ETHICS Flashcards
1
Q
Who is the current RICS president?
A
Tina Paillet from January 2024
2
Q
Who is the current RICS CEO?
A
Justin Young
3
Q
What is the Role of RICS?
A
1) Regulate and promote the profession
2) Maintain highest educational and professional standards
3) Protect clients/consumers through strict code of ethics standards
4) Provide impartial advice and guidance
4
Q
What are the RICS professional standards and their status?
A
- Professional statements – mandatory requirements
- Guidance notes – best practice
- APC – mandatory
- Data standards – software must adopt RICS standards into offering
5
Q
What is a bribe?
A
A reward of financial value offered in return for a commercial or personal advantage
6
Q
What is the bribery act 2010?
A
A law brought in to regulate the act of bribery for all industries, It includes:
1) Bribing another person
2) Receiving a bribe
3) Bribing a foreign official
4) Failure by an organisation to prevent bribery
7
Q
What does acting with integrity mean to you, and can you tell me an example of how you have demonstrated this?
A
Acting with integrity means being honest and straightforward in all that I do
When undertaking a valuation for a metal work subcontract, I noticed that the Subcontractor had not applied for installation of an access stair way to the boiler room that was fully installed. In my valuation I included this item which the Subcontractor had missed
8
Q
What does acting in a way that promotes trust mean to you, and how would you demonstrate this?
A
Acting in a way that promotes trust means acting in a professional manner, not just in my work life, but in my private life also.
I would demonstrate this by always fulfilling my obligations, and making sure I do what I say I will do. For example, when agreeing to price a Contractor’s quotation, I will always provide this within the agreed timescales.
9
Q
What does taking responsibility mean to you, and how would you demonstrate this?
A
This means being accountable for all my actions, and don’t blame others if things go wrong
10
Q
What does providing a high level of service mean to you, and how would you demonstrate this?
A
It means that clients, or others to whom I have a professional responsibility receive the best possible advice, support or performance
I would demonstrate this by always ensuring that the quality of my output is high, whether this is a contractor’s quotation for a client, or a cash flow for our management accounts team
11
Q
What does treating others with respect mean to you, and how would you demonstrate this?
A
This means treating all people with courtesy, politeness, and consideration. I would demonstrate this by treating others as I would want to be treated.
12
Q
Tell me about some of the codes of conduct for the R.I.C.S?
A
There are the rules of conduct for both members and firms.
13
Q
What are the obligation for RICS Firms?
A
1) Publish complaints handling procedure
2) Relevant levels of PI
3) Sole practioners must have a lochum
4) Cooperation with the RICS
5) Provide all information to the RICS
6) Designations in place
7) Report any matter required under rules of registrations
14
Q
What are the three rules of conduct for members
A
1) Comply with CPD
2) Cooperate with RICS
3) Provide all information to the RICS
15
Q
When is a firm required to register for regulation?
A
1) Firm provides surveying services to the public
2) Firm operates in regulated area A (UK)
3) At least 50% of the firms principles are RICS members
16
Q
What are the R.I.C.S five principles of better regulation?
A
1) Proportionality
2) Accountability
3) Consistency
4) Targeting
5) Transparency
17
Q
What is the role of the R.I.C.S?
A
1) Regulate and promote the profession – Regulation
2) Maintain the highest educational and professional standards - Knowledge and Best Practice
3) Protect clients and consumers through a strict code of ethics and professional standards – Public Affairs
4) Provide impartial, advice, analysis and guidance – Research and Economic Analysis
18
Q
If you were to set up your own firm, what would you need to do?
A
1) Notify the RICS of your new firm
2) Prepare a Complaints Handling Procedure.
3) Obtain P.I Insurance.
4) Obtain Employers Liability Insurance (if employing other)
5) Abide by the R.I.C.S code of conduct for firms
6) Follow the RICS on client money handling
7) Staff training & development
19
Q
If after a valuation, your subcontractor asked if you wanted to go for a pint, what would you do?
A
I would politely decline
20
Q
What are required stages of a complaints handling procedure?
A
1) Acknowledge/register the complaint
2) Notify the complaints handling manager
3) Assign somebody to conduct an investigation
4) Set out course of actions to rectify
5) Formally communicate actions taken to the client
6) If client is still unsatisfied, refer them to the relevant contract ADR’s available
7) Communicate lessons learnt to firm
8) Inform the your PI insurer
21
Q
Can a sole practitioner deal with his own complaint?
