UNDERGRADUATE DISSERTATIONSchool 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 1|Page 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. 2|Page 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: …………………………………… 3|Page 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. driven by the government. with high levels of client disappointment and dissatisfaction. organisations and professional bodies. frequently stricken by crisis and conflict. 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.Abstract As a result of the construction industry having been commonly characterised as being fragmented. This dissertation examines the impact that these new rules have had on industry professionals. cradle to grave cost advice for the construction project. The RICS has responded by developing the New Rules of Measurement providing consistent. regular-procuring clients and initiatives. 4|Page . The overall consensus for the moment is fairly limited as the NRM is still in the implementation process by some. The attitudes. consulting firms and council procurers. the industry is continuing to go through major change. 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. 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 5|Page .List of Acronyms AECFM: Architectural. List of Appendices Appendix 1: Interview Questions Appendix 2: Sample Interview Narration (Interviewee 1) 6|Page . 0 Introduction 1.3 BIM and the NRM 2.1 The Literature Review 3.4.3 Aims and Objectives 1.1 Research Methods Available 3.4.4 Rationale and Benefits of the New Rules 2.4.5.4.4 Risk Management 2.5 Life Cycle Costing 2.1 Background 2.4.2 Hypothesis 1.2 The BCIS and the NRM 2.2 Semi-Structured Interviews 3.4.4.2 The End of the Standard Method of Measurement 2.1 Background 1.3 Cost Planning 2.5.Table of Contents Title Page Acknowledgments Dissertation Declaration Abstract List of Acronyms List of Appendices Table of Contents i ii iii iv v vi vii Table of Contents Chapter 1.3 Questionnaire 1 1 2 2 3 3 5 5 6 7 10 10 11 11 12 12 13 14 15 15 16 17 17 18 18 18 18 19 19 20 20 7|Page .4 Research Techniques 3.5 Chapter Descriptions Chapter 2.6 Summary Chapter 3.0 Literature Review 2.3 The New Rules of Measurement 2.2 Consistency when Managing Costs 2.1 Opposing Attitudes towards the Introduction of the NRM 2.1 The International Appeal of the NRM 2.5.5 Challenges Faced by the Introduction of the NRM 2.4 Gap in Research 1.0 Research Design and Methodology 3.4.2 Quantitative Research 3.3 Qualitative Research 3. 6 Summary Chapter 4.5 Rational for Interview Questions 4.0 Analysis 5.7 Limitations 40 40 40 41 41 44 45 45 Chapter 7.3 The Participants 4.2 Sample Interview Narration (Interviewee 1) 8|Page .2.4 Interview Structure 4.0 References 46 46 Chapter 8.3 Summary 34 34 34 34 35 36 37 39 Chapter 6.2.3.6 Interview Analysis 4.2.1 Background 5.1 Background 6.2 The New Rules of Measurement and their Benefits 5.0 References 8.2.4 Conclusions 6.1 Current Measurement and Cost Planning Techniques 5.0 Conclusions and Recommendations 6.1 Background 4.2 Analysis of Research Strategies 5.4 The Implementation Process 5.3 Aims and Objectives 6.0 Information Collection 4.1 Interview Questions 8.6 Further Research 6.2 Interview Aim 4.2 Hypothesis 6.7 Summary 21 21 21 21 22 22 26 33 Chapter 5.3 Challenges Surrounding Implementation 5.0 Appendices 49 49 53 7.5 Recommendations 6.5 Information Analysis 3. 1 Background “The Architectural. procurement and maintenance & operation were main focuses that required unity throughout the industry. (Ashworth & Hogg 2007) These changes have come about in response to the findings of industry based research (Lathom. The aims and objectives of the dissertation are then documented followed by an overview of the research structure.Chapter 1 1. 1994. They concluded that estimating & cost planning. Egan 1998) that have highlighted the inefficiencies in the traditional methods and procedures used in the management and procurement of major projects. frequently stricken by crisis and conflict. regular-procuring clients and initiatives. 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. Engineering. 1. 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.” (Sexton & Barrett 2003) Thus the construction industry is continuing to go through major change that is being driven by government.0 Introduction This chapter gives an overview of the dissertation providing the reader with an insight into the research topic. (RICS Construction Faculty 2003) 9|Page . Construction and Facilities Management (AECFM) industry is commonly characterised as being fragmented. with high levels of client disappointment and dissatisfaction. The objectives of this project include the following: i. To suggest ways to streamline the process of the implementation of the NRM to organisations. 2011) Stuart Earl. “a suite of documents that provide common rules with a consistent and universal approach to measurement throughout the various stages of a project”.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. To critically evaluate current methods of measurement versus the NRM.The RICS has responded by developing the New Rules of Measurement (NRM) which provides cradle to grave cost advice for the construction project. iv. explore the comparisons between them and highlight how the NRM addresses frailties of current methods. To evaluate how organisations are implementing/planning to implement the application of the NRM in replacement of previous procedures.2 Hypothesis “Evaluation of the impact of the New Rules of Measurement. v. To explore implications (if any) surrounding the implementation of the NRM. et al. The NRM is. iii. organisations and professional bodies. (Earl 2011) 1. 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”.” 1. To explore the views of the industry on the introduction of the NRM. (Lee. 10 | P a g e .. ii. coinciding with the discontinuing of SMM7 in January 2013. the quantity surveying profession. It provides insight into present relevant data undertaken by other researchers on the NRM. Therefore there is still very little information available on the subject.1. 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 11 | P a g e . objectives and hypothesis on which the project is based upon and gives an insight into the gap in research that surrounds this topic. 1. 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. Chapter 2 .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.5 Chapter Descriptions Chapter 1 . and more specifically.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. It includes the research aims.Literature Review This chapter reviews all the relevant literature associated with the research subject. It includes details of the interview process and how primary and secondary sources were identified.Information Collection This chapter states the methods in which the author received the information from professionals through the interviews.Chapter 3 .Analysis & Findings This chapter concludes the research and examines the findings from the literature review and interviews. It states any recommendations that the author can make to companies implementing the use of the NRM in the future. It represents the stages in the research study.Research Design & Methodology This chapter will discuss the various research methods available to the author in order to explore this topic. 12 | P a g e .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. A review and breakdown of the results are also included. Chapter 5 . 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. Chapter 6 . It will show a summary of the work carried out and the problems encountered throughout the study. Chapter 4 . Chapter 2 2. The author will evaluate literature on the current cost estimating tool. 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. This study is taken with a view of providing a best practice approach to implementing the NRM into industry. (Cartlidge 2011) 13 | P a g e . The literature review outlines the significance of the introduction of The New Rules of Measurement and how it is impacting the construction industry. SMM7 will cease to be published in 2013 in favour of the NRM.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 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.1 Background Since 1922 the Standard Method of Measurement (SMM) has provided quantity surveyors with rules of measurement for quantifying building works. 