Net benefits

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.

NRM3: Order of cost estimating and cost planning for building maintenance works, the terms ‘Net Savings’ (NS) and ‘Net Benefits’ (NB) refer to:

'…the present value of savings/benefits in the operation ‘in use’ phase less the present value of the additional investment costs to achieve them. It provides a measure of cost effectiveness and of the benefits to be achieved from investment options. NS/NB greater than 0 (zero) indicates positive cost effectiveness.'

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[edit] Related articles on Designing Buildings Wiki

• Capital costs for construction projects.
• Cost plan.
• Cost-benefit analysis in construction.
• Development appraisal.
• Discounting.
• Internal rate of return for property development.
• Investment.
• Life cycle assessment.
• Net present value.
• NRM1.
• NRM2.
• NRM3
• Profitability.
• RICS.
• Value for money.
• Whole life costs.
• Yield.