A
Yes, he could in the knowledge that, if it could not be resolved, it must be referred to an independent redress scheme.
22
Q
What form of redress should a complaints handling procedure have if the firm cannot resolve the complaint?
A
The complaints handling procedure should have an A.D.R mechanism approved by the regulatory board, such as an ombudsman service, which can help to resolve disputes.
23
Q
What are the different final redress mechanisms between consumer and business clients?
A
When it is a consumer, it must also consider the consumer right act. Under the act consumers have a right for redress and this should be free.
24
Q
What would your P.I insurer expect in respect of complaints handling?
A
1) That complaints handling is undertaken in accordance with the specific terms of the current insurance policy
2) That the insurers is notified of any event that might give rise to a claim, which may be a complain that has been received
25
A Client has asked you to retain the retention fund on a contract, what would you do?
1) I would advise the client that, depending on the terms of the contract in use, an amount may be set off against retention monies if there are defects in the works discovered in the defects liability period, but then not corrected in such period.
2) Any sum set off against the retention should be fully justified however, and should not be arbitrarily withheld.
26
What is a conflict of interest?
When a person in a position of trust has competing personal or professional interests which would impact their ability to act impartial.
27
What should you do if you discover you have a conflict of interest?
1) Inform all parties involved and offer to stand down
2) Only proceed if you have written consent from those affected and it will not affect my ability to act impartially
28
What would you do regarding receiving gifts?
1) Decline any gifts as a default position as it could compromise my ability to act impartially
2) In circumstances where a gift may be received, it should only be accepted if it was of low financial value, was not in the mist of a commercial agreement, and it was recorded on my companies gift and hospitality register.
29
What would you do if the contractor invites you to a football match?
1) I would politely decline.
2) I would not want to accept any hospitality that may appear to reduce my impartiality
30
What would you do if your Commercial Manager asked you to inflate valuation figures?
I would advise him that I could not, as it would be unethical.
31
A junior surveyor working in your team incorrectly over certifies on an interim valuation – what do you do?
1) Check and understand the facts
2) If the certificate has not been issued, I would recertify and issue.
3) If it has, I would explain to other party and either correct in the next valuation of issue a payless notice dependent on several different factors.
32
Explain to me P.I cover?
1) Insurance to cover a firm financially against negligence from a breach of their professional duties which leads to financial loss
2) Should be accompanied by run off cover for a minimum of 6 years for when a firm ceases trading
33
What are the minimum levels of P.I cover?
Proportional to firms turnover as follows:
1) < £100k = £250,000
2) >£100k / < £200k = £500,000
3) >£200k = £1,000,000
34
What P.I levels are required of a new firm with no turnover figures to consider?
Should be based on their estimated turnover
35
What are the maximum levels of uninsured excess?
Proportional to levels of indemnity as follows:
£0 - £10,000,000 = the greater of 2.5% of insured sum or £10k
> £10,000,000 = 2.5% of the insured sum
36
Who does P.I insurance protect?
1) The professional is protected from having to pay the client for their negligence
2) The client is protected, as they are able to call on insurance to cover financial loss
37
Why aren’t you covered by your previous year’s policy?
PI insurance is on a claims made basis, meaning only claims made within the insurance period or the retroactive period will be deemed appropriate.
38
What are the R.I.C.S requirements regarding P.I. Insurance?
1) Each & every basis
2) Full civils liability basis
3) Sets out minimum level of indemnity
4) Sets out minimum level of uninsured excess
5) Fully retroactive
6) Must be underwritten by a listed insurer
7) Run off cover in place for at least 6 years
8) Covers past and present employees, directors & partners
39
What is the difference between civil liability policies and negligence based policies?
1) Civil liability policies offer a wider range of cover whereas negligence based policies is more specific to negligence
2) Negligence based policies cover anything stated within the policy, whereas civils liability covers a wide range of cover unless specifically excluded.
3) Civil liability policies are preferred and used more frequently
40
What is run-off cover?
Cover for previous work undertaken which you are still liable for claims of breach of professional care
41
How long should run off cover be in place?
1) 6 years if contract is executed underhand
2) 12 years if contract executed as a deed
3) RICS recommend 15 years
42
Tell me about Merrett v Babb?
1) Court case in 2001
2) Babb had carried out a negligent valuation as an employee of a company who had ceased trading
3) Merrett was the purchaser of the house associated with the valuation
4) The court ruled Merrett could pursue the individual (Babb) for the losses
5) This was a big shock in the industry
43
What is the significance of Merrett v Babb?
