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New Rules of

Measurement (NRM)

Purpose of NRM
Provide a standard set of measurement rules that are
understandable by all those involved in a construction project,
including the employer
Improve communication between project / design team and
the employer
Provide effective and accurate cost advice to the employer
and project / design team
Provide rules for the order of cost estimates and elemental
cost plans
Describe and deal with costs and allowances forming part of
the costs of a building, but which are not reflected in the
measurable building work items, is also provided
Provide a structured basis for measuring building works and
other key components
Provide the essentials of good practice

Structure of NRM
Part 1: places the NRM for cost estimating and
elemental cost planning in context with the RIBA Plan
of Work and OGC Gateway Process
Part 2: describes the order and content of order of
cost estimate, its key constituents, explains how to
prepare an order of cost estimate and sets out the
rules of measurement
Part 3: describes the purpose elemental cost plans,
key constituents and how to prepare a cost plan
Part 4: comprises the tabulated rules of measurement
for the preparation of formal cost plans.

Sequence of Costings

Order of Cost Estimate


Formal Cost Plan 1
Formal Cost Plan 2
Formal Cost Plan 3
Pre-Tender Estimate

Order of Cost Estimating


Preparation of cost estimates
using :
a) Floor area method
b) Functional unit method
c) Elemental method

Order of Cost Estimating

Elemental Cost Planning


Purpose of elemental cost planning is to:
Ensure that employers are provided with value for
money;
Make employers and designers aware of the cost
consequences of their desires and/or proposals;
Provide advice to designers that enable them to arrive
at practical and balanced designs within budget;
Keep expenditure within the cost limit approved by the
employer; and
Provide robust cost information upon which the
employer can make informed decisions.

Elemental Cost Planning

Part 4: Rules of measurement for each of the following


group elements

Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group

element
element
element
element
element
element
element
element
element
element
element
element
element
element
element

1 : substructure
2 : Superstructure
3: Internal Finishes
4 : Fittings, furnishings and equipment
5: Services
6: Completed buildings and building units
7: Work to existing buildings
8 : External works
9: Facilitating works
10: Main contractors preliminaries
11: Main contractors overheads and profit
12: Project /design team fees
13: Other development / project costs
14: Risks
15: Inflation

Reporting Elemental Cost


Plans

Project title;
Project description;
Status of cost plan;
A statement of cost (including cost limit);
Details of the information and specification on which the cost plan was
prepared;
A statement of the floor areas;
The cost plan;
Basis of cost estimates(i.e. assumptions);
Estimate base date (i.e. to which inflation has been applied);
Reasons for changes to previous cost targets (explaining the transfers and
adjustments that have taken place against the previous cost plan);
Estimated costs of and a request for decisions on any alternative proposals;
Cash flow forecast, where appropriate; and
Inclusions and exclusions (i.e. statement of what is included in and excluded
from the order of cost estimate).