Ethics Flashcards
1
Q
Can you explain the significance of the RICS Rules of Conduct and why they were updated in 2021?
A
Answer: The RICS Rules of Conduct are essential because they set the professional and ethical standards expected of RICS members and firms. The 2021 update reflects the need to modernize these rules to keep pace with changes in the industry, societal expectations, and regulatory environments. The update also emphasizes transparency, sustainability, and the protection of public interest, which are increasingly important in the built environment sector.
2
Q
How do the Rules of Conduct guide your daily professional behaviour as a surveyor?
A
Answer: The Rules of Conduct provide a clear framework for decision-making and behavior. They ensure that I act with integrity, transparency, and professionalism in all my dealings. For example, the rule on ethical behavior reminds me to avoid conflicts of interest and to always act in the best interests of my clients and the public.
3
Q
What are the potential disciplinary actions that can be taken against members or firms who fail to adhere to the RICS Rules of Conduct?
A
Answer: Disciplinary actions can range from formal warnings and fines to suspension or expulsion from RICS membership. Firms can also face similar penalties, including the loss of RICS accreditation. These actions are taken to maintain the integrity of the profession and ensure public trust in RICS members and firms.
3
Q
What are the 5 rules?
A
- Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Rule 3 - Members and firms must provide good-quality and diligent service.
- Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
- Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
3
Q
Give an example behaviour for each.
A
- Rule 1 - Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others.
- Rule 2 - Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
- Rule 3 - Members and firms understand clients’ needs and objectives before accepting any professional work.
- Rule 4 - Members and firms respect the rights of others and treat others with courtesy.
- Rule 5 - Members and firms respond to complaints made against them promptly, openly and professionally.
4
Q
Why is it important for RICS members to understand and apply the five rules of conduct?
A
Answer: Understanding and applying the five rules is crucial because they ensure that members uphold the highest standards of professionalism and ethical behavior. This not only protects the reputation of the individual member and their firm but also ensures that the public can trust RICS members to act in their best interests.
5
Q
Can you tell me about the RICS requirements in relation to PII?
A
- All RICS regulated firms and individuals members who provide a professional service to the public are required to have PII
- Minimum coverage levels, which is based on a firms turnover in the preceding year
o £100,000 or less = £250,000 minimum limit of indemnity
o £100,001 to £200,000 = £500,000 minimum limit of indemnity
o 200,001 and above = £1,000,000 minimum limit of indemnity - Maximum level of uninsured excess
o Up to and including £500,000 = Either 2.5% of the sum insured or £10,000, whichever is greater.
o Over £500,000 limit of indemnity = 2.5% of sum insured. - PII must be obtained from an insurer that is authorized by the Financial Conduct Authority (FCA) and meets RICS’ criteria for providing such cover.
- Firms are required to make an annual declaration to RICS confirming that they have appropriate PII in place.
6
Q
What is Professional Indemnity Insurance (PII)?
A
Answer: Professional Indemnity Insurance (PII) is a type of insurance that provides coverage for professionals against claims of negligence, errors, or omissions made by clients or third parties. It is designed to protect professionals from the financial consequences of claims arising from their professional services or advice.
6
Q
What disciplinary procedures can the RICS impose?
A
Answer: RICS’s disciplinary procedures are designed to address breaches of its standards and codes of conduct effectively and fairly. The process includes investigation, hearings, and various sanctions, with a clear appeals process to ensure fairness. By enforcing these procedures, RICS aims to uphold the integrity and professionalism of its members and firms, protecting the public and maintaining high industry standards.
7
Q
What does ‘claims made’ mean in terms of PII?
A
- Type of policy typical with PII
- Covered by insurnace policy at the time of claim.
- E.G negligent design work would be covered by insurer at the time of claim and not at time of design work.
- Potentially means insurers take on past negligence of a firm.
8
Q
Is a PII excess usually paid for per claim? (Aggregation Clause)
A
Answer: In most Professional Indemnity Insurance policies, the excess is paid per claim. This means the insured must pay the specified excess amount for each individual claim made under the policy.
Aggregate clause allows multiple claims to be grouped under one excess. Benefitial to insurer as they are only liable to pay to the limit once.
8
Q
What does ‘claims made’ mean in terms of PII?
A
Answer: A “claims made” PII policy provides coverage for claims made and reported during the active policy period, regardless of when the incident occurred, provided it falls within the retroactive date.
9
Q
Is a PII excess usually paid for per claim?
A
Answer: A “claims made” PII policy provides coverage for claims made and reported during the active policy period, regardless of when the incident occurred, provided it falls within the retroactive date.
9
Q
What would you do if offered a gift?
A
If offered a gift, I consider the value and context of the gift, i.e if a contractor is trying to influence my decision. If small such as branded pens etc I would be inclined to accept, but I avoid gifts of significant value. If a gift is offered I declare to my employer and document the value, the giver and the context in the companies gift and hospitality register.
10
Q
What is run off cover?
A
Answer: Run-off cover, also known as run-off insurance, is a type of Professional Indemnity Insurance (PII) that provides continued coverage for claims made against professionals after they have ceased trading, retired, or otherwise stopped practicing.
10
Q
Gift Policy and RICS takes on gifts?
A
Answer: Rules of Conduct Rule 1 states: Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own self- interest.
11
Q
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
A
- Define the service I would offer and a scope of service for each.
- Develop a business plan.
- Register business with HMRC.
- Set up financial systems.
