Ethics Q&A Version 2

Question 1

What is the role of the RICS?

Answer 1

The regulatory body for Property, Construction and Land.

Maintain highest standards of education and training

Protect consumers through strict regulation of professional standards

Be the leading source of information and independent advice

Question 2

What is the difference between Level 1 and 2 and level 3?

Answer 2

Level 1 - knowledge and understanding. (Learning) Level 2 – application of knowledge. (Doing) Level 3 – (Advising)

Question 3

Difference between informal and formal CPD?

Answer 3

Formal CPD involves participating in structured activities, e.g. courses, seminars and workshops. Informal CPD involves activities undertaken by the individual, like experiential/workplace learning, reading and research.

Question 4

What is the Annual CPD Requirements?

Answer 4

Minimum 48 hours every 12 months - APC Candidates Qualified – 20 Hours and at least 10 hours formal (ethics CPD every 3 years) Recorded on RICS CPD Management System

Question 5

Why is it important for RICS members to undertake CPD?

Answer 5

One of the Rules of Conduct (Rule 2 ) Professional Obligations Appendix A in Rules of Conduct Means we can continue to offer the best service possible to clients by being up to date and in the know on latest guidance and information.

Question 6

Who is the RICS ultimately accountable to?

Answer 6

The Public

Question 7

What are the Rules of Conduct 2021 effective Feb 2022?

Answer 7

A set of rules for both members and firms. Clear examples and behaviours for each rule. They are based on ethical principles

Question 8

What is rule 1- RICS Rules of Conduct 2021?

Answer 8

Members and Firms must Be HONEST and act with INTEGRITY and comply with their professional obligations including obligations to the RICS

Question 9

What is Rule One - RICS Rules of Conduct 2021?

Answer 9

Members and Firms must Be HONEST and act with INTEGRITY and comply with their professional obligations including obligations to the RICS

Question 10

What is Rule Two - RICS Rules of Conduct 2021?

Answer 10

Maintain PROFESSIONAL COMPETENCY and ensure services are provided by COMPETENT INDIVIDUALS who have the NECESSARY EXPERTISE

Question 11

What is Rule Three - RICS Rules of Conduct 2021?

Answer 11

Members and Firms must provide GOOD QUALITY and DILIGENT Service

Question 12

What is Rule Four - RICS Rules of Conduct 2021?

Answer 12

Treat others with RESPECT and encourage DIVERSITY AND INCLUSION

Question 13

What is Rule Five - RICS Rules of Conduct 2021?

Answer 13

Act in the PUBLIC INTEREST and take RESPONSIBILITY for their action, act to prevent harm and maintain public confidence in the profession

Question 14

Appendix A to the Rules of Conducts sets out “professional obligations” which are to be followed by members and regulated firms. What are they?

Answer 14

RICS Members:
Comply with CPD Requirements
Cooperate with RICS Promptly provide all information requested by Standards and Regulation Board RICS

Regulated Firms:
Publish complaints handling procedure maintain a complaints log
PII cover
If having a sole principal, make sure appropriate arrangements are made if unable to continue working
Promptly provide all information requested by Standards and Regulation Board

Question 15

Why did RICS introduce the new Rules of Conduct 2021?

Answer 15

Simpler structure – providing more confidence for clients and public Focusing on diversity and inclusion underpins professional ethics

Question 16

How does your firm demonstrate implementation of the Rules of Conduct?

Answer 16

My firm is not a chartered practice.

Question 17

How do you demonstrate implementation of the Rules of Conduct?

Answer 17

I always assess my competence prior to undertaking instructions. I comply with the CPD requirements (as per professional obligations) I provide a high level of service and client care.

Question 18

Give me an example where you have shown integrity?

Answer 18

I politely declined an invitation to a hospitality event, which was received by a contractor tendering for a substantial contract. Given the close proximity to the tender dead line I decided accepting the invite may have been perceived to be undue influence. When conducting a tender process.

I ensure any additional information is circulated to all parties to ensure everyone is acting on a level playing field. I do not provide details of one tender submission to another tendering party.

Question 19

What are the RICS CPD requirements once qualified?

Answer 19

MRICS – 20 hours (at least 10 formal) (Student is 48 hours)

Question 20

What does it mean to be a professional?

Answer 20

Always carry out good quality work, act with integerty and consider the public interest and uphold the RICS Professional Standards when carrying out work.

Being recognised member will provide confidence to my client of my professionality.

Question 21

Give me an example where you have provided a high standard of service?

Answer 21

Once tenders have been received for a works package I will analyse and summarise in a table to make it easier to review and present my findings to the Head of Department. I will then follow up with a tender report summarising my opinion of the strength and weaknesses of the tenders received, with a recommendation allowing the board to make an informed decision.

When working on a design and build project for a housing association client I have identified discrepancies within the employers’ requirements which do not align with client wider brief and goals for the site, in this instance I have scheduled a meeting to discuss and proposed alternative approaches which better meet their needs or ambitions. A recent example of this was a finishing specification, which contained a number of rather dated requirements, which I did not feel would align with their goals for the project, these items were omitted and replaced with alternative specification upgrades.

Question 22

How do you promote trust in the profession?

Answer 22

Throughout my work, where applicable I look to utilise the RICS Black Book and follow best practice to ensure I provide professional advice to my board. I uphold the RICS Global Professional and Ethical Standards in both my public and private life. If I am faced with an ethical challenge, I will think of the consequence of my decision on others, using the RICS decision making tree and seeking guidance to ensure I act in public interest.

Question 23

Where have you taken responsibility?

Answer 23

If I make a mistake, I take responsibility for this and promptly address it, I ensure to make sure my head of department aware of the mistake and appropriate measures taken. I always act with skill, care and diligence.

An example of this is an advice note I had prepared which had confused the parties in one paragraph, upon becoming aware I immediately revised and re issued to the distribution.

When working with external Clients, I ensure they are aware of my Company’s Complaints Handling Procedure and provided with the contact details of my Head of Department. If I receive a compliant, I will ensure it is dealt with professionally and appropriately

Question 24

How do you treat others with respect?

Answer 24

I do not discriminate and actively work on minimising my unconscious bias. I have recently undertaken online unconscious bias awareness training to recognise any unconscious bias I might have and how to better ensure this does not influence my actions/decisions.

Example:
A Sub-Contractor telephone called me, very angry regarding a matter that had occurred onsite. Regardless of what he said to me, I remained calm and polite and treated him with respect and advised I would look into it and come back to him shortly.

Question 25

How do you promote the profession - For your firm?

Answer 25

Engage in local community with careers fares to encourage young people to have an interest in property development.

Question 26

What is the RICS Decision Making Tree?

Answer 26

Provides a framework of questions which members should ask themselves when they are asked to act in a potentially unethical manner. It encourages consistency with the rules of conduct. For example: Is it Legal? Do I have all the facts? Would I be comfortable if this was released into the public eye?

Question 27

Tell me about the RICS Professional Standard ‘Conflicts of Interest’ 2017?

Answer 27

Effective 2018 Mandatory rules which do not allow any Member to provide Client advice or represent a client where there is a conflict or a serious potential for one.

Discusses avoiding conflicts and the management of conflict where a member can continue despite there being a conflict (whilst still being independent and impartial and in client’s best interest)

Lays out the three types of conflict – party, own interest & confidential information

Provides information regarding prior informed consent and information barriers

Question 28

What is a bribe?

Answer 28

4 offence defined in the Bribery Act 210 The giving, offering, promising or receiving of an advantage such as payment for an action

Question 29

Tell me about the Bribery Act 2010?

Answer 29

4 Offences: (1) to bribe, (2) receive a bribe, (3) bribe a foreign public official or (4) failure to prevent a bribe 6 principles: Proportionality, Top level commitment, Risk Assessment, Due Diligence, Communication and Monitoring and Review. Ensures adequate procedures are in place with correct monitoring and risk assessment. Staff training, provision of clear policies and regular reviews. Not all gifts are deemed to be bribes – its whether they are REASONABLE and PROPORTIONATE. All gifts would need to be recorded on a gift register Max 10 year’s imprisonment or unlimited fine Policed by serious fraud office

Question 30

What are the 6 principles of the Bribery Act 2010 companies should put in place?

Answer 30

• Proportionality
• Top-level commitment
• Risk assessment
• Due diligence
• Communication
• Monitoring
• Review

Question 31

Name two key components of legislation that relate to gifts, bribery and corruption?

Answer 31

• Bribery Act 2010
• Proceeds of Crime Act 2002

Question 32

What does the Serious Fraud Office do?

Answer 32

They police the Bribery Act 2010.

Question 33

What are the penalties of the Bribery Act 2010?

Answer 33

Maximum 10 years in prison and /or unlimited fine

Question 34

What are your company’s gifts and hospitality rules?

Answer 34

Limits: Receipt of gifts up to £150 Receipt of hospitality up to £250

Must not give or received during tender process

Would record in gift register Complete gift register where receive over these limits and receive approval for manager

If unable to return gift/rude donate gift in charity raffle

Question 35

Limits on gift register?

Answer 35

Cannot be more than £540 in a singular year from the same firm.

I would consider what was proportional, however subject to the circumstances.

Question 36

What would you do if you were offered a dinner at a Michelin Restaurant?

Answer 36

Depends on the proportionality, timing and how lavish.
If I were invited by a client who I completed a high value design and build project for successfully I might accept, however if I was invited by a client during a project or during a bid, I wouldn’t.

In any case I would also need to gain approval in line with company policy.

Question 37

Have you ever received a gift?

Answer 37

I have not received a gift. However, I am aware the my firms gifts and hospitality rules.

My firm implements a charity raffle for any christmas gifts and hampers to ensure they are shared across the whole firm.

This would then be recorded on the gift register

Question 38

What would you do if you were offered a gift by a contractor working for you?

Answer 38

I would politely decline.

Question 39

What is Money laundering?

Answer 39

The process by which the proceeds of crime are converted into legitimate funds e.g. buying property with the proceeds, which are then ‘cleaned’ when the property is sold.

Question 40

What would you do if you suspect something suspicious?

In the context of money laundering.

Answer 40

I would inform my Company’s in-house legal team (Alexandra Barker – Group Company Secretary), who would submit a Suspicious Activity Report to the National Crime Agency.

Question 41

Proceeds of Crime Act 2002

Answer 41

Offences: Concealing criminal property, making arrangements with criminal property, acquisition, use and possession of criminal property, failure to disclose and tipping off (5 offences)

Max 14 year’s imprisonment & unlimited fine if assist Max 5 year’s imprisonment & unlimited fine if tip off or fail to report

Question 42

What are the requirements of the RICS when setting up a new firm?

Answer 42

• Contact the RICS for guidance and obtain a company start up pack.
• Inform the RICS and register for regulation.
• Appoint a responsible principal for all RICS communication
• Prepare a complaints handling procedure and establish a complaints handling procedure.
• Procure sufficient PII and send to RICS details
• Establish a Client Money Handling procedures and protection scheme
• Establish a third party ADR scheme. Ensure use of RICS logo is compliant
• Set up succession plan if sole practitioner - Ensure CPD is logged Establish Staff training plans
• Use the designation ‘Regulated by RICS’ on all practice materials.
• Abide by the Rules of Conduct for Firms.

Question 43

How do you close an RICS Firm?

Answer 43

• Inform the RICS Inform my Clients Inform Insurers
• Return Client Money
• Ensure I have run-off cover for a minimum of 6 years
• Retain Client files for minimum of 6 years

Question 44

What is Professional Indemnity Insurance?

Answer 44

PII is primarily there to protect the Client against financial loss as a result of breach of professional duty of care the firm cant or won’t pay (such as neglect, errors or omissions’)

All policies must be underwritten by an approved insurer Must have appropriate level of indemnity cover governed by Firm’s turnover:

Question 45

If turnover is £100,000 or less - PI Cover Is?

Answer 45

Minimum Level of indemnity required: £250,000

Question 46

If turnover is £100,001-£200,000 = PI Cover is?

Answer 46

Minimum Level of indemnity required: £500,000

Question 47

If turnover £200,001 & above = PI Cover is?

Answer 47

Minimum Level of indemnity required: £ 1 million

Question 48

What level of run off cover is required for consumer work?

Answer 48

Must have adequate and appropriate run-off cover following cessation of trading Consumer claims – min of £1,000,000 of aggregate cover min 6 years. —— Details set out in the RICS Professional Indemnity Insurance Requirements Version 9 2022

Question 49

What level of run off cover is required for consumer work?

Answer 49

Commercial claims – must consider what is appropriate for a min 6 years Insurance Certificate to be sent to RICS on annual basis as part of Firms annual return to RICS Early notification to firms insurers when a potential claim arises —- Details set out in the RICS Professional Indemnity Insurance Requirements Version 9 2022

Question 50

What is my firms PII Cover?

Answer 50

My Firm does not advice others, however, has £10m cover.

Question 51

Do you think your firms PII cover is fair?

Answer 51

It reflects the high value construction projects undertaken.

Question 52

In relation to PII, what does retroactive mean?

Answer 52

The policy covers claims that are made within the insurance period, regardless of when the negligent act occurred.

Question 53

What are the RICS rules regarding PII for Registered Firms?

Answer 53

Mandatory requirement - Rules of Conduct for Firms Need RICS approved insurer (list on website) Need adequate and appropriate level for each instruction

Question 54

Why would level of premium vary?

Answer 54

Vary dependent on level of risk and type of projects, such as the use of MMC.

Question 55

Why do firms have PII?

Answer 55

One of the Rules of Conduct. Protects against negligent behaviour. Protects clients, the firm and me.

Question 56

What is the Members Support Service?

Answer 56

RICS Runs a Members Support Service (MMS) for chartered members facing claims personnaly for work carried out by an employer who has gone into administration.

