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UNDERGRADUATE DISSERTATION
School of the Built Environment
Evaluation of the Impact of the
New Rules of Measurement
Submitted in partial fulfilment of the
requirements for the degree of
Bachelor of Science (Hons) in
Quantity Surveying
By:
Thomas Stewart
094370528
Dissertation Supervisor: Mohamed Abdel-Wahab
April 2013
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Acknowledgments
I would like to convey my sincere thanks and gratitude to my dissertation supervisor, Mr
Mohamed Abdel-Wahab. Your advice, assistance and support throughout this study have
been remarkable and greatly appreciated. The participants of the interviews deserve special
thanks for their time, effort and contribution to this project. I would also like to thank my
family and friends for their love and especially my wife, Lorraine and my daughter, Amelie
for their understanding and support throughout my final year.
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Dissertation Declaration
I Thomas Stewart, confirm that this work submitted for assessment is my own and is
expressed in my own words. Any uses made within it of the works of other authors in any
form (e.g. ideas, equations, figures, text, tables and programmes) are properly acknowledged
at the point of their use. A full list of the references employed has been included.
Signed: …………………………………….
Thomas Stewart
Date: ……………………………………
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Abstract
As a result of the construction industry having been commonly characterised as being
fragmented, frequently stricken by crisis and conflict, with high levels of client
disappointment and dissatisfaction, the industry is continuing to go through major change,
driven by the government, regular-procuring clients and initiatives. The RICS has responded
by developing the New Rules of Measurement providing consistent, cradle to grave cost
advice for the construction project.
This dissertation examines the impact that these new rules have had on industry
professionals, organisations and professional bodies. The attitudes, opinions and experiences
of current practitioners have been collected through studying existing literature and by
interviews carried out with Quantity Surveyors of varying experience from contracting
organisations, consulting firms and council procurers.
The overall consensus for the moment is fairly limited as the NRM is still in the
implementation process by some, newly implemented by few and not implemented by most
in the profession as a result of the current financial crisis and lack of pressure form industry
and clients. There is also a long way to go with regards to implementing the new rules in
replacement of SMM7 with challenging attitudes and lack of guidance to blame.
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List of Acronyms
AECFM: Architectural, Engineering, Construction and Facilities Management
BCIS: Building Cost Information Service
BIM: Building Information Modelling
BOQ: Bill of Quantities
CBI: Confederation of British Industry
CIBSE: Chartered Institution of Building Services Engineers
CIOB: Chartered Institute of Building
NRM: New Rules of Measurement
POMI: Principles of Measurement International
QS: Quantity Surveyor
RICS: Royal Institute of Chartered Surveyors
SFCA: Standard Form of Cost Analysis
SMM: Standard Method of Measurement
UK: United Kingdom
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List of Appendices
Appendix 1: Interview Questions
Appendix 2: Sample Interview Narration (Interviewee 1)
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Table of Contents
Title Page
Acknowledgments
Dissertation Declaration
Abstract
List of Acronyms
List of Appendices
Table of Contents
Table of Contents
Chapter 1.0 Introduction
1.1 Background
1.2 Hypothesis
1.3 Aims and Objectives
1.4 Gap in Research
1.5 Chapter Descriptions
Chapter 2.0 Literature Review
2.1 Background
2.2 The End of the Standard Method of Measurement
2.3 The New Rules of Measurement
2.4 Rationale and Benefits of the New Rules
2.4.1 The International Appeal of the NRM
2.4.2 Consistency when Managing Costs
2.4.3 Cost Planning
2.4.4 Risk Management
2.4.5 Life Cycle Costing
2.5 Challenges Faced by the Introduction of the NRM
2.5.1 Opposing Attitudes towards the Introduction of the NRM
2.5.2 The BCIS and the NRM
2.5.3 BIM and the NRM
2.6 Summary
Chapter 3.0 Research Design and Methodology
3.1 Research Methods Available
3.2 Quantitative Research
3.3 Qualitative Research
3.4 Research Techniques
3.4.1 The Literature Review
3.4.2 Semi-Structured Interviews
3.4.3 Questionnaire
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3.5 Information Analysis
3.6 Summary
Chapter 4.0 Information Collection
4.1 Background
4.2 Interview Aim
4.3 The Participants
4.4 Interview Structure
4.5 Rational for Interview Questions
4.6 Interview Analysis
4.7 Summary
Chapter 5.0 Analysis
5.1 Background
5.2 Analysis of Research Strategies
5.2.1 Current Measurement and Cost Planning Techniques
5.2.2 The New Rules of Measurement and their Benefits
5.2.3 Challenges Surrounding Implementation
5.2.4 The Implementation Process
5.3 Summary
Chapter 6.0 Conclusions and Recommendations
6.1 Background
6.2 Hypothesis
6.3 Aims and Objectives
6.4 Conclusions
6.5 Recommendations
6.6 Further Research
6.7 Limitations
Chapter 7.0 References
7.0 References
Chapter 8.0 Appendices
8.1 Interview Questions
8.2 Sample Interview Narration (Interviewee 1)
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Chapter 1
1.0 Introduction
This chapter gives an overview of the dissertation providing the reader with an insight into
the research topic. The background states the context of the topic and why this would be of
interest to the construction industry and moreover the quantity surveying profession. The
aims and objectives of the dissertation are then documented followed by an overview of the
research structure.
1.1 Background
“The Architectural, Engineering, Construction and Facilities Management (AECFM) industry
is commonly characterised as being fragmented, frequently stricken by crisis and conflict,
with high levels of client disappointment and dissatisfaction.” (Sexton & Barrett 2003)
Thus the construction industry is continuing to go through major change that is being driven
by government, regular-procuring clients and initiatives. (Ashworth & Hogg 2007) These
changes have come about in response to the findings of industry based research (Lathom,
1994; Egan 1998) that have highlighted the inefficiencies in the traditional methods and
procedures used in the management and procurement of major projects.
It was with the results of such reports in mind that in 2003 the Royal Institute of Chartered
Surveyors (RICS) Quantity Surveying and Construction Professional Group commissioned a
report and steering committee that identified and developed common standards at each level
of the construction process. They concluded that estimating & cost planning, procurement
and maintenance & operation were main focuses that required unity throughout the industry.
(RICS Construction Faculty 2003)
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The RICS has responded by developing the New Rules of Measurement (NRM) which
provides cradle to grave cost advice for the construction project. The NRM is, “a suite of
documents that provide common rules with a consistent and universal approach to
measurement throughout the various stages of a project”. (Lee, et al.. 2011)
Stuart Earl, Chairman of the RICS Measurement Initiative and partner at Gleeds describes the
introduction of the NRM as “the most significant thing to happen in the industry in the last 25
years”. (Earl 2011)
1.2 Hypothesis
“Evaluation of the impact of the New Rules of Measurement.”
1.3 Aims & Objectives
The aim of this project is to investigate the impact the introduction of the New Rules of
Measurement has had on industry professionals, organisations and professional bodies.
The objectives of this project include the following:
i. To critically evaluate current methods of measurement versus the NRM, explore the
comparisons between them and highlight how the NRM addresses frailties of current
methods.
ii. To explore the views of the industry on the introduction of the NRM.
iii. To evaluate how organisations are implementing/planning to implement the
application of the NRM in replacement of previous procedures.
iv. To explore implications (if any) surrounding the implementation of the NRM.
v. To suggest ways to streamline the process of the implementation of the NRM to
organisations.
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1.4 Gap in Research
The New Rules of Measurement are still in the implementation process by some, newly
implemented by few and not implemented by many. Therefore there is still very little
information available on the subject. It is expected that this will change with its growing use
by practitioners in the near future as NRM1 and NRM2 are currently on the market and with
the release of NRM3 imminent, coinciding with the discontinuing of SMM7 in January 2013.
1.5 Chapter Descriptions
Chapter 1 - Introduction
This chapter includes the background to the research subject including justification for
undertaking this research and the reasons why the introduction of the NRM is so crucial to
the construction industry, and more specifically, the quantity surveying profession. It
includes the research aims, objectives and hypothesis on which the project is based upon and
gives an insight into the gap in research that surrounds this topic.
Chapter 2 - Literature Review
This chapter reviews all the relevant literature associated with the research subject. It
provides insight into present relevant data undertaken by other researchers on the NRM. The
topics covered include:
The End Of The Standard Method Of Measurement
The New Rules Of Measurement
Rationale And Benefits Of The New Rules
Challenges Faced By The Introduction Of The NRM
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Chapter 3 - Research Design & Methodology
This chapter will discuss the various research methods available to the author in order to
explore this topic. It represents the stages in the research study. It includes details of the
interview process and how primary and secondary sources were identified.
Chapter 4 - Information Collection
This chapter states the methods in which the author received the information from
professionals through the interviews. It outlines the questions in the interviews and the
significance of the questions allowing the author to compile a variety of opinions on the
subject. A review and breakdown of the results are also included.
