PP #614 – a new market worth billions?
V.I. Pronin, Moscow 2024
Keywords: common data environment, SOD, digital environment, information system, information model, information modeling technologies, capital construction project, design in construction, construction deadlines, design organization, information systems operator.
Introduction
On September 1, 2024, Government Resolution No. 614 of May 17, 2024 “On approval of the Rules for the formation and maintenance of an information model of a capital construction project, the composition of information, documents and materials included in the information model of a capital construction project and submitted in the form of electronic documents, and requirements for the formats of these electronic documents” comes into force. The Resolution is introduced for the period from September 1, 2024 to September 1, 2030.
This resolution introduces a new concept of “information systems operator”. What it can be, we will try to consider in this article.
List of abbreviations
OKS – capital construction project
SOD – Common Data Environment
IS – information system
OIS – information systems operator
Definition of concepts
In italics I highlight quotes from PP (sometimes the words are composed strangely, but this is the original).
Excerpt from the text of the PP of May 17, 2024 No. 614:
“The formation and maintenance of an information model of a capital construction project is ensured the developer, the technical customer, the person providing or preparing the investment justification, and (or) the person responsible for operation capital construction project, in cases established by Decree of the Government of the Russian Federation of March 5, 2021 No. 331, in accordance with concluded agreements on the performance of engineering surveys, preparation of design documentation, amendments to such documentation, construction, reconstruction and (or) other agreements providing for the formation and maintenance of an information model of a capital construction project (hereinafter referred to as agreements).
The use of established information exchange formats, and the accounting of changes necessary for the chronology of changes, the implementation of safe storage and transfer of information models of capital construction projects in accordance with the legislation of the Russian Federation on information, information technology and information protection, these Rules and agreements are ensured through information systems used by the persons specified in the first paragraph of this clauseincluding technical means owned or at the disposal of the said persons and used to perform work at the stages of engineering surveys, architectural and construction design, construction, reconstruction and operation of capital construction projects or management of investment and construction projects, as well as through information systems operatorscarrying out activities related to their exploitation.”
Based on the text of PP No. 614:
– once again recorded what the formation and maintenance of information models (IM) of OKS is, added requirements for a digital information model (see the text of the resolution, this is not the subject of discussion in this article);
– fixed who should be engaged in the formation and maintenance of the information model. And here the circle of persons has been narrowed in comparison with the previous edition:
Developer (Customer)
Technical customer
A person who provides or carries out the preparation of an investment justification
Operator
It is very good that there is a final and clear list of those responsible for this type of activity. In previous versions, almost all project participants were indicated, and this made it possible to push this task onto each other. Some customers said directly, “let's write this in the design specification and let the designer figure it out.”
– defined how (with the help of what) this formation and maintenance should be carried out – with the help of information systems (well, this is not surprising), and also introduced some requirements (see the text of the PP) and, here is the most interesting thing, introduced a certain new actor in the project “information systems operator” (ISO), which carries out activities on the operation of information systems for the formation and maintenance of IM.
The area of responsibility of this operator is also defined (or outlined):
use of established information exchange formats (responsibility for ensuring that information exchange is carried out in established formats);
taking into account the changes necessary for the chronology of the introduction (in fact, registration of changes in the information system);
implementation of safe storage and transfer of IM OKS;
and, obviously, if the IPO carries out activities on exploitation of the IS, it must have these systems, technical means, etc. And also, it must be able to provide these IS for use by the project participants.
Is the information systems operator a new participant in the project?
I would say that discussions of such a role in the project have been going on for quite a while. This role was called a little differently, most often it is called a BIM operator.
For example:
Vladimir Malakhov wrote about this in his article back in 2016. [1]
He also talks about this, but already in May 2024. [2]
Patent Patent 2686006 C1 [3]
What are the differences between the proposed ideas and what appeared in PP No. 614?
By and large, they are no different. It may just be clarified who should be assigned the duties of an information systems operator.
