Credit

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 NRM2: Detailed measurement for building works, the term ‘credit’ means:

‘…a refund offered by the contractor to the employer in return for the benefit of taking ownership of materials, goods, items, mechanical and electrical plant and equipment, etc. arising from demolition or strip out works.’

NRM2 suggests that:

‘Credits are normally only applicable where the building project comprises the refurbishment or rehabilitation of an existing building, or demolition works. Provision for such provides the employer an opportunity to seek credits for old building materials; components and items; mechanical and electrical plant; and fittings, furnishings and equipment which arise from the stripping out or demolition works and for which the employer is content to pass ownership to the contractor for reuse.’

‘Credits can be based on a pre-prepared list of items, which is incorporated in the BQ (Bill of Quantities) and the contractor invited to insert the amount of credit he will give for each item. Alternatively, the contractor can be invited to list items for which he is willing to offer a credit and the amount of credit he will give for each item.’