- Obtain professional indemnity insurance, public liability insurance and employers liability insurance (if plan to employ), building and contents insurance.
- Set up standard documents and terms of service.
- Complaints handling procedure.
11
Q
What changes did RICS recently make to the Minimum Approved PII Wording?
A
Answer: As of 1 April 2021 RICS new Minimum Policy Wording and insurance rules for professional indemnity insurance (PII) are in effect, which will allow more chartered surveying firms to obtain improved fire safety cover in their PII. The new Minimum Policy Wording and insurance rules will mean that from 1 May 2021*, PII policies will provide greater fire safety cover for chartered surveyors. Under the new rules insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis
11
Q
What RICS requirements are there relating to run off cover?
A
Answer: In the UK and Ireland, RICS requires regulated firms to have in place six years of run-off cover for consumer claims (insurers will provide £1,000,000 any one claim and in the aggregate limit automatically in the RICS Approved Minimum Wording). For non-consumer claims we require regulated firms to have ‘adequate and appropriate’ run-off cover but would expect that run-off to be maintained for a minimum of six years from the cessation of the practice.
12
Q
Can you discuss a situation where you applied the RICS Rules of Conduct to resolve a conflict of interest? What was the outcome?
A
Answer: I was involved in a project where I had a prior personal relationship with one of the contractors. Recognizing this as a potential conflict of interest, I disclosed it to my employer and removed myself from any decision-making related to the contractor. This ensured transparency and maintained the integrity of the process.
12
Q
If a client asked you to act in a way that would put you in breach of the RICS Rules of Conduct, how would you respond?
A
Answer: I would explain to the client that the requested action would violate RICS rules and could have serious consequences for both myself and the client. I would offer alternative solutions that comply with the rules, ensuring that the client’s objectives can still be met ethically and professionally.
13
Q
Imagine you are working on a project where a colleague suggests a course of action that could potentially breach one of the RICS Rules of Conduct. How would you handle this situation?
A
Answer: I would address the situation directly by discussing my concerns with the colleague, referring to the specific rule of conduct that could be breached. If the issue is not resolved, I would escalate it to a higher authority within the firm or seek guidance from RICS to ensure that the action taken aligns with professional standards.
14
Q
Suppose you discover that a firm you are working with is engaging in unethical practices. What steps would you take in accordance with the RICS Rules of Conduct?
A
Answer: I would first gather all relevant information and document the unethical practices. Then, I would raise the issue with the firm in question, giving them an opportunity to address the problem. If the practices continue, I would report the matter to RICS, following the guidelines for whistleblowing and ensuring that my actions are in line with the RICS ethical framework.
15
Q
How has the RICS online ethics training course influenced your approach to ethical decision-making in your work?
A
Answer: The RICS online ethics training course has reinforced the importance of ethical principles in every aspect of my work. It has provided me with practical tools and frameworks to identify and address ethical dilemmas, ensuring that my decisions are always aligned with RICS standards.
16
What measures do you have in place to ensure compliance with the RICS Rules of Conduct in your professional activities?
Answer: I have implemented regular ethical reviews and audits in my professional activities. This includes checking for compliance with the RICS Rules of Conduct, maintaining detailed records of decisions, and ensuring transparency in all transactions.
16
How do you ensure that you remain up-to-date with changes to RICS ethical guidelines and rules?
Answer: I regularly review RICS publications, attend CPD events, and participate in online forums and training sessions. This ensures that I am always informed about the latest changes to ethical guidelines and can apply them effectively in my work.
17
What steps do you take to promote ethical behaviour within your team or organization?
Answer: I lead by example, ensuring that I always adhere to RICS ethical standards. I also encourage open discussions about ethics within the team, provide training on ethical issues, and create an environment where team members feel comfortable raising concerns about unethical behaviour.
18
How do you assess the ethical implications of your decisions in your day-to-day work?
Answer: I use a decision-making framework that considers the impact on all stakeholders, the long-term consequences, and alignment with RICS ethical standards. I also seek advice from colleagues or RICS when faced with particularly challenging ethical decisions.
19
How would you advise a junior colleague on the importance of adhering to the RICS Rules of Conduct?
Answer: I would emphasize the long-term benefits of ethical behaviour, such as maintaining professional reputation and avoiding legal issues. I would also explain how the Rules of Conduct provide a clear guide for making difficult decisions and why it’s essential to build a career based on integrity and professionalism.
20
Can you explain how Rule 3 of the Rules of Conduct 2021 influences your approach to delivering services?
Answer: Rule 3 emphasizes the importance of providing a good-quality and diligent service. This rule guides me to be thorough and conscientious in my work, ensuring that I fully understand the client’s needs and deliver solutions that meet or exceed their expectations. It also means that I recognize the limits of my expertise and seek additional guidance when necessary to provide the best possible advice and service.
20
What steps do you take to ensure that the service you provide is of good quality and meets professional standards?
Answer: I take several steps to ensure quality, including following our company’s established quality control procedures, which involve self-checking my work and undergoing a peer review process. I also ensure that I am up-to-date with relevant regulations and standards, and I seek advice from senior professionals when dealing with complex issues. Additionally, I maintain clear and transparent communication with clients to manage their expectations and ensure that they are fully informed at every stage.
20
Why is it important for professionals working in an RICS-regulated company to adhere strictly to the Rules of Conduct?
