NRM 3: Order of cost estimating and cost planning for building maintenance works

The RICS new rules of measurement 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 and maintenance project.

The 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 and maintenance works. Although the RICS new rules of measurement are principally based on UK practice, the requirements for a coordinated set of rules and underlying philosophy behind each volume have worldwide application.

The suite of documents comprising the RICS new rules of measurement (NRM) consist of the following three volumes:

  • NRM 1: Order of cost estimating and cost planning for capital building works
  • NRM 2: Detailed measurement for building works
  • NRM 3: Order of cost estimating and cost planning for building maintenance works

NRM 1: Order of cost estimating and cost planning for capital building works

This volume provides indispensable 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 ‘construction cost management cycle’.

NRM 2: Detailed measurement for building works

This volume provides fundamental guidance on the detailed measurement and description of building works for the purpose of obtaining a tender price. The rules address all aspects of bill of quantities (BQ) production, including setting out the information required from the employer and other construction consultants to enable a BQ to be prepared, as well as dealing with the quantification of non-measurable work items, contractor designed works and risks. Guidance is also provided on the content, structure and format of BQ, as well as the benefits of BQ.

Whilst written mainly for the preparation of bills of quantities and quantified schedules of works, the rules will be invaluable when designing and developing standard or bespoke schedules of rates.

These rules provide essential guidance to all those involved in the preparation of bills of quantities, as well as those who wish to be better informed about the purpose, use and benefits of bill of quantities.

NRM 3: Order of cost estimating and cost planning for building maintenance works

This volume provides essential guidance on the quantification and description of maintenance works for the purpose of preparing initial order of cost estimates during the preparation stages of a building project, elemental cost plans during the design development stages (pre-construction) and detailed asset-specific cost plan (post-construction) and throughout the in use phases of a building project or facility. The guidance provided by the rules also aids the procurement and cost control of maintenance works.

The rules follow the same framework and premise as NRM 1: Order of cost estimating and cost planning for capital building works. Consequently, they give direction on how to quantify and measure other items associated with maintenance works, but which are not reflected in the measurable maintenance work items – i.e. maintenance contractor’s management and administration charges, overheads and profit, other maintenance-related costs, consultants’ fees and risks in connection with maintenance works.

Unlike capital building works projects, maintenance works are required to be carried out from the day a building or asset is put to use until the end of its life. Accordingly, while the costs of a capital building works project are usually incurred by the building owner/developer over a relatively short-term, costs in connection with maintenance works are incurred throughout the life of the building – over the short, medium and long-term. Consequently, the rules provide guidance on the measurement and calculation of the time value of money (methods of economic evaluation, NPV and payback periods), guidance on using the measured data to inform life cycle cost plans and forward maintenance plans, as well as VAT, and taxation.

NRM 3: Order of cost estimating and cost planning for building maintenance works, together with NRM 1: Order of cost estimating and cost planning for capital building works, present the basis of life cycle cost management of capital building works and maintenance works – enabling more effective and accurate cost advice to be given to clients and other project team members, as well as facilitating better cost control.

Figure 0.1 below summarises the RICS NRM suite and how they inter-relate, as well as illustrating the link to the BCIS Standard Form of Cost Analysis.

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Identity

The rules are called NRM 3: Order of cost estimating and cost planning and cost planning for building maintenance works.

Enquiries

Enquiries concerning the rules may be made in the first instance to Quantity Surveying and Construction Professional Group at RICS.

RICS QS & Construction Professional Group
The Royal Institution of Chartered Surveyors (RICS)
Parliament Square
London SW1P 3AD
United Kingdom

Any suggestions for future revisions are welcomed and may be sent to the Quantity Surveying and Construction Professional Group at RICS.