June 2014 Newsletter - Measuring Standards

Welcome to the June 2014 edition of the CHPK Newsletter.

The property and construction world is fast paced and we are used to change, but this year there seems to be more change than usual. The Building Regulations are changing all the time (the new Part L was launched in April this year - newsletter on this to be issued shortly), the proposed changes to the Construction (Design and Management) Regulations 2007 are in consultation until later this month and legal cases keep flowing which alter previously long held views.

It is a less headline grabbing but no less important proposal that interests us in this edition of our Newsletter which we hope you find interesting.

We are also pleased to announce that Matt Keates and Chris Howe are now Chartered Construction Managers with the CIOB.

If you have any questions on the topics raised please contact us.

You can follow CHPK on Twitter and Facebook for regular industry news and updates.

A Global Standard for Measuring Property Fast Approaches

The new International Property Measurement Standards (IPMS) are considered to be one of the most significant developments in the property profession in recent history.

In a market where Global International Property Investment is increasing, as well as an expansion by global corporate occupiers it is vital that the space within a building is measured correctly across global markets so that the development and Investment potential is properly understood.

There is currently a lack of consistency in the measurement of property across the world and it is anticipated that the introduction of the IPMS will reduce the risk and uncertainty, increase confidence and also increase the level of transparency with International property transactions.

It has been estimated that measurement variations between global markets can vary by as much as 24%. The RICS Code of Measuring Practice (International), The API Measurement Code (Australia), The Singapore Measuring Practice, The HKIS (Hong Kong) Code of Measuring Practice and The BOMA (Building Owners and Managers Association) all give quite considerable different outcomes when it comes to the calculations of internal areas. Some standards include columns and interior walls, for example, whereas others include lift shafts and common areas.

Further examples of how measurement methodology can vary are for example, In the Middle East, floors not present but supported by existing foundations can be included in areas. In India 'off site' areas such as car parking and common areas can be included and in some countries only air conditioned space is included as usable space.

In May 2013, The RICS convened the inaugural meeting of The International Property Measurement Standards Coalition (IPMSC) at The World Bank Headquarters in Washington. A Key milestone for The Coalition (which now comprises 31 member organisations, who have all signed a declaration to help develop and then implement the IPMS within their territories) was the recent launch in January of this year of the public consultation on the draft IPMS for Offices.

This Public Consultation closed on the 4th April 2014, when the feedback will be considered and incorporated into the standard by The Standard Setting Committee (SSC), prior to the launch of The Final Draft for Offices in June 2014.

IPMS for offices are being dealt with first due to their importance on the International Stage, with standards for residential, retail, industrial and other commercial property to follow.

The New Standards will provide a 'common language' 'for measuring property across international markets which will benefit all property practitioners including Investors, Lenders, Agents, Valuers and Occupiers.