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Question 1

What are the general requirements regarding Professional Indemnity Insurance set by the RICS?

Answer 1

 The policy cover must be made on an ‘each and every’ claim basis.
 The RICS sets out the minimum levels of indemnity.
 The policy must be fully retroactive.
 The RICS sets out the maximum levels of uninsured excess.
 Run off cover must be in place.
 The policy should cover past and present employees, directors and partners.

Question 2

What is the RICS futures report?

Answer 2

In 2015 the futures report was launched and highlighted key trends such as urbanisation, the disruption of big data and the climate crisis as presenting key challenges to the property and construction industries. Since 2015 the RICS have analysed these trends by engaging with the profession to keep its members best informed on how to address these key issues.

• Construction produces the second largest amounts of data behind financial
  services however it is estimated that 95% of this is currently wasted. The RICS is setting up an innovation and technology hub to provide a centre of expertise on how data can be put to good use.
• The rapid urbanisation in China was also highlighted where formation of mega-cities is creating key challenges. The amount of land classed as urban has doubled since 2000 resulting in polluted, congested and expensive areas. The RICS aims to encourages it members working in these regions to adopt a more sustainable approach to the development of these areas through utilsation of outer urban areas.
• The rapid increase in the use of drones within the industry was also highlighted as presenting key challenges in terms of compliance issues for surveyors taking into account current and emerging regulatory trends, national and international legislation standards. The RICS has developed online courses to support surveyors in this area to ensure the technology is being utilised efficiently, safely and legally.

Question 3

What is the RICS Levitt Report?

Answer 3

 The Levitt Report was commissioned by the RICS following a Treasury management audit in 2018.
 Prior to the Audit the RICS had to extend its overdraft facility by circa £3m due to inaccurate cashflow forecasting.
 The treasury management audit offered a ‘no assurance verdict’ on RICS internal financial control procedures and following this the Levitt report was commissioned as an independent review.
 The conclusion of the Levitt report illuded to an internal power struggle due to its two board structure made up of a Management Board and Executive Board.
 Following the report, the RICS accepted each of Levitt’s recommendations including:
 The RICS Governing Council are to have more oversight over internal dealings of the RICS.
 The RICS Governing Council are to be briefed by the Management Board as opposed to a single CEO.
 The RICS Governing Council are to oversee executive management bonuses.
 The report called for greater transparency as the CEO could have involved the
management board in order to rectify the treasury issues.
 No evidence of improper or illegal conduct was discovered.

Question 4

Are you aware of some of the aims highlighted within the RICS Business Plan for 2021-22?

Answer 4

 Following acceptance of the Levitt Report recommendations in full the RICS looks to:-
 Be more open and transparent with members and the public about the operation of the institution including decision making and finances.
 Developing and implementing new, more effective, internal whistleblowing arrangements
 Reviewing the arrangements for senior executive reward.
 Continue to support the profession as economies recover from Covid-19 and seek to minimise any increases in the cost of subscription levels.
 Utilise any surplus in cash generation to pay back furlough monies received via the UK government’s Coronavirus Job Retention Scheme.
 Reduce RICS’ need to access external financial support
 Reduce any funding deficit in the closed Final Salary Pension Scheme.

Question 5

What are the New Rules of Conduct?

Answer 5

 Rule 1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
 Rule 2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
 Rule 3. Members and firms must provide good-quality and diligent service.
 Rule 4. Members and firms must treat others with respect and encourage
diversity and inclusion.
 Rule 5. Members and firms must act in the public interest, take responsibility
for their actions and act to prevent harm and maintain public confidence in the profession.

Question 6

Talk us through your understanding of the changes?

Answer 6

 The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate documents:
 Rules of conduct for Members.
 Rules of Conduct for Firms.
 Global Professional and Ethical Standards.
 Appendix A of the Rules of Conduct now contains the professional obligations
of Members and Firms.

Question 7

Explain your understanding of Rule Number 1?

Answer 7

 Having reviewed the example behaviors in adhering to Rule 1 RICS Members and firms should not allow themselves to be influenced improperly through the acceptance of work referrals, gifts or hospitality.
 Members and Firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur.
 This could be a scenario where you have reduced impartiality due to an existing relationship, for example being friends with a Main Contractor who has subsequently been selected to submit a tender would form a conflict of interest.