1) It Highlights the importance of runoff cover
2) Professional individuals and firms must ensure that run off cover is in place after they leave their firm’s employment, or a firm ceases trading
3) Individuals should ensure that their ex company keeps up this cover on their behalf
44
How does a fully retroactive P.I policy work?
The retroactive date is the starting window in which the PI cover commences. Claims prior to this date will not be covered. If the pi policy states "none", this means the cover is fully retroactive and therefore any breach can be claimed against.
45
On what basis is P.I underwritten in the UK?
1) Claims made basis
2) Claim is made against insurance that is in place at the time of the claim and not the breach
46
What measures should be taken to try and avoid P.I claims?
1) Act within competence and do not advise on something outside of expertise
2) Keep full & detailed records of meetings & conversations
3) Use proper letters of engagement, scope of services and terms of agreement
4) Use RICS guidelines
47
What insurances should you have in place if you set up a practice after you become chartered?
1) PI Insurance
2) Employers liability insurance, if not a sole practitioner
3) Consider public liability insurance
48
What insurances should you have in place if you were to start up you own firm?
PI Insurance
Employers liability insurance
Public liability insurance
Building insurance for own office
49
If you made a mistake in your cost plan what would your insurance company expect?
For you to notify them and comply with any procedures set out in the insurance policy
50
Are you familiar with the term limit of liability and where would it be used?
1) Places a cap on the level of exposure a business signs up to
2) In the aggregate means as a maximum cover after every claim
3) Each and every claim basis is at that level for each claim
4) If not covered within PI insurance, opposing party can seek to obtain assets
5) This can be countered with limits of exposure
51
If an estimate prepared by surveyor is incorrect, can the client claim damages?
Not unless they can demonstrate the valuation was incorrect due to a lack of reasonable skill and care. For example, conditions outside of the surveyors control may have been the cause of the incorrect estimation.
52
If a client was prepared to pay you in advance for services you were providing, how would you ensure this was dealt with?
1) Set up a separate client account that is properly named and clearly identifiable.
2) Provide the client with a statement of account
3) Agree draw down dates and amounts
4) Once complete issue a final statement of the payment and associated draw downs.
53
What are the implications of the Money Laundering Regulations when considering the handling of client’s money?
Firms must keep policies relating to risk assessment and due diligence relating to money laundering
54
What is a client’s account?
A separate bank kept by a person or business for their client which is completely separate to their own.
55
What is an Ethics Certificate?
A certificate to show you have passed the RICS professionalism module, this is a requirement on the candidate checklist.
56
If there was an error in the main contract bill of quantities what would you do?
I would notify the Employer in accordance with the terms of the contract.
57
When was the UK Bribery Act introduced?
2010
58
what is the UK Bribery Act?
UK legislation against the act of bribery which includes:
Offering a bribe to another person
Accepting a bribe from another person
Bribing a foreign public official
A corporate offence of failing to prevent bribery
59
What are the consequences of breaching the Bribery Act?
Individuals can receive a maximum 10 year prison sentence and or unlimited fine.
Corporate bodies can receive unlimited fines, be debarred from tendering for public contracts, and suffer reputational damage.
60
What guidance have the RICS provided with respect to the bribery act?
Bribery Act Guidance for Individual members
Bribery Act Guidance for corporate members
61
What steps might an organisation take to have a defense for the corporate offence under the bribery act?
Due diligence
Risk assessments
Communication including Training
Monitoring & review
62
How you would identify if an act of bribery was being undertaken by an individual?
Changes to volume or value of contracts
People living above their means
Reluctance to delegate works to others
Suppliers or bidders insisting on speaking to one individual
63
What are the R.I.C.S C.P.D requirements for members?
Members must complete 20 hours of CPD per calendar year, with at least 10 hours being formal.
Members must record their CPD activity online by 31st of January.
64
What is C.P.D? How do you intend to complete your C.P.D if you become chartered?
Continued professional development, which is a commitment to continually update skills and knowledge in order to remain professionally competent. I will complete CPD by undertaking formal training, seminars, and private study.
65
What CPD do you have planned after this interview?
Biweekly commercial training sessions & the annual NEC event hosted by built intelligence.
66
Are there exemptions to the 20 hour CPD requirement?
Only full retirement or ill health
Career break, maternity/paternity leave or unemployment do not count
67
What are the penalties that the R.I.C.S Disciplinary Panel can impose?
