Ethics Flashcards
What are the hot topics RICs have recently looked at that impact you as a QS?
- Changes to NRM (in line with RIBA stages, Code of measurement & ICMS)
- Ethics Rules changing in Feb 2022
- COP26 - value the planet & sustainability:
- RICS implementing UN Sustainable Development Goals:
- RICS guidance on Resource Management: Improving Efficiency and Reducing Waste
- SKA ratings
We can be:
- Mindful of WLC
- Accountable
- Collaborative - PII requirements - added fire following grenfell
What is your RICS membership number?
1234950
Who is the president of the RICS?
Clement Lau (Sept 2021)
Who is the president elect of the RICS?
Ann Gray
Who is the vice president of the RICS?
Tina Paillet
Who is the head of regulation in the RICS?
Dame Janet Paraskeva
Who is the head of the privy council?
Lord President - Jacob Rees Mogg
Who is the CEO RICS?
Richard Collins (Oct 2021) - Interim - replaces sean tompkins
How many members of the RICS are there?
140,000 across 146 countries
What is the RICS London HQ address?
12 Great George Street (Parilament Square)
Westminster
London
SW1P 3AD
What does RICS stand for?
Royal Institution of Chartered Surveyors
What is the role of the RICS?
Regulate and promote the profession
Maintain the highest educational and professional standards
Protect clients and consumers through a strict code of ethics
Provide Impartial Advice, analysis and guidance
What are the RICS ethical standards?
STIRR: Always Provide a High Level of Service Act with Integrity Act in a way that promotes Trust in the profession Treat Others with Respect Take Responsibility
What is the Carsberg report?
A third party review of how the RICS regulates itself.
Recommended greater separation of regulatory and representational functions.
Recommended chartered surveyors should still be regulated by the RICS but that this should involve separate regulatory and conduct boards.
What are the various RICS statuses?
Trainee Student Graduate Assoc RICS Member RICS Fellowship RICS
How many RICS professional groups are there?
18
Name some RICS faculties.
Quantity Surveying Building Surveying Project Management Valuation Facilities Management Dispute Resolution
What is the ISO Standard for anti-bribery?
37001
What is the ISO Standard for Corporate Social Responsibility?
26000
What are the rules of conduct for members?
There are 9 - ICE CSCSIC
Interpretation - member means a chartered surveyor, non charted member of honorary member
Communication - RICS will communicate via post, email, telephone, fax, or in person
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Ethical Behaviour - at all times act with integrity, avoid conflicts of interest, and avoid situations inconsistent with professional obligations
Competence - members shall carry out their professional work with due skill, care and diligence and with proper regard to the technical standards expected of them
Service - members shall carry out their work in a timely manner and with propoer regard for standards of service and customer care expected of them
Continuing Professional Development (CPD) - members shall comply with RICS requireiments in relation to CPD
Solvency - members shall enure that their personal and profesional finances and managed appropriately
Information to RICS - Members shall submit in a timely manner such information and in such form that the regulatory board may reasonably require
Co-operation - Members shall fully cooperate with RICS staff and any person appointed by the regulatory board.
What are the rules of conduct for firms?
There are 15 AS above plus - CCPAAD
Interpretation - “Providing a surveying service to the public,” any services that are considered within the responsibility of the RICS. “Contact Officer” is individual designated by the firm to be the main liaison point between the RICS and the firm and the person authorised by the firm to submit the annual return. “firm” is a partnership, LLP, whole or part of a body corporate or unincorporated practice or sole practitioner concerned with the business of surveying which is regulated by the RICS or equivalent in any other part of the world.
Communication - See rules for members
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Professional Behaviour - See rules for members
Competence - See rules for members
Service - See rules for members
Training and CPD - A firm shall have in place all necessary procedures so that all its staff are properly trained and competeant to do their work
Complaints Handling Procedure - A firm shall operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must include an alternative dispute resolution mechanism that is approved by the regulatory board
Client’s Money - A firm shall preserve the security of Client’s money entrusted to its care in the course of its practice or business
Professional Indemnity Insurance - A firm shall ensure that all previous and current professional work is covered by adequate and appropriate indemnity cover which meets standards approved by the Regulaotry Board.
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Advertising - A firm shall promote its professional services only in a truthful and responsible manner
Solvency - See rules for members
Arrangement to cover incapacity or death of a sole practitioner - a firm that has a sole principal shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absense
Use of Designations - A firem registered for regulation must display on its business literature in accordance with the Regulatory Boards published policy on designations, a designation to denote that it is regulated by RIC
Information to the RICS - See rules for members,
Co-operations - See rules for members
What do you know about the new rules of conduct
Released in October 2021, come into effect in Feb 2022
Replace rules for individuals & firms and rules of conduct
Based on behaviours & sustainability
New Rules:
- Members & firms must be honest, act with integrity and comply with their proffessional obligations including obligations to the RICS.
- Members & firms must maintain their proffessional competence and ensure services are provided by competent individuals who have necessary expertise.
- Members & firms must provide good qulity & diligent service.
- Members & firms must treat others with respect and encourgae diversity and inclusion.