2. Key perceptions and theories surrounding the introduction of the NRM will be examined to show the differing perceptions throughout the construction industry. so that reasons why the NRM came about can be drawn. In 1988 the final revision of chapter seven. the NRM will “provide accurate and consistent cost advice to clients and other project team members. 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. SMM7. The consequences of this being that the Building Cost Information Service (BCIS) finding it difficult to obtain accurate cost data from the industry.Mid 2013 In replacing SMM.” (RICS 2009) 2. However as these rules were only specifically designed to advise how to measure building work items. The report also found that there was 14 | P a g e . there is no advice on cost estimating or cost plans. often resulting in doubts about the cost advice given. 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 .” (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. was published jointly between the RICS and Building Employers’ Confederation (BEC). resulting in an inconsistent approach. as to obtain a tender price for a project.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. “This lack of consistency makes it extremely difficult for clients and other project team members to fully understand what is included in cost estimates. Therefore quantity surveyors adopted the principles described by SMM to prepare them too. cost limits or cost targets advised by the QS. as well as facilitating better cost control.In 2006 the RICS announced that it was to publish the NRM in three volumes. off-site components are not included and more. one of the lead authors of NRM2 states that as SMM7 “was seen as coming to the end of its natural life. which is the replacement set of measurement rules for building works.an increase in the use of design and build procurement and therefore limiting the use of and deeming SMM7 “out of date”. estimates and targets. 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. “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. would be included as well as todays modern construction methods”. The rules have been written to 15 | P a g e .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. total project fees etc. and the introduction of the RICS New Rules of Measurement is part of this continuing process. “The RICS new rules of measurement (NRM) are a suite of documents issued by the RICS Quantity Surveying and Construction Professional Group.” (Chalmers 2012) 2. 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. 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. 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. (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.” and that.” Opposed to NRM2. prime work and provisional work are vague. (RICS Construction Faculty 2003) John Davidson FRICS. “the introduction of the NRM would improve construction measurement as now risk. profits. the cost management of construction projects. The new rules not only cover the traditional costs in measuring building works but also incorporate overheads. consultant fees.” (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. the requirements for a coordinated set of rules and underlying philosophy behind each volume have worldwide application. as well as facilitating better cost control. as well as all those who wish to be better informed about. land costs.provide a standard set of measurement rules that are understandable by anyone involved in a construction project. “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. planning obligations. inflation.” (RICS 2012) As previously stated. (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. tax allowances and grants. 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 16 | P a g e . It also covers other items not covered in the measurable works from preliminaries to fees to overheads and profits to name a few. works and post-contract procurement.”(RICS 2012) “The rules provide essential guidance to all those involved in. Although the NRM are principally based on UK practice. the NRM is a suite of three documents that take a cradle-to-grave approach to the procurement of construction projects including cost estimating. It provides guidance on the measurement and calculation of value for money. NRM 2: Detailed Measurement for Building Works Volume two provides guidance on the detailed measurement and description of works to obtain a tender price.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.” (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.” (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. structure and more. VAT and tax.” (Benge 2012) These areas will be expanded on later in this chapter. Covered are. risk. life cycle cost plans. all aspects for preparing a bill of quantities and schedule of rates including non-measurable work. “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. (RICS 2012) NRM3 follows the same framework as NRM1. priced or executed. maintenance plans. contractor designed work. “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. 17 | P a g e . It also allows any QS to measure any type of construction from any era. It also guides on the procurement and cost control of maintenance works. cost plans during design development & pre-construction stages and asset-specific cost plans during the preconstruction phase of the project. and finally through handover to operations.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. there will be a direct link throughout the cycle of a project. seamless. thereby aiding communication between them. for the first time. design team and contractors. “We welcome the introduction of the NRM as. viability and feasibility to detailed design. • To be able to describe and direct on how to deal with cost allowances that are not accounted for in the measurable building works.” (Ong 2012) It would also result in more firms adding data to BIM and the BCIS databases. a strong. Chairman of the QS and Construction Professional Group Board boasts. contract documentation and construction. • A more universal approach was now required. linked cost-control pathway through all stages of the project from inception. This includes the employer.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.” (Bucknall 2012) 2. David Bucknall. optimising the effectiveness of these resources. 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.4.2. 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 18 | P a g e . 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. quantity surveyors have relied on the principles described in the SMM to prepare cost plans and estimates.4.” (Earl 2012) The NRM will provide the tool to bring this consistency of accuracy to the construction industry. Responses from the survey were received from 444 members in 62 countries. Chairman of the RICS Measurement Initiative confirms the status that.approach to the NRM and has similar principles. 2. Clients should also be able to feel confident in the cost advice that they are given. • 74% believe that it was fit for purpose. Cost planning and estimating practices have not been re-defined. Stuart Earl. it is important that those involved with construction and maintenance projects look to improve the consistency of the service they provide. 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. This has resulted in inconsistencies which the proper and consistent use of the NRM can eliminate. and the RICS is uniquely positioned to set global standards for measurement using the NRM as a framework. “In these difficult economic times.2 Consistency when Managing Costs The NRM is a toolkit for cost management and fully allows the design team to manage total project costs. Relevant findings to the survey were that: • 45% of respondents had used POMI. however the new rules have captured the essence of effective practice and documented it into one common reference for the entire industry. “Competitiveness and progress in international construction is intractably linked to data analysis and collection. The new rules aim to achieve this as it is recognised that cost 19 | P a g e . where clients are working to ever-tightening budgets.4.” (Ong 2012) 2.3 Cost Planning Previously. 4. Below is an extract of the table format.