rics nrm slide.pdf

3rd March 2011ECOBUILD Workshop

Its application for costing sustainability

RICS New Rules of Measurement (NRM)‘What can be measured can be evaluated, improveddirected – in short managed’ Lord Kelvin

Presented by Andrew Green – Director of Faithful+Gould


Andy Green

Technical Subject Matter Expert:• BS ISO; 2008 15686-5 life cycle costing -service life planning• PAS 55 – Asset Management (ISO consultation member)

Author and Chair of the Technical Committee• BRE; 2005 Guide to achieving whole life value In buildings• PB- 156865 SMLCC for construction procurement (2008)• RICS NRM 3 New rules of measurement for maintenance• BS 8544;2011 Guide for life cycle costing of maintenance

CIBSE Guide M – Maintenance task groupHVCA - Vice Chairman SFG technical standards committee

Best Innovation Award Winner – 1997 and 2007ECI - Exceptional Contribution Award 2007

Presented by Sir Michael Latham


Synopsis of this workshop

• Introduction to the RICS New Rules of Measurement suite

• Road to whole life costing of sustainability / carbon accounting– Importance of sustainability and carbon reduction commitments– Barriers still to be overcome

• Other work currently being progressed - which will need to be standardised and simplified, so the industry can ‘cost sustainability’– Government and cross industry initiatives – CEN T350 Constructor’s Product Directive – The RICS Costing sustainability initiative


The RICS New Rules of Measurement (NRM) Suite

Reinvigorate measurement as a discipline

Address the (sometimes) strange attitude towards measurement at varying RIBA stages

An historical disconnection between the cost plans measurement and in Bills of Quantities

Inconsistent approach to the cost planning

A lack of transparency and understandingof both capital and operational costs

A lack of rules for LCC of maintenance works

A lack of rules for costing sustainability



Why do we need NRM?

If you want to compare/ benchmark costs(at any level) then you have got to have

measured to a common standard

Recommendations‘Create a suite of measurement rules for the life cycle of cost management’


ConstructionOrder of

CostsEstimating

ConstructionOrder of

CostsEstimating

Works Procurement

Construction costsCapital replacement costs

Works Procurement

Construction costsCapital replacement costs

Construction Elemental

CostPlanning

Construction Elemental

CostPlanning

MaintenanceElemental

CostPlanning & Tendering

MaintenanceElemental

CostPlanning & Tendering

Capital costsCapital worksRefurbishment works costs

NRM 1

NRM 2

NRM 3

NRM/BCISStandard Form of

CostAnalysis

4th Edition

NRM/BCISStandard Form of

CostAnalysis

4th Edition

Works Procurement

Maintenance WorksMeasured Term Contracting

Works Procurement

Maintenance WorksMeasured Term Contracting

NRM 2 & 2A

MaintenanceOrder of

CostsEstimating

MaintenanceOrder of

CostsEstimating

SFCA

Through life costsMaintenance costsRenewals costsInspection costs



Part 1 – Construction WorksOrder of cost estimating; elemental cost planning

Part 2 – Works ProcurementConstruction work packages procurement

Part 3 - Maintenance WorksOrder of cost estimating; elemental cost planning & procurement; inc. life cycle asset replacements

Addendums to the NRM Parts 1, 2 and 3;

Operations & EnvironmentalOrder of cost estimating: elemental cost planning & procurement of Energy, Carbon, Water and Waste.

‘The rules have been written to provide a standard set of measurement rules that are understandable by all those involved in the cost management of construction projects

• Employers• Project teams• Cost managers

For more information contact www.rics.org/nrm



NRM Part 3Maintenance

What does it contain?• Common methodology & cost data structures - linked

to NRM Part 1 - (Build, Maintain & Service Life Planning)

• Rules of measurement - for the LCC of maintenance

• Standard forms of cost reporting and analysis – order of estimating, elemental cost planning and tendering

• Prioritisation and optimisation – of the total maintenance and the cyclical asset investment programmes (1 to X yrs)

• Risks and uncertainty – typical risks & mitigation plans

• Sources of information – what information is required:record assumptions & exclusions; reference data available

• Appendices – core definitions (GIFA/NIA), commonly used classification (functional units) and special use definitions;information requirements and standard estimating templates.

