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NRM1 Cost Management Handbook: The definitive guide to measurement and estimating using NRM1, written by the author of NRM1 [Pehme köide]

(Gleeds International Management & Construction Consultants, UK)
  • Formaat: Paperback / softback, 598 pages, kõrgus x laius: 246x174 mm, kaal: 1180 g, 179 Tables, black and white; 126 Illustrations, black and white
  • Ilmumisaeg: 13-Mar-2014
  • Kirjastus: Routledge
  • ISBN-10: 041572077X
  • ISBN-13: 9780415720779
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  • Formaat: Paperback / softback, 598 pages, kõrgus x laius: 246x174 mm, kaal: 1180 g, 179 Tables, black and white; 126 Illustrations, black and white
  • Ilmumisaeg: 13-Mar-2014
  • Kirjastus: Routledge
  • ISBN-10: 041572077X
  • ISBN-13: 9780415720779
The definitive guide to measurement and estimating using NRM1, written by the author of NRM1

The 'RICS New rules of measurement: Order of cost estimating and cost planning of capital building works' (referred to as NRM1) is the cornerstone of good cost management of capital building works projects - enabling more effective and accurate cost advice to be given to clients and other project team members, while facilitating better cost control.

The NRM1 Cost Management Handbook is the essential guide to how to successfully interpret and apply these rules, including explanations of how to:













quantify building works and prepare order of cost estimates and cost plans







use the rules as a toolkit for risk management and procurement







analyse actual costs for the purpose of collecting benchmark data and preparing cost analyses







capture historical cost data for future order of cost estimates and elemental cost plans







employ the rules to aid communication







manage the complete 'cost management cycle'







use the elemental breakdown and cost structures, together with the coding system developed for NRM1, to effectively integrate cost management with Building Information Modelling (BIM).