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.5 Life Cycle Costing Andrew Green. risk allowances and inflation. This will allow the QS to provide better cost advice and to achieve more effective cost control. 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.planning is a progressive task and as design develops and details refine so must the cost plan.” (Benge 2011) 2.” and that. “In these austere times. David Benge. “not a passive activity and there is a cost associated with the up-front risk processes. To do this they need a 20 | P a g e .4. “risk responses cost money but failing to respond to risk through planned response activities will mean the risks go unmanaged.” (Benge 2009) 2. author of the NRM1 describes risk management as. “RICS New Rules of Measurement will be instrumental in helping QSs to provide improved cost advice. owners and end users of property and estates are constantly seeking to significantly reduce their operating and capital investment costs. the risk exposure will not change and the risk management process will be ineffective. project costs. Lead Technical Author for NRM3 and Director at Faithful and Gould states. Risk management can provide greater cost certainty when applied properly and also result in money and time savings. Also included for the first time is guidance on how to include ‘other costs’ which include design team fees. and maintenance and renewal works. In this financial climate. The NRM allows them to manage and optimise the through life costs of their buildings. 2. and more notably. “The prime function of the NRM suite is to provide consistent rules and guidance for the quantification and measurement of capital building works. a set of rules will be in place that completes the cost management lifecycle for the ‘cradle to grave’ cost data of a building. 21 | P a g e . clients and end-users are looking more and more at reducing operating and capital asset investment costs. based on a structured and integrated methodology for producing order of cost estimates. There is also a common cost data structure between the building elements to the relevant renewable and maintainable items. challenging attitudes of the professionals that are affected by its arrival. cost plans and reports. 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. cost reporting and benchmarking of maintenance works. throughout a buildings life cycle.way of efficiently managing and optimising the through life costs of their building and retained estate. aligning the industry in terms of cost estimating. NRM3 will also be used as the format structure that the BCIS. which will allow for more coherent handover of O&M data and creating maintenance databases. this has been an area that SMM7 has neglected.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. cost planning.” (Green 2012) As previously stated. However. CIBSE and HVCA will adopt. Challenges in how the NRM will interact with current procedures and technologies. 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.” (Green 2012) When the final part of the suite of documents (NRM3) is complete. ” that the NRM can offer them.” (Bucknall 2012) As a result there has been a cautious take up of the new rules which David Bucknall. with a strong body stating that implementing the new rules.” (Earl 2012) which in turn is 22 | P a g e .” (Cartlidge 2011) 2. “number of practitioners who have failed to properly understand what the NRM suite is trying to achieve. “an increasing number of clients are recognising the benefits.” (Bucknall 2012) This motion is forwarded by the. “will take investment of time and money.” (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. This resulted in the Confederation issuing a legal challenge in 2009. Other opposition lies with the attitudes and perceptions of the quantity surveying practitioners. “on the back foot when a client asks why you’re not up to speed with them.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. “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. which could result in the doubters finding themselves. 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.5.“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. claiming that. Chairman of the Construction Professional Group Board hopes that this will change as. 2.affecting the number of clients.2 The BCIS and the NRM A major challenge for the new rules was. 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. The two packages (NRM and SFCA) had to work together and consulted widely throughout the industry in order to achieve this aforementioned continuity. (Byng 2009) Therefore the structure of the NRM.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. “evolved from the elemental structure of the SFCA.5. 2.5. The SFCA embodied the new rules and the new elements that the NRM had been designed to accommodate.” (BCIS 2009) To achieve continuity with the NRM suite. 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. do not appreciate why they should be adopting the rules. whom as yet. “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”. This will allow more effective comparisons to be made between the costs of achieving building functions against those of previously executed projects. This will be most evident throughout the use of NRM3: Order of cost estimating and cost planning for building 23 | P a g e .” (Green 2012) The NRM will have massive benefits where BIM is concerned. 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. it enables a consistent approach to Order of Cost Estimating and Cost Planning and the consistent collection of construction cost and maintenance cost data. It has examined the significance of the introduction of The New Rules of Measurement and how it is impacting the construction industry. examined and evaluated the literature containing any relevant information on the research subject. The benefits and challenges faced by the introduction of the NRM have also been evaluated. BIM is intended to address issues of process and data retention.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”.” (Smith 2012) 2. The NRM is inextricably linked to this. “The relevance of the NRM within a BIM-enabled industry is particularly pertinent. This will form the foundations for BIM in creating the maintenance databases for buildings. bringing the collection of data to the forefront of working. 24 | P a g e . Key perceptions and theories surrounding the introduction of the NRM have also been examined to show the differing perceptions throughout the construction industry.6 Summary This chapter has reviewed. (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. The current cost estimating tool (SMM7) has been reviewed and the reasons why the NRM have come about have been highlighted. “Essentially research is carried out in order to describe. verifying existing theories or questioning them.1 Research Methods Available There are two research methodologies available to the author to underpin this research. intangibles”. The data would then be used to generate new hypothesis based on collected results”. “Qualitative research is carried out to understand meanings. so is essentially subjective. look at. organisations and professional bodies within. describe and understand experience. which are quantitative and qualitative research. ideas. 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. explain and predict.” (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. The production of numbers is guided by the kinds of questions asked of the subjects. 25 | P a g e . with each of these reflecting a progressively sophisticated function.0 Research Design & Methodology The aim of this chapter is to outline why the author has selected this topic of study. (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. 