International Construction Standards Drive Sustainability

The Advent of International Construction
Measurement Standards and their
Contribution to Sustainability roles of a
Quantity Surveyor
ISU PRE-AGM CONFERENCE
1ST APRIL 2022 at
Imperial Royale Hotel, Kampala
Presented by
Tom Joseph MUKASA, MRICS, FISU

2
ICMS 3
ICMS 1 ICMS 2
“There is only one earth, and its ability to support an ever-increasing human population is
limited. Based on today‟s rate of consumption, we need one and a half earths to provide all our
resources and to absorb our waste and CO2. We are treating the planet like an overdrawn bank
account. At this rate, by 2050 we would need the support of three earths, which we do not have.
There is an ethical duty to design the built environment to operate within the planet‟s means,
and to a minimum ecological footprint.” - RIBA, 2015
QUOTABLE QUOTES

PRESENTATION OUTLINE
1. PURPOSE & BACKGROUND
2. SERVICES &/or Roles of a QUANTITY SURVEYOR
3. MEASUREMENT STANDARDS & Risk Management
4. INTERNATIONAL COST MANAGEMENT STANDARDS – 1st , 2nd &
3rd Editions
5. LIFE CYCLE COST CONSIDERATIONS
6. CARBON EMISSION CONSIDERATIONS
7. QUANTITY SURVEYORS‟ Roles in the Sustainability Agenda: a
SWOT Analysis
8. CONCLUDING REMARKS
3

PURPOSE & BACKGROUND
4
The purpose of this presentation is to discuss the relevance of the quantity surveying
profession (using a SWOT analysis), in maximising the opportunities presented by the
emergence of strong advocacy for sustainability/sustainable construction and green
building practices, which has been enhanced by the publication of International Cost
Management Standards (ICMS), by a global coalition of over 45 built environment
professional associations.
The discussion points are aggregated from a collection of personal opinions, journals
articles, research papers, text books and similar publications on the subject of Quantity
Surveying, Sustainability/ Sustainable Construction and Green Building concepts.
ICMS began with the first two versions of the standard covering cost for construction and
the whole life cycle of infrastructure assets: With the built environment responsible for
around 40% of the global carbon emissions, it is crucial that leaders have clear comparable
data to achieve carbon and cost targets.
ICMS 3 is therefore a world first for cost and carbon management in infrastructure, which
will contribute positively to efforts to decarbonise the construction sector in the most cost-
effective way.
Through ICMS 3, professionals will for the first time be empowered to deliver a globally
consistent method for carbon life cycle reporting across construction projects, from
buildings and other infrastructure facilities.

Ice Breaker! 5
A. What are these acronyms in
full?
1. MDGs
2. SDGs
3. BREEAM
4. C2C
5. CO2e
6. COP21
7. CFCs
8. EoL
9. FF&E
10.GHG
11.GWP
12.HFC
13.LCA
14.LEED
15.SBEM
16.TER
H. What SDGs deal with
sustainability of the Built
Environment?
G. In which year did the SDGs
replace the MDGs?
E. How many MDGs were there?
F. How many SDGs are there?
B. What is sustainability?
C. What is a greenhouse gas?
D. Name any 3 common
greenhouse gases

Ice Breaker! 8
QUICK FACTS ON SDGs
1. Less than half of the world‟s population
know about the SDGs.
2. Climate Action, Quality Education and
Good Health and Well-being have the
highest priority, with regional differences
arising in the area of Climate Action.
3. Young people prioritise Climate Action,
whereas older generations prefer Good
Health and Well-being, Quality Education
and biodiversity.
4. In assessing the importance of Gender
Equality, there is a significant gap between
gender and regional orientation.
5. Worldwide, sustainability taken into
account in voting and short-term
economic decisions.
6. All sectors are considered
responsible for promoting sustainable
development, but governments in
particular.
From an industry perspective, the
most urgent areas for action are
Responsible Consumption
and Production (SDG 12); Climate
Action (SDG 13); and Industry,
Innovation and Infrastructure (SDG 9).

Services and/or Roles of a QUANTITY SURVEYOR 9
ICMS 3
ICMS 1 ICMS 2
SUSTAINABILITY MEANS THINKING ABOUT TOMORROW TODAY
“Our decisions and actions as designers today will have an impact on the planet for
future generations. The designer‟s goal is the improved long-term quality of both
human life and of supporting ecosystems. Make all decisions with future generations
in mind.” – RIBA, 2015

DEFINITION of a Quantity Surveyor
• A Quantity Surveyor, otherwise also known as a Construction Economist,
Cost Manager or Cost Engineer, is among a group of experts to the
construction industry whose role is to guarantee that the assets of the
construction industry are used to the best of interest of society, by suggesting
the most economical monetary [or otherwise] administration for undertakings
either as an expert consultancy service to clients, builders/contractors within
their entire construction processes. (Reddy, 2015)
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• LUKE 14:28 (KJV):
“For which of you, intending to build a tower, sitteth not down first, and counteth
the cost, whether he have sufficient to finish it?”
Services and/or Roles of a QUANTITY SURVEYOR

• The Professional Quantity Surveyor (PQS) has been in existence mainly as a client‟s cost
consultant and cost manager typically under two main stages of the construction process:
offering pre-contract and post-contract cost advice, prior to and after the selection of a
contractor for executing the project work, respectively (Towey, 2012).
• Ashworth, Hogg, and Higgs (2013) identify the following traditional roles of a QS:
1. Single rate approximate estimates
2. Cost planning
3. Procurement advice
4. Measurement and quantification
5. Document preparation, especially bills of quantities
6. Cost control during construction
7. Preparing Interim valuations for payments
8. Preparing Financial statements
9. Preparing Final accounts
10. Settlement of contractual claims
• The preceding roles, which had put the QS at the centre of measurement and production of
Bills of Quantities for construction works, have been gradually expanded and transformed
into a series of additional services as a result of multiple factors which have been well
documented by a number of scholars (see Cartlidge, 2011; Towey, 2012; and Ashworth,
Hogg, & Higgs, 2013).
in Kibwami, Wesonga, Manga & Mukasa, 2021

in
Kibwami,
Wesonga,
Manga
&
Mukasa,
2021
Ashworth,
Hogg,
&
Higgs,
2013

MEASUREMENT STANDARDS & Risk Management
13
ICMS 3
ICMS 1 ICMS 2
ECONOMY, EQUITY, ENVIRONMENT:
THE THREE PILLARS OF SUSTAINABILITY

The Construction Industry has a variety of standard
methods or rules of measurement to suit different
circumstances, but they each take a different approach to
measuring the same thing!
Inconsistenciesin measurementleadstolackof
continuityin cost databetweencostplansand
Bills of Quantities.
14

 Prima facie „measurement‟ is concerned
with quantifying the work required to
realise a proposed construction project
with a view to obtaining an acceptable
price from a contractor, which will then
enable a civil contract to be drawn up to
facilitate construction and completion of
the project.
 However, there is much more… than
this:
1. Each standard method of
measurement has different
measurement and item coverage
rules, imposing a different balance
of risk upon contracting parties.
2. Such risks are viewed differently by
the contracting parties with their
stakeholders, which influences their
respective attitudes at pre‐
contract, contract and post‐contract
stages.
3. The extent of risk is conditioned by
the procurement option chosen for
each project and by the conditions
of contract employed for that
project.
4. The risks posed by the project in
question will impact technically,
financially and in project
management terms, and such risks
need to be managed appropriately
by each of the participants in the
construction process in turn. There
should be no one-size fits all
approach.
 Measurement has many uses and
applications, and therefore its centrality
in the day‐to‐day management of the
construction process should not be
undervalued.
 There is an important link between
methods of measurement, conditions of
contract and procurement, and the link is
RISK.
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17

18

19

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INTERNATIONAL COST MANAGEMENT STANDARDS –
1st , 2nd & 3rd Editions 21
ICMS 3
ICMS 1 ICMS 2

Why ICMS?
22
22
1st , 2nd & 3rd Editions

23

24
Change of title to „International Cost Management Standard‟, to reflect the broader scope of its contents.

25
ICMS: Global Consistency in Presenting Construction Life Cycle Costs
and Carbon Emissions
“If cement were a country it would be the third largest emitter of carbon in the world
and so action to de-carbonise construction is required now”. – Alan Muse, Vice-
Chairman ICMS Standard Setting Committee

WHAT is ICMS?
 An international standard which aims to provide greater global
consistency in construction costing.
 Established by the International Construction Measurement
Standards Coalition (ICMSC), a group of more than 45 professional
and not-for-profit organisations, launched at the International
Monetary Fund (IMF) in Washington D.C. in May 2015.
 A high level benchmarking and reporting framework for international
cost classification, reporting and comparison.
 Bold ambition – to create global consistency in project cost
reporting.
 All of the major professional and standard-setting bodies in this
sector, from all around the world, including: AAQS, Kenya, Uganda
(ISU), Canada, US, UK, France, Germany, Japan, Hong Kong,
Australia, China, Brazil, the list goes on…
26

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OBJECTIVES
 Principles-based standards setting out how to
report, group and classify construction project
costs in a structured and logical form.
 A first step in creating a seamless, global,
pyramidal hierarchy of construction cost
classification: from high-level global cost
benchmarking to granular, local cost
measurement.
WHY IS IT IMPORTANT?
 As property, construction and infrastructure
continues to be increasingly global in extent
and operation, there is a real need for
international consistency in something as
fundamental as construction cost
classification.
 Historically, these processes have followed
local and regional custom and practice, which
has made comparison across the world more
difficult, leading to confusion, uncertainty and
lack of confidence from key stakeholders.
COMBINING BUILDINGS AND CIVIL
ENGINEERING
 ICMS deal with construction cost classification
across buildings and civil engineering
(infrastructure) type projects.
 In the case of civil engineering or infrastructure
projects, these are presented as separate
project classifications, each defined by their
principal purpose.
 The separate classification for civil engineering
projects has been decided for presentation
within ICMS because the characteristics and
purpose of each are sufficiently different from
each other to warrant separate sections.
 On the other hand, any differences in the
functional types for each project can be
captured in the project attributes section.
 One of the strengths of ICMS is that it
treats buildings and each separate class of
civil engineering project in the same
structured way.

