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NRM2 vs SMM7

Presentation 9th April to Speller Metcalfe

Michael Davies

on 10 April 2015

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Transcript of NRM2 vs SMM7

RICS New Rules of Measurement 2
Presentation 9th April 2015 @ 11am by Michael Davies MRICS
Common NRM Themes
NRM2 vs SMM7 Headlines
NRM2 vs SMM7 Headlines
Partitions simplified- Measured in m2 as opposed to height categories.
Windows and doors simplified- Bedding and pointing frames no longer measured, reflecting common practice.
Drainage and services runs simplified- Composite items in NRM2 including trench, bed, surround, pipe, backfilling etc. Split foul and storm.
Manhole composite items- Reflecting common practice, individual items of benching, covers etc are no longer required.
BWIC M&E itemized- No more enumerated sundry items generally.
M&E revamped- Alternatives for a detailed or simplified measurement
NRM2 In Practice
NRM2 is part of the NRM initiative to further standardize cost advice and procurement.
NRM2 was best practice as of July 2013.
Differences from SMM7 are generally proportional and simplifications.
Changes are progressive and improve procurement documents.
JCT and Spons adopted which makes widespread adoption practical.
Contractors need to bring Sub-Contractors along to avoid issues.

Further Reading
Designing Buildings Wiki- http://www.designingbuildings.co.uk/wiki/Comparison_of_SMM7_with_NRM2

RICS NRM2- http://www.rics.org/uk/knowledge/professional-guidance/guidance-notes/rics-nrm-2-detailed-measurement-for-building-works-1st-edition/

JCT NRM2 update- http://www.jctltd.co.uk/docs/New%20Rules%20of%20Measurement%20Update%200812.pdf
Alternative Designs
Woodcock Experiences

Risk Ownership
Risk management is a key to a projects success and delivery
Risk identification at an early stage using NRM template in cost planning
Contingencies and design risks are included with tender sums
Managing contingency whilst the project is on site to control cost and time

Ownership & Continuity
PMP will retain continuity of staff on a scheme, staff will be work on the project from start to finish.
A Director / Associate will always be involved in the scheme
PMP will deliver an excellent service and follow best practice
PMP contributions to fully co-ordinated design
PMP will be involved through the entire design process and are an integral member of the team
Work alongside the design team to ensure full collaboration both at design stage and whilst on site
Feedback prior to tender stage on gaps and overlaps

Variations on site
Keeping control of cost whilst a project is on site is PMP’s main objective
Use of “Change Request” registers
Approval of Expenditure Forms

Projects Completed on Time
PMP collaborate closely with the design team and the contractor to monitor and ensure that a project completes on time.
Used to working on fast track projects as well as longer projects

Prompt Agreement of Final Account
Keeping a live forecast of final cost at all times
Working closely with the Contractor and Design Team
Use of Change request registers and Approval for expenditure forms
Keeping a tight rein on costs enables the Final Account to be finalised promptly at the end of a project.

Services over and above competitors
PMP work on all sizes of projects and do not concentrate on one particular band value
Directors and associates are always involved in the project with back up from Project Surveyors
You will not see a change in staff personnel as the project progresses
Vast experience in Higher education in a wide sector of projects, both new build and refurbishment
Used to working within restricted working constraints and to tight deadlines
PMP integrate into the project team and adjust to suit the various personalities.
Understanding what is important to our Clients
PMP strive to continually improve its service and have a culture of translating positive and negative experiences into future changes

Innovative and Sector-Leading
Extensive use of IT to be mobile and efficient
Utilising best practice such as NRM where others defer
Use of market leading take-off system – Causeway CATO
Traditional skills valued where others avoid development

'What did I miss?'
The RICS published the New Rules of Measurement 2009-2014 to bring a standardized and more holistic approach to cost planning and procurement.

NRM1 - Order of Cost Estimating and Cost Planning for Capital Building Works
NRM2- Detailed Measurement of Building Works, replaced SMM7 in July 2013.
NRM3- Order of Cost Estimating and Cost Planning Building Maintenance Works
Risks- Documenting the allocation of risks and attaching risk premiums. Adds clarity, minimizes dispute.
Overheads and profit- Specifically identified. Ring-fence OH&P, rather than spread. Progressive for Contractors.
Information requirements- Objective standard of the level required. Adds quality.
Extensive tabulated rules- Very clear on what is and is not measured. Simplified and proportional.
Trades renamed and reordered- eg. "D Groundwork" is now "5 Excavating and Filling"
Excavating and Filling simplified- Earthwork support, working space and compacting no longer measured unless specifically required.
In-situ concrete big change- Now split Mass, Horizontal, Sloping, Vertical, Sundry and Sprayed. Removes walls, beds, slabs etc.
Steelwork tweaks- Weight classifications changed to 25kg intervals, now required to erection also.
Stonework simplified- Simplified measurement to only m2 and columns/beams etc.
Best Practice- NRM2 should be used by default by RICS Members from July 2013, it is a RICS Guidance Note.
Contractual- JCT has an Amendment, issued August 2012, this should be implemented to crystallize differences.
Price Books- Spons 2014 & 2015 both NRM2.
Familiarity issues- Adoption of NRM2 does not seem to be widespread, this might be anecdotal. Contractors resistant in Builder's Quantities.
BIM-ready classifications- Standardisation makes integration simpler.

Common NRM Themes

NRM2 vs SMM7 Headlines

NRM2 In Practice


Further Reading
Full transcript