Ethics, RICS and Hot Topics Flashcards
What are the updates to the Building Safety Act?
The BSA update in 2022 had updates come into play from October 2023 and more recently April 2024. Key updates include:
- New Duty holder responsibilities - The Act introduces new roles and responsibilities for all stakeholders in construction projects, including principal contractors and designers.
- Building Control Systems for higher risk buildings buildings over 18m in height. The Building Safety Regulator (BSR) is now their building control authority.
- Golden thread of information - Higher risk buildings must maintain a digital, secure and easily accessible ‘golden thread’ of information throughout their lifecycle.
- Safety Case Reports are mandatory for higher risk buildings.
- Mandatory Occurrence Reporting.
- Fire Safety Regulations - Amendments have been made to enhance cooperation and coordination among responsible persons and improve the recording and sharing of fire safety information.
- Building safety levy.
- Transitional arrangements
What is the role of the PD for Building Regs?
Planning, Managing, and Monitoring: The PD is responsible for planning, managing, and monitoring the design work during the design stage to ensure compliance with building regulations.
Coordination: They must coordinate with other duty holders, such as the Principal Contractor, to ensure effective communication and information sharing.
Higher-Risk Buildings: For higher-risk buildings, the PD must implement processes to support mandatory occurrence reporting systems
What are the client responsibilities under CDM?
Under the Construction (Design and Management) Regulations (CDM) 2015, clients have several key responsibilities to ensure health and safety throughout a construction project. Here are the main duties:
Appointing Duty Holders: Clients must appoint a Principal Designer and a Principal Contractor for projects involving more than one contractor.
Pre-Construction Information: Clients need to provide relevant pre-construction information to designers and contractors. This includes details about the site, existing structures, and any potential hazards.
Construction Phase Plan: Ensure that the Principal Contractor prepares a construction phase plan before the construction phase begins.
Health and Safety File: Clients must ensure that the Principal Designer prepares a health and safety file, which should be updated as necessary and made available for future work on the building.
Welfare Facilities: Clients must ensure that suitable welfare facilities are provided for workers throughout the construction phase.
Notification: For notifiable projects (those lasting longer than 30 working days with more than 20 workers simultaneously, or exceeding 500 person-days of work), clients must notify the Health and Safety Executive (HSE) in writing.
Management Arrangements: Clients must make suitable arrangements for managing the project, including allocating sufficient time and resources to ensure health and safety.
Monitoring and Review: Clients should maintain and review these arrangements throughout the project to ensure ongoing compliance with health and safety requirements.
These duties are designed to ensure that health and safety considerations are integrated into the planning and execution of construction projects from the very beginning.
When is a project notifiable?
Projects lasting longer than 30 working days with more than 20 workers simultaneously or exceeding 500 person days of work and the HSE need to be notified in writing.
What are the firms obligations under the bribery act?
Under the UK Bribery Act 2010, firms have several key obligations to prevent and address bribery.
Prohibition of Bribery: Firms must not engage in bribing another person or being bribed. This includes offering, promising, or giving a financial or other advantage to induce or reward improper performance of a relevant function or activity
Bribery of Foreign Public Officials: It is an offence to bribe foreign public officials to obtain or retain business or a business advantage
Corporate Offence of Failing to Prevent Bribery: Firms can be held liable if they fail to prevent bribery by persons associated with them, such as employees, agents, or subsidiaries. This applies if the bribery was intended to obtain or retain business or a business advantage for the firm
Adequate Procedures: To defend against the corporate offence, firms must demonstrate that they had adequate procedures in place to prevent bribery.
Penalties: Non-compliance with the Bribery Act can result in severe penalties, including unlimited fines, removal of tainted proceeds, debarment from public sector contracts, and potential imprisonment for individuals involved
What are the 4 offences under the bribery act 2010?
