© The College of Estate Management 2013

Paper 0351V3-0

Alternative methods of measurement

Contents

Aim and Learning outcomes

1. Introduction

2. Rules for measurement

3. Different standard methods

3.1 Civil engineering projects
3.2 Industrial engineering projects
3.3 POMI: RICS International Method of Measurement
3.4 Method for contractors
3.5 Hong Kong, Singapore and Malaysia

4. Issues to consider if there are no rules

5. Changing the rules

6. Summary
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Aim
 To make you aware of the philosophies behind various standard methods of
measurement and the creation of measurement rules.

Learning outcomes
After reading this paper you should be able to:

 Identify the appropriate standard method of measurement to choose for

measuring a specific project.

 Understand the need for measurement rules and be able to create appropriate
rules where none exist.

 Discuss why there might be a need to change measurement rules, and the
procedure to follow.

 Explain the benefits and problems of using a standard method of measurement.

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1 Introduction
The range of standard methods of measurement available for use is quite large, but in
practice surveyors tend to use the one they are directed to, or the one they are most
familiar with. Whether it is the most appropriate rarely crosses their minds. However,
why measurement is carried out, what is measured and how, should be given careful
consideration, as it can be a costly and time-consuming activity.

In the UK a standard method has been used to measure bills of quantities for building
works since 1922, and this has been amended over the years as construction
techniques and practices have developed. Other standard methods have been
introduced for civil engineering projects, roads and bridges, pipelines, engineering
plants and small works for which the rules in the building standard method do not
seem appropriate.

The purpose of measurement is to produce a document that can be:

 priced for tendering by the contractor;

 used post-contract for the financial control and management of building
contracts.

The items measured and the way they are described should therefore relate to these
requirements.

There are other considerations:

 As projects have become international, with project team members coming

from different countries, standard methods have also had to consider a wider
range of construction practices and contract administration needs. International
methods of measurement have been developed: one was produced by RICS
and the Association of Cost Engineers in 1984.
 In the past, UK surveyors took their skills around the world to places like
Australia, Africa, Asia and the Caribbean, using the standard method of
measurement (SMM) they were familiar with. The subsequent development of
these standard methods has not been at the same pace or to meet the same
needs as in the UK. Some countries, for example, still use SMM5 (first
published in 1963), as this seems most appropriate to their local industry –
trades are traditional and contractors still employ a large workforce, with
subcontracting being in the minority.
 Consideration must also be given to whether a full bill of quantities is required
for the contractor to submit a tender and for the subsequent contract
administration.

With management contracting, for example, the main contractor submits a

price for managing the project and is not required to price a full bill. He may
ask each package contractor to submit a lump sum for his work and to price a
schedule of rates.

In this instance the method of measurement is decided by the person doing the
pricing. The risk for any errors is also passed down the chain, the package
contractor taking full responsibility for any errors in his quantities. This
approach is used for many large projects, but it does require each of the
package contractors to measure the work, which duplicates effort and expense.
Post-contract management is relatively straightforward, as only variations are
paid for, based on the schedule of rates.
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With design and build projects, the tender is based on the contractor pricing
his own quantities, so the need for a standard method is not so strong. The
estimating department may dictate how the work is to be measured, and
approximate quantities or cost planning approaches are often used. At tender
stage the design and working drawings are not complete and pricing in detail is
not possible. Once the design has been completed, subcontractors are often
asked to submit tenders on a drawings and specification basis, again avoiding
the need for traditional bills of quantities.

In this paper we look at the principles of establishing measurement rules, and discuss
the various standard methods that are available.

2 Rules for measurement

The need for rules arose as estimators tried to price documents prepared by different
surveying practices using different approaches. Confusion over the meaning of items,
and what was included and what was not, led to many arguments between contractors
and surveyors.

Establishing the first SMM took a considerable time. A joint committee from the
Surveyors’ Institution and the Quantity Surveyors’ Association was set up in 1912,
but it was not until 1922 that the first SMM was published. As contracting practices
have changed and technology has developed, the requirements of the SMM have
changed too. The latest edition, SMM7 Revised, was published in 1998, and has now
been superseded by the RICS New Rules of Measurement: Detailed Measurement for
Building Works (NRM2), published in 2012.

