International Cost Management Standard - Best Practice for Cost Management in Ireland & Globally
The International Cost Management Standards (ICMS 3) is a high-level global standard that enables consistent comparison of construction costs and carbon impacts.
SCSI Mandate for ICMS Use
SCSI members should use ICMS with public and private clients unless advised by your client to apply a different standard. The SCSI as a member of the ICMS Coalition and Trustee has committed to supporting members as the they adopt this global best practice, and you’ll find a range of supporting documentation and for SCSI members links to relevant CPDs.
What is ICMS?
ICMS is a principles-based international standard that sets out how to classify, define, measure, record, analyse, present and compare construction project life cycle costs and carbon emissions in a structured and logical format. Although life cycle costs include only construction, renewal, operation, maintenance and end of life costs, ICMS also makes provision for including acquisition costs, which may significantly impact a project’s budget. The SCSI applies the ICMS to its various research reports, which assists government to cross compare between international figures – see for example, Building Homes.
Transitioning from NSBE to ICMS
While the National Standard Building Elements (NSBE) has provided a mechanism for the systematic control of building capital costs only, the ICMS considers and reports on all of the costs associated with acquiring the site, constructing the project, renewing or replacing elements during the life of the project, operating and maintenance costs as well as end of life costs such as demolition. Members can make transition from NSBE to ICMS using the SCSI guide to support to members in shifting by mapping familiar NSBE elements to ICMS Cost Categories and Cost Groups. The Under the ICMS, construction project costs are first categorized under the following categories:
- Acquisition Costs (AC) [Part of Non-Construction Costs]
- Construction Costs (CC)
- Renewal Costs (RC)
- Operation Costs (OC)
- Maintenance Costs (MC)
- End of Life Costs (EC)
The Problem ICMS Solves
The global construction industry lacks a unified approach to classifying and reporting costs. Differences in methodologies create inconsistencies, making it difficult to benchmark projects, attract investment, and make informed financial decisions.
ICMS solves this by providing a standardised framework that facilitates:
- Transparent cost benchmarking
- Identification of cost differences across projects
- Applicability to all construction projects, not just buildings
- Improved decision-making for design and investment
- Confidence in cost data for financing and procurement
- Carbon reporting
As a member of the ICMS Coalition, the SCSI supports the adoption of this international standard to enhance professionalism and credibility in construction cost reporting. By integrating ICMS into your work, you will align with globally recognised best practices, strengthen your market position, and improve collaboration with international stakeholders/clients.
Will ICMS Increase Costs?
While adopting ICMS may involve some initial training and process adjustments, the long-term benefits far outweigh these costs, and the SCSI is here to help.
ICMS is mandated for a growing number of public contracts and international private clients. The Agreed Rules of Measurement 5 has been updated to this standard and can also be used for private and public contracts. The increased adoption of digital construction aligned with ICMS in Ireland will further increase the requirement for firms to be ICMS-focused.
The opportunity to increase your client market will offset these training costs.
Next Steps
To remain at the forefront of best practice in cost management, we encourage all members to:
- Download ICMS 3
- Read the Explainer Guide
- See how to Map from the National Standards Building Elements (NSBE) to ICMS
- Watch the ICMS Short Course (members can watch here and add to their CPD log or non-members below)
By adopting ICMS, you contribute to a more transparent, consistent, and internationally aligned construction industry where we are demonstrating our value as leaders to our clients. Let’s lead the way together.
ICMS Short Course Recording on ICMS and associated documents
ICMS: Global Consistency in Presenting Construction Life Cycle Costs and Carbon Emissions, 3rd edition
By providing a common reporting framework for life cycle costs and carbon emissions, ICMS allows their interrelationship to be explored, and provides the opportunity to make decisions about the design, construction, operation and maintenance of the built environment to improve environmental sustainability
ICMS 3 Explained User Guide
This guide should be read with the SCSI‘s International Property Measurement Standards user guide and the SCSI mapping guide between ICMS3 and the National Standard Building Elements.
Guide to Mapping National Standards Building Elements (NSBE) to ICMS Information Paper
Guide to Mapping National Standard Building Elements to International Construction Measurement Standard ‘International Cost Management Standard
ICMS Whole life carbon assessment for the built environment
RICS Whole life carbon global best practice providing guidance in relation to the entire life cycle of a built asset, from its construction through to its end of life. A whole life carbon assessment (WLCA) is the calculation and reporting of the quantity of carbon impacts expected throughout all life cycle stages of a project, but also includes an assessment of the potential benefits and loads occurring beyond the system boundary.
About ICMS
The International Cost Management Standard Coalition (ICMSC) is a group of 49 professional and not-for-profit organisations from around the world, working together to develop and implement international standards for benchmarking, measuring and reporting construction project costs. Since the publication of the first edition in July 2017, the International Cost Management Standard (ICMS) has provided a single methodology for reporting, grouping and classifying construction project costs. In response to industry feedback following the publication of the first edition of ICMS, the ICMS Coalition updated the standard to incorporate life cycle costs. ICMS began with the first two versions of the standard covering cost for construction and the whole life cycle of infrastructure assets: With the built environment responsible for around 40% of the global carbon emissions, it is crucial that leaders have clear comparable data to achieve carbon and cost targets. The ICMS Coalition of 49 globally-prominent organisations has developed ICMS 3 – a world first for cost and carbon management in infrastructure.
ICMS 3 will contribute positively to efforts to decarbonise the construction sector in the most cost-effective way. Through ICMS 3, professionals will for the first time be empowered to deliver a globally consistent method for carbon life cycle reporting across construction projects, from buildings and bridges to ports and offshore structures.
International Property Measurement Standards (IPMS)
About IPMS
The International Property Measurement Standards (IPMS) are developed by a group of more than 80 professional and not-for-profit organisations, working together to implement international standards for measuring property. Drafted by Standards Setting Committee (SSC), the IPMS establishes a consistent methodology for measuring buildings around the world and help users and related organisations have confidence in what to expect when they instruct a professional to measure their buildings.
All Buildings supersedes all previously published IPMSC standards for individual asset classes by utilising the concepts and objectives contained in those specific versions of IPMS into one harmonised standard. IPMS All Buildings is applicable to all types of Buildings independent of their use or their occupation. IPMS are sufficiently flexible to apply to different purposes such as:
- Analysis and Benchmarking
- Property Financing
- Construction Cost Rates and Ratios
- Property Management
- Conversion between Measurement Standards
- Research
- Cost Allocation
- Summary Costing
- Insurance
- Sustainability & Energy Efficiency
- Planning and Architecture
- Valuation/Transactions (incl: leasing and sales)
- Property Development
IPMS: All Buildings
IPMS All Buildings supersedes all previously published IPMSC standards for individual asset classes by utilising the concepts and objectives contained in those specific versions of IPMS into one harmonised standard. IPMS All Buildings is applicable to all types of Buildings independent of their use or their occupation.