Chapter 5 - Analysis & Findings
This chapter concludes the research and examines the findings from the literature review and
interviews.
Chapter 6 - Conclusions & Recommendations
This chapter contains the conclusions that the author has drawn after the research has been
carried out in relation to the aims and objectives stated previously. It will show a summary of
the work carried out and the problems encountered throughout the study. It states any
recommendations that the author can make to companies implementing the use of the NRM
in the future.
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Chapter 2
2.0 Literature Review
The overall aim of this literature review is to examine and evaluate the relevant previous
literature associated with the research subject. The literature review outlines the significance
of the introduction of The New Rules of Measurement and how it is impacting the
construction industry. The author aims to show how the NRM has/is/will be implemented
and will analyse the benefits of this introduction versus the problems being faced in industry
during the implementation process. The author will evaluate literature on the current cost
estimating tool, SMM7, so that reasons why the NRM came about can be drawn. Key
perceptions and theories surrounding the introduction of the NRM will be examined to show
the differing perceptions throughout the construction industry. This study is taken with a
view of providing a best practice approach to implementing the NRM into industry.
2.1 Background
Since 1922 the Standard Method of Measurement (SMM) has provided quantity surveyors
with rules of measurement for quantifying building works. SMM is specifically drafted to
advise quantity surveyors on how to measure building work items for inclusion in bills of
quantities, for the purpose of obtaining a tender price for a building project. Now in its
seventh and final edition, SMM7 will cease to be published in 2013 in favour of the NRM.
(Cartlidge 2011)
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In 2006 the RICS announced that it was to publish the NRM in three volumes;
Volume 1: Order of Cost Estimating and Cost Planning for Capital Building Works
Published in 2009 and then a new edition published in 2012 will become operative 1st
January 2013.
Volume 2: Detailed Measurement for Building Works
Published in 2012 will become operative 1st January 2013
Volume 3: Order of Cost Estimating & Cost Planning for Building Maintenance Works
Expected publication - Mid 2013
In replacing SMM, the NRM will “provide accurate and consistent cost advice to clients and
other project team members, as well as facilitating better cost control.” (RICS 2009)
2.2 The End of the Standard Method of Measurement
For 90 years SMM has been the industry model by which quantity surveyors measured and
priced building works. In 1988 the final revision of chapter seven, SMM7, was published
jointly between the RICS and Building Employers’ Confederation (BEC). However as these
rules were only specifically designed to advise how to measure building work items, as to
obtain a tender price for a project, there is no advice on cost estimating or cost plans.
Therefore quantity surveyors adopted the principles described by SMM to prepare them too,
resulting in an inconsistent approach.
“This lack of consistency makes it extremely difficult for clients and other project team
members to fully understand what is included in cost estimates, cost limits or cost targets
advised by the QS, often resulting in doubts about the cost advice given.”
(Benge 2009)
The RICS produced a report based on a survey of practicing consultants and contractors that
identified that measurement was still being used by all in the industry but in differing ways.
The consequences of this being that the Building Cost Information Service (BCIS) finding it
difficult to obtain accurate cost data from the industry. The report also found that there was
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an increase in the use of design and build procurement and therefore limiting the use of and
deeming SMM7 “out of date”. (RICS Construction Faculty 2003)
John Davidson FRICS, one of the lead authors of NRM2 states that as SMM7 “was seen as
coming to the end of its natural life,” and that, “the introduction of the NRM would improve
construction measurement as now risk, total project fees etc. would be included as well as
todays modern construction methods”. (Davidson 2012) Moreover it is now uneconomic for
QSs to spend unnecessary time measuring labours and minor extra overs which in NRM are
now “deemed included.” Opposed to NRM2, which is the replacement set of measurement
rules for building works, SMM7 is also criticised for not allowing the measurer to create
composite descriptions to make clear what or what is not to be included in the rate, prime
work and provisional work are vague, off-site components are not included and more.
“The method of measurement has always been viewed as a ‘living document’ in need of
review and updating to keep it relevant to current and future developments in the building
industry, and the introduction of the RICS New Rules of Measurement is part of this
continuing process.”
(Chalmers 2012)
2.3 The New Rules of Measurement
In 2003 the RICS set up a steering group to research the problems associated with the
measurement of building works at all stages of the design and construction process. The
main finding of the group was that the employer and design team members need confidence
in the quantity surveyor’s measurements and in the cost information that they provide. It was
therefore decided that a bespoke set of measurement rules were required for the preparation
of order of cost estimates and elemental cost plans. This will provide guidance to quantity
surveyors so that a common and consistent basis is used throughout the measurement process
and all constituents required in calculating cost limits, estimates and targets.
“The RICS new rules of measurement (NRM) are a suite of documents issued by the RICS
Quantity Surveying and Construction Professional Group. The rules have been written to
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provide a standard set of measurement rules that are understandable by anyone involved in a
construction project.”(RICS 2012)
“The rules provide essential guidance to all those involved in, as well as all those who wish to
be better informed about, the cost management of construction projects. Although the NRM
are principally based on UK practice, the requirements for a coordinated set of rules and
underlying philosophy behind each volume have worldwide application.” (RICS 2012)
As previously stated, the NRM is a suite of three documents that take a cradle-to-grave
approach to the procurement of construction projects including cost estimating, works and
post-contract procurement. The new rules not only cover the traditional costs in measuring
building works but also incorporate overheads, profits, inflation, consultant fees, land costs,
planning obligations, tax allowances and grants. (RICS 2009)
Volume 1: Order of Cost Estimating and Cost Planning for Capital Building Works
Volume 2: Detailed Measurement for Building Works
Volume 3: Order of Cost Estimating & Cost Planning for Building Maintenance Works
NRM 1: Order of Cost Estimating and Cost Planning for Capital Building Works
This volume provides guidance on the quantification of building works in order to prepare
cost estimates and plans. It also covers other items not covered in the measurable works from
preliminaries to fees to overheads and profits to name a few. “The cornerstone 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.”
(RICS 2012)
This volume was prepared considering that there has been a move away from bills of
quantities and now firms are more commonly employing design and build and management
strategies to procure building projects.
Volume 1 has also been structured to accommodate the elemental breakdown and coding
strategy of BIM and the BCIS SFCA to ensure continuity throughout the industry as “NRM1
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anticipates the widespread adoption of BIM” and wanted to make sure that “the BCIS SFCA
adopted exactly the same elemental breakdown and coding strategy designed for NRM1.”
(Benge 2012) These areas will be expanded on later in this chapter.
NRM 2: Detailed Measurement for Building Works
Volume two provides guidance on the detailed measurement and description of works to
obtain a tender price. Covered are, all aspects for preparing a bill of quantities and schedule
of rates including non-measurable work, contractor designed work, risk, structure and more.
“These rules will ensure all understand what is or isn’t included in a measured item of work
no matter where this has been measured, priced or executed.” (RICS 2012) NRM 2
simplifies and modernises the processes set out in SMM7 and allows the QS to measure areas
where most cost lies and consider modern construction methods. It also allows any QS to
measure any type of construction from any era. “NRM2 was drafted by a team of quantity
surveyors with input from various trade bodies and contractors to ensure the rules meet the
varying needs of the industry.” (Davidson 2012)
NRM 3: Order of Cost Estimating and Cost Planning for Building Maintenance Works
NRM 3 provides guidance on the quantification and description of maintenance works in
order to prepare initial cost estimates during the preparation stages, cost plans during design
development & pre-construction stages and asset-specific cost plans during the pre-
construction phase of the project. It also guides on the procurement and cost control of
maintenance works. It provides guidance on the measurement and calculation of value for
money, life cycle cost plans, maintenance plans, VAT and tax. (RICS 2012)
NRM3 follows the same framework as NRM1.
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2.4 Rationale and Benefits of the New Rules
The main drivers behind the introduction of the NRM are that:
• The industry required a set of measurement rules that are understandable by all
parties involved in a construction project. This includes the employer, design
team and contractors, thereby aiding communication between them.
• To be able to describe and direct on how to deal with cost allowances that are not
accounted for in the measurable building works.
• A more universal approach was now required, moving away from the UK centric
SMM7
(Cartlidge 2011)
Industry has applauded the introduction of the new rules and the obstacles that it will
overcome. David Bucknall, Chairman of the QS and Construction Professional Group Board
boasts, “We welcome the introduction of the NRM as, for the first time; there will be a direct
link throughout the cycle of a project, a strong, seamless, linked cost-control pathway through
all stages of the project from inception, viability and feasibility to detailed design, contract
documentation and construction, and finally through handover to operations.” (Bucknall
2012)
2.4.1 The International Appeal of the NRM
The NRM is essentially written to apply to the UK construction industry but it is recognised
that it has the potential to be applied on a global scale. The arrival of an internationally
adopted set of measurement rules would result in “a benchmark for best practice in
international construction cost management and an essential training and education aid.”
