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Additional resources for RICS New Rules of Measurement NRM Order of Cost Estimating and Elemental Cost Planning

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6 The main contractor’s preliminaries estimate is added to the building works estimate. 7 Allowance for subcontractors’ preliminaries is to be made in the unit rates applied to measured quantities. g. as part of a two stage tendering process), the actual agreed level of main contractor’s preliminaries is to be included in the cost plan. Any compensating adjustments are to be made to the applicable cost targets. 9 It is recommended that the allowance for main contractor’s preliminaries be treated as a separate cost target.

E. tender price indices (TPI), building cost indices or retail price indices (RPI)). Alternatively, the percentage addition can be derived from in-house sources of indices. 7 The construction inflation estimate is added to the cost limit (excluding inflation). e. adjusted to remove allowances included for construction inflation). 5 of these rules. g. China). However, it is recommended that such potential cost increases caused by tendering conditions and the effects of changes in the market be initially dealt with under risk allowances.

E. 3 The percentage addition to be applied for combined main contractor’s overheads and profit is to be derived from a properly considered assessment of main contractor’s overheads and profit found on previous building projects. e. e. e. e. e. e. 6 The percentages addition to be applied for main contractor’s overheads and main contractor’s profit are to be derived from a properly considered assessment of main contractor’s overheads and profit found on previous building projects. 7 The main contractor’s overheads and main contractor’s profit estimates are added to the combined total of the building works estimate and the main contractor’s preliminaries estimate.

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