Client Care level 1

Question 1

If a client was prepared to pay you in advance for services you were providing, how would you ensure this was dealt with?

Answer 1

• Set up a separate client account that is properly named and identifiable.
• Provide client with a statement of account
• Inform and agree drawdowns
• Prior to drawing monies send a statement of how much is to be withdrawn and what services and associated fees are made up of. Send updated statements of account.

Question 2

On what ground would you ask a client for additional fees?

Answer 2

Programme being extended

Scope of services being delivered has changed

The location and travel requirements of the project have changed

Increased attendance at meetings has been requested

The frequency of the project deliverables have been adjusted

The value and scope of the project has changed

Question 3

Asking client for additional fees, how would you approach this?

Answer 3

Arrange meeting with client
Explain the reasoning behind the additional fee
Discuss benefits and additional services will provide to the client
Be sympathetic, understanding and prepared to offer a compromise
Make sure the information being presented is clearly set out and understood by the client

Question 4

You are bidding for a project and the client advises that if you reduce your fee bid by £3,000 you will be first in place and win the tender, how would you advise?

Answer 4

Unfair competition
Not treating others with respect
Not acting with integrity
Unstainable to undertake business in this manner
Avoid sutch actions as devaluing the profession
You would need to reduce scope to achieve the same margin, would this provide high standard of service?
This could be interpreted as a bribe

Question 5

What measures should be taken to avoid PI claims?

Answer 5

Keep full and detailed record drawings of meetings, conversations ect.
Record recommendations and advice given
Use proper letters of engagement, scope of services and terms of engagement
Don’t advise on a specialism outside your field of experience
Use RICS guidelines
Avoid poor management skills

Question 6

What processes need to be in place for handling clients money?

Answer 6

Rule 8 for firms Client Money Handling
Client must always have access to funds
Client money must be kept separate and clearly identifiable - included ‘client’ in account name
Interest on the account must be agreed with the client
Must not be overdrawn
Controls in place to keep funds secure
Competent and knowledgeable staff to process clients money with cover provided for long term absence.

Question 7

What is the ‘clients’ money protection scheme?

Answer 7

Run by the RICS
Provides for any member of the public to be reimbursed their direct loss of funds
This is provided through RICS insurance policy
RICS CMP Scheme is split into two parts
General client money protection - covering money held by firms undertaking any surveying activities
Residential agency activity in England protection - covering areas under the client money protection schemes for property agents

Question 8

What components must a complaints handling procedure include?

Answer 8

The RICS provides a model form which has two stages as a minimum
Stage 1 - acknowledge the complaint as quickly as possible but no more than 28 days
The complaint should be handed by a senior person or a designated complaints handler
The first stage must be free
Stage 2 - if the firm is unable to resolve the complaint internally then it will be taken to an independent redress mechanism that is approved by the RICS
It must be clear, quick, transparent and impartial
The complained may be expected to contribute towards costs incurred during the second stage
All complaints their programmes and outcomes must be recorded
Note the need to advise PI insurers of a complaint immediately

Question 9

Why is client care so important?

Answer 9

Surveying practices that provide good customer care are likely to keep clients and develop new business
A failure to provide good client care will result in customer dissatisfaction, complaints and in the worst case scenario PII claims for professional negligence.
Formal complaints and insurance claims can be costly and result in stressful working environments which results in reduced staff performance
Complaints and claims can and should be avoided with diligence, manageable workloads and resource planning and well developed procedures for obtaining and acting on customer feedback

Question 10

Give me an example of when you have provided excellent customer care
Think about client feedback

Answer 10

Victoria House

Question 11

What is client care?

Answer 11

Looking after the clients best interests and providing an appropriate service that satisfies the client needs

Question 12

What is a complaint and why is this a serious topic for surveyors?

