Measuring Works Properly: The New Rules of Measurement

by | Jul 16, 2012 | Contract Administration and Major Works

When an owner asks three contractors to price the same job and receives three prices that cannot be compared, the problem is often not the contractors. It is the tender documents. If the quantities are unclear, each contractor guesses, and the differences surface later as variations and disputes. That is why the way building work is measured matters to clients, not only to quantity surveyors.

What changed

In April 2012 RICS published NRM2, the detailed measurement rules for building works, which forms part of its New Rules of Measurement suite. It was due to take effect from 1 January 2013 and would in time replace the long established Standard Method of Measurement, seventh edition. It sets out how work should be measured and described when bills of quantities and similar tender documents are prepared.

Why it helps clients

  • Like for like tenders. When every contractor prices the same measured items, prices can be compared fairly.
  • Clearer risk. NRM2 encourages risks to be identified and set out, rather than hidden in contingencies or the contractor’s margin.
  • Easier valuation of change. Measured rates give a basis for valuing variations and interim payments.
  • Consistency. NRM2 is designed to work alongside the earlier NRM1 on cost estimating, so a cost plan can lead on to tender documents.

When measurement is worth it

Not every job needs a full bill of quantities. A small repair may be well served by a clear specification and drawings. But for major works to a block of flats, a refurbishment of several units or a project with a lot of repetitive work, a measured approach usually repays its cost in tighter tenders and a smoother final account.

Practical points

  1. Decide early how the work will be tendered, as this shapes the documents needed.
  2. Include provisional sums only where something truly cannot yet be defined, and describe them properly.
  3. Keep the measured document consistent with the drawings and specification.
  4. Use the same structure to value changes during the works.

Our Major Works and Contract Administration services prepare tender documents and run tenders. See how we prepared a cost plan for a listed conversion.