NRM 1 - Order of Cost Estimating and Cost Planning for Capital Building Works: NRM 1 (New Rules of Measurement)

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Table 1 gives an illustration, setting out the cost per square metre of GIFA for a new-build primary school, including preliminaries, based on a Tender Price Index (TPI) of 316 and UK mean location (index 100), using data up to the second quarter of 2018. For the first time, all three volumes of the NRM suite have been published at the same time. The updated suite consists of three separate volumes: Of course, NRM does not itself provide cost data. It is merely a tool allowing data to be captured and measured in a (more or less) consistent way. However, it at least introduces a degree of discipline and should over time allow a database of historic cost information to be collected, which will then inform future cost plans. NRM1 states that the major component of the estimate is the cost of construction works, including contractor’s preliminaries, overheads and profit. The others are:

The chosen cost per square metre enables the cost of the building to be derived, though estimates will need to be made for the additional costs identified in NRM1. Most projects on the BCIS database are for firm-price contracts, so an allowance is needed if it is felt that inflation over the contract period will vary significantly from the average of projects in the sample. In the world of construction, precision and uniformity in measurement are the cornerstones of successful projects. Enter the New Rules of Measurement (NRM), a comprehensive set of guidelines meticulously crafted by the Quantity Surveying and Construction Professional Group and published by the Royal Institution of Chartered Surveyors (RICS). Thinking about moving NBS Chorus? Discover the benefits of moving to a digital specification platform.In any event, I found myself listening to a range of speakers lyricising about how the new rules and standards will change how quantity surveyors operate. It seemed that Nirvana was being revealed to us; a new world of accurate cost estimates, clear and transparent cost data and measurable whole life value. The range of benefits seemed endless: from the basic (updating of SMM7) to the aspirational (alignment with building information modelling, the OGC Gateway process, modern methods of construction, new procurement routes and international reach). Even the token developer was supportive, if only because it allowed him to ask what his QSs really do to justify their fee. use the elemental breakdown and cost structures, together with the coding system developed for NRM1, to effectively integrate cost management with Building Information Modelling (BIM).

Part1contextualisesapproximateestimatingandcostplanningintermsoftheRIBAandOGCprocessmodelsandalsoexplainscertainsymbolsandabbreviations.Theimportantaspectsofthispartarethedefinitionsoftermsusedintherules. International Construction Management Standards (ICMS): Global Consistency in Presenting Costs, (2nd edition) (incorporating life cycle costs) RICS property measurement (2nd edition), RICS Professional Statement (incorporating IPMS) RICS cost prediction (1 st edition), RICS Professional Statement RIBA Plan of Work 2020 and RIBA Digital Plan of Work (DPoW). ICMS captures a new method for the classification of cost for construction works (and associated costs) in an internationally agreed format. It enables direct cost comparisons between projects in different parts of the world, irrespective of whether estimates and cost plans have been prepared in accordance with NRM 1 or the measurement rules used by another country, therefore providing clients with greater confidence in the accuracy of such estimates and cost plans. ICMS takes into account the cost classification of the life cycle costs of the asset (i.e. the initial acquisition and construction costs plus renewal, operation, maintenance and end of life costs). The base cost classification arrangement (for the initial capital costs) can be used in conjunction with NRM 1, whereas the wider life cycle cost arrangement can be used in conjunction with NRM 3. Both NRM 1 and NRM 3 have been mapped through to ICMS. RICS professional standards and guidance RICS guidance notes Definition and scope RICS guidance notes set out good practice for RICS members and for firms that are regulated by RICS. An RICS guidance note is a professional or personal standard for the purposes of RICS Rules of Conduct. Guidance notes constitute areas of professional, behavioural competence and/or good practice. RICS recognises that there may be exceptional circumstances in which it is appropriate for a member to depart from these provisions in such situations RICS may require the member to justify their decisions and actions. Application of these provisions in legal or disciplinary proceedings In regulatory or disciplinary proceedings, RICS will take account of relevant guidance notes in deciding whether a member acted professionally, appropriately and with reasonable competence. It is also likely that during any legal proceedings a judge, adjudicator or equivalent will take RICS guidance notes into account. RICS recognises that there may be legislative requirements or regional, national or international standards that take precedence over an RICS guidance note. Document status defined The following table shows the categories of RICS professional content and their definitions. 2 Building product manufacturer looking to get your products listed and power up your marketing? List your products here. The differences between the main contractor’s preliminaries, overheads and profit of the source cost data and the current scheme. NRM1 suggests that these be considered separately, but they are rarely identified in tenders and so they are included with the works costs in BCIS analyses.A mapping tool between NRM and ICMS will be provided here shortly, mapping the new NRM with ICMS 3, launched in November 2021. While NRM is based on UK practice, it provides a framework for a common set of rules and guidance with global application. The primary development in recent years has been the publication of the International Cost Management Standard (ICMS) (formerly known as International Construction Measurement Standards). Together with the recent publication of the Cost prediction professional statement, there now exists a hierarchy of cost management standards and tools from the high-level and global ICMS, through the more detailed principles of all aspects of cost prediction in the professional statement, to the detailed rules and guidance in the NRM suite. Sustainability is no longer an optional consideration but a fundamental aspect of construction projects. NRM provides the necessary framework to account for sustainability-related costs and impacts. This includes the ability to estimate and manage the costs associated with sustainable building materials, energy-efficient systems, and environmentally friendly construction practices. NRM’s adaptability to sustainability metrics ensures that professionals can incorporate environmental considerations into their cost planning and decision-making processes. Emphasis on Lifecycle Costing The functional units used by BCIS are defined in Appendix 2: Recommended Functional Units of the Standard Form of Cost Analysis (see www.rics.org/bcisesfca). Conclusion One of the primary strengths of NRM lies in its standardisation of measurement and costing practices. By adhering to a common methodology across projects, professionals can ensure consistency in documentation, measurement, and reporting. This standardisation streamlines communication between project stakeholders, minimising misunderstandings and disputes. Benchmarking and Performance Evaluation

The adoption of the New Rules of Measurement (NRM) offers a multitude of benefits that resonate throughout the project lifecycle. Cost Control and AccuracyUse NBS to develop information-rich 3D models that are fully coordinated with linked specification information TheRoyalInstituteofCharteredSurveyors(RICS)havedevelopedandpublishedasuitofdocumentstitledtheNewRulesofMeasurement(NRM).Thereare3mainNewRulesofMeasurement,NRM1,NRM2&NRM3.ThisparticularblogisgoingtofocusonNRM1andprovideasummaryofwhatitisandwhatitwasdevelopedfor. A number of other supporting documents are also being provided alongside the new NRM suite, which are designed to assist users with their understanding and use of the new NRM suite. These will be available from, or shortly after, launch. The likely expectations of the clients in terms of design and specification – are they typical for the type of building, or are they likely to be more or less complex?