The SFCA and the NRM

1
The SFCA and the NRM

• Joe Martin, Executive Director
• BCIS

2
(No Transcript)
3
(No Transcript)
4
SFCA

• Standard Form of Cost Analysis
• Principles Instructions and Definitions

5
NRM

• New Rules of Measurement
• Order of cost estimating and elemental cost
  planning

6
SFCA and NRM

• The titles of these documents indicate their
  purpose
• The SFCA sets out how to analyse the cost of a
  project into elements.
• The NRM sets out how to present and develop a
  cost plan as the design develops.

7
SFCA and NRM

• These two processes are the beginning and the end
  of the cycle of cost information that flows
  through a procurement process.
• The starting point for an elemental order of cost
  estimate is cost analyses of previous projects.
• The starting point for a cost analysis is the
  costing documents from a procurement process.
• There is clearly a chicken and egg relationship.

8
When Adam delved and Eve span
9
Flow of cost information
10
SFCA and BCIS

• The SFCA, and indeed BCIS, were developed to
  facilitate the move from costing a design, to
  designing to a cost
• For that you need elemental costs
• An element is A major physical part of a
  building that fulfils a specific function, or
  functions, irrespective of its design
  specification or construction.

11
SFCA

• The SFCA defines the Elements and provides
  instructions for analysing the costs of a project
  into Elements and defines the ancillary project
  information needed to interpret it.
• It defines the purpose of a cost analysis as to
  provide data that allows comparisons to be made
  between the costs of achieving various building
  functions in a project with those of achieving
  equivalent functions in other projects. It is the
  analysis of a building in terms of its elements.

12
SFCA

• The key point is that the content of the
  functional Elements as defined in the SFCA should
  not change with the design or specification.

13
Elemental cost analyses

• Why are elemental costs useful?
• Because they can provide a basis for providing a
  client a robust estimate based on very little
  information at a level that helps define the
  assumption that you have made
• And can be based on

14
Elemental cost analyses

• Schedule of accommodation
• 2000m2 offices
• Canteen for 200 people
• 300m2 gallery space
• Auditorium for 300 people
• Two shops

15
Elemental cost analyses

• A sketch designs

16
NRM

• The NRM
• provides a structured basis for preparing order
  of cost estimates and elemental cost plans
  including all the costs and allowances forming
  part of the cost of the building to the client
  but which are not reflected in the measurable
  building work.

17
NRM

• Order of cost estimate
• The determination of possible cost of a building
  early in design stage in relation to the
  employers fundamental requirements. This takes
  place prior to preparation of full set of working
  drawings or bill of quantities and forms the
  initial build up to the cost planning process

18
NRM

• Elemental Cost Plan
• The critical breakdown of the cost limit for the
  building into cost targets for each element of
  the building. It provides a statement of how the
  design team proposes to distribute the available
  budget among the elements of the building, and a
  frame of reference from which to develop the
  design and maintain cost control.

19
SFCA and NRM

• So far so good.
• The starting point for the NRM was the SFCA
  elemental definitions, which define the physical
  building.
• The practical issues involved in pricing a design
  as it develops and in presenting the rules the
  NRM means that the presentation of the two
  documents are different. However some effort was
  made to ensure that the two structures are
  compatible

20
So what are the differences

• The differences are
• NRM covers the non-physical aspects of a project
  that the client may require as part of his
  overall budget for the project, while the SFCA
  relates to the physical construction and
  contractors charges.
• Pragmatic changes to presentation and allocation
• Different coding system.

21
NRM

• Guidance on pricing the non-physical aspects of a
  project that the client may require as part of
  his overall budget for the project eg
• Main contractors preliminaries
• Contractors overheads and profit
• Project/design team fees
• Other development/project costs, eg insurance,
  planning fees, decanting and Section 106
  agreement contributions
• Risk allowances
• Inflation
• Value Added Tax
• Other considerations eg Capital Allowances, Land
  remediation allowances and Grants

22
Presentation and allocation

• NRM also introduction some pragmatic changes to
  the familiar SFCA list of elements
• The purely presentational issues
• Introduction of designed elements and
  sub-elements
• Splitting Facilitating works and External works
• Introducing non-element cost category for
  off-site constructed buildings
• Practical pricing issue relating to procurement
  that moves the structure away from elements
  towards packages.
• Editorial changes

23
presentational issue

• NRM presents the rules in a table with three
  levels
• To reducing the white space in the tables some
  SFCA sub-elements are presented at level 2 rather
  than level 3
• For example in the SFCA Substructure is an
  element but is also a group element. In NRM the
  sub-elements are presented at level 2 and further
  broken down at level 3.

24
Designed elements

• At level 3 the structure is expanded to
  incorporate design and specification eg

25
External works

• External works split into
• Work to existing buildings
• External works
• Facilitating works

26
Off-site construction

• Complete buildings and building units
• Prefabricated buildings complete buildings
• Prefabricated buildings building units

27
Pricing and packages

• Practical pricing issue relating to procurement
  that moves the structure away from elements
  towards packages eg
• Façade retention is included with demolitions
  as it will be procured as part of the demolition
  package.
• Work to existing buildings covers work all work
  to existing not just work to adjacent buildings.
• Podium slabs forming roofs to basements are
  included in upper floors
• Drainage under the building in substructure
• Testing and commissioning of individual service
  installations separated from installations

28
Coding

• The SFCA has a numeric/alpha/numeric coding eg
  2F1 External windows
• The NRM structure uses a numeric/numeric/numeric
  coding eg
• 2.6.1 External windows
• This will help to differentiate between the two.

29
The circle of cost information

• Project costs reported in the format of the NRM
  measurement rules can easily form the basis of
  the and SFCA elemental cost analysis.
• Elemental cost analyses provides the initial
  costs to inform an elemental order of cost
  estimate before the design exists. This can be
  developed following the NRM guidance as the
  design develops and, where the resultant cost
  plan forms the basis of the contract sum
  analysis, it can be re-analysed into functional
  Elements.

30
NRM Contents

• Order of cost estimating and elemental cost
  planning in context of
• RIBA Plan of Work
• OGC Gateway review process

31
Estimate and cost plan stages
32
NRM order of cost estimate

• Rules for order of cost estimating
• Information required
• Constituents
• Measurement rules
• Floor area
• Functional units
• Elements floor area, Element unit quantities
• Updating historic costs
• Preliminaries
• Contractors overheads and profit

33
NRM order of cost estimate

• Rules for order of cost estimating
• Fees
• Other development costs
• Risk allowances
• Inflation
• VAT
• Other considerations
• Reporting

34
NRM cost planning

• Rules for elemental cost planning
• Purpose
• Constituents
• Formal cost planning stages
• Reviewing and approving cost plans
• Cost control
• Multiple buildings
• Information requirements
• Updating historic costs

35
NRM cost planning

• Rules for elemental cost planning
• Preliminaries
• Contractors overheads and profit
• Fees
• Other development costs
• Risk allowances
• Inflation
• VAT
• Other considerations
• Reporting

36
Measurement rules

• Structure of rules
• Sub element
• Component
• Unit
• Measurement rules for components
• Included
• Excluded

37
Measurement rules

• Component strip foundation details, including
  depth of foundation, to be stated
• Unit m
• Measurement rule linear length of component is
  measure on centre line of the component

38
NRM - Appendices

• Appendices include
• Information requirements for formal cost plans
• Templates for cost plans

39
NRM

• For RICS members it can be downloaded from RICS
  website

40

• As the meerkat says
• Is simples!

41
The SFCA and the NRM

• Joe Martin, Executive Director
• BCIS