Question 57

Is PII needed for pro-bono (unpaid) work?

Answer 57

Yes

Question 58

Are there any guidance notes to be aware of for PII?

Answer 58

RICS Practice Information ‘Risk, Liability and Insurance, 1st edition 2021’ Always have a liability cap Make it clear that in a scenario when giving advice it can only be relied upon by the client and not third parties. Clearly stated in terms of business.

Question 59

What if insurers want to take over a complaint?

Answer 59

I would continue with normal procedures, inform the complaints handler. . Good take their advice but not essential for insurers to take over the complaint - RICS

Question 60

Gaining PII cover as a start up?

Answer 60

Can base minimum PII cover on revenue forecasting

Question 61

What is the purpose of PII?

Answer 61

The purposes of having professional indemnity insurance are to: ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources, protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities

Question 62

What is the difference between professional indemnity insurance and liability cap?

Answer 62

A liability cap limits the amount of damages that a client can claim even in the event of a negligent claim. This allows the firm to limit risk. Must be written in firms terms of business. Factors to weigh up include: Risk level, fee, PI premium, type of client. Liability cap could be set as multiple of a proposed fee, amount loaned or value of a construction contract. Liability cap is a contractual agreement between a client and a firm. The maximum amount that would be paid to the client in the event of a claim. However, PI limit – The maximum amount that the insurer would pay out for a claim. Best practice to agree a cap below the PI limit.

Question 63

If you sign with a new insurer who will pay a historic claim?

Answer 63

The new firm will be liable

Question 64

What is negligence?

Answer 64

When a duty of care is breached and this results in a loss. A negligence claim can arise.

Question 65

How to avoid negligence?

Answer 65

• Understand the clients objectives
• Confirm instructions in writing in TOE
• Competently Undertake work in accordance with Professional standards and practice information
• Agree liability cap below PI limit.

Question 66

What is the limitation act 1980?

Answer 66

Current limitation periods for negligence are: Contract – 6 years from date of negligent act or breach of contract S. 14A also provides alternative limitation period of 3 years from the date of knowledge of the damage subject to a 15 year long stop from the negligent act. Tort – 6 years from the date the claimant suffered the loss Liability is 12 years as default when entering into deeds/warranties.

Question 67

How long should old files be held for and why?

Answer 67

Minimum 6 years, then destroyed securely. PII claims can be made up to 15 years after work was undertaken.

Question 68

What is a conflict of interest?

Answer 68

A conflict of interest is where the interests of one client are incompatible with the interests of another, therefore influencing my ability to remain impartial. There are three types of conflict defined by the RICS professional statement: party conflict, own interest conflict and confidential information conflict.

An example of a party conflict would be if I was instructed to dispose of one client’s property and also instructed to acquire that same property by another client.

An example of an own interest conflict would be if I were instructed to value my mother’s home.

An example of a confidential information conflict would be if one client’s requirements were to keep information regarding a property confidential, however another client’s instructions were to obtain said information.

Question 69

How can a conflict of interest be managed?

Answer 69

Step 1 – Conflict Avoidance Consider where you can still remain impartial

Step 2 – Written Advice to both parties Must disclose the nature of the conflict and circumstances surrounding the facts Ensure both parties can make an informed decision Written confirmation from both clients – Informed consent?

Step 3 – Conflict Management Set up an information barrier

Question 70

Provide an example of where you have managed a Conflict of Interest?

Answer 70

Working in house this is slightly different to consultancy. My firm was carrying out a development for a client on a design and build basis, during this period the client fell into a dispute with a contractor on another project over additional costs. The client asked me for advice and my opinion in relation to their other project and the contractor claims – even though my understanding was limited. At the same time, the client asked our firm to provide a tender to complete the site. I explained that it would not be possible for me to advice on their situation with their current contractor, as I am not their advisor. At the same time, they have asked my firm to provide a tender to complete the development. In any case it would be a conflict of interest to advise on their situation and prepare a tender for the same situation, albeit it is not appropriate for me to give advice.

Question 71

Would a friend asking for advice be an own interest conflict?

Answer 71

I would consider how close the friendship was and whether I could remain impartial

Question 72

Examples of where a Conflict of Information exists and cannot not be managed?

Answer 72

RICS Conflict of Interest 2017

Dual Instruction – Where a consultant has a contractual relationship with both developer and client. Another example

Question 73

What is Incremental Advice? (COI)

Answer 73

Incremental Advice- Is the situation where a surveyor is acting for one party in a transaction and the other party in the transaction looks to appoint the surveyor to advise them on the same or another matter at the same time. RICS members must only provide incremental advice if consent is given, and information barrier put in place

Question 74

What is a Personal Interest/Own Interest Conflict?

Answer 74

Personal Interest/Own Interest Conflict – Tendering works to a business associated closely associated to a family member. Must not let this interfere with professional judgement. Full transparency is required, head of department must be made aware.

Question 75

What is Informed Consent?

Answer 75

Provided in writing. Explaining the position is entirely transparent. Only seek informed consent if all relevant parties are satisfied.

Question 76

How would you impose an information barrier?

Answer 76

Surveyors physically separated All information should be securely stored Keep clear audit trail of all written and oral communication

Question 77

Who enforces an Information Barrier?

Answer 77

‘Information Barrier’ means: the physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information passing between them. To comply with the professional standard, to implement a information barrier as a conflict of interest mitigation measure you first require informed consent from all affected parties And then must retain a clear Audit Trail.

Question 78

What is your firms CRM system?

Answer 78

Provides a central place where information is stored such as client data and track client interactions which is then available to colleagues. A bespoke application of Microsoft Dynamics

Question 79

What is an NDA?

Answer 79

Non-disclosure agreement. A contractual agreement binding me to keep the stated information confidential. Must be signed and lay out specifics.

Question 80

What is the Red Book?

Answer 80

Professional Standards document for property valuation. Sets out detailed guidelines and best practices to ensure consistency, transparency and professionalism in the valuation process. Widely used for property sales, purchases, mortgage valuations and finance reporting.

Question 81

What is the Black Book?

Answer 81

Collection of technical practice documents which covers all processes throughout the construction project life cycle. A project is currently underway to review and update the Black Book content with the aim of producing a comprehensive new edition, with improved presentation and navigation. Expected to publish in 2025, the new Black Book will comprise of an overarching global professional standard, accompanied by practical guidance material.

Question 82

Why do you want to be MRICS?

Answer 82

On a personal level this is something I have been working towards and wanting to achieve over the past 6 years. It would make me incredibly proud. On a general level becoming a Member of the RICS will give my board and external clients more confidence in the service I provide them. I will also further improve my knowledge, market advantage and network (130,000 professionals worldwide)

Question 83

Why do you want to be a surveyor?

Answer 83

I have strong interest in property and the built environment Working as a Quantity Surveyor I enjoy the impact I can have throughout the design and construction of new homes, shaping communities and delivering good quality, efficient homes.

Question 84

Where do you see yourself in 5 years time?

Answer 84

Still at the same firm. Hopefully a RICS Member In a more senior role, helping train new graduates to become professional and competent surveyors.

Question 85

What are Stonebonds code of conduct?

Answer 85

Don’t take any bribes. To report any knowledge of bribes. Treat others with respect. To ensure compliance with our gift & hospitality policy and ensure that the gifts register and updated appropriately.

Question 86

What has been the highlight of your career so far?

Answer 86

One of the highlights was a project in Melbourn, South Cambridgeshire where we delivered 23 houses for private sale and S106 affordable, which was the first project I oversaw from start to finish as Project QS. Name another

Question 87

What is the biggest challenge you have faced as a surveyor?

Answer 87

A major challenge I have faced was when a groundworks subcontractor on one of our projects served our firm with a termination notice for alleged breach and abandoned their contract works, they simultaneously submitted a final account application proportion over £500,000 in additional preliminary costs, fluctuations and loss of profit. My firm had not committed a breach. The contractor then referred the dispute to adjudication, requesting confirmation we repudiated the contract and a true value assessment of their final account. This was extremely challenging as I had only recently taken over the project and only had a very short time to familiarise myself and prepare a witness statement. Their adjudication failed, the adjudicator concluded we was not in breach and awarded us costs.

Question 88

How would you deal with difficult colleagues?

Answer 88

Manage – have an open communication to address potential differences Potentially raise to HR is the situation is not manageable and is deteriorating quality of work

Question 89

How are you competent at your job?

Answer 89

Ensure I stay up to date with economic news e.g interest rates and housebuilding policy. Ensure I carry out CPD Ensure I read the relevant professional standards and guidance notes for instruction

Question 90

Difference between negligence and being wrong?

Answer 90

Negligence isfailure to provide services with the standard of skill and care that would be expected from a reasonable body of the professional’s peers

Being wrong is open for interpretation and is often subject to opinion.

Question 91

When may a surveyor be negligent and how could this be avoided?

Answer 91

Duty of care exists for clients and third parties. If this is breached and there is a loss, they can claim damages. A surveyor could be negligent if they fail to understand the client’s instruction or fail to undertake work in accordance with RICS Standards & Guidance Notes. To avoid this, surveyors should sure they are sufficiently briefed and keep good records of all the work they carry out, ensuring they explain why they have made decisions when conducting their work.

Question 92

Can you name an ethical scenario you have faced?

Answer 92

During an ethical tender process I was invited to a races hospitality event… which I politely declined as this could impact my impartiality and be perceived as inappropriate even if it didn’t.

Question 93

Why is importance for a member to be solvent?

Answer 93

Top up hold the RICS Rules of Conduct. If a member was facing financial troubles, they could be more open to bribes or cut corners with the work they carry out. Put the profession into disrepute.

Question 94

The Levitt Review (2021) - what is it?

Answer 94

Findings: Lack of clarity, structure and purpose of RICS governance arrangements Inadequate cash flow management - The RICS’ extended its overdraft facility without informing the management board Levitt described a ‘toxic power struggle’ over governance structure of RICS Levitt called for a full independent review of the “purpose, governance and strategy” of RICS

Question 95

What’s your opinion of the Levitt enquiry?

Answer 95

Disappointed in the events. As members, we adhere to strict ethical standards, which the RICS didn’t do in this instance. However, I am pleased to see the outcome of the Bichard Review.

Question 96

What happened in the Bichard Review?

Answer 96

Following governance failings within RICS carried out by Levitt in 2021, RICS commissioned Lord Bichard to undertake a further review.
Reported in June 2022 making 36 recommendations in 7 key areas:
* Showing greater leadership on sustainability Empowering and enabling members through greater support for regional boards
* Increased focus on diversity and inclusion - RICS Recruit Diversity, Equality and Inclusion and Sustainability panel chairs as new governance structure.
* Improving public interest – created a public interest panel to advise governing council.

Question 97

What were the key principles of ‘Defining our Future’?

Answer 97

a Kath Fontana, the previous president, launched this review. The main aim is to review the RICS business plan:

1. how to maintain public and stakeholder trust
2. how to ensure RICS remains a sustainable body
3. How RICS can be aligned to further reinforce relevance to members.

Question 98

Define Gross Development Value

Answer 98

The aggregate market value of the proposed development, assessed on the special assumption that the development is complete on the date of valuation in the market conditions prevailing on that date.

Question 99

What is the RICS Professional Standards?

Answer 99

They set:
Mandatory requirements that surveyors must follow, where the word ‘must’ is used.

Best practice that surveyors should follow, where the word ‘should’ is used.

In these instances, there may be alternative approaches or methods that may achieve a better overall outcome. This will be up to the individual surveyor to decide upon.

Question 100

What is the RICS Practice Information?

Answer 100

This is supplementary guidance to support surveyors in delivering specific services or working in specific areas of practice. The guidance is not mandatory and does not provide explicit recommendations. Practice Information can include ‘definitions, processes, toolkits, checklists, insights, research and technical information or advice’

Question 101

What is the RICS Practice Information - Why is this important?

Answer 101

If a surveyor faces a professional negligence claim or RICS regulatory or disciplinary proceedings, they will need to be able to evidence that they acted with reasonable competence. This can be through demonstrating compliance with RICS guidance in Professional Standards and Practice Information

Question 102

Use of Social Media?

Answer 102

I would refer to the RICS Regulation – Use of Social Media 2021. Also have reference to the RICS Code of Conduct

Question 103

Four levels of membership to RICS?

Answer 103

FRICS MRICS AssocRICS Trainee/Student

Question 104

How to become a Fellow of the RICS?

Answer 104

Five or more years as MCRIS
Leadership Role
Professional/Technical Achievement
Rasing the profile of RICS

Question 105

Current CEO of RICS?

Answer 105

Justin Young

Question 106

Current president?

Answer 106

Tina Paillet FRICS

Question 107

What is a Responsible Principal?

Answer 107

Each firm must nominate a responsible principle who makes sure the firm adheres to the RICS requirements.

Question 108

Who are principles?

Answer 108

Sole practitioners
Directors
Partners
Board members

Question 109

Role of a RICS Principal?

Answer 109

firm comply with RICS code of conduct firms systems and controls meet legal requirements ensuring that there are adequate processes and systems to record any failures to comply with RICS and/or legal requirements

Question 110

Firms required to be regulated by RICS?

Answer 110

the Firm provides surveying services to the public at least 50% of the Firm’s Principals are RICS Members.

Question 111

What are the benefits of a firm being registered?

Answer 111

Confidence - for clients as regulated firms are monitored by RICS.

Professionalism - firms must provide clear, impartial, expert advice.

Security - firms must have a recognised CHP and PII cover.

Question 112

Firms eligible to register?

Answer 112

A Firm is eligible to register for regulation by RICS if: the Firm provides surveying services to the public and at least 25% of the Firm’s Principals are RICS Members

Question 113

Obligations of RICS Regulation?

