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Question 1

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

Answer 1

• 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.
• This provides specific guidance on:-
  o Physical Inspections for Residential Properties.
  o Physical Inspections for Non-domestic Properties.
  o Residential Valuations and Surveys.
  o Reopening of the Housing Market.
  o Reopening of Commercial Buildings.

Question 2

What impact has Covid-19 had on your area of surveying?

Answer 2

From a Quantity Surveying perspective, recently I have found there to be significant material cost
increases and a reduction in the availability of materials.
* In particular the cost of steel per tonne has increased in the last year by around 22%.
* Products such as plastic piping, plasterboard and labour availability have become increasingly scarce.
* Due to significant cost increases the financial viability of developments has been affected

Question 3

How have you helped clients with these issues?

Answer 3

• I have supported my clients by looking to secure early order placement of materials in order to negate
  the risk of further price increases and material availability issues.
• I have also kept clients updated on impending price increases when made aware of this by key
  suppliers.
• Through early notification, contingency plans have been put in place to increase cost certainty and
  negate further material price increases and lack of availability.

Question 4

What precautions do you take in your day to day surveying concerning
Covid-19?

Answer 4

I practice inline with the RICS Covid-19 guide for Inspections and Visits for non-domestic properties
which requires me to:-
o Maintaining Social Distancing.
o Minimising physical contact with building occupiers where possible.
o Ensuring I comply with the H&S procedures being operated by the site team.
o Securing as much information as possible from the client prior to the visit and as part of the
pre-inspection research.
o sanitise equipment in line with current Public Health Guidance, periodically and as often as
practical

Question 5

What are the contractual implications for your projects around Covid19 delays and shut downs?

Answer 5

o The projects I was working on during in Covid-19 were all impacted as a result of the
pandemic.
o On my projects that utilised JCT Contracts, as a standard the JCT form included a Force
Majeure clause that was called upon.
o 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.
o 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.
o For my projects that adopted NEC contracts a compensation event was raised entitling the
Contractor to additional time and costs for the period of delay and additional prelims caused as
a result of the pandemic.

Question 6

How was the Covid-19 compensation event administered on your
projects that utilised NEC forms of contract?

Answer 6

o Under the NEC form an early warning notice was issued by the Contractor within 8 weeks of
becoming aware of the impact of the pandemic.
o A further early warning notice was issued with notification of the decision to suspend the
works in order to take stock and review the Health & Safety operations of the site.
o Because these early warning notices were in place it entitled the Contractor to a compensation
event however if they were not raised it may have affected the Contractors entitlement under
the NEC form.
o Following issuance of the early warning notices a meeting was arranged with the Contractor,
Client and PM to discuss the entitlement to additional time and money. It was agreed that an
extension of time of 2 weeks would be granted for the period of the shut down and a further 2
weeks due to the slowing of operations as a result of social distancing. Additional money for
preliminary items such as temperature scanners, barriers and hand sanitiser was also agreed.
o Following the meeting this was formalised under the contract via issue of a compensation
event.

Question 7

Would the Contractor have been entitled to terminate under the JCT
contract as a result of the pandemic?

Answer 7

o This would depend on the form of JCT and the period of delay stated within the Contract
Particulars.
o Under the contract on ‘Project x’ a JCT Standard Building Contract was adopted.
o In this instance the contract contained provision under clause 8.11 where if carrying out of the
works is suspended for a period longer than that stated in the contract particulars (the default
position was 2 months) due to force majeure then either party may terminate the contract.
o The contractor could have done this provided that they had served a written notice to the
employer confirming that if suspension continued for another 7 days then they would intend
to terminate.

Question 8

How did you maintain your surveying duties during covid-19?

Answer 8

o Continuing of my surveying duties has been possible due to remote working technology such
as Microsoft teams that has allowed me to keep in touch with clients, colleagues and
contractors.
o I have been able to attend construction sites to undertake valuations and have been careful to
operate inline the H&S guidance of the site in addition to guidance issued by the Construction
Leadership Council. This has included:-
 Maintaining social distancing.
 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 9

Are you aware of any industry guidance specifically relating to
Quantity Surveying that has assisted throughout the pandemic?

Answer 9

o The Construction Leadership Council has launched the Covid-19 Cost Assessment Toolkit
o This serves as a guide for better cost forecasting by recommending a standard methodology to
incorporate cost impacts resulting from the pandemic and provides clarity around the
assumptions and exclusions that have been made.
o It has also collected industry wide data from the supply chain to help keep surveyors and
clients informed on potential cost impacts going forward.
o Having access to this data has allowed me to improve the accuracy of my reporting into clients
to help them keep informed on ongoing projects and assess the financial viability of future
schemes.

Question 10

How has Brexit effected the UK Property & Construction industry?