(Ong 2012) It would also result in more firms adding data to BIM and the BCIS databases,
optimising the effectiveness of these resources. Moreover it would provide a common and
consistent approach to measurement allowing knowledge share throughout the international
industry. In 2011 the RICS undertook a survey of its international members regarding the use
and benefits of the Principles of Measurement International (POMI) which is a simplified
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approach to the NRM and has similar principles. Responses from the survey were received
from 444 members in 62 countries. Relevant findings to the survey were that:
• 45% of respondents had used POMI;
• 74% believe that it was fit for purpose; and
• 79% felt that further guidance would be useful
(RICS 2011)
Therefore it would appear evident that a globalised and adapted set of rules would be
appreciated by the international members of the RICS. “Competitiveness and progress in
international construction is intractably linked to data analysis and collection, and the RICS is
uniquely positioned to set global standards for measurement using the NRM as a framework.”
(Ong 2012)
2.4.2 Consistency when Managing Costs
The NRM is a toolkit for cost management and fully allows the design team to manage total
project costs. The new rules provide guidance to the client and design team as to what cost
decision milestones should ideally be in place at each design stage. Cost planning and
estimating practices have not been re-defined; however the new rules have captured the
essence of effective practice and documented it into one common reference for the entire
industry. Stuart Earl, Chairman of the RICS Measurement Initiative confirms the status that,
“In these difficult economic times, where clients are working to ever-tightening budgets, it is
important that those involved with construction and maintenance projects look to improve the
consistency of the service they provide. Clients should also be able to feel confident in the
cost advice that they are given.” (Earl 2012) The NRM will provide the tool to bring this
consistency of accuracy to the construction industry.
2.4.3 Cost Planning
Previously, quantity surveyors have relied on the principles described in the SMM to prepare
cost plans and estimates. This has resulted in inconsistencies which the proper and consistent
use of the NRM can eliminate. The new rules aim to achieve this as it is recognised that cost
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planning is a progressive task and as design develops and details refine so must the cost plan.
The new rules provide a tabulated cost plan where each element is dissected and guidance
provided of what to/not to include at each stage. Below is an extract of the table format.
Also included for the first time is guidance on how to include ‘other costs’ which include
design team fees, project costs, risk allowances and inflation. This will allow the QS to
provide better cost advice and to achieve more effective cost control. “RICS New Rules of
Measurement will be instrumental in helping QSs to provide improved cost advice.” (Benge
2009)
2.4.4 Risk Management
The introduction of ‘risk management’ replacing the non-specific ‘contingencies’ is a feature
of NRM1 that has been neglected to a general percentage in the past. Risk management can
provide greater cost certainty when applied properly and also result in money and time
savings. David Benge, author of the NRM1 describes risk management as, “not a passive
activity and there is a cost associated with the up-front risk processes,” and that, “risk
responses cost money but failing to respond to risk through planned response activities will
mean the risks go unmanaged, the risk exposure will not change and the risk management
process will be ineffective.” (Benge 2011)
2.4.5 Life Cycle Costing
Andrew Green, Lead Technical Author for NRM3 and Director at Faithful and Gould states,
“In these austere times, owners and end users of property and estates are constantly seeking
to significantly reduce their operating and capital investment costs. To do this they need a
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way of efficiently managing and optimising the through life costs of their building and
retained estate.” (Green 2012)
When the final part of the suite of documents (NRM3) is complete, a set of rules will be in
place that completes the cost management lifecycle for the ‘cradle to grave’ cost data of a
building. In this financial climate, clients and end-users are looking more and more at
reducing operating and capital asset investment costs. The NRM allows them to manage and
optimise the through life costs of their buildings.
“The prime function of the NRM suite is to provide consistent rules and guidance for the
quantification and measurement of capital building works, and maintenance and renewal
works, based on a structured and integrated methodology for producing order of cost
estimates, cost plans and reports, throughout a buildings life cycle.” (Green 2012)
As previously stated, this has been an area that SMM7 has neglected. However, NRM 3
should therefore benefit the facilities management and maintenance industries by providing
users with a tool to compare costs on a like for like basis and to understand where money is
being spent by comparing details of the life cycle costs. There is also a common cost data
structure between the building elements to the relevant renewable and maintainable items,
which will allow for more coherent handover of O&M data and creating maintenance
databases. NRM3 will also be used as the format structure that the BCIS, CIBSE and HVCA
will adopt, aligning the industry in terms of cost estimating, cost planning, cost reporting and
benchmarking of maintenance works.
2.5 Challenges Faced by the Introduction of the NRM
The introduction of the New Rules of Measurement as with the introduction of any new
process or technology in the construction industry has been met with challenges. Challenges
in how the NRM will interact with current procedures and technologies, and more notably,
challenging attitudes of the professionals that are affected by its arrival. This has left an air
of ‘let’s see what happens’ amongst those who are monitoring how the new rules are
impacting the quantity surveying profession.
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“Over the coming years it will be interesting to learn to what extent the New Rules of
Measurement replaces the tried-and-trusted standard methods of measurement not only in the
UK but in the overseas market.” (Cartlidge 2011)
2.5.1 Opposing Attitudes towards the Introduction of the NRM
There have been many opposing attitudes towards the introduction of the NRM since the first
day that the RICS announced their intentions to bring about the suite of documents.
Conflictions that were made stronger as the RICS unveiled their intention to draft the NRM
without the input of other parties such as major contractors and the Construction
Confederation who had previously had input into the SMM document.
The strongest opposition therefore lay with the Construction Confederation as they had been
co-beneficiaries of the generous royalties gained from the success of the Standard Method of
Measurement over the years. This resulted in the Confederation issuing a legal challenge in
2009, claiming that, “the new measurement rules are based on information based on
information contained in the previous SMM editions and that there are consequently
copyright issues arising from the new publication.” (Cartlidge 2011) However this challenge
was short lived as the Construction Confederation was liquidised shortly after following the
decision of the Confederation of British Industry (CBI) to launch a new body called the
Construction Council who would now lobby on construction issues.
Other opposition lies with the attitudes and perceptions of the quantity surveying
practitioners, with a strong body stating that implementing the new rules, “will take
investment of time and money.” (Bucknall 2012) As a result there has been a cautious take
up of the new rules which David Bucknall, Chairman of the Construction Professional Group
Board hopes that this will change as, “an increasing number of clients are recognising the
benefits,” that the NRM can offer them, which could result in the doubters finding
themselves, “on the back foot when a client asks why you’re not up to speed with them.”
(Bucknall 2012) This motion is forwarded by the, “number of practitioners who have failed
to properly understand what the NRM suite is trying to achieve,” (Earl 2012) which in turn is
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affecting the number of clients, whom as yet, do not appreciate why they should be adopting
the rules.
2.5.2 The BCIS and the NRM
A major challenge for the new rules was, “how the BCIS would address the need for cost data
to be provided in a form that can be readily used for cost estimates and cost plans produced
using the new suite of documents”. (Byng 2009)
Therefore the structure of the NRM, “evolved from the elemental structure of the SFCA, so
elemental analyses can be used as a basis for the order of cost estimate and an elemental
analysis can be prepared from a contract sum analysis presented in accordance with the
NRM.” (BCIS 2009)
To achieve continuity with the NRM suite, the BCIS have introduced the new addition of its
Elemental Standard Form of Cost Analysis (SFCA) in order to achieve a standardisation of
cost analysis. This will allow more effective comparisons to be made between the costs of
achieving building functions against those of previously executed projects.
The two packages (NRM and SFCA) had to work together and consulted widely throughout
the industry in order to achieve this aforementioned continuity. The SFCA embodied the
new rules and the new elements that the NRM had been designed to accommodate.
2.5.3 BIM and the NRM
The NRM is an important tool in assisting the UK government with their construction
strategy with regards to their focus on cost certainty and minimising life cycle costs. Its BIM
(Building Information Modelling) strategy calls for whole life costs to be supplied through
the BIM and having “clear new rules of measurement for capital building and maintenance
works will be pivotal to enabling this to happen in all future public sector construction
procurement.” (Green 2012)
The NRM will have massive benefits where BIM is concerned. This will be most evident
throughout the use of NRM3: Order of cost estimating and cost planning for building
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maintenance works as NRM3 will “allow stakeholders to compare costs on a like for like
basis and to get into the detail of the life cycle costs to properly analyse and understand
where the money is being spent”. (Green 2012) There is also a common cost data structure
linking construction elements to maintainable items which will have an impact on how
buildings are handed over to be operated and maintained. This will form the foundations for
BIM in creating the maintenance databases for buildings.
“The relevance of the NRM within a BIM-enabled industry is particularly pertinent. BIM is
intended to address issues of process and data retention, bringing the collection of data to the
forefront of working. The NRM is inextricably linked to this; it enables a consistent
approach to Order of Cost Estimating and Cost Planning and the consistent collection of
construction cost and maintenance cost data.” (Smith 2012)
2.6 Summary
This chapter has reviewed, examined and evaluated the literature containing any relevant
information on the research subject. It has examined the significance of the introduction of
The New Rules of Measurement and how it is impacting the construction industry. The
benefits and challenges faced by the introduction of the NRM have also been evaluated. The
current cost estimating tool (SMM7) has been reviewed and the reasons why the NRM have
come about have been highlighted. Key perceptions and theories surrounding the
introduction of the NRM have also been examined to show the differing perceptions
throughout the construction industry.
