International Construction Measurement Standards ICMS Tayside Construction Forum

International Construction Measurement Standards (ICMS) Tayside Construction Forum Professor Malcolm Horner BSc Ph. D CEng FICE FRSE Hon FRIAS 1

Agenda • • Introduction Purpose – What’s the need? Why bother? Evolution of the Standards Overview of the Standards 2

ICMS 3

What are the aims of ICMS? • Construction cost to be consistently and transparently benchmarked; • The causes of difference in costs between projects can be identified; • Properly informed decisions on the design and location of construction projects to be made; and • Data to be used with confidence for project financing & investment, programme and decision-making and related purposes 4

Why are they important? Knowing what is, and what is not included in the construction cost of a project is vital to: • Understanding how it compares with other projects within or outside that market • Accurately assessing value-for-money • Assessing and benchmarking project construction cost • Reporting national and international statistics on construction output 5

Standards used today? • The standards used today differ within countries and from one jurisdiction to the next • Depending on where the project is located the costs might include some or all of the following elements: – – Labour and materials Land acquisition Professional Fees Client costs 6

Why are they important? Different approaches to presenting the costs of construction can produce results that vary by as much as 25 -30% due to inconsistent methodology and standards 7

What are the implications of global inconsistency? • Inability to accurately compare project construction costs • Investment risk • Lack of transparency Leading to: • Under-investment in construction projects • Time and cost overruns 8

Who will benefit from ICMS? • Any party that has a direct or indirect interest in construction projects will benefit • Those investing in or managing construction projects will benefit significantly • Financial institutions will have a consistent basis for assessment of project funding requirements • The public will benefit through enhanced, prudent assessments of public projects 9

Evolution – The ICSM Coalition • Formed on 17 June 2015 after a formal meeting at the International Monetary Fund in Washington DC • Currently 44 coalition members including the ICE 10

Evolution – The Standard Setting Committee • An independent Standards Setting Committee (SSC) was established to draft the ICMS • The SSC comprises 27 experts from around the world • One private and two public consultations 11

Framework The hierarchical framework has four levels: Level 1: Project or Sub-Project Level 2: Cost Category Level 3: Cost Group Level 4: Cost Sub-Group

Framework Sub - Project Cost Categories Cost Groups Cost Sub-Groups Project

Framework

Cost Categories (Level 2) and Groups (Level 3) Total Capital Cost (1 + 2) 1 1. 02 1. 03 1. 04 1. 05 1. 06 1. 07 1. 08 1. 09 1. 10 Capital Construction Costs Demolition, site preparation and formation Substructure Structure Architectural works | Non-structural works Services and equipment Surface and underground drainage External and ancillary works Preliminaries | Constructor’s site overheads | general requirements Risk Allowances Taxes and Levies

Cost Categories (Level 2) and Groups (Level 3) 2 Associated Capital Costs 2. 01 2. 02 2. 03 2. 04 Work and utilities off-site Post-completion loose furniture, fittings and equipment Construction-related consultants and supervision Risk allowance

Cost Categories (Level 2) and Groups (Level 3) 3 Site Acquisition and Client’s Other Costs 3. 01 3. 02 Site acquisition Administrative, finance, legal and marketing expenses

Capital Construction Cost Group (Level 3) 1. 05 Services and equipment Scope: All fixed services and equipment required to put the completed project into use, whether they are mechanical, hydraulic, plumbing, fire-fighting, transport, communication, security, electrical or electronic, excluding external underground drainage.