Answer 10

Movement of Personnel
* Movement of people is now restricted with free movement having ended on 31st December 2020 and
from 1st January 2021 the UK has a new global immigration system.
* Employers are now required to register as sponsors in order to recruit from abroad.
* 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.
Movement of materials
* Under the UK’s new trade agreement with the EU, most traders will not have to pay tariffs when
moving goods between across borders but will have to meet relevant Rules of Origin for their
products.
* The price of goods moving across the border is expected to increase due to the additional border
checks and administrative work.
* The implementation of this agreement has lead to material shortages and price increases but is not
expected to have a long-term effect
* Despite cross border tariffs not being introduced, the additional administrative work and checks in my
experience are slowing down the supply of labour and materials.
* This has subsequently resulted in cost increases and availability issues in particular in the cost of:-
o Steel.
o Plastic components.
o Cement.
o Plasterboard.
o Skilled and non-skilled labour.

Question 11

Are you aware of any RICS guidance notes on Brexit?

Answer 11

• The RICS has provided a number of position statements highlighting its concerns and issues with
  Brexit on a sector-by-sector basis.
• This also outline what the RICS think the UK government should be doing to make Brexit work for a
  post-EU UK.
• The position statement highlights:-
  o Encouragement of growth and diversity of the construction workforce as potential loss of non
  UK works could create significant issues as this currently account for 12.6% of workers.
  o EU membership provides access to a number of EU funding streams such as the European
  Investment Bank (EIB). The loss of EU led funding streams could have a significant impact
  on project delivery in the UK.
  o The RICS is calling for the UK Government to act to keep EIB funding or introduce a new
  lending mechanism, to plug the gap which could result in a lack of infrastructure investment.

Question 12

Following the Grenfell Disaster are you aware of any guidance the
RICS has published to support fire safety?

Answer 12

• I am aware that the RICS has published the Guidance note ‘Cladding for Surveyors 1st Edition March
  2021’ to support surveyors working on Multi-storey and multi occupancy residential buildings.
• The document aims to improve surveyors knowledge of external wall cladding systems that may be
  considered within the External Wall Fire Review.
• Whilst the document is useful and provides illustrated examples of cladding systems, I appreciate that
  fire safety is of great importance and ultimately falls outside my area of expertise. If my clients do ask
  for advice on first safety I would always recommend that they seek advice via a professional fire risk
  assessment

Question 13

What is ACM cladding?

Answer 13

• ACM standards for aluminum composite material
• It consists of two skins of aluminum bonded to either side of a lightweight core of materials such as
  polyethylene or a mineral core aimed to provided insulating properties.

Question 14

What is the significance of ACM in relation to Grenfell?

Answer 14

• The ACM cladding in use was thought to contain combustible materials that contributed towards the
  spread of fire across the external elevation of the building.
• As a result the UK government has now banned the use of combustible materials on high rise homes
  from 29th November 2018.
• The ban means that combustible materials are not permitted on the external walls of new buildings
  above 18m.
• Local authorities also need to undertake remediation works to replace dangerous ACM cladding on
  existing buildings.

Question 15

What is an EWS1?

Answer 15

• An EWS1 is an External Wall System Fire Review Certificate.
• They are applicable when a multi-storey residential property is either being bought, sold or remortgaged.
• It is not a building safety certificate but a re-mortgaging valuation tool.
• The RICS and mortgage lenders jointly formed the EWS1 form as a way of mortgage lenders assessing
  the external wall safety of buildings over 18m in height.

Question 16

What is the New Fire Safety Act 2021?

Answer 16

• The First Safety Act was introduced in March 2020 and holds significant legal obligations of
  organisations deemed to be responsible persons.
• It is introduced as an update to the Fire Safety order 2005.
• The main focus of the act is the amendment of the Fire Safety Order to clarify that it will apply to the
  structure and external walls as well as anything attached to external walls such as doors, windows and
  cladding.
• Under the previous regime it was unclear who was responsible for fire safety compliance for these
  elements of the building.
• This will force owners, landlords and managing agents of multi-occupied residential buildings to take
  precautions to identify any dangerous cladding on those buildings and remediate any dangerous
  materials whilst introducing interim measures to ensure the building can be occupied safely.