Fines
Conditions on memberships
Expulsion
68
Can you advise on what is in Laing O Rourke’s Code of Conduct?
The Laing O'Rourke code of conduct is around:
1) Business integrity
2) Working with each other
3) Responsibilities as a global company
4) Keeping assets & data safe
69
How do you keep up with construction news?
I read:
Building.co.uk
Construction law UK
Linkedin articles
70
What articles have interested you in the Modus magazine recently?
TBC
71
What articles have interested you in Construction law UK recently?
TBC
72
What articles have interested you on building.co.uk recently?
TBC
73
What are R.I.C.S guidance notes?
A series of published notes that provides advise to professionals on aspects of their works, and are intended to represent best practice.
74
Can you name some guidance notes?
Cash flow forecasting
Cost reporting
Valuing change
Management of risk
75
What are the implications of not following guidance notes?
1) Difficulty in defending claims against negligence
2) Courts will consider professionals consideration of guidance notes
76
What is the difference between guidance notes and code of practice notes?
A code of practice can be either mandatory or recommended good practice
A guidance note is recommended good practice only
76
Which R.I.C.S publications are mandatory for members to follow?
R.I.C.S standards and professional statements are mandatory
77
Approximately how many R.I.C.S members are there?
Roughly 130,000
78
78. What is the governing structure of the R.I.C.S?
1) Governed by a 70 strong Governing Council, chaired by the President
2) It meets twice a month?
3) It is supported by a number of boards – regional, specialist faculty boards etc
4) There is one president elect and one senior vice president
5) A new president is elected annually
6) Members of the council are elected and have a four year term
79
What is Lion heart?
1) Lion heart is an independent charity run and funded by RICS members
2) Offers free and confidential advise/information to existing and old members
80
What is the RICS motto?
1) Est modus en rebus
2) There is measure in all things
81
Why do you want to be chartered?
To enhance my professional knowledge throughout my career and be part of a reputable organisation providing my future clients with full confidence in my competence.
82
How do you propose to be an ambassador or advocate for the R.I.C.S moving forward?
I would like to start running APC workshops at my company to help other colleagues become chartered
83
What is the significance of the R.I.C.S royal charter?
1) The Royal Charter requires the R.I.C.S to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world.
2) Important changes to the R.I.C.S constitution have to be ratified by UK Government, through the Privy Council.
84
Do you know what changes by laws that the R.I.C.S is seeking to get approved from the Royal Charter authority?
1) Moving to a more globally representative and diverse Governing Council
2) The creation of a new role of Chair of Governing Council
3) The creation of a joint 'Standards and Regulation Board
85
What can you bring to the R.I.C.S, and why do you feel you deserve professional status?
1) I mentor the new generation of quantity surveyors and want to adopt and want to install the best practice knowledge from the RICS into the profession
2) I will continuously strive for improvement in my knowledge and vow to pass my knowledge on to others.
86
What does the R.I.C.S consider to be some of the challenges with Brexit?
1) The loss of free movement of labour might further compound the skills shortage
2) Loss of European Investment Bank funding might reduce investment in infrastructure
87
Do the RICS advise statutory bodies on the impact of changes to legislation policies?
Yes
88
What can you tell me about the RICS Futures programme?
1) The RICS Futures programme explores the implications of key drivers for change to 2030
2) From mass urbanisation to the rise of the worldwide middle class and the revolutionary promise of big data
89
What are the 6 areas of focus for the RICS Futures programme?
1) Data and technology
2) Talent and skills
3) Sustainability
90
What can you tell me about the Industrial Strategy for Construction (Construction 2025)?
It’s the UK government’s vision for how the construction sector can improve
The overall aim is to achieve :
1) 33% Lower Costs
2) 50% faster delivery
3) 50% lower emissions
4) 50% improvement in exports.
91
How did your company perform in the Government data on how it quickly it pays the supply chain?
1) Average time taken to pay invoices = 28 days
2) 69% of invoices paid within 30 days
3) 25% paid between 31 days to 60 days
4) 6% paid in 61 days or more
92
What is a redress?
It is a remedy for a wrong or grievance
93
What percent of employees need to be chartered to be classed as a chartered firm?
50% or more
94
Have you been to any Matrix events lately?
No, but i appreciate the opportunities it presents through networking
95
Which firms are regulated by the RICS?
1) Firm principles are at least 50% RICS members
2) Firms principals provides surveying services to the public
3) Firm is operating in a regulated area A
96
What sort of information do registered firms have to send to the RICS annually?
