1
Q
What is NRM2?
A
provides a set of detailed measurement rules for the preparation of bills of quantities or schedules of rates for the purpose of obtaining a tender price. It also deals with the quantification of non-measurable work items, contractor designed works and risks. Guidance is also provided on the content, structure and format of bills of quantities, as well as the benefits and uses of bills of quantities.
2
Q
What is the BCIS?
A
The Building Cost Information Service (BCIS) online database contains elemental cost analyses for over 17,500 projects across the UK - information you will find indispensable when preparing cost plans, providing early cost advice to clients and benchmarking costs.
3
Q
What is a GIFA?
A
Gross internal floor area
4
Q
What is a benchmark?
A
Benchmarking, the process of comparing projected or actual project cost and performance information against information from similar projects, is key to the development of the plan.
5
Q
How would did you measure the fencing remeasure contract?
A
I reviewed NRM2 for the correct measurement unit which was metres
Stating the required height
Reviewed the contract for the applicable measure
Measured off drawings
Check measure on site
Issue remeasurement to contractor
6
Q
What instance would you use daywork to price an item of works?
A
The method of valuing work on the basis of the time
spent by the contractor’s team, the materials used and
the plant employed
When the material nature of the works is unquantifiable and or the is no suitable rate for the works
7
Q
How did you remeasure the remaining quatity of joinery works following insolvency of the contractor?
A
Scope of works reviewed
Schedule of works chekced on site what was still to be carried out
Remeasured relevant items and produced a new schedule of works
8
Q
How did you remeasure the retaining walls on Claremount Road?
A
Checked NRM for suitable unit
m2 - thickness stated
carried out on site measure documenting thickness and measure supporting photos
9
Q
How did you measure materials on site for the valuation?
A
Checked require units of materials
Performed a count check
Recorded on external valuation or checked subbie applications
10
Q
How did you measure the mastic pointing for the BoQ?
A
NRM2 measured in metres
- Checked subbie measure
- carried out on site measurement of works
- cross checked rates
issued measure to subbie
11
Q
What does the government code of measuring practice state?
A
- GEA, GIA, NIA inclusions and exclusions
12
Q
What is IPMS?
A
Updated in 15/01/2023
- Made up of multiple bodies across the world including RICS and RIBA
- Sets rules for measuring GEFA and GIFA
- Applicable to all types of buildings and purposes, inc analysis and benchmarking, construction rates and ratios, property development, financing and management
- Seeks to avoid confusion with existing terms
- 3 different groupings- IPMS 1 and 2 for external and internal measurements for whole / part of building
- IPMS 3 - ext and int measurements for excluding occupation (NIA)
- IPMS 4 - internal measurements required for selected areas, inc int walls and columns
13
Q
Why were the New Rules of Measurement introduced?
A
- Prev Standard Method of Measurement (SMM7) purely designed for BoQ production for tender purposes
- Therefore lack of guidance and uniformity when preparing cost estimates and cost plans
- NRM introduced to provide common and consistent basis, to give employers more confidence around what’s been included
14
Q
If producing estimates and cost plans, which measurement rules represent industry best practice for capital building and building maintenance works in the UK?
A
- NRM (new rules of measurement)
15
Q
Why should you use the NRM?
A
- Common and consistent basis for production of cost documents
- Adds confidence to clients
- If QS / firm pursued for negligence, NRM (if followed)would provide means of defence - represents best practice
- If not following NRM, would need good defence why this approach taken
16
Q
Can you name the 3 documents in the NRM suite?
A
- NRM 1 - Order of cost estimating and cost planning for capital building works
- NRM 2 - Detailed measurement for building works
- NRM 3 - Order of cost estimating and cost planning for building maintenance works
17
Q
Why did NRM update?
A
Updated in 2021 to align with IPMS, ICMS and RIBA Plan of Work 2020.
18
Q
Can you provide a brief overview of NRM1?
A
- Guidance for quantification of building works for purpose of preparing cost estimates and cost plans
- ‘Cornerstone’ of good cost management of construction projects, enables effective and accurate cost advice to be given to clients and other project team members
- Facilitates better cost control
- Now links to IPMS 1 and 2, and incorporates ICMS principles
Structure: - Glossary
- General
- Measurement rules for OCE
- Measurement rules for cost planning
- Tabulated rules of measurement for elemental cost planning
- Group elements
- Appendices (templates, functional units)
19
Q
How does NRM define the ‘cost limit’ for the project?
