More and more modern complex construction projects are coming nowadays and they need well planning on the probable cost outcomes before the construction starts for ensuring the smooth functioning of the project.

Lifecycle cost analysis is an evaluation technique in which the total expenditure of owning, operating a building throughout its lifetime is calculated. This total cost includes initial property cost, building construction cost, cost for operating, maintaining and renovation work and finally disposal cost over a period of time. Proper cost analysis is necessary for the long term cost effectiveness of a building and construction firms needs an accurate life cycle cost analysis method to reduce cost and thereby make profit.

BIM plays a significant role in assisting the optimization of life cycle cost of a building project. BIM is not just a software that delivers the 3d model of the construction project. It has significant role in the proper and effective functioning of all fields in the construction process. Use of BIM technology reduces the time, energy and money required for the completion of a project. As BIM provides the 3D visualization of alternative designs prior to actual construction through prototyping design solutions, the firm can identify the coordination issues and do necessary solutions, which will help minimize the wastage of time and materials and reduce the cost of reworks. In short, BIM is useful throughout the entire life cycle of a construction project.

BIM, more than a mere 3D representation of a building project, is a digital communication method about all the physical and functional features of a building. As it provides detailed and accurate information on design, construction, logistics, operation, maintenance, budgets and schedules, each section in the project gets a clear idea about the cost of the building throughout its life-cycle even before the construction starts. Therefore, they can make necessary adjustments to make the project cost effective, based on the information shared through BIM.

Several countries have already started adopting BIM technology realising its potential. BIM is capable of exploiting the substantial life-cycle benefits, which will lead to widespread adoption of this technology in the construction industry throughout the world.