Client Care

Question 1

What is included within a terms of engagement?

Answer 1

• Name of client
• Property address
• Scope of service and any limitations
• Fee, and fees for any additional work outside of scope
• Approximate timelines
• Payment terms
• Details of complaints handling procedure

Question 2

What else do you issue along with terms of engagement?

Answer 2

Terms and conditions, includes 20 headings relating to:

• Appointment
• Standard of care
• Statutory requirements
• Prohibited materials
• Fee
• Additional services
• Payment terms
• Default, interest and suspension
• Limitations of liability
• Insurance
• Copyright
• Suspension of services
• Termination of engagement
• Payment upon suspension or termination
• Assignment and Sub-Contracting
• Disputes
• General
• Notices
• Governing Law & Jurisdiction

Question 3

A client asks you to reduce a fee, what would you do?

Answer 3

If the client has budget constraints and requests a fee reduction I would not reduce the fee unless the scope of service also reduces in line with this. I would work with client to accommodate their budget and provide services in line with it.

Question 4

How would you calculate a fee?

Answer 4

• Discuss with client to correctly identify level / scope of service required.
• Consider how many hours the work will take and any expenses to be reasonably incurred e.g. travel
• Allow for profits and overheads within the fee

Question 5

Why is client care important?

Answer 5

• Promotes trust in the industry and company
• Maintains client relationships to help build business
• Maintain a reputation in the industry

Question 6

What is a duty of care?

Answer 6

Moral and legal obligation to act in your client’s best interest with reasonable skill and care. If you need to do something out of your remit of expertise, you must inform the client that you are unable to perform a certain task and that additional consultants may be required if another member of staff cannot assist.

Question 7

Are you aware of any case law relating to duty of care?

Answer 7

Yes, Donoghue vs. Stevenson 1932. It established the general principle of duty of care in law.

Question 8

Are you aware of any guidance relating to complaints handling?

Answer 8

Yes, the RICS Complaints Handling Professional Standard.

Question 9

What are the types of conflicts on interest ?

Answer 9

• A ‘party conflict’ – a situation in which the duty to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
• An ‘own interest conflict’ – a situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.
• A ‘confidential information conflict’ – a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.