The Royal Institute of Chartered Surveyors (RICS) have developed and published a suit of documents titled the New Rules of Measurement (NRM). There are 3 main New Rules of Measurement, NRM1, NRM2 & NRM3. This particular blog is going to focus on NRM 1 and provide a summary of what it is and what it was developed for.
If you would like to obtain a brief overview of the history of methods of measurement for construction and a brief overview of the 3 NRM volumes that are used today, then please takea checkout our “construction methods of measurement – explained” video on youtube or take a look at the blog on our website under the same name.
NRM1 is the order of cost estimating and cost planning for capital building works. The first edition was published in February 2009, but several factors combined to make it necessary to publish a second edition in January 2013 which is still the most recent addition today.
NRM1 (as well as the other 2 volumes) were written in order to provide a standard set of measurement rules that should be understandable by any role or profession on a constructionproject. It provides in depth guidance on the quantification of building works for the purpose of preparing cost estimates and cost plans.
NRM1 has four main parts:
■ Part 1 contextualises approximate estimating and cost planning in terms of the RIBA and OGC process models and also explains certain symbols and abbreviations. The important aspects of this part are the definitions of terms used in the rules.
■ Part 2 largely deals with order of cost estimates such as: what they are, how they are made up and how they are prepared. It also sets out the rules of measurement for the preparation oforder of cost estimates using cost per m2, cost per functional unit and the elemental method of approximate estimating. Order of cost estimating is beyond the scope of this book, but the measurement rules relating thereto are considered later in the chapter.
■ Part 3 is also explanatory regarding the purpose and processes of elemental cost planning along with rules of measurement that apply to putting an elemental cost plan together.
■ Part 4 consists of explanations around the tabulated rules that are to be used and how items are to be codified.
NRM 1 aims to be the foundation of good cost management of construction projects – enabling more effective and accurate cost advice to be given to clients and other project team members, as well as facilitating better cost control. Although written primarily for the preparation of order of cost estimates and cost plans, the rules will also be invaluable when preparing approximate estimates for projects. It provides guidance and rules on how to measure and estimate the cost of general building and construction work such as substructures super structures and internal finishes etc. but that’s not all. Direction on how to quantify other items forming part of the cost of a construction project, that many may not thinkabout is also provided such as: preliminaries, overheads and profit, project team and design team fees, risk allowances, inflation, and other development and project costs.
One of the other great things about NRM1 is that the rules can be used as a basis for capturing historical cost data and completing the ‘cost management cycle’ to help with benchmark analysis of future projects.