The document discusses the implementation of the New Rules of Measurement (NRM) in the construction industry, emphasizing the need for consistency in cost estimating practices among project professionals. It outlines ten strategies for organizations to maximize the benefits of NRM adoption, such as identifying opportunities, assessing implications, and planning for resistance to change. Successful adoption is presented as a way to gain a competitive advantage, particularly in the current economic climate.

1. July-August 09 Construction Journal 19
he New Rules of Measurement (NRM) will provide a common
and consistent framework and language for QSs to provide cost
estimates and plans to clients and fellow project professionals.
For clients, the major efficiencies will come when there is consistency in
use and application of the NRM across the professional team and supply
chain. Adoption of the new rules will require a significant change in the
way of working for some organisations. To gain maximum value and
reduce disruption, leaders must consider the strategic opportunities that
adoption offers and manage the change accordingly. Here are 10 ways
to ensure maximum value is obtained for your organisation.
1. Identify opportunities and benefits
For early adopters, opportunities may be created to offer additional services,
e.g. specialised companies providing cost-planning information directly to
the client’s QS without recourse to a main contractor. Benefits of adoption
should be identified, e.g. reduced production time and more ‘accurate’
cost plans, measured through metrics to assess ‘as-is’ and future state.
2. Assess the implications
The impact will vary depending on the importance of the cost-planning
function within your organisation, e.g. for a major QS firm this may
require wholesale change to embedded systems. Tactically, the change
may impact the production, format and presentation of estimates and
use of historical cost information. Associated existing processes and
systems may have to be adapted, e.g. in finance.
3. Identify the right time
A business case should be produced assessing the benefits and
costs of adoption. Timing considerations must include current/future
organisational workload and other planned changes as operational staff
time will be required to implement the necessary NRM changes. Staff
will also need be fully trained to ensure understanding and competence.
4. Assess the impact on client and team relationships
Responsibilities and organisational interfaces may change both internally
and externally through NRM adoption. These changes must be planned
for, e.g. clients should be coached to provide improved briefs to make
the best use of the opportunities offered by the NRM.
5. Identify associated organisational and process changes
Implementing NRM may create opportunities to make organisational
changes (e.g. rationalisation of roles), process improvements (e.g.
documentation and simplification of existing processes) and system
enhancements to technologies being used.
6. Identify resistance from people
Most people resist most change most of the time. You should therefore
identify the sources and types of resistance that NRM adoption may
cause. These may include a perceived threat to self-worth from people
T
who are experts in other measurement approaches or see the change
as additional work that will not be recognised. To mitigate this resistance,
involve those affected in the planning process to ensure they contribute
to the business case.
7. Don’t stop communicating
Internal and external communication must be planned and then tested
for understanding and acceptance by recipients. Consider piloting the
new approach with perceived safe projects and clients where learning
can be passed on to the wider team, transitioning fully to the new
approach when appropriate.
8. Define accountabilities and performance management
Sponsorship at a senior level is required to ensure resources are made
available and relevant changes are implemented. One person should
be accountable for successful NRM adoption, with them delegating
responsibility as appropriate to members of the team.
9. Identify cost-planning packages
Pre-packaged solutions may minimise development time if the selected
system’s functionality meets your specific requirements and interfaces
with other systems have been identified, and any necessary changes
planned for. Consideration must also be made of the time required for
staff to become proficient in their use.
10. Build in to existing business governance
When fully transitioned to the new approach, the benefits identified in
the business case should be assessed using previously agreed metrics.
Given the importance of cost plans and the potential risks to the
business of any errors, governance must be in place to ensure that
outputs are reviewed before submission.
A timely and well-planned adoption of the NRM can provide
organisations with a competitive advantage, something that will be
welcomed by all firms especially in the current economic climate.
Richard Jones is Commercial Director of Composite, a specialist
construction company. Donnie MacNicol is Director of management
consultancy Team Animation, a member of the Association for Project
Management’s Policy Unit and Chair of its People Specific Interest Group
donnie@teamanimation.co.uk
It’s a People Thing – Practical Ideas for Accelerating Change is available
from www.ricsbooks.com
Related competencies include: T022, SP001
Working to
your advantage
Achieving the maximum benefit from NRM adoption should include
looking at strategic opportunities, say Richard Jones and Donnie MacNicol
RICS New Rules of Measurement – A people perspective
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