3. Research on any subject aims to describe a process which has previously been inaccessible or only vaguely understood. “Quantitative data is more appropriate when measuring variables. although it appears less so than qualitative research data. beliefs and values. (Naoum 2006) Quantitative data are also collected in accordance with research vehicles and underlying research questions.Chapter 3 3. measured with numbers. It emphasises meanings.” (Zikmund 1997) 3. organisations and professional bodies within the industry. The literature review was conducted using only secondary source material. magazine articles and online databases. and analysed with statistical procedures. Exploratory research is the most appropriate method for this area of research as it is used when. based on testing a hypothesis or a theory composed of variables. journals. “subjective in nature.3 Qualitative Research Qualitative research is described by (Naoum 2006) as. screening alternatives and to discover new ideas. experiences (often verbally described). exploratory and attitudinal. “diagnosing a situation.2 Quantitative Research According to Cresswell 1994. As stated previously the New Rules of Measurement are still in the implementation process 26 | P a g e .3. It is defined as an enquiry into a social or human problem. This included many forms of published works including books. how the NRM has/is/will be implemented and how this is affecting the professionals. examined and evaluated the relevant previous literature associated with the introduction of the NRM.” 3. In this chapter research techniques are used to assess how the new rules are impacting the construction industry. and descriptions and so on.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. “quantitative research is ‘objective’ in nature. in order to determine whether the hypothesis or the theory hold true. 3.4 Research Techniques In Chapter 2 the author reviewed.4.” There are two forms of qualitative research. ’ (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.2 Semi-Structured Interviews The author will conduct the interviews of six construction professionals. 3. from varying positions in differing firms and bodies that would be affected to varying degrees by the introduction of the NRM. “a great deal of freedom to probe various areas and to raise specific queries during the course of the interview. 2 x Consultancy Quantity Surveyors. This form of interview technique allowed the author. The interviews will also aim to gather information on how the introduction of the rules will affect business operations and the challenges associated. or in the promotion of the NRM to allow a more holistic view of how the NRM was actually impacting the construction industry. This form of data collection relies on closed questioning resulting in specific responses such as ‘yes’ or ‘no. It was also important that the interviewees were not employed by firms that had an influence or were involved with steering groups.and as such there is still very little information available on the subject including primary sources such as letters. 2 x Contractors’ Quantity Surveyors. diaries or memoirs. 3. how organisations are implementing or planning to implement the application of the NRM in replacement of previous procedures.4. Therefore from this section all conclusions are drawn from the secondary sources.3 Questionnaire Questionnaires are the most widely used source of data collection. 27 | P a g e . Therefore it was decided that the interview subjects would include.” (Naoum 2006) The main aim of the interviews is to acquire specific information on. if at all.4. and 2 x Council Quantity Surveyors. 28 | P a g e . Also detailed was the approaches used by the author and the conditions under that the investigations were undertaken. 3. then implemented into the next chapter. suggesting conclusions and supporting decision making”. summarised and analysed. transforming and interpreting the data with the goal of highlighting useful information. as the NRM is a topic that construction professionals feel they should know about.Respondents may not answer accurately. summarising. 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. they may answer in a way that enhances their reputation or provide answers they believe the author wants to hear. (HW SBE 2013) 3. the information gathered from the interviews will be organised. “Analysis of information is the process of cleaning. selecting.5 Information Analysis As soon as it is collected.6 Summary This chapter dealt with the methods of study and data collection and their derivation from primary and secondary sources. 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. This allows the author to effectively gather information and analyse it in comparison with each interviewee. it was also important that the interviewees were not employed by firms that had an influence or were involved with steering groups. 4.Chapter 4 4. All participants are members of the RICS. As the interview structure is flexible it allows the direction of the interview to change depending on the answers given by each interviewee.3 The Participants The interview participants were carefully selected.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 3.2 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. work for different firms and have varying experience in quantity surveying practice. 4. As stated in chapter 3. or in the promotion of the NRM to allow a more holistic view of how the NRM was actually impacting the construction industry. 29 | P a g e .0 Information Collection 4. It also allows the interview to flow naturally permitting the gathering of the necessary data. Separating the questions into categories allows analysis of the objectives of each set of question to take place more effectively.4 Interview Structure The interviews are flexible and semi-structured with the questions split into five sections.For confidentiality reasons the participants will be named as follows.5 Rational for Interview Questions Section A: About Interviewee 1. 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. Can you tell me a bit about your career? Background? Role? 30 | P a g e . 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. 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. 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. 31 | P a g e . to your knowledge. The aim of this question was to find out basic information and the role of the interviewee. Section B: Awareness of Problems with Current Practice 1. 3. 2. 2. Have you or your employer/previous employer. Section C: New Rules of Measurement Awareness 1. 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. Do you believe there are frailties with current measurement techniques? To discover if the interviewee believes there are issues surrounding the use of SMM7. There have been a lot of arguments about Quantity Surveyors not providing sufficient client satisfaction. been involved with any NRM steering groups or NRM promotions? To discover if the interviewee held any biases towards the NRM. 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. Are you aware of your firms’ stance on the NRM? Has/Is your company currently implementing the use of the NRM? If yes. 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. planning obligations. There is a view that there is a lack of guidance and available information surrounding the NRM. The new rules not only cover the traditional costs in measuring building works but also incorporate overheads. 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.2. tax allowances and grants. 32 | P a g e . profits. land costs. consultant fees. 3. to what degree? The aim of this question was to find out if the interviewee had personally used the NRM and for what. 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. how? And to what degree? If no. Section D: Opinion on the Introduction so far/what needs to be done? 1. 4. inflation. 5. Have you ever used the NRM and if so. 3. 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.2. 33 | P a g e . Section E: Personal Views Regarding the NRM 1. 4. 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. 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. 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. 5. 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. 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. 4.2.6 INTERVIEW ANALYSIS The following analysis will be presented in the sections detailed in paragraph 4. working in the construction industry. Do you think in the future that the use of the NRM will be widespread? If so. 4. were still carrying out quantity surveying duties and therefore had a current knowledge of the most recent revelations to practice. Key points from the interviewee’s answers will be selected and analysed where relevant. 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. 