Director’s adjustment
The New Rules of Measurement (NRM) are published by the Royal Institute of Chartered Surveyors (RICS). They provide a standard set of measurement rules for estimating, cost planning, procurement and whole-life costing for construction projects.
According to NRM2: Detailed measurement for building works, a director’s adjustment is:
| …a reduction or addition to the tender price, derived by the contractor’s estimating team, offered by the director(s) of the contractor. |
The contractor’s directors, or other senior managers, will typically perform a commercial review of the estimated price with a view to how best to secure work. They may then decide to adjust to the estimated price, taking into consideration the need to secure work, the level of competition in the market, the company’s cash flow, financing charges and so on.
This will be identified as a separate line in the bill of quantities, where the contractor can insert their adjustment.
[edit] Related articles on Designing Buildings Wiki
- Approximate bill of quantities.
- Bill of quantities breakdown structures.
- Bill of quantities.
- Elemental bill of quantities.
- Firm bill of quantities.
- Measurement.
- NRM2.
- Tender documentation.
- Tender pricing document.
- Types of bill of quantities.
- Work package bill of quantities.
- Work section bill of quantities.
Featured articles and news
The world’s first publicly funded civic park.
Exploring permitted development rights for change of use
Discussing lesser known classes M, N, P, PA and L.
CIOB Art of Building 2024 judges choice winner
Once Upon a Pass by Liam Man.
CIOB Art of Building 2024 public choice winner
Fresco School by Roman Robroek.
HE expands finance alliance to boost SME house building
Project follows on from Habiko public-private place making pension partnership for affordable housing delivery.
Licensing construction; looking back to look forward
Voluntary to required contractors (licensing) schemes.
A contractor discusses the Building Safety Act
A brief to the point look at changes that have occurred.
How orchards can influence planning and development.
CIOB Construction Manager of the Year award
Shortlist set to go head-to-head for prestigious industry title.
HSE simplified advice for installers of stone worktops
After company fined for repeatedly failing to protect workers.
Co-located with 10th year of UK Construction Week.
Time for knapping, no time for napping
Decorative split stone square patterns in facades.
A practical guide to the use of flint in design and architecture.