7. VPS 1 - Terms of Engagement (Scope of Work)

Question 1

What is included within VPS 1 - ToE (Scope of work)

Answer 1

General principles of an instruction

Question 2

Terms of engagement must address 19 matters (Scope of work) - Name some

Answer 2

1) Identification and status of responsible valuer
2) Identification of client
3) Identification of other intender users
4) The asset(s) to be valued
5) Currency (£££)
6) Purpose of valuation
7) Basis of value
8) Valuation date
9) Nature and extent of the valuer’s work including investigations and any limitations
10) Nature and sources of information to be relied upon
11) All assumptions and special assumptions to be made
12) Format of the report
13) Restrictions for use, distribution and publication
14) Confirmation that the valuation will be undertaken in accordance with Red Book Global Standards
15) Basis on which the fee will be calculated
16) Complaints handling procedure
17) Statement that the valuation may be subject to monitoring and compliance by the RICS
18) Limitation on liability agreed
19) Consideration of any significant ESG factors (new in the 2024 edition)