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Presentation Outline

Background
NRM 1
NRM 2
NRM 3
Questions

Background What?
NRM 1 Order of Cost Estimating and Cost Planning
for Capital Building Works (1st edition 2009, 2nd
edition 2012)
NRM 2 Detailed Measurement of Building Works (1st
edition 2012)
NRM 3 Order of Cost Estimating and Cost Planning
for Building Maintenance Works (1st edition 2014)

Background Why?
No specific guidance on producing costs estimates or
cost plans
Lack of inconsistency = confusion for clients & project
teams
SMM7 published in 1988, industry has changed;
Fewer BoQ produced
Rise of Design & Build procurement
Less time available to prepare & price tender
documents

Background Solution
Hence, it was decided bespoke set of measurement
rules was required;

Background Documents Status

RICS Practice
Notes
NRM Suite

You are not


required to use
them but..

Recommended
Good Practice by
RICS

If conformed to
should have at
least a partial
defence to an
allegation of
negligence

NRM 1
No standard way to produce an estimate;
No agreed terminology
No agreed arrangement of costs
No agreed method of applying on-costs (OH&P,
contingencies & inflation)
Confusion over what estimates should be called
Solution = NRM 1 Order of Cost Estimating and Cost
Planning for Capital Building Works

NRM 1
Standard format /sequence
Standard sequence & structure for priced works
Standard sequence & definitions of on-costs
Standard method of calculating on-costs

NRM 1
Standard format /
sequence

NRM 1

Two Types of
ESTIMATE
defined

Order of Cost
Estimate
Cost Plan

NRM 1
Order of Cost Estimate
Produced at RIBA Stages A or B (2007) or Stage 1
(2013)
Floor area method = GIFA x /m2
Functional unit method = Beds x /m2
Elemental build up = build-up of cost for elments

NRM 1
Cost Plan
Produced at RIBA Stages C, D, & E / F (2007) or
Stages 2 to 4 inclusive (2013)
Elemental method -with increasing level of detail as
design progresses

NRM 1
Cost Plan Elemental Approach
Uses standard hierarchical sequence of building
elements
Elements correspond to BCIS
Elemental Standard Form of
Cost Analysis

NRM 1
Cost Plan Elemental Approach
Group Element
Element

2. Superstructure
2.5 External walls
Sub-element

2.5.1 External walls above ground floor level

Component

2.5.1.1 External walls; details to be stated

NRM 1
Cost Plan Elemental Approach External Walls
Example

NRM 2
Detailed Measurement Of Building Works
Fundamental guidance on the quantification and
description of construction works.
Produce Bills of Quantities and Quantified Work
Schedules for obtaining tender prices.
Deals with non measureable items; Prelims, OHP,
Contractors Design, Risk Transfer and Fluctuations.

NRM 2
Structure
Split into 3 sections plus Appendices A to G.
Part 1 General
Part 2 Outlines the benefits of detailed
measurement and dealing with non measurable
items.
Part 3 Tabulated rules of measurement.
Appendices Templates and Example Layouts

NRM 2
Part 1
RIBA Work Stage G (2007) or Stage 4 -5 (2013)
Symbols for measurement.
Abbreviations.
Definitions.

NRM 2
Part 2
Benefits include; consistent basis for obtaining bids.
Clear statement of work to be executed.
Strong budgetary control and cost reporting.
Real time cost data.
Guidance on non measureable items.
Client benefit.

NRM 2
Part 3 - Tabulated Rules - Example

NRM 3
Order Of Cost Estimating and Cost Planning For Building
Maintenance Work and Whole Life Costing
Same premise and frame work as NRM 1.
Consistent method of quantification and description of
maintenance work and life cycle costing.
Guidance for procurement and cost control of
maintenance works and life cycle costing.

NRM 3
Structure
Part 1 General
Part 2 New Rules For Building Maintenance
Part 3 Rules For Cost Estimating (Renew / Maintain)
Part 4 Rules For Cost Planning (Renew / Maintain)
Part 5 Calculation Of Annualised Costs
Part 6 Tabulated Rules

NRM 3
NRM 3 Tabulated Rules - Example

RIBA Plan of Works 2013 vs 2007

Questions
Points for discussion;
Practice (WCLLP) policy
Templates / forms
Obtain copy of NRM3 Offer service to our clients
Life cycle costing / NRM3 data

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