QUANT & COSTING Flashcards
Why was NRM introduced
a. The previous Standard Method of Measurement (SMM7) was designed for the production of bill of quantities for tender purposes.
b. This resulted in a lack of guidance and uniformity around preparing cost estimates and cost plans when using SMM7.
c. The NRM was introduced to provide a common and consistent basis for the production of order of cost estimates and cost plans and to give Employers more confidence around their inclusions.
Why should you use the NRM
a. The NRM provides a common and consistent basis for the production of order of cost estimates and cost plans.
b. This provides added confidence to Employers.
c. In the event that a QS or firm is pursued for negligence, the use of NRM would provide a means of defense as it represents best practice.
d. QS’s are not required to follow the NRM if they judge it as unsuitable for their specific project but they must have a good reason as to why this approach has been taken.
What are the NRM 1?
a. The RICS NRM 1 is the Order of Cost Estimating and Elemental Cost Planning.
b. This provides a structured basis for measuring building works and for the production of Cost Estimates and Cost Plans.
What is the structure of the NRM 1
The key sections of NRM1 are:
1. Part 1: General introduction explaining the purpose of the document and how it should be used.
2. Part 2: Measurement rules for the production of order of cost estimates.
3. Part 3: Measurement rules for the production of elemental cost plans.
4. Part 4: Tabulated rules of measurement for elemental cost planning.
5. Appendices: With references to the definitions for GIA, functional units, NIA, elemental breakdowns, templates and general information required for cost plan production.
Where are GIA,GEA,NIA defined
The Code of Measuring Practice, produced by the RICS
What is the purpose of the Code of Measuring Practice
It precise definitions to permit the accurate and consistent measurement of buildings
What would you expect the percentage of NIA to GIA to be
For residential, ideally 80%
Range is around 75-85%
What do you measure in accordance with?
In the UK, NRM
What is the purpose of a BoQ
The purpose of the BoQ is to provide the estimator with an accurate picture of the scope of works and to provide a common and consistent basis for pricing.
Following receipt of Tender submissions, the BoQ also forms the basis of the Tender Analysis allowing an accurate like for like comparison to be undertaken.
Throughout the post contract stages it also provides the basis for the valuation rules of the contract for valuing variation items.
It also enables the contract works to be assessed and valued for the purposes of interim payment.
How would you structure a BoQ
In accordance with an elemental breakdown structure under NRM 2, I would include the following
sections:-
o Preliminaries (Main Contract).
o Facilitating Works.
o Substructure.
o Superstructure.
o Internal Finishes.
o Fittings, Furnishings and Equipment.
o Services.
o External Works.
o Provisional Sums.
o Dayworks.
How would you describe the preliminaries section in a Bill of Quantities
• The preliminaries detail items of work that are required to enable the construction but are not
associated within the permanent measured works items.
• This could include items such as:-
o Site setup.
o Management & supervision.
o Insurances for the project.
o Task Lighting.
o Protections and temporary barriers
What information is required to measure preliminaries
• Contract duration.
• Location.
• Type of project (New Build vs. Refurb).
• The size of the project.
• Temporary works.
• Security.
• Methodology.
• Programme.
• Services.
• Employers accommodation.
• Contractor designed work.
• Sectional completion.
• Insurances / Bonds.
Who owns the copyright to a BQ
The originator owns the copyright.
This is the QS generally who provides the client permission to use the document for its intended purpose.
What would you include within the BoQ where works are to be carried out by Nominated Subcontractor
Prime cost sum would be incorporated including:-
o An allowance for the cost of the Nominated Subcontractors work (based on the quotation).
o An allowance for the contractor to price for attendances such as accommodation, welfare, storage, handling, materials & cleaning.
o An allowance for a percentage addition for any other charges & profit.
How did you check that the items measured for the BoQ were accurate
• We have an internal peer review system where upon completion, a joint review of the drawings is carried out by my senior colleagues to ensure all scope of work items are captured.
• Junior colleagues assist with undertaking spot checks on the quantities to ensure these are accurate.