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Chapter 3
3.0 Research Design & Methodology
The aim of this chapter is to outline why the author has selected this topic of study. The
research methodology aims to provide an explanation of how data was collected in order to
evaluate the impact that the New Rules of Measurement has had on the construction industry
and the professionals, organisations and professional bodies within. “Essentially research is
carried out in order to describe, explain and predict, with each of these reflecting a
progressively sophisticated function. Research on any subject aims to describe a process
which has previously been inaccessible or only vaguely understood.” (McQueen and Knussen
1999) The research methods used will be presented and an explanation why said approaches
were considered the most appropriate form of data collection within this investigatory field.
3.1 Research Methods Available
There are two research methodologies available to the author to underpin this research, which
are quantitative and qualitative research. “Quantitative data is more appropriate when
measuring variables, verifying existing theories or questioning them. The data would then be
used to generate new hypothesis based on collected results”. (Naoum 2006) Quantitative data
are also collected in accordance with research vehicles and underlying research questions.
The production of numbers is guided by the kinds of questions asked of the subjects, so is
essentially subjective, although it appears less so than qualitative research data. “Qualitative
research is carried out to understand meanings, look at, describe and understand experience,
ideas, beliefs and values, intangibles”. (Naoum 2006)
Therefore it will be a qualitative research study that shall be undertaken in order to evaluate
the impact the NRM has had on the selected subject matter.
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3.2 Quantitative Research
According to Cresswell 1994, “quantitative research is ‘objective’ in nature. It is defined as
an enquiry into a social or human problem, based on testing a hypothesis or a theory
composed of variables, measured with numbers, and analysed with statistical procedures, in
order to determine whether the hypothesis or the theory hold true.”
3.3 Qualitative Research
Qualitative research is described by (Naoum 2006) as, “subjective in nature. It emphasises
meanings, experiences (often verbally described), and descriptions and so on.” There are two
forms of qualitative research; exploratory and attitudinal. Exploratory research is the most
appropriate method for this area of research as it is used when, “diagnosing a situation,
screening alternatives and to discover new ideas.” (Zikmund 1997)
3.4 Research Techniques
In Chapter 2 the author reviewed, examined and evaluated the relevant previous literature
associated with the introduction of the NRM. In this chapter research techniques are used to
assess how the new rules are impacting the construction industry, how the NRM has/is/will
be implemented and how this is affecting the professionals, organisations and professional
bodies within the industry.
3.4.1 The Literature Review
The Literature Review is an integral aspect of this research study as it examines all the
relevant previous literature that other authors have produced associated with this subject. The
literature review was conducted using only secondary source material. This included many
forms of published works including books, journals, magazine articles and online databases.
As stated previously the New Rules of Measurement are still in the implementation process
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and as such there is still very little information available on the subject including primary
sources such as letters, diaries or memoirs. Therefore from this section all conclusions are
drawn from the secondary sources.
3.4.2 Semi-Structured Interviews
The author will conduct the interviews of six construction professionals, from varying
positions in differing firms and bodies that would be affected to varying degrees by the
introduction of the NRM. It was also important that the interviewees were not employed by
firms that had an influence or were involved with steering groups, or in the promotion of the
NRM to allow a more holistic view of how the NRM was actually impacting the construction
industry.
Therefore it was decided that the interview subjects would include;
2 x Contractors’ Quantity Surveyors,
2 x Consultancy Quantity Surveyors, and
2 x Council Quantity Surveyors.
This form of interview technique allowed the author, “a great deal of freedom to probe
various areas and to raise specific queries during the course of the interview.” (Naoum 2006)
The main aim of the interviews is to acquire specific information on, how organisations are
implementing or planning to implement the application of the NRM in replacement of
previous procedures, if at all. The interviews will also aim to gather information on how the
introduction of the rules will affect business operations and the challenges associated.
3.4.3 Questionnaire
Questionnaires are the most widely used source of data collection. This form of data
collection relies on closed questioning resulting in specific responses such as ‘yes’ or ‘no.’
(Naoum 2006) Therefore this form of data collection has not been utilised in this research
dissertation as it has specific limitations. The most notable limitation being that it is an
inflexible technique with no scope for clarity of answers which is vital to the topic.
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Respondents may not answer accurately, as the NRM is a topic that construction
professionals feel they should know about, they may answer in a way that enhances their
reputation or provide answers they believe the author wants to hear.
3.5 Information Analysis
As soon as it is collected, the information gathered from the interviews will be organised,
summarised and analysed, then implemented into the next chapter. “Analysis of information
is the process of cleaning, selecting, summarising, transforming and interpreting the data with
the goal of highlighting useful information, suggesting conclusions and supporting decision
making”. (HW SBE 2013)
3.6 Summary
This chapter dealt with the methods of study and data collection and their derivation from
primary and secondary sources. Also detailed was the approaches used by the author and the
conditions under that the investigations were undertaken. Interviews were used to establish
the degree of knowledge and implementation within the industry surrounding the introduction
of the NRM and provide an in depth understanding of the impacts. Once the information has
been evaluated the author will be able to determine the true impact of the NRM and hopefully
be able to provide recommendations to support the implementation the NRM.
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Chapter 4
4.0 Information Collection
4.1 Background
This chapter will present the structure and design of the research strategy and the analysis of
the results from the six interviews following the research methodology described in chapter 3.
4.2 Interview Aim
The main objective of the interviews is to obtain true data from those who are affected
directly by the introduction of the NRM. As the interview structure is flexible it allows the
direction of the interview to change depending on the answers given by each interviewee.
This allows the author to effectively gather information and analyse it in comparison with
each interviewee.
4.3 The Participants
The interview participants were carefully selected. All participants are members of the RICS,
work for different firms and have varying experience in quantity surveying practice. As
stated in chapter 3, it was also important that the interviewees were not employed by firms
that had an influence or were involved with steering groups, or in the promotion of the NRM
to allow a more holistic view of how the NRM was actually impacting the construction
industry.
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For confidentiality reasons the participants will be named as follows;
Interviewee 1: Director of a consultancy firm
Interviewee 2: Self-employed former partner of a major consultancy firm
Interviewee 3: Senior QS of a major UK contractor
Interviewee 4: Project QS of a major UK contractor
Interviewee 5: Principle QS of a local council authority
Interviewee 6: Graduate QS of a local council authority
4.4 Interview Structure
The interviews are flexible and semi-structured with the questions split into five sections.
Separating the questions into categories allows analysis of the objectives of each set of
question to take place more effectively. It also allows the interview to flow naturally
permitting the gathering of the necessary data. The interview sections include;
Section A: About the interviewee
Section B: Awareness of problems with current practice
Section C: New Rules of Measurement awareness
Section D: Opinion on the introduction so far/what needs to be done?
Section E: Personal views regarding the NRM
4.5 Rational for Interview Questions
Section A: About Interviewee
1. Can you tell me a bit about your career? Background? Role?
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The aim of this question was to find out basic information and the role of the
interviewee.
2. Can you tell me a bit about your current employer?
The aim of this question was to find out about the size and role of the company that
they currently work for.
3. Have you or your employer/previous employer, to your knowledge, been
involved with any NRM steering groups or NRM promotions?
To discover if the interviewee held any biases towards the NRM.
Section B: Awareness of Problems with Current Practice
1. There have been a lot of arguments about Quantity Surveyors not providing
sufficient client satisfaction. Do you agree with this statement?
The rational for this question was to discover if the interviewee believes there are
issues within the quantity surveying profession and if so what they are.
2. Do you believe there are frailties with current measurement techniques?
To discover if the interviewee believes there are issues surrounding the use of SMM7.
Section C: New Rules of Measurement Awareness
1. Are you familiar with the New Rules of Measurement? Have you been trained or
briefed on the NRM and its purpose?
To discover the interviewees level of familiarity with the research topic.
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2. Have you ever used the NRM and if so, to what degree?
The aim of this question was to find out if the interviewee had personally used the
NRM and for what.
3. The new rules not only cover the traditional costs in measuring building works
but also incorporate overheads, profits, inflation, consultant fees, land costs,
planning obligations, tax allowances and grants. What is your view on this?
The rational for this question was to discover the interviewee’s knowledge and views
on what the NRM provides for its users.
4. Are you aware of your firms’ stance on the NRM? Has/Is your company
currently implementing the use of the NRM? If yes, how? And to what degree? If
no, are you aware of any motion to do so?
The aim of this question was to discover the position of the interviewee’s current
employer regarding implementing the NRM.
5. Do you know any other/any firms who currently use NRM?
To discover if the interviewee had come across any other firms utilising the NRM.