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Relationship between ICMS, LCC & WLC
Whole Life
Costs (WLC)
Acquisition
Costs (AC)
Construction
Costs (CC)
Renewal
Costs (RC)
Operation
Costs (OC)
Maintenance
Costs (MC)
End of Life
Costs (AC)
Non-Construction
Costs
Life Cycle
Costs (LCC)
Income Externalities
Cost
Groups
Cost
Groups
Cost
Groups
Cost
Groups
Cost
Groups
ICMS 2nd edition (Construction and Other Life Cycle Costs)
A C R O M E
29
Associated
Capital
Costs
ICMS 1st edition „Occupancy Costs‟ are considered part of the „Non-Construction Costs‟

30
Cost and Carbon Emission (CCE) reporting framework
Whole Life
Carbon Emissions
Acquisition
Carbon
Emissions (AE)
Construction
Carbon
Emissions (CE)
Renewal
Carbon
Emissions (RE)
Operation
Carbon
Emissions (OE)
Maintenance
Carbon
Emissions (ME)
End of Life
Carbon
Emissions (EE)
Non-Construction
Carbon Emissions
Life Cycle
Carbon Emissions
Income Externalities
Reporting
Groups
Reporting
Groups
Reporting
Groups
Reporting
Groups
Reporting
Groups
ICMS 3rd edition (Life Cycle Cost & Carbon Emission Framework)
A C R O M E
30
ICMS treats the difference between Life Cycle Carbon Emissions (LCCE) and
Whole Life Carbon Emissions (WLCE) in an analogous way to the difference
between Life Cycle Costs and Whole Life Costs.
The reporting structures for costs and carbon
emissions are identical

Cost Sub-Group
Cost Sub-Group
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ICMS Framework
1
2
3
4
5
6
Cost Group
Cost Group
Group
Cost Group
Cost Group
Group
Cost Group
Cost Group
Group
Cost Group
Cost Group
Group
Cost Group
Cost Group
Group
Cost Group
Cost Group
Group
Sub-Group
Cost Sub-Group
Cost Sub-Group
Sub-Group
Cost Sub-Group
Cost Sub-Group
Sub-Group
Cost Sub-Group
Cost Sub-Group
Sub-Group
Cost Sub-Group
Cost Sub-Group
Sub-Group
Cost Sub-Group
Cost Sub-Group
Sub-Group
Level 1: Projects or
Sub-Projects
Level 2: Categories Level 3: Groups Level 4: Sub-Groups
(Discretionary)
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Buildings
Roads, runways and
motorways
Railways
Bridges
Tunnels
Waste water
treatment works
Water treatment
works
Pipelines
Wells and boreholes
Power-generating
plants
Chemical plants
Refineries
Dams and reservoirs
Mines and quarries
Offshore structures
Near shore works
Ports
Waterway works
Land formation and
reclamation
Provision for further
Project Types
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
Acquisition Costs
and/or Carbon
Emissions
(AC and/or AE)
Construction Costs
and/or Carbon
Emissions
(CC and/or CE)
Renewal Costs
and/or Carbon
Emissions
(RC and/or RE)
Operation Costs
and/or Carbon
Emissions
(OC and/or OE)
Maintenance Costs
and/or Carbon
Emissions
(MC and/or ME)
End of Life Costs
and/or Carbon
Emissions
(EC and/or EE)

32
ICMS Framework: Structure, format
and layout
 Section 2.1 of ICMS sets out an
overview of the framework with various
cost classification levels, including the
broader context and scope for the
second and third editions of ICMS, and
what is covered beyond the scope of the
first edition.
 Level 1: „Projects or Sub-projects‟ –
these relate to either „buildings‟, or „civil
engineering/infrastructure‟ classified
projects individually, according to their
essence or principal purpose, although
the treatment of both types is the same.
 For example, in the case of „buildings‟,
the description of the functional type of
the building under consideration is given
in the project attributes for the „Works‟
comprising 15 options (Residential,
Office, Commercial, Shopping centre,
Industrial, Hotel, Car park, Warehouse,
Educational, Hospital, Airport terminal,
Railway station, Ferry terminal, Plant
facility, and others).
 In the case of „civil engineering/
infrastructure‟ type projects, there are 18
classified types of such projects listed,
these being considered the most
common infrastructure type projects that
typically exist (Roads runways and
motorways; Railways; Bridges; Tunnels;
Waste water treatment works; Pipelines;
Wells and boreholes; Power-generating
plants; Chemical plants; Refineries;
Dams and reservoirs; Mines and
quarries; Offshore structures; Near
shore works; Ports; Waterway works;
Land formation and reclamation; and a
Provision for further Project Types).

33
ICMS Framework: Structure, format and layout
Level 1 – Projects or Sub-Projects (two-digit codes)
01. Buildings 11. Chemical plants
02. Roads, runways and motorways 12. Refineries
03. Railways 13. Dams and reservoirs
04. Bridges 14. Mines and quarries
05. Tunnels 15. Offshore structures
06. Waste water treatment works 16. Near shore works
07. Water treatment works 17. Ports
08. Pipelines 18. Waterway works
09. Wells and boreholes 19. Land formation and reclamation
10. Power-generating plants

34
and layout
Level 2: „Categories‟ – these are individual
categories that provide for a suitable split or
classification of the overall project cost into
three level 2 cost categories, as follows:
 2.1 Acquisition Costs (AC) and/or
Carbon Emissions (ACE): All
payments or considerations required to
acquire, lease, or purchase the land,
property or existing Constructed Asset,
and all other expenses associated with
the acquisition, excluding physical
construction.
 2.2 Construction Costs (CC) and/or
Carbon Emissions (CCE):
Expenditures incurred as a direct result
of construction including labour,
materials, plant, equipment, site and
head office overheads and profits as well
as taxes and levies. They are the total
price payable for all permanent and
temporary works normally included in
construction contracts, including goods
or materials supplied by the Client for
the Constructor to install. There may be
separate sets of construction costs that
make up the total, if more than one
constructor is retained, depending on the
procurement model chosen.

35
and layout
Level 2: „Categories‟ –cont‟d
 2.3 Renewal Costs (RC) and/or Carbon
Emissions (RCE): The costs of replacing a
Constructed Asset and/or major components
once they reach the end of their life, and which
the Client decides are to be included in the
capital rather than the revenue Budget.
 2.4 Operation Costs (OC) and/or Carbon
Emissions (OCE): Costs incurred in running
and managing a Constructed Asset during
occupation, including administrative support
services, rent, insurances, energy and other
environmental/regulatory inspection costs,
taxes and charges.
 2.5 Maintenance Costs (MC) and/or Carbon
Emissions (MCE): The total cost of labour,
material and other related costs to retain a
Constructed Asset or its parts so that it can
perform its required functions (ISO 15686-5).
 Maintenance includes conducting corrective,
responsive and preventative maintenance on a
Constructed Asset or its parts and all
associated management, cleaning, services,
repainting, repairing or replacing of parts as
needed for the Constructed Asset to be used
for its intended purpose. It does not include
Renewal Costs.
 2.6 End of Life Costs (EC) and/or Carbon
Emissions (ECE): The net costs or fees for
disposing of an asset at the end of its service
life after deducting the salvage value and other
income due to disposal, including costs
resulting from disposal inspection,
decommissioning and decontamination,
demolition and reclamation, reinstatement,
asset transfer obligations, recycling, recovery,
disposal of components and materials, and
transport and regulatory costs.

