Fixed charge
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 fixed charge is:
| …for work, the cost of which is to be considered independent of duration. |
Charges may be fixed, time-related, or a combination of both.
NB The Code of Estimating Practice, seventh edition, published by the Chartered Institute of Building (CIOB) in 2009 defines a 'fixed price contract' as, ‘…a contract where the price is agreed and fixed before construction starts’.
However, in reality, contracts tend not to have a fixed price, but allow the price to change under certain circumstances, such as:
- Variations.
- Relevant events.
- Provisional sums.
- Fluctuations.
- Payments to nominated sub-contractors or nominated suppliers.
- Statutory fees.
- Payments relating to opening up works for inspection and testing.
A truly 'fixed' price contract would not necessarily be in the interests of the client as it would require that the contractor price risks over which they may have no control, and which might not arise.
For more information see: Fixed price.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Accommodating the Victorian and Edwardian working woman. Book review.
Rethinking passive fire protection in design
PFP demands the same level of design rigour as structure or services.
38% of Gen Zs feel safe when a fire door is wedged open.
Stunning images from around the world
Shortlist for CIOB’s Art of Building photography competition.
Guidance for conversion of traditional pre-1919 stone buildings.
Industrial heritage in the Ruhr
A marked difference to the fate of industrial landscapes in the UK.
Communities will be able to build their own clean energy.
Why diversity and inclusion matters for SMEs
CIOB’s D&I Charter shows how practical changes can support long-term growth.
Cut electricity bills to power growth
Coalition sends joint letter to the Chancellor.
Gasholders: a history in pictures. Book review.
Recognition, influence and growth
SocEnv identifies three strategic pillars in new strategy to 2045.
Discover the future of roofing, cladding and insulation.