Top 10 BIM Acronyms Explained

BIM is an acronym for the building information modelling process, but you’ve probably realised that
within that process there are many more acronyms lurking around to confuse you!

Here we countdown the 10 most common ones, helpfully taking you through the basics of BIM at the
same time.

(Clicking the blue title links will take you to that specific part of the video on YouTube).

10 - PAS 1192
10 – PAS 1192 – “Publically Available Specification 1192” series, published by the British Standards
Institution. There are five parts to it, with parts two to five each describing a different aspect of BIM
Level 2. The key part for project delivery is PAS 1192-2. Download it for free here or learn more in PAS
1192-2 in 5 Minutes.

9 - CDE
9 – CDE – “Common Data Environment”. It’s a shared digital space online that everyone in your project
team has access to. It could be a server, an extranet or a cloud based system. You can find out more
about CDEs in What is a Common Data Environment?

8 - PIM // AIM
8 – PIM // AIM – “Project Information Model” // “Asset Information Model”. Within the BIM process,
project teams create information models in their common data environment using both graphical and
non-graphical data, clearly structured and accurately linked. That data builds in richness as the project
stages progress until handover where the complete data set is passed to the asset’s owner or end-user.
The information model is called a “Project Information Model” or PIM during the delivery phase, and an
“Asset Information Model” or AIM once a project is handed over and complete. You can learn more about
this in What is a ‘BIM Model’?

7 - EIR
7 – EIR – “Employer’s Information Requirements”. Right at the outset, Clients or Employers set out the
information they will require in this document. It will state what they need at key stages of the project to
make decisions, and what they’ll need at handover to operate their new asset at an optimum level. It’s
important that this document is in place so project teams know what graphical and non-graphical
information is needed, and when. Find out more about EIRs in What are Employer's Information
Requirements?

6 - BIM EP
6 – BIM EP – “BIM Execution Plan” (sometimes shortened to BEP). This document is shared and agreed
by all parties in the project team. It sets outs how they will work together through the BIM process to
deliver the requirements of the EIRs. BIM Execution Plans will typically detail: team roles and
responsibilities; deliverables, and the timescales associated with them; approval procedures, and;
logistics, formats and conventions for interoperable file sharing. Please note that this is by no means an
exhaustive list.

5 - MIDP
5 – MIDP – “Master Information Delivery Plan”. This is a document that’s developed from the BIM
Execution Plan, setting out what information needs to be delivered, the format is should be delivered in,
the timescales and who needs to produce it. Below an MIDP sit various Task Information Delivery Plans
(TIDPs) which all feed into the master document. You can find out more about MIDPs in our simple 90
second overview here.

4 - LOI
4 – LOI – “Level of Information” or the amount of non-graphical data within an information model at a
given stage. It might be formed of schedules, specifications or other 2D documentation.

3 - LOD
3 – LOD – “Level of Detail” - meaning the amount of graphical or 3D data within an information model at
any given point in a project. Collectively, Levels of Detail and Levels of Information and termed “Levels
of Definition”. Further clarity is available in Levels of Definition Explained.

2 - IFC
2 – IFC – “Industry Foundation Classes”. It’s the open and neutral file format for exchanging data, and
was developed by a global organisation called BuildingSMART. IFC is like an international language that
everyone speaks, so that – regardless of what software platform they’re using – information can be
openly exchanged. Most software platforms will have an IFC export function or the ability to save data in
IFC format.

1 - BIM
1 – BIM – “Building Information Modelling”. The important thing to note is that this is a verb, it’s a
process and a way of working, rather than a physical entity. We clarify this in What is a ‘BIM Model’?

You can learn more about many of these acronyms in the BS/PAS 1192 series of publications by The
British Standards Institution. For those engaged in project delivery, PAS 1192-2 is particularly useful.
For those focusing on asset management, PAS 1192-3 is more relevant.

This video contains extracts of PAS 1192-2: 2013, © 2013 The British Standards Institution, © 2013
Mervyn Richards OBE and © 2013 Mark Bew MBE. Model imagery courtesy of InteliBuild.

This video was kindly sponsored by 4Projects. Find out more about them here.
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What is a Common Data Environment?

Fred Mills

15 July 2015

23,426
VIDEO VIEWS

Video hosted by Tom Payne.