Answer 113

Comply with the Rules of Conduct and these Rules Act in accordance with the obligations set out in RICS’ Royal Charter and Bye-Laws Rules for the Regulation of Firms 2022 – Regulation

Question 114

What are common breaches of RICS?

Answer 114

Not logging CPD

Question 115

RICS Motto?

Answer 115

There is measurement in all things

Question 116

Who can use the RICS logo?

Answer 116

RICS members and registered – subject to the guidelines

Question 117

Who controls disputes about becoming a registered firm?

Answer 117

Standards and Regulation Board

Question 118

When could a NDA be released?

Answer 118

In the first instance, I would have reference to the RICS Ethics decision tree If someone is in harm/affect to individuals health (Rule 5 of RICS)

Question 119

What would you do if someone left an envelope in meeting room?

Answer 119

First, try and return it to owner
Send email for clear audit trail Store in a secure place – photo evidence
Reference the RICS ethics decision tree

Question 120

How does your firm want to represent itself?

Answer 120

As the development partner of choice, recognised for a quality product, sustainable practices and personal ethos which sets us apart.

Question 121

How does your firm value sustainability?

Answer 121

Stonebond are actively working with our clients to improve the sustainability of new homes, we have recently completed our first homes by timber frame construction. PV has been introduced to many schemes by regulation, however as a business we are looking to offer these to customers as an upgrade during construction, including battery storage.
- Strong ESG Framework Reporting - Partnered with Community Wood Recycling to ensure all timber waste is recycled
- Replaced all fleet vans with Hybrid vehicles. - Introduced an EV Company Car Scheme to look to reduce emissions

Question 122

How does your firm measure social value?

Answer 122

Stonebond has adopted a comprehensive set of measures outlined through the National TOMS Framework to report social value. This focuses on four key themes: local jobs and skills, supporting regional business, creating healthier communities, and protecting the environment.

Question 123

What are your firms values?

Answer 123

1 - To ensure all we pay our supply chain on time, every time. Within 28 days and have signed up to the prompt payment code. To ensure our projects are carried out to high quality standards.

2 - To ensure high levels of end user satisfaction, which is currently at 100%.

3 - Our team work collaboratively and the firm encourages people fulfil their potential.

Question 124

Can you tell me article you recently found interesting?

Answer 124

The Construction Journal on the payment terms in 3C v Lidl. REVIEW!

BCIS Insight - Why are contractors in the construction industry vulnerable to insolvencies? REVIEW!

The Construction Journal on Data centre growth seen in scaled schemes and retrofits. REVIEW!

Question 125

What would you do if offered to attend a lavish hospitality event the day after completion?

Answer 125

I would consider the timing and proportionality Day after too soon. Wrong perception to my client.

Question 126

What would you do if you were offered a gift after an instruction had been completed?

Answer 126

Check company gift policy. Check reasonableness. Accept if reasonable.

Question 127

What would you do if you were offered a gift by a third party or contractor?

Answer 127

Politely decline as they are not my client.

Question 128

What would you do if you were offered a gift during an instruction?

Answer 128

Politely decline as the instruction is not yet complete and this could impact my impartiality.

Question 129

What would you do if rejecting the gift would offend the client?

Answer 129

Would report it to my Head of Department and Company Secretary. The Head of Department would either donate the item to charity or distribute or raffle the item among a large group of employees. All Gifts received at Christmas which exceed the firms gift limit are raffled to staff for charity.

Question 130

How does the RICS regulate itself?

Answer 130

Self-regulation

Question 131

What are the different advice levels of RICS documents?

Answer 131

Professional Standards (Recommended or Mandatory) (subject to Must or Should)
Practice Information (not mandatory, doesn’t set requirements)

Question 132

Examples of International Standards?

Answer 132

New Rules of Measurement (NRM) International Property Measurement Standards (IMPS)

Question 133

Examples of Professional Standards?

Answer 133

Conflicts of Interest (2017)

Surveying Safely (2018)

Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)

Question 134

Examples of Practice Information?

Answer 134

Black Book contains a range of practice information.

New Rules of Measurement (3rd edn 2021)

Commercial Management of Construction Projects (2016)

Question 135

What have Guidance Notes been recategorised into?

Answer 135

Professional Standards

Old Professorial Statements and Guidance notes have been simplified into the Professional Standards.

Question 136

Delete this card

Answer 136

Code of Measuring Practice (2015)

Question 137

What is NRM1?

Answer 137

Order of cost estimating and cost planning for capital building works

It provides a framework for preparing cost plans and estimates, and is used to ensure accuracy and transparency in the cost-planning process

Question 138

What is NRM2?

Answer 138

Detailed measurement for building works

NRM2 isa document that provides a standardised method for measuring and describing building works

Question 139

What is NRM3?

Answer 139

Order of cost estimating and cost planning for building maintenance works

NRM3 isa set of documents that provide guidance on cost estimating and cost planning for building maintenance works

Question 140

What are the stages of the RIBA Plan of Work?

Answer 140

Stage 0: Strategic definition
Stage 1: Preparation and briefing
Stage 2: Concept design
Stage 3: Spatial coordination
Stage 4: Technical design
Stage 5: Manufacturing and construction Stage 6: Handover
Stage 7: Use

Question 141

What year was RICS founded?

Answer 141

1868

Question 142

When did the RICS receive Royal Charter?

Answer 142

1881

Question 143

What is Royal Charter?

Answer 143

Method of incorporation granted by the Monarchy. Ensure RICS act in the public interest! References Bye Laws and Regulations

Question 144

How is the RICS Governance Structure shaped?

Answer 144

Royal Charter
Bye Laws
Regulation

Question 145

What is the Governance Structure of the RICS?

How is the RICS Structured?

Answer 145

• In 1881 the Royal Charter was granted by the Privy Council.
• The RICS is Self Regulated and internally monitored (not monitored by government or external parties)
• The Bye-Laws determine how the RICS is regulated
• The Governing Council manage and agree the strategy for the RICS.
  The Regulatory Board, Audit Committee and Management Board are beneath the governing council and execute the strategy set by them.

The Management Board comprises 17 professional groups, one being QS and Construction.

Question 146

What is the role of the Privy Council?

Answer 146

Grants awards and Royal Charter

Question 147

What is the role of the Governing Council?

Answer 147

Sets global strategy and ensuring RICS fulfils its Royal Charter obligations, Bye Laws And Regs Following the Bichard RICS Review, Governing Council has agreed a series of measures to create a clear and accountable governance structure.

Question 148

What is the role of the Standards and Regulatory Board?

Answer 148

They are responsible for exercising the standards and regulatory functions of the RICS. In June2023 all of the RICS Standards and Regulation board resigned – disagreement over structure of RICS

RICS Governing Council planning to break up board and transfer responsibilities for technical standards to newly established knowledge and practice committee.

Question 149

What is the role of the Management Board /RICS Board?

Answer 149

To direct RICS affairs under delegated authority from Governing Council. Comprised of non-members (independent), members of RICS, and RICS Executives

Question 150

What is the role of the Audit Committee?

Answer 150

The Audit Committee operates independently of Governing Council, the Management Board and the Standards and Regulation Board. Each year it reports to Governing Council on how it has discharged its duties. Comprises member and non-members.

Question 151

What is the role of the Regulatory Tribunal?

Answer 151

Regulates the RICS as a fair and independent judicial body consists of lay members and RICS members

Question 152

What are the principles of regulation?

Answer 152

They provide a framework within which members and firms can decide how to best meet the rules of conduct requirements.

Question 153

What are the RICS 5 principles of better regulation?

Answer 153

Proportionality
Accountability
Consistency
Targeting
Transparency

Question 154

RICS Bye Laws?

Answer 154

Bye Laws and regulations apply to a member of firm and ensure regulatory best practice. Managed by Privy Council 10 Bye Laws inc:
-Membership and registration
–eligibility and procedure Contributions to funds e.g fees and subscriptions Conduct
– members conduct themselves in a manner benefitting RICS Governing Council, Officers and Staff
– Structure

Question 155

What do the RICS Bye-Laws state regarding confidentiality?

Answer 155

Client confidentiality must be maintained for all client affairs.

Question 156

RICS Regulations?

Answer 156

Managed by Governing Council 10 RICS Regulations (same as bye laws)

The regulations set out any additional definitions which shall apply to the bye laws.

In the event of any variation in a Regulation the definition in the Regulation shall apply provided approved by Governing Council.

Membership and registration –eligibility and procedure Contributions to funds e.g fees and subscriptions Conduct Governing Council, Officers and Staff

Question 157

Disciplinary procedures and how can they be triggered for not following the Rules of Conduct?

Answer 157

Complaint to RICS . Allegation by 3rd party Information established by RICS

Question 158

What are the three levels of disciplinary action?

Answer 158

Action by Head of Regulation (1) Regulatory Tribunal (2) Appeal Panel (3)

Question 159

What are the most common breaches?

Answer 159

Professional behaviour CPD Protecting Clients Money.

Question 160

What can the Head of Regulation (Nigel Clarke) initiate following their investigations?

Answer 160

Fixed penalty notice

Regulatory Compliance Order - Written document outlining a firm must take certain actions and agreement to pay a fine

Refer to Disciplinary Panel - Procedure used for more serious breaches of conduct. Who canIssue a regulator compliance order as above, Fine or Expulsion from RICS

Question 161

What are fixed penalties?

Answer 161

Used for breaches of the Rules relating to the supply of information to the RICS by firms and members.

Question 162

What are CPD sanctions?

Answer 162

They place an obligation on a member to follow the CPD requirement.

Question 163

When is action by the Regulatory Tribunal taken?

Answer 163

On more serious breaches of conduct.

Question 164

Who comprises the Regulatory Tribunal?

Answer 164

Both independent members and RICS members

Question 165

What penalties are available to the Regulatory Tribunal?

Answer 165

Compliance Order

Unlimited fine per breach

Conditions on future RICS registration

Expulsion

Publication of results on website

Question 166

What does the appeal panel do?

Answer 166

Will hear a firm or member’s appeal. Review the decision. Can allow the appeal or vary the penalty imposed.

Question 167

Do you have an internal policy to Modern Slavery?

Answer 167

Yes my firm has a modern slavery policy

the Organisation has a zero-tolerance approach to any form of modern slavery

The Organisation considers its main exposure to the risk of slavery and human trafficking to exist in using suppliers, contractors and sub–contractors

Question 168

What legislation are you aware of which enorages inclusive envirments?

Answer 168

Part M Building Regulations & Equality Act 2010

Question 169

What is the CDM Regulations?

Answer 169

The Construction (Design and Management) Regulations 2015 (CDM 2015) are UK regulations aimed at improving health, safety, and welfare in construction projects by outlining the responsibilities of all parties involved.

Designers are responsible to consider how the building can be constructed and maintained safely during design.

Question 170

What is the Health and Safety at Work Act 1974?

Answer 170

The Health and Safety at Work etc.Act 1974 (HSWA) is the primary legislation in the UK that sets out the framework for ensuring workplace health, safety, and welfare, placing duties on employers, employees, and others to do what is reasonably practicable to protect everyone’s health and safety.

Question 171

What is GDPR?

Answer 171

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union (EU) that governs how personal data of individuals within the EU is collected, processed, and stored, aiming to enhance privacy rights and give individuals more control over their personal information.
The GDPR applies to personal data, meaning any information through which someone can be directly or indirectly recognised, such as name, identification number, location data or online identifier. Significant fines are applicable if firms do not comply with these regulations.

Question 172

What are the benefits of cloud based storage systems?

Answer 172

Information is backed up securely on encrypted servers,
Accessibility can be managed via online settings,
Cloud systems are often cheaper than the costs of physically storing and managing files,
It is convenient to send and share files online instead of mailing physical copies,
Cloud systems are environmentally friendly,
Multiple users can access the same documents,
Documents and folder systems can be synchronised,

Question 173

Who are the key persons outlined within GDPR?

Answer 173

Controller — The controller is the natural person or legal entity that determines the purposes and means of the processing of personal data (e.g., when processing an employee’s personal data, the employer is considered to be the controller).

Processor — A natural person or legal entity that processes personal data on behalf of the controller (e.g., a call centres acting on behalf of its client) is considered to be a processor. At times, a processor is also called athird party.

Data Protection Officer (DPO) — The Data Protection Officer is a leadership role required by EU GDPR. This role exists within companies that process the personal data of EU citizens. A DPO is responsible for overseeing the data protection approach, strategy, and its implementation.

Question 174

What are the 8 individual rights under GDPR?

Answer 174

The right to be informed
The right of access
The right of rectification
The right to erasure
The right to restrict processing
The right to data portability
The right to object
Rights of automated decision making and profiling

Question 175

What are the 7 principles of GDPR?

Answer 175

Lawfulness, fairness and transparency.
Purpose limitation.
Data minimisation.
Accuracy.
Storage limitation.
Integrity and confidentiality (security)
Accountability.

Question 176

What things must companies put in place to ensure GDPR compliance?

Answer 176

Raise awareness across your business
Audit all personal data
Update your privacy notice
Review your procedures supporting individuals’ rights
Identify and document your legal basis for processing personal data under the GDPR
Review how you seek, obtain and record consent

Question 177

What is workplace diversity?

Answer 177

Diversity in the workplace relates tothe acceptance and inclusion of employees of all backgrounds.
Ensuring diversity in the workplace is an important asset of an organisation as it acknowledges the individual strengths of each employee and the potential they bring.

Question 178

What are some advantages of a diverse team?