3. Section A: About Interviewee The following two questions have been included to confirm that each participant was a member of the RICS. 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. 34 | P a g e . been involved with any NRM steering groups or NRM promotions? All participants answered. Do you agree with this statement? This question brought about similar answers from the interviewees. All confirmed that there main duties were of a quantity surveying nature and that all were members of the RICS to differing degrees. “My experience does not back that up.1. Each had worked in the industry from between 6 years to 40 years. “No. none of which agree with the statement. Have you or your employer/previous employer. to your knowledge. especially at the cost plan stage – an accurate cost plan can mean the difference between a development happening and not”. Can you tell me a bit about your career? Background? Role? All six participants had varying backgrounds and roles. There have been a lot of arguments about Quantity Surveyors not providing sufficient client satisfaction. although there are always questions from some people about the role the QS plays these days and how necessary they are”. 3. All confirmed that they were involved in construction projects on a daily basis. He goes on to say that the role of the QS is. major contractors and consultancy firms. Can you tell me a bit about your current employer? Each interviewee worked for different firms. “Crucial in my view. Section B: Awareness of Problems with Current Practice 1. 2. Interviewee 2 stated that. These included local councils. Interviewee 1 35 | P a g e .” Therefore it was confirmed that all interviewees represented the data sample required as stated previously. 4 and 6 had heard of the NRM but have had no briefing of their purpose or the rationale behind them.” Interviewee 3 shared this motion that. Interviewees 2. Interviewee 3. site conditions. the contractor has no idea about.” Interviewees 1 and 6 forward this motion as both boast that.” “This was the last I heard about the introduction of the new rules.” provided by SMM7. Interviewee 1 stated that. held in Edinburgh over a year ago. 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. 2. despite disagreeing with the statement. “I am aware of the new rules and their purpose. for example.backs this up by stating. “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. “Clients are generally happy”. “A contradiction to the contact sum. 36 | P a g e . “as when pricing a BOQ. He was aware of the new rules and their purpose but had no formal briefing or training. “The role of the QS is currently developing to give clients exactly what they want. Do you believe there are frailties with current measurement techniques? All interviewees answered “No” to this question. Interviewee 2 went on to ask.” would be the most notably publicised reason.” Section C: New Rules of Measurement Awareness 1. did share views on how he can understand when clients may have experienced dissatisfaction.” Interviewee 5 had the same stance. highlighting that. “I attended a one day RICS organised seminar about the NRM. However Interviewee 3 went on to say that there may be some “issues with lacking descriptions. however the only briefing I have received has come in the form of newsletters and self-study. tax allowances and grants.” 37 | P a g e . Interviewee 1 did add that. “Our own development appraisals would always add these ‘extras’ in anyway and we would not need or want a cost plan incorporating them.” Interviewee 2 also forwarded this motion by adding. “Not all clients want these elements included and have their own methods of calculating them. to what degree? All participants answered. Have you ever used the NRM and if so. 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. “I look forward to putting this into practice. “unlikely to change at the moment”. The new rules not only cover the traditional costs in measuring building works but also incorporate overheads.” 4. I haven’t used them so far. inflation.” “I am worried about making mistakes or getting stuck and having to scrap everything and go back to doing it the old way. However interviewee 1 said. Are you aware of your firms’ stance on the NRM? Has/Is your company currently implementing the use of the NRM? If yes. “Yes. What is your view on this? All the interviewees did agree that these items would be beneficial.2. profits. planning obligations. land costs. Interviewee 5 also said that the council were. consultant fees. interviewees 3. Interviewee 1 stated that. we have the technology.” On the other hand. 2 and 4 shared the motion that these items are already being covered by the quantity surveyor for clients. “this may become confusing for the client who only wants a price for construction. “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.” Interviewee 4 believes that.” 3. tools and the ability to make the change but there is no client or industry pressure to do so. with interviewee 3 stating. “No”. we are ready. no. how? And to what degree? If no. 5 and 6 believed that this is a positive addition. However some doubts were evident as Interviewees 1. There is a view that there is a lack of guidance and available information surrounding the NRM. it is worrying. no pressure from industry or clients and adjustment of current practice. “Yes. interviewee 5 was aware that.” 2. emails or articles surrounding the NRM.” Section D: Opinion on the Introduction so far/what needs to be done? 1. “CBA have adopted the NRM for cost plans only but have not implemented their use for measurement as yet. “No. As an FRICS member of the RICS it is disappointing that I have had no correspondence. “Definitely. 3.” However interviewee 2 refused to comment. “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. Do you know any other/any firms who currently use NRM? Again this question was answered. who seemed to be the more willing to utilise the NRM went on to say. Interviewee 1. Do you see/have you experienced any implications surrounding the implementation of the NRM? 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. Do you believe RICS need to do more to effectively promote NRM? Five interviewees answered. Each interviewee shared the same notion that the main implications would be. training.” with two emphasising. “I have asked other quantity surveying professionals but nobody seems to be using them as yet. “cost.” However.5.” 38 | P a g e .” by five of the participants with interviewee 1 stating. What is your view on this statement? All six participants agreed with this statement. Can you advise on methods or strategies to streamline the effective transition to using NRM? There were several suggestions from the participants. user guide. However interviewee 1 also added that.” However. similar to what is available for SMM7. 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? Five of the participants answered.” 5. step by step. despite also answering unsurely. “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. the construction industry is changing. and An in-house NRM specialist. with the main reason being that they are. believes that in the long term. interviewee 3. “Yes. “A guide for offices on the changes from SMM7. if that is the case. Training academies and workshops run by the RICS.” 39 | P a g e .4. “Unaware of any problems with current practices. the most notable and repetitive answers include. trained in all aspects of the NRM” Section E: Personal Views Regarding the NRM 1. clients are becoming more conscious of how their building is being built with relation to lifecycle and maintenance costs. In your opinion what stops companies from using the NRM? 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. “No.” to this question. A daily use. Office visits by the RICS steering group. 5 and 6 are at the moment. “happy to continue using tried. “I have recently graduated from University and I was never taught how to use the NRM.” Interviewee 6 also added that. “if the Universities are not teaching how to use it. Interviewee 1 added. where will the learning begin?” 40 | P a g e . “I always like to adapt before my competitors and stay ahead where technology is concerned.2. I don’t see how another tool (NRM) will result in consistency. as with other technologies including SMM7.” While. “throughout the years I have been working in the industry. There were points raised regarding the speed of the widespread use including. so I would be happy to adopt the change. Do you believe that the use of NRM will result in measurement & cost consistency within the industry? 