RICS issues updated standard on cost reporting
RICS has published a new international cost reporting standard for the construction sector, which it says will help bring greater confidence to an industry that is critical to creating resilient and successful communities.
The second edition of the International Construction Measurement Standards (ICMS 2) was developed by a 50 strong global coalition of professional bodies, including RICS. Its purpose is to improve financial management by standardising cost recording, improving cost prediction and control data, and aiding forensic analysis of construction costs.
ICMS was initially published in July 2017. Following strong global adoption of the standards, the coalition decided to extend ICMS to cover life cycle costs. Hence, ICMS 2, covering the whole project life cycle, presents a globally standardised way of cost reporting for portfolios, programs and projects around the world.
"This new standard is a game changer for the global construction industry, representing the first time there will be an internationally standardised way to report the full life cycle cost for portfolios, programmes, and projects around the world," stated RICS Professional Standards Director Ken Creighton.
"In simple terms, this means that projects can be easily and quickly be compared across jurisdictions, giving decision-makers better tools to analyse the impact of their investment in construction, and now across the full life-cycle of the built asset."
With the global construction sector expected to grow in output by 85% to $15.5 trillion USD by 2030, according to RICS savings like this will make a meaningful difference given that there is already more investment needed than the world can afford.
More information on ICMS 2 is available from RICS.