In the NRM1 Cost Management Handbook, David Benge explains in clear terms how NRM1 is meant to be used in familiar quantity surveying tasks, as well as a range of activities of crucial importance for professionals in years to come. Worked examples, flow charts, diagrams, templates and check lists ensure readers of all levels will become confident and competent in the use of NRM1. This book is essential reading for anyone working with NRM1, and is the most authoritative guide to practice available for those preparing to join the industry.
List of figures xvi
List of tables xix
List of examples xx
Foreword xxv
Sean Tompkins
Foreword xxvii
Richard Steer
Foreword xxix
Stuart Earl
Preface xxxi
Acknowledgements xxxvii
About the author xxxix
Abbreviations xli
Part 1 Introduction
1 Cost management
3(14)
Introduction
3(1)
1.1 What is cost management?
3(1)
1.2 Basic principles of cost management
4(1)
1.3 Why is cost management important?
4(1)
1.4 Objectives of cost management
5(1)
1.5 Responsibility for cost management
5(1)
1.6 The role of the cost manager
5(1)
1.7 The cost management cycle (the Benge Cycle)
6(1)
1.8 Relationship of the documents that comprise the RICS suite of new measurement rules
6(4)
1.9 NRM 1 and building information modelling (BIM)
10(1)
1.10 Benefits of the rules
11(6)
2 Cost estimating and cost planning
17(14)
Introduction
17(1)
2.1 Cost estimates and cost plans
17(1)
2.2 Process models for managing and designing building projects
18(1)
2.3 An overview of the cost-estimating and cost-planning stages
19(2)
2.4 Impact of procurement and contract strategies on cost planning
21(7)
2.5 Review and approval process
28(3)
Part 2 Order of cost estimates
3 Order of cost estimates - an overview
31(4)
Introduction
31(1)
3.1 Purpose of an order of cost estimate
31(1)
3.2 Types of order of cost estimate
32(1)
3.3 When is an order of cost estimate prepared?
33(2)
4 Commencing an order of cost estimate
35(18)
Introduction
35(1)
4.1 Planning an order of cost estimate
35(2)
4.2 Order of cost estimate framework
37(3)
4.3 Methods of measurement
40(5)
4.4 Elemental method (or elemental estimate)
45(4)
4.5 Information requirements at order of cost estimating stage
49(4)
5 Preparing an order of cost estimate
53(10)
Introduction
53(1)
5.1 Steps to preparing an order of cost estimate
53(6)
5.2 Composition of an order of cost estimate
59(1)
5.3 Checklist for order of cost estimates
59(4)
6 Computing the works cost estimate
63(14)
Introduction
63(1)
6.1 Computing the works cost estimate
63(1)
6.2 Estimating the cost of building works (estimate 1A)
63(12)
6.3 Estimating the cost of main contractor's preliminaries (estimate 1B)
75(1)
6.4 Estimating the cost of main contractor's overheads and profit (estimate 1C)
76(1)
6.5 Compilation of the works cost estimate (estimate 1)
76(1)
7 Order of cost estimate - a worked example
77(22)
Introduction
77(1)
7.1 Information gathering
77(8)
7.2 Development of a work breakdown structure
85(3)
7.3 Cost manager's assumptions and data gathered
88(2)
7.4 Generation of quantities for order of cost estimate
90(1)
7.5 Computing the order of cost estimate
91(5)
7.6 Presenting the order of cost estimate
96(3)
8 Preparation of an initial elemental cost model - using the elemental method of estimating
99(28)
Introduction
99(1)
8.1 The elemental method of estimating
99(2)
8.2 Steps to preparing an initial elemental cost model
101(2)
8.3 Elemental breakdown for building works
103(1)
8.4 Measurement of building elements
104(1)
8.5 Production of the building works estimate (estimate 1A)
105(1)
8.6 Calculation of element unit quantities
105(19)
8.7 Calculating elemental cost targets and the building works estimate
124(1)
8.8 Computing the works cost estimate
125(2)
9 Initial elemental cost model - a worked example
127(10)
Introduction
127(1)
9.1 Basis of elemental cost model
127(1)
9.2 Assumptions and data gathered
128(1)
9.3 Generation of element unit quantities
128(1)
9.4 Compiling an initial elemental cost model
128(4)
9.5 Presenting the initial elemental cost model
132(5)
Part 3 Cost planning
10 Cost planning - an overview
137(16)
Introduction
137(1)
10.1 What is the purpose of cost planning?
137(1)
10.2 Cost plans
138(2)
10.3 Information requirements
140(13)
11 Format, structure and codification of cost plans
153(10)
Introduction
153(1)
11.1 Hierarchy of elements and components
153(1)
11.2 Cost plan framework
154(3)
11.3 Codification of cost plans
157(6)
12 Preparing a cost plan
163(10)
Introduction
163(1)
12.1 Steps to preparing a cost plan
163(3)
12.2 Composition of a cost plan
166(1)
12.3 Checklist for cost plan
167(6)
13 Quantification and the use of the tabulated rules of measurement for cost planning
173(14)
Introduction
173(1)
13.1 General approach to measuring building works
173(2)
13.2 Use of the tabulated rules for building works