Answer 12

A complaint is a statement that a situation is unsatisfactory or unacceptable to the client.
These can either be made formally either in writing of verbally
It is important to take complaints seriously as the RICS require these to be handled inline with their complaints handling procedure.
Practices have an obligation to notify PII insurers
In the worst case they can result in loss of clients, reputational damage and PII Claims against firms.

Question 13

When should you decline an instruction of new work from a client?

Answer 13

If there is a conflict of interest.
Not in clients interest - you cant resource the job
Illegal

Question 14

What makes up a fee proposal/Fee Bid?

Answer 14

Executive summary - scope / solution
Clients needs / drivers
Project issues
Benefits for clients / experience
Conditions of engagement / T&C
Methodology / organisation / CV of Project team

Question 15

How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?

Answer 15

Check their understanding of reduced impartiality
Seek letter of instruction to continue
Agree working procedures to manage the conflict
Keep them updated of any risks

Question 16

What is a client brief?

Answer 16

The purpose of the project brief is to provide a firm foundation for the initiation of the project
A formal statement of the objectives and functional and operational requirements of the project in sufficient detail to enable the integrated project team to execute the specification and detailed design of the work and is therefore an essential reference for the team

Question 17

How would you limit the risk of working with a client who may be financially unstable.

Answer 17

Screening process:
Credit Check
Company Search (Company House)
Internet search (Client website for additional information)

Question 18

If your client asked you to lower your fees due to their limited funding what would you do?

Answer 18

The client would have to pay the required price for the level of service required or reduce the scope of works involved

Question 19

What is meant by duty of care?

Answer 19

A duty of care is to ensure that another party does not suffer harm or loss that can arise as a result of a breach of contractual obligations or tort of negligence
General forms of appointment will include contractual duties to perform services with reasonable skill and care that is to a standard expected of a reasonably competent person.
However if the appointment is made on the basis of specialist capabilities then the duty of care expected would be to the standard of a competent specialist rather than a general practitioner operating in that field
In the absence of contractual obligations tort of negligence can be applied which relies on the courts applying relevant aspects of common law to determine the duty of care that is owed.

Question 20

What is meant by KPI’s?

Answer 20

Key performance indicator
Measurable value that demonstrated how effectively a company is achieving key business objectives

Question 21

What are some examples of KPIs?

Answer 21

Number of defects / snags within a project
Overspend or underspend against the initial project budget
Timescales for delivery of the project against the targeted programme
Profitability of the project
Feedback from the end users
H & S incidents

Question 22

Why is it important to maintain existing client relationships?

Answer 22

Improves chances of securing repeat business
It provides firms with a competitive edge
It is less expensive to retain existing clients that to acquire new ones
It improves the chances of being able to establish networks and connections with other clients through testimonials and recommendations.

Question 23

What are the key components of a consultant fee proposal / scope of services?

Answer 23

Scope of services
Terms of engagement
Basics of pricing
Fees and drawn down schedule
Project particulars
Timescales / programme of deliverables
Insurances
Excluded items
Assumptions
Payment terms
Complaints procedure
Project team

Question 24

How would you calculate your professional fees for a new commission?

Answer 24

Understand client requirements including project scope of services, key project particulars, project budget and timescales
Confirm the number of meetings, inspections, reporting requirements and frequencies
Establish the seniority of resource required and the extent of the team required to deliver the project.
Assess duration of project
Apply daily / hourly rates against the activities required of each team member
Review proposed fees against project budget as a percentage to serve as a final sense check
Issue fees to client in a formal written agreement

Question 25

The partner says you have spent all the fees on the job and the final accounts are still to be agreed and some areas are still to be re-measured according to the contractor, what should you do?

Answer 25

Do not lower my level of services
Investigate why all the fees have been spent
If it is an error in our fee calculation i put in place measures to ensure it does not happen again
If it is because we have provided additional services i give all my details to my director to prepare to claim for additional fees
I ensure that i keep track of fee spending and of all works not inc in our scope of services

Question 26

What issues would you anticipate with one consultancy providing all of the professional services for the client?