Associated Capital Cost Group (Level 3) 2. 01 Work and utilities off-site Scope: All payments to government authorities or public utility companies to connect public work and utilities to the site, or services diversions, to enable the Project

Buildings Sub Groups (Level 4) 1. 040 Internal divisions: 010 - non-structural internal walls and partitions 020 - shop fronts 030 - toilet cubicles 040 - moveable partitions 050 - cold rooms 060 - internal doors 070 - internal windows 080 - roller shutters and fire shutters 090 - sundry concrete work

Water treatment works Pipelines Well drilling Power generating plants Chemical plants Refineries ◙ ◙ ◙ ◙ ◙ ◙ Cost Category (Level 2) Cost Group (Level 3) Cost Sub-Group (Level 4) 1 Capital Construction Costs 1. 03 Structure 1. 03. 010 Piers and towers ◙ 1. 03. 020 1. 030 1. 03. 040 1. 03. 050 Suspension system Decks Tunnel lining Road/track base ◙ ◙ ◙ 1. 03. 060 Pavement ◙ ◙ 1. 03. 070 Service roads and approaches ◙ ◙ 1. 03. 080 Parapets/edge treatment ◙ ◙ 1. 03. 090 Main structures 1. 03. 100 Tanks, rigs, storage containers and the like 1. 03. 110 Supports for tanks, pipes and the like ◙ Note Waste water treatment works Tunnels Bridges Description Railways Item Roads and motorways Civil Engineering Sub Groups (Level 4)

Attributes and Values - Common Project Attributes Project Values Common Project level only Report Price Level Currency Conversion Programme Site Procurement

Attributes and Values - Common Price Level ISO currency code (e. g. USD) Cost base date Price basis (month and year) fixed | fluctuating

Attributes and Values - Buildings (A construction with a cover and enclosure to house people, equipment or goods for persistent daily use) Code Local functional classification standard name of standard code number of construction Works Functional type residential | office | commercial | shopping centre | industrial | hotel | car park | warehouse | educational | hospital | airport terminal | railway station | ferry terminal | plant facility | other stated Nature Grade (qualitative description to be read in conjunction with the location) Environmental grade and name of environmental certification new build | major refurbishment | temporary ordinary quality | medium quality | high quality

Attributes and Values - Buildings Principal design features structural (predominant) external walls (predominant) environmental control degree of prefabrication Project Complexity shape (on plan) design method of working timber | concrete | steel | load-bearing masonry | other stated stone | brick/block | render/block | curtain walling | other stated non-air conditioned | air conditioning less than 25% l up to 50% l up to 75% I up to 100%, of Capital Construction Costs circular, elliptical or similar | square, rectangular, or similar | complex simple | bespoke | complex sectional completion | out-of-hours working | confined working | other stated

Attributes and Values – Buildings Project Quantities Site area (within legal boundary of (m 2 | ft 2) building site, excluding temporary working areas outside the site) Covered area on plan (m 2 | ft 2) Gross external floor area as IPMS 1 (m 2 | ft 2) Gross internal floor area as IPMS 2 (m 2 | ft 2) Functional units occupancy | number of bedrooms | number of hospital beds | number of hotel rooms | number of car parking spaces | number of classrooms | number of students | number of passengers | number of boarding gates | other stated

Attributes and Values –Civil Engineering Railways (A permanent way, rail track composed of two parallel rails fixed to sleepers, or single monorail that includes spurs, sidings and turnouts for train traffic or the like, including tramways, metro rails, light rails and other rapid mass transit systems) Works Functional type high speed | express | light rail | tram I freight l mixed traffic l other stated Nature new build | major refurbishment Environmental grade and name of environmental certification status targeted | achieved none Principal design features position at grade | in tunnel | elevated | other stated design speed (km | miles per hour) train power systems Overhead AC | overhead DC | third or contact rail(s) DC l diesel electric l other stated number of tracks track gauge construction rigidity flexible | rigid rail joints fish-plated | welded

Sub-structure/structure boundary

Sub-structure/structure boundary

ICMS Partners 30

How can I get involved? • Professional and standardssetting bodies are encouraged to join the coalition and to adopt ICMS. • Private firms, universities and governments are invited and encouraged to become voluntary ‘partners’ and work with the coalition to develop, raise awareness of and implement ICMS. 31

International Construction Measurement Standards (ICMS) – Get Involved! www. icms-coalition. org 32