1) Type of business and staffing
2) Nature of clients
3) Complaints handling procedures details and records
4) PI insurance details
5) Whether the firm holds clients’ money
97
Name some topics on which the RICS publishes help sheets and policy documents
1) Lifelong learning and Training
2) Handling clients’ money
3) PI insurance requirements
4) Complaints handling procedures
5) Maintaining professional and ethical standards
98
In the case of a breach of a rule of conduct what is the procedure?
1) Only serious breaches will result in disciplinary action
2) Minor breaches can be dealt with through self-correction or firms processes
3) Disciplinary action = Head of Regulation for the RICS will investigate as a first step
4) RICS can request information and visit/inspect to investigate compliance
5) Members must cooperate fully with all enquiries
99
How can a disciplinary proceeding be triggered?
1) Someone complaining to the RICS
2) An allegation by a client or third party
3) Information received or established by the RICS
100
What three actions can be imposed after the end of the investigation stage?
1) Fixed penalty
2) Consent order (formal notice of caution)
3) Disciplinary panel
101
Who is head of the RICS regulatory body?
Peter Smith appointed in 2022
102
Can you tell me what a fixed penalty is and give me one rule breach that would result in a fixed penalty for both members and firm?
1) A fine by the RICS
2) Failure to provide the RICS with information
103
What would happen if the guilty party continued to breach the rule?
A further notice may be issued and the fine increased
104
Can you appeal a fixed penalty?
Appeals can be made against them within 28 days
105
What are consent orders?
Require the member or firm to take or desist from taking a certain action within a specified period of time
106
When are consent orders applicable?
1) For low level breaches of the rules that can easily be corrected
2) Can be applied for the breach of any of the Rules
3) Fines applied may be £2,000 per breach
107
When is a disciplinary panel applicable?
1) Used for more serious breaches of conduct
2) The panel will usually be held in public
108
What penalties can the RICS apply?
1) Caution
2) Reprimand
3) Undertakings as to future conduct
4) Fines (unlimited)
5) Conditions for continued membership
6) Expulsion
109
What sort of breaches would expulsion be suitable for?
1) Persistent or wilful failure to comply with an RICS rule of conduct (Fraud, dishonesty, deliberate description)
2) Failure to pay fees, failure to demonstrate lifelong learning
110
How are disciplinary breaches published?
1) Disciplinary panel hearings are posted on the website 14 days before
2) Decision published within RICS and publicly
3) Nr of fixed penalties and consent orders issued are shared each quarter on the RICS website for 12 months, doesn’t name individuals or firms
111
What insurances would you need if you were starting up your own firm?
1) PI
2) Employer’s Liability
3) Public Liability
4) Building insurance of own office.
112
When do you issue your complaints handing procedure?
1) When an expression of dissatisfaction is issued to you or somebody within your practice my a valid complainant
2) Valid complainant = somebody whom you owe a duty of care to
113
What must a complaints handling procedure include?
1) Redress mechanism
2) Must be shared with client
3) Transparent and impartial
4) Names & contact details
5) Clear timescales (28 days to redress)
6) Outcomes/resolutions recorded
7) Inform PI insurer
8) Referral mechanism to third party
114
What measures could be taken to protect commercially sensitive information?
1) Encrypted files
2) Screen filters
3) Staff confidentiality enforced
4) Security of physical documents (e.g lockable filing cabinets)
115
What practices should be following when handling client’s money?
1) Separate designated bank accounts
2) Agreed account handling terms
3) Monies available to client on demand
4) Interest to be paid to clients unless otherwise agreed
5) At least 2 signatories must be agreed
6) A bank reconciliation at regular intervals
7) Compliance with audited by RICS’ appointed accountants
8) Firms are required to pay RICS an annual fee as monitoring costs
116
What is the ‘Clients’ Money Protection Scheme’?
Schemerun by RICS that pays protection as a lart resort in the event a RICS regulated firm is unable to repay a clients money up to a certain limit.
117
What would you do if the Client wanted to give you cash upfront to cover your fees.
I would not accept due to concerns with money laundering. Instead, I would politely request for this money to be paid a debit transaction where it was clearly recorded.
118
What are the lifelong learning requirements?
A commitment by RICS members to conduct continuous learning appropriate to the professional and provide evidence on request.
119
How many levels of membership are there and what are they?
1) Student
2) Member (MRICS)
2) Fellow (FRICS)
3) AssosRICS
120
How do you become a fellow?
