RICS’ cost measurement tool, the New Rules of Measurement 1 (NRM1), has been adopted by the Homes and Communities Agency (HCA) to help with collecting reliable cost data across its construction projects.
The suite of measurement tools was launched by RICS last year to enable the collection of consistent building costs and therefore provide clients with certainty when budgeting and comparing costs across projects. As a client, HCA has mandated for its use in all tenders because of this added certainty, demonstrating NRM1’s success in providing a level playing field for cost comparison.
Alan Muse, Director of Built Environment Professional groups at RICS commented:
“HCA’s decision to use NRM1 is a significant step in the development of cost management in the construction industry and is vital in achieving our aim of the toolkit being adopted across all construction tenders and projects in the UK. This endorsement is testament to the suite’s value in providing clients with consistent and transparent data when budgeting for projects.”
Alan Johnston, Team Leader, System and Analysis at the Homes and Communities Agency (HCA) added:
“By requiring our providers to record information on housing developments using NRM1 we are able to capture consistent and comparable data on costs. Through this data we can provide meaningful cost benchmarks for providers and also identify the effect that different construction and procurement practice has on costs. Our aim is to use this data to promote better practice to the wider social housing sector.”
By providing clients with increased certainty on a project’s cost, contractors can in turn become integral to a client’s team and therefore benefit directly by taking up NRM1.
Alan Muse continued:
“NRM1 is the first stage in the development of cost measurement in the construction industry, and we are continuing to work on expansion of the suite as well as supporting the industry in its adoption at a time when budgets are tight and providing cost assurance to clients is vital. In addition, NRM will provide the industry with the tools it needs to move towards a BIM enabled future by providing a reliable process for collection of consistent data.”