QUANTIFICATION & COSTING

Question 1

What are the International Property Measurement Standards (IPMS)? What does it mean?

Answer 1

It is a new, principles-based international standard that sets out how to measure property. It means that for the first time, property will be measured in a consistent way around the world. IPMS does not define the units of measurement but instead what is included.

Question 2

What if a client asks you to use another measurement standard?

Answer 2

I would advise the client of the benefits and encourage the use of IPMS, and explain that as an RICS member it is my responsibility to use the international standard as best practice. However, the Professional Statement provides for this eventuality. It states that “any measurement used needs to be consistent unless legislation or the client requires otherwise, in which case this must be clearly stated in the terms of engagement and report”. But it must be in writing so that you have proof for not adhering to best practice.

Question 3

What are the limitations of using SPONS?

Answer 3

SPONS is only produced once a year so can become outdated quite quickly a
based on Central London pricing so has to be adjusted for location factors.

Question 4

What are the key standards / guidance notes on quantification?

Answer 4

NRM 1 – Order of cost estimate for Building Works
NRM 2 – Method of Measurement for Building Works
NRM 3 – Order of cost estimate for Maintenance Building Works
International Property Measurement Standard
• NRM, RICS Property Measurement ( Code of measuring, IPMS)

Question 5

Why are measurement standards important?

Answer 5

• In order to be able to compare
• Reduces potential for dispute
• Give the Client confidence that the quantification is correct

Question 6

What is the NRM and why is it important?

Answer 6

Guidance note on Best Practice from the RICS
provides industry standard
(When an allegation of professional negligence is brought forward court / tribunal will refer to best practice

Question 7

What RIBA stages do you produce cost information?

Answer 7

Stage 0-1 Order of Cost Estimate
Stage 2 - Cost Estimate / Cost Plan
Stage 3-4 - Cost Plan

Question 8

What are the 3 methods for producing an order of cost estimate ?

Answer 8

1. Floor area
2. Functional unit
3. Elemental

Question 9

Purpose of an order of cost?

Answer 9

Establishing a realistic cost limit

Question 10

What is a base cost estimate

Answer 10

Estimate including Base Cost, Prelims and OH&P

Excl. inflation and risk

Question 11

How are accurate Main Contractor prelims and OH&P calculated at this stage?

Answer 11

1. As a %

2. Benchmarking

Question 12

Under NRM 1 - How are project unknowns dealt with?

Answer 12

It is essential risks and identified, assessed, monitored and controlled. NRM identifies 5 ways of dealing with this:

1. Avoid - redesign, cancel/ remove project, alternative solutions
2. Reduction
3. Transfer
4. Sharing
5. Retention

Question 13

How is risk priced in NRM?

Answer 13

• As a properly considered assessment

- Use of risk registers in this process

Question 14

What are the different types of risk?

Answer 14

1. Construction risk
2. Design Development Risk (Planning, procurement)
3. Employer Change risk (Change in scope, quality, time)
4. Employer other risk (Acceleration)

Question 15

What would you typically see in an Order of Cost Estimate?

Answer 15

1. Project title
2. Project Description
3. Statement of cost
4. Basis / Assumptions / Exclusions
5. Base date
6. Cost Breakdown

Question 16

What are the formal cost planning stages?

Answer 16

• CP 1 - Stage 2 (Scope defined, no detailed design)
• CP 2 - Stage 3
• CP3 - Stage 4
• PTE - End of Stage 4