Coursework Submission

Cover Sheet
To be completed by the student:

LJMU ID NO: 1093791

Student Name Full Name: Mohamed Abdul Cader Mufaz Mohamed

Delivery Mode: Distance Learning

Location: Qatar

Module Code: 6503ICBTQS

Module Title: Contract & Procurement Strategies

Coursework Title: CW-01

Name of Tutor: Ms.Kavitha K.

Due Date: 22-11-2023

Word Count: 688

Marker (If different from tutor):

Introduction

The globalization of the construction business has increased the need to make meaningful
comparative cost analysis between countries, not least by international organizations. Even with
different rules and measurements patterns, for example: ARM 4 in Ireland, NRM 1/2/3 in UK,
ABNT/NBR in Brazil and SSMBW in South Africa the lack of parameters to identify and relate
different construction costs between countries has become a draw for investment growth across
the board. Although construction companies and businesses have been running for years,
according to ICMSC (2017) approaches to presenting construction costs may vary up to 25-30%
due to inconsistent methodology and standards.

As property, construction and infrastructure are a global business, Investors, clients and
government bodies need to be confident with the cost at the lifecycle project so far as
infrastructure building. The implications of such global inconsistency are Inability to accurately
compare project costs, Investment risk and lack of transparency. Key Stakeholders need clarity
of the cost in order to confidently invest, benchmark and analyze value for money and the
continued practice of local and regional custom, may lead to under-investment in construction
projects and time and cost over-runs (RICS, 2017).

The International Construction Measurement Standards (ICMS) came to supply the need for an
international standard as a template for report construction costs and ensure global consistency
in the presentation of the full lifecycle cost of construction projects.

ICMS

ICMS are the way in which construction contract costs are calculated, classified and reported.
They define what is included in the cost. It is important to note that ICMS will not replace existing
measurement guidelines, such as Agreed Rules of Measurement (ARM4), The New Rules of
Measurement (NRM) or Civil Engineering Standard Method of Measurement (CESMM), or
bespoke client cost breakdown structures. Instead, they are a new way of presenting and
reporting infrastructure costs to clients, stakeholders and investors at all project (Mitchell, 2016).

The first edition of ICMS was introduced to the market in 2017 and have already been adopted
by several high-profile bodies seeking to benchmark project costs internationally. To date, this
includes large public sector project sponsors, global cost consultancies, constructors, and other
construction sector stakeholders.
As Life cycle costs have a strategic role in the financial management of construction projects
worldwide and allow critical decisions regards to long term costs. Thus, the coalition decided to
extend ICMS to cover life cycle costs and launch in September 2019 a second edition. Hence,
ICMS 2 covering the whole project life cycle, present a globally standardized way of cost reporting
for portfolios, programs and projects around the world (ICMSC, 2019).

Important Of ICMS

The ICMS are a high-level cost classification system that came to solve the gap of a standard
method to report costs in construction projects Worldwide. The role of ICMS is to reduce
uncertainty and provide clarity and worldwide consistency in classifying, defining, measuring,
recording, analyzing, presenting and comparing entire life cycle costs of construction projects at
regional, state, national or international level in order to reduce risks and improve the confidence
of investors, stakeholders, clients and governments (ICMSC, 2019).

Conclusion

Introducing international standards is the key to improve construction business, which is

increasingly interconnected and global; but in certain regions, adoption will be hard because
standard methods of measurement are not extensively used. ICMS came to solve this lack and
provide consistency and reliability to analyze the cost of construction through the lifecycle of
projects worldwide.
References

ICMSC, (2019). ICMS: Global Consistency in Presenting Construction and Other Life Cycle
Costs. [Online] Available at:

https://www.rics.org/globalassets/rics-website/media/upholding-professionalstandards/sector-
standards/construction/international-construction-measurementstandards-2nd-edition-rics.pdf
[Accessed 18 November 2023].

Mitchell, C., (2016). International Construction Measurement Standards (ICMS) Explained.

[Online] Available at: https://arrow.dit.ie/cgi/viewcontent.cgi?article=1049&context=beschrecart
[Accessed 18 November 2023].

RICS, (2017). ICMS Explained – A user guide for the International Construction Measurement
Standards. Online] Available at: https://www.rics.org/globalassets/ricswebsite/media/upholding-
professional-standards/sector-standards/construction/rics-icmsexplained-user-guide-rics.pdf
[Accessed 18 November 2023].