RICS New Rules of Measurement (NRM)

Transcription

1 RICS New Rules of Measurement (NRM) What can be measured can be evaluated, improved directed in short managed Lord Kelvin Its application for costing sustainability Presented by Andrew Green Director of Faithful+Gould

2 Andy Green Technical Subject Matter Expert: BS ISO; 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 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 group HVCA - Vice Chairman SFG technical standards committee Best Innovation Award Winner 1997 and 2007 ECI - Exceptional Contribution Award 2007 Presented by Sir Michael Latham

3 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

4 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 understanding of both capital and operational costs A lack of rules for LCC of maintenance works A lack of rules for costing sustainability

5 The RICS New Rules of Measurement (NRM) Suite 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

6 The RICS New Rules of Measurement (NRM) Suite NRM 1 Construction Construction Order Order of of Costs Costs Estimating Estimating SFCA NRM/BCIS NRM/BCIS Standard Standard Form of Form of Cost Cost Analysis Analysis 4 4 th th Edition Edition NRM 3 Maintenance Maintenance Order Order of of Costs Costs Estimating Estimating Capital costs Capital works Refurbishment works costs Construction Construction Elemental Elemental Cost Cost Planning Planning Maintenance Maintenance Elemental Elemental Cost Cost Planning Planning & Tendering Tendering Through life costs Maintenance costs Renewals costs Inspection costs Works Works Procurement Procurement Works Works Procurement Procurement Construction costs Construction costs Capital replacement costs Capital replacement costs Maintenance Works Maintenance Works Measured Term Contracting Measured Term Contracting NRM 2 NRM 2 & 2A

7 The RICS New Rules of Measurement (NRM) Suite 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 Part 1 Construction Works Order of cost estimating; elemental cost planning Part 2 Works Procurement Construction work packages procurement Part 3 - Maintenance Works Order of cost estimating; elemental cost planning & procurement; inc. life cycle asset replacements Addendums to the NRM Parts 1, 2 and 3; Operations & Environmental Order of cost estimating: elemental cost planning & procurement of Energy, Carbon, Water and Waste. For more information contact

8 The RICS NRM Part 3 for Maintenance Works 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 NRM Part 3 Maintenance 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.

9 Alignment to the BS ISO and SMLCC NRM Part 3 Maintenance

10 ISO & SMLCC WLC COST STRUCTURE Clarifying scope and terminology ISO addresses the confusion over scoping whole life costs and terminology regarding the difference between whole life cost (WLC) and life cycle cost (LCC) Note Occupancy costs included in non construction costs in BS ISO

11 UK Cost Data Structure for Life Cycle Costing Maintenance Maintenance (RICS (RICS NRM3 NRM3 and and BS8544) BS8544) Routine Routine Servicing Servicing & Maintenance: Maintenance: --Planned Planned tasks, tasks, including including minor minor repairs repairs --Reactive Reactive (first (first line/ line/ unscheduled) unscheduled) --Proactive Proactive (tours/ (tours/ monitor/ monitor/ inspections) inspections) --Redecoration Redecoration (optional (optional include include 2.3) 2.3) Condition Condition and and wider wider Asset Asset Reviews Reviews and and Maintenance Maintenance Management Management --Asset Asset reviews reviews (condition (condition/ / other other facets) facets) --Maintenance Maintenance and and data data management management Life Life Cycle Cycle Asset Asset Investment Investment --Major Major replacement replacementworks programmes programmes --Upgrades Upgrades (e.g. (e.g. energy energy efficiency efficiency etc) etc) Client Client Definable Definable Other Other Elements: Elements: --Refurbishment Refurbishment and and adaptation adaptation costs costs --Client Client definable definable costs costs i.e. i.e. churn, churn, fees, fees, capital capital allowances; allowances; asset asset depreciation depreciation etc etc

12 Aligned with NRM/ BCIS and to CIBSE Guide M NRM / BCIS Standard Form of Cost Analysis NRM Part 3 Maintenance 4 th Edition In Q (NRM aligned for construction)

