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Last edited 29 Sep 2020
Order of cost estimate
Methods for preparing order of cost estimates are set out in the New Rules of Measurement:
- NRM 1: Order of cost estimating and cost planning for capital building works
- NRM 3: Order of cost estimating and cost planning for building maintenance works.
NRM1 defines an order of cost estimate as; '...the determination of possible cost of a building(s) early in design stage in relation to the employer’s fundamental requirements. This takes place prior to preparation of a full set of working drawings or bills of quantities and forms the initial build-up to the cost planning process.'
From the employer:
- Location and availability of site.
- Statement of building use and size.
- Any refurbishment requirements.
- Initial project/design brief.
- Enabling works details.
- Draft programme.
- Site conditions.
- Budget/cash flow constraints.
- Construction procurement options.
- Life span of the proposed building.
From the architect:
- Design study sketches or drawings.
- Schedules of areas.
- Legislative constraints.
- Initial risk register.
The key constituents of an order of cost estimate are typically:
- Facilitating works.
- Building works.
- Contractor’s preliminaries.
- Contractor’s overheads and profit.
- Construction cost.
- Other development/project costs.
- Risk allowances.
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