Section D: Opinion on the Introduction so far/what needs to be done?
1. There is a view that there is a lack of guidance and available information
surrounding the NRM. What is your view on this statement?
The aim of this question was to discover if the interviewee believes more guidance
needs to be provided for NRM users.
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2. Do you believe RICS need to do more to effectively promote NRM?
To discover if the interviewee believes that the RICS need to do more to promote the
NRM.
3. Do you see/have you experienced any implications surrounding the
implementation of the NRM?
The rational for this question was to discover if the interviewee knew of any
implications that might arise or have been experienced when implementing the new
rules.
4. In your opinion what stops companies from using the NRM?
To discover if the interviewee knew of any reasons behind a firm not implementing
the NRM suite as yet.
5. Can you advise on methods or strategies to streamline the effective transition to
using NRM?
The aim of this question was to allow the interviewee to make suggestions to help
streamline any effective was to implement the new rules.
Section E: Personal Views Regarding the NRM
1. Do you consider the NRM to be a good substitute for traditional methods? Do
you believe that the NRM addresses the frailties experienced with traditional
methods in current cost estimation and planning practice?
To discover the interviewees personal views on the NRM replacing SMM7.
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2. Do you believe that the use of NRM will result in measurement & cost
consistency within the industry?
The aim of this question was to discover if the interviewee believes that the
introduction of the NRM will help bring consistency to the industry.
3. Are you willing to use the NRM instead of current cost estimating and planning
practices?
To discover if the interviewee was willing to make the transition to the new rules.
4. Do you think in the future that the use of the NRM will be widespread? If so,
when do you think this will be the case?
To discover if the interviewee believes that use of the NRM will become common
practice and when this will be the case.
4.6 INTERVIEW ANALYSIS
The following analysis will be presented in the sections detailed in paragraph 4.3. Key points
from the interviewee’s answers will be selected and analysed where relevant.
Section A: About Interviewee
The following two questions have been included to confirm that each participant was a
member of the RICS, working in the construction industry, were still carrying out quantity
surveying duties and therefore had a current knowledge of the most recent revelations to
practice.
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1. Can you tell me a bit about your career? Background? Role?
All six participants had varying backgrounds and roles. Each had worked in the
industry from between 6 years to 40 years. All confirmed that there main duties were
of a quantity surveying nature and that all were members of the RICS to differing
degrees.
2. Can you tell me a bit about your current employer?
Each interviewee worked for different firms. These included local councils, major
contractors and consultancy firms. All confirmed that they were involved in
construction projects on a daily basis.
3. Have you or your employer/previous employer, to your knowledge, been
involved with any NRM steering groups or NRM promotions?
All participants answered, “No.”
Therefore it was confirmed that all interviewees represented the data sample required as
stated previously.
Section B: Awareness of Problems with Current Practice
1. There have been a lot of arguments about Quantity Surveyors not providing
sufficient client satisfaction. Do you agree with this statement?
This question brought about similar answers from the interviewees, none of which
agree with the statement. Interviewee 2 stated that, “My experience does not back
that up, although there are always questions from some people about the role the QS
plays these days and how necessary they are”. He goes on to say that the role of the
QS is, “Crucial in my view, especially at the cost plan stage – an accurate cost plan
can mean the difference between a development happening and not”. Interviewee 1
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backs this up by stating, “The role of the QS is currently developing to give clients
exactly what they want.” Interviewees 1 and 6 forward this motion as both boast that,
“Clients are generally happy”. Interviewee 3, despite disagreeing with the statement,
did share views on how he can understand when clients may have experienced
dissatisfaction, highlighting that, “A contradiction to the contact sum,” would be the
most notably publicised reason.
2. Do you believe there are frailties with current measurement techniques?
All interviewees answered “No” to this question. However Interviewee 3 went on to
say that there may be some “issues with lacking descriptions,” provided by SMM7,
“as when pricing a BOQ, the contractor has no idea about, for example, site
conditions.”
Section C: New Rules of Measurement Awareness
1. Are you familiar with the New Rules of Measurement? Have you been trained
or briefed on the NRM and its purpose?
This question raised varying answers from the interviewees. Interviewee 1 stated that,
“I attended a one day RICS organised seminar about the NRM, held in Edinburgh
over a year ago.” “This was the last I heard about the introduction of the new rules.”
Interviewee 3 shared this motion that, “I am aware of the new rules and their purpose,
however the only briefing I have received has come in the form of newsletters and
self-study.” Interviewee 5 had the same stance. He was aware of the new rules and
their purpose but had no formal briefing or training. Interviewees 2, 4 and 6 had
heard of the NRM but have had no briefing of their purpose or the rationale behind
them. Interviewee 2 went on to ask, “Are the new rules of measurement not just an
updated version of SMM7?” This proved evidence of the degree of knowledge of the
interviewee surrounding the subject.
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2. Have you ever used the NRM and if so, to what degree?
All participants answered, “No”. Interviewee 1 did add that, “I do have the intention
of using the NRM on a project that I have to price in the near future and intend using
this as a pilot to future use but as yet, no, I haven’t used them so far.” “I am worried
about making mistakes or getting stuck and having to scrap everything and go back to
doing it the old way.”
3. The new rules not only cover the traditional costs in measuring building works
but also incorporate overheads, profits, inflation, consultant fees, land costs,
planning obligations, tax allowances and grants. What is your view on this?
All the interviewees did agree that these items would be beneficial. However some
doubts were evident as Interviewees 1, 2 and 4 shared the motion that these items are
already being covered by the quantity surveyor for clients. Interviewee 1 stated that,
“Not all clients want these elements included and have their own methods of
calculating them.” Interviewee 2 also forwarded this motion by adding, “Our own
development appraisals would always add these ‘extras’ in anyway and we would not
need or want a cost plan incorporating them.” Interviewee 4 believes that, “this may
become confusing for the client who only wants a price for construction.” On the
other hand, interviewees 3, 5 and 6 believed that this is a positive addition, with
interviewee 3 stating, “I look forward to putting this into practice.”
4. Are you aware of your firms’ stance on the NRM? Has/Is your company
currently implementing the use of the NRM? If yes, how? And to what degree?
If no, are you aware of any motion to do so?
Five of the subjects were unaware of their firms’ current stance on the new rules and
each was unaware if any plans to introduce the NRM were in place. Interviewee 5
also said that the council were, “unlikely to change at the moment”. However
interviewee 1 said, “Yes, we are ready, we have the technology, tools and the ability
to make the change but there is no client or industry pressure to do so.”
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5. Do you know any other/any firms who currently use NRM?
Again this question was answered, “No,” by five of the participants with interviewee
1 stating, “I have asked other quantity surveying professionals but nobody seems to be
using them as yet, it is worrying.” However, interviewee 5 was aware that, “CBA
have adopted the NRM for cost plans only but have not implemented their use for
measurement as yet.”
Section D: Opinion on the Introduction so far/what needs to be done?
1. There is a view that there is a lack of guidance and available information
surrounding the NRM. What is your view on this statement?
All six participants agreed with this statement. Interviewee 1, who seemed to be the
more willing to utilise the NRM went on to say, “I have looked but not seen any since
attending the introduction course over a year ago. I have bought the book but can’t
find a guide. As an FRICS member of the RICS it is disappointing that I have had no
correspondence, emails or articles surrounding the NRM.”
2. Do you believe RICS need to do more to effectively promote NRM?
Five interviewees answered, “Yes,” with two emphasising, “Definitely.” However
interviewee 2 refused to comment.
3. Do you see/have you experienced any implications surrounding the
implementation of the NRM?
As none of the subjects had experienced implementing the new rules the only answers
were of what they believed the implications might be in implementing the new rules
into their current environment. Each interviewee shared the same notion that the main
implications would be, “cost, training, no pressure from industry or clients and
adjustment of current practice.”
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4. In your opinion what stops companies from using the NRM?
It was noted here that the answers provided in the previous question could be the
same reasons that firms are not utilising the new rules as yet. However interviewee 1
also added that, “The huge recession may be the main reason that companies are not
willing to adapt at the moment and this may also be the reason behind the RICS
hitting the brakes with its introduction, if that is the case.”
5. Can you advise on methods or strategies to streamline the effective transition to
using NRM?
There were several suggestions from the participants, the most notable and repetitive
answers include;
“A guide for offices on the changes from SMM7,
A daily use, step by step, user guide, similar to what is available for SMM7,
Training academies and workshops run by the RICS,
Office visits by the RICS steering group, and
An in-house NRM specialist, trained in all aspects of the NRM”
Section E: Personal Views Regarding the NRM
1. Do you consider the NRM to be a good substitute for traditional methods? Do
you believe that the NRM addresses the frailties experienced with traditional
methods in current cost estimation and planning practice?
