RICS Ne New Ru l es o f Meas u r em en t (NRM) ‘What can be measured can be evaluated, improved dire di rect cted ed – in shor shortt manag managed ed’’
Lord Kelvin
Its appl applica icatio tion n for costi co sting ng susta sus taina inabil bility ity
Presented by A by An – Director of Faithful+Gould n d r ew Gr Green een –
ECOBUILD Workshop
3rd Ma Marc rch h 201 2011 1
An A n d y Gr Green een
Technic echnical al Subject Matter Expert: Expert: • BS ISO; 2008 15686-5 life cycle costing -service life planning • PAS 55 – Asset – Asset Management (ISO consultation member) A u t h o r an Au and d Ch Chai airr o f t h e Tech Tec h n i c al Co Com m m i t t ee • Guide to achieving whole life value In buildings BRE; 2005 • PB- 15 1568 686 65 SMLCC for construction procurement (2008) • RICS NRM 3 New rules of measurement for maintenance • for life cycle costing of maintenance maintenance BS 8544;2011 8544;2011 Guide for CIBSE Guide M – Ma CIBSE Maint intena enance nce task group gr oup HVCA HV CA - Vice Chairman Chairman SFG technical standards committee Best Inno Innovation vation Award Aw ard Winn Winner er – – 1997 and 2007 ECI - Exceptional Contri Contri buti bution on Awa A ward rd 2007 Presented by Sir Michael Latham
ECOBUILD Workshop
3rd Ma Marc rch h 201 2011 1
An A n d y Gr Green een
Technic echnical al Subject Matter Expert: Expert: • BS ISO; 2008 15686-5 life cycle costing -service life planning • PAS 55 – Asset – Asset Management (ISO consultation member) A u t h o r an Au and d Ch Chai airr o f t h e Tech Tec h n i c al Co Com m m i t t ee • Guide to achieving whole life value In buildings BRE; 2005 • PB- 15 1568 686 65 SMLCC for construction procurement (2008) • RICS NRM 3 New rules of measurement for maintenance • for life cycle costing of maintenance maintenance BS 8544;2011 8544;2011 Guide for CIBSE Guide M – Ma CIBSE Maint intena enance nce task group gr oup HVCA HV CA - Vice Chairman Chairman SFG technical standards committee Best Inno Innovation vation Award Aw ard Winn Winner er – – 1997 and 2007 ECI - Exceptional Contri Contri buti bution on Awa A ward rd 2007 Presented by Sir Michael Latham
ECOBUILD Workshop
3rd Ma Marc rch h 201 2011 1
Synopsi ynopsis s of this workshop works hop •
Int ntrod roduc ucti tion on to th the e RICS New Rules of Measu sureme rement nt su suit ite e
•
Roa oad d to whole life costi costing ng of sustainabilit sustainability y / ca carbon rbon account accounting ing – Importance of sustainability and carbon reduction reduction commitments – Barriers still to be overcome
•
ich h wil illl ne need to to be Other work currently c urrently be b eing pro progresse gressed d - whic standardised and simplified, so the industry can ‘cost sustainability’ – Government and cross industry initiatives – CEN T350 Constructor’s Constructor’s Product Directive – The RICS Costing Costing sustainability initiative
ECOBUILD Workshop
3rd Ma Marc rch h 201 2011 1
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
ECOBUILD Workshop
3rd March 2011
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 t o have measured to a common standard
Recommendations ‘Create a suite of measurement rules for the life cycle of cost management’
ECOBUILD Workshop
3rd March 2011
The RICS New Rules of Measurement (NRM) Suite NRM 3
NRM 1
SFCA
Construction Construction Order of Order of Costs Costs Estimating Estimating
NRM/BCIS NRM/BCIS Standard Standard Form of Form of Cost Cost Analysis Analysis 4ththEdition 4 Edition
Ca p i t a l c o s t s Ca p i t a l w o r k s R e fu r b i s h m e n t w o r k s c os t s
Maintenance Maintenance Order of Order of Costs Costs Estimating Estimating Maintenance Maintenance Elemental Elemental Cost Cost Planning & Planning & Tendering Tendering
Construction Construction Elemental Elemental Cost Cost Planning Planning
Works Procurement Works Procurement Co n s t r u c t i o n c o s t s Co n s t r u c t i o n c o s t s Ca p i t a l r e p l a c e m e n t c o s t s Ca p i t a l r e p l a c e m e n t c o s t s
T h r o u g h l i f e co s t s Maintenan ce costs Renew als costs I n s p e ct i o n c o s t s
Works Procurement Works Procurement Maintenance W orks Maintenance W orks M e a s u r e d T e r m CoNRM ntracting M e a s u r e d T e r m Co n t r a c2 ting
NRM 2 & 2A
ECOBUILD Workshop
3rd March 2011
The RICS New Rules of Measurement (NRM) Suite Part 1 – Construction Works
‘The rul es have been written to provi de a standard set of measurement rules that are understandable by all those involved in the cost management of construction p rojects
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
• Employers • Project teams • Cost managers
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 mor e infor mation contact www.rics.org/nrm
ECOBUILD Workshop
3rd March 2011
The RICS NRM Part 3 for Maintenance Works What does it contain?