36
and layout
Level 3: „Groups‟ – these capture the sub-
division of cost categories into a more
detailed breakdown to enable easy
estimation or extraction of cost and/or
carbon emissions data for quick, high-level
comparison by design discipline- or common
purpose.
 There are:
 Two (2) groups for Acquisition Costs
 Thirteen (13) groups for Construction
Costs, Renewal Costs & Maintenance
Costs
 Eight (8) groups for Operation Costs
 Seven (7) groups for End of Life Costs
 The cost groups at level 2 and 3 are
mandatory and should not be altered or
deleted.
 Level 4: „Sub-Groups‟ – these are
intended to capture further sub-divisions
of costs within each of the level 3
groups, thereby providing an even more
granular level of detail of cost
classification according to functions,
services, or common purposes, to
enable alternatives to be compared,
evaluated and selected.
 These level 4 sub-groups 4 are
discretionary and can be formulated to
suit local custom and practice.
 ICMS includes a set of suggested cost
sub-group codes and descriptions, which
it is recommended are followed,
wherever possible.
 If a cost incurred on the project is not
listed within the sample selection
provided at level 4, then the construction
cost adviser should add a suitable item
and cost code in a logical manner taking
account of the remainder of the coding
within that cost group.

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Level 2 Categories & Level 3 Groups
2. Construction
Costs(CC) and/or
Carbon Emissions
(CE)
1. Acquisition
Costs (AC) and/or
Carbon Emissions
(AE)
37
A C
3. Renewal
Costs(RC) and/or
Carbon Emissions
(RE)
R
4. Operation
Costs(OC) and/or
Carbon Emissions
(OE)
O
5. Maintenance
Costs(MC) and/or
Carbon Emissions
(ME)
6. End of Life
Costs(EC) and/or
Carbon Emissions
(EE)
M E
01. Site acquisition
02. Administration,
finance, legal and
marketing expenses
01. Demolition, site preparation and
formation
02. Substructure
03. Structure
04. Architectural works| non-structural works
05. Services and equipment
06. Surface and underground drainage
07. External and ancillary works
08. Preliminaries| Contractor’s site
overheads| general requirements
09. Risk Allowances
10. Taxes and Levies
11. Works & utilities off-site
12. Production and loose furniture, fittings
and equipment
13. Construction-related consultants and
supervision
01. Cleaning
02. Utilities
03. Waste management
04. Security
05. Information and
Communication Technology
06. Operators’ site
overheads | general
requirements
07. Risk Allowances
01. Disposal inspection
02. Decommissioning and
decontamination
03. Demolition and
reclamation
04. Reinstatement
05. Constructors’ site
Overheads | general
requirements
06. Risk Allowances
Level
2
-
Categories
Level
3
-
Groups
NB: Carbon Emissions are
reported only for the green
cells

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ICMS Hierarchical Levels
Level 1: Project and Sub-Project
• ICMS classify Projects according to their
essence and principal purpose.
• Currently assigned codes, from 01(Buildings) to
19 (Land formation and reclamation), with
provision for further Project Types.
• When a Project is too large or complex to be
described by a single set of Project Attributes
and Values, it is to be subdivided for cost
reporting into Sub-Projects.
• A project can have multiple Sub-Projects, and it
is also possible to use a combination of Sub-
Projects within a Project to report a collection of
Projects under the names of ‟programme‟ or
‟portfolio‟.
Levels 2 and 3: Categories and Groups
• Categories (at Level 2) and Groups (at Level 3)
are mandatory and standardised for all Projects
to enable high-level comparison between
different Projects and Sub-Projects.
• All individual costs reported should be those
paid or are payable by the Client and include
the payees‟ overheads and profits where
applicable.
• Different levels of Cost Codes are to be linked
together with a „.‟ in between.
Levels 4: Sub-Groups
• The cost of components of a Project or Sub-
Project under each Group serving a specific
function or common purpose are grouped into
one Sub-Group, such that the costs of
alternatives serving the same function can be
compared, evaluated and selected.
• Sub-Groups are chosen irrespective of their
design, specification, materials or construction.
• ICMS do not mandate the classification of the
Sub-Groups (Level 4), but examples have been
provided of what might be included.
• Users of ICMS may adopt a Sub-Group
classification based on trades, work breakdown
structure or work results according to their local
practice.

Core Classification in ICMS
39
Project
Cost Sub-
Groups
Groups
Categories
Sub-Projects Optional
Simple
Project or
Complex
Project or
Mega Project
Optional
One-
to-
many
International
Local
Project
Attributes
Level 1
Level 2
Level 3
Level 4
39
Source: RICS, 2019

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ICMS Cost Codes & Project
Attributes
Cost Codes
• Cost Codes are unique identifier for digital
purposes, assigned to ICMS hierarchy down to
Level 4.
• However, since the classification of the Sub-
Groups at Level 4 is not mandatory, these Cost
Codes may be suitably adjusted.
Project Attributes and Values
• To enable consistent and concise evaluation
and comparison between different Projects or
different design schemes, ICMS provide a set of
Project Attributes and Values describing the
principal characteristics of each Project or Sub-
Project.

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Differences to Elemental Cost
Planning
Classification principles
• The classification of construction costs as set
out in ICMS differ from other historic elemental
cost plan structures, layouts and formats, given
that the traditional elemental titles and groups
for cost classification do not necessarily apply
across the world.
• The thinking behind the work of the ICMS
Coalition is to arrive at a cost framework that
can be understood by all parties, hence, the use
of classification groups with titles such as
„Categories‟, „Groups‟ and „Sub-groups‟.
Substructure and superstructure delineation
• Different parts of the world have historically
applied different „boundaries‟ to where the
„substructure‟ ends and „superstructure‟ starts
and these differences are also evident in the
boundary applied between structural designers
(engineers) and cost management professionals
(historically quantity surveyors or cost
managers).
• The important matter to be decided is that a
single common approach is taken, such that
when project cost classifications are prepared,
the same principle is applied in each case,
based on the sample diagrams as presented in
Part 4.2 of ICMS3.
• This also serves to align with the way in which
3D models of the building or structure are
constructed.

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Planning
Substructure and superstructure delineation
Source: ICMS, 2021

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Planning
Loadbearing and non-loadbearing delineation
• Again, historic custom and practice in different
parts of the world have not used or have
adopted a different approach to the definition of
loadbearing and non-loadbearing and the
resultant allocation of costs between the two
elements or sections.
• ICMS seeks to define what „structure‟ should
include, and it is worth noting that the inclusion
of non-load bearing components, which are an
integral part of the composite load-bearing work,
should be included within the „structure‟ cost
allocation.
• Cost management professionals may need to
seek advice from structural designers (if
appointed as part of the design team) to
establish which construction elements are
loadbearing or non-loadbearing, given that this
is not always clearly evident from the design
information.

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Planning
Alignment to design disciplines
• The cost classification grouping, as set out in
the ICMS framework, seeks to align the various
cost groups with the design discipline (and,
therefore, individual members of the design
team) that will sit behind the defined work, such
that within section 2.2 of ICMS (hierarchical
levels) there are seven „work-based‟ groups,
namely:
• 01. Demolition, site preparation and formation: All
necessary advance or facilitating work to prepare, secure and
form the site to enable substructure construction, renewal,
and/or maintenance.
• 02. Substructure: All the load bearing work underground or
underwater up to and including related earthwork, lateral
support beyond site formation, and non-load bearing
components and services and equipment forming an integral
part of composite or prefabricated load bearing work, and as
illustrated in Part 4.2.
• 03. Structure: All the load bearing work, including non-load
bearing components and services and equipment forming an
integral part of composite or prefabricated load bearing work,
but excluding those included in Substructure and
Architectural works or non-structural works.
• 04. Architectural or Non-structural works: All architectural
and non-load bearing work excluding services, equipment,
and surface and underground drainage.
• 05. Services and equipment: All fixed services and
equipment required [to put the completed project into use (for
Construction costs) or to sustain the use after completion of
construction (for Renewal and Maintenance Costs), whether
they are mechanical, hydraulic, plumbing, fire-fighting,
transport, communication, security, electrical or electronic,
control systems, or signalling, but excluding external surface
and underground drainage. Including testing, commissioning
and operational licensing and plant upgrades and/or
refurbishment.
• 06. Surface and underground drainage: All underground or
external surface drainage systems excluding those inside
basement or underground construction.
• 07. External and ancillary works: All work outside the
external face of buildings or beyond the construction entity
required to fulfil the primary function of the Project and not
included in other Groups.
• It is acknowledged that these seven
groupings do not necessarily align with the
„packaging up‟ and the procurement of
construction work in any market, but rather
that the groups better align with the design
discipline that undertakes the work in
question.

Cost Sub-
Groups
Mandatory
Classification
Consistent and Globally
Agreed High-Level ICMS
Cost Classification
Discretionary Local
Cost Classification
Elemental Classification Trade-based Classification
Mapping Mapping
Other Classifications (WBS)
ICMS Level 3
ICMS Level 4
Mapping Local to ICMS
45
45
Source: RICS, 2019

46
ICMS 3
ICMS 1 ICMS 2
LIFE CYCLE COST CONSIDERATIONS

47
Setting the scope of the Life Cycle Costs:
• Life Cycle Costing (LCC) is an economic
evaluation method that takes account of all
relevant costs over a time horizon (Period of
Analysis).
• ICMS defines LCC as the Cost of a Constructed
Asset or its parts throughout its life cycle from
construction through use, operation,
maintenance and renewal till the end of life or a
shorter Period of Analysis, while fulfilling the
performance requirements.
• The typical measure of total life cycle cost is a
single sum representing the sum of capital
(construction) cost and future cash flows.
• ICMS compute LCC by establishing the
Construction Costs (CC), plus the Net Present
Value (NPV) of Renewal Costs (RC), Operation
Costs (OC), Maintenance Costs (MC) and End
of Life Costs (EC).
• LCC requires answers to the following questions
(RICS, 2016):
1. What will need to be done?
2. When?
3. How much will it cost?
• LCC can be used for budgeting and for option
appraisal.
• For example:
• higher expenditure on building fabric or insulation
might lead to lower energy expenditure, or
• a lighter weight, more expensive cladding system
might lead to savings on frame and foundation
costs, but will also cost more when it is renewed,
or
• a cheaper component might be less durable, and
require more frequent replacement or
maintenance.
• LCC may be part of a wider economic project
evaluation that considers the whole life costs
(including non-construction costs such as
finance, business income from sales and
disposals, occupancy costs and externalities).