- General offence of bribing
- General offence of being bribed
- Offence of bribing a foreign public official
- Corporate offence of failing to prevent bribery by persons associated with relevant commercial organisations
What should you do if a client asks to pay all fees up front?, this isn’t unusual as clients have spending deadlines
When a client asks to pay all fees upfront, it’s important to handle the situation professionally and transparently. Here are some steps you can take:
Understand the Client’s Needs: Acknowledge that clients might have spending deadlines and explain that you understand their urgency.
Assess the Risk: Consider the potential risks involved with accepting full payment upfront. This includes evaluating the client’s reliability and the scope of the project.
Set Clear Terms: If you decide to accept the upfront payment, ensure that all terms are clearly outlined in a written agreement. This should include the total amount, payment method, and any conditions related to refunds or cancellations.
Provide a Detailed Invoice: Issue a detailed invoice that breaks down the fees and specifies that the payment is being made upfront. This helps maintain transparency and avoids any misunderstandings.
Maintain Communication: Keep the client informed about the progress of the project. Regular updates can help build trust and reassure the client that their investment is being managed responsibly.
Consider Partial Payments: If you’re uncomfortable with accepting the full amount upfront, propose a compromise such as a partial payment or milestone-based payments. This can help manage cash flow and reduce risk.
Use Secure Payment Methods: Ensure that the payment method is secure and reliable. This protects both you and the client from potential fraud3.
By following these steps, you can accommodate the client’s request while protecting your business interests
What is neurodivergent?
The term neurodivergent describes individuals whose brains function differently from what is considered typical or “neurotypical.” This can include variations in how they process information, learn, and behave. Neurodivergence is not a medical diagnosis but rather a way to recognize and embrace these differences.
Who does RICS say can provide the PII
The Royal Institution of Chartered Surveyors (RICS) requires that professional indemnity insurance (PII) for RICS-regulated firms must be obtained from a listed insurer. These insurers must meet specific criteria, including having a minimum security rating. Specifically, they need to be rated by either:
- AM Best with a credit rating of at least B+
- Standard & Poor’s with a credit rating of at least category BBB1
RICS maintains a list of approved insurers who meet these requirements and have agreed to provide cover in accordance with the RICS Approved Minimum Policy Wording
What are the minimum levels of PI cover?
The minimum levels of Professional Indemnity (PI) cover required by the Royal Institution of Chartered Surveyors (RICS) depend on the firm’s turnover in the preceding year. Here are the specifics:
Turnover up to £100,000: Minimum cover of £250,0001.
Turnover between £100,001 and £200,000: Minimum cover of £500,0001.
Turnover above £200,001: Minimum cover of £1,000,000
Difference between financial and management accounts
In summary, financial accounting focuses on providing a historical financial overview to external stakeholders, while management accounting is more concerned with providing detailed, forward-looking information to help internal management make informed decisions.
What are the 6 principles of the bribery act?
- Proportionate Procedures: Measures should be proportionate to the bribery risks faced and the nature, scale, and complexity of the firm’s activities
- Top-Level Commitment: Senior management must be committed to preventing bribery and fostering a culture of integrity.
- Risk Assessment: Firms should regularly assess the nature and extent of their exposure to potential external and internal bribery risks.
- Due Diligence: Appropriate due diligence should be conducted on persons performing services on behalf of the firm.
- Communication and Training: Firms must ensure that their anti-bribery policies are communicated and understood throughout the organization, and provide training where necessary.
- Monitoring and Review: Firms should monitor and review their anti-bribery procedures and make improvements where necessary.
What are the updates to the JCT 2024 edition of contracts?
The Joint Contracts Tribunal (JCT) has introduced several significant updates in the 2024 edition of its contracts. Here are some of the key changes:
Gender neutral language to be more inclusive.
Sustainable Development and Environmental Considerations: Sustainability clauses have been integrated into the main contract, encouraging contractors to propose amendments that improve environmental performance.
Extension of Time review by CA from 12 weeks to 8 weeks to make a decision.
Extension of Time and Unforeseen Conditions: The process for granting extensions of time has been streamlined, and new provisions have been added for epidemics, changes in law.
