1. International Construction Measurement Standards (ICMS)
Tayside Construction Forum
Professor Malcolm Horner BSc PhD CEng FICE FRSE Hon FRIAS

2. Agenda Introduction Purpose – What’s the need? Why bother?
Evolution of the Standards
Overview of the Standards

3. ICMS

4. What are the aims of ICMS?
Construction cost to be consistently and transparently benchmarked;
The causes of difference in costs between projects can be identified;
Properly informed decisions on the design and location of construction projects to be made; and
Data to be used with confidence for project financing & investment, programme and decision-making and related purposes
The standard will allow capital cost comparisons to be made across building and civil engineering projects (works). Whole lifecycle costs will also be included if possible, or a firm link developed to allow further work on this subject.
It will:
adopt universal definitions of construction costs and the associated variables;
create a single classification system for building and civil engineering projects (works) for use with digital tools such as BIM;
recommend a consistent data framework for the collation of national statistics;
be as simple as possible, commensurate with allowing robust comparisons to be made;
articulate with local standards and the IPMS wherever possible;
recommend a standard reporting format;
allow global cost comparisons and benchmarking for global investors, corporate bodies and contractors;
provide a checklist for international best practice;
when combined with IPMS, consistent cost comparisons on a per m2 basis;
provide consistent language and terminologies for the worldwide, and increasingly mobile, profession; and
accommodate the need for continuous refinement, updating and change.

5. Why are they important?
Knowing what is, and what is not included in the construction cost of a project is vital to:
Understanding how it compares with other projects within or outside that market
Accurately assessing value-for-money
Assessing and benchmarking project construction cost
Reporting national and international statistics on construction output

6. Standards used today?
The standards used today differ within countries and from one jurisdiction to the next
Depending on where the project is located the costs might include some or all of the following elements:
Labour and materials
Land acquisition
Professional Fees
Client costs

7. Why are they important?
Different approaches to presenting the costs of construction can produce results that vary by as much as 25-30% due to inconsistent methodology and standards

8. What are the implications of global inconsistency?
Inability to accurately compare project construction costs
Investment risk
Lack of transparency
Leading to:
Under-investment in construction projects
Time and cost overruns

9. Who will benefit from ICMS?
Any party that has a direct or indirect interest in construction projects will benefit
Those investing in or managing construction projects will benefit significantly
Financial institutions will have a consistent basis for assessment of project funding requirements
The public will benefit through enhanced, prudent assessments of public projects
Benefits and users
At a project level:
Financial institutions, investors, clients, consultants, contractors and the supply chain.
At a national level:
Governments, regulatory and standards setting bodies, and national professional institutions.
At an international level:
Global financial institutions, investors, clients, consultants, NGO’s and global professional institutions and umbrella bodies.

10. Evolution – The ICSM Coalition
Formed on 17 June 2015 after a formal meeting at the International Monetary Fund in Washington DC
Currently 44 coalition members including the ICE
ICMS is being developed in two parts as follows:
ICMS 1: Agree higher level cost centres and definitions for infrastructure (with buildings as a sub-set). Link cost centres and elemental headings with both UN ISIC (using ICMS 1) and IPMS (ICMS 2 in terms of building cost/m2); and
ICMS 2: Define construction cost and harmonise building elemental headings and definitions at a project (management) level . Prepare a relationship map linking ICMS to IPMS.

11. Evolution – The Standard Setting Committee
An independent Standards Setting Committee (SSC) was established to draft the ICMS
The SSC comprises 27 experts from around the world
One private and two public consultations
ICMS is being developed in two parts as follows:
ICMS 1: Agree higher level cost centres and definitions for infrastructure (with buildings as a sub-set). Link cost centres and elemental headings with both UN ISIC (using ICMS 1) and IPMS (ICMS 2 in terms of building cost/m2); and
ICMS 2: Define construction cost and harmonise building elemental headings and definitions at a project (management) level . Prepare a relationship map linking ICMS to IPMS.

12. Framework The hierarchical framework has four levels:
Level 1: Project or Sub-Project
Level 2: Cost Category
Level 3: Cost Group
Level 4: Cost Sub-Group

13. Framework Project Sub - Project Cost Categories Cost Groups
Cost Sub-Groups

14. Framework

15. Cost Categories (Level 2) and Groups (Level 3)
Total Capital Cost (1 + 2) 
1 Capital Construction Costs
1.01 Demolition, site preparation and formation
1.02 Substructure 
1.03 Structure 
1.04 Architectural works | Non-structural works 
1.05 Services and equipment 
1.06 Surface and underground drainage 
1.07 External and ancillary works
1.08 Preliminaries | Constructor’s site overheads | general requirements
1.09 Risk Allowances
1.10 Taxes and Levies

16. Cost Categories (Level 2) and Groups (Level 3)
Associated Capital Costs 
2.01 Work and utilities off-site 
2.02 Post-completion loose furniture, fittings and equipment
2.03 Construction-related consultants and supervision
2.04 Risk allowance

17. Cost Categories (Level 2) and Groups (Level 3)
Site Acquisition and Client’s Other Costs
3.01 Site acquisition 
3.02 Administrative, finance, legal and marketing expenses

18. Capital Construction Cost Group (Level 3)
1.05 Services and equipment
Scope: All fixed services and equipment required to put the completed project into use, whether they are mechanical, hydraulic, plumbing, fire-fighting, transport, communication, security, electrical or electronic, excluding external underground drainage.

