Client Care, Business Planning, Accounting, Inclusive, Sustainability, Diversity, Communicating and Negotiation, Measurement

Question 1

How do you make sure you provide good service to clients?

Answer 1

Understand objectives, clear terms of engagement, make it clear if you need to amend terms of engagement, be transparent, uphold Rules of Conduct, CPD, communication.

Question 2

How can you measure a clients satisfaction?

Answer 2

Client Relationship Management systems - writing to clients after, issuing a Net Promoter Score to measure satisfaction, check in after instruction

Question 3

What is a business plan?

Answer 3

An analysis of opportunities and risks and resources required to service clients

Question 4

How can business plans aid business growth?

Answer 4

Incorporating budgets, analysing cash flows and financial audits and controls are important to ensure the correct allocation of resources and expenditure

Question 5

What type of analysis can be helpful for business planning?

Answer 5

SWOT analysis

Question 6

What is your firms 5 year strategy?

Answer 6

new 5 year plan in 2022,
focus on growth,
expanding capabilities in new areas (geographically and sectors),
supported by annual plans to clarify years activities and prioritise investment and resources

Question 7

Why do you discuss WIP?

Answer 7

To help budget and inform cash flow

Question 8

Why do you discuss fees?

Answer 8

To provide team morale, and to understand other parts of the team’s priorities

Question 9

Why do you share insights into your field of practice?

Answer 9

Good to have regular market updates, good to understand what everyone does in the team to help with cross selling etc .

Question 10

What are the benefits of cross selling?

Answer 10

Helps company, provides good quality service to clients

Question 11

What do you need to bear in mind when referring business?

Answer 11

you have to make sure if you get a referral fee for referring the business to another company that you make it clear that is the case to the client.

Question 12

What is a balance sheet?

Answer 12

A statement of financial position that shows assets and liabilities on a given date.

Question 13

What might be included in balance sheets?

Answer 13

Assets = cash, property, debtors, investments held.

Liabilities = borrowings, overdrafts, loans, creditors, obligation to pay rent

Question 14

What is a profit and loss account?

Answer 14

A summary of the business’s income and expenditure, usually prepared annually

Question 15

What is usually contained in a set of public limited company accounts?

Answer 15

Chairman’s Statement (letter to shareholders setting out company condition, activities and personal perspective of future)
Independent Auditors Report (make sure accounts are correct and free from misstatement)
Profit and Loss Account
Balance Sheet
Corporate Governance Report (where the company meets compliance and areas where more work is needed)
Remuneration Report (what directors have been paid and their remuneration policy)

Question 16

What are management accounts?

Answer 16

They are prepared for internal use and are not audited

Question 17

Who are audited accounts prepared by?

Answer 17

Chartered or Certified accountants

Question 18

What is a cash flow statement?

Answer 18

shows receipts and expenditure including VAT

Question 19

What is a consolidated account?

Answer 19

individual subsidiary accounts for a company put together in one

Question 20

What is the LEASE accounting standard that all companies have to comply with when using IFRS?

Answer 20

IFRS16 - full cost of leases must be accounted for obligation to pay rents must be included as a liability but service charge is accounted for separately.

Question 21

What accounting standards must publicly listed companies comply with?

Answer 21

in the UK IFRS

Question 22

If you are not a publicly listed company what accounting standard must you comply with?

Answer 22

in the UK International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP)

Question 23

What is a publicly listed company?

Answer 23

A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public company can be listed on a stock exchange, which facilitates the trade of shares

Question 24

What is a private limited company?

Answer 24

A limited company is a type of business structure whereby a company is considered a legally distinct body. If you choose to run your business as a limited company, the business will: Be legally distinct from the people who run it. Keep business finances separate from the owner’s personal finances.

Question 25

What is a PLC?

Answer 25

public limited company, indicates that shares in the firm are publicly traded

Question 26

What is an LLP?

Answer 26

A limited partnership is when two or more partners go into business together, with the limited partners only liable up to the amount of their investment.

Question 27

What is an inclusive environment?

Answer 27

Designed to allow people with diverse needs and abilities to use it

Question 28

When thinking about designing an environment, what statutory elements do you need to comply with?

Answer 28

Planning Laws, Building regulations (part M), the equality act 2010, Health and Safety

Question 29

Why is it important to consider inclusion?

Answer 29

Comply with statute, comply with Rules of Conduct, prevents sustainability by preventing early obsolescence.