Question 8

Explain your understanding of Rule Number 2?

Answer 8

 To ensure compliance with Rule 2, Members and firms must only act for clients where they have the necessary knowledge, skills and resources to carry out the work competently.
 Firms must supervise any employees or subcontractors undertaking work on their behalf, for example requesting that a Junior Surveyor undertakes a complex valuation due to resourcing issues would create problems in achieving compliance with this Rule. Instead an experienced and suitably qualified surveyor should be asked to undertake the valuation.

Question 9

Explain your understanding of Rule Number 3?

Answer 9

As an RICS member or regulated Firm we must also be sure to understand a clients’ project specific requirements before acting on their behalf. The clients’ scope of services should be agreed along with any exclusions and timescales for achieving each of the deliverables before signing up to formal terms of engagement.

Question 9

Explain your understanding of Rule Number 3?

Answer 9

As an RICS member or regulated Firm we must also be sure to understand a clients’ project specific requirements before acting on their behalf. The clients’ scope of services should be agreed along with any exclusions and timescales for achieving each of the deliverables before signing up to formal terms of engagement.

Question 10

Explain your understanding of Rule Number 4?

Answer 10

 The RICS also expects its members to respect the rights of others and treat others with courtesy.
 We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregnancy, race, religion or sexual orientation.
 RICS members and firms also need to adopt a no tolerance policy of bullying or harassment.

Question 11

Explain your understanding of Rule Number 5?

Answer 11

 Members and firms are required to question practices and decisions that they suspect are not right and raise concerns with colleagues, senior management, clients or the RICS.
 When making public statements we need to ensure these do not undermine public confidence in the profession.
 When receiving and processing complaints, we need to ensure these are dealt with promptly, openly and professionally.
 In complying with Rule 5, a useful sense check to ensure compliance is to ask ourselves if we would be comfortable in standing behind our actions if these were brought into the media or a public forum.

Question 12

What are the professional obligations of members?

Answer 12

 1. Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
 2. Members must cooperate with RICS.
 3. Members must promptly provide all information reasonably requested by
the Standards and Regulation Board, or those exercising delegated authority on its behalf.

Question 13

What are the professional obligations of firms?

Answer 13

 1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
 2. 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.
 3. 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.
 4. Firms must cooperate with RICS.
 5. Firms must promptly provide all information reasonably requested by the
Standards and Regulation Board, or those exercising delegated authority on
its behalf.
 6. 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.
 7. Firms must report to RICS any matter that they are required to report under
the Rules for the Registration of Firms.

Question 14

What key challenges does the Global Economic Recession present to your area of surveying?

Answer 14

 Rising inflation rates of around 10-11% have resulted in the Bank Of England increasing the base interest rate which has subsequently caused a large increase in borrowing costs. This has slowed down the property market and there is a risk of recession which has affected confidence.

Question 15

What affect has the conflict in Ukraine had on the UK Property & Construction industry?

Answer 15

Due to the high dependency that Europe has on Russian gas and oil, the conflict in Ukraine has resulted in significant energy price increases, affecting material costs and disposable income.

Question 16

How has Brexit effected the UK Property & Construction industry?

Answer 16

 To employ someone from outside the UK the individual must meet job, salary and language requirements.
 With the supply of labour being more restricted this has led to labour cost increases and a reduction in the availability of labour.
 The price of goods moving across the border is expected to increase due to the additional border checks and administrative work, increasing material costs.

Question 17

Are you aware of any RICS guidance notes on Brexit?

Answer 17

The RICS has provided a number of position statements highlighting its concerns and issues with Brexit but this is not relevant to my current role

Question 18

Are you aware of any RICS Guidance notes on Covid-19?

Answer 18

I am aware of the RICS ‘Covid-19 Guide to Surveying Services’ which contains a range of guidance notes to work safely and in line with government guidelines through the Pandemic.

