Quantification & Costing of Construction Works

Question 1

What is the full title of NRM1?

Answer 1

Order of cost estimating and cost planning for capital building works.

Question 2

Why was NRM introduced?

Answer 2

• The previous Standard Methods of Measurement (SMM7) was purely designed for bill of quantities.
• There was a lack of guidance on cost estimating and cost plans when using SMM7.
• The NRM was introduced to give clients more confidence around inclusions as well as a common and consistent basis for the production of cost estimates and cost plans.

Question 3

What is the structure of NRM1?

Answer 3

Key sections are:
- Part 1 - General introduction.
- Part 2 - Measurement rules for production of order of cost estimates.
- Part 3 - Measurement rules for production of elemental cost plans.
- Part 4 - Tabulated rules of measurement for elemental cost planning.
- Appendices - References to GIA, functional units and etc.

Question 4

Why should one use NRM?

Answer 4

• It provides a common and consistent basis for the production of cost estimates and cost plans.
• Provides added confidence to clients.
• Considered as best practice by competent and conscientious practitioners.
• In the event a QS or firm is sued, the NRM will serve as a form of defence as it represents best practice.

Question 5

What if a client was to ask you to use another format other NRM?

Answer 5

• Whilst the NRM is not mandatory it is considered best practice in the industry.
• I would therefore advise the client of this first and if they still intend on me using another format then the client is at liberty to do what they want.
• As a means of best practice I would then do a comparison of the two formats.

Question 6

What is GIA, GEA and NIA?

Answer 6

• GIA - Gross Internal Area.
• GEA - Gross External Area.
• NIA - Net Internal Area.

Question 7

What is GIA?

Answer 7

• It is the area of the building measured to the internal face of the perimeter walls at each floor level.
• It excludes for open sided balconies, roof terraces, open light wells/upper level void of atrium and open external stairways.

Question 8

What is GEA?

Answer 8

• It is the area of the building measured to the external face of the perimeter walls at each floor level.
• It excludes for open sided balconies, roof terraces, open light wells/upper level void of atrium and open external stairways.

Question 9

What is NIA?

Answer 9

• It is the area of usable space measured to the internal face of the perimeter walls at each floor level.
• It excludes for internal structural walls and columns, centre line of party walls, covered galleries, open sided balconies, roof terraces, open light wells/upper level void of atrium and open external stairways.

Question 10

Where can the abbreviations for GIA, NIA and GEA be found?

Answer 10

RICS Code of Measuring Practice.

Question 11

What is the purpose of the Code of Measuring Practice?

Answer 11

To provide precise definitions for the accurate and consistent measurement of buildings.

Question 12

What is the full title of NRM2?

Answer 12

Detailed Measurement for Building Works.

Question 13

What is the full title of NRM3?

Answer 13

Order of cost estimating and cost planning for building maintenance works.

Question 14

What is IPMS?

Answer 14

• International Property Measurement Standards.
• Developed by more than 80 professional organisations to develop international standards for measuring properties.

Question 15

What does the RICS say about the use of IPMS?

Answer 15

The RICS property measurement standard, 2nd edition, January 2018 has made it mandatory for the use of IPMS for residential and office buildings.
IPMS: All buildings is not mandatory as RICS are yet to release an updated edition of the property measurement standard to include for this.

Question 16

If a client was to ask you to not use IPMS, what would you do?

Answer 16

• I would first advise the client that IPMS is mandatory as it is an international measurement standard.
• However, if the client still insisted that I not use this and use something else, then I would do a comparison showing the differences.
• This way, I have complied with the RICS professional standards as well as fulfilling the clients requirements.

Question 17

What is IPMS1?

Answer 17

• IPMS1 is a universal standard that applies to all building classes and is the measure of the area of a building to the external face of the perimeter walls at each floor level.
• Inclusions but stated separately:
  
  • Open sided balconies.
  • Roof terraces.
• Exclusions:
  
  • Open light/upper level void of atrium.
  • Open external stairway.

In summary, IPMS1 compares closely to the GEA under the RICS code of measuring practice.

Question 18

What is IPMS2?