The RICS NRM Part 3 for Maintenance Works



Alignment to the BS ISO 15686-5 and SMLCC


ISO 15686-5 & SMLCC WLC COST STRUCTURE Clarifying scope and terminology

ISO addresses the confusion over scoping whole life costs and terminologyregarding the difference between whole life cost (WLC) and life cycle cost (LCC)

Note – Occupancy costs included in non construction costs in BS ISO 15686-5


Maintenance (RICS NRM3 and BS8544)

2.1 Routine Servicing & Maintenance:- Planned tasks, including minor repairs- Reactive (first line/ unscheduled)- Proactive (tours/ monitor/ inspections)- Redecoration (optional – include 2.3)

2.2 Condition and wider ‘Asset Reviews’and Maintenance Management- Asset reviews (condition / other facets)- Maintenance and data management

2.3 Life Cycle Asset Investment- Major replacement works programmes- Upgrades (e.g. energy efficiency etc)

2.4 Client Definable Other Elements:- Refurbishment and adaptation costs- Client definable costs – i.e. churn, fees,capital allowances; asset depreciation etc

Maintenance (RICS NRM3 and BS8544)

2.1 Routine Servicing & Maintenance:- Planned tasks, including minor repairs- Reactive (first line/ unscheduled)- Proactive (tours/ monitor/ inspections)- Redecoration (optional – include 2.3)

2.2 Condition and wider ‘Asset Reviews’and Maintenance Management- Asset reviews (condition / other facets)- Maintenance and data management

2.3 Life Cycle Asset Investment- Major replacement works programmes- Upgrades (e.g. energy efficiency etc)

2.4 Client Definable Other Elements:- Refurbishment and adaptation costs- Client definable costs – i.e. churn, fees,capital allowances; asset depreciation etc

UK Cost Data Structure for Life Cycle Costing



NRM / BCISStandard Form of

Cost Analysis

4th EditionIn Q2 2011

(NRM alignedfor construction)

Aligned with NRM/ BCIS and to CIBSE Guide M


Description Service Life BCIS Code HVCA SFG 20 RefHeating SourceBoiler PlantBoiler UnitShell and tube boilers (steam and hthw) 20 5E 05-19; 05-20Water tube boilers (steam and hthw) 25 5E 05-19; 05-20Electrode/electric boilers (steam and hthw) 25 5E 05-19; 05-20Shell and tube boilers (mthw/lthw) 20 5E 05-14; 05-23Water tube boilers (mthw/lthw) 25 5E 05-14; 05-23Electrode/electric boilers (mthw/lthw) 25 5E 05-21; 05-22Cast iron sectional boilers (mthw/lthw) 25 5E 05-14; 05-23Steel boilers (mthw/lthw) 20 5E 05-14; 05-23Condensing boilers (mthw/lthw) 20 5E 05-04; 05;10;05-12; 05-13Modular boilers 15 5E 05-11Domestic boiler - condensing 15 5E 05-23;Domestic boiler - combination 10 5E 05-29; 05-30Domestic gas fired boilers 10 5E 05-28;BurnerForce Draught Gas Burner 15 5E 05-(10-12); 07-03Atmospheric Burner 20 5E 05-(03-04); 07;01Oil burners (pressure jet) 15 5E 05-13; 07-(04-07)Solid Fuel Burner 15 5E 05-(25-27)Water HeaterElectric Water Heater 12 5D 32-15Instantaneous Water Heater 8 5D 32-14Unvented Storage Heater 12 5D 32-09; 32-13HWS Cylinder (domestic type) 30 5D 32-15Gas Fired Water Heater 12 5D 32-13Solar Panel / Solar Thermal 25 5D 53-01Calorifier & Heat ExchangersLPHW CalorifierLPHW Calorifiers - Copper 25 5D 32-(05-07)LPHW Calorifers - Mild Steel 20 5D 32-(05-07)Steam calorifierSteam Calorifiers - Copper 25 5E 32-(05-07)Steam Calorifers - Mild Steel 20 5E 32-(05-07)Heat ExchangerHeat Exchanger - Shell and Tube 25 5E 32-(05-07)Heat Exchanger - Plate 15 5E 29-(06-07)EvaporatorEvaporator - Shell and Tube 20 5F 19-01Evaporator - Coil Direct Expansion 20 5F 19-01Trace Heating 20 5D, 5E, 5F 40-03Cooling SourceChiller / Refrigeration PlantPackaged ChillerCentrifugal chiller 20 5F 09-02; 12-03Reciprocating chiller 20 5F 09-02; 12-01Screw chiller 25 5F 09-02; 12-02Absorption chiller 25 5F 03-04; 09-05Blast Chiller 20

