The facilitating works and building works estimate is the sum of the cost targets for group elements 0 to 8 of an NRM 1 cost plan. It excludes main contractor’s preliminaries, main contractor’s overheads and profit, the project and design team fees estimate, the other development and project costs estimate and risk allowances.
In practice this figure represents the net cost of the physical works measured in the cost plan: facilitating works plus substructure, superstructure, internal finishes, fittings, furnishings and equipment, services, prefabricated buildings and building units, work to existing buildings and external works. The QS then builds up the full cost limit by adding main contractor’s preliminaries and overheads and profit, which together give the works cost estimate, followed by fees, other development and project costs, risk and inflation. Keeping these layers separate allows each one to be checked, benchmarked and challenged on its own.
Related terms: Works Cost Estimate, Building Works Estimate, Cost Limit, Group Element.