NRM2 aims to:

 provide a standard set of measurement rules for the procurement of building

works that are understandable by all those involved in a construction project,
including the employer, thereby aiding communication between the
project/design team and the employer;
 provide a structured basis for measuring building works and presents a
consistent approach for dealing with other key cost components associated
with a building project when preparing bills of quantities and quantified
schedules of works – the rules represent the essentials of good practice;
 outline the benefits of detailed measurement, describes the purpose and uses of
NRM2, and explains the function and work breakdown structures, information
required, key constituents and rules of measurement for the production of bills
of quantities.

You should read the general rules of your SMM, as they lay down the principles
used for measuring any item – e.g. what is deemed to be included in all items, when
fixing needs to be mentioned, when composite items can be measured, whether
‘notwithstanding’ clauses can be used, and what to do if the drawn information is not
available.

The rules required for the measurement of an item therefore need to state what should
be included in the quantities section of the bill of quantities. It is normal to include
the specification and preambles as well as the quantities. Most standard methods of
measurement identify the preliminary items and general conditions that should be
included in the quantities section, along with detailed rules for the measurement of
the items of works required.
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The rules for measuring specific work items will include:

 what is required in the description of the item;

 what is deemed to be included in addition to the standard items;
 how the item should be measured (NRM2 has this under measurement rules);
 clarifications under definition rules and coverage rules.

3 Different standard methods

The following list of the standard methods in use worldwide is not an exhaustive one.
However, it shows their principal differences in approach, and the types of projects
they should be used for.

3.1 Civil engineering projects

The UK has three standard methods for civil engineering works:

 Civil Engineering Standard Methods of Measurement, 4th edition (CESMM4)

 SMM for highways
 SMM for roads and bridges.

Of these the most widely used is CESMM4. The others are more specialised and are
usually only used on government projects.

There follows a comparison between the principles underlying the building NRM2
and the civil engineering CESMM4 methods of measurement.

General principles
Whilst there may appear to be some obvious similarities in the arrangement of
CESMM4 and NRM2 – both are based on a tabulated format, and descriptions in both
documents are constructed from decomposed phrases – the two documents are based
upon widely differing principles and in fact serve different needs.

The essential difference between the two documents is set out in their respective
general principles. Reread the general aims from NRM2 stated above and contrast
them with the General Principles of CESMM4:

The object of CESMM4 is to set forth the procedure according to which the Bill of
Quantities shall be prepared and priced and the quantities of work expressed and
measured.
(CESMM4 2012, clause 2.3)

The following issues relating to CESMM4 are important:

 CESMM4 is a procedure according to which bills of quantities shall be

prepared and priced. This is much more than simply a code of measurement.
CESMM4 includes separate sections dealing with the preparation of the bill of
quantities (Section 5), and completion, pricing and use of the bill of quantities
(Section 6).
 CESMM4 is very specific about the construction of bill descriptions. Section
5, Clause 5.11 states that ‘all work shall be itemised and the items described in
accordance with the Work Classification’.
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 There is, however, no intention that the bill shall fully describe the required
work. CESMM4 in fact defines the bill of quantities (Section 1, Clause 1.7) as
being merely ‘a list of items giving brief identifying descriptions’. The
document is clearly intended to support accompanying specifications and
drawings, all of which the estimator must refer to in order to price the work.
Barnes (1992: 8) sees this difference as extremely significant:

This definition [Clause 1.7] is important as it directly implies the difference

between the status of the Bill of Quantities under the ICE Conditions of
Contract and under the building or JCT conditions of contract. In the
building contract the Bill of Quantities is the statement of what the
Contractor has to do in terms of both definition and quantity … The
estimator pricing a civil engineering bill of quantities will derive most of
the information he needs … from the drawings and specification. He will
use the bill as a source of information about quantities and as the vehicle
for offering prices to the employer.

