Risk allowance - Revision history

Designing Buildings at 11:18, 2 February 2023

2023-02-02T11:18:11Z

← Older revision		Revision as of 11:18, 2 February 2023
Line 9:		Line 9:
	‘…an evolving estimate of known factors without any allowances for risk and uncertainty, or element of inflation. The base cost estimate is the sum of the works cost estimate, the project/design team fees estimate and the other development/project costs estimate.’		‘…an evolving estimate of known factors without any allowances for risk and uncertainty, or element of inflation. The base cost estimate is the sum of the works cost estimate, the project/design team fees estimate and the other development/project costs estimate.’

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	[https://www.rics.org/uk/upholding-professional-standards/sector-standards/construction/icms3/ ICMS: Global Consistency in Presenting Construction Life Cycle Costs and Carbon Emissions, 3rd edition], November 2021, published by the ICMS (International Cost Management Standard) Coalition, defines risk allowance as: ‘A quantitative allowance set aside as a precaution against risks and future needs to allow for the uncertainty of outcome. This may include an allowance for optimism bias and a contingency sum.’
		+
		+	= Related articles on Designing Buildings =

	* Base cost estimate.		* Base cost estimate.

Designing Buildings at 07:18, 5 November 2020

2020-11-05T07:18:12Z

← Older revision		Revision as of 07:18, 5 November 2020
Line 9:		Line 9:
	‘…an evolving estimate of known factors without any allowances for risk and uncertainty, or element of inflation. The base cost estimate is the sum of the works cost estimate, the project/design team fees estimate and the other development/project costs estimate.’		‘…an evolving estimate of known factors without any allowances for risk and uncertainty, or element of inflation. The base cost estimate is the sum of the works cost estimate, the project/design team fees estimate and the other development/project costs estimate.’

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Base cost estimate.		* Base cost estimate.
Line 27:		Line 25:
	* Works cost estimate.		* Works cost estimate.

−	[[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:Cost_/_business_planning]]

Designing Buildings: Created page with "The New Rules of Measurement (NRM) are published by the Royal Institute of Chartered Surveyors (RICS). They provide a standard set of measurement rules for estimating, cost plann..."

2018-05-07T07:12:42Z

Created page with "The New Rules of Measurement (NRM) are published by the Royal Institute of Chartered Surveyors (RICS). They provide a standard set of measurement rules for estimating, cost plann..."

New page

The New Rules of Measurement (NRM) are published by the Royal Institute of Chartered Surveyors (RICS). They provide a standard set of measurement rules for estimating, cost planning, procurement and whole-life costing for construction projects.

According to NRM1: Order of cost estimating and cost planning for capital building work, the term 'risk allowance' refers to:

'...the amount added to the base cost estimate for items that cannot be precisely predicted to arrive at the cost limit.'

Where the 'base cost estimate’ means:

‘…an evolving estimate of known factors without any allowances for risk and uncertainty, or element of inflation. The base cost estimate is the sum of the works cost estimate, the project/design team fees estimate and the other development/project costs estimate.’

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Base cost estimate.
* Building works estimate.
* Cost breakdown structure.
* Cost estimate.
* Cost per functional unit.
* Cost plan.
* Elemental cost plan.
* Enabling works.
* Inflation.
* Initial cost appraisals.
* NRM1.
* RICS.
* Works cost estimate.

[[Category:Cost_/_business_planning]]