Question 30

What does the Equality Act 2010 require you do?

Answer 30

Make reasonable adjustments to help disabled people if they would be placed at a substantial disadvantage if the work was not done.

Question 31

What are some things you can do to provide an inclusive environment?

Answer 31

Wheelchair access, lighting for fire alarms for deaf people, consider colouring to ensure it can be read by colour blind people, ensure reception staff are trained with the 6 second rule for people with autism to give them time to respond, sign language, braille.

Question 32

Give me some more information on reasonable adjustments under the Equality Act 2010?

Answer 32

When faced with an obstacle for a disabled person the act requires:
removal or alteration of the feature
provide reasonable means of avoiding the obstacle
The test for reasonable is - how effective will it be, how practical is the change, how much does it cost and how disruptive is it?

Question 33

What are some of the main parts of ensuring your team works together effectively?

Answer 33

Listening, discussing, persuading, respect, helping. sharing, participating, communicating, reflecting

Question 34

What recommendations did you make to your line manager about promoting teamworking?

Answer 34

Monthly meetings where we rate work load (1-3) to help with resourcing and stress levels, coffee catch ups allocated between different people in the team to have an informal chat with to build relations, social events that don’t include drinking and are team building based.

Question 35

What is unconscious bias?

Answer 35

the associations and prejudice you have which are deeply ingrained and outside conscious control.

Question 36

How can you control your bias?

Answer 36

Use an Implicit Assumptions Test, network outside your comfort zone, speak to a range of people to change your perception, when hiring use blind CVs and a diverse panel.

Question 37

What have the RICS done to promote diversity and inclusion?

Answer 37

Signed a memorandum of understanding to create a more diverse and inclusive sector which is representative of the society it serves and looks to determine the reasoning for poor performance.

Question 38

What other changes might the RICS do to combat issues around diversity and inclusion?

Answer 38

The Bichard review outlined a number of things that the RICS could do, including using money generated from fines to give back to under represented communities. New RICS diversity Equity and Inclusion board with Louise Brooke-Smith as the chair.

Question 39

What RICS behaviour in the Rules of Conduct relate to sustainability?

Answer 39

Rule 3 - Good Quality and Diligent Service - “Encourage sustainable solutions”

Question 40

What part of the Red Book Global relates to consideration of sustainability in valuation?

Answer 40

VPGA 8 “consideration of sustainability, environmental and social governance matters”

Question 41

What act set targets for net zero? What are the targets?

Answer 41

The Climate Change Act 2008 amended in 2019 - Net Zero by 2050 and reducing emissions by 78% by 2030 compared to 1990 baseline.

Question 42

What is net zero?

Answer 42

Bringing total emissions down to 0, by reducing emissions and implementing methods of CO2 absorption

Question 43

What is the main RICS guidance on sustainability and ESG? What are some things it considers?

Answer 43

Sustainability and ESG in commercial property valuation and strategic advice - Professional Standard 2022 - consideration of benchmarking, certification, wellbeing amenity etc.

Question 44

What are some green lease clauses you are aware of?

Answer 44

LL/T not doing anything to adversely affect the EPC rating, contractual obligations to force L&T to share data to identify how the building can be better managed and where savings in energy can be targeted, reinstatement of tenants fit out.

Question 45

The Green Buildings Council have put together a framework, what does it do?

Answer 45

Ranks actions needed to achieve a net zero building -
1. Establish net zero carbon scope (scope 1 is directly controlled but scope 2 and 3 are indirectly controlled)
2. reduce construction impacts
3. reduce operational energy usage
4. renewable energy supply
5. offset remainder of carbon

Question 46

Under what act is the Carbon Budget set, how often is it set and what affect does this have on buildings?

Answer 46

Climate Change Act 2008 sets carbon budget every 5 years, meaning that energy performance requirements in building regs get tighter as a result, there are minimum standards when when buildings leased and sold, mandatory inspections for boilers and air conditioning.

Question 47

What is ESOS? Can you tell me a bit about it?

Answer 47

Energy Saving Opportunity Scheme
Mandatory for all companies over 250 people or more than 250 turnover.
You must measure total energy consumption across buildings, transport and industrial activities
Conduct energy audits to identify cost effective energy efficiency recommendations
Report compliance to Environment Agency

Question 48

What is a Display Energy Certificate? Can you tell me a bit about it?

