1374756763 Stewart, T. Stewart T Dissertation 2013

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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

http://www.google.co.uk/url?sa=i&rct=j&q=HERIOT+WATT+UNIVERSITY+LOGO&source=images&cd=&cad=rja&docid=ZbN-AahKxfh3AM&tbnid=o1OiKfW90EMlhM:&ved=0CAUQjRw&url=http://www.realuniguide.com/university/heriot-watt-university/&ei=zxJkUdvkAuWa0QWhwYAY&psig=AFQjCNHhtZonJSUIDEcEgov8LA1X6_GJvQ&ust=1365599266152371


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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


6.4 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.


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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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.


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.



All participants answered, “No.”

Therefore it was confirmed that all interviewees represented the data sample required as

stated previously.




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.


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.”


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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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.”




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.”


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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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.”




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.”


Five interviewees answered, “Yes,” with two emphasising, “Definitely.” However

interviewee 2 refused to comment.



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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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.”


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”





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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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.”


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.”



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,



Universities teaching pupils how to use the NRM,


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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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


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


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,



Universities teaching pupils how to use the NRM,


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


http://www.bcis.co.uk/downloads/RICS-POMISurvey2011Report.pdf

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Chapter 8

8.0 Appendices

8.1 Interview Questions



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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



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.


Self-employed Managing Director of McLeman QS Network.



No


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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.


No.




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.


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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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.




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.


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.




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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Yes, definitely.



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.


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.


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.





Not really. I don’t understand what the frailties with SMM7 are.


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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.


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.



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.


Documents

1374756763 Stewart, T. Stewart T Dissertation 2013