Net present cost in the construction industry
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 ‘net present cost’ (NPC) refers to:
‘…the sum of the present values of all costs less the sum of the present value of all benefits.’
The term ‘net present value’ (NPV) refers to:
‘…the aggregated sum of the future income and expenditure discounted back to a common base date, usually the present day, at a given compound interest rate.’
According to NRM3, where only costs are included in the NPV this may be termed the net present cost.
[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.
Combining mid-career qualifications with experience broadens career opportunities.
Why being a mentor can help your career.
Channel 4 broadcaster to host 125th anniversary ceremony.
Listed structures on the rail network
Heritage interests and operational requirements must be balanced.
Historic England publishes research into embodied carbon when retrofitting traditional buildings.
New Prime Minister delivers on ECA call for cut in electricity costs.
CIOB reacts to the announcement of Andy Burnham as Prime Minister.
Heritage and conservation science workforce survey - Have your say.
England's Suburbs 1820-2020. Book review.
New, more proportionate and targeted approach for higher-risk building assessments.
Government brings British Steel into public ownership.
UKCW Birmingham returns with bold new theme and focus.