Answer 48

Required for public buildings over 250 sqm and they must display actual energy used and CO2 emissions - there is a consultation on whether all commercial properties have to do this.

Question 49

What is NABERS? Can you tell me a bit about it?

Answer 49

National Australian Built Environment Rating System - star system (* = bad ***** = market leading) looks at energy, water , waste indoor environment

Question 50

What is BREEAM? Can you tell me a bit about it?

Answer 50

Building Research Establishment Environmental Assessment Method - looks at environmental ratings across energy waste water transport waste health and wellbeing. Pass, Good, very Good, Excellent, Outstanding.

Question 51

What are the current EPC Rules, what laws are there relating to it?

Answer 51

Under minimum energy efficiency standards you cannot let, or continue to let a commercial building unless it is an E or above. There are some exemptions, such as if the building is listed or it is due to undergo refurbishment. Includes all exisiting leases from April 2023. Valid for 10 years. Consultation to be a C by 2027 or a B by 2030. You only need an EPC when you are selling or renting or have built a new building, if it expires you do not need a new one until it is relet/sold.

Question 52

Tell me about the changes to EPC methodology?

Answer 52

The methodology to calculate an EPC changed in June 2022 and it now considers electricity is “greener” (record high of around 53% of all electricity within the grid came from renewable sources). therefore, gas heater buildings being reassessed after 2022 might find that there is a deterioration in their certificate.

Question 53

What are the fines if you do not comply with EPC legislation?

Answer 53

For not displaying EPC on marketing material = 12.5% of RV (min £500 and max £5,000)

Not complying with MEES =
Less than 3 months non-compliance - up to £5,000 or 10% of RV (max of £50,000)
More than 3 months - up to £10,000 or 20% of RV (max £150,000).

Question 54

What are some of the main principles of getting to yes?

Answer 54

1. a good agreement is one which is wise and efficient, and which improves the parties’ relationship
2. separate the people from the problem - try to think of it as partners working together to accomplish a task rather than adversaries
3. focus on interests rather than positions - prepare for negotiations and consider what you and your client actually want and what you would be open minded to
4. Biggest take away from book was that it is so important how to approach and treat the other side and that it is good to be firm, but that the view of being aggressive and uncompromising will hardly ever pay off.

Question 55

What is the principle of equivalence?

Answer 55

a claimant should be placed in no better or worse position (in financial terms) after the acquisition than they were prior to the acquisition

Question 56

What are the three documents relating to measurement of properties?

Answer 56

Code of Measuring Practise - 2015
RICS Property Measurement - 2018 (introduced IPMS to resi and office)
IPMS All Buildings - not adopted by RICS yet

Question 57

Ina report conducted by Knight Frank looking at the way in which different countries measured buildings, what was the variance in floor spaces between differing measuring standards?

Answer 57

24% (around 20%).

Question 58

Under RICS Property Measurement 2018 what requirements must be met when measuring property?

Answer 58

1. Provide measurement Date
2. State methodology
3. Provide reference to and scale of any plans used
4. State conversion factor from metric to imperial (10.7639)
5. Must document a reason for departure from IPMS

Question 59

What is the difference between IPMS and NIA?

Answer 59

1. IMPS “internal dominant face”
2. Columns included in IPMS
3. Do not exclude areas under 1.5m but may state separately under IPMS
4. Multiple occupation you measure to middle of wall in IPMS
5. Covered galleries and balconies used exclusively by the tenant are included in IPMS but stated separately.

Question 60

When do you include a mezzanine in GIA?

Answer 60

When it has permanent access.

Question 61

How do you measure in retail? Tell me a bit about other methods of analysing retail units.

Answer 61

to NIA but you can apply zoning as a way of comparing with other zoned retail units which places a greater weight on certain parts of the building, assuming the front is the most valuable. it is usually 6.1m depths and then halves back, but can be 9.14 meters in central London. Also apply A over figures for other space such as basements or first/second floors.

Question 62

what is EBITDA and what does it show?

Answer 62

Earnings before interest, tax, depreciation and amortization - shows profitability

Question 63

When was the latest RICS Business Plan?

Answer 63

2021-2022

Question 64

What is the outcome of a recent disciplinary panel hearing?

Answer 64

Phillip Greenslade and Phillip Greenslade and Associates - dispelled due to not complying with obligations and not registering as a registered valuer and undertaking work which PI insurance did not cover.