Answer: Adherence to the RICS Rules of Conduct is crucial because it ensures that professionals maintain high standards of integrity, competence, and transparency. This not only protects the reputation of the individual and the firm but also upholds the public’s trust in the profession. It ensures that clients receive consistent and reliable service, and that the actions of professionals are in line with the ethical expectations set by RICS.
21
Imagine a client requests advice on a matter outside of your expertise, but there's pressure to respond quickly. How would you handle this situation to ensure compliance with Rule 3?
Answer: I would explain to the client that the matter falls outside my area of expertise and that, to ensure they receive the best advice, I need to consult with a senior professional or specialist. I would emphasize the importance of providing accurate and reliable advice over speed. I would then seek the necessary guidance, ensuring that the advice given is both informed and compliant with RICS standards.
22
If a peer review identified significant errors in one of your reports, how would you respond to this feedback, and what actions would you take to rectify the situation?
Answer: I would view the feedback as an opportunity for learning and improvement. I would first thoroughly review the identified errors and understand the reasons behind them. Then, I would make the necessary corrections to the report and discuss the changes with the peer reviewer to ensure they meet the required standards. Going forward, I would implement additional checks or seek further training in the areas where the errors occurred to prevent similar issues in the future.
23
Can you describe a situation where adhering to the company’s quality control procedures helped you to deliver a higher standard of service? (Feasibility study).
Answer: In a previous project, my initial report was flagged during the peer review process for potential gaps in the analysis. By revisiting the report and making the suggested revisions, I was able to provide a more comprehensive and accurate assessment to the client. This not only improved the quality of the service but also reinforced the client’s trust in our firm’s diligence and commitment to high standards.
24
Suppose a client questions a clause in your standard terms and conditions that you included in a fee proposal. How would you address their concerns while maintaining ethical and professional standards?
Answer: I would listen carefully to the client’s concerns and explain the rationale behind the clause, highlighting how it aligns with RICS standards and protects both parties. If the client’s concerns are valid, I would discuss potential adjustments or clarifications to the terms that still maintain transparency and fairness. The key is to ensure that the client feels their concerns are taken seriously while upholding the ethical and professional standards required by RICS.
25
How has working in an RICS-regulated company shaped your understanding of professionalism and ethical behavior in your role?
Answer: Working in an RICS-regulated company has ingrained in me the importance of consistently upholding ethical standards and professionalism. It has taught me the value of integrity, transparency, and accountability in all my actions. This environment has reinforced the idea that ethical behavior is not just about following rules, but about fostering trust and long-term relationships with clients and colleagues.
26
What have you learned from seeking guidance from senior professionals when faced with tasks outside your expertise? How has this impacted your professional development?
Answer: Seeking guidance from senior professionals has been invaluable in expanding my knowledge and understanding of complex issues. It has taught me the importance of humility and the willingness to learn from others. This practice has not only improved the quality of my work but has also helped me develop a network of mentors who provide ongoing support and insight, significantly contributing to my professional growth.
27
How do you ensure that your fee proposals are transparent and aligned with both client expectations and RICS standards?
Answer: I ensure transparency by clearly outlining the scope of work, the associated fees, and any exclusions in the fee proposal. I include our standard terms and conditions and discuss them with the client to ensure they understand the agreement. I also make sure that the proposal aligns with RICS standards by following best practices in fee structuring and client communication.
28
What processes do you follow to self-check your reports before they undergo peer review? How do you ensure they meet the required quality standards?
Answer: My self-checking process includes reviewing the report for accuracy, consistency, and completeness. I cross-check data and calculations, ensure that all references and sources are properly cited, and verify that the analysis aligns with the scope of work. I also review the report for clarity and readability, ensuring that it is well-structured and free of errors before it goes to peer review.
29
How would you handle a situation where a senior colleague disagrees with your assessment during the peer review process?
Answer: I would approach the situation with an open mind, seeking to understand the colleague’s perspective and reasoning. I would review the assessment in light of their feedback and engage in a constructive discussion to resolve any differences. If needed, I would consult additional resources or seek a second opinion to ensure that the final assessment is accurate and aligns with professional standards.
30
Why is it important to maintain transparency with clients regarding the scope of service and any exclusions? How do you ensure this in your practice?
Answer: Transparency is crucial because it manages client expectations, reduces the risk of misunderstandings, and builds trust. By clearly defining the scope of service and any exclusions upfront, clients can make informed decisions and are less likely to feel misled. In my practice, I ensure transparency by clearly communicating these details in writing, discussing them with the client, and confirming their understanding before proceeding.
31
Can you provide an example of a time when upholding RICS ethical standards led to a positive outcome for a client or project? (Client expedited service)
Answer: In one instance, a client requested an expedited service that would have compromised the quality and thoroughness of my work. By upholding RICS ethical standards, I explained the importance of maintaining due diligence and the potential risks of cutting corners. The client ultimately agreed to a more realistic timeline, which led to a well-executed project with accurate results. This not only safeguarded my professional integrity but also resulted in a satisfied client who appreciated the value of a job well done.
32
Why is it important to follow the rules and guidelines regarding tender submissions, even if a late submission offers potential financial benefits?
Answer: Following the rules and guidelines for tender submissions ensures fairness, transparency, and integrity in the procurement process. Allowing a late tender would undermine these principles, potentially creating an uneven playing field for other bidders and exposing the process to legal challenges or reputational damage. It’s essential to uphold these standards to maintain trust and avoid any perception of favoritism or bias.
33
How do you balance the need for diligence with the commercial pressures of delivering services efficiently and on time?