48
LCC Key Terms & Definitions:
1. Expected asset life:
• The design life of the Constructed Asset is a key
performance requirement and should be defined
in the project brief.
• The estimated expected service life of the
Constructed Asset should be at least as long as
the design life.
• Renewals of Constructed Assets during the
expected service life should be included in the
life cycle cost‟s Period of Analysis, as well as
any associated End of Life or hand-back
obligations.
2. Time Value of Money:
• The initial Construction Costs reported should
be the forecast or actual final costs to complete
the construction phase of the Project.
• Forecast costs should include an adjustment for
price level fluctuations until the completion of
the Project using published market indices and
an agreed Base Date.
• The remainder of the LCC should be the
forecast costs after completion of construction
until the end of life or a shorter Period of
Analysis, (as defined in the project scope),
discounted to a Common Date not earlier than
the completion of construction, using Discount
Rates mandated by government authorities for
public projects or published Discount Rates for
the market, where the Project is located for
private projects or other rates such as those
designated by the Client.

49
LCC Key Terms & Definitions:
3. Base Date:
• The date at which the individual Construction
Costs apply exclusive of Price Level
Adjustments after that date.
4. Common Date:
• The date to be used in conjunction with Life
Cycle Costing, being a date not earlier than the
completion of construction. All future cash flows
occurring at different times are discounted or
compounded as if the costs are incurred at that
date.
5. Net Present Value:
• The total present day worth of a future cash flow
discounted at a given interest rate. i.e. the sum
of the discounted future cash flows (ISO 15686-
5).
• NPV is the normal measure for discounted LCC.
• To convert a future cost to the present value
(cost) at the Common Date, the following
formulae, using $ as an example currency, can
be used:
• Present value = future cost × discounting factor
• R% = Discount Rate per annum
• Discounting factor for the same cost spent at the
end of year N after the Common Date
= PV of $1 after N years
= 1 / (1 + R%) N
• Discounting factor for a cost spent annually for N
years after the Common Date
= PV of $1 per annum after N years
= [1 - 1 / (1 + R%) N] / R%
• More information on the calculation of NPV and
the relationship between real and nominal costs
and discount rates can be found in ISO 15686-
5:2017.
where
C is the cost in year n
q is the discount rate
d is the expected real discount rate per annum
n is the number of years between the base date and the occurrence of the cost
p is the period of analysis
is the sum of all the costs that follow.
NPV Equation:

• LCC Calculations and Period of Analysis:
50
Time
Inception Completion of Construction End of Life
Common Date Period of Analysis
Construction Costs Other Life Cycle Costs
50

• LCC model, first 30 years – Costs discounted at 3%p.a. (RICS, 2016):
51
Cost heading Life Cycle
replacement cost [Cn]
Estimated
service life
Total NPV Year 0 Year 1 Year 5 Year 10 Year 12 Year 15 Year 20 Year 22 Year 24 Year 25 Year 30
Discount rate [q] at 3% p.a. 1.0000 0.9709 0.8626 0.7441 0.7014 0.6419 0.5537 0.5219 0.4919 0.4776 0.4120
CONSTRUCTION £0 0 £2,000,000 £2,000,000
Stair finishes £100 20 £55 £55.37
Stair balustrades and handrails £200 20 £111 £110.74
External windows £500 35 £0
External doors £400 35 £0
Internal walls/partitions £1,000 25 £478 £477.61
Balustrades and handrails £200 25 £96 £95.52
Internal doors £700 20 £388 £387.57
Wall finishes £1,000 15 £1,054 £641.86 £411.99
Finishes to floors £2,000 12 £2,387 £1,402.76 £983.87
Finishes to ceiling £500 15 £527 £320.93 £205.99
Fitting, fixtures and furniture £600 10 £1,026 £446.46 £332.21 £247.19
Sanitaryware £300 15 £316 £192.56 £123.60
Services equipment £100 15 £105 £64.19 £41.20
Disposal installations £200 30 £82 £82.40
Water installations £300 20 £166 £166.10
Space heating and cooling £500 15 £527 £320.93 £205.99
Electrical installations £500 20 £277 £276.84
Fuel installations £300 30 £124 £123.60
Lifts and enclosed hoists £200 15 £211 £128.37 £82.40
Fire-fighting installations £100 15 £105 £64.19 £41.20
Lightning protection £100 20 £55 £55.37
Warning installations £100 22 £52 £52.19
Security installations £100 20 £55 £55.37
Building management control
installations
£200 15 £211 £128.37 £82.40
External works £300 20 £166 £166.10
MAINTENANCE £1,000 1 £19,600 £970.87 £862.61 £744.09 £701.38 £641.86 £553.68 £521.89 £491.93 £477.61 £411.99
OPERATION £1,000 1 £19,600 £970.87 £862.61 £744.09 £701.38 £641.86 £553.68 £521.89 £491.93 £477.61 £411.99
END OF LIFE £500 50 £0
TOTAL £2,047,774 £2,000,000 £1,942 £1,725 £1,935 £2,806 £3,145 £2,713 £1,096 £1,968 £1,528 £2,472
CUMULATIVE TOTAL £2,000,000 £2,001,942 £2,009,159 £2,017,507 £2,021,757 £2,027,586 £2,035,071 £2,037,242 £2,040,223 £2,041,752 £2,047,774
51

Local Case Study:
A. Project Attributes & Values (Sample)
52
Project Attributes Values
Report
Project title DESIGN AND BUILD OF A 3 STOREY CLASSROOM
BLOCK
Status of cost report pre-construction forecast | at tender | during
construction | actual costs of construction post-
completion | renewal forecast during use | end of life
forecast
Date of cost report Jun-21
Revision number of cost report NA
Brief description of the Project Construction of a U-Shaped Classroom Block on 3
Floors with open air courtyard (not roofed),
comprising:
• Ground Floor- 2nr Classrooms; Large multi-purpose
room (Dining/ Multi-media/ classroom space with
moveable partition); Library & Resource Centre;
Computer Room; 3nr Offices; Ablution facilities.
• Access ramp and 2 staircases.
• Main Entrance Gate to the complex + 2 auxiliary
entrances/exits (escape routes).
• First Floor – 9nr Classrooms, 3nr Stores/small offices;
Ablution facilities.
• Second Floor – 9nr Classrooms, 3nr Stores/small
offices, Ablution facilities.
• Modification of the Sick Bay & Dining Shed.
• client’s name Not Disclosed
• main Project type (principal Sub-Project) Buildings
• brief scope As per brief description
Location and country KAMPALA, UGANDA
Sub-Projects included buildings

Local Case Study:
53
53
Construction Cost Price Level
ISO currency code USD
Base date of costs (if individual cost is exclusive of
Price Level Adjustments after that date)
July, 2017
Price basis fixed unit rates
Construction Cost Currency Conversion
Conversion date July, 2017
Exchange rates or other conversion factors (used to
convert a cost report of multi- currencies into a single
currency)
UGX 3,611
Construction Programme
Project status initiation and concept phase | design phase |
construction and commissioning phase | complete
Construction period
• number of months 10
• start date (actual) July, 2017
• end date (actual) May, 2018
Site
Existing site status
• state of use greenfield
• type of use urban
Legal status of site freehold
Site topography principally flat
Ground conditions (predominant) swampy
Seismic zones (state more than one if applicable based
on location)
NA
Site conditions and constraints
• access problems average
• extreme climatic conditions average
• environmental constraints average
• statutory planning constraints average

Local Case Study:
54
Construction Procurement
Funding private
Project delivery
• pricing method lump sum with some re-measurement for additional
works
• mode of procurement design and build
• joint venture foreign Constructor no
• predominant source of Constructors local

Local Case Study:
55
55
Life Cycle Cost Related
Life cycle costing
• purpose NA
• method of presentation of costs NA
• common date (to which all costs are discounted or
compounded)
July, 2017
• project status at common date construction and commissioning phase
• discount rate real discount rate | nominal discount rate
(3% per annum)
Expected constructed asset life span after completion
of construction
design life
60
Period of analysis for life cycle costing
• until end of life | end of interest
• from July, 2017
• to July, 2047
• number of months l years (360 l 30)
Primary usage type constraints affecting expected life
and life cycle costs (if applicable)
• hours of operation (e.g. office hours 9 to 5.30
Monday to Friday)
8 AM - 7PM
• access restrictions
• environmental
• statutory
• contractual
• others
Renewals planned (during period of analysis)
• (a) =
• etc
• (a) =
• (b) =
• (a) =
• etc.
End of Life Costs
• handback obligations at end of life/ period of
analysis (if applicable)
• scope of renewal (stating key Cost Groups/Sub-
Groups included)
• respective cycle (e.g. every 5 years)
• number of renewal cycles included (during the
period of analysis)