175(1)
13.3 Use of the tabulated rules for other group elements
176(1)
13.4 Use of the tabulated rules for risks
176(1)
13.5 Degree of measurement
176(2)
13.6 Measurement notation
178(4)
13.7 Quantifying and describing components for cost plans
182(2)
13.8 Curved work
184(1)
13.9 Work to and within existing buildings
184(1)
13.10 Work not covered by the rules
185(1)
13.11 Inadequate design information
185(1)
13.12 Information required by the cost manager
185(2)
14 Facilitating works (group element 0)
187(14)
Introduction
187(1)
14.1 Method of measurement
187(1)
14.2 Toxic/hazardous material removal (element 0.1)
187(5)
14.3 Major demolition works (element 0.2)
192(1)
14.4 Temporary support to adjacent structures (element 0.3)
193(2)
14.5 Specialist groundworks (element 0.4)
195(2)
14.6 Temporary diversion works (element 0.5)
197(1)
14.7 Extraordinary site investigation works (element 0.6)
198(3)
15 Substructure (group element 1)
201(30)
Introduction
201(1)
15.1 Method of measurement
201(1)
15.2 Risks associated with substructure works
202(1)
15.3 Substructures (element 1.1)
203(1)
15.4 Standard foundations (sub-element 1.1.1)
204(2)
15.5 Specialist foundations (sub-element 1.1.2)
206(10)
15.6 Lowest floor construction (sub-element 1.1.3)
216(2)
15.7 Basement excavation (sub-element 1.1.4)
218(6)
15.8 Basement retaining walls (sub-element 1.1.5)
224(7)
16 Superstructure (group element 2)
231(42)
Introduction
231(1)
16.1 Method of measurement
231(1)
16.2 Frame (element 2.1)
231(10)
16.3 Upper floors (element 2.2)
241(6)
16.4 Roof (element 2.3)
247(7)
16.5 Stairs and ramps (element 2.4)
254(3)
16.6 External walls (element 2.5)
257(7)
16.7 Windows and external doors (element 2.6)
264(3)
16.8 Internal walls and partitions (element 2.7)
267(3)
16.9 Internal doors (element 2.8)
270(3)
17 Internal finishes (group element 3)
273(10)
Introduction
273(1)
17.1 Method of measurement
273(1)
17.2 Wall finishes (element 3.1)
274(1)
17.3 Floor finishes (element 3.2)
274(4)
17.4 Ceiling finishes (element 3.3)
278(5)
18 Fittings, furniture and equipment (group element 4)
283(8)
Introduction
283(1)
18.1 Method of measurement
283(1)
18.2 Fittings, furnishings and equipment (element 4.1)
283(8)
19 Services (group element 5)
291(44)
Introduction
291(1)
19.1 Method of measurement
291(2)
19.2 Sanitary installations (element 5.1)
293(2)
19.3 Services equipment (element 5.2)
295(1)
19.4 Disposal installations (element 5.3)
295(6)
19.5 Water installations (element 5.4)
301(3)
19.6 Heat source (element 5.5)
304(1)
19.7 Space heating and air conditioning (element 5.6)
305(3)
19.8 Ventilation (element 5.7)
308(2)
19.9 Electrical installations (element 5.8)
310(7)
19.10 Fuel installations (element 5.9)
317(1)
19.11 Lift and conveyor installations (element 5.10)
318(6)
19.12 Fire and lightning protection (element 5.11)
324(2)
19.13 Communication, security and control systems (element 5.12)
326(3)
19.14 Specialist installations (element 5.13)
329(3)
19.15 Builder's work in connection with services (element 5.14)
332(3)
20 Prefabricated buildings and building units (group element 6)
335(6)
Introduction
335(1)
20.1 Method of measurement
335(1)
20.2 Complete buildings (sub-element 6.1.1)
336(1)
20.3 Building units (sub-element 6.1.2)
337(1)
20.4 Pods (sub-element 6.1.3)
338(3)
21 Work to existing buildings (group element 7)
341(14)
Introduction
341(1)
21.1 Method of measurement
341(1)
21.2 Minor demolition works and alteration works (element 7.1)
342(3)
21.3 Repairs to existing services (element 7.2)
345(2)
21.4 Damp-proof courses/fungus and beetle eradication (element 7.3)
347(2)
21.5 Facade retention (element 7.4)
349(1)
21.6 Cleaning existing surfaces (element 7.5)
350(1)
21.7 Renovation works (element 7.6)
350(5)
22 External works (group element 8)
355(44)
Introduction
355(1)
22.1 Method of measurement
355(1)
22.2 Site preparation works (element 8.1)
356(4)
22.3 Roads, paths, pavings and surfacings (element 8.2)
360(3)
22.4 Soft landscaping, planting and irrigation systems (element 8.3)
363(5)
22.5 Fencing, railings and walls (element 8.4)
368(4)
22.6 External fixtures (element 8.5)
372(1)
22.7 External drainage (element 8.6)
373(6)
22.8 External services (element 8.7)
379(14)
22.9 Minor building works and ancillary buildings (element 8.8)
393(6)
23 Deriving unit rates for building components, sub-elements and elements
399(24)
Introduction
399(1)
23.1 Hierarchical structure of cost data
399(1)
23.2 Sources of building cost data
400(1)
23.3 Factors affecting cost data
401(1)
23.4 Pitfalls of using cost analysis and benchmark analysis
402(1)
23.5 Determining the cost per m2 of gross internal floor area for building works
403(9)
23.6 Storey height
412(1)
23.7 Determining functional unit rates for building works
412(1)
23.8 Estimating element unit rates (EURs)