NRM Part 3 Maintenance
•
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 reporti ng and analysis – order of estimating, elemental cost planning and tendering
•
Priori tisation 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 info rmation – 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.
ECOBUILD Workshop
3rd March 2011
Alignment to the BS ISO 15686-5 and SMLCC
NRM Part 3 Maintenance
ECOBUILD Workshop
3rd March 2011
ISO 15686-5 & 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 15686-5
ECOBUILD Workshop
3rd March 2011
UK Cost Data Structure for Life Cycle Costing Maintenance Maintenance(RICS (RICSNRM3 NRM3and andBS8544) BS8544) 2.1 2.1Routin RoutineeServicing Servicing&&Maintenance: Maintenance: - -Planned tasks, including Planned tasks, includingminor minorrepairs repairs - -Reactive (first line/ unscheduled) Reactive (first line/ unscheduled) - -Proactive Proactive(tours/ (tours/monitor/ monitor/inspections) inspections) - -Redecoration (optional – include Redecoration (optional – include2.3) 2.3) 2.2 n and ider ‘A sset Reviews’ 2.2Conditio Condition andwwider ‘Asset Reviews’ and Maintenance Management and Maint enance Management - -Asset Assetreviews reviews(condition (condition/ /other otherfacets) facets) - -Maintenance and data management Maintenance and data management 2.3 et Investment 2.3Life LifeCycle CycleAss Asset Investment - -Major replacement Major replacementworks worksprogrammes programmes - -Upgrades (e.g. energy efficiency Upgrades (e.g. energy efficiencyetc) etc) 2.4 : 2.4Client ClientDefinable DefinableOther OtherElements Elements: - -Refurbis hment ts Refurb ishm entand andadaptation adaptationcos costs - -Client efinable Clientddefin ablecosts – costs –i.e. i.e.churn, churn,fees, fees, capital allowances; asset depreciation etc capital allowances; asset depreciation etc
ECOBUILD Workshop
3rd March 2011
Aligned with NRM/ BCIS and to CIBSE Guide M
NRM / BCIS Standard Form of Cost Analysis NRM Part 3 Maintenance 4th Edition In Q2 2011 (NRM aligned for construction)
ECOBUILD Workshop
3rd March 2011
CIBSE Guide – Economic Service Life Planning Desc ri p t i on
Ser vi ce L i f e
Heating Source Boiler Plant Boiler Unit Shell and tube boilers (steam and hthw) Water tube boilers (steam and hthw) Electrode/electric boilers (steam and hthw) Shell and tube boilers (mthw/lthw) Water tube boilers (mthw/lthw) Electrode/electric boilers (mthw/lthw) Cast iron sectional boilers (mthw/lthw) Steel boilers (mthw/lthw) Condensing boilers (mthw/lthw) Modular boilers Domestic boiler - condensing Domestic boiler - combination Domestic gas fired boilers Burner Force Draught Gas Burner Atmospheric Burner Oil burners (pressure jet) Solid Fuel Burner Water Heater Electric W ater Heater Instantaneous Water Heater Unvented Storage Heater HWS Cylinder (domestic type) Gas Fired Water Heater Solar Panel / Solar Thermal Calorifier & Heat Exchangers LPHW Calorifier LPHW Calorifiers - Copper LPHW Calorifers - Mild Steel Steam calorifier Steam Calorifiers - Copper Steam Calorifers - Mild Steel Heat Exchanger Heat Exchanger - Shell and Tube Heat Exchanger - Plate Evaporator Evaporator - Shell and Tube Evaporator - Coil Direct Expansion Trace Heating Cooling Source Chiller / Refrigeration Plant Packaged Chiller Centrifugal chiller Reciprocating chiller Screw chiller Absorption chiller Blast Chiller
B CIS Co d e
HVCA SFG 20 Ref
Build Code
Maintainable Assets 20 25 25 20 25 25 25 20 20 15 15 10 10
5E 5E 5E 5E 5E 5E 5E 5E 5E 5E 5E 5E 5E
05-19; 05-19; 05-19; 05-14; 05-14; 05-21; 05-14; 05-14; 05-04; 05-11 05-23; 05-29; 05-28;
15 20 15 15