Local Case Study:
B. Elemental Cost Plan (Sample)
56
$ $/m
2 %
Project Quantity
4,395
IPMS 1
External Floor
Area (m²)
2. Construction Costs (CC) 1,536,084.55 349.51 100.0%
2.01. Demolition, site preparation and formation - - 0.0%
2.02. Substructure 153,735.41 34.98 10.0%
2.03 Structure
2.03.030 Frames and slabs (above top of ground floor slabs), including
roof structure, stairs and ramps
441,354.80 100.42 28.7%
2.04. Architectural works | non-structural works
2.04.020 External elevations:
2.04.020.020 External wall finishes except cladding 40,893.38 9.30 2.7%
2.04.020.040 External windows 49,713.74 11.31 3.2%
2.04.020.050 External doors 4,153.97 0.95 0.3%
2.04.030 Roof finishes 31,543.15 7.18 2.1%
2.04.040 Internal divisions:
2.04.040.060 Internal doors 42,278.34 9.62 2.8%
2.04.050 Fittings and sundries:
2.04.050.010 Balustrades, railings and handrails 21,243.42 4.83 1.4%
2.04.050.030 Cabinets, cupboards, shelves, counters, benches, notice
boards, blackboards
18,111.44 4.12 1.2%
2.04.050.040 Exit signs, directory signs 2,076.99 0.47 0.1%
2.04.060 Finishes under cover:
2.04.060.010 Floor finishes (internal and external) 77,817.24 17.71 5.1%
2.04.060.020 Internal wall finishes and cladding 55,842.29 12.71 3.6%
2.04.060.030 Ceiling finishes and false ceilings (internal or external) 50,413.18 11.47 3.3%
Cost code Description Educational Building

Local Case Study:
B. Elemental Cost Plan (Sample)
57
57
$ $/m
2
%
Project Quantity
4,395
IPMS 1
External Floor
Area (m²)
2. Construction Costs (CC) 1,536,084.55 349.51 100.0%
2.05. Services and equipment
2.05.010 Heating, ventilating and air-conditioning systems/air
conditioners
- - 0.0%
2.05.020 Electrical services (excludes lighting fittings) 37,905.01 8.62 2.5%
2.05.030 Fitting out lighting fittings 21,786.21 4.96 1.4%
2.05.040 Extra low voltage electrical services: - - 0.0%
2.05.050 Water supply and drainage above ground or inside basement 13,669.90 3.11 0.9%
2.05.060 Supply of sanitary fittings and fixtures 42,331.76 9.63 2.8%
2.05.070 Disposal systems - - 0.0%
2.05.080 Fire services 18,142.34 4.13 1.2%
2.06. Surface and underground drainage 18,882.58 4.30 1.2%
2.07. External and ancillary works 52,754.28 12.00 3.4%
2.08. Preliminaries | Constructor’s site overheads | general
requirements
30,960.95 7.04 2.0%
2.09. Risk Allowances - - 0.0%
2.10. Taxes and Levies (VAT) 234,317.98 53.31 15.3%
2.11. Work and utilities off-site - - 0.0%
2.12. Post-completion furniture, furnishing and equipment - - 0.0%
2.13. Construction-related consultants and supervision 76,156.19 17.33 5.0%
Cost code Description Educational Building

Local Case Study:
C. LCC Detailed (Sample)
58
Project:
Subject: LCC Analysis
Base Date: Occupancy Date
Discount rate: 3%
Period of analysis (in years): 30 0 1 2 3 4 5 6 7
Discount Factor 1.000 0.971 0.943 0.915 0.888 0.863 0.837 0.813
Cost heading Life Cycle replacement cost Estimated
service life
(in years)
Total NPV Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2 CAPITAL CONSTRUCTION COSTS (CC) $1,536,084.55 0 $1,536,084.55 $1,536,084.55
2.04.020.020 External wall finishes except cladding $40,893.38 15 $43,095.44
2.04.020.040 External windows $49,713.74 35 $0.00
2.04.020.050 External doors $4,153.97 35 $0.00
2.04.030 Roof finishes $31,543.15 40 $0.00
2.04.040.060 Internal doors $42,278.34 20 $23,408.49
2.04.050.010 Balustrades, railings and handrails $21,243.42 20 $11,761.97
2.04.050.030 Cabinets, cupboards, shelves, counters,
benches, notice boards, blackboards
$18,111.44 15 $19,086.72
2.04.050.040 Exit signs, directory signs $2,076.99 10 $3,551.15
2.04.060.010 Floor finishes (internal and external) $77,817.24 12 $92,860.37
2.04.060.020 Internal wall finishes and cladding $55,842.29 15 $58,849.33
2.04.060.030 Ceiling finishes and false ceilings (internal or
external)
$50,413.18 15 $53,127.86
2.05.020 Electrical services (excludes lighting fittings) $37,905.01 20 $20,987.08
2.05.030 Fitting out lighting fittings $21,786.21 10 $37,249.11
2.05.050 Water supply and drainage above ground or
inside basement
$13,669.90 20 $7,568.69
2.05.060 Supply of sanitary fittings and fixtures $42,331.76 15 $44,611.27
2.05.080 Fire services $18,142.34 15 $19,119.28
2.06. Surface and underground drainage $18,882.58 20 $10,454.83
2.07. External and ancillary works $52,754.28 20 $29,208.77
OPERATION $10,000.00 1 $196,004.41 $9,708.74 $9,425.96 $9,151.42 $8,884.87 $8,626.09 $8,374.84 $8,130.92
MAINTENANCE $5,000.00 1 $98,002.21 $4,854.37 $4,712.98 $4,575.71 $4,442.44 $4,313.04 $4,187.42 $4,065.46
END OF LIFE $15,000.00 50 $0.00
TOTAL $2,305,031.53 $1,536,084.55 $14,563.11 $14,138.94 $13,727.12 $13,327.31 $12,939.13 $12,562.26 $12,196.37
CUMULATIVE TOTAL $1,536,084.55 $1,550,647.66 $1,564,786.60 $1,578,513.72 $1,591,841.03 $1,604,780.16 $1,617,342.42 $1,629,538.79
DESIGN AND BUILD OF A 3 STOREY CLASSROOM BLOCK,
KAMPALA – UGANDA
C Renewal
Costs
O
M
E
R

Local Case Study:
59
Project:
Discount rate: 3%
Discount Factor 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642
service life
(in years)
2 CAPITAL CONSTRUCTION COSTS (CC) $1,536,084.55 0 $1,536,084.55
2.04.020.020 External wall finishes except cladding $40,893.38 15 $43,095.44 $26,247.90
2.04.020.050 External doors $4,153.97 35 $0.00
2.04.030 Roof finishes $31,543.15 40 $0.00
2.04.040.060 Internal doors $42,278.34 20 $23,408.49
$18,111.44 15 $19,086.72 $11,625.04
2.04.050.040 Exit signs, directory signs $2,076.99 10 $3,551.15 $1,545.48
2.04.060.010 Floor finishes (internal and external) $77,817.24 12 $92,860.37 $54,579.45
2.04.060.020 Internal wall finishes and cladding $55,842.29 15 $58,849.33 $35,843.04
external)
$50,413.18 15 $53,127.86 $32,358.30
2.05.030 Fitting out lighting fittings $21,786.21 10 $37,249.11 $16,210.99
inside basement
$13,669.90 20 $7,568.69
2.05.060 Supply of sanitary fittings and fixtures $42,331.76 15 $44,611.27 $27,171.15
2.05.080 Fire services $18,142.34 15 $19,119.28 $11,644.88
OPERATION $10,000.00 1 $196,004.41 $7,894.09 $7,664.17 $7,440.94 $7,224.21 $7,013.80 $6,809.51 $6,611.18 $6,418.62
MAINTENANCE $5,000.00 1 $98,002.21 $3,947.05 $3,832.08 $3,720.47 $3,612.11 $3,506.90 $3,404.76 $3,305.59 $3,209.31
END OF LIFE $15,000.00 50 $0.00
TOTAL $2,305,031.53 $11,841.14 $11,496.25 $28,917.87 $10,836.32 $65,100.14 $10,214.27 $9,916.77 $154,518.24
KAMPALA – UGANDA
C Renewal
Costs
O
M
E
R

