Confidence through
Professional
Standards
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ICMS Explained &
What it gives to the
industry?
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Initial Meeting on International Construction Measurement Standard (ICMS)
16 – 17 June 2015, Washington DC, US
Chair of FIG Commission 10 See Lian Ong signs ICMS Coalition Declaration
See Lian On, Chair of FIG Commission 10, is FIG nominee for the Standard Setting
Committee of ICMS. ICMS focuses on the lack of global standards in construction
measurement and reporting.
The meeting also included discussion on the administration of ICMS and protocols
for moving forward with the effort, such as the governance model, standard-setting
process, implementation, and communications
Collecting, collating and analysing data is a key deliverable of all construction
projects. Consistent practice in presenting construction costs globally will bring
significant benefits to construction cost management. Globalisation of the
construction business has increased the need to make meaningful comparative
analysis between countries.
Till date, organisations and firms have been able to collect, collate and analyse
their own data but have not been able to efficiently compare the data because no
common framework to do so existed.
ICMS is a cost classification system that provides a unified framework to
compare data across organisations, projects and markets. It gives a global
consistency in classifying, defining, measuring, analysing and presenting entire
construction costs at a project, regional, state, national or international level.
ICMS was developed by the ICMS Coalition and is the product of a collective
effort by a group of international professional bodies bringing together
numerous organisations from around the world to create shared international
standards for presenting entire construction costs. This globally-recognized
standard is set to revolutionize how construction projects are managed and
reported.
RICS quantity surveyors and cost consultants to deliver cost estimates and
financial reports in line with ICMS. They will benefit from using this globally-
recognised cost management standard in their day-to-day work and passing on
this benefit to their clients by offering better cost benchmarking and
comparisons between projects.
This CPD seminar will include the overview together with reasoning and theory
behind ICMS, whilst showing how it can be practically applied to a live project
The standards used to calculate the cost of construction projects differ markedly
throughout the world. In simple terms the ‘line items’ which make up the project
cost total differ depending on where the project is being carried out. This makes
it difficult to understand and compare project costs between markets. It also
compromises our ability to interpret the social, economic and environmental
‘footprint’ of a construction project on a consistent basis.
Formed in 2015 the ICMS Coalition totals more than 30 professional and
standards bodies from around the world. It is developing and implementing the
first international standard for measuring construction costs. It will enhance
transparency and help to de-risk investment in construction projects.
A professional body made up of some of the leading organisations and experts
in the construction industry have come together and formed the International
Construction Measurement Standards (ICMS) to bring about transparency and
best practice world-wide.
Institutions including the Royal Institution of Chartered Surveyors (RICS), the
Chartered Institution of Civil Engineering Surveyors (ICES) and the Institute of
Quantity Surveyors and International Cost Engineering Council are just a few of
the 40+ organisations that are represented within the ICMS.
ICMS is a “new, high level international standard which aims to provide greater
global consistency in classifying, defining, measuring, analysing and presenting
construction costs at a project, regional, state, national or international level.”
While not a detailed method of measuring construction works, ICMS is a “high
level” benchmark and reporting framework for international cost classification,
reporting and comparison.
So, what is the ICMS trying to solve?
The construction industry, despite rapid globalisation and investment funds
“flowing” across borders and money being poured into constructed assets, is
one that currently lacks a current language and framework that will classify
construction costs.
Estimating construction costs causes major problems for a number of people,
including consultant, surveyors, economists and engineers.
“For the first time at a global collaborative level, ICMS will introduce a standard
structure and format that will lead to greater consistency in classifying and
reporting of capital costs for construction projects.”
International Construction Measurement Standards (ICMS)
The International Construction Measurement Standards (ICMS) is an
international standard which aims to provide greater global consistency in
construction costing.
It is not a detailed method of measuring construction works, but ‘a high level
benchmarking and reporting framework for international cost classification,
reporting and comparison.’
It was established by the International Construction Measurement Standards
Coalition (ICMSC), which is a group of more than 40 professional and not-for-
profit organisations. The Coalition was launched at the International Monetary
Fund (IMF) in Washington D.C. in 2015.
The Coalition points to the fact that the reporting and costing methods used in
the construction industry have significant variance according to the market. This
means that comparing projects around the world difficult, investment risk is
increased, and transparency is impeded.
They argue that this causes ‘huge problems for cost consultants, quantity
surveyors, construction economists and cost engineers around the world’.
Creating a common standard, they suggest, will improve transparency, investor
confidence and public trust.
Other benefits they identify include:
Improved investment and funding decisions.
Improved cost prediction and management.
More consistent accounting.
Consistent and transparent benchmarking.
Improved ability to Identify the causes of differences in costs between projects.
The Coalition anticipates that ICMS will be implemented globally through
proactive engagement by the Coalition members with relevant stakeholders. It
will be used alongside existing standards initially, with the expectation that it will
become established over time in construction markets and then used as the
Says TC Chetty, Royal Institution of Chartered Surveyors (RICS) country
manager for South Africa: “Financing desperately needed buildings and
infrastructure including energy systems, railways, bridges, schools and
hospitals can often be risky because infrastructure projects across the globe
categorise and forecast the construction costs differently.
“Until now, it has been almost impossible for governments and investors to
compare construction costs like with like. It is hard for them to know if public
infrastructure projects are good value and this can waste taxpayer money.
“When estimating construction costs, this causes huge problems for cost
consultants, quantity surveyors, construction economists and cost engineers
around the world as research has shown that different approaches to presenting
the costs of construction can vary significantly due to inconsistent methodology
and standards. This is why an international standard such as ICMS is required to
ensure global consistency.”
Global collaboration
Tackling these problems head on, a group of influential sector players got
together and formed the International Construction Measurement Standards
(ICMS) Coalition during a meeting at the International Monetary Fund in June
2015.
For the first time at a global collaborative level, ICMS introduces a standard
structure and format that will lead to greater consistency in classifying and
reporting of capital costs for construction projects.
Construction is a large contributor to national economies and to keep cities
functioning, governments worldwide need to spend vast sums of public money
on essential infrastructure. Inconsistent information causes poor cost prediction
which impedes investment and can cause 9 out of 10 mega projects to run over
budget.* Overall, close to $78tn needs to be spent globally between 2014 and
2025** on infrastructure and the ICMS Coalition saw the need to de-risk these
projects for public and private sector investors. The World Economic Forum has
FIG Council has decided that the President, Chryssy Potsiou is the nominee for
FIG as Trustee in the ICMS Coalition and that Mr See Lian Ong, Chair of FIG
Commission 10 will be FIG nominee for the Standard Setting Committee of ICMS.
Members of ICMS
Group of the participatnts at the IMF HQ
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articles/international-construction-
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