13 CIBSE Guide Economic Service Life Planning Description Service Life BCIS Code HVCA SFG 20 Ref Heating Source Boiler Plant Boiler Unit Maintainable Assets Build Code Shell and tube boilers (steam and hthw) 20 5E 05-19; Water tube boilers (steam and hthw) 25 5E 05-19; Electrode/electric boilers (steam and hthw) 25 5E 05-19; Shell and tube boilers (mthw/lthw) 20 5E 05-14; Water tube boilers (mthw/lthw) 25 5E 05-14; Electrode/electric boilers (mthw/lthw) Service 25 Life 5E 05-21; Cast iron sectional boilers (mthw/lthw) 25 5E 05-14; Steel boilers (mthw/lthw) 20 5E 05-14; PPM 05-23Tasks Condensing boilers (mthw/lthw) Expectancy 20 5E 05-04; 05;10;05-12; Modular boilers 15 5E Domestic boiler - condensing 15 5E 05-23; Domestic boiler - combination 10 5E 05-29; Domestic gas fired boilers 10 5E 05-28; Burner Force Draught Gas Burner 15 5E 05-(10-12); Atmospheric Burner 20 5E 05-(03-04); 07;01 Oil burners (pressure jet) 15 5E 05-13; 07-(04-07) Solid Fuel Burner 15 5E 05-(25-27) Water Heater Electric Water Heater 12 5D Instantaneous Water Heater 8 5D Unvented Storage Heater 12 5D 32-09; HWS Cylinder (domestic type) 30 5D Gas Fired Water Heater 12 5D Solar Panel / Solar Thermal 25 5D Calorifier & Heat Exchangers LPHW Calorifier LPHW Calorifiers - Copper 25 5D 32-(05-07) Including LPHW Calorifers - Mild Steel 20 5D 32-(05-07) Steam calorifier Steam Calorifiers - Copper 25 5E 32-(05-07) Task Times Steam Calorifers - Mild Steel 20 5E 32-(05-07) Heat Exchanger Heat Exchanger - Shell and Tube 25 5E 32-(05-07) & Skilling Heat Exchanger - Plate 15 5E 29-(06-07) Evaporator Evaporator - Shell and Tube 20 5F Evaporator - Coil Direct Expansion 20 5F Trace Heating 20 5D, 5E, 5F Cooling Source Chiller / Refrigeration Plant Packaged Chiller Centrifugal chiller 20 5F 09-02; Reciprocating chiller 20 5F 09-02; Screw chiller 25 5F 09-02; Absorption chiller 25 5F 03-04; Blast Chiller 20

14 RIBA Plan of Works RIBA Work Stages RICS Cost Estimating, Elemental OGC Gateways Cost Planning and Tender (Applicable to Projects) Life Cycle Applications of NRM Document Preparation Stages Preparation Design A Appraisal Build, Maintain & Replace Order of Cost Estimates 1 B Design Brief Build, Maintain & Replace Order of Cost Estimates 2 C Concept Build, Maintain & Replace Elemental Cost Plan 1 D Design Development Build, Maintain & Replace Elemental Cost Plan 2 1 Business Justification 2 Delivery Strategy 3A Design Brief and Concept Approval OGC Gateways E Technical Design F Production Information Build, Maintain & Replace Elemental/Tender Cost Plan 3 3B Detailed Design Approval Pre-Construction G Tender Documentation Work Package Tender Costs (Quantified) PPM Task Schedules (Quantified) LCR Work Schedules H Tender Action Post Tender Costs Elemental Cost Plans - 4 3C Investment Decision Construction J Mobilisation 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

15 BS 8544 Guide for LCC of Maintenance BS 8544;2011 Guide for Life Cycle Costing of Maintenance - during the In use phases of buildings & constructed assets Business Outcomes focused, for LCC of maintenance during the in use phases Integrated 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 & budgets 4 Inform wider decision making (i.e. estate rationalisation; sustainability agenda etc)

16 Road to WLC costing of sustainability & carbon Importance of sustainability and whole life carbon accounting Achieving the Climate Change Act targets is driving the need for carbon reduction. Properties are the largest 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 initiatives 3. 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 comparable 5. 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!

17 (Excluding Disposal)

18 Costing Sustainability is Complex Climate Change Act 2008: 34% reduction by % 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)

19 CO 2 e whole life carbon accounting (simplified case study) CO CO 2 CO 2 CO 2 2 Operational carbon: CO 2 e emissions during operation Embodied carbon: CO 2 e emissions during manufacturing of building materials and on-site construction

20 Stage 0 - Baseline building 4 storey, square, concrete frame, 40% glazing, air conditioned, 8400m2 TOTAL CARBON = 742t (tonnes per annum) Operational carbon = 416t Embodied carbon = 327t CONSTRUCTION COST 1,734 / m 2 ENERGY COST 0% 0% 19 / ECOBUILD m 2 / yr Workshop LIFECYCLE R COST 23 / m 2 / yr 3 rd 0% March 2011