Local Case Study:
60
Project:
Discount rate: 3%
Discount Factor 0.623 0.605 0.587 0.570 0.554 0.538 0.522 0.507
service life
(in years)
2.04.020.020 External wall finishes except cladding $40,893.38 15 $43,095.44
2.04.020.050 External doors $4,153.97 35 $0.00
2.04.030 Roof finishes $31,543.15 40 $0.00
2.04.040.060 Internal doors $42,278.34 20 $23,408.49 $23,408.49
2.04.050.010 Balustrades, railings and handrails $21,243.42 20 $11,761.97 $11,761.97
$18,111.44 15 $19,086.72
2.04.050.040 Exit signs, directory signs $2,076.99 10 $3,551.15 $1,149.98
2.04.060.010 Floor finishes (internal and external) $77,817.24 12 $92,860.37
2.04.060.020 Internal wall finishes and cladding $55,842.29 15 $58,849.33
external)
$50,413.18 15 $53,127.86
2.05.020 Electrical services (excludes lighting fittings) $37,905.01 20 $20,987.08 $20,987.08
inside basement
$13,669.90 20 $7,568.69 $7,568.69
2.05.060 Supply of sanitary fittings and fixtures $42,331.76 15 $44,611.27
2.05.080 Fire services $18,142.34 15 $19,119.28
2.06. Surface and underground drainage $18,882.58 20 $10,454.83 $10,454.83
2.07. External and ancillary works $52,754.28 20 $29,208.77 $29,208.77
OPERATION $10,000.00 1 $196,004.41 $6,231.67 $6,050.16 $5,873.95 $5,702.86 $5,536.76 $5,375.49 $5,218.93 $5,066.92
MAINTENANCE $5,000.00 1 $98,002.21 $3,115.83 $3,025.08 $2,936.97 $2,851.43 $2,768.38 $2,687.75 $2,609.46 $2,533.46
END OF LIFE $15,000.00 50 $0.00
TOTAL $2,305,031.53 $9,347.50 $9,075.25 $8,810.92 $8,554.29 $124,907.44 $8,063.24 $7,828.39 $7,600.38
KAMPALA – UGANDA
C Renewal
Costs
O
M
E
R

Local Case Study:
61
Project:
Discount rate: 3%
Period of analysis (in years): 30 24 25 26 27 28 29 30
Discount Factor 0.492 0.478 0.464 0.450 0.437 0.424 0.412
service life
(in years)
Total NPV Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
2.04.020.020 External wall finishes except cladding $40,893.38 15 $43,095.44 $16,847.53
2.04.020.050 External doors $4,153.97 35 $0.00
2.04.030 Roof finishes $31,543.15 40 $0.00
2.04.040.060 Internal doors $42,278.34 20 $23,408.49
$18,111.44 15 $19,086.72 $7,461.67
2.04.050.040 Exit signs, directory signs $2,076.99 10 $3,551.15 $855.69
2.04.060.010 Floor finishes (internal and external) $77,817.24 12 $92,860.37 $38,280.93
2.04.060.020 Internal wall finishes and cladding $55,842.29 15 $58,849.33 $23,006.28
external)
$50,413.18 15 $53,127.86 $20,769.56
inside basement
$13,669.90 20 $7,568.69
2.05.060 Supply of sanitary fittings and fixtures $42,331.76 15 $44,611.27 $17,440.12
2.05.080 Fire services $18,142.34 15 $19,119.28 $7,474.40
OPERATION $10,000.00 1 $196,004.41 $4,919.34 $4,776.06 $4,636.95 $4,501.89 $4,370.77 $4,243.46 $4,119.87
MAINTENANCE $5,000.00 1 $98,002.21 $2,459.67 $2,388.03 $2,318.47 $2,250.95 $2,185.38 $2,121.73 $2,059.93
END OF LIFE $15,000.00 50 $0.00
TOTAL $2,305,031.53 $45,659.93 $7,164.08 $6,955.42 $6,752.84 $6,556.15 $6,365.20 $109,010.70
CUMULATIVE TOTAL $2,162,227.13 $2,169,391.22 $2,176,346.64 $2,183,099.47 $2,189,655.63 $2,196,020.82 $2,305,031.53
KAMPALA – UGANDA
C Renewal
Costs
O
M
E
R

Local Case Study:
D. LCC Compressed (Sample)
62
Project:
Discount rate: 3%
Period of analysis (in years): 30 0 10 12 15 20 24 30
Discount Factor 1.000 0.744 0.701 0.642 0.554 0.492 0.412
service life
(in years)
Total NPV Year 0 Year 10 Year 12 Year 15 Year 20 Year 24 Year 30
2 CAPITAL CONSTRUCTION COSTS (CC) $1,536,084.55 0 $1,536,084.55 $1,536,084.55
2.04.020.020 External wall finishes except cladding $40,893.38 15 $43,095.44 $26,247.90 $16,847.53
2.04.020.050 External doors $4,153.97 35 $0.00
2.04.030 Roof finishes $31,543.15 40 $0.00
2.04.040.060 Internal doors $42,278.34 20 $23,408.49 $23,408.49
2.04.050.010 Balustrades, railings and handrails $21,243.42 20 $11,761.97 $11,761.97
$18,111.44 15 $19,086.72 $11,625.04 $7,461.67
2.04.050.040 Exit signs, directory signs $2,076.99 10 $3,551.15 $1,545.48 $1,149.98 $855.69
2.04.060.010 Floor finishes (internal and external) $77,817.24 12 $92,860.37 $54,579.45 $38,280.93
2.04.060.020 Internal wall finishes and cladding $55,842.29 15 $58,849.33 $35,843.04 $23,006.28
external)
$50,413.18 15 $53,127.86 $32,358.30 $20,769.56
2.05.020 Electrical services (excludes lighting fittings) $37,905.01 20 $20,987.08 $20,987.08
2.05.030 Fitting out lighting fittings $21,786.21 10 $37,249.11 $16,210.99 $12,062.50 $8,975.63
inside basement
$13,669.90 20 $7,568.69 $7,568.69
2.05.060 Supply of sanitary fittings and fixtures $42,331.76 15 $44,611.27 $27,171.15 $17,440.12
2.05.080 Fire services $18,142.34 15 $19,119.28 $11,644.88 $7,474.40
2.06. Surface and underground drainage $18,882.58 20 $10,454.83 $10,454.83
2.07. External and ancillary works $52,754.28 20 $29,208.77 $29,208.77
OPERATION $10,000.00 1 $196,004.41 $7,440.94 $7,013.80 $6,418.62 $5,536.76 $4,919.34 $4,119.87
MAINTENANCE $5,000.00 1 $98,002.21 $3,720.47 $3,506.90 $3,209.31 $2,768.38 $2,459.67 $2,059.93
END OF LIFE $15,000.00 50 $0.00
TOTAL $2,305,031.53 $1,536,084.55 $28,917.87 $65,100.14 $154,518.24 $124,907.44 $45,659.93 $109,010.70
CUMULATIVE TOTAL $1,536,084.55 $1,681,794.05 $1,757,730.52 $1,932,379.80 $2,093,075.20 $2,162,227.13 $2,305,031.53
KAMPALA – UGANDA
C Renewal
Costs
O
M
E
R

Local Case Study:
Indicative component lifespans
63
Indicative component lifespans SOURCE: RICS, 2017 (Based on information from BCIS (2006); CIBSE;
Scheuer, Keoleian and Reppe (2003)
Building part Building elements/ components Expected lifespan
Roof Roof coverings 30 years
Superstructure Internal partitioning and dry lining 30 years
Wall finishes: Render/ Paint 30/ 10 years respectively
Floor finishes:
Raised Access Floor (RAF)/ Finish layers
30/ 10 years respectively
Ceiling finishes:
Substrate/ Paint
20/ 10 years respectively
FF&E Loose furniture and fittings 10 years
Heat source, e.g. boilers, calorifiers 20 years
Space heating and air treatment 20 years
Ductwork 20 years
Electrical installations 30 years
Lighting fittings 15 years
Communications installations and controls 15 years
Water and disposal installations 25 years
Sanitaryware 20 years
Lift and conveyor installations 20 years
Opaque modular cladding e.g. rain screens, timber
panels
30 years
Glazed cladding/ Curtain walling 35 years
Windows and external doors 30 years
Finishes
Services/ M EP
Façade

64
ICMS 3
ICMS 1 ICMS 2
CARBON EMISSION CONSIDERATIONS

Why Carbon Emissions in ICMS 3?
65
• Whereas the second edition of ICMS extended the scope of the first edition to
encompass life cycle costs, reflecting the pivotal role they play in the financial
management of construction projects around the world, the third edition
recognises the criticality of reducing greenhouse gas emissions if a disaster
caused by global climate change is to be averted.
• In ICMS3, greenhouse gas emissions are measured in terms of carbon dioxide
(CO2) equivalent, and for simplicity, referred to throughout as „carbon
emissions‟.
• By providing a common reporting framework for life cycle costs and carbon
emissions, ICMS3 allows their interrelationship to be explored, and provides the
opportunity to make decisions about the design, construction, operation and
maintenance of the built environment to improve environmental sustainability.
• ICMS 3 will therefore contribute positively to efforts to decarbonise the
construction sector in the most cost-effective way. Through ICMS 3,
professionals will, for the first time, be empowered to deliver a globally
consistent method for carbon life cycle reporting across construction projects,
from buildings to other civil engineering and infrastructure facilities.

