Director’s adjustment
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, a director’s adjustment is:
| …a reduction or addition to the tender price, derived by the contractor’s estimating team, offered by the director(s) of the contractor. |
The contractor’s directors, or other senior managers, will typically perform a commercial review of the estimated price with a view to how best to secure work. They may then decide to adjust to the estimated price, taking into consideration the need to secure work, the level of competition in the market, the company’s cash flow, financing charges and so on.
This will be identified as a separate line in the bill of quantities, where the contractor can insert their adjustment.
[edit] Related articles on Designing Buildings Wiki
- Approximate bill of quantities.
- Bill of quantities breakdown structures.
- Bill of quantities.
- Elemental bill of quantities.
- Firm bill of quantities.
- Measurement.
- NRM2.
- Tender documentation.
- Tender pricing document.
- Types of bill of quantities.
- Work package bill of quantities.
- Work section bill of quantities.
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Where performance meets practice
The Building Envelope Stage at UKCW Birmingham.
CIAT publishes briefing on planning reforms.
Leaders in Learning for Practice Network
Call for conservation leaders in learning to register interest in new network.
The importance of early engagement
Construction lessons from the Trillium HealthWorks Experience Centre.
Mayors are to be given planning call in powers
Mayors across England will be able to make the most important planning decisions.
The Master Builder: William Butterfield and his times. Book review.
Why construction can't afford to ignore the skills gap.
Building Safety Regulator, 19 August
Gill Kernick appointed Independent Chair of Residents’ Panel.
Connecting knowledge, technology and conservation
Building competence for the future of built heritage.
Building Regulations and Building Safety Act
CIOB publishes free advice for non-domestic clients.
Building Safety Newsletter from MHCLG.
An extraordinary record of steel engineering worldwide.