Maintenance contractor’s overheads and profit
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 NRM3: Order of cost estimating and cost planning for building maintenance works, the term ‘maintenance contractor’ (or prime contractor) refers to:
‘…the contractor responsible for the total maintenance and completion process. The term Prime contractor is often used to mean the Main contractor in central government and the defence sector..
The maintenance contractor’s overheads and profit are:
‘…the costs associated with head office administration proportioned to each building maintenance contract plus the its return on capital investment.’
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