Five of the participants answered, “No,” to this question, with the main reason being
that they are, “Unaware of any problems with current practices.” However,
interviewee 3, despite also answering unsurely, believes that in the long term, “Yes,
the construction industry is changing, clients are becoming more conscious of how
their building is being built with relation to lifecycle and maintenance costs.”
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2. Do you believe that the use of NRM will result in measurement & cost
consistency within the industry?
Most of the participants were unsure if this will be the case with interviewee 5 stating
that, “quantity surveyors will continue to use the current practice methods and
previous experience.” Interviewee 1 also believes that, “throughout the years I have
been working in the industry, everybody has used the same tools. However each
person may use these tools in different ways from then next. I don’t see how another
tool (NRM) will result in consistency.”
3. Are you willing to use the NRM instead of current cost estimating and planning
practices?
The interviewees were split 50/50 with this question. Interviewees 1, 3 and 4 are all,
“willing to make the change,” to the NRM. Interviewee 1 added, “I always like to
adapt before my competitors and stay ahead where technology is concerned, so I
would be happy to adopt the change, as long as more information and guidance
becomes available before doing so.” While, interviewees 2, 5 and 6 are at the
moment, “happy to continue using tried, tested and trusted methods.”
4. Do you think in the future that the use of the NRM will be widespread? If so,
when do you think this will be the case?
Again, all participants were unsure with their answer to this question. However all
did agree that, “Yes, in time, as with other technologies including SMM7,” they could
see the NRM becoming widespread. There were points raised regarding the speed of
the widespread use including, “depending on the RICS future promotion of the
product,” and “how the NRM will interact with other technologies.” Interviewee 6
also added that, “I have recently graduated from University and I was never taught
how to use the NRM.” Therefore, “if the Universities are not teaching how to use it,
where will the learning begin?”
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4.7 SUMMARY
This chapter has contained the structure and design for the research strategies and the analysis
of the results from the interview process. It has allowed the author to gain accurate and
relevant results surrounding the introduction of the New Rules of Measurement and how they
have been perceived throughout industry. The next chapter will provide an overall analysis
of the information gained from the interview process which will allow the author to draw
research conclusion.
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Chapter 5
5.0 Analysis
5.1 Background
The research strategies have provided the author with the relevant information surrounding
the New Rules of Measurement. In this chapter the information gathered from the interview
process will now be analysed and compared to the findings of the literature review. A
summary of the data which highlights main trends and differences will be presented to allow
the author to come to reasonable conclusion. (Naoum 2006)
The structure of this chapter will follow that of the theme of the previous chapter to allow
analysis to determine the direction of the study.
Current Measurement and Cost Planning Techniques
The New Rules of Measurement and their Benefits
Challenges Surrounding Implementation
The Implementation Process
5.2 Analysis of Research Strategies
5.2.1 Current Measurement and Cost Planning Techniques
Change to current measurement practice has come about in response to industry based
research (Lathom, 1994; Egan 1998) which has highlighted inefficiencies in the traditional
methods and procedures used in the management and procurement of major projects. From
these results, the RICS concluded that estimating & cost planning, procurement and
maintenance & operation were main focuses that required unity throughout the industry.
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(RICS Construction Faculty 2003) These results cannot be debated, however there is a view
from industry that, “Clients are generally happy.” (Interviewees 1 & 6) This motion was
forwarded throughout the interviewees as all six agreed that, in their opinion, “quantity
surveyors do provide sufficient client satisfaction”.
SMM has been the industry model by which quantity surveyors measured and priced building
works for nearly 100 years. However these rules provide no advice on cost estimating or cost
plans resulting in quantity surveyors adopting the principles described by SMM to prepare
them too, resulting in an inconsistent approach, making it “extremely difficult for clients and
other project team members to fully understand what is included in cost estimates, often
resulting in doubts about the cost advice given.”(Benge 2009) This statement was backed up
by interviewee 3, who stated, “the construction industry is changing, clients are becoming
more conscious of how their building is being built with relation to lifecycle and maintenance
costs.”
SMM7 “was seen as coming to the end of its natural life” (Davidson 2012) and that the
introduction of the NRM would improve construction measurement. Despite the views from
the majority of the interviewees, that they are, “unaware of any problems with current
practices,” each agreed that the future lay with the NRM as the natural evolution of
measurement and cost planning practices. Therefore the replacement of SMM7 by the NRM
can be considered the next step within the ‘living document’ staying, “relevant to current and
future developments in the building industry.” (Chalmers 2012)
5.2.2 The New Rules of Measurement and their Benefits
As stated in the literature review and presented to the interviewees, “The NRM is a suite of
documents that take a cradle-to-grave approach to the procurement of construction projects
including cost estimating, works and post-contract procurement. The new rules not only
cover the traditional costs in measuring building works but also incorporate overheads,
profits, inflation, consultant fees, land costs, planning obligations, tax allowances and grants.
(RICS 2009) The literature review presented the shared opinion that this had been accepted
positively throughout the construction industry by many as it will be seen to provide guidance
to quantity surveyors so that a common and consistent basis is used throughout the
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measurement process and all constituents required in calculating cost limits, estimates and
targets, with interviewees 3, 5 and 6 all confirming this belief in the NRM suite.
However, the literature review, as with the interviews, presented that there is a sample of the
affected population who are unclear of the benefits as yet and are dubious of moving away
from what is believed by many to be ‘tried and trusted’ methods, including interviewee 2 who
added, “Our own development appraisals would always add these ‘extras’ in anyway and we
would not need or want a cost plan incorporating them.” Interviewee 1 also commented on
the proposed benefits of the new rules by arguing that, “Not all clients want these elements
included and have their own methods of calculating them.”
The literature review also presents the international appeal of the new rules and the benefits
that would be inherited on its adoption worldwide as it would result in more firms adding
data to BIM and the BCIS databases, optimising the effectiveness of these resources.
Moreover it would provide a common and consistent approach to measurement allowing
knowledge share throughout the international industry.
The main benefit of the NRM is that its uptake will provide the tool to bring this consistency
of accuracy to the construction industry by having a common reference for all. As stated in
the literature review, cost planning and estimating practices have not been re-defined;
however the new rules have captured the essence of effective practice and documented it into
one common reference for the entire industry. This element of the interview resulted in the
participants answering unsurely when questioned on the consistency that the new rules would
result in. None of the participants suggested that it would not be the case; however each was
dubious on how and how long it would take to achieve this desired consistency.
5.2.3 Challenges Surrounding Implementation
The literature review introduces the notion that, the introduction of the New Rules of
Measurement as with the introduction of any new process or technology in the construction
industry has been met with challenges. Challenges in how the NRM will interact with current
procedures and technologies, and more notably, challenging attitudes of the professionals that
are affected by its arrival.
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The most apparent challenge surrounding the introduction is the many opposing attitudes
towards the NRM since the first day that the RICS announced their intentions to bring about
the suite of documents. The interviewees concur with the literature review in the belief that
the main challenges surrounding the implementation of the NRM are the, “investment of time
and money,” as well as the, “lack of pressure from industry or clients and adjustment of
current practice.” For the moment this has resulted in a cautious take up of the new rules
which is hoped to change soon as, “an increasing number of clients are recognising the
benefits,” that the NRM can offer them. The interviewees also at times displayed some of the
negative attitudes, towards the introduction of the NRM, described in the literature review as
only half of the participants said that they would be, “willing to make the change,” to the
NRM, leaving interviewees 2, 5 and 6 are at the moment, “happy to continue using tried,
tested and trusted methods.”
5.2.4 The Implementation Process
As the NRM suite is a new topic and the suite is not fully published with the publication of
NRM3 imminent there is little knowledge of the implementation process for the new rules.
However it is vital to explore where organisations are with the process and how they are
planning to implement them.
As documented in chapter 4 it was only interviewee 1 who had received any basic training on
the NRM through, “a one day RICS organised seminar about the NRM.” The other
participants had no training and the only knowledge they had on the subject matter was self-
taught. Five of the six subjects were also unaware of their firms’ current stance on the new
rules and each was unaware if any plans to introduce the NRM were in place. Interviewee 5
also said that the council were, “unlikely to change at the moment”. However interviewee 1
said, “Yes, we are ready, we have the technology, tools and the ability to make the change
but there is no client or industry pressure to do so.”
These opinions strengthen the case that there is a lack of information surrounding the new
rules. Interviewee 1 who “always like to adapt before my competitors and stay ahead where
technology is concerned, so I would be happy to adopt the change, as long as more
information and guidance becomes available before doing so,” and goes on to say, “I have
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looked but not seen any information since attending the introduction course over a year ago.
I have bought the book but can’t find a guide. As an FRICS member of the RICS it is
disappointing that I have had no correspondence, emails or articles surrounding the NRM.”
This view was shared by the other participants whom all believed that there is a lack of
guidance with four of the six believing that the RICS needs to do more to effectively promote
the NRM.