In fact, we are talking about the fact that there must be competencies for the formation and maintenance of information models, as well as software and technical means to support this type of activity.
These competencies should appear on the side of the developer, technical customer or operating organization. The current state of the construction industry allows us to say that such competencies and resources on the side of the listed project participants are insufficient to ensure the implementation of PP 331.
That is why an information systems operator appears.
Market of information systems operator services.
The calculation will be quite rough, but it will be enough to assess the market potential. The main information is taken from the annual report of the Main State Expertise for 2023. [5]
To determine the market size, I suggest starting from the number of expert opinions. Total expert opinions (all, not just GGE):
In accordance with the current version of the Government Decree of March 5, 2021 No. 331, the mandatory formation and maintenance of information models is provided for in two cases:
In projects financed with the involvement of funds from the budgets of the budgetary system of the Russian Federation.
In 2023, budget-financed facilities accounted for 50% of the total number.
If a residential property is being built at the expense of equity holders (formation and management is provided by the developer or technical customer).
Based on these data, it turns out that 27% of all projects are in housing and civil construction. At the same time, about 80% of them are in shared construction. [4]
Based on this information, we can roughly assume that the formation and maintenance of IM will be mandatory for 70% of the total number of projects. This comes out to 59,000 projects per year.
Let's try to estimate this market in monetary terms. At the moment, let's take into account the cost of owning a system of the SOD class (general data environment). This system will inevitably be required for the formation and maintenance of the information model. [6] There are many different systems on the market that can be used to organize the SOD. Their prices were discussed separately in the article “Economic structures for implementing commercial licenses for the SOD of construction projects.” [7].
The lower limit of the cost of owning a data processing system can be estimated at 10,000 rubles per month for one project.
59,000 * 10,000 * 12 = 7,080,000,000 rub.
More than 7 billion rubles per year. This is the total potential of the data processing market for the formation and maintenance of information models, based on software costs (rent). Moreover, this is the lower limit of the estimate.
But the services of the information systems operator will not be limited to just providing a system for the formation and maintenance of information models. In order for all this (formation and maintenance) to work as intended, a lot of work by specialists in the project is required. They can be called whatever you like – BIM managers, information systems operator specialists, etc.
In order for the project to develop using information modeling technology (information models were formed, etc.), it will require appropriate support. In this article, I will not try to describe all the processes or even a small part of them, but I will go over the top. The point is that if you take a customer, a designer, a contractor and others, give them an information system to work with, nothing will change dramatically. The maximum that can be achieved in this way now is to transfer paper document flow to electronic. The remaining procedures will remain the same, even worse – they will try to stretch the old approaches to new work tools.
The construction industry is on the verge of a change in the technology of working with information. This will not happen by itself. It is necessary to make significant efforts to transform processes, retrain people, etc.
So, what kind of support is required, what should the information systems operator (or developer, technical customer) ideally undertake?
The right approach to providing information systems operator services.
If we are guided by the ideas of positive development of the construction industry, increasing labor productivity, etc., then the emergence of such a role in the project as an information systems operator should have a positive effect on the cost, timing and quality of projects. How can OIS be useful?
As we can see, the list of works is quite extensive, and their detailed consideration will take a lot of time, we will not go into details now. I will emphasize once again that without carrying out these works, new technologies of work in the project will not be able to be implemented. And that means someone must carry out these works.
The cost of such work performed by the information systems operator in a construction project can be estimated in different ways. It is important that the bulk of the work is done at the start of the project and its volume decreases over time. It can be assumed that the cost of the work will start at 300,000 rubles per month and decrease to 100,000 rubles. The estimate is based on personal experience, its accuracy is not very important now. Let's take 100,000 rubles per month as a starting point. Then, by analogy with the cost of operating the SOD (above), we get the amount of 70 billion rubles per year. Of course, not all projects will be carried out with such support. Some companies already have enough in-house competencies and the work will be performed by existing personnel. But these works will still be present on the market.