ON a typical construction project, a lot of information is produced. The trouble is that information is
often unstructured, poorly co-ordinated and difficult to find.

The resultant inefficiency is estimated to add an extra 20-25% onto the cost of delivering our built
environment. If we take more care and have more integrity around how we structure project data, we
can help to eradicate this waste from the process, delivering clear time and cost savings.

The key to well-structured data is a Common Data Environment (CDE); an online place for collecting,
managing and sharing information amongst a team working on a project.

A CDE could take many forms, depending on the size or type of project you are working on. It could be a
project server, an extranet or a cloud-based system.

"An online place for collecting, managing and sharing

information"
The important thing is that this space is digital, that everybody in your team has open and unhindered
access to it, and that it can be easily sub-divided into areas for categorising information. In simple terms,
it needs to be a collaborative and well-managed space for sharing work.

In this video, we look at the CDE format as set out in the British Standard PAS 1192-2, the guidance
document for delivering projects at BIM Level 2. The guidance builds on the principles of BS 1192, which
was published in 2007.
With a single shared area established, the process of data flow in a CDE starts with the Client’s
authorised Employer’s Information Requirements (EIRs).

This document states the information that the Client will need from the project team in order to make
decisions at key points in the project lifecycle, including during its operation and use.

Design teams and other project contributors are able to work in their own ‘Work in Progress’ areas,
developing and honing their graphical and non-graphical information.

Once checked, that information is approved and moved to the ‘Shared’ area for other parties in access
and use in the creation and development of their contributions.

At BIM Level 2, whilst others may re-use information, the ownership and power to change the
information remains with its originator.

At key project stages and decision points – such as at the end of work stages, Planning approval or
Construction Issue – the Employer or Employer’s Agent approves and signs-off information before
moving it to the ‘Published’ area. It is very important to check here that the information provided aligns
with the Client’s stated requirements in their EIRs.

The published information can then be used to engage specialists; such as tier 2-3 contractors or
manufacturers. They are able to work in similar ‘Work In Progress’ areas to the design team before
sharing their approved contributions.

As each project milestone is met, published information is moved to the ‘Archive’ area for future
reference and use.
 The common data environment (CDE) as illustrated in PAS 1192-2: 2013, © 2013 The British Standards
Institution.

Effective use of a CDE will build an accurate and well-structured data set – a ‘Project Information Model’
(PIM) – as the stages progress. Once verified, this published documentation and data is used in the asset
management phase and known as an Asset Information Model (AIM).

By delivering and operating a building in a BIM Level 2 environment (that is, within a CDE) revision
control of documents becomes simple, production information is right first time and the cost of
producing it is reduced.

You can learn more about Common Data Environments in PAS 1192-2, which is available as a free
download from the British Standards Institution here:http://shop.bsigroup.com/forms/pass/pas-1192-
2

This video contains extracts of PAS 1192-2: 2013, © 2013 The British Standards Institution, © 2013
Mervyn Richards OBE and © 2013 Mark Bew MBE.

We welcome you sharing our content to inspire others, but please be nice and play by our
rules: http://www.TheB1M.com/Guidelines-for-Sharing

Capital Expenditures vs. Operating Expenses:

What's the Difference?
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BY J.B. MAVERICK

Updated Apr 24, 2019

Capital Expenditures vs. Operating Expenses: An Overview

Capital expenditures (CAPEX) and operating expenses (OPEX) represent two
categories of business expenses. However, there are distinct differences
between the two and their respective tax treatments.

Capital expenditures are for major purchases that will be used in the future. The
life of these purchases extends beyond the current accounting period in which
they were purchased. Because these costs can only be recovered over time
through depreciation, companies ordinarily budget for CAPEX purchases
separately from preparing an operational budget.
Operating expenses represent the other day-to-day expenses necessary to keep
the business running. These are short-term costs and are used up in the same
accounting period in which they were purchased.

Capital Expenditures
Capital expenditures are the amounts that companies use to purchase major
physical goods or services that will be used for more than one year. For example,
a company might have capital expenditures to increase or improve its fixed
assets.

Fixed assets are treated as noncurrent assets from an accounting standpoint,

meaning they won't be consumed in the first year.
Capital expenditures might include:

 Plant and equipment purchases

 Building expansion and improvements
 Hardware purchases, such as computers
 Vehicles to transport goods

The type of industry a company is involved in largely determines the nature of its
capital expenditures. The asset purchased may be a new asset or something that
improves the productive life of a previously purchased asset.