 The ICE Conditions of Contract, upon which CESMM4 is based, is not a lump
sum form of contract. A civil engineering bill is therefore not an accurate
statement of the quantities of work required, but simply a schedule of rates.
The quantities of work required will be remeasured as the work is carried out,
and the final contract sum will be calculated from the remeasured quantities
and priced bill rates.
 CESMM4 specifically requires that bills of quantities include a separate
section, entitled ‘Method Related Charges’, which makes provision for the
contractor to include lump sum figures relating to his intended method of
working. These costs are not considered to be proportional to the quantities of
work, and are not included in the prices for individual items in the bill. These
charges therefore allow the contract sum to be more easily adjusted if the
engineer should instruct the contractor to carry out the work in a different way.

Comparison of the measurement rules

There are many detailed differences between the measurement rules. These
differences arise mainly for two reasons:

 The different kinds of work inherent in civil engineering projects

The most obvious difference here is in the list of work sections. Building work
consists of many different specialist trades, each of which covers a large
number of measurable items. The degree of detail required by NRM2 is
therefore somewhat greater than in a civil engineering bill. Civil engineering,
on the other hand, generally consists of large quantities of relatively small
numbers of work items. In addition, it is a basic principle of CESMM4 that
bills of quantities should be as brief and simple as possible.

 Differences in the way costs are incurred in civil engineering and building
projects
The nature of the work means that, for many items, works costs for building
projects and civil engineering schemes will be incurred differently.

Specific differences can be found by making a direct section-by-section comparison

of the two SMMs, but this is not expected for this module. It is more important to
understand the reasons for the differences than to be able to identify each one.
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3.2 Industrial engineering projects

The Standard Method of Measurement for Industrial Engineering Construction was
first published in December 1984 by the Joint Documentation Board of the Institute
of Quantity Surveyors, the Association of Cost Engineers and RICS.

The purpose of this document is stated in the preface:

To contribute to the framework of project documentation and in particular to

provide measurement principles for the estimating, tendering, contract
management and cost control aspects of industrial engineering construction.

The preface also explains what is meant by industrial engineering construction:

Equipment, facilities and structures which will ultimately carry out a mechanical
function, a manufacturing activity or a process operation.

It then goes on to list the industries at which it is particularly aimed.

General principles
This standard method recognises the need to separate fabrication from erection of a
great deal of this type of construction work, along with the common practice of
supplying materials and equipment as ‘free issue’ to contractors. It also restricts the
number of work sections so as not to clash with other standard methods such as those
for civil engineering and pipelines.

It is used for the preparation of schedules of work that will be remeasured, and for the
preparation of bills of quantities. It also recognises that for this type of project the
contractor often carries out some or all of the design. Here the extent and
responsibility of the contractor-designed work needs to be defined.

Work sections
Unusually, there is a section on scaffolding in the work sections of this standard
method. This is normally considered to be temporary work and therefore not
measurable.

Plant – a key factor in this type of project – also has a whole section devoted to it.
However, this type of plant is not cranes or concrete mixers but the permanent
installation of processing plant, including vessels, tanks, towers, machinery and
equipment, together with interconnecting steelwork and ancillaries.
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3.3 POMI: RICS International Method of Measurement

The Principles of Measurement (International) for Works of Construction was first
published in 1979 by RICS, which had appointed a committee to prepare principles of
measurement for use in countries where existing rules were inappropriate or did not
exist. The document has provided a commonly agreed basis of measurement, but does
rely on detailed specification and drawings to be produced.

The rules have been made particularly flexible in order to cope with the wide range of
practices and technologies that may be encountered. The objectives of bills of
quantities are given as:

 To assist in the preparation of tenders by providing for measurement of

quantities on a uniform basis.
 To provide a basis for the financial control of a project, in accordance with the
conditions of contract.

This requires the contract to be designed by a consultant prior to tender.

General principles
All the standard methods we have considered so far have had similar general
principles – the number of decimal places to measure to, what needs to be included in
a description, the items that are deemed included. It is worth reading these general
principles again in your own standard method to refresh your memory of what is
covered.