Answer 178

Increased productivity: A diversity of talent will result in a broader range of skills amongst the team and result in increased productivity
Increased creativity: Differing skill sets and perspectives within the team will increase the change of generating solutions to workplace problems
Improved cultural awareness: A diverse range of cultures within the workplace allows companies to operate more effectively within a global market place. For example, having access to an employee who speaks Mandarin will be a great asset for a company operating in China
A positive reputation: Companies that have a diverse workplace are often perceived as better employers. Potential employees want an employer who accepts and is tolerant of all backgrounds and who treats their employees fairly

Question 179

Please explain your understanding of inclusion within the workplace?

Answer 179

Inclusion within the workplace is creating an environment and culture where all company employees feel like they belong in the organisation
This results in every employee being comfortable to voice their opinions and that no one person feels excluded on the basis of their identity

Question 180

What is meant by the term unconscious bias?

Answer 180

Unconscious bias refers tothe associations and assumptions that a person may have about someone solely because of their race, gender or disability
These judgements are made without conscious awareness
These automatic assumptions and stereotypes are a major contributor to a lack of workplace diversity

Question 181

What procedures does your firm implement to promote sustainability?

Answer 181

Recycling
Use of Energy efficient lighting (motion sensors)
Energy efficient equipment (LED lamps, energy efficient monitors)
All fleet vans are to EV - EV salary sacrifise scheme introduced for employees
Cycle to work scheme
Secondary Glazing to Office
Reduce printing by using cloud based systems

Question 182

What is the Paris Agreement?

Answer 182

The Paris Agreement isa legally binding international treaty concerning climate change
It was adopted by nearly every nation and came into affect in 2016
The goal of the Paris Agreement is to limit global warming to well below 2 degrees Celsius whilst targeting levels below 1.5 degrees Celsius when compared to pre-industrial levels
The agreement commits all major emitting countries to cut their climate pollution

Question 183

Name some sustainable building methods?

Answer 183

Use of recycled materials such as reclaimed timber, recycled tiles and plastics
Ground Source Heat Pumps
Air Source Heat Pumps
Solar Panels
Wind Turbines
Solar Shading
Rain water harvesting
Green Roofs
Heat Recovery

Question 184

Can you explain your understanding of the term carbon neutral?

Answer 184

Carbon neutrality is to have a balance between the carbon emitted and the carbon absorbed from the atmosphere in carbon sinks
This is an important measure of the impact that businesses and projects have on the environment and global warming
To date no artificial carbon sinks are able to remove carbon from the atmosphere at the levels required to off set global warming

Question 185

What are the benefits of a BREEAM certified building?

Answer 185

BREEAM buildings help clients to benefit from lowering the running costs of their built assets and minimising the impact on the environment through consideration at planning, design, construction and operation phases
Other benefits include greater marketability to building tenants through lower running costs and creating desirable places to live and work
A higher building value and positive PR message is also achieved through the increased sustainability of the building particularly when achieving BREEAM excellent and very good ratings

Question 186

What sustainable initiatives are you aware of that are implemented by the RICS?

Answer 186

SKA ratings encouraging green codes of practice for commercial properties
RICS has launched the Value the Planet campaign and committed to forming a climate change expert panel to implement the UN’s sustainable development goals.
RICS has also launched a Responsible Business Report filled with solutions for companies to operate in a greener capacity, regardless of the firm’s size. This includes introducing higher recycling rates and reducing energy, transport and water use where possible.#

Question 187

What things do you implement to promote sustainability?

Answer 187

Print only when necessary
Car sharing
Use of energy efficient equipment
Recycling
Cycle to work
Careful to minimise waste
Avoid use of plastic bottles where possible
Use of cloud based sharing systems

Question 188

What is the difference between RICS ethics and rules?

Answer 188

• Ethics are a set of morals
• Rules of conduct are a framework that we work to.

Question 189

What is the Mission Statement of the RICS?

Answer 189

• To qualify and equip their members to offer the highest standards of professional service.
• To promote and enforce standards.
• To lead solutions to the major challenges facing the built environment through professional expertise.

Question 190

Your brother-in-law is a chartered surveyor . You find out that he is working outside of the RICS Rules of Conduct. What do you do?

Answer 190

• I would verify the facts and confront him to remind him of duties as a member of the RICS.
• I would inform the RICS specifying my relationship to the person and any corrective action which I believe he is committed to putting in place.

Question 191

In the case of a breach of the rules of conduct, what is the procedure?

Answer 191

• Not every shortcoming will necessarily give rise to proceedings.
• A formal investigation by the Head of Regulation of the RICS is the first step in the process.
• The RICS can request information and/or visit and inspect to investigate compliance.
• Members must cooperate fully with all enquiries.

Question 192

How can disciplinary proceedings be issued?

Answer 192

• Someone complaining to the RICs
• An Allegation by a Client or Third Party
• Information received or established by the RICS

Question 193

What are the three actions can be imposed after the end of the investigation stage? (disciplinary)

Answer 193

• Fixed Penalty (A Fine)
• Consent Order
• Disciplinary Panel

Question 194

What are Consent Orders? (disciplinary)

Answer 194

It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS Rules.

It can require the member to take certain corrective actions, or restrain from taking certain actions for a specified period of time and may require the payment of a fine or costs.

Question 195

When is a disciplinary panel applicable?

Answer 195

• They are used for more serious breaches of conduct.
• The panel will usually be held in public.
• The burden of proof is on the RICS.
• A balance of probabilities approach will be adopted.

Question 196

What sort of breaches would expulsion be suitable for?

Answer 196

• Gross, persistent or willful failure to comply with an RICS Rule of Conduct.
• Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a clients money.

Question 197

What insurances would you need if you were starting up on your own firm?

Answer 197

• Professional Indemnity
• Employers Liability
• Public Liability
• Buildings Insurance for an office premises

Question 198

What sort of information do registered firms have to send to RICS annually?

Answer 198

An Annual Return, completed online
It Includes
- Type of Buisness and Staffing
- Nature of Clients
- Training Provision
- Complaints handling procedures details and records
- PI Insurance details
- Whether the firm holds clients money

Failure to do so leads to a fixed penalty.

Question 199

What processes do regulated firms need to put in place when handling Clients Money?

Answer 199

Preserve the security of clients money which does not belong wholly to the company.

Client money must be kept in a clearly identifiable client account, which has client in the name of the bank account.

A principal overseas the client money accounting functions and a segregation of duties for employees must be established, the principal cannot override control measures.

Clients must always have access to their funds, a client money ledger must be maintained.

Accounting systems and data must be kept secure.

Question 200

What are the different types of client money accounts?

Answer 200

• General Accounts - Hold Money for More than one Client
• Discrete Accounts - Reference a single named client.

Question 201

Tell us about the Merrit v Babb Case Law

Answer 201

• This case dates back to 2001 and highlights the importance of having run-off cover in place.
• A Surveyor was sued for negligence by a former client.
• Because the surveying firm was no longer in existence, therefore the individual surveyor was pursued for damages successfully.
• This caused a big shock in the industry and highlighted the ned to ensure that run-off cover is in place for all previous employees.

Question 202

What is an independent redress scheme?

Answer 202

• It is a consumer scheme designed to handle small issued that would be disproportionally expensive to take to court.
• If the scheme judges in favour of the complainant, it is binding.
• If it judges in favour of the firm, the complainant can escalate the matter to court.
• RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication.
• A complainant can choose to take a matter to court without utilising a redress scheme if they wish.

Question 203

What do you do if you receive a letter of complaint?

Answer 203

• I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing information as required.
• As we do not provide advice to others, the process in my firm is different to a consultancy, complaints would usually relate to payment, quality or defect rectification requests.
• I would highlight the importance of informing our professional indemnity provider, if required to do so under the policy, however this is outside of the control of my role at my firm.

Question 204

What must a complaints handling procedure include?

Answer 204

• The RICS provides a model form
• The Process must include a redress mechanism
• Details of the policy should be issued to a client within the terms of business.
• It must be clear, quick, transparent and impartial and free of charge within the first stage.
• Name and contact details of the investigating person must be stated.
• The complaint must be investigated within 28 days.
• All complaints, their progress and outcomes must be recorded.
• We must note the need to advice PI insurers of a complaint immediately.
  The Process must have two stages as a minimum
• Stage 1 - is where there needs to be consideration of the complaint by senior member of the firm or a complaints handling officer.
• Stage 2 - if the issue is not resolved, the complaint is referred to an independent third party with authority to award redress.

Question 205

When does a Construction Project Require an F10?

Answer 205

A construction project is required to submit an F10 if it meets any of the following criteria:
- The project is expected to last longer than 30 working days
- The project is expected to exceed 500 workdays between individual workers
- More than 20 workers will be working on the project at any point

Question 206

if an F10 is required, when should it be submitted?

Answer 206

as soon as is practicable before the construction phase begins

Question 207

What is the Penalty for failing to comply with the Health and Safety at Work Act 1974?

Answer 207

Imprisonment for a term not exceeding two years, or a fine, or both.

Question 208

What is the purpose of the Joint Names on a Client Account

Answer 208

For the purpose of Dual Authorisation

Question 209

What are Continuous CPD Requirements?

Answer 209

Members must undertake and record appropriate lifelong training

On required from the RICS they must provide evidence that they carried out the CPD to maintain and improve their level of professional competence.

Question 210

What type of articles do you read?

Answer 210

I am subscribed with a number of specialist Construction and Development Law firms and regularly receive updates and invites to webinars on Various construction law topics including Adjudication and new Case Law.

I also read the RICS Construction Journal, with particular interest on the recent article on 3C v Lidl.

I am also subscribed for updates from BCIS and I keep up to date on the RICS all of profession news letter and website updates.

Question 211

What is the Future Home Standards?

Answer 211

The Future Homes Standard is a set of regulations that will make new homes in England more energy efficient and reduce their carbon emissions.

It is expected to be implemented in 2025 will see new homes deliver 75% less carbon emissions than homes built under the current Building Regulations.

Question 212

How will the Future Home Standards effect your work?

Answer 212

The Future Home standards will alter the construction materials and specifications typically used to achieve the enhanced efficiency.

The FHS aims to decarbonise new homes by focusing on improving heating, hot water systems, and reducing heat waste.

This will be achieved by replacing current technologies with low-carbon alternatives. For example, very high quality building fabric (structural materials, insulation etc.), triple glazing standards and low-carbon heating through heat pumps will replace their older, less efficient counterparts, PV & Waste water heat recovery.

Low Air Levels of Permeability

Question 213

What is your CPD Strategy?

Answer 213

I meet with my manager twice a year to review my career development plan and objectives.

I use this to build a CPD strategy, I subscribe to events and research certain areas.

I am currently studying a Masters Degree in Construction Law and Dispute Resolution at Kings College London, which has already significantly widened my knowledge.

Question 214

What benefit does PII provide for the professional?

Answer 214

• The professional is protected from financial losses
• The firm does not have to meet the claim from their own assets or resources

Question 215

What benefit does PII provide for the client?

Answer 215

They are bale to recover their financial losses.

Question 216

What is the PII limit of uninsured Excess

Answer 216

Cover upto £500k - upto 2.5% or £10,000 Max

Cover Over £500k - upto 2.5%

Question 217

What are the requirements for PPI set out by RICS?

Answer 217

• The Policy cover must be on an ‘Each and Every’ Claim Basis
• The RICS sets out minimum levels of indemnity based on turnover
• The RICS sets out maximum uninsured excess dependant on indemnity limit.
• Run Off Cover must be in place for at least 6 years.
• The policy should include cover for past and present employees, directors and partners.

Question 218

What measures should be taken to try and avoid PI Claims?

Answer 218

• Keep full and detailed records of meetings and conversations
• Record recommendations and advice given
• Use proper letters of engagement, scope o services and terms of engagement.
• Don’t advice on specialism outside your field of experience.
• Use RICS guideline.
• Avoid poor management and excessive workloads.

Question 219

If you made a mistake on a cost plan, what would your insurance company expect?

Answer 219

For you to notify them and comply with any conditions & procedures set out in the insurance policy.

Question 220

If an estimate prepared by a QS is incorrect, can the client claim damages?

Answer 220

An estimate that is incorrect in itself will not provide the client with a sign of redress.

The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to lack of reasonable skill and care.

It could have been incorrect due to reasons outside the control, example - market conditions or an item referred to in their exclusions.

Question 221

How can you limit your liability when agreeing terms of an appointment with a client?

Answer 221

• Base your appointment on reasonable skill and care as this is less onerous than fitness for purpose.
• Include a liability limitation clause beneath your PI cover limit.
• Run Off Cover must be in place.
• Sign agreements under hand as this will only have 6 year liability limitation rather than a deed.

Question 222

Tell me what you understand about conflicts of interest?

Answer 222

• A conflict of interest is where someone in a position of trust has compelling personal or professional interests making it difficult for them to fulfil their duties impartially.
• An existing relationship will result in reduced impartiality and Chattered surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occurs.

Question 223

How could the conflict of interest be managed internally if two separate departments were working for the same client?

Answer 223

• I could put in place procedures to ensure exclusivity of staff.
• This would avoid any cross over of information between the departments.
• I would also ensure that there are separate communication lines into the client.
• Separate geographical locations and secure office and data storage would also need to be provided.
• Staff could also sign up to confidentiality or non-disclosure agreements.
• I would also need to monitor the potential conflict and keep the client updated on progress.

Question 224

If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?

Answer 224

• I would check the clients understanding around the conflict of interest.
• I would then make the client aware of the potential for reduced impartiality.
• If they were still insistent on the appointment, I would seek a letter of instruction from the client to
  continue.
• Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.

Question 225

Under the Bribery Act, under what circumstance is a facilitation payment permitted?