Some customers will not find it profitable to maintain these competencies at all, since construction is not their main activity, and so on.
Again, I took a fairly low bar for the assessment; even if we cut the volume in half, we would get an impressive 35 billion rubles a year.
In total, more than 40 billion rubles per year is the potential of the market for the services of the information systems operator, which opens with the entry into force of the Government Resolution of May 17, 2024 No. 614.
Conditions.
Of course, PP 614 sets forth some conditions that must be met when forming and maintaining information models. Some of them are organizational, others technical. Let's look at them all at once:
To form and maintain the IM, information systems must be used that provide functions for data transfer between subjects of urban development relations and their registration. (There is nothing out of the ordinary in this condition. According to the Civil Code of the Russian Federation, subjects of urban relations are the Russian Federation, subjects of the Russian Federation, municipalities, individuals and legal entities. That is, it is necessary to ensure information exchange between all and registration of such exchange.)
Processing computing complexes (servers) and databases of information systems must be located on the territory of the Russian Federation and under its jurisdiction.
More conditions:
a) use of the construction information classifier provided for in Article 576 of the Urban Development Code of the Russian Federation to form and maintain an information model of the facility
capital construction in the volume specified in the corresponding XML scheme;
6) recording of operations to update information, documents and materials included in the information model of a capital construction project, the chronology of changes (time and date of operations) with recording of the content of the changes made and information on the records of the persons who carried out such operations;
c) determination of persons responsible for the formation and maintenance of the information model of the capital construction project.
The most interesting conditions (I will retain the numbers of paragraphs of PP 614):
8. Information, documents and materials are subject to storage as part of the information model of a capital construction project in the state information systems for supporting urban development activities of the constituent entities of the Russian Federation and the unified state information system for supporting urban development activities “Stroykompleks.RF” from the moment of their inclusion in such information model by the operators of the said information systems and without time limitation.
9. The developer, technical customer, person providing or preparing the investment justification, and (or) the person responsible for the operation of the capital construction project, by providing access to information systemsproviding the functions of data transfer between subjects of urban development relations and their registration and (or) transfer of information, documents and materials via telecommunication channels through operators of information systems specified in the second paragraph of clause 3 of these Rules, send the information model of the capital construction project to the executive bodies of the subjects of the Russian Federation and local government bodies authorized to place it in the state information systems for ensuring urban development activities of the subjects of the Russian Federation within 5 working days from the date of approval of the information, documents and materials included in such information model.
In general, there is nothing out of the ordinary either. Most likely, it will be necessary to build some integrations with Stroykompleks.RF, so as not to do everything manually.
The most confusing condition is here:
10. The information model of a capital construction project is posted in the state information system for supporting urban development activities of a constituent entity of the Russian Federation. Changes to the information model of a capital construction project at the next stage of the life cycle of the capital construction project are possible only in the version of the information model of the capital construction project posted in the state information system for supporting urban development activities of a constituent entity of the Russian Federation.
It is not clear what the authors of the Resolution wanted to say with paragraph 10. At what “next stage of the life cycle”? How exactly are changes supposed to be made to the information model, which is located in the GISOGD? This immediately raises questions of access and the GISOGD’s capabilities to change models (they are clearly not there).
I think there will be some changes to this point, because it is formulated unclearly. The idea was probably that the current version of the OKS information model was stored in GISOGD. Then the wording should be corrected to something similar: “In case of changes to the OKS information model, the new version is sent to GISOGD ….”
Conclusion
Even with this unclear requirement (clause 10 of PP 614), the overall impression from the list of requirements does not give the impression of being impossible to fulfill. This means that PP 614 opens up a new market for construction services, legalizing a new role in the project – the operator of information systems.
Any legal entity can engage in this type of activity, the main thing is to have sufficient competencies and technical capabilities (availability of software). Capital costs to start the activity are not required.
I assume that similar information system operators can be created on the basis of:
Design institutes.
Vendors of software for organizing data processing systems.
Integrators and consultants in the market of information services for the construction industry.