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. as long as more information and guidance becomes available before doing so. Are you willing to use the NRM instead of current cost estimating and planning practices? The interviewees were split 50/50 with this question. when do you think this will be the case? Again. Interviewees 1.” they could see the NRM becoming widespread. However all did agree that. Do you think in the future that the use of the NRM will be widespread? If so. all participants were unsure with their answer to this question.” and “how the NRM will interact with other technologies. in time. interviewees 2. “depending on the RICS future promotion of the product. “willing to make the change.” Interviewee 1 also believes that. everybody has used the same tools. However each person may use these tools in different ways from then next.” 3.” to the NRM. tested and trusted methods. “Yes.” 4. 3 and 4 are all.” Therefore. 41 | P a g e . 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. 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.7 SUMMARY This chapter has contained the structure and design for the research strategies and the analysis of the results from the interview process.4. procurement and maintenance & operation were main focuses that required unity throughout the industry. In this chapter the information gathered from the interview process will now be analysed and compared to the findings of the literature review.2. Current Measurement and Cost Planning Techniques The New Rules of Measurement and their Benefits Challenges Surrounding Implementation The Implementation Process 5.Chapter 5 5. 1994.1 Current Measurement and Cost Planning Techniques Change to current measurement practice has come about in response to industry based research (Lathom.0 Analysis 5. Egan 1998) which has highlighted inefficiencies in the traditional methods and procedures used in the management and procurement of major projects. From these results.2 Analysis of Research Strategies 5.1 Background The research strategies have provided the author with the relevant information surrounding the New Rules of Measurement. A summary of the data which highlights main trends and differences will be presented to allow the author to come to reasonable conclusion. the RICS concluded that estimating & cost planning. 42 | P a g e . (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. “quantity surveyors do provide sufficient client satisfaction”. that they are.”(Benge 2009) This statement was backed up by interviewee 3. works and post-contract procurement. resulting in an inconsistent approach. however there is a view from industry that. making it “extremely difficult for clients and other project team members to fully understand what is included in cost estimates. “Clients are generally happy.” 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. (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 43 | P a g e . clients are becoming more conscious of how their building is being built with relation to lifecycle and maintenance costs.” (Chalmers 2012) 5. “the construction industry is changing. planning obligations. in their opinion.(RICS Construction Faculty 2003) These results cannot be debated. SMM has been the industry model by which quantity surveyors measured and priced building works for nearly 100 years.2 The New Rules of Measurement and their Benefits As stated in the literature review and presented to the interviewees. often resulting in doubts about the cost advice given. tax allowances and grants.” each agreed that the future lay with the NRM as the natural evolution of measurement and cost planning practices.2. “relevant to current and future developments in the building industry. profits.” (Interviewees 1 & 6) This motion was forwarded throughout the interviewees as all six agreed that. “unaware of any problems with current practices. land costs. consultant fees. Therefore the replacement of SMM7 by the NRM can be considered the next step within the ‘living document’ staying. inflation. 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. Despite the views from the majority of the interviewees. The new rules not only cover the traditional costs in measuring building works but also incorporate overheads. “The NRM is a suite of documents that take a cradle-to-grave approach to the procurement of construction projects including cost estimating. who stated. however each was dubious on how and how long it would take to achieve this desired consistency. and more notably.2.measurement process and all constituents required in calculating cost limits.” 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. 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. challenging attitudes of the professionals that are affected by its arrival. estimates and targets. This element of the interview resulted in the participants answering unsurely when questioned on the consistency that the new rules would result in. Moreover it would provide a common and consistent approach to measurement allowing knowledge share throughout the international industry.3 Challenges Surrounding Implementation The literature review introduces the notion that. As stated in the literature review. including interviewee 2 who added. “Not all clients want these elements included and have their own methods of calculating them. 5. 44 | P a g e . Challenges in how the NRM will interact with current procedures and technologies.” Interviewee 1 also commented on the proposed benefits of the new rules by arguing that. optimising the effectiveness of these resources. with interviewees 3. 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. However. the literature review. as with the interviews. “Our own development appraisals would always add these ‘extras’ in anyway and we would not need or want a cost plan incorporating them. 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. 5 and 6 all confirming this belief in the NRM suite. 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. None of the participants suggested that it would not be the case. 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.” and goes on to say. described in the literature review as only half of the participants said that they would be. However it is vital to explore where organisations are with the process and how they are planning to implement them. Interviewee 1 who “always like to adapt before my competitors and stay ahead where technology is concerned.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. “lack of pressure from industry or clients and adjustment of current practice. as long as more information and guidance becomes available before doing so. tools and the ability to make the change but there is no client or industry pressure to do so. “Yes.” as well as the. As documented in chapter 4 it was only interviewee 1 who had received any basic training on the NRM through. “investment of time and money.” to the NRM.” that the NRM can offer them.” 5. tested and trusted methods.” For the moment this has resulted in a cautious take up of the new rules which is hoped to change soon as.2.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. 5 and 6 are at the moment. “willing to make the change.” These opinions strengthen the case that there is a lack of information surrounding the new rules. so I would be happy to adopt the change. However interviewee 1 said. Interviewee 5 also said that the council were. “happy to continue using tried. towards the introduction of the NRM. “unlikely to change at the moment”. The interviewees concur with the literature review in the belief that the main challenges surrounding the implementation of the NRM are the.” The other participants had no training and the only knowledge they had on the subject matter was selftaught. “a one day RICS organised seminar about the NRM. we have the technology. leaving interviewees 2. we are ready. “I have 45 | P a g e . “an increasing number of clients are recognising the benefits. The interviewees also at times displayed some of the negative attitudes. ” 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. Training academies and workshops run by the RICS. 