Quantification & Costing Flashcards
Why were the New Rules of Measurement introduced?
- The RICS introduced the New Rules of Measurement (NRM) to standardise and improve the accuracy of measuring construction works.
- NRM aimed to enhance cost management, reduce disputes, and provide compatibility with international standards.
What is NRM 1?
- The RICS New Rules of Measurement 1 is for Order of Cost Estimating and Elemental Cost Planning of capital building works.
- 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:
- Part 1: General introduction explaining the purpose of the document and how it should be used.
- Part 2: Measurement rules for the production of order of cost estimates.
- Part 3: Measurement rules for the production of elemental cost plans.
- Part 4: Tabulated rules of measurement for elemental cost planning.
Why should you use the New Rules of Measurement?
- The NRM provides a common and consistent basis for the production of order of cost estimates and cost plans.
- In the event that a QS or firm is pursued for negligence, the use of NRM would provide a means of defence as it represents best practice.
What is meant by the abbreviation GEA?
- Gross External Area.
- This is the area of the building measured externally at each floor level.
What is meant by the abbreviation GIA?
- Gross Internal Area.
- This is the area of the building measured to the internal face of the perimeter wall at each floor level.
- The GIA excludes external open sided balconies, fire escapes, canopies, external walls and fuel stores.
What is meant by the abbreviation NIA?
- Net Internal Area.
- This is the area of usable space measured to the internal face of the perimeter wall at each floor level.
- The NIA excludes internal structural walls and columns, spaces with headroom less than 1.5m, permanent lift lobbies, toilets, cleaners’ cupboards and plant rooms.
Where are all of these abbreviations defined?
- The Code of Measuring Practice published by the RICS.
What is the purpose of the Code of Measuring Practice?
- Provides precise definitions to allow the accurate and consistent measurement of buildings.
What would you expect the percentage of NIA to GIA to be?
The percentage would depends on the type of project being undertaken.
- For example in an office building, I would expect the NIA to GIA percentage to be in the region of 70-85%.
- Where 70% is considered as relatively inefficient, a percentage of 85% is extremely efficient.
What do you measure in accordance with?
- The method of measurement to be adopted depends on the region, project and client that I am working with.
- For example in the United Kingdom in the Building sector, typically the New Rules of Measurement would apply.
What is the purpose of a BoQ?
- To provide the estimator with an accurate picture of the scope of works and a common and consistent basis for pricing.
- It also enables the contract works to be assessed and valued for the purposes of interim payment.
How would you prepare a BoQ?
- Compile all information necessary - drawings, specifications, schedules, document registers.
- If the information provided was sufficient to allow the BoQ to be compiled, I would discuss with the client and design team the method of measurement to be adopted.
- I would then commence the Take-off & work from the Substructure upwards.
- Following BoQ production I would carry out regular meetings and review any updated drawings to ensure that no works items had been missed between packages.
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.
- This could include items such as, site setup, management & supervision, or Insurances for the project.
How do you evaluate a variation which is based on a BQ item which contains an error?
- Assuming the same nature & conditions are applicable, the variation would be based on the BoQ rate within the contract.
- Unless both parties agreed to amend the rate to one that is fair and reasonable.
What is a Provisional Sum?
- Provisional sum is an allowance for an element of work within a contract that cannot yet be fully defined.
What is the difference between defined and undefined provisional sums?
- Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.
- Where there is insufficient information, the works are classed under an undefined provisional sum entitling the contractor to costs for prelims and an extension to the programme if required.
How did you check that the items measured for the BoQ were accurate?
- At RG we have an comp check 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.
What is NRM2?
- NRM2 provides a set of detailed measurement rules for the preparation of bills of quantities.
- The rules address all aspects production including guidance on the structure and format.
What is a Preamble?
- A preamble is an explanation of a document that is commonly found in contracts, specifications and bills of quantities.
- It can help with the interpretation of the document.
What are method related charges?
- A method related charge is a one-off item related to the method of carrying out the work and does not form part of the permanent works.
- For example provision of temporary propping required for a weakened elevation of an existing building.
What are time related charges?
- Time related charges are method related charges that are considered proportional to time taken to carry out the works for example plant hire.
What are fixed charges?
- Fixed charges are method related charges that do not vary with time for example Service Connection Charges.
How do you quantify internal partitions?
- Section 2.7 of NRM1 details the measurement of internal walls and partitions.
- Measurement rules highlight the thickness to be stated and measured in m2 on the centre line. No deduction made for openings.
What is a schedule 2 quotation?
- A Schedule 2 quotation aims to regulate the prices submitted by the contractor.
- The contractor’s quotation must cross reference to the rates and prices in the contract bills.
- Therefore, the contractor cannot simply disregard its tender rates and offer inflated prices when quoting for variations.
What are the problems with provisional sums to the PQS?
- Contractor may get economies of scale/ cheaper prices PQS would not know about.
- Not much incentive for contractor to bring cost down.
What are the different methods of measurement for a Cost Estimate?
1) Functional Unit
2) Floor Area
3) Elemental
4) Approximate Quantities
5) Bill of Quantities
What is the rule for variations under dayworks in JCT?
If variations cannot be properly measured they can be valued on a ‘daywork’ basis. These can be valued as:
Option 1 - Percentage addition (prime cost to which a % is added for OHP)
Option 2 - All inclusive rates (quoted at tender and incorporated in the contract documents. Include allowance for OHP)
What are the three New Rules of Measurement volumes
NRM_1 Order of cost estimating and cost planning
NRM_2 Detailed measurement for building works
NRM_3_Building Maintenance Works
How would you use benchmarking data?
I would adjust for the following;
- Inflation
- Location
- Abnormals
What risk allowances does NRM state need to be accounted for?
Design development risks
Construction risks
Employer change risks
Employer other risks
Total risk allowance = base cost estimate x % risk allowance for each of the above then added together.
What’s the differences between IPMS and NRM?
IPMS: Focuses on area measurement standards, providing specific guidelines for how to measure floor areas, usable space, and external areas of buildings.
NRM: Provides a more detailed breakdown of the measurement and pricing of construction work, including materials, labour, and overheads, and covers stages from preliminary design through to post-construction costmanagement.
How are NRM and IPMS linked?
NRM 1, 2 and 3 are linked to IPMS 1 and 2, which set the rules for measuring GEFA and GIFA respectively.
How doe IPMS relate to the Code of Measuring Practice?
- IPMS 1 = GEA
- IPMS 2 = GIA
- IPMS 3 = NIA
Is IPMS mandatory?
Yes
What if a client asks you to use a different measuring practice?
- I would advise the client of the benefits of IPMS, however if they still wanted us to proceed with a different measurement practice, I would ask the client to confirm this in writing and use the measurement method the client had requested.
What are the benefits of IPMS over the Code?
- Brings greater confidence and consistency to the global property market and allows greater transparency.
- It is a recognised global standard.
- Works alongside the international standard for accountancy and valuation.
- Can be used by any number of stakeholders in a property.
How would you measure for demolition / Facilitating works?
Quantifying facilitating works: Can be measured by site area, affected area, volume, length, time, or by item, depending on the type of work.
FYI
Facilitating works: Specialist tasks required before building works can begin, such as demolition, removal of hazardous materials, or soil stabilization.
Enabling works: Broader term that includes facilitating works along with temporary works and permanent works (e.g., demolition, site investigations, access roads, and mains services).