Companies that provide technical customer services, etc.
References
[1] Vladimir Malakhov: “In Russia there are no end customers interested in implementing BIM technologies.”
[2] Vladimir Malakhov. BISKID-BIM-11: Single space of the industry. Why do we need a BIM operator and what should it be like?
https://rutube.ru/video/35d373b44cdd436105ac8a50ca8ddd3e/
[3] Patent 2686006 C1. Authors: Oleg Petrovich Andreev, Aleksey Gennadievich Bocharov, Mikhail Evgenievich Bocharov “METHOD AND SYSTEM FOR INFORMATION MODELING OF BUSINESS PROCESSES OF THE LIFE CYCLE OF A PRODUCTION FACILITY”
[4] Marina Skubitskaya. “15-20% of new housing is built without the involvement of equity holders’ funds” https://www.vedomosti.ru/realty/articles/2020/10/19/843821-15-20-novogo
[5] Annual report of the Main State Expertise for 2023. https://gge.ru/upload/iblock/324/j1894uhauxkaki2ieg2qarmeutscjen1/%D0%93%D0%BE%D0%B4%D0%BE%D0%B2%D0%BE%D0%B9%20%D0%BE %D1%82%D1%87%D0%B5%D1%82%202023.pdf
[6] Pronin, V. I. Interpretation of the concepts of “information modeling technology” (TIM) and “common data environment” (CDE) / V. I. Pronin, D. V. Medvedev // Man. Society. Inclusion. – 2023. – Vol. 14, No. 2 (54). – P. 140-146. – EDN YXDIPD.
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[8] Requirements for common data environments. D. V. Medvedev, V. I. Pronin, A. A. Islam // Human. Society. Inclusion / Human. Society. Inclusion Volume 14 (2023). No. 4-2 / Volume 14 (2023). Issue 4-2
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[10] Islam, A. A. Desktop or web application for organizing the SOD OKS / A. A. Islam, V. I. Pronin, D. V. Medvedev // Man. Society. Inclusion. – 2023. – Vol. 14, No. 3-3 (57). – P. 128-135. – EDN GHMTFS.
[11] Pronin, V. I. Economic structures of implementation of commercial licenses of construction projects SOD / V. I. Pronin, D. V. Medvedev, A. A. Islam // Man. Society. Inclusion. – 2024. – Vol. 14, No. 4-3 (60). – P. 166-176. – EDN AFWSVK.
[12] Medvedev, D. V. Levels of Development of General Data Environments of Construction Projects / D. V. Medvedev, V. I. Pronin // Economy: Yesterday, Today, Tomorrow. – 2023. – Vol. 13, No. 5-1. – P. 434-445. – DOI 10.34670/AR.2023.59.18.018. – EDN FVJNAG.
[13] Pronin, V. I. Organization of the process of selecting a common data environment for capital construction projects / V. I. Pronin // Economy: yesterday, today, tomorrow. – 2023. – Vol. 13, No. 5-1. – P. 220-230. – DOI 10.34670/AR.2023.54.86.078. – EDN IMVWNL.
[14] Pronin, V. I. Interpretation of the concepts of “information modeling technology” (TIM) and “common data environment” (CDE) / V. I. Pronin, D. V. Medvedev // Man. Society. Inclusion. – 2023. – Vol. 14, No. 2 (54). – P. 140-146. – EDN YXDIPD.
[15] Pronin, V. I. Formation of tasks for selecting an information system from the strategic goals of a design organization / V. I. Pronin, D. V. Medvedev // Man. Society. Inclusion. – 2023. – Vol. 14, No. 3-1 (55). – P. 114-119. – EDN CNMXJI.
[16] Pronin, V. I. Commercialization of information modeling technologies on the example of the SOD market / V. I. Pronin, D. V. Medvedev, A. A. Islam // Man. Society. Inclusion. – 2023. – Vol. 14, No. 3-1 (55). – P. 141-149. – EDN CSQNSP.
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