e-book Estimating and Cost Planning Using the New Rules of Measurement

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Wills element of quantity surveying

Remember, you heard it here first The standard has also been road tested on a number of other client projects. The NRM3 has been developed with major cross industry collaboration and adopts the same style and premise as the NRM1 and 2, which are the established RICS 's professional standards for cost management of capital construction cost estimating, cost planning and analysis and benchmarking.

Accessibility links Go to content Go to navigation. Improved confidence and cost certainty: provides the industry accepted method that will allow robust life cycle costing comparison of maintenance cost on a like-for-like basis, guidance on typical risks and mitigation plans with working examples , transparency of what is actual spent on maintenance and life cycle renewals. Other procurement approaches move the Introduction Chapter 1 The need for rules The need for rules to be followed when undertaking any measurement becomes clear when costs for past projects are analysed and elemental rates or unit rates are calculated and then applied to the quantities for a proposed project.

For greater accuracy in pricing, it is important to be able to rely consistently on what is included in an element or unit, and this helps build a more reliable cost database. When preparing a cost plan, the need to include the same items in each element is important so that costs for that element can be accurately applied. In May , the RICS published the first in its planned new set of rules for measurement dealing with the order of cost estimates and elemental cost planning. Historically, standard methods of measurement have been used to provide these rules and are available in various forms worldwide.

Establishing the approach The approach to take for any measurement is to decide its purpose and the level of design detail available, enabling the adoption of the most appropriate rules and procedures. Having an ability to read and understand the rules for measurement for bills of quantities should enable the measurer to appre- ciate the requirements of different rules and approaches. Chapter 2 Method of analysing cost It is evident that if a building is divided up into its constituent parts, and the cost of each part can be estimated, an estimate can be compiled for the whole work.

This schedule at RIBA stage 5 can be in the form of a bill of quantities which, when priced by a contractor, provides a tender sum for a project. Origin of the bill of quantities Competitive tendering is one of the basic principles of most classes of business, and if competitors are given comprehensive details of the requirements it should be fair to all concerned. However, historically when tendering based on drawings and specification, builders found that considerable work was involved in making detailed calculations and measurements to form the basis for a tender.

Each competing builder was provided with the same bill of quantities which could then be priced in a comparatively short space of time. This would give the employer greater control over the amount paid to the surveyor and the opportunity to increase the service that was provided. The measurement process The main purpose of a bill of quantities is therefore for tendering. Each contractor tendering for a project is able to price the work on exactly the same information with a minimum of effort.

This gives rise to the fairest type of competition. Computerised and other alternative measurement systems have become more and more widely used. This being so, it is obviously important that the surveyor should be able to write clearly in language that will not be misunderstood, and have a sound knowledge of building materials and construction and of customs prevailing in the industry.

Moreover, the surveyor must be careful and accurate in making calcula- tions, have a systematic and orderly mind and be able to visualise the drawings and details. This process is commonly known as taking-off.

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From this abstract, the draft bill was written billing. Through the utilisation of computerised systems, the various stages have become more integrated. Checking total quantities and careful editing of the bill are still required to identify any data entry errors. In such a case, the contractor is expected to carry out and the employer to pay for neither more nor less than the quantities given, an arrangement that is fair to both parties. So that contractors appreciate how the quantities have been prepared and what is included in each item, the quantity surveyor uses the rules from a standard method of measurement.

A bill of quantities will be interpreted by a number of contractors in competition, and it must therefore be complete and a suitable basis for a contract. A contractor may well produce quantities for an estimate including only the main items of work and not all of the items that would have been measured using NRM2. The descriptions would be shorter and usually the pricing is worked out alongside the quantities, thus avoiding abstracting and billing. If mistakes are made or short-cuts are taken which lead to errors, the contractor alone suffers. Surveyors will have in many cases their own customs and methods of working which may differ from those given here, and which may be equally good or, in their view, better.

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The procedure advocated is put forward as being reasonable and based on practice. Furthermore, all rules must be adapted to suit any particular circumstances of the project in hand. Knowledge of elementary building construction and simple mensura- tion and trigonometry is assumed; where knowledge is weak in these subjects, further study is recommended before proceeding further with measurement.

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Chapter 5 explains some of the alternative systems that are used in prac- tice, and Chapter 6 explains how girths and centre lines are calculated. Chapter 7 contains notes on general procedure rules for taking-off which should be read before attempting to study actual examples of measurement, and to which subsequent referral may also be useful.

Chapters 8 to 19 represent the sections into which the taking-off of a small building might be divided, and these should be worked through one at a time. The principal applicable clauses of NRM2 are referred to in each chapter and should be studied concurrently.

New Rules of Measurement for Maintenance

After the chapter has been read, the examples should be worked through. It should be possible to follow every measurement by reference to the drawing. The examples of taking-off in this book are small isolated parts of what could be the dimensions of a complete building and are not a con- nected series.

When they have been mastered in their isolation, it will be much easier to see how they might be expanded and fitted together to make up the dimensions of a complete building.

Chapters 20 and 21 deal with preliminaries and bill preparation, which are more logically dealt with after taking-off, as this is often a separate process. They assume that full specification clauses would be set out in preambles to the bill see Chapter The dimensions that are set down in the dimension column when taking-off are given to the nearest two decimal places of a metre. Side casts or waste calculations, as they are sometimes called are used to calculate these dimensions, and are given in millimetres to ensure accuracy. The examples in the chapters are presented in a traditional dimension format, this being considered the best system for a textbook and what the candidate will usually be faced with in the examination room.

Background The NRM Project is arguably one of the most significant developments in quantity surveying practice since the publication of the SMM7 in The intention of the RICS with this publication is to create a set of common rules that provide a consistent approach to measurement through the various stages of a project, from initial cost estimate to detailed quantification of the construction work. Historically, surveyors would approach the measurement of approxi- mate quantities in different ways: for example, the area of external walls might be measured over windows and doors i.

The method of measurement would be closely related to the way in which the rates were to be applied.

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NRM1 Cost Management Handbook

Cost plans would then be analysed and used as bench- marks for further cost plans, thus creating an unreliable database and potentially inaccurate estimates. There was also a lack of continuity in cost data between cost plans and bills of quantities, making it almost impossible to reconcile the cost plan with the priced bill of quantities or pre-tender estimate.

Volume 1 — Order of cost estimating and cost planning for capital building works This initial volume provides guidance on the quantification of building works for the purpose of preparing early cost estimates and cost plans.

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In addition, it gives direction on how to quantify other factors including preliminaries, overheads and profit, project team and design team fees, risk allowances and inflation. This describes the purpose and content of an order of cost estimate; defines its key constituents and explains how to prepare an order of cost estimate; and sets out the rules of measurement for the preparation of order of cost estimates using the floor area method, functional unit method and elemental method. This comprises the detailed tabulated rules of measurement for the preparation of approximate quantities for formal elemental cost plans.

The structure of an order of cost estimate is the same as that of Formal Cost Plan 1, thus enabling a consistent approach to be taken as further design details become available. The rules of meas- urement, however, differ by taking into account the level of design detail available at each stage.

The different rules for the order of cost estimate as opposed to the elemental cost plan can be found by comparing Volume 1 Part 2 with Part 3.