PPM TasksService Life Expectancy

Build CodeMaintainable Assets

IncludingTask Times& Skilling

CIBSE Guide – Economic Service Life Planning


RIBA Work Stages RICS Cost Estimating, Elemental Cost Planning and Tender

Document Preparation Stages

OGC Gateways (Applicable to Projects)

A Appraisal Build, Maintain & Replace

Order of Cost Estimates 1 1 Business Justification

Prep

arat

ion

B Design Brief Build, Maintain & Replace Order of Cost Estimates 2

2 Delivery Strategy

C Concept Build, Maintain & Replace Elemental Cost Plan 1

3A Design Brief and Concept

Approval

D Design Development Build, Maintain & Replace Elemental Cost Plan 2

Des

ign

E Technical Design

Build, Maintain & Replace Elemental/Tender Cost Plan 3

3B Detailed Design Approval

F Production Information

G Tender Documentation Work Package Tender Costs

(Quantified) PPM Task Schedules (Quantified) LCR Work Schedules

Pre-

Con

stru

ctio

n

H Tender Action Post Tender Costs Elemental Cost Plans - 4

3C Investment Decision

J Mobilisation

Con

stru

ctio

n

K Construction to Practical Completion

As Built – Applicable maintainable asset tasking & service life plans

4 Readiness for Service

Use

L Post Practical Completion

Servicing & Maintenance Plans; and /or LCR works programmes

5 Operational Review and

Benefits Realisation

RIBAPlan ofWorks

OGCGateways

Life Cycle Applications of NRM


BS 8544 – Guide for LCC of Maintenance

Business ‘Outcomes’ focused, forLCC of maintenance during the ‘in use’ phasesIntegrated process for: agile life cycle planning,

budgeting and delivery of maintenance and life time asset investment, sustainably!

Practice guidance on how to:1 Set ‘Functional Maintenance Standards’2 Understand the impact of funding and not

funding maintenance (FCI risk profiling)3 Prioritise and optimise actual spend .v.

business needs/wants, risks & budgets4 Inform wider decision making (i.e. estate

rationalisation; sustainability agenda etc)

BS 8544;2011Guide for Life Cycle Costingof Maintenance - during the In use phases of buildings & constructed assets


Road to WLC costing of sustainability & carbon

Importance of sustainability and whole life carbon accountingAchieving the Climate Change Act targets is driving the need for carbon reduction. Properties are thelargest source of CO2 around 47% so improving energy efficiency and reducing carbon emissions is a priority for the built environmental sector.

As more and more CO2 is driven out of operational energy use, the embodied carbon built into a new or refurbished properties will take a much greater significance.

Barriers still to be overcome:1. Currently embodied carbon accounting is in its ‘infancy’!2. Major problem of complexity and confusing language + uncoordinated research initiatives3. Industry structure and cultural divides – procured on lowest capital cost not best whole life value! 4. No standard methodology for costing sustainability - hence results are not comparable5. Need for clear leadership to drive cross industry efficiency and reform of it’s working practices

6. Need for UK plc business case, based on a transition plan and incentivisation to make it happen!


(Excluding Disposal)


Costing Sustainability is Complex• Climate Change Act 2008:

• 34% reduction by 2020

• 80% reduction by 2050

• Part L - improvement in building regulations

• Code for Sustainable Homes mandatory (RSLs)

• BREEAM mandatory (Government)

• Zero carbon building targets

• Homes by 2016

• Schools by 2016

• Non domestic by 2019

• EPCs / DECs now mandatory (October 2008)

• On site renewables targets: PPS1 10%; PPS 22

• Carbon Reduction Commitment (April 2010)

• Creation of a climate change department (DECC)

• Site Waste Management Plans mandatory (Landfill Tax)

• Local Authorities: Local area agreements (N185 & N186)

• Strategy for Sustainable Construction

• Sustainability Commitments (Cross industry champions)


CO2e – whole life carbon accounting (simplified case study)

CO2CO2 CO2

CO2

Operational carbon:CO2e emissions during operation

Embodied carbon:CO2e emissions during manufacturing of

building materials and on-site construction

3rd March 2011ECOBUILD Workshop£1,734 / m2

CONSTRUCTION COST

£19 / m2 / yrENERGY COST

0% 0%

Stage 0 - Baseline building4 storey, square, concrete frame, 40% glazing, air conditioned, 8400m2

TOTAL CARBON = 742t(tonnes per annum)

