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News & Press: 2019 News items

Impact Ahead!

Thursday, 21 November 2019  
Posted by: Bert vd Heever
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The latest (October/November 2019) edition of the Property Journal form RICS carries an article by Andrew Green which states that the second edition of ICMS will have a major impact on life-cycle cost analysis, project reporting and facilities management.

 ICMS 2: intended uses

  • Construction and other life-cycle costs to be consistently and transparently benchmarked; that is, like-for-like comparative benchmarking at various stages of project life.
  • The causes of differences in life-cycle costs between projects to be identified, informing options appraisals.
  • Properly informed decisions on the design and location of construction projects to be made, ensuring the best value for money.
  • Data to be used with confidence for construction project financing and investment, decision-making and related purposes, including forecasting annualised budgets for the other life-cycle costs in scope.
 



He says: "The World Bank and governments around the globe have incorporated both capital and life-cycle costs into their procurement decisions, so construction cost management and procurement is increasingly demanding a whole-life, value-for-money approach. However, there is currently no international standard for classifying and benchmarking costs across all types of project or throughout the life cycle of buildings or infrastructure – leading to discrepancies in the accounting process or in comparing and predicting project finances. Life-cycle costs is vital to the financial management of construction projects and facilities management, representing a crucial consideration in whole-life cost decisions when income and non-construction costs, such as acquisition and financing, are included."

He continues: "Life-cycle costs enable critical decisions to be made about the importance of capital and longer-term costs that could ultimately affect an asset’s performance, longevity and how resilient it is. Other life-cycle costs could be part of facilities-related costs as well, such as environmental sustainability and occupancy costs such as subtenancy rent. Recently published, the second edition of the International Construction Measurement Standards (ICMS 2) now includes other life-cycle costs such as asset renewals, operations and maintenance, and end-of-life costs. It has been developed through a process of extensive collaboration between industry representatives from 46 countries."

Please click here to download the journal and continue reading the article (Click on Bookmark 25)

 Mr Karl Trusler of EduTech says that his Centre will be investigating the alignment of present ASAQS documentation with the ICMS during the course of next year.