66
• Carbon hotspot: Carbon significant aspect of a
project which should be targeted for reduction.
• Cradle-to-cradle emissions: Carbon emissions
assessment that includes the carbon benefits of
displacing the use of virgin materials.
• Cradle-to-gate carbon emissions: Carbon
emissions between the confines of the „cradle‟
(earth) up to the factory gate of the final processing
operation. This includes mining, raw materials
extraction, processing and manufacturing.
• Cradle-to-site carbon emissions: Cradle-to-gate
emissions plus delivery to the site of use
(construction/installation site).
• Cradle-to-end of life construction: Cradle-to-site
plus construction and assembly on site.
• Cradle-to-grave carbon emissions: Cradle-to-end
of construction plus maintenance, refurbishments,
demolition, waste treatment and disposals („grave‟).
• Cradle-to-cradle: The process of making a
component or product and then, at the end of its
life, converting it into a new component of either the
same quality (e.g. recycling of aluminium cans) or a
lesser quality (down-cycling of a computer plastic
case into a plastic container).
• Embodied carbon: Carbon emissions associated
with energy consumption (embodied energy) and
chemical processes during the manufacture,
transportation, assembly, replacements and
deconstruction of construction materials or
products, which can be measured from cradle-to-
gate, cradle-to-site, cradle-to-end of construction,
cradle-to-grave, or even cradle-to-cradle. It is
usually expressed in kilograms of CO2e per
kilogram of product or material.
• Global Warming Potential (GWP): A relative
measure of how much a given mass of greenhouse
gas is estimated to contribute to global warming. It
is measured against CO2e which has a GWP of 1.
• Greenhouse gases: Any gases that contribute to
the greenhouse effect that causes global warming,
including carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O), ozone (O3), chloro-
fluorocarbons (CFCs) and water vapour (H2O).
• Operational carbon: Carbon emissions‟
association with energy consumption (operational
energy) while the building is occupied. This
includes the regulated load (e.g. heating, cooling,
ventilation, lighting) and unregulated/plug load (e.g.
ICT equipment, cooking and refrigeration
appliances).
Key Definitions:

67
• Carbon Emissions (CO2e) is the basket of
greenhouse gases (GHG) that affect climate
change, based on the relative impact of a given
gas on global warming (the so called global
warming potential - GWP).
• For example, if methane has a global warming
potential of 25, it means that 1 kg of methane
has the same impact on climate change as 25
kg of carbon dioxide and thus 1 kg of methane
would count as 25 kg of CO2e.
Example
of
GHG
INVENTORY
(
Source:
McGill
University)
Greenhouse gas GWP over
100 years
Typical sources
Carbon dioxide (CO2) 1 Energy combustion,
biochemical reactions
Methane (CH4) 25 Decomposition
Nitrous oxide (N2O) 298 Fertilizers, car emissions,
manufacturing
Sulphur hexafluoride
(SF6)
22,800 Switch gears, substations
Perfluorocarbon (PFC) 7,390 –
12,200
Aluminium smelting
Hydrofluorocarbon
(HFC)
124 – 14,800 Refrigerants, industrial gases
(Source: IPCC Fourth Assessment Report:
Climate Change 2007)
Scope 1: All direct GHG emissions (sourced and
controlled by the reporting body).
Scope 2: Indirect GHG emissions from
consumption of purchased electricity, heat or
steam.
Scope 3: Other indirect GHG
emissions such as the extraction
and production of purchased
materials and fuels, business
travel, electricity-related activities
not covered in Scope 2, waste
disposal etc.
Key Definitions:

68
Measuring greenhouse gas emissions in
terms of carbon dioxide (CO2) equivalent:
• Construction projects give rise to global climate
change impacts through the emission of
greenhouse gases (GHGs):
• Carbon dioxide (CO2)
• Methane (CH4)
• Nitrous oxide (N2O)
• Climate change impacts are considered in terms
of Global Warming Potential (GWP), which is
the heat absorbed by the emission of different
greenhouse gases.
• GWP can be expressed on a comparable basis (i.e. in
units of carbon dioxide equivalent (CO2e) per 1 tonne of
the gas over 100 years).
• This carbon dioxide equivalent metric is commonly
referred to as „carbon emissions‟ and all relevant
greenhouse gases are typically included in the carbon
assessments using conversion factors.
GHG: a gas that contributes to the
greenhouse effect by absorbing infrared
radiation.
THE
GHG
EFFECT

69
Measuring greenhouse gas emissions in
terms of carbon dioxide (CO2) equivalent:
• Life Cycle Carbon Emissions from construction
should be reported in kilograms carbon dioxide
equivalent (kgCO2e), or any clearly stated
metric multiples thereof as appropriate, such as
tonnes of carbon dioxide equivalent (tCO2 e).
• Carbon emissions can be subject to monetary
valuation, e.g. through carbon markets and
emissions trading schemes.
• Adopted by several countries for certain
industrial sectors and activities, with carbon
prices varying over time.
• Life Cycle Carbon Emissions associated with
construction projects and constructed assets
typically comprise a mixture of traded and non-
traded carbon.
• Furthermore, to assess and manage the
reduction of carbon from construction, it is
important to measure absolute carbon
emissions.
• For these reasons, it is not necessary to convert
and report carbon in monetary terms although
some organisations in some jurisdictions may
wish to do so in addition to reporting in terms of
the kgCO2e metric, e.g., to directly feed into
business cases and project investment
decisions.
• If the carbon emissions subject to monetary
valuation arise at different times, the time value
of money must be considered as set out in Part
2.4 of ICMS3.
Carbon assessment and
management approach:
• Alongside other forms of carbon accounting,
carbon assessment for construction is rapidly
evolving as governments and the private
sectors adopt significant carbon emission
reduction targets to curb global climate change
and put in place plans and actions required to
achieve them.
• ICMS3 provides a reporting framework for
carbon emissions to be used in conjunction with
existing standards, guidance and tools, and
emerging developments that are coming on

70
International standards for carbon
assessment include:
• ISO 21931-1:2010 Sustainability in building
construction – Framework for methods of
assessment of the environmental performance
of construction works – Part 1: Buildings
• ISO 21931-2:2019 Sustainability in buildings
and civil engineering works – Framework for
methods of assessment of the environmental,
social and economic performance of
construction works as a basis for sustainability
assessment – Part 2: Civil Engineering Works
• ISO 21930:2017 Sustainability in buildings and
civil engineering works – Core rules for
environmental product declarations of
construction products and services
• EN 15978:2011 Sustainability of construction
works –Assessment of environmental
performance of buildings – Calculation method
• EN 15804: 2012 + A2:2019 Sustainability of
construction works – Environmental product
declarations – Core rules for the product
category of construction products
• EN 15643:2021 Sustainability of construction
works – Framework for assessment of buildings
and civil engineering works
• EN 17472 (draft) Sustainability of construction
works. Sustainability assessment civil
engineering works – calculation methods and
• PAS 2080:2016 Carbon Management in
Infrastructure.
• Companies and other organisations also
commonly utilise the Greenhouse Gas Protocol
(GHGP) which provides an international
standard for corporate accounting and reporting
emissions, categorising greenhouse gases into
Scopes 1, 2 and 3 based on the source.
• The GHGP is a joint initiative of World
Resources Institute and World Business Council
on Sustainable Development

71
Reporting carbon emissions alongside
life cycle costs
• Carbon assessments for major construction
projects and constructed assets can be complex
and data-intensive
• There may be challenges and constraints in
reporting Life Cycle Carbon Emissions pending
the further development of practical assessment
tools and specific data sources.
• Transparency is therefore of utmost importance
so that when presenting carbon emissions, the
scope of emissions that have been included or
excluded are made clear.
• As for life cycle costs, Life Cycle Carbon
Emissions may be reported at a lesser level of
detail than the underlying analysis. For
example, detailed analysis may be at Level 4
Sub-Groups, whereas reporting may be at Level
1 Projects or Sub-Projects or Level 2 Categories
or Level 3 Groups.
• Carbon assessment standards (i.e. EN
15978:2011) identify a series of carbon stages
(A0-C4 plus D) that can map to the
ICMS/CROME Categories as shown in App. H.
• There are various groupings of these stages
that tie into different parts of the life cycle (e.g.
carbon emissions associated with products or
construction processes, all up front carbon, all
embodied carbon) reflecting the limitations in
the scope of carbon assessment undertaken at
a particular point in the development of a
particular project.
• Depending on the project, varying proportions of
the overall carbon emissions may be associated
with different stages.
• The total carbon emissions associated with the
materials and products used, their transportation
and the construction processes to create an
asset as well as the emissions associated with
the asset‟s maintenance, repair and
refurbishment/replacement are sometimes
known as „embodied carbon‟, corresponding to
carbon stages A1-A5, B1-B5 and C1-C4.

