Cost managment Flashcards
(17 cards)
What is the purpose of RICS New Rules of Measurement (NRM)?
To standardize construction cost estimation and measurement practices in the UK.
What are the three parts of NRM and their focus areas?
NRM1: Order of cost estimating
NRM2: Detailed measurement for building works
NRM3: Cost planning for maintenance
List four measurement types used in quantification
Linear
Area
Volume
Number (countable items)
Give three tools used for accurate construction measurement.
Laser measurers
Measuring tapes
CAD software
What is the main purpose of a Bill of Quantities (BoQ)?
To provide a detailed breakdown of materials, labor, and resources for accurate tendering.
What makes a BoQ description effective?
Specific, detailed descriptions without generic terms (e.g., “200mm brick wall with 1:4 mortar”).
What are the three main types of construction variations?
Client-initiated
Site-driven
Regulatory adjustments
Outline the variation management process.
Document change
Recalculate costs
Update project timelines
What are interim payments in construction?
Periodic payments based on completed work assessed during the project.
Why is a retention percentage held in interim payments?
To ensure project completion and rectify any defects post-handover
What is the purpose of the Final Account process?
To reconcile all interim payments, adjust for variations, and reach financial agreement.
List four methods of construction dispute resolution
Mediation
Adjudication
Arbitration
Litigation
What are the main types of cost reports in construction?
Monthly cost reports
Cost forecasting reports
Cost-to-completion reports
Name two best practices for cost reporting.
Regular updates
Use of project management software
What are risks of poor quantification?
Cost overruns
Project delays
Contractual disputes
What are the core components of a tender document?
BoQ
Specifications
Drawings
Contract conditions
What is a key guideline for writing construction specifications?
Use clear, unambiguous language with accurate quantity measurements.