1) Must already be MRICS
2) Prove how career experience demonstrates 4 of the 12 professional characteristics
3) E.G Service to RICS, Teaching, Leadership & Client Care
121
What is the APC?
1) Stands for Assessment of Professional Competence
2) A process to ensure candidates are competent in the surveying proffesion
122
What different routes are there for taking the APC?
1) GR1 - Accredited degree, 2 years structured training & experience, minimum 96 hours CPD, final interview.
2) GR2 - Accredited degree, 5 years structured training & experience, minimum 48 hours CPD & final interview.
3) GR3 - Accredited degree, 10 years experience, minimum 48 hours of CPD, final interview.
4) GR4 - Bachelor degree or higher, minimum 5 years experience (at least 12 month post qualification), completion of preliminary review & minimum 48 hours of CPD
123
What is the RICS foundation?
1) Independent worldwide charitable foundation
2) Founded by the RICS in 2000
3) Raises awareness about issues of concern within the built and natural environments
4) Supports and promotes research and spread the results to the industry
124
Can you name 5 of the 17 RICS professional groups?
1) Quantity Surveying & construction
2) Building surveying
3) Project Management
4) Valuation
5) Dispute Resolution
125
What are the duties of each professional group?
1) Contributing to policy formation
2) Specialist and research information
3) Contribution to CPD topics for events
4) Quality control over use of specialist chartered designations
126
What is the difference between ethics & integrity?
Ethics = moral principles that governs peoples behaviours
Integrity = is the trait of being honest having strong moral principles
127
What is modern slavery?
The illegal exploitation of people for personal or commercial gain, includes: sexual exploitation, domestic servitude, forced labour, criminal exploitation & organ harvesting.
128
What is a complaint?
An expression of dissatisfaction, generally arise when expectations have not been met.
129
How would you deal with a complaint from a client?
1) Acknowledge receipt of the complaint
2) Notify the complaints handling manager
3) Appoint somebody to carry out an investigation
4) Identify your intended outcome and set out actions to rectify
5) Inform your PI insurer throughout
6) Formally respond to client with your intentions to resolve
7) Communicate lessons learnt internally
8) If client is still unhappy, inform them that they may resort to dispute resolution procedures
130
Can you tell me about any RICS guidance for complaints handling?
Complaints handling 1st edition 2016
131
Why did the previous rules of conduct change?
1) It was outdated and introduced back in 2007
2) The majority of members and firm voted to change
3) It was suggested that one single document was required for greater clarity
4) Now a greater focus on behaviors, evolving technology and climate change
132
When was the RICS founded?
1868
133
What is the RICS mission statement?
1) Qualify & equip members to the highest professional standard
2) Promote & enforce standards
3) Use professional expertise to provide leading solutions to the challenges faced by the built environment
134
What are the RICS BYE Laws?
1) Laws set out in the royal charter that determine how the RICS is regulated
2) 10 Bye-laws in total
135
What are the 10 RICS BYE LAWS?
1) Applications & definitions
2) Membership & registration
3) Designations
4) Contributions to funds
5) Conduct
6) Governing council, officers & staff
7) Subordinate boards, committees & groups
8) Procedure for general meetings
9) Accounts & audit
10) General
136
What is a net contribution clause?
1) Puts a limit of liability to the parties breach responsibility.
2) If the designer is responsible for 70% of the blame the client can only seek 70% of the lost and not the full 100%
3) If 30% of the loss was due to workmanship, the client must seek the other 30% from the other guilty party.
4)
137
Can you advise on how you would handle a clients money?
1) Account title should include 'client'
2) Any interest payable should be credited back to the account
3) Receipts must be clearly identified as office or client money and properly apportioned
4) Prompt procedures in place to identify unidentified funds either asap or within 1 month.
5) Bank statements must be retained for a minimum of 6 years
6) Monthly reconciliations must be carried out
138
Can you name any publications issued by the RICS around conflicts of intrest and what is mentions?
1) Conflicts of intrest 1 edition March 2017
2) Defines a COI
3) Sets out mandatory rules
4) Sets out principles for expectations of members and firms
5) Outlines different types of conflicts
6) Talks about informed consent and when it is not enough
139
What duty of care to you owe to your client?
1) Contractual obligations
2) Tort of negligance
140
How would you identify if an act of bribery was being undertaken?
