NRM 1: Order of cost estimating and cost planning for capital building works
The RICS new rules of measurement (NRM) is a suite of documents issued by the RICS Quantity Surveying and Construction Professional Group.
The rules have been written to provide a standard set of measurement rules that are understandable by all those involved in a construction project. They provide advice and best practice guidance to RICS members involved in the cost management of construction projects worldwide.
NRM 1: Order of cost estimating and cost planning for capital building works, provides fundamental guidance on the quantification of building works for the purpose of preparing cost estimates and cost plans. Direction on how to quantify other items forming part of the cost of a construction project, but which are not reflected in the measurable building work items, is also provided – i.e. preliminaries, overheads and profit, project team and design team fees, risk allowances, inflation, and other development and project costs.
NRM 1 is the 'cornerstone' of good cost management of construction projects – enabling more effective and accurate cost advice to be given to clients and other project team members, as well as facilitating better cost control.
Although written primarily for the preparation of order of cost estimates and cost plans, the rules will be invaluable when preparing approximate estimates.
In addition, the rules can be used as a basis for capturing historical cost data in the form required for order of cost estimates and elemental cost plans, thereby completing the 'cost management cycle'.
These rules provide essential guidance to all those involved in, as well as those who wish to be better informed about, the cost management of construction projects.
The second edition of NRM 1 strengthens the link between methods of measurement and how building projects are now procured, and provides a common elemental and cost breakdown structure applicable to all stages of measurement.
The RICS new rules of measurement are based on UK practice but the requirements for a coordinated set of rules and underlying philosophy behind each section have worldwide application.