Answer: Balancing diligence with efficiency requires careful planning and prioritization. I manage my time effectively by breaking down tasks, setting realistic deadlines, and allocating resources where needed. I also communicate clearly with clients about timelines and any potential constraints. This approach allows me to maintain high standards of quality while meeting commercial expectations.
34
Can you explain the ethical considerations involved when advising a client to dismiss a non-compliant tender submission?
Answer: Ethical considerations include upholding fairness, transparency, and adherence to established procedures. Advising the client to dismiss a non-compliant tender protects the integrity of the process and ensures that all bidders are treated equally. It also prevents any potential conflicts of interest and aligns with professional obligations to act in the best interest of the client while maintaining ethical standards.
35
Suppose a client pressures you to include the late tender in your evaluation. How would you handle this situation to ensure you remain compliant with RICS ethical guidelines?
Answer: I would firmly but diplomatically explain that including the late tender would breach the established tendering process and contravene RICS ethical guidelines. I would suggest alternative options, such as re-opening the tender process if feasible, to maintain fairness. If the client insisted, I would document my objection in writing and seek further guidance from senior colleagues or RICS to ensure that I maintain my professional and ethical responsibilities. Check with contractor for reason why late.
35
How do you determine the limits of your professional competence, and why is it important to communicate these limits to clients?
Answer: Determining the limits of my professional competence involves understanding my qualifications, experience, and the scope of work I am capable of handling. It’s important to communicate these limits to clients to ensure that they receive accurate and reliable advice. Doing so also helps manage expectations, prevents the risk of errors, and ensures that specialists are engaged where necessary to provide the best possible outcomes for the project.
36
In the situation where the client wanted to proceed with the late tender despite your advice, how did you manage this conflict between the client's wishes and the ethical standards you are required to uphold?
Answer: I managed this conflict by reiterating the importance of following the tender process and the risks associated with accepting a late submission, such as potential challenges from other bidders or reputational damage. I emphasized that while the client might see financial benefits, these must be weighed against the need for fairness and compliance. Ultimately, I would document my advice and ensure that the final decision was clearly recorded as being made by the client, with a note of my professional recommendation.
37
If a similar situation occurred again, where a client wanted to consider a late tender submission, what steps would you take to reinforce the importance of adhering to the tender process?
Answer: I would reinforce the importance of adhering to the tender process by explaining the implications of non-compliance, including the potential for legal challenges and damage to the project’s credibility. I would provide the client with a clear understanding of the tender rules and the rationale behind them, emphasizing that maintaining a fair and transparent process is essential for protecting the interests of all parties involved.
37
What lessons have you learned from advising clients about the importance of compliance and the consequences of not adhering to established procedures?
Answer: I have learned that clear and early communication with clients about the importance of compliance is crucial. It’s essential to set expectations from the outset and to be firm in advising clients about the potential risks and consequences of non-compliance. This experience has taught me the value of maintaining professional integrity and the importance of standing by ethical principles, even when it may not align with the client’s immediate interests.
37
How has your experience with the commercial office refurbishment project influenced your approach to handling tender processes in the future?
Answer: The experience reinforced the importance of strict adherence to tender processes and the need for clear communication with clients about the implications of non-compliance. It has made me more vigilant in ensuring that all submissions meet the required standards and deadlines, and has strengthened my resolve to uphold ethical standards even in the face of client pressure.
37
During the PPM inspection, if the client insisted that you report on the mechanical and electrical elements despite your lack of expertise, how would you address this request?
Answer: I would respectfully decline the request, explaining that providing advice on mechanical and electrical elements without the necessary expertise could lead to inaccurate or incomplete information, which would not serve the client’s best interests. I would recommend engaging a qualified specialist and offer to coordinate with them to ensure the client receives comprehensive and accurate reporting on all aspects of the property.
38
What procedures do you follow to ensure that all tender submissions are compliant and within the prescribed deadlines?
Answer: I follow a strict process for managing tender submissions, including clear communication of deadlines to all bidders, thorough documentation of submission times, and a checklist to ensure that all submissions meet the required criteria. I also review the submissions against the tender requirements to confirm compliance before they are considered for evaluation.
38
How do you ensure that your clients understand and respect the importance of adhering to the tender process and other contractual obligations?
Answer: I ensure that clients understand and respect the tender process by clearly explaining the rules and their importance at the outset. I provide written guidelines and emphasize the legal and ethical implications of non-compliance. Regular communication throughout the process also helps to reinforce these points and ensure that clients are fully aware of their obligations.
38
When faced with tasks outside your expertise, how do you ensure that the client’s needs are still met while maintaining ethical and professional standards?
Answer: When faced with tasks outside my expertise, I ensure the client’s needs are met by advising them to engage a specialist who is qualified in that area. I facilitate this process by recommending reputable professionals or coordinating with the specialist to ensure a seamless service. This approach maintains ethical standards while ensuring that the client receives accurate and professional advice.
38
Can you provide an example of how upholding ethical standards during the tender evaluation process benefits both the client and the overall project?
Answer: Upholding ethical standards ensures a fair and transparent tender process, which benefits the client by mitigating the risk of legal challenges and ensuring that the selected contractor is chosen based on merit. This not only strengthens the project’s credibility but also ensures that the client receives value for money and that all parties are treated equitably. For example, by rejecting the late tender in the commercial refurbishment project, the process remained fair, and the client ultimately selected a compliant contractor who delivered quality work within the agreed terms.
