The Price of Non Interoperability: $15.8 Billion per Year

The National Institute of Standards and Technology (NIST) commissioned a study to estimate the efficiency losses resulting from inadequate interoperability among computer-aided design, engineering, and software systems in the U.S. capital facilities industry (In 2002, the nation set in place $374 billion in new construction on capital facilities (U.S. Census Bureau, 2004b)). Now there's apparently a precise measure of the waste caused by fragmentation of IT systems.

1 minute read

August 12, 2004, 4:41 PM PDT

By Chris Steins @planetizen


AEC Cost Grid The National Institute of Standards and Technology (NIST) commissioned a study to estimate the efficiency losses resulting from inadequate interoperability among computer-aided design, engineering, and software systems in the U.S. capital facilities industry (In 2002, the nation set in place $374 billion in new construction on capital facilities (U.S. Census Bureau, 2004b)).



Now there's apparently a precise measure of the waste caused by fragmentation of IT systems. Download the full report (PDF, 1.5 MB). [Thanks to Jonathan Cohen's great monthly newsletter for the link.]



According to the report, examples of inefficiencies resulting from inadequate interoperability include manual reentry of data, duplication of business functions, and the continued reliance on paper-based information management systems.



Of the estimated cost of $15.8B/year, architects and engineers had the lowest interoperability costs at $1.2 billion.



I wonder if there is any similar research for the planning community? While I hear anecdotes about some progressive cities that are streamline the permitting process, I get the impression that much of the planning process is still paper-based, prone to duplication, delay and "lost forms".


Chris Steins

Chris Stines is Planetizen's former Editor and the founder of Urban Insight, a leading digital agency. Chris has 25 years of experience in technology consulting and urban planning and has served as a consultant to public sector state, county, and local agencies, Fortune 500 private firms, educational institutions, and nonprofit organizations.

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Regeneration of contaminated industrial land used for waste dumping, West Midlands, UK, 2006 .

EPA Awards $267 Million to Clean Up and Reuse Contaminated Sites

The EPA is investing the funds to clean up and redevelop contaminated sites nationwide, supporting economic growth, community revitalization, and environmental restoration.

5 hours ago - Environmental Protection

Archway made of bikes in Knoxville, Tennessee over Tennessee River.

Knoxville Dedicates $1M to New Greenway

The proposed greenway would run along North Broadway and connect to 125 miles of existing trails.

7 hours ago - WATE

25mph speed limit sign with digital "Your Speed" sign below it.

Philadelphia Launches ‘Speed Slots’ Traffic Calming Pilot

The project focuses on a 1.4-mile stretch of Lincoln Drive where cars frequently drive above the posted speed limit.

May 18 - WHYY

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Write for Planetizen