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

Get top-rated, practical training

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.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

May 2 - SD News

Sleeping in Public

Housing, Supportive Service Providers Brace for Federal Cuts

Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

May 2 - KSL

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

May 2 - Streetsblog USA

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.

Senior Manager Operations, Urban Planning

New York City School Construction Authority

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO

Write for Planetizen