Answer 18

• IPMS2 is for measuring the internal area of an office building at each floor level to the internal dominant face of the perimeter walls.
• Inclusions but stated separately:
  
  • Covered galleries.
  • Open sided balconies.
  • Roof terraces.
• Exclusions:
  
  • Open light/upper level void of atrium.
  • Patio and decks at ground floor.
  • External car parking.
  • Equipment yards.

In summary, IPMS2 compares closely to the GIA under the RICS code of measuring practice.

Question 19

What is IPMS3?

Answer 19

• IPMS3 is for measuring the occupation of floor areas of an office building at each floor level to the internal dominant face of the perimeter walls.
• Inclusions but stated separately:
  
  • Covered galleries.
  • Open sided balconies.
  • Roof terraces.
• Exclusions:
  
  • Standard building facilities such as staircases, lifts, W/C’s and etc.

In summary, IPMS3 compares closely to the NIA under the RICS code of measuring practice.

Question 20

What is internal dominant face?

Answer 20

• The inside finish surface comprising 50% or more of the surface area for each vertical section forming an internal perimeter.
• A vertical Section refers to each part of a window, wall or external construction feature of an office building where the outside finished surface varies from the inside finished surface area of the adjoining window, wall or external construction feature, ignoring the existence of any columns.

Question 21

On Ashman Bank, what was the difference in costs for upgrading the existing guttering and how did you go about advising the client on the contractor’s submission of the variation?

Answer 21

• The client had asked me to review the contractor’s submission for upgrading the existing guttering.
• I noticed the client’s PM had also carried out his own independent review of the contractor’s submission which was coming in at approximately £4k less than the contractor’s submission.
• When I carried out my review, I was not able to use CSA rates as there was no rates inclusive for upgrading the existing guttering and therefore had to use Spon’s and BCIS.
• I noticed the client’s PM assessment did not factor in the recent labour uplift and I had also noticed he used rates online which I advised do not always equate to the reality of how materials are purchased as there are other factors to consider such as credit facilities, buying in large quants, delivery requirements and etc.
• To conclude, my assessment was not far off the contractor’s submission albeit the contractor’s was slight high due to not subbing the works out as that would’ve incurred a further mark-up which would’ve brought the costs in line with the contractor’s.
• The difference in costs amounted to approx. £700.00.

Question 22

On GMV 401 & 403, what was the difference in quantum of the internal partitions and how did you adjust the tenderer’s price?

Answer 22

• The difference in quantum from my PTE and the contractor’s submission was approximately 2,400m2.
• I queried this back to the contractor and asked them to confirm their quantum for internal partitions of the various types as they seemed relatively high.
• The contractor responded they had reviewed their quantum and made adjustments where necessary.
• I then asked them to confirm the adjustment to the contract sum which in total came to approx. £270k saving.
• I then noted this below the line as a post-tender pricing adjustment.

Question 23

What different methods of costing construction works are you aware of?

Answer 23

• Building rates from first principles which include:
  
  • Materials.
  • Labour.
  • Plant.
  • OH&P.
  • Sundries & Fixings.
• Dayworks:
  
  • Contractor paid specifically for instructed work.
• Bill rates:
  
  • BOQ:
    
    • Quantities pre-specified.
  • SOR:
    
    • Staff/Labour/Plant.

Question 24

What is normalising?

Answer 24

• It is the process of adjusting and standardizing tender prices to make them comparable across different tenderers.
• In doing so, it maintains transparency and fairness that all tenderers will be assessed on the same criteria.

Question 25

What are the differences between a SoW, BoQ and SoR?

Answer 25

• An SoW is a document that details the building works as a list (similar to a shopping list) based on drawings and specification of a construction project.
• A BoQ is a document that details the quantity of every constituent part of a construction project identified in the drawings and specification. Like the SoW but also includes for the quantities.
• An SoR is a document that sets out the staff, labour and plant hire rates for a contractor to price for cost reimbursable works or dayworks. These are more common on cost reimbursable works and for when pricing dayworks.

Question 26

How deep is a piling mat?

Answer 26

The depth of a piling mat can vary on several factors such as ground conditions, type of piling being undertaken and etc., but on average piling mats often range between 1 to 3 metres in depth.