Answer 225

• The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
• For example if there is a real and present risk or danger to “life, limb or liberty”.
• If you or your companions are under immediate physical threat.
• You should put safety first, make the payment and report the matter immediately.
• Or as soon as is practicable to your manager or your ethics compliance contact.

Question 226

You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?

Answer 226

• In the first instance I would declare this hospitality on my companies gifts and hospitality register.
• Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out.
• Since they won’t be present, this will not be a genuine business event.
• Consequently, I would decline this hospitality at the Project Team’s expense.

Question 227

A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?

Answer 227

• Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act.
• If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate.
• However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement.

Question 228

What is the difference between management and financial accounts?

Answer 228

• Management accounts are for the internal use of the management team.
• Financial accounts are the company accounts that are required by UK law.

Question 229

What is the difference between a profit and loss account and a balance sheet?

Answer 229

A profit and loss account shows the incomes and expenditures of a company and the resulting profit or loss.

The balance sheet shows what a company owns (it’s assets) and what it owes (it’s liabilities) at a given point in time.

Question 230

What is a cashflow statement?

Answer 230

• It is the summary of the actual or anticipated ingoing and outgoing of cash in a firm over the accounting period.
• It measures the short-term ability of a firm to pay off its bills.

Question 231

What are Capital Allowance’s?

(Accounting Principals)

Answer 231

Tax relief on certain items purchased for the business for example tools and equipment.

Question 232

What are Sinking Funds?

(Accounting Principals)

Answer 232

Funds that are set aside for future expense or long-term debt.

Question 233

Define Insolvency?

Answer 233

An inability to pay debts where liabilities exceed assets.

Question 234

Explain your understanding of Companies House?

Answer 234

An agency that incorporates and dissolves limited companies within the United Kingdom

Question 235

What are Liquidity ratios?

Answer 235

Liquidity rations measure the ability of a company to pay off its current liabilities by converting its current assets into cash.

Liquidity ratio calculation = current assets / current liabilities.

• The ratio is usually around 1.5 but it depends on the sector of activity.
• For example house builders often operate on a liquidity ratio over 3 because they retain high value assets in the form of unsold houses.
• A liquidity ratio of less than 0.75 can be an early indicator of insolvency.

Question 236

What is the purpose of a P & L?

Profit & Loss

Answer 236

◦ To monitor and measure profit (or loss).
◦ To compare against past performance and against company budgets.
◦ For valuation purposes and to compare against competitors.
◦ To assist in forecasting with future performance.
◦ To calculate taxation.

To show the position of Sales Income Minus cost.

Question 237

What is the difference between debtors and creditors?

Answer 237

On a Balance Sheet, the Creditors balance are firms or individuals owed money by the company.
For example - if you have provided services to a client and they owe payment of your fees, you become a creditor to that client.

On a Balance Sheet, the Debtors balance are firms or individuals which owe the company money.
For example - if you have used a sub-consultant and still owe them payment of their fees then you become a debtor of the sub-consultant.

Question 238

What are Management Accounts?

Answer 238

• The accounts prepared by a company for internal management use.
• Accounts prepared for a lender, such as a bank to evaluate how you will be able to repay the funding
• These accounts are not be audited externally.

Question 239

What is a Financial Statement?

Answer 239

Forecasts of income and expenditure that can be used as an analytical tool to identify potential shortfalls and surpluses.

Question 240

What are Profitability ratios?

Answer 240

• Profitability ratios measure the performance of a company in generating its profits.
• The trading profit margin ratio = Turnover - (cost of sales/turnover)
• Low Margins maybe due to growth strategy from the company and do not always result from bad management.

Question 241

What are Financial Gearing Ratios?

Answer 241

• Measure the financial structure of the company which are crucial indicators for the external suppliers of debt and equity as well as for internal management.
  ◦ They help to measure solvency.
  ◦ Highly geared companies rely mainly on borrowing.
  ◦ The payment of interest reduces the profit.

Question 242

Why do chartered quantity surveyors need to understand and be able to interpret company accounts?

Answer 242

◦ To aid in preparing their own business accounts.
◦ For assessing the financial strength of contractors and those tendering for contracts.
◦ For assessing competition.

Question 243

What is a cashflow forecast?

Answer 243

A cashflow forecast summarises the amount of cash entering and leaving a company or project.

On construction projects, cashflows typically show an S curve.

Question 244

What is an S Curve?

Answer 244

S Curve, is a term which refers to the standard shape of cashflow expenditure when presented graphically for construction projects.

The rate of expenditure starts slow during the preparatory works

The rate of expenditure typically increases significantly during the middle of the program

And slows down towards the end to reflect the reduced expenditure for finishing works compared to structural and M&E in middle.

Question 245

Why would surveyors review balance sheets, P&L and cashflow forecasts?

Answer 245

• To track, analyse and access business accounts and performance (during due diligence and the course of the works)
• For assessing the financial strength of contractors.
• To compare actual progress of the work against pre-contract predictions.
• For preparing future expenditure forecasts (reviewing old cashflows)

Question 246

What are Escrow Accounts?

Answer 246

◦ A separate account owned by a third party, held on behalf of two other parties.
◦ A bank account with defined contractual conditions for the release of funds.
◦ They can be used as a project bank account.
◦ Mechanisms must be in place for the release of funds such as payment certificates.

Question 247

When have you used company accounts in your work?

Answer 247

To assess the financial strength of contractors at Pre-Qualification Stage and tender stages.

Question 248

How do you analyse a company’s accounts?

Answer 248

◦ The client’s accountants will carry out the detailed analysis but I can look at the warning signs by calculating ratios such as liquidity ratios, profitability ratios and gearing ratios.
◦ I should always calculate the ratios myself as those included in the company accounts may have been manipulated.

Question 249

How do you carry out a credit check? Give an example.

Answer 249

◦ I use the Experian website to which my company subscribes to access ratings for all companies.
◦ I considered both the group/parent accounts and the company accounts.
◦ If the credit rating is low, I pass on all the information to my client’s accountants for them to analyse further.

Question 250

What are signs of insolvency in company accounts or credit checks?

Answer 250

• A low credit rating.
• A liquidity ratio below 0.75.
• A falling working capital suggests the company has taken on more contracts than it can finance.
• A low return on equity.
• A highly geared company that is heavily reliant on loans.
• A falling cashflow statement.

Question 251

Why would you not recommend the appointment of a contractor with a low credit rating?

Answer 251

◦ There may be an increased risk of the contractor not performing satisfactorily.
◦ It could present increased risk of the contractor failing to deploy sufficient resources and materials to the project.
◦ It could increase the risk of the contractor’s insolvency.

Question 252

What measures would you recommend if your client wanted to appoint a contractor with a low credit rating?

Answer 252

• I would explore the option of requesting a performance bond that my client could call on if they Main Contractor failed to perform.
• I would also review the tender submission to ensure this is not excessively front loaded.
• When reviewing interim valuations, I would ensure that these are accurate and not over claimed.
• A project bank account may also provide an additional level of assurance and should be considered.

Question 253

What is a SWOT analysis?

Answer 253

- A SWOT analysis can be used to analyse the internal strengths and weaknesses and external threats and opportunities of a company.
- This is carried out with a view to exploiting strengths and opportunities and mitigating weaknesses and threats.

Question 254

What is a PEST analysis?

Answer 254

This is a structured method of analysing the key factors influencing market conditions.
These factors are:
◦ Political influences.
◦ Economical influences.
◦ Socio-demographical influences.
◦ Technological influences.
◦ Environmental influences.

Question 255

How do companies write a business plan?

Answer 255

◦ They undertake an analysis of the market and industry to identify business opportunities and critical success factors.
◦ Companies should focus their resources in developing their competences in the critical success factors.
◦ This then leads to the development of goals and objectives with their associated strategies and actions.

Question 256

What is a Client Account Planning session?

Answer 256

◦ A review of current workload, resources & fees.
◦ It involves the identification of key client personnel who have influence over job opportunities and identification of who the firm should look to build relationships with.
◦ A review of pipeline opportunities with that client is also undertaken.

Question 257

What is a Business Plan?

Answer 257

◦ A formal statement of the business’s goals with reasons why they are thought to be attainable and the plan for reaching the goals.
◦ The business plan also provides employers with a common ground to focus upon.

Question 258

Would you be able to interpret & understand an annual account?

Answer 258

At a high level but I would seek further advice from one of our internal Chartered Accountants if necessary.

Question 259

What is your firms business plan?

Answer 259

◦ To be the development partner of choice, creating high quality tenure blind homes.
◦ Strong Turnover growth following extensive investment in new divisions over recent years.
◦ To be developing 1200 homes per annum within the next 5 years.
◦ Expansion into new London Regeneration projects within the next 5 years.
◦ See Turnover grow to £400m in the next 5 years time.

Question 260

How do you contribute to your company’s goals?

Answer 260

◦ Maintain excellence in my work.
◦ Do my best to ensure high levels of construction quality.
◦ Sharing knowledge within integrated teams.
◦ Keeping up with new technologies.
◦ Upskilling new and junior team members.

Question 261

How do you think an up to date business plan can help an organisation in the current economic climate?

Answer 261

◦ To support with gaining additional investment, funding or finance.
◦ To ensure the business scales and adapts to changing market conditions , such as sales demand and affordability, this is essential in housebuilding.
◦ To focus on key priorities.
◦ To review and update budgeting.

Question 262

What is your understanding of the term Confidentiality?

Answer 262

Where information is provided but is subject to confidence and not shared without permission.

Question 263

What is your understanding of the term Meta Data and why is this important?

Answer 263

◦ Meta Data is information about a specific piece of data.
◦ For example when sharing a cost planning document, the Meta Data associated with this could consist of information about the author, the file size, the date the document was created and keywords to describe the document.
◦ We must ensure that this Meta Data is afforded the same level of care as all other confidential data.
◦ In a scenario where we are sharing a document or removing confidential components of a document we should ensure that any confidential meta data is not shared inadvertently.

Question 264

What is your understanding of Intellectual Property and Copyright?

Answer 264

◦ This is the right to control the use and ownership of original works.
◦ Work generally created by an employee usually belongs to their employer unless copyrights are put in place.
◦ It is common within construction for a client to be granted license for use and reproduction of copyright material which should be clearly defined.
◦ This could be the right to use a particular design by a subcontracting specialist who retains control of the original copyright.

Question 265

What is the Freedom of Information Act 2005?

Answer 265

◦ This is the primary piece of UK legislation that controls the access to official information.
◦ The act permits the public right of access to information held by public authorities.
◦ Information must also be published through the public authorities publication scheme.
◦ The act covers all information held and not just information since the act came into effect.

Question 266

What are the benefits of cloud-based storage systems?

Answer 266

◦ Information is backed up securely on encrypted servers.
◦ Accessibility can be managed via online settings.
◦ Cloud systems are often cheaper than the costs of physically storing and managing files.
◦ It is convenient to send and share files online instead of mailing physical copies.
◦ Cloud systems are environmentally friendly.
◦ Multiple users can access the same documents.
◦ Documents and folder systems can be synchronised.

Question 267

Who are the key persons outlined within GDPR?

Answer 267

Controller - The controller is the natural person or legal entity that determines the purposes and means of the processing of personal data for example when processing an employee’s personal data, the employer is considered to be the controller.

Processor - A natural person or legal entity that processes personal data on behalf of the controller for example a call centre acting on behalf of its client is considered to be a processor.

Data Protection Officer (DPO) - The Data Protection Officer is a leadership role required by EU GDPR. This role exists within companies that process the personal data of EU citizens. A DPO is responsible for overseeing the data protection approach, strategy, and its implementation.

Question 268

What are the 8 individual rights under GDPR?

Answer 268

◦ The right to be informed.
◦ The right of access.
◦ The right of rectification.
◦ The right to erasure.
◦ The right to restrict processing.
◦ The right to data portability.
◦ The right to object.
◦ Rights of automated decision making and profiling.
◦ Diversity, Inclusion & Team Working.

Question 269

What is the Data Protection Act 2018?

Answer 269

The act replaces previous 1998 Legislation and manages how personal data is processed by organisations
and the government.

It is the UK legislation for the implementation of the EU General Data Protection Regulations (GDPR).

Question 270

What are the key Principles of the Data Protection Act 2018?

Answer 270

The act ensures that data is:-
◦ Used fairly, lawfully and transparently.
◦ Used in a way that is adequate, relevant and limited to only the purpose it is intended.
◦ Is retained for no longer than is necessary.
◦ Processed securely including the protection against unlawful use, loss or destruction.

Question 271

What are a person’s rights under the Data Protection Act?

Answer 271

◦ People have the right to:-
◦ To be informed about how their data is being used.
◦ The right to access their data.
◦ The right to have incorrect information updated.
◦ To have their data erased.
◦ To stop or restrict the processing of their data.
◦ The right of portability.
◦ To object to the use of their data.

Question 272

What different sources of information do you use in your day-to-day?

Answer 272

◦  Cost Data highly sensative to my Client (the firm)
◦ Access Controlled servers and drives
◦ If signed up to an NDA with a client I ensure complete confidentiality and am not able to talk about these projects with colleagues who are not party to the project.
◦ I am always sure to lock my computer when away from my desk and comply with my firms IT security policies for example attendance at Cyber security courses and regularly updating my passwords.
◦ If I am sharing or processing information not available in the public domain from a previous project 1 always obtain the clients written permission to do so.
◦ We do not store hard copies of information.

Question 273

How do companies ensure compliance with the Data Protection legislation generally?

Answer 273

◦ They should only retain data they need to perform their day-to-day operations.
◦ If they are retaining someone’s data they should ensure the person is kept informed and advised on why they have it.
◦ They should hold the data securely.
◦ They should also keep the information up to date and delete information they no longer need.

Question 274

Describe the role of a Principal Designer under the CDM Regulations?

