SMM, NRM & NEC3 Contracts

Whilst on the subject on BoQs (ps, just how many projects these days use BoQs I wonder?!) RICS has fairly recently replaced SMM with the New Rules of Measurement (NRM), which is a toolkit for cost management. The attempt is to bring consistency to the cost management of construction and maintenance work, giving surveyors a set of rules for measuring and capturing cost data. Of course, this is aimed at the building industry (I'm not sure if it is worldwide or just UK, would be a shame if just the latter).

The good news is that this seems to have been written on the basis of contract neutrality so can be used with NEC3 Contracts. Care would have to be taken though to fully understand the new rules as they continue to cover traditional (and in my opinion completely outdated) practices of things like dayworks and provisional sums. The only use of BoQs with NEC3 Contracts are Options B&D of both NEC3 ECC & ECS - these both envisage remeasurement of an approximate BoQ. NRM seems to provide for firm and approximate BoQs, firm BoQs are not provided for in NEC3 Contracts.

In principle, with some care, the NRM should be readily usable with those NEC3 Contracts that support approximate BoQs.

Any other thoughts, comments, differences of opinion, someone extolling the virtues of dayworks (!) would be good.

Rob

CESMM4 & NEC3

Just a note that the Civil Engineering Standard Method of Measurement has been updated from CESMM3 to CESMM4. For the first time it has been written to be contract neutral and also brings the method into line with changes in industry practices and extends its usages into all new areas. Sample pages available at icevirtuallibrary.com/cesmm. The most appropriate NEC3 Contracts this would be used in are Options B & D of NEC3 ECC & ECS. Happy BoQ preparing....

IUK Infrastructure Cost Review 2012

In case you missed this, the IUK 2012 cost review has been launched. Interested reading, some good references and the ship seems still to be sailing in what I would call the right direction - towards better collaboration/more efficiency/less waste, or at least that's what the radar suggests! Some good references to NEC and good opportunities for NEC to be at the heart of much of what IUK wish to achieve. Enjoy....

Rob

http://www.hm-treasury.gov.uk/d/iuk_cost_review_report2012_230412.pdf

IACCM 2011 top terms in negotiation

In its 10^th annual survey of the most frequently negotiated terms and conditions, IACCM once more reveals that business contracts are constraining the value that can be achieved from high-performing relationships. For the first time, the study also identifies the most common sources of failure in contract outcomes and this indicates the potential value that could come from a robust contracting strategy and competence. 

Limitation of liability is sadly still nr 1 followed by indemnification, and there's a noticeable trend back towards the penalty type provisions. If there was any way of measuring roughly how much effort went into such negotiations we would probably be amazed and actually do something about it. Maybe next report IACCM?

This is a very interesting read, the only slight downside is you have to register to get the report.  The link is below.

Rob

http://www.iaccm.com/library/?id=3958#top

IACCM most negotiated terms & conditions survey

Dear all,

Recently, The International Association for Contract & Commercial Management (IACCM) launched its 11th annual study of ‘the most negotiated terms and conditions’. I've found this to be really interesting in the past and will upload the results when completed. In the meantime please find time to complete this. IACCM say........

"This unique study is used by companies and advisors around the world to develop and inform their contracting and negotiation strategies. As a contributor to the survey, you can be among the first to know the results – as well as contributing to the status and understanding of our professional community.

This survey will take 5 – 10 minutes to complete. We ask you to tell us which terms you negotiate with greatest frequency, as well as your view regarding some key trends in negotiation. The results of this study offer insights to jurisdictional, geographic and industry perspectives, ensuring that it can immediately be put to practical use as well as inspiring new ideas and approaches to managing today’s complex negotiations environment."

Thanks,
Rob

https://www.surveymonkey.com/s/topterms2012

Student NEC research

Dear all,

Another student in need of a bit of your time. The student says....

"I am currently in my final year of an Honours Degree in Quantity Surveying in the School of the Built Environment at Heriot Watt University. For my dissertation, I have chosen the topic "Does the NEC3 Contract improve the Client and Contractor relationship"

As part of my research I require input from within the construction industry from those who have had practical experience in using this contract. I am writing to you to ask for the link below to my questionnaire to be forwarded onto anyone who would be appropriate to contribute their opinions.This will assist me in gathering the research required to allow me to comprehensively complete my dissertation."
Rob

http://www.surveymonkey.com/s/63PMBP6

The National Building Specification (NBS) launches procurement survey

Dear all,

The NBS would like to ask for your feedback about the construction contracts you use and any legal issues you may have encountered. This survey covers projects that were commenced, completed or went into dispute in 2011. It relates to UK based projects and international projects handled from the UK by UK based companies.

The questionnaire should take no more than about 10 minutes of your time, depending on your answers. All responses are completely confidential and will be treated in accordance with the MRS code of conduct; your personal details will not be shared with others.  All completed surveys can be entered into a prize draw for a chance to win an Apple iPad.

Thanks and good luck!
Rob

http://www.thenbs.com/support/survey/contracts-and-law/index.htm