38
How do you balance the need to meet client expectations with the obligation to adhere to RICS ethical guidelines, especially when they may be in conflict?
Answer: Balancing client expectations with ethical obligations involves clear communication and setting expectations from the start. I explain the importance of adhering to RICS guidelines and how these standards protect both the client and the integrity of the project. When conflicts arise, I provide alternative solutions that meet the client’s needs while staying within ethical boundaries, and I document all decisions to ensure transparency and accountability.
38
How did you deal with the late tender?
Answer:
- I asked for a reason the tender was late, which was down to an administrative error in this case. I was inclined to believe the contractor on this occasion because they previously have returned tenders on time and in accordance with the tender letter.
- I evaluated the impact the delay had on the tender and determined that there was no impact, as the tender was received the following day.
- Once reviewed I reviewed all tenders (completing a tendering opening form). The late tender was the cheapest and most advantageous in terms of programme. I spoke with the client to inform them and get their view on this.
- Thye confirmed to accept the late tender, which I did and recorded the conversation via email.
- I informed the contractor that their late tender could have cost them the job, but the validity of their reasoning made this okay.
38
What strategies do you use to manage client expectations when they request services or advice that are outside your area of expertise?
Answer: To manage client expectations, I am upfront about my areas of expertise and limitations. I explain the value of engaging specialists for certain aspects of a project and ensure the client understands the benefits of this approach in terms of accuracy, safety, and compliance. I also provide support by coordinating with specialists and ensuring that all parties are aligned in delivering a comprehensive service to the client.
38
Was it ethical to consider the late tender?
Answer: I determined that the late tender did not affect the fairness of the tendering process. The following day after the deadline I consulted with the contractor to establish where the tender was. I had not opened any of the competing tenders so could not confirm any costs. The contractor confirmed that the tender was complete, and did not know the reason for delay blaming an administrative error. The contractor sent the tender over around 30 minutes after, suggesting the tender had been complete but just hadn’t been sent over due to an administrative error.
39
How did you advise within your scope of expertise for the PPM?
Answer:
- I advised on my limitations prior to the survey
- I have a basic understanding of M&E such as, HVAC systems, lighting and electrical etc.
- I would assess any existing documentation and previous reports, if available.
- Conduct a visual inspection for obvious defects.
40
How did you incorporate the M&E advice into your report?
- I undertook a basic assessment of the systems in place, but did not provide any remedial advice (if required). A specialist consultant inspected the property and their report was appended to my report. I paid reference to their report and also incopropated their signature onto the signed and agreed page.
41
Give me an example of when you have acted with integrity? (contractor valuation with unagreed variations).
Answer: During a commercial development, the contractor submitted a valuation with additional works that had not been agreed following the proper principles such as a contract instruction, which made up a small part of the valuation. The contractor insisted that the works were required and that I should approve the payment request and issue a CFP. The contractor insisted that I could trust them because they have done previous jobs like this in the past and have a close working relationship with my firm. I knew that an issue like this may affect future work and the relationship with the contractor. I informed the client about the situation and recommended a thorough review of the additional work claimed by the subcontractor. This involved evaluating the necessity of the extra work, negotiating fair pricing, and ensuring all changes were formally documented and agreed upon by all parties. As I was acting as CA on this role, there had been separate emails regarding the works, but none of the costs had been confirmed. Once agreed I issued a CFP for the works. By insisting on following the proper procedures, I upheld the principles of fairness and transparency, preventing potential disputes and ensuring that the client was only paying for work that was genuinely needed and properly authorized. This approach reinforced my reputation for integrity and diligence in contract administration.
42
Tell me about when you have provided a high standard of service. (Enterprise Rotherham).
Answer: An example of high standard of service is Enterprise Rotherham, I knew the client needed to remain open and as such devised a suitable plan for doing so.
- I understood the clients needs and the need to remain open and also managed their expectations that it would be hard for them to operate at full capacity.
- I planned by providing drawings for each phase.
- I provided regular communication with the branch staff, the client and the contractor to ensure everything was as per the phasing agreement.
- I implemented a rigorous quality control process, conducting regular site inspections to ensure that all work met the high standards expected by the client.
- At the project’s completion, I conducted a thorough walkthrough with the client to ensure all aspects of the refurbishment met their expectations.
43
Tell me about how you have promoted trust in the profession. (Wash bay cladding silverlink).
Answer: During a routine site inspection with the client I noticed that the wash bay internal lining panel was not metal and flexed when touched, which was not as specified. Following a meeting with the contractor it was determined to be a uPVC lining, which was not as specified. I communicated my findings in a transparent way with the client and contractor, being unbiased. As the material was inferior to a metal liner panel, but was still suitable for use, I requested the contractor provide a cost saving for the client to consider as opposed to replacing immediately (facilitating a fair resolution). The client accepted the cost saving and the contractor offered to install steel brackets to facilitate anything that was to be installed to the wall as the uPVC was too flimsy. I promoted trust in the profession by spotting the initial different material and encouraged open and transparent conversations to arrive at a suitable resolution.
44
Explain how you have taken responsibility in your current role. Rotherham gutter
Answer: Around 3 months after the PC at Rotherham, there were reports of a leak within the manager office. As my office is local, I visited site with the drone, given the location of the leak I suspected it was to do with the gutters. The drone picked up details showing that the plygiene gutter lining had a small snag/tear in it, which I deemed the reason, this was evidenced when a ceiling tile was lifted and water was dripping from the gutter. I requested that a specialist visit with a MEWP to confirm that the lining was to blame, which they did. I then arranged for them to provide a quote to reline the gutter. I advised the client that this would not be part of the defects liability period as the contractor had not undertaken any works to the gutter lining. I took responsibility by visiting site, arranging specialist inspection and thus the works.
