A new international cost reporting standard for the construction sector will help bring greater confidence to an industry that is critical to creating resilient and successful communities, according to RICS Professional Standards Director Ken Creighton.
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.
"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."
"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."
The impact of this shouldn't be underestimated. ICMS meant one major consultancy company was able to save its client $100 million on a $500 million programme over five years.
With the global construction sector expected to grow in output by 85% to $15.5 trillion USD by 2030, savings like this will make a meaningful difference given that there is already more investment needed than the world can afford.
"Ultimately though this goes beyond the financial implications – helping the construction sector deliver is the only way the world can build more homes and improve the infrastructure we all rely on to lead positive, fulfilling lives.
"RICS purpose is to deliver confidence in the built and natural environment. Developing and enforcing leading international standards like this is one of the most impactful ways to do that, and we've been proud to be involved with our coalition partners in creating ICMS 2," Ken outlines.
ICMS 2 presents a globally standardised way of cost reporting for portfolios, programs and projects around the world.
Anil Sawhney explains how by adopting ICMS, governments can better plan and monitor projects and ensure value for money is being delivered.
Director of Professional Standards
Ken Creighton directs RICS’ contribution to the development of international standards. He also oversees our education and qualification standards and the technical standards developed in RICS’ 17 professional groups.