Answer 274

◦ Plan, manage, monitor and coordinate health and safety (pre-construction).
◦ Identify, eliminate or control foreseeable risks.
◦ Ensure Client and designers are aware of their duties and advise the Client on bringing together the pre-construction information.
◦ Provide relevant information to other duty holders.
◦ Liaise with Principal Contractor in the planning management, monitoring and coordination of the construction phase.

Question 275

Describe the role of a Client under the CDM Regulations?

Answer 275

◦ Appoint competent duty holders.
◦ Allow sufficient time and resources.
◦ Prepare and provide relevant information to duty holders.
◦ Ensure that the Principal Designer and Contractor carry out their duties.
◦ Ensure welfare facilities.

Question 276

Who are duty holder under the CDM Regulations?

Answer 276

Nearly everyone is a Duty Holder
- Commercial Clients
- Domestic Clients
- Designers
- Principal Designers
- Principal Contractors
- Contractors
- Workers

Question 277

What are the key implications of the CDM Regulations?

Answer 277

◦ There is more focus on clients to put in place arrangements to ensure health and safety.
◦ Clients can no longer assign their legal responsibilities to agents.
◦ There must be a declaration of how long contactors will be given to plan and prepare for construction work.
* Clients are deemed to assume the role of the principal contractor for any period during which other appointments aren’t made.

Question 278

What items would you expect to find in the pre-construction information?

Answer 278

◦ A project description.
◦ The Client’s considerations and management requirements for hoarding, welfare facilities, traffic restrictions and permits to work.
◦ Environmental restrictions and existing on-site risks such as site restrictions, previous H&S files, ground conditions, existing services, asbestos surveys, contamination and unsafe structures.
◦ Significant design and construction hazards such as design risks assessments, suggested method statements, arrangement for coordination post contract design work and changes.
◦ Health and Safety File requirements

Question 279

What would you find in the Construction Phase Plan?

Answer 279

◦ A Project description.
◦ Processes for management of the works including site inductions, training, communication, welfare facilities, design coordination, site rules and emergency procedures.
◦ Arrangements for controlling significant site risks such as handling of deliveries, working at height, deep excavations, preventing falls, site segregation, maintenance of plant and equipment, removal of asbestos, reducing noise and vibrations and manual handling.

Question 280

What would you find in the H&S File?

Answer 280

H&S information that is useful for the planning of future works or maintenance.
This comprises:-
◦ A brief description of the work carried out.
◦ Any residual hazards which remain and how they have been dealt with for example surveys or other information concerning asbestos, contaminated land, water bearing strata and buried services.
◦ Key structural principles for example, bracing and sources of substantial stored energy.
◦ Hazardous materials used for example lead paint, pesticides, special coatings which should not be burnt off.
◦ The nature and location of significant services, including underground cables, gas supply equipment and fire-fighting services.

Question 281

What is an F10?

Answer 281

◦ The F10 form is used to notify the HSE of the project.
◦It should contain:-
◦ The address of the construction site.
◦ The name of the local authority where the site is located.
◦ A brief description of the project and the construction work it entails.
◦ Contact details for the client and Principal Contractor.
◦ It should give an indication of the time allowed by the client for the PC to plan and prepare for the construction work
◦ It should provide a planned date for the start of work, duration of construction phase and give a number of people at work on site at any one time.

Question 282

What does RIDDOR stand for?

Answer 282

Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013

(RIDDOR) requires the responsible person’ to notify any death, reportable injury, diseases or dangerous occurrence to the HSE.

The responsible person is the employer or, for the self employed, the contractor or principal contractor.

Question 283

What incidents are reportable?

RIDDOR

Answer 283

◦ Death and major injuries such as loss of consciousness or loss of a limb.
◦ Occupational diseases.
◦ Dangerous occurrences for example explosions, hazardous substances, structural collapse or collision etc.
* Gas incidents.

Question 284

What does COSHH stand for?

Answer 284

Control of Substances Hazardous to Health

The regulations aim to avoid exposure to hazardous substances, or if not possible, to control exposure by measures that are proportionate to the health risk.

Question 285

What does CSCS stand for?

Answer 285

Construction Skills Certification Scheme

Question 286

On the project described in your case study, what measures did you or your company take to ensure good standards of health and safety when either undertaking your work or delivering the project?

Answer 286

◦ Working to agreed risk assessments.
◦ Wearing personal protective equipment on site.
◦ Attending Site Inductions.
◦ Reporting visible risks for example - traffic management issues.

Question 287

What is a risk assessment?

Answer 287

◦ A risk assessment is simply a careful examination of what, in your work, could cause harm to people, so that you can weigh up whether you have taken sufficient precautions or should do more to prevent harm.
◦ The law does not expect you to eliminate all risk, but you are required to protect people as far as “reasonably practicable”.

Question 288

What are the 5 steps to risk assessment?

Answer 288

Step 1 - Identify the hazards.
Step 2 - Decide who might be harmed and how.
Step 3 - Evaluate the risks and decide on precautions.
Step 4 - Record your findings and implement them.
Step 5 - Review your assessment and update if necessary.

Question 289

What is the role of the HSE?

Answer 289

◦ To prevent work-related death, injury and ill-health.
◦ Provide support to the public and businesses with guidance, statistics and research.

Question 290

What are the powers of the HSE?

Answer 290

◦ Inspectors can visit site without notice, talk to workers, take pictures and samples.
◦ Most inspections are planned to encourage good H&S practices.
◦ Some inspections are to respond to a complaint or follow-up an investigation.
◦ To impose sanctions including stop and improvement orders.
◦ To issue written or verbal information and advice.

Question 291

What is your company’s Health and Safety policy?

Answer 291

◦ Prevent work-related injuries or illnesses.
◦ Prevent damage to property and/ or equipment from our activities.
◦ Prevent adverse impacts to the environment from our ongoing projects or operations.
◦ At staff level:-
◦ Take responsibility for safety and comply with safe systems of work.
◦ Act responsively, report incidents and near misses.
◦ Regular training refresher courses.
◦ Risk assessments are compulsory for all projects with bi-monthly updates as a minimum.
◦ CSCS cards are mandatory.

Question 292

What is the RICS Surveying Safely publication?

Answer 292

The RICS guidance on personal safety at work.
The document covers:-
1) General Statement - Employers/Employees have a duty of care under law of tort towards those who may be affected by their actions.
2) Safety of Employees - actions that must be taken by employers. Special duty of care towards young trainees.
3) Workplace - Fire & First Aid provisions.
4) Hazards and Risk Assessment requirements.
5) Visiting Sites - PPE, Lone working, Access provisions.
6) During Site Visits - Key hazards assessments including structures, roofs and contamination.
7) Safety of you and others - Everyone is to take responsibility of their own health & safety.
8) Legal Duties - Criminal Liability and CDM guidance.

Question 293

The construction industry is notorious for accidents and death on site and death; what measures are there to prevent this occurring?

Answer 293

There are various ways to prevent accidents on construction sites:-
1) Eliminate the risk of accidents occurring at the source for example … assembly on the ground instead of working at height.
2) Planning & programming of works.
3) Allowing sufficient time for the works to be constructed effectively.
4) Carrying out risk assessments, method statements & educating workers.
5) Training inductions & CSCS qualifications.
6) Ensuring safe working sites and access & egress points.

Question 294

Which accident kills the most operatives in construction?

Answer 294

Falls from height.

Question 295

What is the considerate contractors scheme?

Answer 295

CCS was set up in 1997 & is responsible for improving the image of construction.

It monitors all registered sites and ensures best practices are carried out in particular on items such as engaging with local communities and site cleanliness.

Question 296

What is the Health and Safety at Work Act 1974?

Answer 296

It is the primary piece of legislation governing H&S in the United Kingdom.

It places a statutory duty on all employers to provide and maintain equipment and systems of works that are safe and without risk to the health and safety of employees, or others who may be affected by their undertaking.

The Act aims to:
◦ Secure the health, safety and welfare of people at work.
◦ Protect others against risks to health and safety arising from work activities.
◦ Control dangerous substances.
◦ Control of emissions into the atmosphere.

Employers with 5 or more employees must have written health and safety documents detailing the organisations health and safety structure.

Question 297

What is the penalty for breach of the Health and Safety at Work Act?

Answer 297

Magistrates’ court - A fine of up to £20,000 or imprisonment for up to 6 months

Crown Court - An unlimited fine or imprisonment for up to 2 years

Very serious offenses - Up to five years in prison

Blatant disregard for employee welfare - Unlimited fines

Question 298

Please explain to me your approach when negotiating in challenging
circumstances?

Answer 298

◦ In the first instance I undertake detailed research on the matters under consideration and form an opinion.
◦ I will then look to compile supporting documentation as substantiation to any claims.
◦ Following these initial steps I arrange an internal meeting with the client and project team to discuss negotiable items which can be conceded in addition to the non-negotiable items.
◦ If needed I will prepare a SWOT analysis to support decision making
◦ During negotiations I try to develop a partnering approach rather than an adversarial one.
◦ My attitude and ethos is that the project must be the winner not individuals.

Question 299

What makes a successful negotiation?

Answer 299

◦ Preparation and collating supporting documentation.
◦ Each party should get the chance to present their case in a calm forum.
◦ Identification of bargaining positions and politely making proposals.
◦ A swift confirmation in writing on what was agreed at the meeting and confirmation on what items still need to be actioned and by whom.
◦ A confirmation of next steps to bring the negotiations to a close.

Question 300

What happens during a negotiation meeting?

Answer 300

◦ Both parties should be allowed to discuss their position on the items being discussed and their reasoning for their position.
◦ All parties should look to maintain professionalism, remain calm, acting with respect and courtesy at all times.
◦ The meeting should take place ideally in a calm setting.
◦ Both parties should honour the agreements reached for the benefit of the project.
◦ Once the negotiation items are agreed they should be put in writing as soon as possible.

Question 301

What are the four stages of negotiations?

Answer 301

• Preparation
• Exchanging Information
• Bargaining
• Finalising the Agreement

Consider the best interests of the project.

Question 302

Can you tell me 4 strategies for negotiation?

Answer 302

Justify the Position - Individuals should come to negotiations ready to back up their position, including research and a commitment to reaching a deal.

Consider the Other Side - Remember that the other side has things it wants out of the deal, too. Individuals should determine what they can offer to help them reach their goals without giving away more than they want to or can afford.

Keep Emotions in Check - It’s easy to get caught up in the moment and be swayed by personal feelings, especially anger and frustration. However, emotions cause negotiators to lose sight of the goal.

Know When to Walk Away - Know what to accept as a minimum and when to walk away. If both sides are hopelessly dug in, pausing negotiations gives everyone involved a chance to regroup and possibly return to the table with a fresh perspective.

Question 303

Please provide an example of when you had to handle difficult negotiations.

Answer 303

Dealing with the conflicted groundworks account at Harlow with contested variations of over £340,000

Question 304

Please provide an example of your oral communication skills.

Answer 304

◦ I have been responsible for providing a number of professional presentations.
◦ I have held site meetings with the contractor to discuss various issues & presented monthly reports within the meeting.
◦ I also use my oral communication and written communication skills when dealing with day-to-day issues on the phone, within meetings and on video call.

Question 305

What are your thoughts on using e-mail as a form of communication?

Answer 305

◦ E-mails carry the same legal value as a letter and contracts can be inadvertently created by e-mail.
◦ We must therefore be very careful with regards to the content and form of the e-mail communication.
◦ When issuing e-mails it is easy to become complacent as they are perceived as being informal.
◦ I am always sure to communicate in a professional manner even if other parties do not.
◦ I always make sure that I select the correct recipient and do not release someone’s e-mail addresses without their consent.
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Question 306

Which forms of communication are you aware of?

Answer 306

◦ Verbal either in person or via telephone.
◦ Non-verbal such as body language, eye contact, gestures and appearance.
◦ Written for example e-mails and letters.
◦ Graphical information such as charts, diagrams and tables.
◦ Presentations.
◦ Video conference.

Question 307

What are the barriers to effective communication?

Answer 307

◦ Verbal / mono-tone delivery or unclear delivery of speech.
◦ The over use of technical language that may not be understood by lay clients.
◦ Emotionally charged and heated conversations when parties are unable to listen.
◦ International language barriers.
◦ Disinterest and boredom.
◦ Prejudice.
◦ Bias.
◦ Interruptions and distractions.
◦ Background noise pollution.
◦ Poor call quality.
◦ Poorly maintained and adversarial relationships.

Question 308

Name some different forms of Alternative Dispute Resolution?

Answer 308

◦ Mediation.
◦ Conciliation.
◦ Negotiation.

Question 309

Name some formal methods of dispute resolution?

Answer 309

◦ Arbitration.
◦ Litigation.
◦ Adjudication.

Question 310

What would your considerations be prior to selecting a form of dispute resolution?

Answer 310

◦ The cost of dispute resolution in proportion to the claim being sought.
◦ The timescales involved.
◦ The impact on business relationships and reputation.

Question 311

What is Conciliation?

Answer 311

• The dispute resolution process is similar to mediation and relies on an independent third party to aid reaching an agreement.
• The conciliator has no authority to seek evidence or call witnesses.
• Conciliators are not able to make binding decisions.
• The conciliators’ role is to act primarily as the messenger and to encourage diplomacy.

Question 312

What is Mediation?

Answer 312

◦ This is an alternative form of dispute resolution and relies on bringing in an impartial third party to mediate and guide a decision.
◦ The mediator tries to encourage a coming together of parties in order to facilitate a decision as opposed to acting only as a messenger which is the key differentiator between mediation and conciliation.
◦ Mediation encourages the coming together of parties and reaching an agreement.

Question 313

What is dispute resolution?