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. Universities teaching pupils how to use the NRM. “if the Universities are not teaching how to use it. user guide.” Therefore. “A guide for offices on the changes from SMM7.looked but not seen any information since attending the introduction course over a year ago. trained in all aspects of the NRM. and An in-house NRM specialist. “I have recently graduated from University and I was never taught how to use the NRM.” As stated above it is also believed that more needs to be done to educate industry to allow for this transition to take place.” 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. step by step. as interviewee 6 concludes. where will the learning begin?” 46 | P a g e . The interview participants made suggestions on methods and strategies to help streamline the effective transition to using the New Rules of Measurement. Office visits by the RICS steering group. As an FRICS member of the RICS it is disappointing that I have had no correspondence. I have bought the book but can’t find a guide. A daily use. “huge recession may be the main reason that companies are not willing to adapt at the moment. emails or articles surrounding the NRM. similar to what is available for SMM7. 5. 47 | P a g e . The author has analysed the information and has allowed a conclusion to be drawn from this study.3 Summary This chapter has outlined the main findings from the interview process and the literature review while highlighting their significance. 6.Chapter 6 6.” The above hypothesis was set out and this is what the research dissertation is based upon. It will provide a summary of the author’s works and highlight any difficulties encountered. The author believes that it has been carefully researched and thoroughly investigated. 48 | P a g e . It will review and outline the author’s main elements of the study and examine if the aims and objectives of the dissertation. have been achieved.0 Conclusion and Recommendations 6. 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.1 Background This chapter will provide the author’s conclusions to the study. set in Chapter 1.2 Hypothesis “Evaluation of the impact of the New Rules of Measurement. organisations and professional bodies. The key findings were highlighted as follows. x. explore the comparisons between them and highlight how the NRM addresses frailties of current methods. viii. 6. i. To critically evaluate current methods of measurement versus the NRM. To explore the views of the industry on the introduction of the NRM. To critically evaluate current methods of measurement versus the NRM. To explore implications (if any) surrounding the implementation of the NRM.4 Conclusions The research has been successful as it has provided the author with the necessary information to come to the following conclusion. explore the comparisons between them and highlight how the NRM addresses frailties of current methods. vi.3 Aims and Objectives The aim of this dissertation was to investigate the impact that the introduction of the New Rules of Measurement has had on industry professionals.6. 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. ix. To evaluate how organisations are implementing/planning to implement the application of the NRM in replacement of previous procedures. To suggest ways to streamline the process of the implementation of the NRM to organisations. 49 | P a g e . The author used the following objectives to achieve the aim of this study. vii. 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 50 | P a g e 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 application of the NRM in replacement of previous procedures. 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. 51 | P a g e 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, A daily use, step by step, user guide, similar to what is available for SMM7, Training academies and workshops run by the RICS, Universities teaching pupils how to use the NRM, Office visits by the RICS steering group, and 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. 52 | P a g e 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. 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 2013.6 Further Research This dissertation focused on the current impact that the New Rules of Measurement has had on industry professionals. coinciding with the discontinuing of SMM7 in 2013. organisations and professional bodies. 6.7 Limitations The author has found a number of factors that did not allow analysis of the topic to be broader.6. 53 | P a g e . 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. still at a stage of ‘publication imminent’. 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. 3rd ed. D (2012) Seize the NRM opportunity. K (2007) Willis’s Practice and Procedure for the Quantity Surveyor. April-May 2012 Benge. J (1994) Research Design: Quantitative and Qualitative Approach. D (2012) Clear and simple.Chapter 7 7. D (2011) New Aspects of Quantity Surveying Practice. D (2011) Exemplary best practice. D (2012) Moving forward from SMM7. Construction Journal. April-May 2012 Cresswell. Sage Davidson. 2009 Benge. D (2010) Positive cost management. April-May 2012 Byng. D (2009) The cornerstone of cost control. 2010 Benge. Student Construction Journal. Student Construction Journal. Construction Journal. 12th ed. April-May 2012 Cartlidge. D (2012) A centuries-old practice. J (2012) A core skill. Hogg. A. April-May 2012 54 | P a g e . Construction Journal. Construction Journal.0 References Ashworth. Construction Journal. Construction Journal. Spons Press Chalmers. M (2009) New Rules of Measurement Road show – Introductory Seminar Bucknall. February-March 2011 Benge. Blackwell BCIS (2009) The SFCA and the NRM Benge. new opportunities. J (1998) Rethinking Construction: Report of the Construction Task Force. Egan. London: Department of Trade and Industry. London: HMSO. A (2011) Willis’s Elements of Quantity Surveying. Construction Journal. Final Report of the Government / Industry Review of Procurement and Contractual Arrangements in the UK Construction Industry. Lee. WileyBlackwell Martin. Building. Construction Journal. R. April-May 2012 55 | P a g e . June-July 2012 Heriot-Watt School of the Built Environment (2013) Dissertation Workshops Latham. L (2012) Competing in a global industry. S (2012) The RICS’ new rules of measurement. M (1994) Constructing The Team. G (2006) Dissertation research and writing for construction students. March 2012 Egan. S (2011) New rules. Construction Journal. A (2012) A measure of success. W. S. Prentice Hall Europe Naoum. Green. London: Rethinking Construction. A and Knussen. A Practical Introduction. Elsevier Ong. S (2012) Managing costs consistently. C (1999) Research Methods in Psychology. S. Construction Journal. J (2002) Accelerating Change: A report by the Strategic Forum for Construction. Trench. April-May 2012 Earl. February-March 2011 Earl. Construction Journal.Earl. April-May 2012 McQueen.uk. Willis. S.co. J (2012) Changing requirements. Peters. A (2012) The NRM and Black Book Steering Group Zikmund. pp. M and Barrett.pdf (21.bcis. April-May 2012 RICS Construction Faculty (2003) Measurement Initiative Steering Group RICS (2011) Principles of Measurement (International) Survey Report http://www. 21.co. Sage 56 | P a g e . Order of Cost Estimating and Cost Planning for Capital Building Works. 1st ed.12) RICS (2009) RICS New Rules of Measurement. Construction Journal. Detailed Measurement for Building Works. 2nd ed.uk/downloads/RICS-POMISurvey2011Report. P. RICS Books Robson. C (2002) How to do a research project: A guide for undergraduate students. W (1994) Case Study Research: Design and Methods. Volume 1. Construction Management and Economics. Volume 2. AprilMay 2012 Sexton. ambiguities and questions. Construction Journal. M (2012) Towards a standard assessment. G (2012) Avoiding negligence claims. Blackwell Russell-Croucher. 613-622 Smith. (2003) A literature synthesis of innovation in small construction firms: Insights. Vol. RICS Books RICS (2012) RICS New Rules of Measurement.09. to your knowledge. Have you or your employer/previous employer.Chapter 8 8. Can you tell me a bit about your current employer? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 6.0 Appendices 8. Can you tell me a bit about your career? Background? Role? