Level 1

Question 1

What is a prime cost sum?

Answer 1

supply only rate for materials or goods.

Question 2

What is included in OHP

Answer 2

Head office administration plus main contractors return on capital investment.

Question 3

What is the base date?

Answer 3

JCT - 10 dates before the tender return date. Is the date at which the cost limit excluding inflation sum of works estimate, project and design team fees estimate, other development and project costs estimate and risk allowance estimate) sets the basis for calculating inflation.

Question 4

What’s the difference between value engineering and value management

Answer 4

Value engineering is usually undertaken with the contractor during stage 5 whereas value management is the whole process and is usually part of the design stages.

Question 5

What does bcis stand for

Answer 5

Building cost information service

Question 6

What is the difference between NRM 1, NRM 2 and NRM 3?

Answer 6

NRM1 - Order of Cost Estimating and Cost Planning for Capital Building Works - pre-contract estimates and cost plans using an elemental breakdown.
NRM2 - Detailed Measurement for Building Works - pricing Bills of Quantities and consists of detailed breakdowns using unit rates.
NRM3 - Order of Cost Estimating and Cost Planning for Building Maintenance Works-consider the maintenance and running costs of the building to assist with life cycle costs