As we step into the final quarter of 2023, it's evident that the construction industry is continuing to evolve at an unprecedented pace.
Building Information Modeling (BIM)'s development and adoption began in earlier 90s, it was still relatively unknown, underutilised and relied on heavy computer systems to add any value only truly becoming viable on a project wide scale in the past few years.
With the advancements to computer power formal international standard for BIM was introduced in 2018. Meaning today, BIM is widely recognised and utilised in the construction industry worldwide for its transformative capabilities in project management and collaboration. Unfortunately for most, this means R&D relief for BIM development activity alone will not fulfil HMRC's thresholds for this incentive.
While Building Information Modeling (BIM) has transformed the construction industry, it's important to understand why BIM alone may not always qualify for R&D relief, especially in the evolving landscape. BIM has come a long way and is now widely adopted in the construction industry. As a mature technology, it may not align with the original intent of R&D relief, which is to encourage innovation in emerging areas.
So while BIM development continues to be at the forefront of driving innovation, revolutionising how we design and construct buildings its just one piece of the puzzle.
However, its not all doom and gloom there are exciting trends on the horizon that promise to shape the future of construction:
- Smart Cities: The rise of smart cities is transforming our urban landscapes. These cities are not just smart; they are intelligent, interconnected, and sustainable. From efficient energy management to smart transportation systems, the construction industry plays a crucial role in building the cities of tomorrow. With viable district and interconnected utilities making previously theoretical design a reality and bringing some of the most interesting projects imagined into a reality.
- Advanced Technologies: Beyond BIM, technologies like drones and augmented reality are becoming integral to construction projects. They improve efficiency, safety, and project monitoring, ensuring that every detail is accounted for. Giving real time updates and knowledge to every stakeholder in the design team.
- Sustainability: Green construction practices and eco-friendly materials are no longer optional. They are essential for meeting sustainability goals and reducing the carbon footprint of our projects, its not just about hitting BREEAM excellent, its about creating carbon positive, ethical building practice.
- Digital Twins: The use of digital twins, especially in spatial design, is gaining traction. It allows for real-time monitoring and simulation, enhancing decision-making during construction and beyond. Utilising drone and sensor technologies reactive maintenance could be a thing of the past.
- Data-Driven Insights: Data analytics is empowering construction professionals to make informed decisions. ?? From project scheduling to cost estimation, data is the key to efficiency.
In 2024 and beyond, we expect to see Architects, Engineers and Masterplanners continue to harness the power of BIM while embracing these growing trends and innovations.
If you are going beyond BIM, R&D relief is still a vital tool for your business to succeed, but as industry catched up with technology I strongly suggest you find an advisor that will keep up with the industries evolution:
- Definition of R&D: R&D relief is typically granted for activities that seek to advance science or technology. While BIM is a powerful tool for project management and collaboration, it may not inherently involve scientific or technological advancements that meet R&D criteria.
- Evolution of BIM: BIM has come a long way and is now widely adopted in the construction industry. As a mature technology, it may not align with the original intent of R&D relief, which is to encourage innovation in emerging areas.
- Focus on Other Innovations: In the changing landscape of construction, there are new frontiers for innovation. Smart cities, advanced technologies like drones and augmented reality, sustainability practices, digital twins, and data-driven insights are areas where genuine R&D efforts are often concentrated.
- Reforms in R&D Relief: Recent reforms in R&D tax relief have led to stricter scrutiny by HMRC. They aim to prevent fraud and error in claims, especially in sectors like construction where substantial claims have been identified.
- Need for Expert Guidance: As the construction industry evolves, it's crucial for businesses to seek expert guidance from R&D tax advisors who understand the shifting landscape. They can help identify eligible R&D activities beyond BIM and ensure compliance with changing regulations.
In the coming years, Architects, Engineers, and Masterplanners are expected to continue harnessing the power of BIM while exploring these growing trends and innovations. For businesses going beyond BIM, R&D relief remains a valuable tool for success, provided they stay informed about industry changes and work with knowledgeable advisors.