Operational carbon = 416t

Embodied carbon = 327t

£23 / m2 / yrLIFECYCLE ‘R’ COST

0%


Stage 1 – Building Form, Orientation and Ventilation

£1,701 / m2

CONSTRUCTION COST


15%2%£10 / m2 / yr

58%



LIFECYCLE ‘R’ COST


Simple model Skin Rotated One side tapered Both sides tapered

Base case -6.9% +7.2% +/-4% -8%


Stage 2 – Solar shading and envelope improvements

£1,703 / m2

CONSTRUCTION COST


19%2%

• Reduce glazing to 25% of façade• High performance glass• Introduce shading• Temperature relaxation 2oc• Improve air tightness – ‘U’ Values by 20%• Increase insulation• Thermal mass

£10 / m2 / yr58%




Reduce glazing to 25% of façade + incorporate shading



Stage 3 – Systems Optimization, Controls + Efficient Lighting

High efficiency LED fittings: Presence detection Time and daylight linking

£1,730 / m2

CONSTRUCTION COST


0% 28%£10 / m2 / yr

58%





Time switchesPresence detectors Twilight switches


Offset carbon emissions through the use of renewable technologies

Stage 4 – Biofuel Boiler + PV PanelsClosing the gap – Renewable Technologies

£1,793 / m2

CONSTRUCTION COST


43%3% £13 / m2 / yr

42%






Stage 5 – Embodied Carbon Reduction

• Recycled Content

• Partial replacement of cement with fly ash

• Use of “Bubble-Deck” flooring system

£1,793 / m2

CONSTRUCTION COST


3%43%

£13 / m2 / yr42%



20% Recycled Content + Use of Prefabricated Materials




Construction, Life Cycle and Energy Costs (Informative)


Construction, Life Cycle and Energy Savings (Informative)

Summary of Resultant Savings (over 25-year period)

6,351t£5,085,859Total Savings

34%19%Total Savings (%)

18,560t£26,223,343Baseline Total Cost

12,209t£21,137,483Stage 5 Total Cost

Carbon (tonnes)Financial (£)Project Solution


Other work currently being progressed

• CEN T350 – Constructor’s Products Directive• PAS 2050 – Product standards for assessing greenhouse gas emissions

• The Green Property Alliance – Metrics for carbon, energy, water and waste

• TSB Projects – Tools for Influencing Low Carbon Design / Decision Making• Carbon databases and industry tools – ICE data and SBEM models etc

• RICS’s Costing sustainability initiative

– NRM addendums for Operations and Environmental– Governance support/ steer – to the response to the industry call– Cross industry collaboration (3 working forums)


Carbon Critical Costing (80/20) - by Functional Types


Green Property Alliance (GPA) has addressedthe need for greater consistency and clarity in the wayin which the sustainability performance and the wider property portfolio is measured and reported upon.

Industry wide sustainability ground rules:

1 Determined a common methodology andmetrics for Energy, Carbon, Water & Waste

2 Mechanisms for classifying building types and norms of operation

3 Practical methods of assigning responsibilitiesfor measuring and reporting resource used in rented buildings

4 Practical methods of normalising resource use


Part 1 – Construction WorksOrder of cost estimating; elemental cost planning

Part 2 – Works ProcurementConstruction work packages procurement

Part 3 - Maintenance WorksOrder of cost estimating; elemental cost planning & procurement; inc. life cycle asset replacements

Addendums to the NRM Parts 1, 2 and 3;

Operations & EnvironmentalOrder of cost estimating: elemental cost planning & procurement of Energy, Carbon, Water and Waste.

‘The rules have been written to provide a standard set of measurement rules that are understandable by all those involved in the cost management of construction projects

• Employers• Project teams• Cost managers




Embedding O&E Metrics within the NRM Standards

Order of Cost Estimating

Elemental Cost Planning

Procurement

Construction

Replacement

Operation

Maintenance

Environmental

EMB

OD

IED

OPE

RA

TIO

NA

LGreen Property Alliance MetricsIncluding classification of building types and norms of operation

Green Property Alliance MetricsIncluding use of the IPD environment code; Global reporting indicators

Occupancy (property)Disposal / End of life

Performance of buildingsWider portfolio measures

Part 1 NRM Addendum

Part 1 NRM Addendum

Pt 2 NRM Add

Pt 2 NRM Add

Part 3 NRM Addendum +Ops/Environmental


Why this is very importance?(3R’s) Regulation; Reputation & Responsibility

RICS New Rules of Measurement (NRM)Road to costing sustainability and whole life carbon accounting


rics nrm slide.pdf

Documents

suite of measurement

rics nrm

cost plans measurement

ecobuild workshoppart

ecobuild workshopsynopsis

life value

costing sustainability3rd

elemental cost planningpart