Answer 26

Errors and underperformance by one discipline may not be managed effectively as it could harm the reputation of the business
May be a lack of innovation, creativity and fresh ideas if the team are working to the same procedures
Colleagues within the same firm may not feel well places to challenge their peers due to existing relationships

Question 27

Once you and your client agree verbally with the services to be provided what would you do next?

Answer 27

Need to formalise the agreement by issuing a formal fee letter, scope of services and terms of engagement
The formal appointment would need to be signed off by the client
A conflict of interest check would be undertaken
Appropriate insurances would need to be in place

Question 28

What is a consultant appointment document?

Answer 28

A form of appointment is the mean by which a consultant is appointed to the project
It is prudent to set the terms of the appointment in writing as soon as is practically possible.

Question 29

Assuming you were successful in getting charted, how would you deal with a situation such as a friend who asks you to provide BS advice?

Answer 29

Could not offer advice without my own PI insurance
If I did have my own PI insurance, I would insure the info given was subject to thorough checking process given to all information prior to issue regardless of who it was to.
Inform them they can contact you during working hours to discuss T&Cs of appointment
If you are not comfortable acting for them, advise them to use RICS find a surveyor
Adhere to rules of conduct

Question 30

When setting up a new practice, what procedures would you put in place to ensure good client care was being provided?

Answer 30

Processes for formalising terms of engagement and clear communication lines with the client, including confirming timescales, resourcing adjustments and obtaining any information required from the client
Set up procedure for obtaining regular client feedback, and ensure this is acted upon
Develop strategies for taking part in business development activities in order to retain existing clients and also generate new business
Procedures to keep client information confidential and using non-disclosure agreements to protect client confidentiality if required
Reporting to clients using agreed and consistently formatted documentation that has been tailored to meet the clients requirements

Question 31

On receipt of a formal complaint from a client in writing, what would you do?

Answer 31

Arrange a call with client ASAP to notify that you have received the complaint and you are dealing with it
Issue the client a copy of my firms complaints handling procedure for reference
Report the complaint with all relevant details to a senior person within the firm or designated complaints handler
Notify my firms PII insurers inline with our policy requirements
Arrange a meeting with the client to take on board their feedback and address any areas of concern by introducing appropriate procedures if required
If unable to resolve, this would need to be referred to RICS independent redress mechanism

Question 32

What is the difference between a client and a customer?

Answer 32

Customers are individuals who are purchasing goods and services from a company. Typically 1 time transactions whereas a client refers to a person who looks for professional services from the business
A customer engaging in a transaction with a company will not have the same relationship as a client who engages in a fiduciary relationship with the company

Question 33

How do you conduct yourself with a new client?

Answer 33

Always friendly, engaging and enthusiastic
Inquisitive about key challenges they may be facing
Ensure at all times as a minimum i am: well presented, polite, conscientious and respectful

Question 34

What is meant by the term soft landings?

Answer 34

Refers to a strategy designed to make an easy transition from the construction stage to the occupation stage of a project
The overriding aim of soft landings is to realise optimal operational performance and ensure that the end users of the project can operate effectively in the built asset has been delivered

Question 35

Please provide an overview of your quality management procedures?

Answer 35

Peer review process
Standardised format of documentation
Authorisation / signature process in place prior to release of documents
Accessible file storage systems
Procedures for absence of staff and staff leavers to ensure handover of information
Lesson learnt sessions
Internal and external workshops

Question 36

What is your firm’s procedure for obtaining client feedback?

Answer 36

Regular progress meetings
Client performance reviews undertaken regularly
KPIs
Regular day to day informal communication with the client
Lessons learnt workshops

Question 37

What is meant by client money?

Answer 37

Money of any currency whether in the form of cash, cheques, draft or electronic
RICS regulated firms hold or receives on behalf of another person or company that is not immediately due or payable on demand to the RICS regulated firm for its own account
Client money excludes fees paid in advance for professional work