- Members & firms must act in public interest, take responsibility for thier actions and act to prevent harm and maintain trust within the proffession.
What is the RICS black book?
A suite of guidance notes that define good technical standards for Qs & construction proffessionals
What are there RICS black books on?
Acceleration - Capital Allowances - Commercial Management of Construction
Conflict Avoidance and Dispute Resolution - Cost Reporting - E Tendering
Construction Security and Performance Documents - Extensions of Time - Final Account Procedures
Defining Completion of the Works - Employers Agent D&B - Extentions of Time
Interim Valuations and Payment - Life Cycle Costing - Management of Risk
Lenders Independent Monitoring Surveyor - Retention - Tendering Strategies
Termination of Contract, Corporate Recovery and Insolvency
Value Management and Value Engineering - Valuing Change - Cashflow Forecasting
Cost Analysis and Benchmarking
Are guidance notes compulsory to follow?
No. However if there was a case of professional negligence, the court would take into consideration whether or not guidance notes were followed.
Are practice notes compulsory?
Yes.
What is an RICS Code of Practice (CoP)?
A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note.
What is an RICS professional Statement (PS)
Mandatory requirements for RICS members and regulated firms.
What is an RICS Guidance Note
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
What is an International Standard
High-level standard developed in collaboration with other relevant bodies - MANDATORY.
What is an RICS Jurisdiction Guide
This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
When was the Bribery Act introduced?
2010, came into force in 2011
What are the principles of the Bribery Act? (6)
PCR - CDM Proportionate procedures Communication Risk assessment Top-level commitment Due diligence Monitoring and review
What do you know about the Bribery Act?
It is legislation that makes bribery illegal for companies working in UK.
Also holds UK companies accountable for failing to prevent such acts by those working for or on its behalf, no matter where the act takes place.
What happens if you commit an act of bribery?
Up to 10 years in prison
Excluded from RICS
Unlimited fine
Banned from being a director of any company
How do you deal with a conflict of interest?
Openness and transparency.
What is PII?
Professional Indemnity Insurance
Covers a firm for a claim for financial loss.
Minimum level of cover based on turnover in the previous year.
What are the levels of cover advised by the RICS?
£100k or less turnover - £250k
£100k - £200k turnover - £500k
£200k or over - £1,000,000
RICS advise it should also be on an ‘each and every claim’ basis.
What is the Assigned Risk Pool?
The ARP panel is a facility for trading member / firms who find themselves unable to obtain insurance in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
What does the RICS advise as the maximum level of uninsured excess on a PII policy?
Up to £500k - 2.5% of the sum insured or £10k, whichever is greater
Over £500k - 2.5% of the sum insured
What is run-off cover?
Ensures firms, members and their customers are not exposed to detriment in the period following a firm ceasing to trade. Minimum run-off cover is 6 years.
Do you know any case law regarding run-off cover?
Babb v Merrett - The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm’s branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm’s professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing.
The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer’s report and was unaware, at the time of purchase, of his identity.
Can come after the individual if business ceases trading therefore need to keep PI run off.
What is the name of the RICS journals?
MODUS
What punishments can the RICS issue?
Expulsions of Regulated members
In less serious cases where admitted, Regulatory compliance orders to ensure compliance with standards
Where not admitted, referred to single member of conduct and appeal committee
Most serious cases referred to a disciplinary panel
What complaints can the RICS investigate?
Any breach of their conduct
They will not investigate whether a high level of service is provided
What is the RICS ethics tree?
Sufficient facts? Legal? RICS Professional Standards? Consulted with appropriate people? Clear Reasoning? Would you be ok if your actions were made Public
What was last month’s MODUS report?
Oct 2021 - choosing deconstruction over demolition
Designing buildings with the end of their useful life in mind means construction materials can be recycled and re-used in a new project. But the salvage operation means added time and cost.
Made difficult by fused elements (concrete & steel / rebar)
Chinese gov target of 65% construction waste to be recycled by 2025 in reach… cheaper labour & highly supportive of recycling schemes.
What are your company’s standards?
Act respectfully Add value Think Creatively Uphold our hugh level of service Act with Integrity
What should you send accompanying a fee proposal?
A set of T&Cs & scope of services
What is your company’s business plan?
Reach £250k T/o in next 12 months - Y2 £300k - Yr 5 £500k
Work across a range of sectors incl resi, education, healthcare & commercial for a rnage of clients from developers to consultants and contractora & subcontractors.
Work with repeat clients on a regular basis
What are your company’s KPIs?
Monitor levels of staff retention.
Clients pay 100% paid on time.
75% Repear business from existing clients
Improvements to GP per customer
What is the client’s money protection scheme?
A scheme run by the RICS for clients to recover money that is lost by a firm.
What is the IES?
International Ethical Standards
What are the principles of better regulation?
How the regulator is going to regulate us - i.e. RICS. I will follow rules for members & firms
Proportionality Accountability Consistency Targeting Transparency
What is the RICS mantra?
Est Modus Rebus’ = There is measure in all things
What is a conflict of interest?
Anything that may impede, or be could be seen to impede, and firm or individual’s ability to act impartially and in the best interest of the client.