Pandemic now accepted as relevant event or force majeure.
Target Cost Contract: A new Target Cost contract has been introduced.
Building Safety: Updates reflect legislative changes, including the Building Safety Act 2022, with new roles and responsibilities for duty holders.
How does the new JCT 2024 updates relate to covid?
he JCT 2024 updates have incorporated several changes that reflect the lessons learned from the COVID-19 pandemic. Here are some key points:
Epidemic as a Relevant Event: The new contracts include “epidemic” as a relevant event, which can be grounds for an extension of time. This addition acknowledges the potential for future pandemics and aims to provide clearer guidance on handling such disruptions.
Changes in Law: The provisions for changes in law have been broadened to cover a wider range of situations, including government guidance. This change addresses the issues experienced during COVID-19, where delays were often caused by new guidance rather than formal changes in law.
Force Majeure: The definition of force majeure has been expanded to explicitly include pandemics and epidemics. This ensures that parties can claim relief for delays and disruptions caused by such events.
Health and Safety: Enhanced health and safety provisions have been included to ensure that projects can continue safely during health crises. This includes requirements for risk assessments and the implementation of appropriate health measures.
These updates aim to make the contracts more resilient and adaptable to future health crises, ensuring that projects can better manage the risks and uncertainties associated with pandemics.
What is unconscious bias?
Unconscious bias refers to the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner. These biases are automatic and often operate outside of our conscious awareness, influencing how we perceive and interact with others based on characteristics such as race, gender, age, and more
How can you check a contractors financial status?
Checking a contractor’s financial status is crucial to ensure they are reliable and capable of completing your project. Here are some steps you can take:
Credit Report: Obtain a credit report from Dun and Bradsheet. This report will provide an objective assessment of the contractor’s financial track record.
Payment History: Look up the contractor’s payment history. This can give you insights into their reliability in paying suppliers and subcontractors.
Financial Statements: Request recent financial statements from the contractor, including balance sheets, income statements, and cash flow statements. This will help you assess their financial health.
Credit References: Ask for contact information for companies that supply building materials to the contractor. Check with these suppliers to see if the contractor pays their bills promptly.
Public Records: Search for any public records of financial issues, such as liens, judgments, or bankruptcies. This can be done through local court records or online databases.
Professional References: Contact recent clients and subcontractors to get feedback on the contractor’s financial reliability and overall performance
If you are a sole practitioner, who would review a complaint that you receive?
As a sole practitioner, handling complaints can be challenging since you don’t have colleagues to review the issue. Here are some steps you can take:
Initial Review: You should first review the complaint yourself, ensuring you understand the concerns raised and gather all relevant information.
Independent Review: If possible, seek an independent review from a trusted peer or another professional in your network. This can provide an objective perspective and help ensure fairness.
Professional Bodies: Utilize resources from professional bodies such as the Royal Institution of Chartered Surveyors (RICS) or the Royal Institute of British Architects (RIBA). They often provide guidance and support for handling complaints.
Alternative Dispute Resolution (ADR): If the complaint cannot be resolved internally, consider referring the matter to an ADR provider. This can offer a neutral platform for resolving disputes without resorting to litigation.
Documentation: Keep detailed records of the complaint, your investigation, and any communications with the complainant. This documentation is crucial for transparency and accountability.
By following these steps, you can manage complaints effectively, even as a sole practitioner.
How do the RICS ensure that standards and quality are maintained in terms of both the conduct and advice provided by chartered surveyors?
RICS has rules of conduct for members and firms.
Please give your opinion on why the RICS have rules of conduct?
- Consistency of service and approach
- Rules will help members to act in a professional way
What is the RICS Code of Conduct for members and firms?
- Be honest and act with integrity and comply with professional obligations including those of the RICS.
Have the rules of conduct been updated?
The RICS Rules of Conduct have recently been updated to help the global profession respond to new risks and opportunities.
The new Rules replace the previous version which had been in place for members and firms since 2007. We have introduced the following changes to bring our ethical standards into one clear framework.