A
- Max expenditure the client is prepared to make related to completed building (inc construction, professional services, other project costs, items required post completion, during operation and risk allowances
20
Q
How does NRM define the ‘base cost estimate’ for the project?
A
- Evolving estimate of known factors without allowances for risk / uncertainty / inflation. Sum of works cost estimate, project and design team fees estimate, other development and project costs
21
Q
Can you provide a brief overview of NRM2?
A
- Prep BoQ and quantified schedules of works
- Rules invaluable for designing and developing standard / bespoke schedules of rates
- Now links to IPMS 1 and 2, and incorporates ICMS principles
Structure: - Glossary
- Detailed measurement of building works
- Rules of measurement for building works
- Work sections (more how packages might be split up)
- Appendices (templates, guidance for prepping BoQ)
22
Q
Key headings for contractor preliminaries identified in NRM 2?
A
- Employer’s requirements
- Site accommodation
- Site records
- Completion and post-completion requirements
- Main contractor’s cost items
- Management and staff
- Site establishment
- Temporary services
- Safety and environmental protection
- Control and protection
- Mechanical plant
- Temporary works
- Site records
- Completion and post completion requirements
- Cleaning
- Fees and charges
- Site services
- Insurance, bonds, guarantees, warranties
23
Q
Types of BoQ under NRM2?
A
Firm
- Reliability of tender price increases in relation of accuracy of quants provided. If no design changes, firm BoQ at tender stage = final cost
Approximate
- Not enough detail to prepare firm, decided by client that time/cost to produce firm one not warranted
- No lump sum price provided, but tender price totals
- Qty’s subject to remeasurement on completion by QS / cost manager
24
Q
What items would you measure in association with structural steelwork under NRM 2?
A
- Framing erection
- Permanent formwork
- Cold rolled purlins and cladding rails
- Isolated structural member
- Filling hollow sections
- Surface preparation and treatment
- Localised protective coatings
25
How do you measure brickwork walls under NRM?
Masonry- section 14
- Measured in sqm, itemised according to wall thickness, type of construction and method of formation
Associated items:
- Chimney stacks
- Arches
- Brick reinforcement
- Forming and closing cavities
26
What items would you measure in association with piling under NRM 2?
Work section 7 Piling (measured in m)
- Piling mat
- Piling plant
- Reinforcement
- Breaking through obstructions
- Disposal of excavated materials
- Delays and tests
27
What items would you measure in association with balconies under NRM 2?
Work section 25 Stairs and balustrades
- Item includes rails, infill panels, ironmongery, finishes, fixings (measured in m / nr)
28
What items would you measure in association with internal walls under NRM 2?
Work section 20 Proprietary walls, linings and partitions
- Measured in sqm (unless under 300mm)
- Forming opening
- Angles, junctions, access panels
- Linings
29
Can you provide a brief overview of NRM3?
* Guidance for quantification and description of maintenance works for purpose of preparing initial order of cost estimates
* Rules aid procurement and cost control of maintenance works
* Now links to IPMS 1 and 2, and incorporates ICMS principles
Structure:
* Glossary
* General
* Measurement rules for building maintenance works
* Measurement rules for order of cost estimating
* Cost planning of R&M works
* Calculation of annualised costs for R&M works
* Elemental cost planning
* Group elements
* Appendices (functional units, discounting, info requirements, templates)
30
IPMS vs NRM
* IPMS is purely rules for how to do the measurements of buildings
* NRM references IPMS but has more of a QS perspective on how to provide cost documents (OCEs, Cost Plans, Pricing Documents)
31
What are the 4 categories of risk identified in NRM?
* Employer change
* Employer other (funding risks, policy / spending practices)
* Design development (items of work missed as design developed)
* Construction (site risk, contamination, obstruction)
32
Why is it important to measure the works according to industry standards and best practice?
* Greater consistency and accuracy of pricing
* Ensure all parties price on same basis, reduce risk of dispute
33
What are the levels mentioned in NRM?
NRM 2 section 2
- Level 0: project number
- Level 1: cost plan number
- Level 2: group element (facilitating works, substructure etc)
- Level 3: element (frame, upper floors)
- Level 4: sub-element (demolition works, soft strip)
- Level 5: component (user-defined building components / items)
34
What is the hierarchy between all these measurement standards?
- ICMS -> RICS Cost Prediction -> NRM (references IPMS)
35
Change control vs change management?
- Change control is the process that can lead to the alteration of the timescale, cost or scope of project
- Change management is the management of this control process, so these changes are effectively implemented
- Effective management strives to ensure the project will benefit from this change, or in the very least suffers minimal disruption.
