Hot Topics Flashcards
Ethical concerns with AI for valuation?
-Relies on data that could be inaccurate
-Doesn’t deal with abnormals
-Need to compliant with RICS Standards by having transparency of how valuations or fees determined
Harris Debate 2024 is?
-Annual RICS event, platform to address ethical concerns in surveying/vauation
-2024 focused on AI ethics on valuation
Impact of AI on construction?
-Can help contractors on estimating process with data processing of large tender packs
-AI cameras to scan sites eg someone forgets to wear helmet
-Sensors for plant/machinery replacement
-Modelling software for lighting, HVAC, security
-Potential to help valuations
-Streamline payments
-Risk mitigation enhanced Monte Carlo system
Bichard Review recommendations?
-Re-emphasise importance of public interest/advantage with changes to royal charter and establish public interest panel
-5 year reviews against charter meeting public advantage
-Standards and regulations board only focus on regulatory operations
-Simplification of governance structure e.g RICS Board as the only overseer of day to day operations
-Audit, Risk, Finance & Assurance Committee + Sustainability Panel established
-Greater delegation and support to regional boards
-Development of professional group panels to lead advancement of knowledge
-Stronger voice for young members through Matrics
-Commercial activity separate as RICS is a professional body
-Diversity and Inclusion Panel
-Framework to set out responsibilities and governance of Standards and Regulation Board.
-Reaffirm commitment to work in the public interest and for public advantage and reviews
-Improve technology
-Fund to support those in underrepresented communities funded by sanctions from Regulatory Tribunal
-Make it clearer how to seek independent redress
-Leadership on climate change
Building Safety Act 2022
-Hackitt review after Grenfell fire 2017
-Ensure high rise/multi occupancy residential buildings are designed, constructed, managed safely
-Applies responsibilities to owners, managers, designers, contractors, developers
-Key duty holders are Client, Principal Designer, Principal Contractor and contribute to fire safety
-These duty holders responsible for golden thread ‘ of information to hand over to client on fire safety
-Act overseen by Building Safety Regulator
-‘Responsible Person’ for fire safety
-Primary legislation
What is the Bichard Review?
commissioned by the Governing Council in 2021, following a recommendation in the Levitt Review that sets a new direction for RICS for: purpose, governance and strategy. Aim to create a new sense of purpose and direction and is capable of tackling future challenges.
Review advised on 36 recommendations
How has COVID affected construction?
TW saw an increased demand as people spent more time at home
Project delays
Sending workers home, social distancing reduced productivity
Closure of factories resulted in higher material costs
Financial difficulties especially for SME’s, so less specialist services / labour
Reduced need for inner city offices, reducing rental income
How has Brexit affected construction?
The impact of Brexit, particularly the reduction in available foreign labor, has exacerbated skills shortages within the construction industry. So has increased labour costs
Political instability and Brexit have contributed to rising construction costs, including increased materials costs.
Disrupted supply chains - shortage of materials
All above has affected SME’s the most
How has UK politics affected construction?
-TW secured a £3 billion emergency funding loan to avoid government control (temporary nationalisation) and potential bankruptcy, and attract new investors.
Now seeking outside investment from American private equity firm
OFWAT said TW can increase bills by 35% over the next five years, but TW said needs 53% rise to fix pipes and keep up with demand.
-Planned investment in infrastructure: Chancellor Rachel Reeves approved extending HS2 to Euston
-Labour pledged to build 1.5 million homes in their term , with 300k eco friendly sustainable homes annually
-Training initiatives for construction skill shortage. Banning zero hour contracts to encourage people
Ethical concerns of AI?
-Valuations susceptible to relying on bad data to skew results
-Not always transparent, which is key in RICS red book property valuation
-In my opinion human input always needed for now
How has USA politics affected construction?
Currency fluctuations of dollar before and after elections affects everyone else
Impact on interest rates. A rise dampens demand on mortgages,
USA tariffs: British exporters face a 10% extra charge on goods sold into the US. But not affected Gleeds as doesn’t apply to services.
But has increased prices of tenders of USA data centres
How has other politics affected construction?
Russia Ukraine war caused increase in inflation, materials and energy costs
What is IPMS?
International Property Measurement Standards
Coalition of members with RICS playing large role
Main document is: IPMS All Buildings
What is RICS Futures Report 2016?
Highlight trends eg
95% of data is wasted so RICS setting up innovation and technology hub
Encourage members in china to adopt sustainable practices
Use of drones
