Cost per functional unit
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 ‘cost per functional unit’ (or functional unit cost) is:
‘…the unit rate which, when multiplied by the number of functional units, gives the total building works estimate (i.e. works cost estimate less main contractor’s preliminaries and main contractor’s overheads and profit). The total recommended cost limit (i.e. cost limit, including inflation) can also be expressed as a cost per functional unit when reporting costs.’
Where the term ‘functional unit’ means:
‘…a unit of measurement used to represent the prime use of a building or part of a building (e.g. per bed space, per house and per m2 of retail area). It also includes all associated circulation space.’
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Do you understand the different types of stone and which ones you should use where?
Why a wellbeing strategy is vital for property managers.
An ECA briefing for members about the commercial implications of leaving the EU.
A crucial moment on any project - and fraught with danger.
The performance gap from a Northern Ireland perspective.
Book review: Buildings of protestant nonconformity.
Design and testing for health and wellbeing - free download from BRE.
Retention in construction contracts.
Campaign for the reform of cash retentions.
The key points for the construction industry and BSRIA's response.
How to make roads safer: the debate continues.