Question 17

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

Answer 17

Incorporating the Levitt Report Recommendations
* Following acceptance of the Levitt Report recommendations in full the RICS looks to:-
o Be more open and transparent with members and the public about the operation of the
institution including decision making and finances.
o Developing and implementing new, more effective, internal whistleblowing arrangements
o Reviewing the arrangements for senior executive reward.
Immediate Financial Priorities
* 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.
Corporate Objectives
* Maintain and increase demand for RICS qualifications with a primary goal to ensure RICS
qualifications remain relevant for future generations and that increased numbers of members use RICS
to meet their knowledge and training needs.
* To ensure members remain involved and engage with increased participation in RICS communities
with increased engagement beyond renewal of professional subscription fees.
* To be recognised as a sustainable 21st century professional body with improved financial sustainability
and enhanced transparency of internal governance, while improving the overall satisfaction of members
and the engagement of our people.
Geographic Priorities
* Outside the UK Greater China continues to be the RICS’ largest strategic market with India, North
America, the Middle East, Europe and Australia providing notable opportunities.
* Many of these markets have positive characteristics such as a major focus on attracting inward
investment and significant commitments to infrastructure spending.

Question 18

What is COP26?

Answer 18

• COP26 is the most recent annual UN climate change conference. COP stands for Conference of the
  Parties, and the summit was attended by the countries that signed the United Nations Framework
  Convention on Climate Change (UNFCCC) – a treaty that came into force in 1994.
• The two-week meeting was seen as a critical moment for commitments and action after richer nations
  had failed to raise the $100bn annual climate funding they had promised to vulnerable countries and
  the gap to staying below 1.5C loomed large

Question 19

What was agreed at COP26?

Answer 19

• For the first time at a COP conference there was an explicit plan to reduce use of coal which is
  responsible for 40% of annual CO2 emissions.
• There was a commitment to ‘phase down’ rather than ‘phase out’ coal after a late intervention by China
  and India.
• The agreement pledged to significantly increase money to help developing countries cope with the
  effects of climate change and make the switch to clean energy.
• There’s was also the prospect of a trillion dollar a year fund from 2025 onwards after a previous pledge
  for richer countries to provide $100bn (£72bn) a year by 2020 was missed.
• While some observers say the COP26 agreement represented the “start of a breakthrough”, some
  African and Latin American countries felt not enough progress was made

Question 20

How does it relate to the Paris Agreement?

Answer 20

• At the COP 21 meeting in Paris in 2015, the Paris Agreement was formed.
• During the COP Meeting, the parties agreed to pursue efforts to prevent temperatures rising more than
  1.5C above pre-industrial levels to avoid the most dangerous impacts of global warming.
• The following Conference of the Parties meetings discusses how each nation is progressing against the
  original Paris Agreement.

Question 21

Please explain your understanding of happened at COP27?

Answer 21

• COP27 took place 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 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

What is Urban greening factor?

Answer 23

• The urban greening factor is a tool that evaluates and measures the amount of urban greening
  (vegetation cover and planting around buildings) to aid the appropriate planning of greening on future
  developments.
• The aim is to increase the amount of green cover around buildings and support its consideration at the
  design and outset of developments.
• Councils can develop their own targets with the plan for London being a target score of 0.4 for
  residential developments and 0.3 for commercial developments.

Question 24

What is the ICMS3?

Answer 24

• The RICS is one of 49 globally prominent organisations to have contributed to the development of the
  ICMS.
• ICSM stands for the International Cost Management Standard which provides a framework for cost
  and carbon management in construction from concept to completion.
• The framework provides a format for defining, measuring, recording and presenting life cycle costs and
  carbon emissions associated with construction projects and aims to decarbonise them in the most costeffective

Question 25

What is the RICS futures report?

Answer 25

• In 2015 the futures report was launched and highlighted key trends such as urbanisation, the disruption
  of big data and technology on the sector and the climate crisis as presenting key challenges to the
  property and construction industries.
• The futures report aims to ensure that the surveying profession is ready to act in the publics interests in
  addressing global challenges.
• 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 challenges.
• Resulting findings highlighted in the 2020 futures report include:-
  o 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.
  o 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.
  o 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 26

What is the Levitt Report?

Answer 26

• 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:
  o The RICS Governing Council are to have more oversight over internal dealings of the RICS.
  o The RICS Governing Council are to be briefed by the Management Board as opposed to a
  single CEO.
  o The RICS Governing Council are to oversee executive management bonuses.
  o The report called for greater transparency as the CEO could have involved the management
  board in order to rectify the treasury issues.
  o No evidence of improper or illegal conduct was discovered.

Question 27

What is meant by the term inclusive design?

Answer 27

• 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:-
  o “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,”
  o “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 28

What are the new RICS Professional Indemnity Insurance
Requirements for 2022?

Answer 28

• The requirements for professional indemnity insurance were updated following issue of the UK
  Professional indemnity insurance requirements Version 9 with effect from 1st April 2022.
• The new requirements introduced a change to the maximum uninsured excess of Professional
  indemnity insurance.
• This means that for larger companies with a turnover in excess of £10m, this is no maximum limit of
  uninsured excess.
• Whereas for companies with a turnover of less than £10m, the maximum uninsured excess is the
  greater of £10,000 or 2.5% of the insured sum.