The interview participants made suggestions on methods and strategies to help streamline the
effective transition to using the New Rules of Measurement;
“A guide for offices on the changes from SMM7,
A daily use, step by step, user guide, similar to what is available for SMM7,
Training academies and workshops run by the RICS,
Universities teaching pupils how to use the NRM,
Office visits by the RICS steering group, and
An in-house NRM specialist, trained in all aspects of the NRM.”
All the interviewees believe that the implementation of the new rules will become widespread
with all agreeing that this may happen in time but possibly not in the near future as
interviewee 1 states the, “huge recession may be the main reason that companies are not
willing to adapt at the moment.” As stated above it is also believed that more needs to be
done to educate industry to allow for this transition to take place. This education needs to be
negotiated in a way that focuses not only on the current practitioners as there is the belief that
the success of the NRM is directly dependant on the “RICS future promotion of the product
but also on the universities, as interviewee 6 concludes, “I have recently graduated from
University and I was never taught how to use the NRM.” Therefore, “if the Universities are
not teaching how to use it, where will the learning begin?”
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5.3 Summary
This chapter has outlined the main findings from the interview process and the literature
review while highlighting their significance. The author has analysed the information and
has allowed a conclusion to be drawn from this study.
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Chapter 6
6.0 Conclusion and Recommendations
6.1 Background
This chapter will provide the author’s conclusions to the study. It will review and outline the
author’s main elements of the study and examine if the aims and objectives of the
dissertation, set in Chapter 1, have been achieved. It will provide a summary of the author’s
works and highlight any difficulties encountered. It will also provide suggestions for further
research surrounding the evaluation of the impact of the New Rules of Measurement and
suggest ways to streamline the process of the implementation of the NRM to respective
organisations.
6.2 Hypothesis
“Evaluation of the impact of the New Rules of Measurement.”
The above hypothesis was set out and this is what the research dissertation is based upon.
The author believes that it has been carefully researched and thoroughly investigated.
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6.3 Aims and Objectives
The aim of this dissertation was to investigate the impact that the introduction of the New
Rules of Measurement has had on industry professionals, organisations and professional
bodies.
The author used the following objectives to achieve the aim of this study.
vi. To critically evaluate current methods of measurement versus the NRM, explore the
comparisons between them and highlight how the NRM addresses frailties of current
methods.
vii. To explore the views of the industry on the introduction of the NRM.
viii. To evaluate how organisations are implementing/planning to implement the
application of the NRM in replacement of previous procedures.
ix. To explore implications (if any) surrounding the implementation of the NRM.
x. To suggest ways to streamline the process of the implementation of the NRM to
organisations.
6.4 Conclusions
The research has been successful as it has provided the author with the necessary information
to come to the following conclusion.
i. To critically evaluate current methods of measurement versus the NRM, explore
the comparisons between them and highlight how the NRM addresses frailties of
current methods.
The above objective was met by analysing SMM7 and the NRM through gathering literature
information on both subjects and analysing it to determine the rationale behind the evolution
of the NRM and to explore how the NRM addresses the frailties of the SMM7. The key
findings were highlighted as follows;
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SMM7 provides quantity surveyors no advice on cost estimating or cost plans
resulting in an inconsistent approach. This makes it difficult for clients and other
industry professionals to fully understand what is included in cost the cost advice
given.
SMM7 was being used in differing ways by those in industry resulting in the BCIS
finding it difficult to obtain accurate cost data.
Opposed to SMM7, the NRM now includes scope to include not only cover the
traditional costs in measuring building works but to also incorporate overheads,
profits, inflation, consultant fees, land costs, planning obligations, tax allowances and
grants.
The NRM addresses a cradle-to-grave approach to the procurement of construction
projects including cost estimating, works and post-contract procurement.
The NRM is a set of measurement rules that are understandable by all parties involved
in a construction project. This includes the employer, design team and contractors.
The NRM offers a more universal approach, moving away from the UK centric
SMM7.
ii. To explore the views of the industry on the introduction of the NRM.
The above findings of the literature review were then tested against first-hand information.
The interviewees all agreed with the benefits provided by the NRM suite opposed to that of
SMM7. However there were some doubts as the participants were unaware of the existing
frailties of SMM7 and each believed that they incorporated these additions in the services that
they provided.
There were also negative views concurred throughout the interviews and the literature review
surrounding the implementation of the NRM. The literature highlighted the challenges that
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the NRM was experiencing and these attitudes were confirmed throughout the interview
process.
Therefore despite the positive welcome from industry for the NRM and the benefits that it
provides there are still uncertainties surrounding this new, un-tested approach to
measurement.
iii. To evaluate how organisations are implementing/planning to implement the
application of the NRM in replacement of previous procedures.
It was concluded that as the NRM suite is a new topic and the suite is not fully published with
the publication of NRM3 imminent there is little knowledge of the implementation process
for the new rules.
As such, none of the interviewee’s firms had implemented or were in the process of
implementing the NRM suite. Five of the interviewees were also generally unclear on how
the organisation they worked for were planning to implement the application. However one
participant, whose firm was ready to make the change, had not done so as yet as there is a
lack of demand to do so as yet.
iv. To explore implications (if any) surrounding the implementation of the NRM.
The implications surrounding the implication of the NRM were highlighted in the literature
review and interviews as;
Investment of time and money,
Lack of education and guidance surrounding the NRM,
Lack of pressure form industry and clients, and
The adjustment of current practice.
These implications have resulted in a cautious take up by industry for the moment. However
it is believed that this take up will accelerate in the future with the current economic recession
being named as one of the key factors behind the willingness of companies to adapt.
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v. To suggest ways to streamline the process of the implementation of the NRM to
organisations.
The suggested ways to improve the implementation process arose from a collation of the
interviewees own personal experience to date with the introduction of the NRM. The
methods and strategies suggested to streamline the implementation process of the NRM are;
A guide for offices on the changes from SMM7,
A daily use, step by step, user guide, similar to what is available for SMM7,
Training academies and workshops run by the RICS,
Universities teaching pupils how to use the NRM,
Office visits by the RICS steering group, and
An in-house NRM specialist, trained in all aspects of the NRM.
6.5 Recommendations
The author’s main recommendation to the RICS would be to educate organisations and
negotiate and consult with them on what they require in order to streamline the process of
implementation of the NRM. In section (5.5 Conclusions) the author has suggested methods
and strategies to help improve this process, ensuring an effective transition from SMM7 to
NRM.
The RICS could also do more to address the negative attitudes that are surrounding the
introduction of the NRM. It would be recommended that more marketing and emphasis
needs to be placed upon the benefits that the NRM offers its users and the industry as a
whole. The author believes that by turning around any negativity towards the new rules
within the quantity surveying profession will result in the speed of take up accelerating.
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6.6 Further Research
This dissertation focused on the current impact that the New Rules of Measurement has had
on industry professionals, organisations and professional bodies. This study has taken place
in a time of extreme financial uncertainty and as of yet the full NRM suite is unpublished,
with NRM3 which was expected to be published and in use by 1st January 2013, still at a
stage of ‘publication imminent’. Therefore it would be recommended that a similar study
could be carried out when the economy has recovered and there is more stability within the
construction market.
6.7 Limitations
The author has found a number of factors that did not allow analysis of the topic to be
broader. The NRM is still in the early stages of the implementation process and therefore
there is still very little practitioner knowledge and information available on the subject. It is
expected that this will change with its growing use in the near future as NRM1 and NRM2
are currently on the market and with the release of NRM3 imminent, coinciding with the
discontinuing of SMM7 in 2013.
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Chapter 7
7.0 References
Ashworth, A. Hogg, K (2007) Willis’s Practice and Procedure for the Quantity Surveyor.
12th
ed. Blackwell
BCIS (2009) The SFCA and the NRM
Benge, D (2009) The cornerstone of cost control. Student Construction Journal, 2009
Benge, D (2010) Positive cost management. Student Construction Journal, 2010
Benge, D (2011) Exemplary best practice. Construction Journal, February-March 2011
Benge, D (2012) Clear and simple. Construction Journal, April-May 2012
Benge, D (2012) Moving forward from SMM7. Construction Journal, April-May 2012
Byng, M (2009) New Rules of Measurement Road show – Introductory Seminar
Bucknall, D (2012) Seize the NRM opportunity. Construction Journal, April-May 2012
Cartlidge, D (2011) New Aspects of Quantity Surveying Practice.3rd
ed. Spons Press
Chalmers, D (2012) A centuries-old practice. Construction Journal, April-May 2012
Cresswell, J (1994) Research Design: Quantitative and Qualitative Approach. Sage
Davidson, J (2012) A core skill. Construction Journal, April-May 2012
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Earl, S (2011) New rules, new opportunities. Construction Journal, February-March 2011
Earl, S (2012) Managing costs consistently. Construction Journal, April-May 2012
Earl, S (2012) The RICS’ new rules of measurement. Building.co.uk, March 2012
Egan, J (1998) Rethinking Construction: Report of the Construction Task Force. London:
Department of Trade and Industry.
Egan, J (2002) Accelerating Change: A report by the Strategic Forum for Construction.