19. Associated Capital Cost Group (Level 3)
2.01 Work and utilities off-site
Scope: All payments to government authorities or public utility companies to connect public work and utilities to the site, or services diversions, to enable the Project

20. Buildings Sub Groups (Level 4)
Internal divisions:
010 - non-structural internal walls and partitions
020 - shop fronts
030 - toilet cubicles
040 - moveable partitions
050 - cold rooms
060 - internal doors
070 - internal windows
080 - roller shutters and fire shutters
090 - sundry concrete work

21. Civil Engineering Sub Groups (Level 4)
Item
Description
Roads and motorways
Railways
Bridges
Tunnels
Waste water treatment works
Water treatment works
Pipelines
Well drilling
Power generating plants
Chemical plants
Refineries
Note
Cost Category (Level 2)
Cost Group (Level 3)
Cost Sub-Group (Level 4) 1
Capital Construction Costs
1.03
Structure
Piers and towers ◙
Suspension system
Decks
Tunnel lining
Road/track base
Pavement
Service roads and approaches
Parapets/edge treatment
Main structures
Tanks, rigs, storage containers and the like
Supports for tanks, pipes and the like

22. Attributes and Values - Common
Project Attributes
Project Values
Common
Project level only
Report
Price Level
Currency Conversion
Programme
Site
Procurement

23. Attributes and Values - Common
Price Level
ISO currency code
(e.g. USD)
Cost base date
(month and year)
Price basis
fixed | fluctuating

24. Attributes and Values - Buildings
(A construction with a cover and enclosure to house people, equipment or goods for persistent daily use)
Code
Local functional classification standard
name of standard
code number of construction
Works
Functional type
residential | office | commercial | shopping centre | industrial | hotel | car park | warehouse | educational | hospital | airport terminal | railway station | ferry terminal | plant facility | other stated
Nature
new build | major refurbishment | temporary
Grade (qualitative description to be read in conjunction with the location)
ordinary quality | medium quality | high quality
Environmental grade
grade and name of environmental certification

25. Attributes and Values - Buildings
Principal design features
structural (predominant)
timber | concrete | steel | load-bearing masonry | other stated
external walls (predominant)
stone | brick/block | render/block | curtain walling | other stated
environmental control
non-air conditioned | air conditioning
degree of prefabrication
less than 25% l up to 50% l up to 75% I up to 100%, of Capital Construction Costs
Project Complexity
shape (on plan)
circular, elliptical or similar | square, rectangular, or similar | complex
design
simple | bespoke | complex
method of working
sectional completion | out-of-hours working | confined working | other stated

26. Attributes and Values – Buildings
Project Quantities
Site area (within legal boundary of building site, excluding temporary working areas outside the site)
(m2 | ft2)
Covered area on plan
Gross external floor area as IPMS 1
Gross internal floor area as IPMS 2
Functional units
occupancy | number of bedrooms | number of hospital beds | number of hotel rooms | number of car parking spaces | number of classrooms | number of students | number of passengers | number of boarding gates | other stated

27. Attributes and Values –Civil Engineering
Railways
(A permanent way, rail track composed of two parallel rails fixed to sleepers, or single monorail that includes spurs, sidings and turnouts for train traffic or the like, including tramways, metro rails, light rails and other rapid mass transit systems)
Works
Functional type
high speed | express | light rail | tram I freight l mixed traffic l other stated
Nature
new build | major refurbishment
Environmental grade
grade and name of environmental certification
status
targeted | achieved none
Principal design features
position
at grade | in tunnel | elevated | other stated
design speed
(km | miles per hour)
train power systems
Overhead AC | overhead DC | third or contact rail(s) DC l diesel electric l other stated
number of tracks
track gauge
construction rigidity
flexible | rigid
rail joints
fish-plated | welded

28. Sub-structure/structure boundary

29. Sub-structure/structure boundary

30. ICMS Partners

31. How can I get involved?
Professional and standards-setting bodies are encouraged to join the coalition and to adopt ICMS.
Private firms, universities and governments are invited and encouraged to become voluntary ‘partners’ and work with the coalition to develop, raise awareness of and implement ICMS.

32. International Construction Measurement Standards (ICMS) – Get Involved!