72
How ICMS reporting maps to the stages associated with whole life carbon assessment
2. Construction
Carbon Emissions
(CE)
1. Acquisition
Carbon Emissions
where significant
(AE)
72
A C
3. Renewal
Carbon Emissions
(RE)
R
4. Operation
Carbon Emissions
(OE)
O
5. Maintenance
Carbon Emissions
(ME)
6. End of Life
Carbon Emissions
(EE)
M E
A0
Pre-construction
(infrastructure
only)
A1 A2 A3 A4 A5
Raw
material
extraction
and
supply
Transport
to
manufacturing
plant
Manufacturing
&
fabrication
Construction
&
installation
process
Transport
to
project
site
B1 B2 B3 B4 B5 C1 C2 C3 C4 D1 & D2
Use
Maintenance
Repair
Replacement
Refurbishment
B6
B7
B8
Operational energy use
Operational water use
Other operational processes
(infrastructure only)
Deconstruction
demolition
Transport
to
disposal
facility
Waste
processing
for
reuse,
recovery
or
processing
Disposal
Benefits
and
loads
beyond
the
system
boundary:
D1
reuse,
recycling
and
energy
recovery
resulting
from
the
net
flows
of
material
exiting
the
boundary.
D2
exported
utilities
exiting
the
system
boundary.
Sequestered carbon
B9
Users‟ utilisation of infrastructure
(infrastructure only)
In use End of Life
Beyond
building/
asset life
Construction
Products
Typical
stages/
groupings
used in
carbon
assessments Embodied carbon (excludes B6 to B9)
Up-front carbon
As ICMS is a reporting system, it does not cover how
you calculate carbon, as it is expected to be dealt with
in slightly different ways from market to market.

QUANTITY SURVEYORS‟
Roles in the Sustainability Agenda: a SWOT Analysis 73
ICMS 3
“Many within the construction industry regard measurement and the Quantity Surveyor as synonymous. For years, Quantity
Surveyors, using a variety of standard methods, have provided quantities and schedules for the industry to calculate estimates,
tenders and final accounts. However, the popularity of measurement was due in the main to the widespread use of bills of
quantities, which during the past few years have declined, while other methods of procurement, not dependent on a detailed bill of
quantities, have become more popular with clients. Once a key element of quantity surveying diploma and degree courses,
measurement has now been confined to the status of just another module.” – Duncan Cartlidge, 2011
Sustainable construction has become a feasible solution for overcoming various social, economic and environmental issues faced
by the construction industry. Because of the vital role quantity surveyors play in construction, involvement in sustainable
construction has become essential. However, there is a literature gap and an industry need to identify how quantity surveying
inputs can contribute to sustainable construction. This study, therefore, aimed to identify the significance of quantity surveying
competencies in sustainable construction in Sri Lanka. A literature review was first carried out followed by interviews and a
questionnaire survey. The findings revealed that construction technology and environmental services; computer literacy; ethics
and professional practice; leadership and management; and measurement and costing as areas in sustainable construction which
are significant to quantity surveyors, and therefore, competencies in these areas need to be developed. The research ranked
sustainable approaches and sustainable techniques based on the significance of their associated quantity surveying inputs. The
research recommends construction technology and environmental services; computer literacy; ethics and professional practice;
leadership and management; and measurement and costing as areas in which competencies of quantity surveyors need to be
given consideration in sustainable approaches and sustainable techniques. Quantity surveyors possessing these competencies
will enhance sustainable construction. – Chamikara, Perera and Rodrigo, 2018

74
WHAT IS SUSTAINABILITY:
 There are many definitions
 It means different things to different people
in different parts of the world, depending on
their circumstances
 There may never be a consensus view on
its exact meaning
 Available definitions:
 „Development that meets the needs of the
present without compromising the ability of the
future generations to meet their own needs.‟ –
Brundtland Report, 1987: 16
 „The ways in which built assets are procured and
erected, used and operated, maintained and
repaired, modernised and rehabilitated and reused
or demolished and recycled constitutes the
complete life cycle of sustainable construction
activities.‟ – Duncan Cartlidge, 2013
 “Strategies for building and living that are
capable of being maintained for a long period of
time so that resources are not depleted and
permanently damaged.” – Crown and Smith,
2004, p.301.
 “Introduction of sustainability is not only the
introduction of sustainable materials but also the
consideration of various factors such as
environment, quality of life, and economic,
institutional and social issues.” - European
Commission, 2013
Roles in the Sustainability Agenda: a SWOT Analysis
THE THREE PILLARS OF SUSTAINABILITY:
1. ECONOMY (ECONOMIC PROSPERITY)
2. EQUITY (SOCIAL WELL-BEING)
3. ENVIRONMENT PROTECTION
Today, sustainability has become fundamental
to all sectors including construction as human
survival is being threatened by the accelerated
emission of greenhouse gases.
Sustainable construction refers to the
construction of a sustainable structure as well
as to the application of processes that are
environmentally responsible and resource-
efficient throughout a building‟s life cycle (i.e.
from planning to design, construction,
operation, maintenance, renovation, and
demolition) (Kibert 2016).

75
WHAT IS SUSTAINABILITY:
„Our Common Future is not a prediction of
ever increasing environmental decay,
poverty, and hardship in an ever more
polluted world among ever decreasing
resources. We see instead the possibility
for a new era of economic growth, one that
must be based on policies that sustain and
expand the environmental resource base.
And we believe such growth to be
absolutely essential to relieve the great
poverty that is deepening in much of the
developing world.‟ (Brundtland Report,
1987: 11)
Construction practitioners worldwide
(including Quantity Surveyors) are
beginning to appreciate sustainability and
acknowledge the advantages of sustainable
buildings and other infrastructure.
With the development of the sustainability
agenda, there is a growing need for these
construction professionals to have skills,
knowledge and values in sustainable
construction, whereby Quantity Surveyors, for
example, can get involved in sustainable
construction especially in evaluating the
economic sustainability of structures.

76
ROLE OF THE QS IN THE
SUSTAINABILITY AGENDA:
The Quest for Sustainable Energy (2014)
has identified that the construction sector,
due to its excessive use of energy, is
presently a major challenger to human
existence.
Buildings along with agriculture are
responsible for about 32.5% of the world‟s
energy consumption (International Energy
Agency 2014).
Buildings account for 38% of the total CO2
emissions (Centre for Climate and Energy
Solutions 2008)
According to Reed and Wilkinson (2005),
development surveyors, valuation
surveyors, building surveyors, facility
managers, quantity surveyors and
construction surveyors can play a major
role in making buildings energy efficient.
• Quantity Surveyors therefore need to
develop their carbon management skills,
which is increasingly becoming vital in
construction projects.
• With the advent of ICMS3, there is no better
time than now for the QS to become the
expert in Carbon Accounting and
Management for the Construction Industry,
through:
• building sustainability assessment (a
whole-life value approach to measure
and assess building sustainability)
• sustainability performance assessment
• zero carbon and property value, and
sustainability value achievement in
construction procurement.

77
SWOT ANALYSIS:
A SWOT analysis framework can be used to identify one‟s strengths, weaknesses,
opportunities and threats.
Strengths and weaknesses are controllable, whereas opportunities and threats are factors
that the one may not have direct control over.
Therefore, strengths and weaknesses are considered internal factors, whereas
opportunities and threats are considered external factors (Odubivi and Oke, 2016).
Strengths Weaknesses
Opportunities Use your strengths to take
advantage of opportunities
Overcome your weaknesses to
take advantage of opportunities
Threats Use your strengths to reduce
the impact of threats
Address your weaknesses that
will make threats a reality
An adaptation of a SWOT Analysis Matrix (Whalley, 2010, in Ramdav & Harinarain, 2020)

78

79
WEAKNESSES

80
OPPORTUNITIES

81
THREATS

CONCLUDING REMARKS
So How do we PROCEED?
82
• „The global construction industry needs to expand its planning horizons to prepare
for potential future events, trends and operating environments…yet construction
companies appear reluctant to engage in planning beyond a few years, or past the
next project, and there is little evidence of a formal process in the formulation of
long term strategies.‟
• Whatever the challenges of sustainability, they are inherently interdisciplinary.
Professionals therefore need access to different bodies of knowledge or, to be
committed to learning across artificially created professional boundaries.
• In this regard, there is need for increased collaboration.
RECOMMENDATIONS
1. Building Regulations - Extended to include codes on sustainability
2. Seek training is understanding the sustainability of the Built Environment, e.g.
visit https://ghgprotocol.org/standards (for available GHG standards),
https://www.becd.co.uk/ (for Built Environment Carbon Database), etc.
3. Adopting ICMS standards by both government and the private sector
4. Marketing QS roles in Sustainability issues.

CONCLUDING REMARKS
So How do we PROCEED?
83
“Through a strategic frameworks, the strengths of the quantity
surveying profession can be used to minimise the threats of the
profession and the weaknesses of the profession can be improved
by taking advantage of the opportunities of the profession. Once
the profession eliminates the weaknesses, they can avoid potential
threats. Therefore, the profession can achieve sustained growth and
remain relevant.” (Ramdav & Harinarain, 2020)
“The standard is an opportunity for surveyors and cost engineers to
become more involved in the effort to achieve net-zero carbon. To make
progress with this and some of the construction industry's carbon
commitments, we need more engagement from the mainstream
surveying professions (building surveying, quantity surveying and project
management) rather than having it seen as some kind of niche activity.”
(Alan Muse, 2022)

International Construction Standards Drive Sustainability

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