The capital expenditure is recorded as an asset on the balance sheet under the
section "property, plant & equipment." However, it's also recorded on the cash
flow statement under "investing activities," since it's a cash outlay for that
accounting period.

Once the asset is being used, it's depreciated over time to spread the cost of the
asset over its useful life. In other words, each year, a part of the fixed asset
is being used up. Depreciation represents the amount of wear and tear on the
fixed asset, and the amount of depreciation for each year can be used as a tax
deduction. In general, capital expenses are most often depreciated over a five- to
10-year period, but may be depreciated over more than two decades in the case
of real estate. (Of course, situations vary: A tax advisor can advise on how the
IRS calculates depreciation more specifically.)

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Capital Expenditures (CAPEX)

Operating Expenses
 Operating expenses are the costs for a company to run its business operations
on a daily basis. Examples include:

 Rent
 Utilities
 Salaries and pension plan contributions
 Any expense considered sales, general, & administrative expenses
(SG&A) on the income statement
 Research & development
 Property taxes
 Business travel

As operational expenses make up the bulk of a company's regular costs,

management typically looks for ways to reduce operating expenses without
causing a critical drop in quality or production output. In contrast to capital
expenditures, operating expenses are fully tax-deductible in the year they are
made.

It's important to note that sometimes an item that would ordinarily be obtained
through capital expenditure can have its cost assigned to operating expenses if a
company chooses to lease the item rather than purchase it. This can be a
financially attractive option if the company has limited cash flow and wants to be
able to deduct the total item cost for the year.

KEY TAKEAWAYS

 There are distinct differences between capital expenditures and operating

expenses and their respective tax treatments.
 Capital expenditures are for major purchases that will be used in the
future.
 Operating expenses represent the other day-to-day expenses necessary to
keep the business running.

How are CAPEX and OPEX different?

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Capital expenditures (CAPEX) are major purchases by a company that are

designed to be used over the long-term. Operational expenditures are the day-to-
day expenses a company incurs to keep their business operational.

CAPEX
Capital expenditures are purchases of significant goods or services that will be
used to improve a company's performance in the future. Capital expenditures are
typically for fixed assets like property, plant, and equipment. For example, if an
oil company buys a new drilling rig, the transaction would be a capital
expenditure. One of the defining features of capital expenditures is longevity
meaning the purchases benefit the company for longer than one tax year.

Examples of capital expenditures:

 Plant, equipment, and machinery

 Building improvements
 Computers
 Vehicles and trucks

Each industry might have different types of CAPEX expenditures. The purchased
item might be for the expansion of the business, updating older equipment, or
expanding the useful life of an existing fixed asset. Capital expenditures are
listed on the balance sheet under the section property, plant and
equipment. CAPEX is also listed in the investing activities section of the cash
flow statement.

Fixed assets are depreciated over time to spread out the cost of the asset over
its useful life. Depreciation is helpful for capital expenditures because it allows
the company to avoid a significant hit to their bottom line in the year the asset
purchased.

CAPEX can be externally financed, which is usually done through collateral

or debt financing. Companies issue bonds, take out loans or use other debt
instruments to increase their capital investment. Shareholders who receive
dividend payments pay close attention to CAPEX numbers, looking for a
company that pays out income while continuing to improve prospects for future
profit.

OPEX
Operating expenditures are the costs a company incurs for running their day-
to-day operation.
Examples of OPEX:

 Rent and utilities

 Wages and salaries
 Overhead costs such as sales, general, & administrative expenses (SG&A)
 Property taxes
 Business travel

OPEX also consists of research and development and cost of goods sold.
Operational expenditures are incurred through normal business operations. The
goal of any company is to maximize output relative to OPEX. In this way, OPEX
represents a core measurement of a company's efficiency over time.

If a company chooses to lease a piece of equipment instead of purchasing it as a

capital expenditure, the lease cost would likely be classified as an operational
expenditure.

The Bottom Line

Capital expenditures are major purchases that will be used beyond the current
accounting period in which they're purchased. Operational expenditures
represent the day-to-day expenses designed to keep a company running. OPEX
are short-term expenses and are typically used up in the accounting period in
which they were purchased.