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
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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’
3rd March 2011ECOBUILD Workshop
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
The RICS New Rules of Measurement (NRM) Suite
3rd March 2011ECOBUILD Workshop
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
The RICS New Rules of Measurement (NRM) Suite
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
NRM Part 3Maintenance
Alignment to the BS ISO 15686-5 and SMLCC
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
NRM Part 3Maintenance
NRM / BCISStandard Form of
Cost Analysis
4th EditionIn Q2 2011
(NRM alignedfor construction)
Aligned with NRM/ BCIS and to CIBSE Guide M
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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!
3rd March 2011ECOBUILD Workshop
(Excluding Disposal)
3rd March 2011ECOBUILD Workshop
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)
3rd March 2011ECOBUILD Workshop
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%
3rd March 2011ECOBUILD Workshop
Stage 1 – Building Form, Orientation and Ventilation
£1,701 / m2
CONSTRUCTION COST
£17 / m2 / yrENERGY COST
15%2%£10 / m2 / yr
58%
Operational carbon = 328t
Embodied carbon = 329t
LIFECYCLE ‘R’ COST
TOTAL CARBON = 656t(tonnes per annum)
Simple model Skin Rotated One side tapered Both sides tapered
Base case -6.9% +7.2% +/-4% -8%
3rd March 2011ECOBUILD Workshop
Stage 2 – Solar shading and envelope improvements
£1,703 / m2
CONSTRUCTION COST
£16 / m2 / yrENERGY 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%
TOTAL CARBON = 616t(tonnes per annum)
Operational carbon = 286t
Embodied carbon = 331t
Reduce glazing to 25% of façade + incorporate shading
LIFECYCLE ‘R’ COST
3rd March 2011ECOBUILD Workshop
Stage 3 – Systems Optimization, Controls + Efficient Lighting
High efficiency LED fittings: Presence detection Time and daylight linking
£1,730 / m2
CONSTRUCTION COST
£14 / m2 / yrENERGY COST
0% 28%£10 / m2 / yr
58%
TOTAL CARBON = 592t(tonnes per annum)
Operational carbon = 260t
Embodied carbon = 332t
LIFECYCLE ‘R’ COST
Time switchesPresence detectors Twilight switches
3rd March 2011ECOBUILD Workshop
Offset carbon emissions through the use of renewable technologies
Stage 4 – Biofuel Boiler + PV PanelsClosing the gap – Renewable Technologies
£1,793 / m2
CONSTRUCTION COST
£11 / m2 / yrENERGY COST
43%3% £13 / m2 / yr
42%
TOTAL CARBON = 535t(tonnes per annum)
Operational carbon = 202t
Embodied carbon = 333t
LIFECYCLE ‘R’ COST
3rd March 2011ECOBUILD Workshop
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
£11 / m2 / yrENERGY COST
3%43%
£13 / m2 / yr42%
Operational carbon = 202t
Embodied carbon = 287t
20% Recycled Content + Use of Prefabricated Materials
LIFECYCLE ‘R’ COST
TOTAL CARBON = 488t(tonnes per annum)
3rd March 2011ECOBUILD Workshop
Construction, Life Cycle and Energy Costs (Informative)
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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)
3rd March 2011ECOBUILD Workshop
Carbon Critical Costing (80/20) - by Functional Types
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
The RICS New Rules of Measurement (NRM) Suite
3rd March 2011ECOBUILD Workshop
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
3rd March 2011ECOBUILD Workshop
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
For more information contact www.rics.org/nrm
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