36
What should the CA / EA do when making changes?
RICS Change Management
- Identify a reason
- Investigate the impacts of cost, time and location
- Strive to mitigate risks and maximise opportunities to achieve the project’s objectives
- Review and accept or reject the change
37
How can BIM help change processes in projects?
RICS Change management
- Requests for information can generate in integrated response
- Change requests can be supported by information within the model
- Fabrication drawings can be produced to support changes
- Risk management activities can be analysed
- BIM-based tools help cost scheduling, control and tracking of changes implemented
- Whoever is in charge of BIM can streamline products and investigate efficiencies
- Changes and quantities can be automatically updated
38
General procedure for change control within construction projects?
RICS Change management
- Employer agrees to scope
- CA / EA issues instruction / request for quotation
- Contractor reviews and submits cost
- CA accepts change / requests further substantiation
- If change not accepted, explore alternative / omit
39
Other types of risk (not NRM) stated in RICS Change Management document?
* Political and business
* Benefit
* Consequential
* Project
* Programme
40
What to consider when evaluating change?
RICS Change management
- Who is proposing the change and why
- Whether the outcome will result in a quicker programme, improved performance, or lower costs, or on the other end an extension of time and higher costs
- What steps need to be taken to mitigate any onerous consequences to keep the programme on schedule
- The associated risk and who is responsible
- What would happen if the change wasn’t made
- The contractual timescales and procedures
41
What information / documentation do you need to quantify a change?
* A formal instruction
* The legal basis for the change
* Prepare a discussion
* Substantiation of the quantities and rates
* Breakdown including labour, plant, materials, specialist fees, prelims, insurances to include in the cost report
* Drawings and specifications
* Photos
* Revised programme
* Status of the changes- whether they have been agreed
42
Basic principles of valuing a change?
RICS Valuing Change
- Additions / omissions from contracted works, valued by using rates/prices from valuation
- Consider any effects on preliminaries, risk allowances, design fees, overheads and profit etc.
- Where work is not identical/similar, use rates from other work in contract as basis to form new rate (with adjustments as necessary)
- Where above isn’t possible, calculate fair rate or price
- Last resort- value work on basis of time taken and resources used to complete (‘daywork’ valuation)
43
How to value change in Standard contract?
* Employer and Contractor agree the value of a Variation - part of rolling Final Account
* Quotations may be requested to be resubmitted
* If agreement isn’t reached, QS varies out valuation in accordance with ‘Valuation Rules’
44
How to value change in DB contract?
* Employer and contractor endeavour to agree value
* Where agreement has not been reached, valuation is made in accordance with Valuation Rules
* Unclear who undertakes valuation, probably at EA direction
45
Considerations when valuing change?
RICS Valuing Change
- Changes in character
- Changes in conditions
- Valuing preliminaries
- Dayworks
- General conditions
46
What are the 5 categories of instructions?
* Design / quality
* Clarifying information
* Changes in sequence
* Expenditure of sums (prov sums, PC sums)
* Works not in accordance with contract
47
Components of valuations?
* Works executed
* Changes
* Prov sums expenditure
* Materials
* Design fees
* Risk and % adjustments
* Any adjustments for bonds
48
Legislation regarding payment provisions?
HGCRA 1996
- stages / periodically
- Contracts must have payment mechanisms
- Parties can’t whithhold payment without effective notice
LDEDCA 2009
- Pay less notices within 5 days
- Pay-when-certified clauses can no longer be used to prevent paying a subcontractor the money they are due
- Payment notices - so if the client’s side doesn’t provide the correct documentation in time, the contractor will be due a default payment notice which the client must pay
- If the client doesn’t pay the monies due under the contract, the Contractor has a right to provide a notice and stop all or part of the construction works
49
How do you undertake a valuation?
RICS Interim Valuations
1. Planning - understand project, liaise with project team
2. Pre-valuation - look at contractor’s application
3. Valuation - fair assessment, ascertain and collect info
4. Valuation documents (collate, check)
5. Issue valuation
6. Post valuation (maintain records, photos)
50
Any case law regarding vesting materials?
Aluminium industrie vaassen v romalpa aluminium 1976 - seller cannot pass on better title they actuallly possess. Seller in possession of goods can pass title of goods with consent of owner.
Borden (UK) v Scottish Timber 1981 - right to goods lost when materials irretrevably mixed into other goods
Hendy Lennox v Grahame Puttick 1984 - Retention of title still effective for engine that can be unbolted
51
What to do if works not properly executed?
