When a cost consultant says an estimate has been prepared to NRM, it is shorthand for a recognised standard rather than a private way of working. The RICS New Rules of Measurement give everyone a shared structure for measuring and presenting cost, which is what lets you compare one figure with another.
This guide explains what RICS NRM is, how its volumes fit together, and what it means in practice when you receive an estimate or a bill that has followed it. You do not need to memorise the rules, but knowing what they cover helps you read costs with confidence.
What RICS NRM is
The New Rules of Measurement are published by the Royal Institution of Chartered Surveyors, the RICS. They set out how to measure and describe building work so that cost information is produced in a consistent way across the industry.
Before a common standard, two surveyors could measure the same building and present the cost so differently that the numbers could not be compared. NRM exists to remove that ambiguity, giving a single framework from early budgets through to the final account.
The three volumes
NRM is made up of three parts, each covering a different stage of a project. Together they take a scheme from a first budget to a settled final account.
- NRM1 covers order of cost estimating and elemental cost planning, used early to set and control the budget.
- NRM2 covers detailed measurement for works procurement, which is the basis for a bill of quantities.
- NRM3 covers the measurement and maintenance of building components over their life, used for whole-life and running costs.
How the volumes connect
The volumes are designed to flow into one another. An early elemental estimate prepared to NRM1 sets the cost plan, which is then developed into measured works under NRM2 as the design matures.
Because the structure carries through, the budget set at the start can be tracked against the detailed prices later, so you can see where cost has moved and why.
Why it matters for your estimate
An estimate prepared to NRM is easier to interrogate. Costs are grouped into recognised elements such as substructure, frame and finishes, so you can see how the money is split rather than facing a single lump sum.
It also supports benchmarking. Cost data sources such as BCIS, the Building Cost Information Service run by the RICS, are structured around the same elements, so an NRM estimate can be compared against typical costs for similar buildings. Those benchmarks are indicative and quoted ex VAT, not a quote for your specific job.
What builders and developers should expect
If you commission an estimate or a cost plan to NRM, expect a clear elemental breakdown, defined treatment of preliminaries, and transparent allowances for risk and provisional items. You should be able to see what is measured and what is still an assumption.
For a developer, that structure makes it far easier to control a budget as the design develops, because every change can be traced to an element. For a builder, pricing a bill produced to NRM2 means you are measuring the same scope as your competitors, which keeps tenders fair. Treat all rates within it as indicative until the scope is confirmed.