A simpler structure. We have made it easier for RICS members and firms to understand our rules, providing more confidence for clients and the public.
Clear examples. To help support members’ professional judgement, each Rule is illustrated with examples of how members and firms can behave to comply with the Rule. There are also 12 case studies showing real-life application of the Rules.
Focusing on respect, diversity and inclusion. Whether it’s encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all our professional ethics.
Understanding evolving technology. The Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks.
Tackling global challenges. The Rules show that ethical practice by RICS members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change.
The new Rules of Conduct came into effect on 2 February 2022.
What are the professional obligations for members?
- Members must comply with the CPD requirements set by RICS.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the professional obligations for firms?
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
Why was the Building Safety Act updated?
Following the Grenfell Tower fire in London in June 2017, it became clear that there was a need for government to step in and change legislation for high rise buildings (HRBs) so that a tragedy like this never occurs again. It builds on the recommendations within Dame Judith Hackitts’ Independent Review of the Building Regulations and Fire Safety final report published in May 2018. RICS has been working closely with and advising government on the changes.
What tools are available to help members make ethical decisions?
RICS Decision Tree; The decision tree serves as a practical tool to ensure that professionals adhere to best practices, promote safety, and comply with regulations while making informed decisions.
What are Guidance Notes and Professional Statements now called?
Professional standards
These are the documents which set requirements for competent and ethical practice e.g. our existing professional statements and guidance
RICS professional standards are principles-based and focused on outcomes and good practice. Any requirements included set a baseline expectation for competent delivery or ethical behaviour.
They include practices and behaviours intended to protect clients and other stakeholders, as well as ensuring their reasonable expectations of ethics, integrity, technical competence and diligence are met. Members must comply with an RICS professional standard. They may include:
mandatory requirements, which use the word ‘must’ and must be complied with, and/or recommended best practice, which uses the word ‘should’. It is recognised that there may be acceptable alternatives to best practice that achieve the same or a better outcome.
In regulatory or disciplinary proceedings, RICS will take into account relevant professional standards when deciding whether an RICS member or regulated firm acted appropriately and with reasonable competence. It is also likely that during any legal proceedings a judge, adjudicator or equivalent will take RICS professional standards into account.
Practice information
These documents provide advice or practice support to RICS members and firms.
Information to support the practice, knowledge and performance of RICS members and regulated firms, and the demand for professional services.
Practice information includes definitions, processes, toolkits, checklists, insights, research and technical information or advice. It also includes documents that aim to provide common benchmarks or approaches across a sector to help build efficient and consistent practice.
This information is not mandatory and does not set requirements for RICS members or make explicit recommendations.
What are the key areas where ethics are important?
- Gifts, bribes, hospitality
- Discrimination and sexual harassment
- Conflicts of interest
- Money laundering
How many RICS professional groups are there? Can you name 5.
18 groups; Project Management, Cost Management, Building Surveying, Valuation and Facilities Management.
What is the difference between ethics and integrity?
Ethics look at the big moral picture while integrity is focused on personal characteristics.
What preconditions does a firm need to meet to be regulated by RICS?
- Offer professional services in surveying disciplines
- Have at least 25% principals who are qualified RICS professionals
- Agree to observe and comply with RICS rules of conduct for firms, including working to RICS standards
A firm is required to register if at least 50% of the firm’s principals are RICS members.
Once a firm has been registered for regulation, what does the firm need to do to comply?
- Comply with the rules of conduct for firms
- Act in accordance with the obligations set out in RICS Royal Charter and byelaws
- Inform the Head of Regulation of any finding against it
Inform the Head of Regulation of any finding of insolvency of the firm - Notify the Head of Regulation within 7 days if there is a material change regarding the firm and provide full details
What does CPD stand for?
Continued Professional Development
What are the CPD requirements for chartered surveyors?
- All members must undertake a minimum of 20 hours each calendar year
- At least 10 hours must be formal CPD
