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 issues on Brexit?

Answer 4

 Reduced labour supply for the construction industry  Import tariffs  OJEU  Potential significant impacts on UK based consultants as they are now global – less of an impact on contractors as they are more focussed on the domestic market

Question 5

What are the different guidance for measurement?

Answer 5

RICS Code of measurement practice

NRM

IPMS

ICMS

Question 6

What is ICMS?

Answer 6

International Construction of Measurement Standard - aims to provide greater global consistency in construction costing.

Question 7

What is RICS Code of Measuring Practice?

Answer 7

Offers guidance of definitions and diagrams of design economics

Question 8

What are your sources of cost data?

Answer 8

SPONS Internal database Benchmarking Market testing

Question 9

What is SPONS made up of?

Answer 9

Architect and Builders price book,

Mechanical and Electrical services book

Civil engineering, external works

Question 10

Why were NRM versions created?

Answer 10

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

Question 11

How is the NRM structured?

Answer 11

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 12

How are NRM1 elements broken out / structured?

Answer 12

Group Component Element Sub-element Component

Question 13

What was the update from V1 to V2 of NRM?

Answer 13

NRM 1 was update for capital building works only Renumbering of group elements

Question 14

Why would you use NRM3?

Answer 14

To price up maintenance works associated with building maintenance works

Question 15

What is the structure of the NRM elements?

Answer 15

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 G

roup element 11: Project/design team fees

Group element 12: Other development/project costs

Group element 13: Risks

Group element 14: Inflation

Question 16

What is your view on inflation?

Answer 16

RICS publication on TPI

No change from 2020 to 1Q 2021

Fall by 2% from previous year

Many unknowns due to brexit and covid

Increased construction costs due to social distancing and methodologies

Increased overheads due to testing / additional PPE