General & NRM Flashcards
787 What are the typical responsibilities of the Cost Manager on a construction project?
Subject to scope of services:
* Manage risk allowance expenditure
* Initiate action to avoid overspending
* Prepare pricing documents for tendering
* Evaluate and analyse tender bids
* Prepare interim valuations
* Valuation variations and compensation events
* Assess contractors financial claims
* Negotiate and agree final account claims
* Issue financial reports and or statements
* Provide initial cost advise on capital investment costs
* Provide initial cost estimates and cost plans
* Provide advice on whole life costs
* Produce cost estimates, reports and forecasts
* Prepare and maintain the cash flow forecast
788 Which NRM should you use for building estimates and cost plans?
NRM 1 for order of cost estimates and cost planning. NRM2 for detailed measuring of building works. NRM 3 relates to maintenance works.
789 Name the 3 documents in the NRM suite?
NRM1 – Order of cost estimating and cost planning for capital building works
NRM2 – Detailed measurement for building works
NRM3 – Order of cost estimating for building maintenance works
790 Provide a brief overview of each of the NRM documents?
NRM1 – Provides guidance on the quantification of building works for the purpose of preparing cost estimates and cost plans. It is the corner stone 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.
NRM2 – Is written mainly for the purpose of preparing BoQ and quantified schedules of works, although the rules will be invaluable for designing and developing standards or bespoke schedules of rates.
NRM3 – Give guidance on the quantification and description of maintenance works for the purposes of preparing initial order of cost estimates. The rules also aid the procurement and cost control of maintenance works
791 What is the structure of NRM1?
- General introduction
- Measurement rules for order of cost estimating
- Measurement rules for cost planning
- Tabulated rules for measurement of elemental cost planning
- Appendices
792 What is the structure of NRM2?
- General Introduction
- Detailed measurement of building works
- Rules for measurement of building works
- Appendices
793 What is the structure of NRM3?
- General introduction
- Measurement rules for building maintenance
- Measurement rules for order of cost estimating
- Cost planning for R and M works
- Calculation of annualised costs for R & M works
- Elemental cost planning
- Appendices
794 Why is it important to measure the works in accordance with industry standards and best practice?
To provide consistency and greater accuracy of pricing and to ensure that all parties price on the same basis and therefore reduce the risk of dispute.
795 Is it mandatory for surveyors to follow the procedures set out in NRM?
No. NRM is not used for the measurement of civil engineering works. CESMM is used to measure those works (or is often better suited to measuring them). Additionally if work is bespoke to construction or civil engineering it may not be covered under either standard method of measurement. And while it is not mandatory to use an SMM, it will promote constancy, trust and may reduce disputes in the industry.
If a claim is made against a surveyor an adjudicator or the courts are likely to take into account the contents of any relevant guidance notes published by the RICS in deciding if the surveyor has acted in with reasonable competence.
797 How is risk dealt with under NRM?
It recommends not using a risk percentage. The risks should be fully taken into consideration against completeness of the design and extent of site investigation.
798 What are the four risk categories under NRM?
1. Design development
2. Construction
3. Employer change
4. Employer other
796 What are the key headings for contractor prelims in NRM2?