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 5.1 Interview Questions Section A: About Interviewee 4. There have been a lot of arguments about Quantity Surveyors not providing sufficient client satisfaction. been involved with any NRM steering groups or NRM promotions? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Section B: Awareness of Problems with Current Practice 3. Do you agree with this statement? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 57 | P a g e . planning obligations. tax allowances and grants. Have you ever used the NRM and if so. profits. how? And to what degree? If no.4. land costs. Are you aware of your firms’ stance on the NRM? Has/Is your company currently implementing the use of the NRM? If yes. Are you familiar with the New Rules of Measurement? Have you been trained or briefed on the NRM and its purpose? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 7. are you aware of any motion to do so? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 58 | P a g e . The new rules not only cover the traditional costs in measuring building works but also incorporate overheads. consultant fees. Do you believe there are frailties with current measurement techniques? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Section C: New Rules of Measurement Awareness 6. to what degree? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 8. inflation. What is your view on this? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 9. There is a view that there is a lack of guidance and available information surrounding the NRM. Do you see/have you experienced any implications surrounding the implementation of the NRM? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 9. Do you believe RICS need to do more to effectively promote NRM? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 8.10. What is your view on this statement? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 7. Do you know any other/any firms who currently use NRM? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Section D: Opinion on the Introduction so far/what needs to be done? 6. In your opinion what stops companies from using the NRM? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 59 | P a g e . Are you willing to use the NRM instead of current cost estimating and planning practices? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 8.10. Can you advise on methods or strategies to streamline the effective transition to using NRM? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Section E: Personal Views Regarding the NRM 5. 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? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 6. when do you think this will be the case? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 60 | P a g e . Do you believe that the use of NRM will result in measurement & cost consistency within the industry? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 7. Do you think in the future that the use of the NRM will be widespread? If so. I worked for various firms and was a partner for a major consultancy firm before starting my own QS practice in 1999. 3. to your knowledge. 2.8.2 Sample Interview Narration (Interviewee 1) Date: 04/03/2013 Interviewee 1: Andrew McLeman FRICS RMaPS Managing Director McLeman QS Network Section A: About Interviewee 1. Have you or your employer/previous employer. been involved with any NRM steering groups or NRM promotions? No 61 | P a g e . I began as an apprentice QS on leaving school where I took my RICS professional exams. I gained FRICS 1987. Can you tell me a bit about your career? Background? Role? I have been working in the industry for nearly 40 years now. Can you tell me a bit about your current employer? Self-employed Managing Director of McLeman QS Network. Are you familiar with the New Rules of Measurement? Have you been trained or briefed on the NRM and its purpose? 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. Section C: New Rules of Measurement Awareness 1. 62 | P a g e . There have been a lot of arguments about Quantity Surveyors not providing sufficient client satisfaction. People in the profession either underestimate or don’t understand what QS’s do. I don’t agree with this statement. 2. 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. so 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. Have you ever used the NRM and if so. to what degree? No.Section B: Awareness of Problems with Current Practice 1. Do you believe there are frailties with current measurement techniques? No. Do you agree with this statement? No. I am worried about making mistakes or getting stuck and having to scrap everything and go back to doing it the old way. 2. 5. As an FRICS member of the RICS it is disappointing that I have had no correspondence. how? And to what degree? If no. What is your view on this statement? I have looked but not seen any since attending the introduction course over a year ago. I even asked two guys from ***** and they just shrugged their shoulders. consultant fees. we have the technology. Not all clients want these elements included and have their own methods of calculating them. There is a view that there is a lack of guidance and available information surrounding the NRM. emails or articles surrounding the NRM. 63 | P a g e . What is your view on this? These are things that we have always calculated for our clients. It could also just get confusing for some clients. profits. are you aware of any motion to do so? Yes. Section D: Opinion on the Introduction so far/what needs to be done? 1. Do you know any other/any firms who currently use NRM? No. 4. planning obligations. The new rules not only cover the traditional costs in measuring building works but also incorporate overheads. if they want them. I’m just waiting to get the goahead.3. Are you aware of your firms’ stance on the NRM? Has/Is your company currently implementing the use of the NRM? If yes. land costs. inflation. I have bought the books but can’t find a guide. Clients are aware of these things when they ask for a price. tax allowances and grants. it is worrying. I have asked other quantity surveyors but nobody seems to be using them as yet. we are ready. tools and the ability to make the change but there is no client or industry pressure to do so. cost. if that is the case. 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. 64 | P a g e . I don’t understand what the frailties with SMM7 are. 3. Basically just better communication on how the thing works. maybe some training workshops. 4. 5. 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? Not really. Adjustment of current practice is a thought but I’m not really sure how much things will change. In your opinion what stops companies from using the NRM? As I just said. As I said before there is no pressure from industry or clients. Section E: Personal Views Regarding the NRM 1. Do you believe RICS need to do more to effectively promote NRM? Yes. Do you see/have you experienced any implications surrounding the implementation of the NRM? I think that the obvious implications would be the cost of training a new technology. definitely. especially for larger firms. Can you advise on methods or strategies to streamline the effective transition to using NRM? A guide explaining the major differences from SMM7 would be the first thing.2. 4. so I would be happy to adopt the change. as with other technologies when SMM7 came on the scene there were doubters but with time everybody used it. when do you think this will be the case? Yes.2. I suppose in time. However each person may use these tools in different ways from then next. Throughout the years I have been working in the industry. I don’t see how another tool will result in consistency. I always like to adapt before my competitors and stay ahead where technology is concerned. It depends on industry though how quick this will happen. as long as more information and guidance becomes available before doing so. 65 | P a g e . Do you think in the future that the use of the NRM will be widespread? If so. 3. everybody has used the same tools. Are you willing to use the NRM instead of current cost estimating and planning practices? Yes I’m willing to make the change to the NRM. Do you believe that the use of NRM will result in measurement & cost consistency within the industry? I’m not sure.
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