RICS Interim valuations
- Retention acts as safeguard
- CA can notify contractor to rectify
52
What do you think of ‘on account’ payments?
definition: payment for items where no instruction to date, but anticipated / instructed work where qty not capable of measurement / rate TBA
usually not permitted where no instruction
JCT standard forms allow contractor to confirm oral instructions - if not responded to written notice, this is written confirmation as instruction
need to be careful as the employer may end up losing money
53
Can you name some of the pricing documents we might use at tender stage?
* Bill of quantities (BoQ)
* Schedule of rates (SoR)
* Contract sum analysis (CSA)
* Schedule of work (SoW)
* Priced activity schedule
54
Why might a CSA make it difficult to agree post contract cost changes?
* Higher level breakdowns (usually elementally) so contractor substantiation is required to agree costs post contract
* More difficult to determine if an item has been costed for and how priced
55
How are obstructions dealt with on site? What package do you see them included?
* Usually as a prov sum
* Included in groundwork / earthwork contractor’s package (responsible for excavating foundations)
56
The client has requested to use a Standard form of building contract. Explain the different types of SBC available and what level of pricing document you would expect to use for each.
1. SBC with quantities, with approximate quantities, without quantities
2. Pricing document depends on size and complexities of the project, typically you would expect:
- With quants -> full BoQ prepared by PQS
- With approx -> BoQ used on re-measurable basis
- Without quants -> pricing schedule / BoQ may or may not have qty’s to be verified by tendering contractor
57
What information is required to measure preliminaries?
* Contract duration
* Location
* Type of project (new build vs refurb)
* Project size and area
* Security
* Methodology, programme
* Services
* Accommodation
* Sectional completion
* Contractor design work
* Insurances / bonds
58
What are contractor preliminaries?
* Items not allocated to specific element/sub-element/component but necessary for contractor to complete works
* May include management and staff, site establishment, temporary services, security, safety and environmental protection, insurances
59
Examples of contractor preliminaries which might be considered abnormal? (over and above a ‘standard’ project)
* Tower cranes
* Weekend / evening working
* Road/train line closures / traffic management
60
How would you price a contractor’s preliminaries?
* % construction cost supplemented by benchmarked data
* NRM 2 states it’s not possible for QS / Cost Manager to quantify main contractor’s prelims as it’s for them to interpret the information, so I wouldn’t dictate what they should include
* issue items in preliminary pricing schedule in tender in line with NRM 2
61
Are you aware of any recent / upcoming changes to measurement standard?
* Cost prediction (2020) and revised NRM documents in 2021 now incorporate international construction measurement standards (ICMS)
62
Advantages of using a method of measurement document in construction?
* Internationally recognised
* Consistency in tendering and pricing
* Easily identify what’s included/excluded
* Beneficial to agree post-contract variations
* Allows cost data to be comparable
63
What are first principles (with costing)?
* Splitting an item into labour, plant, materials, prelims, OH&P, design and risk
64
When have you used first principles to build up a rate?
Additional Partition, obtained material cost from supply, made allowance for small tools, labour required to lay 1sqm, added contractor’s OH&P, design, risk and prelims to give bottom line figure with estimate
65
Give an example where you agreed a variation?
- Checked contract whether equivalent rates could be extracted, whether there was anything to be omitted from the scope of works
- Queried with the contractor, obtained substantiation
- Notified EA/CA upon agreement, they gained client acceptance and issued instruction
66
Problems with market testing for cost data?
* Sometimes impacts long term relationships with suppliers if no jobs come about
* Sometimes individual suppliers provide different rates to domestic / commercial buyers
* Suppliers may not include install costs
67
Have you quantified something on site during a valuation?
* Each valuation I ascertain progress to date using floor plans / drawings to apportion / verify apt %
RICS APC QS
flashcards
Decks in class (20)
# Cards
-
Ethics, Rules of Conduct and Professionalism166
-
Client Care30
-
Communication & Negotiation34
-
H & S63
-
Accounting P & R48
-
Business Planning49
-
Conflict avoidance43
-
Data Management24
-
D I & T20
-
Inclusive Environments16
-
Sustainability47
-
Commercial Management51
-
Construction Tech211
-
Contract Practice102
-
Procurement and Tendering101
-
Project Finance127
-
Quantification and Costing67
-
Contract Admin34
-
Risk Management48
-
Rules of Conduct17