45
Tell me about how you treat clients with respect.
Answer: By treating the client with respect and prioritizing their needs and concerns, I was able to build a strong working relationship and deliver a successful project that met their expectations. The client appreciated the personalized approach and the effort made to minimize disruption to their business operations. As a result, they expressed high satisfaction with the project and continued to engage our services for future work.
46
Tell me about how you would handle a client complaint.
- Speak to my director regarding the complaint.
- Respond promptly to the complaint.
- Collate evidence to assess if the complaint is valid.
- If valid devise a remedy (financial or meeting)
- Communicate with the complainant.
47
Tell me about your understanding of your firm's process for escalating a complaint to Alternative Dispute Resolution (ADR).
Answer: If the complaint remains unresolved after internal review, the firm should inform the complainant of their right to escalate the matter to ADR. This is typically done in writing.
- Mediation: A neutral third party helps facilitate a resolution by assisting both parties in reaching a mutually agreeable solution.
- Arbitration: A neutral third party makes a binding decision after reviewing evidence and hearing both sides.
- Adjudication: A more formal process where a neutral party makes a binding decision based on the evidence presented.
48
Explain your understanding of the RICS Levitt review.
Answer: The RICS Levitt Review was an important initiative aimed at evaluating and improving the governance, engagement, and regulatory practices of the Royal Institution of Chartered Surveyors. The review identified areas for improvement and made recommendations to enhance the effectiveness, transparency, and inclusivity of RICS.
49
What are the six RICS values published as a result of the Levitt review?
Answer:
- Integrity
- Respect
- Transparency
- Responsibility
- Competence
- Trust
50
Recommendations from Levitt review?
18 recommendations, eg:
Amount of board meetings.
Key values.
overhaul of whistleblowing.
51
What is your companies complaint handling procedure?
- Ensure complaint is in writing.
- Contact within 7 days to inform complainant of our understanding.
- Invite comments.
- within 21 days of final written summary, inform of outcome and actions.
- Dissatisfied? negotiate or inform they can take complain to an independent redress provider.
52
What does a firm need to become RICS registered?
- Offer professional services in the surveying discipline.
- 25% of senior managers, directors, owners qualified RICS professionals.
- Agree to comply with RICS rules of conduct for firms.
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what are some rules of conduct for firms.
RICS Rules of Conduct for firms, 25 April 2017.
- Professional behaviour - firm shall act with integrity (avoid conflicts)
- Competence - Firm shall carry out work with due care.
- CPD - Have systems in place to ensure CPD requirements are met.
- Complaints handling - Have complaints handling procedure, with ADR approved by RICS.
- Clients Money - security of clients money.
54
What does the JCT Practice Note 2017 say about late tenders?
Paragraph 56 says that tenders can be extended as stated in the tender letter, but tenders received out of time should not be considered.
55
What would you include in a tender letter?
- Project over view.
- Clearly state how the tender is to be submitted.
- Give a clear time for the tender should be submitted date and time.
- Explain late tenders will be discounted.
- Pre bid meeting or site visit time.
56
How would the RICS Ethical standards guide your approach to the late tender
- Act with integrity, act in a way that promotes trust.
- Adhering with these and acting with integrity, honesty and fairness I would have to advise to reject the tender.
57
Why do you want to become a member of RICS?
- Globally recognised mark of professionalism and integrity in the surveying industry.
- Opens up opportunities for career progression.
- Ethical standards.
58
What is the role of RICS?
- Setting professional standards, enforces high standards, professionalism, ethics and competence to members.
- Regulates the profession by overseeing conduct and disciplinary procedures.
- Provide education and training.
- RICS conduct research and publish reports.
59
Who is the current RICS president?
Tina Paillet FRICS
60
In what circumstances can disciplinary procedures be issued?
- Professional Misconduct – misleading clients, falsifying reports
- Breaches of confidentiality – Sharing data for personal gain
- Conflicts of Interest – personal interest compromises professional impartiality
- Negligence – Providing inaccurate advice
- Unprofessional behaviour – inappropriate conduct.
61
If you were offered a cash payment of £12,000 would you accept?
- Company don’t accept cash payment.
- However anything over 10,000 euros must be reported to authorities.
- If a business receives cash payments of 10,000 or more it may need to be registered with HMRC as a high value dealer.
62
What is a bribe?
A bribe is a financial or non-financial inducement offered, promised, or given to someone with the intention of influencing their behaviour or decision-making in a way that is improper or unethical. An example would be a contractor offering me a cash payment to overlook certain defects. Or a contractor giving a gift or favour to put them in a better light in upcoming tenders.
63
What are the penalties for accepting a bribe?
Individuals convicted of accepting a bribe can face substantial prison sentences. For example, under the UK Bribery Act 2010, individuals convicted of bribery offenses can face up to 10 years in prison.
64
What are the penalties for being involved in money laundering?
individuals convicted of money laundering offenses can face up to 14 years in prison. Convicted individuals can face unlimited fines.
65
In a negligence claim, what would help to show that you acted with consideration and due process?
