NRM, IPMS/ICMS, Cost Data, Market Conditions

Question 1

What is the purpose of NRM?

Answer 1

Suite of documents that sets out a standard set of measurement rules

Question 2

What are the versions of NRM?

Answer 2

NRM1 - order of cost estimates and cost planning

NRM2 - detailed Bill of Quantities

NRM3 - Order of cost estimating and cost planning for building maintenance works.

Question 3

What is the IPMS?

Answer 3

International Property Measurement Standard - standard to measure property - non profit organisation formed to create a consistent and transparent method of measuring - provides precise definitions of measurement

Question 4

What are the different guidance for measurement?

Answer 4

RICS Code of measurement practice

NRM

IPMS

ICMS

Question 5

What is ICMS?

Answer 5

International Cost Management Standard - aims to provide greater global consistency in construction costing.

Question 6

What is RICS Code of Measuring Practice?

Answer 6

Offers guidance of definitions and diagrams of design economics - now superseded by IPMS in 2018

Question 7

What are your sources of cost data?

Answer 7

SPONS Internal database Benchmarking Market testing

Question 8

What is SPONS made up of?

Answer 8

Architect and Builders price book,

Mechanical and Electrical services book

Civil engineering, external works

Question 9

Why were NRM versions created?

Answer 9

Provide guidance on a structured approach to create cost estimates, limits and targets

Question 10

How is the NRM structured?

Answer 10

Part 1: General

Part 2: Measurement rules for order of cost estimating

Part 3: Measurement rules for cost planning

Part 4: Tabulated rules of measurement for elemental cost planning

Question 11

How are NRM1 elements broken out / structured?

Answer 11

Group Component Element Sub-element Component

Question 12

Why would you use NRM3?

Answer 12

To price up maintenance works associated with building maintenance works

Question 13

What is the structure of the NRM elements?

Answer 13

Group element 0: Facilitating works

Group element 1: Substructure

Group element 2: Superstructure

Group element 3: Internal finishes

Group element 4: Fittings, furnishings and equipment

Group element 5: Services

Group element 6: Prefabricated buildings and building units

Group element 7:Work to existing buildings

Group element 8: External works

Group element 9: Main contractor’s preliminaries

Group element 10: Main contractor’s OHP

roup element 11: Project/design team fees

Group element 12: Other development/project costs

Group element 13: Risks

Group element 14: Inflation

Question 14

What is your view on inflation?

Answer 14

No real change sitting at circa 4% year on year, much less than the 9% seen in previous years e.g. 2021-2022