Quantification and Costing Flashcards
Name some methods of measurement
- NRM2 (New Rules of Measurement)
- CESMM4 (Civil Engineering Standard Method of Measurement 4) – published by ICE
o For civil engineering projects - RMM2 (Network Rail’s Method of Measurement) – 3 volumes that are similar to NRM
o Provides supplementary information to CESMM4 - SMM7 (Standard Method of Measurement) – superseded by NRM
How do SMM7 and NRM2 differ?
NRM2 was brought into directly replace SMM7 to encourage best practice and reflect the changes in construction processes since SMM was created.
- elements being broken down further within NRM2 with 41 work sections against the 22 trade sections in SMM7
- clearer definitions of prime cost and provisional works and allowances for risks
- NRM2 is compatible with BIM
- allows scope to create composite descriptions of work items, thus removing the need for the contractor to price large numbers of low value tasks that add little to the overall pricing exercise
What is NRM?
A suite of documents written to provide a standard set of. measurement rules that are understandable by anyone involved in a construction project. It consists of three volumes.
What is NRM1?
Order of Cost Estimating and Cost Planning for Capital Building Works:
Provides a framework for preparation of pre-contract estimates and cost plans using an elemental breakdown to better see the advantages of clear and transparent cost data
What is NRM2?
Detailed Measurement for Building Works:
Provides detailed guidance on preparation of BoQs which can then be used to price upon using unit rates
What is NRM3?
Order of Cost Estimating and Cost Planning for Building Maintenance Works:
Used to consider the maintenance and running costs of the building to assist with life cycle costs and is structured to match NRM1.
What is the structure of NRM2?
Split into three sections:
1. Measurement in context with the RIBA Plan of Work and OGC Gateway Process
2. Outlines benefits of detailed measurement and purpose of NRM2
3. Tabulated rules for measurement
What are the advantages of using a bill of quantities based on NRM2?
- forms an identical basis for tender evaluation
- transparency
- provides a basis for post contract management:
– valuing variations
– final account preparation
– interim valuations
– auditing - familiar format.
What does building up a price from first principle mean?
To break down on a project into its constituent parts to identify costs for labour, plant and materials individually (+OH&P).
What are preliminaries?
Prelims address and communicate to the contractor items that are not directly related to any component, element, or work section
What is a preamble?
First section of a BoQ that assists the reader in understanding the unit price items and a high-level description of the method of measurement of those unit items
What is a prime cost sum?
An allowance included within the contract for supply of works or materials to be carried out by a nominated subcontractor or supplier, or a statutory authority. These costs may vary once the work has been carried out.
What is a provisional sum?
An allowance, usually estimated by a cost consultant, that is inserted into tender documents for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price. They can be defined or undefined.
What is a defined provisional sum?
Described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.
e.g. Cost of installing a timber frame where the specific type of timber has not yet been specified and so its price is not known
What is an undefined provisional sum?
Less well described and so the contractor cannot be expected to make allowance for them. Therefore, the contractor may be entitled to EOTs or additional sums and the client undertakes the cost and scheduling risks.
e.g. unknown ground conditions