This standard method differs quite drastically in its detail from other standard
methods. There is no room to identify all the deviations here, but one unusual feature
is the first work section, Site Works. This section includes the items of exploration,
testing, demolition, etc., but then goes on to include drainage, paving, fencing, etc.
Often it is difficult to locate particular items of work. An index would be useful, but
this document does not have one. There has been a fairly general adoption of this
standard method for international projects in which the detail of the SMM7 is perhaps
not required and fees do not always stretch to producing detailed bills of quantities.

3.4 Method for contractors

In 1993 the Chartered Institute of Building published an occasional paper, Builders’
Quantities for Contractors’ Management, by C L Pasquire. Many builders measure
their own quantities for estimating and buying purposes and, more recently, for
subletting work. This document was aimed at developing a set of measurement rules
to improve the post-contract management of construction resources within
contractors’ organisations.

The document differs from the others we have looked at, in that it considers how a
contractor uses the quantities rather than producing a tendering document that can
also be used for post-contract financial control. In themselves, traditional bills of
quantities do not provide the contractor with a very good post-contract management
tool. This document therefore defines the management functions and explains the
resources used in a construction project.
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General principles
The document recommends the use of ‘buying units’ as the unit of measurement, and
places measurement emphasis on labour requirements. For example, plasterboard is
traditionally measured by the square metre and bought by the sheet. Here the sheets
are numbered and additional time to transport, cut and fix are required.

The work items covered cannot be easily measured straight from the drawing, and
considerable expertise is required to interpret how the work will be carried out and to
convert to material usage. The document follows a tabular format and the
measurement sections follow a typical operational sequence. Items of work that are
generally subcontracted are not included, such as piling or steelwork. This may well
cause problems when trying to establish or manage the value of post-contract
variations.

A typical section is shown in Table 1. These are the only rules for excavation
included in the document.

TABLE 1

Unit of Work piece item Directly employed Subcontract labour

measurement labour and/or plant and/or plant
In m³ net Bulk excavation; per Hours for excavator Cost for total
m³ stating total net and operatives; per excavation per m³
quantity; including plant type stating
working space and/or output
removal of spoil for
battering sides of
excavations
In m Extra over: for Additional cost for
excavating trenches trenches; per metre
per m; each state average m³ per m
compartment run; each
separately compartment
separately
In Nr Extra over: for Additional cost for
excavating in Nr; small compartments;
small compartments; in Nr; state
stating approximate approximate
dimensions dimensions and m³
each
In drop Extra over: for deep Additional cost for
excavation; each deep excavation; each
compartment compartment
separately; per separately in m³
defined drop depth; stating maximum
stating approximate depth
m³
In m³ net Extra over: for Additional cost for
additional time breaking out defined
required for breaking material type; per m³;
out defined material per compartment
type (like types to be
grouped together); per
m³ per compartment

Clarifications are included in an appendix to help you understand what is to be

measured and how. From Table 1 it can be seen that what constitutes a compartment
needs to be explained, and the terms ‘deep’ and ‘small’ need to be defined.
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Comment
Without direct support from the industry or government, it is difficult to see what
would persuade contractors to measure the work for themselves using this document.
They are often short-staffed and working under pressure. Estimators may well
measure the work – and indeed they have little option for drawings and specification
projects – but this is normally done by using approximate quantities. Pricing is then
carried out using data prepared for the purpose. Most pricing data contain labour,
plant and material components, allowing the contractor to establish basic resource
requirements. To start learning a new process for measurement requires a certain
conviction that the benefits will far outweigh the costs.

From the conclusions drawn in this document, it seems that, once a contractor has
been awarded a contract, a certain amount of transformation of quantities is required
for the document to be useful for the production process.

With the increasing swing away from the client producing bills of quantities and
towards contractor-designed work, the function of measurement needs to be carefully
considered. However, with the increasing use of subcontracting, the responsibility for
measurement moves further down the supply chain.

3.5 Hong Kong, Singapore and Malaysia

These countries have based their standard methods on earlier editions of the UK
Standard Method of Measurement for Building Works. They have made subsequent
changes as their own surveying professions have grown and their construction
industries developed. This section is intended not as a comparison of each of these
SMMs but as an overview of the approach taken.

