30,000 architects across Europe by Architects’ Council of Europe [2].

Norway’s success in BIM adoption is largely driven by the mandates from key public entities such as Statsbygg (Norwegian Directorate of Public Construction and Property) and national infrastructure owners like Statens Vegvesen (Norwegian Public Roads Administration), Nye Veier (New Roads), and Bane NOR (Norwegian Rail Owner). Over the last two decades, Norway has undergone three distinct phases of BIM development, as summarized in Figure 3 and below:

Figure 3: Summary of 3 main phases of BIM development in Norway.

Phase 1: BIM Piloting in the 2000s

Norway’s journey began in 2005 when Statsbygg launched its first successful BIM pilot project, HiTOS. Following this, the first BIM manual, SIMBA, was published in 2007 [3]. This manual not only guided Statsbygg’s projects but also became a reference for other public entities and private sector owners, gradually driving broader BIM adoption. Statens Vegvesen followed in 2010 with its first draft of their BIM manual (“Håndbok 138”).

Phase 2: BIM Standardization in the 2010s

The 2010s saw increased collaboration and standardization efforts, with Statens Vegvesen and Bane NOR joining Statsbygg in setting BIM standards. Statens Vegvesen introduced “V770 Modellgrunnlag” [4], and Bane NOR initiated “Krav til informasjonsmodellering” in 2019 [5]. These standards enabled the first successful model-based projects, leading to significant results:

Bane NOR: Reduced design costs by 19% on the Ringeriksbanen project [6].

Statens Vegvesen: Decreased change orders by an average of >50% across six pilot projects [6].

See Figure 4 for more details.

Figure 4: Main results of model-based project pilots by Bane NOR and Statens Vegvesen [6].

Phase 3: BIM Scaling in the 2020s

In the current decade, BIM is not only mandated for large infrastructure projects but is also required to be fully integrated into model-based processes. See Figure 5 for detailed description of what constitutes a model-based BIM project. Key concepts from ISO 19650, such as the Common Data Environment (CDE) and Project Information Model (PIM), are now standard. Open file formats like IFC are also required. Significant efforts have been made to reduce the use of 2D drawings, not only to improve efficiency but also to minimize errors often caused by outdated drawings on construction sites. For instance, Rogaland Fylkeskommune (Rogaland County Municipality) has achieved a 90% reduction in the use of 2D drawings in its projects.

Figure 5: Key components of model-based BIM project.

Bane NOR has recently advanced its BIM implementation by fully integrating system support, processes, and capabilities for managing PIMs and Asset Information Models (AIM) using the Novorender BIM viewer and platform [7]. This initiative is poised to bring Bane NOR to Level 3 BIM maturity. See Figure 6 for depiction of commonly referenced 4 different levels of BIM maturity.

Figure 6: Commonly referenced levels of BIM maturity defined by Bew and Richards (2008) and adopted in British standard PAS 1192-2 [8].

Results: Substantial Reductions in Cost Overruns and Delays

The impact of BIM adoption in Norway has been profound. Norwegian infrastructure projects have seen dramatic improvements in execution. For instance:

Cost Overruns: Average cost overruns for road projects fell by 50% from ~6% in the 2010s to just ~3% in the 2020s.

Project Delays: The percentage of railroad projects experiencing delays dropped from ~75% in the 2010s to ~33% in the 2020s [9][10][11].

These improvements are even more impressive when compared to international benchmarks, where cost overruns typically range from 10-25% for road projects and delays affect about 60% of rail projects [12].

See Figure 7 for more details.

Figure 7: Summary of improvement on cost overruns for rail projects and share of railroad projects with delays in 2010s vs. 2020s [9][10][11][12].

The Role of BIM in Driving Success

Statens Vegvesen identified construction errors due to insufficient design, poor data quality, and frequent changes as among the primary causes of cost overruns in the 2010s [10]. The shift to BIM and model-based projects has been a critical factor in addressing these issues. While multiple factors have contributed to Norway’s improved project performance, the role of BIM cannot be understated.

Conclusion

Norway’s success in reducing infrastructure project cost overruns and delays demonstrates the tangible benefits of adopting and scaling BIM. The evolution from piloting to standardization and now scaling BIM practices shows a clear path for other countries to follow.

While Norway has made significant strides in implementing BIM, there is still considerable work and untapped potential ahead. The journey includes the full adoption of the ISO 19650 framework and the realization of Level 3 projects, where Project Information Models (PIM) and Asset Information Models (AIM) are seamlessly integrated within a Common Data Environment (CDE) and accessible through a unified viewer. Achieving this “single source of truth” will solidify Norway’s position as a global leader in BIM practices and offer a model for other countries to emulate.

Learn More

Discover how Novorender can help drive BIM adoption and support model-based design and construction in your projects.

Sources:

[1] USP Research (https://www.usp-research.com/insights/news/bim-usage-european-level/)

[2] Survey of 30,000 architect in Europe by Architects’ Council of Europe (https://www.ace-cae.eu/fileadmin/New_Upload/7._Publications/Sector_Study/2018/2018__ACE_Report_EN_FN.pdf)

[3] Building Smart Norway Statsbygg BIM-manual presentation by Frode Mohus (https://arkiv.buildingsmart.no/sites/arkiv.buildingsmart.no/files/05_sb_statsbyggsbim-manual_20130124.pdf)

[4] Statens Vegvesen V770 Modellgrunnlag  hand book (https://vegvesen.brage.unit.no/vegvesen-xmlui/handle/11250/3071942)

[5] Bane NOR information website describing “Krav til informasjonsmodellering” project (https://www.banenor.no/leverandor/krav-og-sikkerhet/regler-og-arbeidsprosesser/bim-og-standardisering-i-jernbaneinfrastruktur/kim-prosjektet-strukturering-og-standardisering-av-informasjonsleveranser-i-utbyggingsprosjekter/)

[6] Bane NOR presentation of model-based projects (https://nff.no/wp-content/uploads/sites/2/2020/04/12-Rekve-Erfaringer-med-modellbasert-planlegging-og-prosjektering.pdf)

[7] Bane NOR press release announcing procurement of Novorender’s 3D viewer and BIM platform (https://www.banenor.no/nyheter-og-aktuelt/nyheter/2024/skal-planlegge-jernbane-i-norsk-3d-modell/)

[8] BIM Technology Maturity Levels defined by Bew and Richards 2008 (https://www.researchgate.net/figure/The-Wedge-Diagram-showing-BIM-Technology-Maturity-Levels_fig4_320172140)

[9] NTNU: Kostnadsoverskridelser og forsinkelser i store statlige prosjekter – en oppdatering (https://ntnuopen.ntnu.no/ntnu-xmlui/bitstream/handle/11250/3126124/Kostnadsoverskridelser%2Bog%2Bforsinkelser%2Bi%2Bstore%2Bstatlige%2Bprosjekter.pdf?sequence=1&isAllowed=y)

[10] Statens Vegvesen presentation of model-based projects (https://www.vegvesen.no/globalassets/fag/veg-og-gate/prosjektering-r700-v770/v770-generell-info.pdf)

[11] Rapport utført av Multiconsult på vegne av NHO (beskrevet her https://www.bygg.no/vei-og-jernbane-kraftig-forsinket/101364!/)

[12] Project delays estimated based on Oxford University’s database of >12,000 infrastructure projects globally. Average cost overruns varies greatly by country, ranges applied.

[13] Interviews and correspondence with representatives of Statens Vegvesen, Bane NOR, and Concept NTNU.

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