21 Stage 1 Building Form, Orientation and Ventilation TOTAL CARBON = 656t (tonnes per annum) Operational carbon = 328t Simple model Skin Rotated One side tapered Both sides tapered Base case -6.9% +7.2% +/-4% -8% Embodied carbon = 329t CONSTRUCTION COST 1,701 / m 2 2% ENERGY COST 15% 17 / ECOBUILD m 2 / yr Workshop LIFECYCLE R COST 58% 10 / m 2 / yr

22 Stage 2 Solar shading and envelope improvements Reduce glazing to 25% of façade + incorporate shading Reduce glazing to 25% of façade High performance glass Introduce shading Temperature relaxation 2 o c Improve air tightness U Values by 20% Increase insulation Thermal mass TOTAL CARBON = 616t (tonnes per annum) Operational carbon = 286t Embodied carbon = 331t CONSTRUCTION COST 1,703 / m 2 2% ENERGY COST 19% 16 / ECOBUILD m 2 / yr Workshop LIFECYCLE R COST 58% 10 / m 2 / yr

23 Stage 3 Systems Optimization, Controls + Efficient Lighting High efficiency LED fittings: Presence detection Time and daylight linking TOTAL CARBON = 592t (tonnes per annum) Operational carbon = 260t Presence detectors Time switches Twilight switches Embodied carbon = 332t CONSTRUCTION COST 1,730 / m 2 0% ENERGY COST 28% 14 / ECOBUILD m 2 / yr Workshop LIFECYCLE R COST 58% 10 / m 2 / yr

24 Stage 4 Biofuel Boiler + PV Panels Closing the gap Renewable Technologies Offset carbon emissions through the use of renewable technologies TOTAL CARBON = 535t (tonnes per annum) Operational carbon = 202t Embodied carbon = 333t CONSTRUCTION COST 1,793 / m 2 ENERGY COST LIFECYCLE R COST 43% 42% 3% 11 / ECOBUILD m 2 / yr Workshop 13 / m 2 / yr

25 Stage 5 Embodied Carbon Reduction 20% Recycled Content + Use of Prefabricated Materials Recycled Content Partial replacement of cement with fly ash Use of Bubble-Deck flooring system TOTAL CARBON = 488t (tonnes per annum) Operational carbon = 202t Embodied carbon = 287t CONSTRUCTION COST 1,793 / m 2 3% ENERGY COST 43% 11 / ECOBUILD m 2 / yr Workshop LIFECYCLE R COST 42% 13 / m 2 / yr

26 Construction, Life Cycle and Energy Costs (Informative)

27 Construction, Life Cycle and Energy Savings (Informative) Summary of Resultant Savings (over 25-year period) Project Solution Baseline Total Cost Financial ( ) 26,223,343 Carbon (tonnes) 18,560t Stage 5 Total Cost Total Savings Total Savings (%) 21,137,483 5,085,859 19% 12,209t 6,351t 34%

28 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)

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

30 Green Property Alliance (GPA) has addressed the need for greater consistency and clarity in the way in which the sustainability performance and the wider property portfolio is measured and reported upon. Industry wide sustainability ground rules: 1 Determined a common methodology and metrics for Energy, Carbon, Water & Waste 2 Mechanisms for classifying building types and norms of operation 3 Practical methods of assigning responsibilities for measuring and reporting resource used in rented buildings 4 Practical methods of normalising resource use

31 The RICS New Rules of Measurement (NRM) Suite 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 Part 1 Construction Works Order of cost estimating; elemental cost planning Part 2 Works Procurement Construction work packages procurement Part 3 - Maintenance Works Order of cost estimating; elemental cost planning & procurement; inc. life cycle asset replacements Addendums to the NRM Parts 1, 2 and 3; Operations & Environmental Order of cost estimating: elemental cost planning & procurement of Energy, Carbon, Water and Waste. For more information contact

32 Embedding O&E Metrics within the NRM Standards Construction Replacement Order of Cost Estimating Elemental Cost Planning Part 1 NRM Addendum Part 1 NRM Addendum Procurement Pt 2 NRM Add Pt 2 NRM Add EMBODIED Operation Performance of buildings Wider portfolio measures Maintenance Environmental Occupancy (property) Disposal / End of life Green Property Alliance Metrics Including classification of building types and norms of operation Part 3 NRM Addendum +Ops/Environmental Green Property Alliance Metrics Including use of the IPD environment code; Global reporting indicators OPERATIONAL

33 RICS New Rules of Measurement (NRM) Road to costing sustainability and whole life carbon accounting Why this is very importance? (3R s) Regulation; Reputation & Responsibility For more information contact