5E 5E 5E 5E
05-(10-12); 07-03 05-(03-04); 07;01 05-13; 07-(04-07) 05-(25-27)
12 8 12 30 12 25
5D 5D 5D 5D 5D 5D
32-15 32-14 32-09; 32-13 32-15 32-13 53-01
25 20
5D 5D
32-(05-07) 32-(05-07)
25 20
5E 5E
32-(05-07) 32-(05-07)
25 15
5E 5E
32-(05-07) 29-(06-07)
20 20 20
5F 5F 5D, 5E, 5F
19-01 19-01 40-03
20 20 25 25 20
5F 5F 5F 5F
09-02; 09-02; 09-02; 03-04;
Service Life Expectancy
ECOBUILD Workshop
05-20 05-20 05-20 05-23 05-23 05-22 05-23 05-23 05;10;05-12; 05-13
PPM Tasks 05-30
Including Task Times & Skilling
12-03 12-01 12-02 09-05
3rd March 2011
RIBA Work Stages
OGC Gateways (Applicable to Projects)
RICS Cost Estimating, Elemental Cost Planning and Tender Document Preparation Stages
Life Cycle Applications of NRM RIBA Plan of Works
n o i t a r a p e r P
A
B
C
n g i s e D
Appraisal
Design Brief
Concept
D
Design Development
E
Technical Design
Build , Maintain & Replace Order of Cost Estimates 1
n o i t c u r t s n o C
e s U
F
Production Information
G
Tender Documentation
H
Tender Action
J
Mobilisation
K
Construction to Practical Completion
L
Post Practical Completion
Business Justification
2
Delivery Strategy
3A
Design Brief and Concept Approval
3B
Detailed Design Approval
3C
Investment Decision
4
Readiness for Service
5
Operational Review and
Build , Maintain & Replace Order of Cost Estimates 2
Build , Maintain & Replace Elemental Cost Plan 1
OGC Gateways
Build , Maintain & Replace Elemental Cost Plan 2
Build , Maintain & Replace Elemental/Tender Cost Plan 3 n o i t c u r t s n o C e r P
1
Work Package Tender Costs (Quantif ied) PPM Task Schedules (Quantif ied) LCR Work Schedules
Post Tender Costs Elemental Cost Plans - 4
As Buil t – Ap pl ic able main tai nabl e asset tasking & servic e life plans
Servicing & Maintenance Plans; and /or LCR works programmes
ECOBUILD Workshop
3rd March 2011
BS 8544 – Guide for LCC of Maintenance BS 8544;2011 Guide for Li fe Cycle Costi ng 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)
ECOBUILD Workshop
3rd March 2011
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 prior ity 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!
ECOBUILD Workshop
3rd March 2011
(Excluding Dispo sal)
ECOBUILD Workshop
3rd March 2011
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 bui ldin g targets •
Homes by 2016
•
Schools by 2016
•
Non domestic by 2019
• EPCs / DECs now mandatory (October 2008) • On sit e renewables t argets: PPS1 10%; PPS 22 • Carbo n Reduct ion Commit ment (April 2010) • Creation of a climate change departm ent (DECC) • Site Waste Management Plans mandatory (Landfill Tax) • Local Authorities: Local area agreements (N185 & N186) • Strategy for Sustainable Constru cti on • Sustainability Commitments (Cross industry champions)
ECOBUILD Workshop
3rd March 2011
CO2e – whole life carbon accounting (simplified case study) CO CO22
CO CO22
Embodied carbon: Operational carbon: CO2e emissions during operation
CO2e emissions during manufacturing of building materials and on-site construction ECOBUILD Workshop
3rd March 2011
Stage 0 - Baseline building 4 storey, square, concrete frame, 40% glazing, air conditioned, 8400m2 TOTAL CARBON = 742t (tonnes per annum) Operational carbo n = 416t
Embodied carbon = 327t
CONSTRUCTION COST
£1,734 / m 2
ENERGY COST 0%
0%
Workshop £19 / ECOBUILD m 2 / yr
LIFECYCLE ‘R’ COST
0%
£23 / m 2 / yr 3rd March 2011
Stage 1 – Building Form, Orientation and Ventilation TOTAL CARBON = 656t (tonnes per annum) Operational carbo n = 328t Simple model
Base case
Skin
Rotated
One side tapered
Both sides tapered
-6.9%
+7.2%
+/-4%
-8%
CONSTRUCTION COST
£1,701 / m 2
2%
ENERGY COST