1) If an individual appears to be living beyond their means
2) Drastic changes to volume / value of contracts
3) Reluctance to delegate
4) Insistence from suppliers to speak to one individual
5) Non compliance with the RICS rules of conduct
141
What would be the consequences of not following the RICS guidance notes during a claim against negligence?
1) This would be grounds for expulsion from the RICS
2) The courts would take this into consideration when handling the case
142
When is a firm eligible to register for the RICS?
1) Provides surveying services to the public
2) At least 25% of the firms principles are RICS members
3) Can also request to register if they meet point 1 and can prove they are working towards the second
143
Can you please explain how you would value a change in a JCT contact?
I would refer to the valuation of variation hierarchy as follows:
1) Use contract rates where possible
2) Where the nature of works is different, original rates can be used as a basis to build up a new rate.
3) Should this be unachievable, the contractor should provide a quotation based on first principles.
4) As a worst case scenario, the contractor should use dayworks.
144
Can you please explain how you would value a change in a NEC contact?
I would price this based on first principles as per the SSOCC or SSSOCC including the following headings:
1) People/labour
2) Equipment
3) Plant and materials
4) Charges
5) Manufacture and fabrication
6) Design
7) Insurance
It is important to price based on the assumptions made within the instruction, including a forecast where required. Should those assumptions change, the valuation of said changes should be treated as a separate compensation event.
If this is not possible, I would result to dayworks.
145
Can you please explain the relevant legislation around limitation periods?
The Limitation Act 1980
1) Sets out rules on how long someone can take legal action
2) The limitation for contracts under hand is 6 years
3) The limitation for contracts as a deed is 12 years
146
What advise might you give to a client about the uses of z clauses?
Z clauses are bespoke terms inserted into a contract to cater for specific project needs.
Examples:
1) The Contractor may show signs of a financial difficulties meaning the employer may wish to add specific z clauses for the requirement of collateral warranties.
2) The Contractor may wish to assert a document hierarchy in the event of any ambiguity, this would be advised to swiftly agree any disputes.
147
As you said you worked on an NEC option C, could you please explain how a fixed price sub-contract would be incorporated into a target cost main contract?
The target cost would not change, only an implemented CE would change the target cost. However, if the subcontract was let above or below what was tendered for the original target cost, the pain/gain would be shared in accordance with the contract conditions.
148
Why did the RICS Rules of conduct change?
1) Previous rules were outdated (2007)
2) Member vote in favor of single document instead of rules & standards
3) Greater focus on example behaviors for each rule
149
What is your understanding of the changes to the rules of conduct?
Previously 3 separate documents as follows:
1) Rules of conduct for members
2) Rules of conduct for firms
3) Global professional and ethical standards
Now it is the 5 rules of conducts with appendix A
Appendix A = professional obligations of members and firms
150
What are the professional obligations for RICS members?
1) Comply with CPD
2) Cooperate with RICS
3) Provide all information requested by the standards and regulation board
151
What are the professional obligations for RICS firms?
1) Cooperate with RICS
2) Provide all information requested by the standards and regulation board
3) Publish a complaints handling procedure (including ADR procedure)
4) Comply with designations
5) Report on matters required under rules for the registration of firms
152
What is the RICS matrix?
A group within the RICS that assists with the younger generation of surveyors joining the profession. They also play a role in shaping the RICS in the future.
153
You give an example of where you highlighted through the tender process a mistake, would you have dealt with this differently if the mistake was found post-contract?
Make them aware of the missed item within their tender, if the value was low I would consider taking the hit, but it it meant we'd exceeded budget I would enter into conversations with the subcontractor to discuss value engineering options.
154
What are the 6 principles to prevent bribery?
1) Top level commitment
2) Proportionality
3) Risk Assessments
4) Due diligence
5) Communication
6) Monitoring & Review
155
When would you consider accepting a gift?
1) In some cultures it may be deemed rude to not accept a gift, if the other party was insistent only then you should accept the gift but record the process to your company who can then donate the gift to charity.
2) You may also do this if you are under any threat or danger if you decline the gift.
156
The government had aspirations for BIM in 2016, can you tell me what they were?
1) Mandate use of BIM on all government projects from 2016
2) To use BIM as a wider offsite manufacturing strategy
157
What is 5d modelling?
Adding cost information to a model.
158
What are the main challenges of adopting BIM? Name 3:
1) Industry's reluctance to change
2) May not be cost effective for smaller projects
3) Lack of expertise
159
Have you read anything of intrest in the recent releases of modus magazines?