 Maintaining Social Distancing.
 Minimising physical contact with building occupiers where possible.
 Ensuring I comply with the H&S procedures being operated by the site team.
 Securing as much information as possible from the client prior to the visit and
as part of the pre-inspection research.
 Sanitise equipment in line with current Public Health Guidance, periodically
and as often as practical.
 Wearing of face coverings.
 Using hand sanitiser.
 Taking lateral flow tests prior to attendance.
 Limiting my contact with surfaces.
 Maintaining good ventilation of the areas being surveyed.

Question 19

What are the contractual implications for your projects around Covid-19 delays and shut downs?

Answer 19

 The projects I was working on during in Covid-19 were all impacted as a result of the pandemic.
• Risk included in pricing prior to base date
 Possible Force Majeure - claim for time only not loss & expense
 This entitled the Contractor to an extension of time for the shut downs that were imposed by the client to take stock and evaluate the Health & Safety standards of the site.
 The Contractors also sought loss and expense claims for the additional preliminary health & safety items such as temperature scanners, masks, and perspex barriers along with the impact that social distancing had on slowing down construction operations.

Question 20

Please explain your understanding of happened at COP27 in 2022?

Answer 20

 COP27 took place in 2022 in Sharm El Sheikh, Egypt and highlighted the countries mostly affected by ‘loss and damage’ of extreme weather.
 A new loss and damage fund was agreed for the first time where richer countries that have still not delivered on previously agreed targets will be required to provide $100bn per year to the countries most in need.
 There was a large focus on paying for the damage caused by climate change however many delegates thought that not enough emphasis on mitigation strategies were discussed.
 Key targets such as ensuring that carbon emissions peak before 2025 and the phasedown of fossil fuels did not form part of the agreed text which was seen by many leaders as a failure.

Question 21

Are you aware of any impending changes to minimum energy efficiency standards?

Answer 21

 Yes I understand the government has recently proposed changes to the EPC requirements for commercial property and buy to let properties which are due to take effect from 2025.
 Currently the minimum required energy efficiency rating for domestic rental property requires an E rating however this is expected to increase to a C rating or above from 2025.

Question 22

Please explain your understanding of Green mortgages?

Answer 22

 A mortgage that rewards someone for buying or owning an energy efficient home by offering favorable terms than as standard.
 This typically result in lower interest rates or receiving cashback when you take out the mortgage.

Question 23

Are you aware of any RICS Guidance covering the use of drones?

Answer 23

Yes the RICS has produced ‘Drones: applications and compliance for surveyors’ but I haven’t read it as not yet had a need to use a drone.

Question 24

What is meant by the term inclusive design?

Answer 24

 Inclusive design aims to ensure that the differences in the way people use the built and natural environment can be accommodated for through dignified, equal and intuitive use by everyone.
 Inclusive design is the responsibility of everyone who works in the built environment: planners, those who commission new buildings and places, access consultants, designers, architects, engineers, surveyors, property owners and facilities managers.
 Danny Medcalf FRICS and RICS RICS Trainer for Rules of Conduct, Ethics and Professional Practice advised that:-
 “Whether it is a building, a car park, a football stadium, or any other part of the built environment, the key thing is that the space must promote intuitive and inclusive use,”
 “This means it has to be both welcoming and easy for people to use, regardless of their age, status, gender, physical or mental ability and all other individual characteristics.”

Question 25

What information have RICS provided on spray foam?

Answer 25

Spray foam insulation consumer guide. This consumer guide aims to inform the homeowner on the ways in which spray foam insulation could impact a property. This consumer guide applies to alterations and modifications of existing roof structures in loft voids where homeowners are considering the application of or have already had spray foam retrospectively applied to the underside of their roofs.

Question 26

What are the requirments?

Answer 26

The property needs to be wind and watertight prior to extending money on energy performance otherwise it is vulnerable to rain water getting in. All changes need to be considered in the whole. A typical pitched roof loft void is designed to have ventilation to balance water vapour in the air, reducing the risk of condensation. It explains the difference between a cold roof and a warm roof.

Question 27

How would you advise on spray foam?

Answer 27

Firstly I would consider the construction of the roof type and it’s components, ventilation, and the condition of the roof externally, take moisture meter readings, note the type of spray foam, and the overall quality of the insulation installation. As the information on spray foam is a moving target, I would thereafter familiarise myself with the most recent guidance from the RICS, LABC, PCA and RPSA before reporting to the client.