Hong Kong
Hong Kong now has two standard methods in common use:

1. Hong Kong Standard Method of Measurement of Building Works – 4th edition

2. Standard Method of Measurement for Civil Engineering Works, published by
the Hong Kong Government.

The Hong Kong Standard Method of Measurement for Building Works – 4th edition
was introduced in 2005 and published by the Hong Kong Institute of Surveyors. This
edition, initiated by the Hong Kong branch of the Royal Institution of Chartered
Surveyors, was subsequently prepared under the auspices of the Hong Kong Institute
of Surveyors. It deals with the measurement of both building works and building
services in one document, and covers all such works, incorporating up-to-date
technology and construction procurement practice.

Again, these SMMs are not meant to be inflexible documents, as noted in the
Principles of Measurement section:

In particular and exceptional circumstances the surveyor is expected to use his

own discretion and to adopt special methods, provided the principles laid down
are observed and the intention is made clear to the estimator.

There is no great similarity in approach, however, between the Hong Kong Standard
Method for Civil Engineering Works and CESMM4. The Hong Kong standard
method has greater detail as to the preliminary items that are required and does allow
for changes to the rules. Within each work section there are also differences, a prime
one being that there is no requirement to separate the supply and placement of
concrete.
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Singapore
The Singapore standard method follows the approach taken in the UK’s SMM5 and
has been updated regularly to allow for new technologies. The structure and look of
the document has not been changed, so it is more readily accepted by the industry.

Malaysia
Malaysia introduced its latest Standard Method of Measurement of Building Works in
February 2001.

When any new standard method is introduced, it is normal for there to be a period of
time in which surveyors continue to follow the procedure they are most familiar with.
They can work quickly and efficiently; they know where the pitfalls are and how to
interpret the document. Changing to a new method also confuses contractors and
estimators, so additional tendering time is also prudent.

The latest standard method has not adopted the tabular approach favoured by many,
but has introduced many of the new technologies into the work sections. It has
therefore updated the previous standard method without radically changing its
appearance or approach.

4 Issues to consider if there are no rules

At some time you may face the problem of trying to measure an item of work for
which no rules have yet been written. To solve this you should return to the basic
question: why measure? If it is to produce a document for pricing, you need to
communicate a concise and unambiguous description of the item and accurately
portray the work content:

 If there are significant conditions under which the work will be carried out,
these should be clearly stated.
 Anything that affects the cost of the item should be included.
 Specification of materials to be used, any standards to be complied with,
details of workmanship, including fixing details, are always required.
 Depending on the type of product, it may be appropriate to measure the
volume of the item if the material is purchased in this way, for example
concrete or filling materials.
 For items that are measured in square metres, the third dimension of thickness
is often included in the description of the item.
 Likewise, lineal items usually require two dimensions to be included in the
description.
 Numbered items need length, width and breadth to be included to provide an
adequate description.
 Having described the main item, consider the fixing details that are not at the
contractor’s discretion or could affect the cost of the item.
 Perimeter details are then to be noted, as these may be as expensive as the
basic item, particularly if they are labour-intensive.
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A typical example of a standard method that does not include specific rules for the
measurement of an item in general use is found in the Hong Kong Standard Method
of Measurement of Building Works, which has no specific rules for the measurement
of suspended ceilings. This does not prevent most surveyors who measure these
ceilings from including appropriate items in their bills:

 A basic requirement is to give the type of ceiling tile and the suspension
system to be used.
 It is important to decide what the suspension is fixed to, how it is fixed and the
depth of the suspension. These factors will undoubtedly affect the cost of the
ceiling generally.
 The most logical unit of measure is the square metre, as tiles are bought in this
way.
 The perimeter is measured in metres, with the details of different abutment
features being given as fully as possible, or reference made to dimensioned
drawings.
 Reflect on what affects the unit cost of an item. You should have covered this
in an earlier measurement and estimating module. Describing and quantifying
the resources required and conditions under which the work is to be done will
be the key to establishing your own rules.

5 Changing the rules

Some standard methods allow you to change the rules if it is more appropriate for
your project. Bills of quantities prepared using SMM7 typically contained the
following type of statement:

Notwithstanding clause … of SMM7 the following pipework is deemed to be

fixed to any background and no distinction has been made between different
materials.