Answer 313

Actions and processes taken to resolve contractual disagreements between parties.

Question 314

What is negotiation?

Answer 314

Negotiation is where the parties reach an agreement through an informal private or facilitated discussion.

Both parties will agree to settle the dispute either at a high level or in detail and agree to be bound by
this settlement.

Question 315

How did you prepare for your most successful negotiation?

Answer 315

I carried out extensive investigation into the items being claimed for, including detailed review of the cost breakdowns provided, correspondence with my predecessor, design changes and reviewed relevant contract to determine my assessment on what was due.

Question 316

What could indicate the success of a negotiation on a final account?

Answer 316

◦ Both parties are satisfied with the outcome and feel that a fair and reasonable compromise was reached.
◦ A partnering approach is adopted with both parties feeling as though their long-term relationships and reputations have been maintained.

Question 317

What is adjudication?

Answer 317

◦ Adjudication is a statutory form of dispute resolution procedure available in the United Kingdom.
◦ It is a relatively simple and efficient method of resolving disputes without engaging in lengthy and expensive court proceedings.
◦ Adjudication relies on an independent third party who considers the claims of both parties.
◦ A binding decision is made by the adjudicator which can be appealed either through litigation or arbitration.
◦ It has the advantage of being time sensitive with a decision being made within 28 days.

Question 318

What enforces the requirement for a building contract to contain provisions for adjudication?

Answer 318

Housing grants, Construction and Regeneration Act 1996 (Construction Act).

Question 319

Which contracts does adjudication apply to?

Answer 319

It applies to all construction contracts entered into after the Act commenced within England, Scotland and Wales.

Question 320

What if a building contract does not contain provisions for adjudication?

Answer 320

Parties still have the statutory right to adjudication assuming the contract qualifies under the construction act.

Question 321

Please explain your understanding of the arbitration process?

Answer 321

◦ Arbitration is a procedure for the resolution of disputes which is under the control of the parties.
◦ Certain conditions must be met for example a genuine dispute or difference between the parties must have occurred with an award being capable of enforcement.
◦ A binding agreement must be reached to escalate the matter to arbitration.
◦ The proceedings are undertaken in a private setting meaning the reputations of both parties can be preserved to an extent.

Question 322

Can you explain in detail the difference between arbitration and litigation procedures?

Answer 322

Arbitration
◦ Arbitration is governed by the Arbitration Act 1996.
◦ In order to arbitrate there must be an agreement to enter into arbitration by both parties.
◦ Parties have a wide degree of discretion as to how the proceedings are conducted.
◦ Procedures are similar to litigation with formal submissions by both parties, expert evidence, hearings and a decision by the arbitrator.
◦ It is a private process.

Litigation
◦ Litigation differs in that proceedings are conducted in court.
◦ It is a public process that follows civil procedure rules.
◦ Despite having high costs the process can deal with multi-party disputes and civil procedure rules which aim for accessibility, speed and efficiency.

Question 323

What is COP26 and what does COP stand for?

Answer 323

COP is the Conference of the Parties and is attended by countries that signed the United Nations Framework Convention on Climate Change (UNFCCC) - a treaty agreed in 1994.

The 2021 meeting was the 26th meeting which is why its called COP26.

Question 324

What happened at COP26?

Answer 324

At COP26 a newly established Glasgow Financial Alliance was announced for Net Zero carbon emissions of $130 trillion of private capital to accelerate the transition to a net-zero carbon economy.

The private sector is now under more intense scrutiny from both clients and institutional investors on ensuring net-zero commitments are robust and legitimate.

There are new requirements for all listed companies in the UK to produce net-zero transition plans by 2023.

Question 325

Please explain your understanding of the term sustainability?

Answer 325

Sustainability consists of fulfilling the needs of current generations without compromising the needs of future generations, while ensuring a balance between economic growth, environmental care and social well-being.

Question 326

What are the key principles of sustainability?

Answer 326

Social - Building healthy communities with sufficient numbers and range of buildings.

Economical - Build strong, responsive, competitive economies ensuring sufficient land and right types.

Environmental: - Contributing towards the protection and enhancement of our natural, built and historic environment.

Question 327

What are the core principles of Planning and Decision making around sustainability?

Answer 327

◦ Creative processes should be used not just scrutiny.
◦ Proactive steps should be taken to achieve sustainable development.
◦ Secure the development of high quality built assets.
◦ Account for the character of the surrounding area.
◦ Support a climate-resilient and low-carbon economy.
◦ Conserve & enhance natural environment and reduce pollution.
◦ Encourage use of brownfield sites.
◦ Conserve heritage.
◦ Maximise use of public transport, cycling and walking.
◦ Support health, social and cultural well-being.

Question 328

What are the most common environmental issues experienced on construction sites?

Answer 328

◦ Risks of Water Pollution.
◦ Air and Noise Pollution.
◦ High Energy Consumption and carbon emissions.
◦ Risk of land contamination.
◦ Damage to wild habitats.
◦ High Wastage production into landfill.
◦ Release of dangerous gases and chemicals.

Question 329

What are the key pieces of legislation that affect sustainability in construction?

Answer 329

◦ Agricultural Land Act - Enables land to be acquired for a particular purpose for example to control pests and weeds, for use as woodlands or to support agricultural activities.

◦ Building Act - This is the primary piece of UK Legislation that enables the Building Regulations to be enforced. This is to assist in the conservation of fuel and power, to prevent waste, misuse or contamination of water and to ensure those in and around buildings are kept safe.

◦ Clean Air Act - This legislation provides local authorities within England to introduce measures in order to control air pollution.

◦ Climate Change Act - This is a legally binding framework to tackle climate change. It imposed targets to cut greenhouse emissions compared with 1990 levels 34% by 2020 and 80% by 2050.

Question 330

What are the Key Building Regulations that relate to sustainability in construction?

Answer 330

◦ Building Regulations Part L - Conservation of Fuel and Power.
◦ Energy Performance of Buildings Regulations.
◦ Requires that EPC’s are produced for dwellings and non-dwellings.
◦ Quantifies energy efficiency of buildings.
◦ Required when buildings are built, sold or rented.
◦ Commercial buildings over 500 sqm. and frequented by the public need to display a display energy certificate (DEC) based on actual energy used.

Question 331

What are the different forms of taxation relating to sustainability?

Answer 331

◦ Landfill Tax which is an environmental tax payable in addition to landfill rates charged by private disposal companies.

• Plastic Packaging Tax

◦ The tax was introduced as a means to encourage alternative methods of disposal such as recycling.

◦ The tax is charged by weight at varying rates depending on whether the waste is inert or active.

Question 332

What different code of practice are you aware of for measuring sustainability?

Answer 332

◦ BREEAM (Life Cycle Assessment).
◦ Sets best practice standards for the environmental performance of buildings through specification, design, construction and operation.
◦ BREEAM Stands for the Building Research Establishment Environmental Assessment
Method.
◦ The assessment is undertaken by a licensed assessor based on energy, land & ecology, water, health & wellbeing, pollution, materials and waste and management.
◦ BREEAM applies to new and refurbishment projects, domestic and non-domestic.
◦ Rating are:
◦ Outstanding.
◦ Excellent.
◦ Very Good.
◦ Good.
◦ Pass.
◦ Unclassified.
◦ SKA Ratings
◦ An RICS Environmental assessment method for non-domestic fit outs such as office refurbishments.

Question 333

What procedures does your firm implement to promote sustainability?

Answer 333

◦ Recycling of cardboard, paper and plastics.
◦ Use of Energy efficient lighting (motion sensors).
◦ Energy efficient equipment (LED lamps, energy efficient monitors).
◦ All company cars are to be EV’s by 2025.
◦ Cycle to work schemes.
◦ Reduce printing by using cloud-based systems.
◦ Charitable contributions (tree planting / environmental programmes).
◦ Sign up to Green initiatives and codes of practice (use office space with high EPC / BREEAM ratings).

Question 334

What is the Paris Agreement?

Answer 334

◦ The Paris Agreement is a legally binding international treaty concerning climate change.
◦ It was adopted by nearly every nation and came into affect in 2016.
◦ The goal of the Paris Agreement is to limit global warming to well below 2 degrees Celsius whilst targeting levels below 1.5 degrees Celsius when compared to pre-industrial levels.
◦ The agreement commits all major emitting countries to cut their climate pollution.
◦ It also creates a framework for the transparent monitoring and reporting of each individual countries progress.

Question 335

Name some sustainable building methods?

Answer 335

◦ Use of recycled materials such as reclaimed timber, recycled tiles and plastics.
◦ Ground Source Heat Pumps.
◦ Air Source Heat Pumps.
◦ Solar Panels.
◦ Wind Turbines.
◦ Solar Shading.
◦ Rain water harvesting.
◦ Green Roofs.
* Automated Building Systems (Lighting sensors).

Question 336

What is your understanding of the term ‘Green Roofs’?

Answer 336

◦ A green roof is a roof covering that is partially or completely covered with vegetation that is placed over a waterproof membrane.
◦ Additional layers such as drainage layers, irrigation systems or root barriers may also be placed over the membrane.
◦ Rooftop ponds are an alternative form of green roof which are used to treat grey water.
◦ The vegetation, soil, drainage layer, root barriers and irrigation system are typically the key components of a green roof.
◦ Advantages of Green Roofs are that they absorb rainwater, provide extra insulation, increase biodiversity by providing habitats for wildlife, are aesthetically pleasing and lower urban air temperatures.

Question 337

What are Photovoltaics and how do they work?

Answer 337

◦ Photovoltaics allow the conversion of sunlight into electricity.
◦ Sunlight contains energy known as photons.
◦ When photons hit solar modules within the solar panel they cause electrons to flow through the bottom layer.
◦ The movement of electrons generates electricity that flows to an inverter.
◦ The inverter converts DC electricity into AC that is then used to power the building.

Question 338

What is a soakaway and how do they work?

Answer 338

◦ Soakaways offer a means of surface water drainage attenuation.
◦ They consist of large holes or pits that receive surface water from a drainage pipe.
◦ The soakaway allows the collected surface water to gradually infiltrate through the soil.

Question 339

◦ Soakaways offer a means of surface water drainage attenuation.
◦ They consist of large holes or pits that receive surface water from a drainage pipe.
◦ The soakaway allows the collected surface water to gradually infiltrate through the soil.

Answer 339

◦ Carbon neutrality is to have a balance between the carbon emitted and the carbon absorbed from the atmosphere in carbon sinks.
◦ This is an important measure of the impact that businesses and projects have on the environment and global warming.
◦ To date no artificial carbon sinks are able to remove carbon from the atmosphere at the levels required to offset global warming.

Question 340

What is construction to ‘shell and core’?

Answer 340

◦ Shell and core is the basic structure, services and envelope of the building.

◦ This normally includes the fit out of landlord and common areas for example the reception, toilets, lifts & stair cores.

◦ Base services are typically terminated at entry points to each of the lettable floor plates however life safety services infrastructure is normally provided.

Question 341

What is a CAT A fit out?

Answer 341

◦ CAT A is also known as a developer’s fit out.

◦ This provides generic fit-out items to suit most developers for example life safety elements and basic fittings such as suspended ceiling tiles, raised floors, carpets, lighting and power distribution to floor plates.

Question 342

What is a CAT B fit out?

Answer 342

◦ A CAT B fit out overlays the CAT A provision with bespoke elements that are specific to the needs of the building’s user to enable the tenant to occupy and use the space.

◦ This would typically include partitions, power distribution to floor boxes, data cabling, artwork and branding, upgrading CAT A finishes and toilet finishes.

Question 343

Where could you find the definitions for Fit Out CAT A and CAT B?

Answer 343

The British Council of Offices (BCO) fit-out guide.

Question 344

What is BWIC?

Answer 344

◦ BWIC stands for Builders Work In Connection and is usually set as a percentage of the services cost.

◦ BWIC accounts for the Main Contractor to perform any drilling, fixing, cutting and penetrations to enable the services installation.

Question 345

What is an order of cost estimate?

Answer 345

◦ Under NRM this is described as the determination of the possible cost of a building early in design stage in relation to the employer’s fundamental requirements.z

◦ This takes place prior to preparation of a full set of working drawings or bills of quantities and forms the initial build-up to the cost planning process.

Question 346

What is the purpose of an order of cost estimate?

Answer 346

◦ To establish if the proposed building project is affordable and, if affordable, to establish a realistic cost.

◦ The cost limit is the maximum expenditure that the client is prepared to spend on the proposed building project.

Question 347

What is the format of a feasibility estimate or order of cost estimate?

Answer 347

◦ This can be presented on a cost per m2, functional unit or elemental basis.

◦ It may also be presented as a range for example £700-£850/m2.

◦ This may consist of element rates for the main elements of the building for example Substructure, Frame, External Walls, Upper Floors & Roof.

◦ Any site abnormal costs or enabling works are also considered

◦ Other inclusions are Preliminaries, Contingency, Inflation and location factor adjustments.

Question 348

What is a functional unit?

Answer 348

◦ A functional unit is a unit of measurement that considers the prime use of the building.

◦ For example in the construction of a hotel or hospital the functional unit may be presented as a cost per bedroom or cost per bed.

◦ In a retail estimate the functional unit would be presented as the net lettable retail space.

Question 349

Where would you get your rates from for a preliminary estimate?

Answer 349

◦ Previous similar projects and historical cost data such as previous tender submissions or a contract sum analysis.

◦ Other sources may include estimating price books such as Spons or Laxtons, the Building Cost Information Service or specialist contractors.

Question 350

What is the purpose of a cost plan?

Answer 350

◦ It is used by the cost consultant to control the development of the design.

◦ It identifies the client’s agreed cost limit and how the money is to be allocated to the different elements of the building.