1) Sphere building in las Vegas is very inefficient requiring the power to generate 21,000 homes
2) 70% of the energy comes from solar sources
160
How many members does the RICS have?
130,000
161
What is the Domestic Reverse Charge?
This puts the onus on the main contractor to pay VAT to HMRC rather than the subcontractor in attempt to prevent missing trader fraud.
162
Who does the DRC apply to?
Any company carrying out construction services in accordance with the Construction Industry Scheme (CIS)
163
What is IR35? Who does it affect?
164
Have you ever been in a position where you have had a conflict of interest?
No, but if I was I know the correct process to manage it.
165
If successful today and you decided to set up your own RICS practice, what action would you take?
1) Notify the RICS
2) Issue the number of people working
3) Obtain PI insurance
4) Set up a complaints handling procedure
166
What steps might you take to avoid a conflict of intrest?
1) Communicate to everybody as soon as they become known
2) Remain transparent
3) Hold open discussion before work is allocated
167
Can you name any documents and there standards around bribery and provide an overview of what it consists of?
Financial Crime: Bribery, corruption, money laundering, terrorist financing and sanctions - RICS professional standard (mandatory document)
Consists of:
1) Mandatory requirements for anti bribery, corruption, anti money laundering and terrorism
2) Guidance and good practise
168
What are some of the things firms must do in relation to corruption?
1) Must not offer of receive anything that could constitute a bribe
2) Ensure procedure are in place to follow laws
3) Report anything unlawful to the authorities
4) Evaluate risks around corruption on a periodic basis
5) Maintain information on compliance with this standard
169
What are some of the things members must do in relation to corruption?
1) Must not offer of receive anything that could constitute a bribe
2) Report anything unlawful to the authorities
3) Read, understand and comply with this standard
170
What are 3 things members and firms must do in accordance with money laundering?
Firms
1) Have systems and training in place to comply with legislation
2) Report any suspicious activities to the relevant authorities
3) Verify the identity of client by undertaking basis checks
171
What are the three W's mentioned in the 'Countering Bribery And Corruption, Money Laundering And Terrorist Financing'?
The three things you should consider when assessing the risk of doing business with someone:
Who you are acting for
What works are you doing
Why are you being asked to do something
172
What is unconscious bias?
The unawareness of a prejudice opinion one forms over somebody based on factors such as stereotypes, past experiences or gut feelings.
173
Can you please give an example of a time you have been unconsciously bias?
I cannot recall a time i have experienced this personally, but i know of some examples where this does happen. For example, a company may unconsciously prefer to give a younger member of staff a promotion over a an older member of staff based on their age despite the other being more qualified.
174
Outside of your write ups, can you give me on example of when you acted ethically?
1) NLE Flooring Package
2) New QS was an old friend
3) Addressed party conflict of intrest
4) Agreed for the remainder of final account to be conducted by commercial manager
5) Removed any risk of impartiality
175
What is the RICS Foundations Strategy?
It is the RICS strategy to achieving a natural and built environment that is sustainable, resilient and inclusive for all.
It includes three main headings:
Visions
Values
Strategic Goals
Mission
176
Within the RICS Foundation Strategy, what are their visions?
To transform the built environment into one that is sustainable, inclusive and resilient.
177
Within the RICS Foundation Strategy, what are their values?
P - professional
I - inclusive
C - collaborative
A - ambitious
178
Within the RICS Foundation Strategy, what is their mission?
To uphold, advance and inspire professionalism for the benefit of society.
179
Within the RICS Foundation Strategy, what is their strategic goals?
1) Strengthen trust in the profession
2) Lead and influence on sustainability
3) Encourage diversity in the profession
4) Enhance engagement and value for members
180
Can you explain the RICS disciplinary process?
1) Bye-law and royal charter permit the board to exercise disciplinary processes
2) Rules for disciplinary are set out in 'Regulatory Tribunal Rules'
3) Complaints with evidence - investigated by head of regulation and decided whether to take action of not.
3) Less serious - (not following rules etc, generally self admission) = cautions, fines, & conditions on membership
4) More serious investigated by disciplinary panel and may result in fines to expulsion
181
What are the 'RICS Regulatory Tribunal Rules'?
1) Regulatory RICS document
2) Sets out the rules and punishments for different breaches
182
Are RICS disciplinary hearings held in private?
No, all disciplinary hearings are held in public unless the offender puts a request in writing 14 days before.
183
Can disciplinary punishments be appealed?
Yes, but has to be within 7 days.
