Building works estimate
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 ‘building works estimate’ means:
'… the sum of the cost targets for group elements 1 to 8 (i.e. Substructure; Superstructure; Internal finishes; Fittings, furnishings and equipment; Services; Prefabricated buildings and building units; Work to existing buildings; and External works). It excludes facilitating works estimate, as well as those relating to main contractor’s preliminaries, main contractor’s overheads, profit/design team fees estimate, other development/project costs estimate and risk allowances.’
That is, it is the total estimated cost of building works.
The elemental method offers an alternative approach for calculating the building works estimate. The elemental method:
‘…is a budget setting technique which considers the major elements of a building and provides an order of cost estimate based on an elemental breakdown of a building project.'
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