15%
Workshop £17 / ECOBUILD m 2 / yr
Embodied carbon = 329t
LIFECYCLE ‘R’ COST
58%
£10 / m 2 / yr 3rd March 2011
Stage 2 – Solar shading and envelope improvements Reduce glazing to 25% of façade + incorporate shading TOTAL CARBON = 616t (tonnes per annum)
• Reduce glazing t o 25% of f açade • High perform ance glass
Operational carbo n = 286t
• Introduce shading • Temperature relaxation 2o c • Improve air tightness – ‘U’ Values by 20% • Increase insulation • Thermal mass
CONSTRUCTION COST
£1,703 / m 2
Embodied carbon = 331t
2%
ENERGY COST
19%
Workshop £16 / ECOBUILD m 2 / yr
LIFECYCLE ‘R’ COST
58%
£10 / m 2 / yr 3rd March 2011
Stage 3 – Systems Optimization, Controls + Efficient Lighting TOTAL CARBON = 592t (tonnes per annum)
High efficiency LED fittings:
Presence detection
Time and daylight linking
Presence detectors
Time switches
Operational carbo n = 260t
Twilight switches
Embodied carbon = 332t
CONSTRUCTION COST
£1,730 / m 2
ENERGY COST 0%
28%
Workshop £14 / ECOBUILD m 2 / yr
LIFECYCLE ‘R’ COST
58%
£10 / m 2 / yr 3rd March 2011
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 carbo n = 202t
Embodied carbon = 333t
CONSTRUCTION COST
£1,793 / m 2
ENERGY COST 3%
43%
Workshop £11 / ECOBUILD m 2 / yr
LIFECYCLE ‘R’ COST
42%
£13 / m 2 / yr 3rd March 2011
Stage 5 – Embodied Carbon Reduction 20% Recycled Content + Use of Prefabricated Materials TOTAL CARBON = 488t (tonnes per annum)
• Recycled Content
Operational carbo n = 202t
• Partial replacement of cement with fly ash • Use of “ Bubble-Deck” flooring system
Embodied carbon = 287t
CONSTRUCTION COST
£1,793 / m 2
ENERGY COST 3%
43%
Workshop £11 / ECOBUILD m 2 / yr
LIFECYCLE ‘R’ COST
42%
£13 / m 2 / yr 3rd March 2011
Construction, Life Cycle and Energy Costs (Informative)
ECOBUILD Workshop
3rd March 2011
Construction, Life Cycle and Energy Savings (Informative) Summary of Resultant Savings (over 25-year period)
Project Solution
Financial (£)
Carbon (tonnes)
Baseline Total Cost
£26,223,343
18,560t
Stage 5 Total Cost
£21,137,483
12,209t
Total Savings
£5,085,859
6,351t
Total Savings (%)
19%
34%
ECOBUILD Workshop
3rd March 2011
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)
ECOBUILD Workshop
3rd March 2011
Carbon Critical Costing (80/20) - by Functional Types
ECOBUILD Workshop
3rd March 2011
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
ECOBUILD Workshop
3rd March 2011
The RICS New Rules of Measurement (NRM) Suite Part 1 – Construction Works
‘The rul es have been written to provi de a standard set of measurement rules that are understandable by all those involved in the cost management of construction p rojects
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
• Employers • Project teams • Cost managers
Addendums to the NRM Parts 1, 2 and 3;
Operations & Environmental Order of cost estimating: elemental cost planning & procurement of Energy, Carb on, Water and Waste.
For mor e infor mation contact www.rics.org/nrm
ECOBUILD Workshop
3rd March 2011
Embedding O&E Metrics within the NRM Standards Order of Cost Estimating
Elemental Cost Planning
Procurement
Construction
Part 1 NRM Addendum
Pt 2 NRM Add
Part 1 NRM Addendum
Pt 2 NRM Add
Replacement
Operation Performance of buildings Wider portfolio measures
Green Property Alliance Metrics Including classification of building types and norms of operation
Maintenance
Part 3 NRM Addendum +Ops/Environmental Environmental Occupancy (property) Disposal / End of life
Green Property Alliance Metrics Including use of the IPD environment code; Global reporting indicators
ECOBUILD Workshop
D E I D O B M E L A N O I T A R E P O
3rd March 2011