London:
Rethinking Construction.
Green, A (2012) A measure of success. Construction Journal, June-July 2012
Heriot-Watt School of the Built Environment (2013) Dissertation Workshops
Latham, M (1994) Constructing The Team, Final Report of the Government / Industry
Review of
Procurement and Contractual Arrangements in the UK Construction Industry. London:
HMSO.
Lee, S. Trench, W. Willis, A (2011) Willis’s Elements of Quantity Surveying. Wiley-
Blackwell
Martin, J (2012) Changing requirements. Construction Journal, April-May 2012
McQueen, R, A and Knussen, C (1999) Research Methods in Psychology, A Practical
Introduction. Prentice Hall Europe
Naoum, S, G (2006) Dissertation research and writing for construction students. Elsevier
Ong, S, L (2012) Competing in a global industry. Construction Journal, April-May 2012
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Peters, G (2012) Avoiding negligence claims. Construction Journal, April-May 2012
RICS Construction Faculty (2003) Measurement Initiative Steering Group
RICS (2011) Principles of Measurement (International) Survey Report
http://www.bcis.co.uk/downloads/RICS-POMISurvey2011Report.pdf (21.09.12)
RICS (2009) RICS New Rules of Measurement, Volume 1, Order of Cost Estimating and
Cost Planning for Capital Building Works, 2nd
ed. RICS Books
RICS (2012) RICS New Rules of Measurement, Volume 2, Detailed Measurement for
Building Works, 1st ed. RICS Books
Robson, C (2002) How to do a research project: A guide for undergraduate students.
Blackwell
Russell-Croucher, M (2012) Towards a standard assessment. Construction Journal, April-
May 2012
Sexton, M and Barrett, P. (2003) A literature synthesis of innovation in small construction
firms: Insights, ambiguities and questions, Construction Management and Economics, Vol.
21, pp. 613-622
Smith, A (2012) The NRM and Black Book Steering Group
Zikmund, W (1994) Case Study Research: Design and Methods. Sage
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Chapter 8
8.0 Appendices
8.1 Interview Questions
Section A: About Interviewee
4. Can you tell me a bit about your career? Background? Role?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
5. Can you tell me a bit about your current employer?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
6. Have you or your employer/previous employer, to your knowledge, been
involved with any NRM steering groups or NRM promotions?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Section B: Awareness of Problems with Current Practice
3. There have been a lot of arguments about Quantity Surveyors not providing
sufficient client satisfaction. Do you agree with this statement?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
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4. Do you believe there are frailties with current measurement techniques?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Section C: New Rules of Measurement Awareness
6. Are you familiar with the New Rules of Measurement? Have you been trained
or briefed on the NRM and its purpose?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
7. Have you ever used the NRM and if so, to what degree?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
8. The new rules not only cover the traditional costs in measuring building works
but also incorporate overheads, profits, inflation, consultant fees, land costs,
planning obligations, tax allowances and grants. What is your view on this?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
9. Are you aware of your firms’ stance on the NRM? Has/Is your company
currently implementing the use of the NRM? If yes, how? And to what degree?
If no, are you aware of any motion to do so?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
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10. Do you know any other/any firms who currently use NRM?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Section D: Opinion on the Introduction so far/what needs to be done?
6. There is a view that there is a lack of guidance and available information
surrounding the NRM. What is your view on this statement?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
7. Do you believe RICS need to do more to effectively promote NRM?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
8. Do you see/have you experienced any implications surrounding the
implementation of the NRM?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
9. In your opinion what stops companies from using the NRM?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
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10. Can you advise on methods or strategies to streamline the effective transition to
using NRM?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
Section E: Personal Views Regarding the NRM
5. Do you consider the NRM to be a good substitute for traditional methods? Do
you believe that the NRM addresses the frailties experienced with traditional
methods in current cost estimation and planning practice?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
6. Do you believe that the use of NRM will result in measurement & cost
consistency within the industry?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
7. Are you willing to use the NRM instead of current cost estimating and planning
practices?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
8. Do you think in the future that the use of the NRM will be widespread? If so,
when do you think this will be the case?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………
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8.2 Sample Interview Narration (Interviewee 1)
Date: 04/03/2013
Interviewee 1: Andrew McLeman FRICS RMaPS
Managing Director McLeman QS Network
Section A: About Interviewee
1. Can you tell me a bit about your career? Background? Role?
I have been working in the industry for nearly 40 years now. I began as an apprentice
QS on leaving school where I took my RICS professional exams. I worked for various
firms and was a partner for a major consultancy firm before starting my own QS
practice in 1999. I gained FRICS 1987.
2. Can you tell me a bit about your current employer?
Self-employed Managing Director of McLeman QS Network.
3. Have you or your employer/previous employer, to your knowledge, been
involved with any NRM steering groups or NRM promotions?
No
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Section B: Awareness of Problems with Current Practice
1. There have been a lot of arguments about Quantity Surveyors not providing
sufficient client satisfaction. Do you agree with this statement?
No. The role of the QS is currently developing to give clients exactly what they want.
Clients are generally happy with the service they have received. People in the
profession either underestimate or don’t understand what QS’s do, so no, I don’t agree
with this statement.
2. Do you believe there are frailties with current measurement techniques?
No.
Section C: New Rules of Measurement Awareness
1. Are you familiar with the New Rules of Measurement? Have you been trained
or briefed on the NRM and its purpose?
I attended a one day RICS organised seminar about the NRM in Edinburgh over a
year ago but this was the last I heard about the introduction of the new rules. I have
bought the books and even bought NRM1 twice now because it was revised before I
have even got the time to use it.
2. Have you ever used the NRM and if so, to what degree?
No. However I do have the intention of using the NRM on a project that I have to
price in the near future and intend using this as a pilot to future use but as yet, no, I
haven’t used them so far. I am worried about making mistakes or getting stuck and
having to scrap everything and go back to doing it the old way.
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3. The new rules not only cover the traditional costs in measuring building works
but also incorporate overheads, profits, inflation, consultant fees, land costs,
planning obligations, tax allowances and grants. What is your view on this?
These are things that we have always calculated for our clients, if they want them. Not
all clients want these elements included and have their own methods of calculating
them. Clients are aware of these things when they ask for a price. It could also just get
confusing for some clients.
4. Are you aware of your firms’ stance on the NRM? Has/Is your company
currently implementing the use of the NRM? If yes, how? And to what degree?
If no, are you aware of any motion to do so?
Yes, we are ready, we have the technology, tools and the ability to make the change
but there is no client or industry pressure to do so. I’m just waiting to get the go-
ahead.
5. Do you know any other/any firms who currently use NRM?
No. I have asked other quantity surveyors but nobody seems to be using them as yet,
it is worrying. I even asked two guys from ***** and they just shrugged their
shoulders.
Section D: Opinion on the Introduction so far/what needs to be done?
1. There is a view that there is a lack of guidance and available information
surrounding the NRM. What is your view on this statement?
I have looked but not seen any since attending the introduction course over a year ago.
I have bought the books but can’t find a guide. As an FRICS member of the RICS it
is disappointing that I have had no correspondence, emails or articles surrounding the
NRM.
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2. Do you believe RICS need to do more to effectively promote NRM?
Yes, definitely.
3. Do you see/have you experienced any implications surrounding the
implementation of the NRM?
I think that the obvious implications would be the cost of training a new technology,
especially for larger firms. As I said before there is no pressure from industry or
clients. Adjustment of current practice is a thought but I’m not really sure how much
things will change.
4. In your opinion what stops companies from using the NRM?
As I just said, cost. The huge recession may be the main reason that companies are not
willing to adapt at the moment and this may also be the reason behind the RICS
hitting the brakes with its introduction, if that is the case.
5. Can you advise on methods or strategies to streamline the effective transition to
using NRM?
A guide explaining the major differences from SMM7 would be the first thing, maybe
some training workshops. Basically just better communication on how the thing
works.
Section E: Personal Views Regarding the NRM
1. Do you consider the NRM to be a good substitute for traditional methods? Do
you believe that the NRM addresses the frailties experienced with traditional
methods in current cost estimation and planning practice?
Not really. I don’t understand what the frailties with SMM7 are.
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2. Do you believe that the use of NRM will result in measurement & cost
consistency within the industry?
I’m not sure. Throughout the years I have been working in the industry, everybody
has used the same tools. However each person may use these tools in different ways
from then next. I don’t see how another tool will result in consistency.
3. Are you willing to use the NRM instead of current cost estimating and planning
practices?
Yes I’m willing to make the change to the NRM. I always like to adapt before my
competitors and stay ahead where technology is concerned, so I would be happy to
adopt the change, as long as more information and guidance becomes available before
doing so.
4. Do you think in the future that the use of the NRM will be widespread? If so,
when do you think this will be the case?
Yes, I suppose in time, as with other technologies when SMM7 came on the scene
there were doubters but with time everybody used it. It depends on industry though
how quick this will happen.