Last edited 07 May 2018

Option cost

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 NRM1: Order of cost estimating and cost planning for capital building work, an option cost is:

'...an estimate of the cost of alternative design solutions to achieve the employer’s objectives; so that they can be compared and appraised. Option costs will be incorporated in the overarching cost report.'

NRM1 suggests it may be necessary to estimate the cost of alternative development scenarios for a site as part of RIBA Work Stages A and B or Gateways 1 and 2.

[edit] Find out more

[edit] Related articles on Designing Buildings Wiki

Designing Buildings Anywhere

Get the Firefox add-on to access 20,000 definitions direct from any website

Find out more Accept cookies and
don't show me this again
"