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] Find out more
[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 and news
The Ocean Cleanup project
The various types of bond and when they are used.
It's vital the industry responds to proposals for reform of the safety regulatory system.
RSHP's Merano wins RIBA accolade.
How to differentiate between partial possession and early use.
Ofwat proposes £12 billion additional investment and £50 bill reductions.
Avoiding 'winner's curse' and other useful info.
Developing test methods for video flame/smoke detectors
Waiting for a new deal ...but will funding materialise?
Our servers have reached another milestone. Why not write an article and be seen by our 6.5 million users.
RSHP celebrates competition win in Paris.
All about approved inspectors.