Question 351

When would you do a cost plan?

Answer 351

◦ A formal cost plan is typically issued between RIBA Work Stage 2 to Stage 4.

◦ At stage 2 the Concept Design is made available and the cost plan may be produced at a fairly high level. The Cost Plan may be broken down into the different elements of the building based on an outline specification and Architectural concept drawings.

◦ At stage 3 the Spatial co-ordination of the building is undertaken, the schedule of accommodation may be adjusted and the cost plan is updated to reflect this accordingly.

◦ At stage 4 the technical design is made available and cost plan updated to reflect the Architect and Engineering technical designs. Specialist subcontractor designs may also be made available to support with refinement of the project costs.

◦ The cost plan at Stage 4 will typically form the basis of a pre-tender estimate to compare tender submission against although this is no longer referenced within the RIBA Plan of Work.

Question 352

What are the principal components of a cost plan?

Answer 352

◦ Construction costs.
◦ Preliminaries.
◦ Contractor’s OH&P.
◦ Contingency.
◦ Inflation.
◦ Assumptions.
◦ Exclusions.
◦ Area Schedule.
* List of Drawings & Specifications adopted.

Question 353

Name the main elements of an elemental estimate?

Answer 353

◦ Excavation.
◦ Disposal.
◦ Foundations.
◦ Substructure.
◦ Superstructure.
◦ Frame.
◦ Upper floors.
◦ External walls.
◦ Roof.
◦ Internal finishes.
◦ Services.
◦ External works.

Question 354

What is usually excluded from a cost estimate?

Answer 354

◦ Professional fees.
◦ VAT.
◦ Client decant costs.
◦ Loose fixtures and fittings.
◦ Inflation.
◦ Site acquisition costs.
◦ Section 106 Agreement.
◦ Removal of asbestos.

Question 355

Why is VAT excluded from cost estimates?

Answer 355

• Because different clients will incur different levels of VAT, for example charities may not be subject to VAT
• We would not be in a position to know the correct rate unless informed of it.

Question 356

How do you take account of inflation when preparing a cost estimate?

Answer 356

I take into account inflation through the use of Tender Price Indices and include adjustments for Construction Inflation and Tender Price Inflation.

Question 357

What time period would Construction Inflation be included for in a cost estimate?

Answer 357

I would allow for Construction inflation from the anticipated start of the project to the mid-way point of the project.

Question 358

What time period would Tender Price Inflation be included for in a cost estimate?

Answer 358

I would allow for Tender Price inflation from the estimate base date to the anticipated tender return date.

Question 359

What is meant by the base date within a cost estimate?

Answer 359

The base date refers to the date on which rates and prices contained within a cost estimate are based on.

These are included for the basis of calculations for example if adjusting the rates for inflation in the future, the base date can be used as the starting point from which inflation would be adjusted.

Question 360

What does TPI stand for?

Answer 360

Tender Price Indices

Question 361

What do TPIs show?

Answer 361

◦ They reflect changes in the level of tender prices over a period of time.

◦ The price adjustments take into account the level of inflation depending on current and forecast market conditions.

Question 362

Where can you obtain Tender Price Index information from?

Answer 362

◦ The service I use to obtain Tender Price Indices is the Building Cost Information Service.

◦ Larger cost consultancies also produce their own in-house tender price forecasts.

Question 363

When considering inflation, do you need to take account of location?

Answer 363

◦ Inflation needs to be accounted for to anticipate the changes in the prices of labour, plant and materials.

◦ We need to account for inflation from the date the cost estimate is produced to the anticipated start date of the project.

◦ This is to ensure accuracy of the estimate for the client and to ensure the project remains within the cost limit that has been established.

Question 364

What does BCIS stand for?

Answer 364

Building Cost Information Service

Question 365

What is this BCIS?

Answer 365

The BCIS provides construction cost and price information through publications, online services and price books.

Question 366

Where do you get cost information from?

(Cost data)

Answer 366

◦ Previous Tender Submissions.
◦ Previous Contract Sum Analysis.
◦ Benchmarks.
◦ BCIS.
◦ Building cost models.
◦ SPONS and other price books such as Laxtons.
◦ Specialist sub-contractors and suppliers.

Question 367

What do you understand by the term VE?

Answer 367

◦ VE stands for Value Engineering.

◦ VE is an organised approach aimed at providing the necessary functions of the building taking into account the clients objectives at the lowest cost, without detrimental affects to quality, reliability, performance or delivery.

Question 368

What do you understand by the term VM?

Answer 368

◦ Value Management is the proactive process of defining what value means to a client and putting procedures in place to ensure that maximum value is delivered for the client, first time.

◦ In comparison, Value Engineering forms one of the processes under Value Management and is a reactive procedure to bring the anticipated cost of the development back in line with the project budget when a potential overspend is identified.

Question 369

What is value, what does value mean?

Answer 369

◦ Value is a measure of worth taking into account the overall usefulness and benefits that are delivered in relation to cost being paid for it.
◦ Value is a complex concept and means different things to different clients.
◦ For example a short term developer looking to sell a building on completion will place greater value on a cheaper out-turn cost whereas a developer occupier may place more importance on a higher quality building with lower operating costs.

Question 370

What are the phases of the VE process?

Answer 370

Information phase.
◦ Understanding the clients objectives around value.
◦ Defining the clients objectives and key criteria governing the project.
◦ Understanding background decisions that have influenced the design development of the project.

Speculation phase.
◦ Listing creative ideas to generate a lesser capital or life cycle cost.
◦ Generating ideas to provide the necessary functions of the building at the most efficient price.
◦ Judgement of each of the ideas is prohibited.

Evaluation Phase.
◦ The criteria for evaluation of the ideas generated during the speculation phase are defined.
◦ Each of the ideas are assessed against the evaluation criteria.
◦ The ideas that are considered to offer the greatest potential cost savings and value improvement are retained.
◦ The ideas considered not worthy or impractical are discarded.

Development Phase
◦ Ideas retained from the evaluation phase are developed and expanded into workable solutions.
This will include developing a description of the proposed design change with advantages and disadvantages.
◦ Cost comparisons and design calculations will be undertaken as part of the development phase.

Presentation Phase.
◦ The retained ideas are presented to the client in a written report.
◦ A briefing or verbal presentation may also be provided to build the clients understanding.
◦ The rationale and background on why the proposals are being recommended is explained.
◦ As well as referencing monetary benefits, a wider communication of delivering the clients specific objectives should be provided.
◦ Decisions are taken by the client and design team on what proposals are accepted or discarded.

Question 371

Why is VM needed?

Answer 371

◦ Each construction client has their own specific objectives and definition of what value means to their organisation.

◦ Client organisations are sometimes made up of different working groups with contrasting priorities.

◦ If agreements concerning the definition of value are not reached then chances of perceived failure of the project increases.

◦ VM is needed to reach an agreement on what value is defined as and to reach a shared understanding on the objectives that are being sought.

Question 372

What are life cycle costs?

Answer 372

The costs that will be incurred over a defined period of operating and maintaining a building or an asset including repair, maintenance, replacement, cleaning, decorating, services provision and disposal.

Question 373

What are the advantages of life cycle costing?

Answer 373

◦ Life cycle costing allows consideration of the long-term implications of a decision.

◦ It enables informed decisions to be made on material selection.

◦ Life cycle costing can result in lower operational, maintenance and replacement costs.

◦ It can also be used to plan future maintenance requirements ensuring easier access and less disruption to the operation of the building.

Question 374

What are the disadvantages of life cycle costing?

Answer 374

◦ Future costs are optional and the costs of maintenance can always be deferred.

◦ Components are not always replaced due to end of life which is impossible to assess at design stage.

◦ The cost of defects caused by bad workmanship and design faults cannot be predicted.

◦ It is hard to predict life spans, future inflation and maintenance requirements over long periods.

Question 375

What costs should be considered in life cycle costing?

Answer 375

◦ Capital costs.
◦ Operational costs.
◦ Maintenance costs.
◦ Replacement costs.
- disposal costs

Question 376

Where can you get information about maintenance costs?

Answer 376

• Building Maintenance Cost Information Service (BMCIS) - part of BCIS.
• From sub-contractors and suppliers.

Question 377

How does the payback period method work?

Answer 377

◦ It judges an investment in terms of the time period over which the invested sum is returned in cost savings.

◦ The increased expenditure on a higher quality component is viewed as the investment and the saving provided in the form of future costs is viewed as the ‘revenue.

◦ The best option would be the one that repaid the investment in the shortest time.

Question 378

What sort of materials is the payback period method used for?

Answer 378

◦ This is often used to evaluate the options for incorporating sustainable technologies.

◦ It is considered suitable for elements that have a very high initial capital cost but will pay back this initial investment over a period of time in terms of reduced running costs.

Question 379

Why might a client accept higher capital costs?

Answer 379

• For prestige reasons.
• When considering that the replacement or repair may be inconvenient even if the solution is cheaper.

Question 380

How does the Terrorism Act 2000 impact the construction industry?

Answer 380

Risk of imprisonment for persons who fail to disclose varying degrees of knowledge, belief or suspicion of the commission by others of terrorist offences.

Question 381

When is the assigned risk pool available?

Answer 381

The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS

Question 382

What companies provide insurance under the assigned risk pool?

Answer 382

RICS listed insurers

Question 383

How long can you be in the assigned risk pool?

Answer 383

This is reviewed on a yearly bases

Question 384

How can you become part of the assigned risk pool?

Answer 384

You apply to RICS.

Question 385

What was discussed in your Countering bribery, corruption, money laundering and terrorist financing training?

Answer 385

• Importance of background checks on companies
• Using approved supply chain
• Principals of the bribery act
• Not accepting money in cash

Question 386

What regulation covers money laundering?

Answer 386

Money Laundering Regulations 2017

Question 387

What are the main principals of the Money Laundering Regulation 2017?

Answer 387

Taking additional measures, to prevent money laundering or terrorist financing in relation to products and services.

Taking appropriate steps to assess and mitigate the risk of money laundering and terrorist financing when you adopt new technology.

Regulated businesses (“relevant persons”) to apply enhanced customer due diligence measures and enhanced ongoing monitoring in any business relationships with a person established in a high-risk third country or in relation to any relevant transaction where either of the parties to the transaction is established in a high-risk third country. The MLR defines countries and areas that are considered high-risk.

They aim to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach.

Firms must put measures in place to identify their clients and monitor how they use their services.

Question 388

What are companies meant to implement to reduce risk on money laundering in line with the Money Laundering Regulations 2017?

Answer 388

• Appoint a member of senior management to be responsible for compliance
• Screening of employers prior to appointment
• Independent audit
• Training of staff
• Customer due diligence

Question 389

What is customer due diligence under the Money Laundering Regulations 2017?

Answer 389

• Identify and verify your client
• Identify and verify benefit owners of the client
• Obtain information on purpose and intended nature of business relationship/transaction.
• Identify and verify person acting on behalf of the client

Enhanced due diligence can be undertaken for those in high-risk areas, those who are politically exposed person and their family members.

Simplified due diligence can be undertaken when the client is low risk.

Question 390

Who does the Money Laundering Regulations 2017 apply to?

Answer 390

RICS Members
Lawyers
Accountants
Auditors
Tax Advisors

Question 391

What are the main principals of the criminal finances act 2017?

Answer 391

Under this legislation a firm can be criminally liable if a person associated with it enables evasion of UK or foreign tax, for instance by deliberately providing a false valuation of a property.

Question 392

Who must a firm inform if they have suspicions of money laundering or terrorist financing?

Answer 392

An employee of a firm in the regulated sector could comply with UK law by advising the firm’s reporting officer of any suspicions, but to comply with the RICS professional statement they must report it to the police or NCA (National Crime Agency) as well.

Question 393

Who are the NCA?

Answer 393

National crime agency

Question 394

What was the GDPR training you undertook?

Answer 394

This was the UK GDPR training looking at key principals of the regulation.

Question 395

When did the GDPR UK come into force?

Answer 395

January 2021.

Question 396

What was in place before this date?

Answer 396

EU GDPR - If you hold any overseas data collected before 01 January 2021 (referred to as ‘legacy data’), this will be subject to the EU GDPR.

Question 397

What is GDPR?

Answer 397

General Data Protection Regulation

Question 398

What is the consequence of breach of GDPR?

Answer 398

Failure to comply with the UK GDPR may leave you open to substantial fines. There are two tiers of fines: a maximum fine of £17.5 million or 4 per cent of annual global turnover - whichever is greater - for infringement of any of the data protection principles or rights of individuals.

Question 399

Why did you provide the subcontractors all with the same information?

Answer 399

To ensure each subcontractor had the same opportunities and to ensure transparency and honesty.

Question 400

What advice would you give somebody if they asked how they can act with integrity?

Answer 400

• Be honest.
• Do the right thing – morals

Question 401

What are the benefits of managing client expectations in terms of quality, cost and functionality?

Answer 401

Creates successful working relationship and repeat works.

Client is not left dissatisfied as was informed and expectations were managed throughout the project.

Question 402

What are key performance indicators?

Answer 402

A quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.

Question 403

How did you actually ensure that the client was satisfied with your service?

Answer 403

• Continuous feedback throughout regular meetings
• workshop on feedback before, during and after project
• Key accounts manager

Question 404

If I asked what client care actually is, what would you tell me?

Answer 404

Meeting the clients needs in terms of quality, time and cost, and where this is not possible managing expectations and being honest and transparent.

Question 405

What is your firms Complaints Procedure?

Answer 405

Complaints are initially dealt with by the Head of Customer Service, who may refer them to the Managing Director.

Complaints will be acknowledged within 3 working days

A comprehensive response will be issued within 15 working days.