The purpose of this type of statement is to simplify measurement where the contractor
does not change his unit rates. Experience is the key here. When using SMM6,
‘notwithstanding’ clauses were often used in steelwork sections of bills. Steelwork
was normally priced at a certain rate per tonne depending on the weight per metre of
the steel member, irrespective of the location of the member within the building, as
required by SMM6. Therefore to waste time separating out members to individual
floors of the building would have been time-consuming and expensive, and cause the
subcontractor great problems with pricing.

At all times you should consider what is relevant to the project and what will impact
on the cost of the item. A balance should be struck between the time taken to measure
the detail and the cost of the items. For example, many bills measure manholes as
numbered items instead of in detail, as per SMM7. Here the experience of the
estimator is required to price the manhole items, but approximate estimates price
manholes in this way and most estimators will not be concerned. If the quantity
surveyor can save a day’s work by doing this with no detriment to the tender or
increased risk to the contractor, this would seem appropriate.

Not all standard methods permit the use of ‘notwithstanding’ clauses. CESMM4 lays
down rules which must be followed and establishes how the bills are to be produced.
At no time are ‘notwithstanding’ clauses considered to be appropriate.
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In the Hong Kong civil engineering standard method there is a section of general
preambles to the bills of quantities. Under particular preambles, provision is made for
amendments to the method of measurement and allows the quantity surveyor to
identify how he has amended the SMM.

6 Summary
Having looked at some of the standard methods available for measurement, it is worth
reflecting on the procurement route or contracting system with which each one is
used. This is usually the governing factor as regards the structure and approach to
measurement adopted by a particular method. The development of most standard
methods has been a direct result of a deficiency in the documents used for tendering
in a particular sector.

When choosing an appropriate standard method of measurement, an industry norm is

usually adopted so that all parties are familiar with the document and the procedures
to be followed. The problem usually arises when you are measuring a particular
installation, such as a power station or sewage treatment works, for the first time and
are uncertain what is the most appropriate method. These types of work involve a
mixture of building, engineering plant and civil engineering construction, and
deciding which one method is appropriate can be difficult. As a guide:

 Look at the contract being used and see if a standard method has been
developed for use with the specific contract.
 Consider what type of work is likely to have the greatest proportion of the
project. If the bulk of the work is of a civil engineering nature, then a civils
method may be the appropriate one to follow, irrespective of whether a
remeasurement contract is being used.
 Once you have decided on a standard method to use, you may wish to change
its approach to measuring certain items. This should not be in order to make
life easier for yourself but to enable the contractor to price the document more
accurately or readily. It may also be to accommodate new technologies which
may not appear in any section of your existing standard method.
 Do check to ensure that ‘notwithstanding’ clauses are acceptable with the
standard method you have chosen.

REFERENCES
Barnes M (1992) CESMM3 Handbook (2nd edn), London: Thomas Telford Ltd.
ISBN-13: 978-0727716583.

Institution of Civil Engineers (2012) Civil Engineering Standard Method of

Measurement (4th edn), London: Thomas Telford Ltd. ISBN-13: 978-0727757517.

Pasquire C L (1993) Builders’ Quantities for Contractors’ Management, Ascot, UK:

The Chartered Institute of Building. ISBN-13: 978-1853800658.

Hill D R (1984) A History of Engineering in Classical and Medieval Times, La Salle,

IL, USA: Open Court Publishing Company. ISBN-13: 978-0875484228.

RICS and The Building Employers’ Confederation (1998) Standard Method of

Measurement of Building Works Seventh Edition Revised, London: RICS Books.
ISBN-13: 978-0854063604.
 Alternative methods of measurement Paper 0351 Page 14

RICS (2012) RICS New Rules of Measurement: Detailed Measurement for Building
Works (NRM2), Coventry: RICS. ISBN-13: 978-1842197165.

Joint Documentation Board (1984) The Standard Method of Measurement for

Industrial Engineering Construction: The Institute of Quantity Surveyors, The
Association of Cost Engineers and the Royal Institution of Chartered Surveyors, UK.
ISBN-13: 978-0951009413.