Maintain thorough and accurate records of all communications, decisions, actions taken, and the reasoning behind those actions. This includes meeting notes, emails, reports, and other relevant documents. Conduct and document risk assessments to identify and mitigate potential issues. Show that you considered and addressed foreseeable risks.
66
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
- Review insurance documents and assess if this service is included.
- Contact insurer and request a change and be prepared to pay a premium
- Get confirmation in writing that the policy has been amended to suit.
- Conduct a new risk assessment of this service to identify possible liabilities.
67
What is the difference between signing a contract as a deed or underhand?
- The limitation period for bringing a claim for breach of contract is 6 years under hand and 12 years when signed as a deed.
- Underhand requires simple signature, a deed requires a director and witness.
68
What is the Assigned Risks Pool (ARP)?
The Assigned Risks Pool (ARP) is a scheme designed to provide Professional Indemnity Insurance (PII) coverage to professionals who are unable to obtain insurance through the normal market channels. This often applies to high-risk professions or those who have difficulty finding coverage due to their claims history or other factors. An example is a surveyor with a series of PII claims against them.
69
Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition). April 2021
provides comprehensive guidance on managing professional risk, liability, and insurance requirements for RICS members and firms. This standard is designed to help members understand and manage their professional risks, ensure adequate insurance coverage, and handle liabilities effectively.
- Risk management, best practice for managing risks and on going training of staff to reduce the likelihood.
- Professional liability, how to handle claims, disputes and complaints effectively.
- Insurance requirements
- Claims handling , timely reporting and co operation with insurers, highlights the need for good record keeping.
70
What RICS guidance relates to handling client money?
RICS Client Money Handling January 2020
71
What do the RICS Rules of Conduct say about client money?
- Firms must hold client money in designated client accounts, which are separate from the firm's business accounts. These accounts should be used exclusively for client funds.
- Clients must be informed about how their money will be handled and any potential risks associated with its management.
72
What is whistleblowing?
Whistleblowing is the act of reporting or disclosing information about illegal, unethical, or improper conduct within an organization. This conduct could involve violations of laws, regulations, company policies, or ethical standards.
73
# Dilaps, agent contact
Tell me about how you treat other surveyors with respect.
When working on a dilapidations refurb for the outgoing tenant I ensured to keep regular communication with the agent surveyor. This was to ensure everything was as per their requests and there were no changed needed following completion of the works. I ensured frequent communication and arranged site visits to ensure the continuous suitability of the works and that they met their needs.
74
What would you do if you were asked by a client to reduce a fee proposal to win new work?
It is important to retain integrity and ensure the client understands the value of the service I would be providing. Reducing fees to win works can mock the profession. I would re-affirm the time that has been allocated to undertake the project as well as ensure they understand everything that is covered in the fee. I would suggest a reduced fee with a reduced scope of service to match.
75
# Rule 1 act eith integrity and honesty
Give an example of one Rule that you comply with every day?
- Rule number one, act with integrity.
- As a professional this means I consistently act fairly, honestly and in the best interest of my client and wider public.
- Provide clients with honest advice.
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What is included in Appendix A (Professional Obligations) in the New Rules of Conduct
- Must comply with CPD requirements.
- Co operate with RICS
- Provide information requested by the standards and regulations board.
- FIRMS
- Must establish complaints handling procedure.
- PII insurance
- Appropriate arrangement for death or injuries for firms with a sole principal.
- Co operate with RICS
- Display in accordance with RICS on literature.
77
How would you protect your client’s interests if you decided to give up practice?
- Give clients sufficient notice, this allows them enough time to make alternate arrangements.
- Assist client to find another qualified surveyor to take on the project.
- Aim to complete outstanding work.
- Ensure clients data is archived and make sure no sensitive data is lost during this process.
- Run off cover.
- Notify relevant parties.
78
How would you determine the time period that run off cover would need to be provided?
- Limitation ACT 1980
- 6 Years Under hand and 12 years as a deed.
- Ensure that run off cover lasts this period at least, depending on type of contract.
- RICS recommend 6-12 years.
79
With regards to client's money, how should you name the bank account you are required to set up for this purpose?
- Ensure the name has the word client in to prevent confusion.
- State the reason for the account such as paying for a service.
80
How would you advise your client to give assurance as to how you were going to hold their money, so that it would be securely kept and accounted for?
- Explain the use of a separate account. Provide information of the separate account.
- Ensure them that I comply with clients money handling 2020.
o Clients money is kept safe.
o Clients money is used for appropriate purposes only.
o Appropriate procedures to protect clients money.
81
Why do we ring-fence Clients’ Money placed in our trust?
- Segregation of funds – kept separate so is not mistakenly used by company.
- Protects money in the event of insolvency.
- Builds clients trust.
82
What would be your approach of the client wished to pay you in advance for your services?
- Set up a client trust account – Deposit advanced payment into this account to keep these funds separate from the business funds. Name the account suitably.
- Issue formal receipt – confirm amount received, date, and a reference to say the service covered.
- Specify how the advanced payment will be used. Eg if part is for a certain phase highlight the amount for that phase and works in that phase.
- Clearly communicate refund policy if there is a change in scope.
83
What would happen if your employer’s rules conflicted with the RICS rules? Which takes precedence?
- Example scenario – Company requests me to do something against RICS rules of conduct, consult RICS if the issue is significant, discuss with employer, seek a solution that aligns with both company and rics, document your actions.
84
Can you explain the process for safeguarding clients’ interests in the event of death or prolonged illness of a sole trader Chartered Surveyor?
