General Flashcards
Tell us about a negotiation you have done.
When negotiating a variation on DSQ office fit out, the contractor claimed additional works inline with an already agreed instruction.
- met on site
- ensured I met with the Qs who is able to negotiate on behalf of the contractor.
- strategy was to challenge the extent of the additional works, I had already understood there were additional works that couldn’t have been forseen at the point of instruction and had priced up what I believed the additional cost should be.
- listened to their point of view
- presented my own
- came to a mutual agreement
- confirmed it in writing and included it in the cost report for instruction.
What is a P&L and what can you tell from it?
A summary of the incomings and outgoings of a business in a set period of time.
You can see the companies turnover from the P&L
What’s gross profit?
revenue - expenditure
What’s operating profit?
gross profit - operating expenses (OpEx e.g. payroll, and insurances.)
What’s net profit?
operating profit - expenses associated with interest or tax
What is a Balance Sheet and what can you tell from it?
A snapshot of a businesses assets and liabilities at a moment in time.
Balance sheet shows you how much debt the company is trading on
What accounts does a company have to publish annually?
- Balance sheet
- Profit and loss account
- Notes about the accounts
- A director’s report
As an LLP what accounts do you need to submit to companies house?
- A profit and loss account
- A balance sheet
- Notes to the accounts
- An auditors’ report, if applicable
What can you tell about a contractor from their account
Information about their financial position, business costs, and other aspects of their work
What is the current law in place making provision about offences relating to bribery?
Bribery Act 2010
What are the seven rights of an individual under GDPR?
rights to have data;
- erased
- amended
- restricted
- right to portability of their data
- right not to be subject to a decision based solely on automated processing
What’s the difference between GDPR and Data Protection act 2018?
GDPR applies to EU and non-EU organisations that process the data of EU citizens..
What is the maximum fine under GDPR?
20 million euros or 4% of the companies global turnover (whichever is higher)
What is the maximum fine under the Data Protection act 2018?
£17.5 million or 4% of the companies global turnover
How might you respond if offered a gift?
- Typically ‘No’
However I could also;
- Consult the RICS decision tree
- Check value of the gift
- Check the timing of the gift and who it is from
- Log it on the companies gift register
Talk me through the RICS decision tree
The RICS ethics decision tree prompts me to ask the following questions;
- do I have sufficient facts on the issue?
- is it legal?
- is it in line with the RICS rules of conduct?
- Have you consulted appropriate people and assessed the risks involved
- is there clear reasoning in reaching the decision
- is the decision informed?
- would I be content if my actions were made public.
Then either act or record the decision
What are capital allowances and how do they affect clients’ accounts?
A way of gaining tax relief on certain types of capital expenditure, typically on property plant and machinery
*e.g. carpets in new build homes can qualify for capital allowances as they’re considered as plant by HMRC
Name 5 professional groups in the RICS
There are 18
- Quantity Surveying and Construction
- Project Management
- Dispute Resolution
- Management Consultancy
- Valuation
What is included in the PCI (Pre-Construction Information)?
- Project information
- Health and Safety
- Environmental assessments
- Building plans and specifications
- Safety assessments (Risk)
Why do RICS recommend holding data for 15 years?
12 years for deed then 3 years for latent
Under CDM what documents are required and who is responsible for producing them? (3)
- Construction phase plan - Principal Contractor
- Health and safety - Principal Designer, then the Client esablishes who with update it
- PCI - Client
How to prevent PI claims?
- Record keeping
- Only advise on things we are supposed to
- Good communication
- Good management
What are some Environmental assessment methods?
- EPC
- BREEAM
- NABERS
- LEED
What is the RICS motto?
“Est Modus in Rebus”, which is Latin for “there is measure in things”
What is the structure of the RICS?
- Self-regulated.
- Bye laws determine how the RICS is regulated.
- Governing council, manage and agrees strategy
- Standards and Regulation board, Audit committee, Management board they execute the strategy
What is the Bichard Review?
RICS commissioned Lord Michael Bichard to undertake an independent review into the institutions purpose governance, and strategy.
Following the recommendation of the Levittt review in 2021 which advised on a wider examination of purpose, governance, and strategy of the RICS.
What were the recommendations of the Bichard Review?
36 recommendations, including:
- revising RICS metrics to give younger members a say and have a younger member sit on the governing council
- Establishment of a diversity and inclusion panel
- Commission independent reviews every 5 years of the effectiveness of the RICS to serve the public advantage.
What has the RICS done since the Birchard review?
- Launched ‘myRICS’ community (a virtual space members and candidates can connect and share knowledge.
- Chairs and members have been appointed for the DEI and Sustainability panel
- New global regional budgets released for local events and initiative
When setting up a practice what 7 things must a company do?
- Obtain RICS startup policy pack
- Register with RICS
- Appoint RICS contact officer
- Complaints handling procedure
- PII
- Rules of conduct for firms
- Use the ‘regulated by RICS’ on all material
What are the RICS PII requirements?
- ‘each and every’ claim basis or aggregate plus unlimited reinstatement E
- minimum policy wording P
- minimum level of cover based on companies turnover the previous year C
- maximum level of uninsured excess M
- underwritten by a listed insurer U
- run-off cover R
- fully retroactive R
What do firms need to include in their annual returns to the RICS? (6)
- Staffing
- Nature of clients
- Training provisions
- Complaints handling procedures
- PI details
- Confirm if the firm is holding clients money
What will must a firm do if they’re holding Clients’ money?
- Secure accounting and data systems
- Money is separate and identifiable
- Clients must have access
- Provide a running balance
What are the Professional obligations of firms?
- Adequate PII
- With a sole principal must make arrangements for the ongoing nature of the business in the case of their death
- Cooperate with the RICS
- Provide all info requested by Standards and Regulation boards
- Must display ‘regulated by RICS’ on literature
How can you spot collusion?
- If tender returns are specifically higher or lower than each other
What would you expect to fin din an appointment doc?
- Rics Standard form of Consultant appointment
- Schedule of services –EA/QS Checklist
- Fees and Payments
- Clients Brief – Assumed programme
- Collateral Warranty (if Required)
- Schedule of Amendments