412(6)
23.9 Estimating unit rates for components
418(5)
24 Calculating the building works estimate
423(4)
Introduction
423(1)
24.1 Composition of the building works estimate
423(1)
24.2 Determining the building works estimate
424(3)
25 Main contractor's preliminaries (group element 9)
427(14)
Introduction
427(1)
25.1 What are preliminaries?
427(1)
25.2 Estimation of preliminaries costs
428(1)
25.3 Main contractor's preliminaries costs
429(3)
25.4 Subcontractors' preliminaries costs
432(1)
25.5 Estimation of main contractor's preliminaries costs
432(9)
26 Main contractor's overheads and profit (group element 10)
441(4)
Introduction
441(1)
26.1 Main contractor's overheads and profit
441(1)
26.2 Subcontractors' overheads and profit
441(1)
26.3 Estimation of main contractor's overheads and profit
442(3)
27 Calculating the works cost estimate
445(6)
Introduction
445(1)
27.1 Composition of the works cost estimate
445(1)
27.2 Determining the works cost estimate
445(6)
Part 4 Estimating cost targets for non-building works items and risk allowances
28 Project and design team fees (group element 11)
451(16)
Introduction
451(1)
28.1 Project and design team fees
452(1)
28.2 Estimation of consultants' fees (element 11.1)
452(6)
28.3 Estimation of main contractor's pre-construction fee (element 11.2)
458(3)
28.4 Estimation of main contractor's design fees (element 11.3)
461(3)
28.5 Subcontractors' design fees
464(1)
28.6 Establishing the cost target for project and design team fees
464(3)
29 Other development and project costs (group element 12)
467(6)
Introduction
467(1)
29.1 What are other development and project costs?
468(2)
29.2 Communication
470(1)
29.3 Estimation of other development and project costs
471(2)
30 Setting and managing risk allowances (group element 13)
473(32)
Introduction
473(1)
30.1 Risk management
474(1)
30.2 Principles of risk management
474(1)
30.3 Risk management and NRM 1
475(1)
30.4 Risk management of building projects
476(2)
30.5 Application of risk management to building projects
478(1)
30.6 What is a risk allowance?
478(2)
30.7 Formal risk analysis
480(5)
30.8 Qualitative risk assessment
485(1)
30.9 Quantitative risk assessment
486(2)
30.10 Methods of quantifying the risk allowance
488(8)
30.11 Risk response and risk allocation
496(3)
30.12 Setting and controlling the risk allowance (estimate 4)
499(6)
31 Estimating the possible effects of inflation (group element 14)
505(10)
Introduction
505(1)
31.1 What is inflation?
506(1)
31.2 Estimating the effects of inflation on a building project
507(1)
31.3 Estimating the cost of tender inflation (estimate 5A)
508(2)
31.4 Estimating the cost of construction inflation (estimate 5B)
510(1)
31.5 Producing the inflation estimate (estimate 5)
511(1)
31.6 Estimating inflation for multiple time periods
512(3)
32 Establishing the cost limit
515(4)
Introduction
515(1)
32.1 What is the purpose of the cost limit?
515(1)
32.2 Determining the cost limit
516(3)
33 Taxes and incentives
519(10)
Introduction
519(1)
33.1 Value added tax
519(3)
33.2 Capital and incentive allowances
522(2)
33.3 Grants
524(5)
Part 5 Writing cost estimate and cost plan reports
34 Reporting of cost estimates and cost plans
529(30)
Introduction
529(1)
34.1 What is the purpose of a cost estimate or cost plan report?
529(2)
34.2 Basic rules for writing cost estimate or cost plan reports
531(1)
34.3 Characteristics of a good cost estimate or cost plan report
532(1)
34.4 Organising the content of a cost estimate or cost plan report
532(1)
34.5 Structure and content of cost estimate and cost plan reports
533(22)
34.6 Communicating the cost estimate or cost plan
555(4)
Part 6 Designing pricing documents using NRM 1
35 Pricing documents
559(20)
Introduction
559(1)
35.1 Using the NRM 1 cost plan framework as a pricing document
559(1)
35.2 Contract sum analysis
560(19)
Part 7 Analysing bids and collecting data using NRM 1
36 Analysing bids and collecting cost data
579(6)
Introduction
579(1)
36.1 Changing contract strategies
579(2)
36.2 Framework for collecting cost data
581(1)
36.3 Analysing bids and collecting cost data
582(1)
36.4 Benchmarking
582(3)
Bibliography 585(2)
Index 587
David P. Benge is a Fellow of the Royal Institution of Chartered Surveyors (RICS) with over 30 years experience as a quantity surveyor and educator. As Head of Quality Management at Gleeds, international management and construction consultants, David focuses on service improvement for all aspects of quantity surveying and project management activities with a worldwide remit. Through Gleeds, he provides quality consulting services and training on the use and application of the NRM suite of measurement rules. David authored both the first and second editions of NRM1 for the RICS and was co-author and executive technical editor on both NRM2 and NRM3.