- Establish a succession plan – plan outlining how clients interests are protected in the event of death or prolonged illness. Plan will detail who will take over responsibility and how your practice will be managed.
- Establish a fellow professional who can step in to manage client matters, ensure this person knows their responsibilities.
- Maintain records to aid with transfer.
- Ensure insurance provides run off cover in the event of death. Inform insurer about your succession plan.
85
When does a firm have to register with the RICS?
- Offering surveying services to third parties.
- At least 50% of staff are RICS members.
86
What is a Locum employed for?
- A locum is a person who temporally fills a position or provides a service in the absence of a regular employee.
- Temporary coverage.
- Specialist expertise for a certain project.
- Transition periods between staff etc,
87
Explain the current CPD requirements for members, don’t forget the Ethics refresher
- 10 hours formal, 10 hours in formal, ethics course every 3 years.
88
Discuss a relevant third-party redress mechanism and their role?
- Ombudsman or an adjudicator service.
- Provide a crucial role in resolving disputes between clients and professionals.
- The property ombudsman resolves disputes by reviewing evidence and facts presented.
- TPO investigates complaints to assess if the service was in line with professional standards.
- Ombudsman will make a decision and could award financial compensation, corrective actions, recommendations are not legally binding but would reflect badly if a firm was to go against this.
- TPO helps protect consumer rights.
89
If a friend asked you for an opinion on a project they were considering carrying out what advice would you give them?
- I would advise that there is a liability risk, as an individual acting under an instruction outside of the business I do not have professional indemnity insurance. If something went wrong I could be sued.
- As an RICS member I have a duty of care to the client and taking on work without PII, this would breach conduct.
- Advise them to get I touch with my company and arrange a proper fee for the professional service.
- Charging a fee would recognise the professional service I am offering.
- For PII to be in place there needs to be a formal agreement and T&C in place, which usually includes a fee that could be subsidised.
90
What would you advise if a client approached you and asked if you would work for them directly instead of your employer to reduce their cost?
- Important to be loyal with employer, particularly if the client was introduced through them. Integrity and honesty.
- Working for the client directly would mean I am not covered by PII.
- Advise on advantages of working with company:
o Insurance and expertise.
o Structured service offering quality control.
o Cost saving may not outweigh the risks of these.
91
Ensure that you are familiar with the Money Laundering Regulations 2017?
- Designed to combat money laundering and financing of terrorism
- Things to be aware of as a building surveyor:
o Suspicious clients – Refusing to verify identity, attempting to expedite process for increased fees.
o Large cash payments – red flag for money laundering, consider filing a suspicious activity report.
o Complex ownership structures – Companies that use off shore entities or trusts, these can obscure the true ownership of the asset.
o Penalties include fine, criminal prosecution and reputational damage.
92
Ensure that you are familiar with the UK Bribery Act 2010?
- One of the most stringent anti-corruption laws and applies to individuals and businesses.
- Addresses prevention, detection and prosecution of bribery.
- Things to be aware of a building surveyor:
o Gifts and hospitality – Carefully consider gifts and their reason, gifts of certain value or at certain times could be considered a bribe – Ensure gifts are documented.
o Third party relationships – Be aware of that your company can be accountable for actions of third parties such as roofing contractors and roofing suppliers. Perform due diligence on suppliers and their relationships.
o Risk assessments and due diligence on new clients, sub-contractors and suppliers.
o Adequate procedures – Anti bribery policy and training.
o Conflicts of interest – if you have a personal relationship with a company you are working with, you must disclose this. Could create a perception of bribery.
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What is in your anti bribery policy?
- Definition of bribery: cash payments, gifts beyond reasonable entertainment, favours.
- Prohibited conduct: Offering or accepting bribes, not allow third party to engage in bribery.
- Gifts and hospitality – reasonable and proportionate gifts allowed. Examples of gifts, modest promotional items, business meals or token gifts at holidays. Employees must seek approval for gifts over the value of £20. All gifts must be logged in the companies gift and hospitality register.
- Every employee is responsible.
- Employees must report any suspected bribery.
- Accurate record keeping.
94
What RICS guidance relates to money laundering and bribery?
- **Countering bribery, corruption, money laundering and terrorist financing 2019**
- Provides clear guidance on how to prevent, detect and respond to these. Outlines mandatory requirements and best practice to ensure compliance.
- Act with integrity – avoid bribery, corruption, money laundering.
- All members and firms must comply with UK Bribery Act 2010 and money laundering regulations 2017.
- Zero tolerance to bribery and corruption.
- Follow clear policies when offered gifts.
- Firms must implement procedures.
- Disciplinary action.
95
Why might a client request you to take a higher Professional Indemnity Policy?
- Higher risk works such as higher contract value. Potential risks and liability increase.
- Greater risk exposure such as projects that pose a particular H&S risk.
- Large corporations undertake risk assessments and may require higher PI from all consultants.
96
What is the VAT threshold in the UK
- £85,000
- If a business taxable turnover is greater in a 12 month period it is required to register for VAT with HMRC.
97
What is the difference between acts and regulations?
- Acts - highest form of primary legislation. Once passed acts become binding and must be followed
- Regulations - Provide specific details to meet acts. (minimum)
- British standards provide best practise as opposed to minimum.
98
Can you provide examples of acts and legislation?
- CDM aims to meet Health and Safety at Work act 1974.
- Building regulations 2010 and Building act 1984
