Hot Topics 2024

Question 1

RICS Guidance on Social Media?

Answer 1

GN ‘Use of Social Media: Guidance for Members’; 30.06.21; Standards as those of Rules of Conduct!

Question 2

RICS updates to PII cover around Fire Safety?

Answer 2

Fire safety insurance cover removed from PII market
RICS agreed with insurers this would not apply to props with 4 or fewer storeys
EWS1 forms remain excluded (higher storey buildings)

Question 3

RICS Inclusive Employer Quality Mark?

Answer 3

Scheme
Improve diversity
Employers pledge commitment to 6 principles: Leadership; Vision; Recruitment; …
Performance assessed bi-annually to those registered

Question 4

Hybrid Working?

Answer 4

Pros:
life balance; fewer distraction; commuting; etc

Cons:
social connection; less collaboration; workspace quality; etc

Question 5

Birchard Review?

Answer 5

RICS latest
Follows the Levitt Review [after the Treasury Management Audit]
Commission by RICS 2021
Purpose, governance, strategy of the RICS [Governing Council]
Advised 36 recommendations and currently being implemented

Commercial activities separate [Commercial Committee/Audit, risk, finance, and assurance committee]
Younger members stronger voice
Diversity and Inclusion Panel
Public Interest Panel
Sustainability Panel
New Governance Structure proposed
Improve technology

Question 6

How RICS improving Diversity and Inclusion?

Answer 6

Diversity and Inclusion Leadership Hub

Question 7

RICS Professional Standards vs Practice Information?

Answer 7

Following Birchard Review
Guidance now split into 2 and supercedes the earlier Professional Statements; Guidance Notes; Codes of Practice, etc:

Professional Standards - baseline expectations; mandatory, must be used

Practice Information - advice; not mandatory; no explicit recommendations eg processes, checklists, etc

Question 8

Guidance on use of RICS logo?

Answer 8

Firm use / Personal use
Detailed info on correct usage

Personal - right for use on businesss cards & email signatures

Font and colour must not be adjusted; min clearance around logo (equivalent to the ‘R’)

Question 9

Recent changes to Membership Cards?

Answer 9

Plastic cards now replaced with digital card - more sustainable

Question 10

What is IPMS?
Recent IPMS updates?

Answer 10

International Property Measurement Standard

Measurement standards: ‘IPMS All Buildings’ Jan 2023 - supercedes previous
Applies to all buildings
Format concise and definitions made unique
4 volumes
To encourage more adoption

Question 11

The new volumes of the IPMS?

Answer 11

IPMS1 - External measurement for whole or part of a building
IPMS2 - Internal ‘’’
IPMS3.1 - External measurement for exclusive occupation
IPMS3.2 - Internal ‘’’
IPMS4.1 - Internal measurement for selected areas including internal walls and columns
IPMS4.2 ‘’’’’’ excluding ‘’’’’’’

Question 12

Key definitions within the IPMS?

Answer 12

Internal dominant face
Component
Component area
Standard facilities

Question 13

Your view of IPMS updates?

Answer 13

Negate ambiguity across global markets
RICS Professional Statement for Property Measurement to be udpated

Question 14

How has Brexit affected the UK property and construction industry?

Answer 14

Personnel (movement) - restricted; employers need to be ‘sponsors’; job/salary/language requirements; - labour cost increase, less available labour

Materials (movement) - New EU trade agreement; no tariffs but Rules of Original apply; - price increases as a result of more check; not expected to be long term

Materials (Cost increases) - increased admin - slow down supply - availability issues and cost increases for steel, plastic components; cement; plasterboard; labour

Question 15

RICS Guidance Note on Brexit?

Answer 15

Position Statements (sector by sector)
Recommendations to UK Government - diversification to boost workforce; new funding to replace EU funding streams

Question 16

Grenfell and Fire Safety - RICS guidance since disaster?

Answer 16

GN ‘Cladding for Surveyors’ 2022, to improve knowledge of systems
Understand fire safety outside field of expertise
Recommend seeking of advice

Question 17

Aluminium Composite Material (ACM)?
Significance following Grenfell?

Answer 17

2 skins of aluminium;
core of polyethylene or mineral core
Combustible cladding
Now banned (and all combustible materials) on high rise homes above 18m

Question 18

What is the New Fire Safety Act 2021?

Answer 18

Legal obligations
Organisations must now have a Responsible Person
Update to Fire Safety Order 2005 - this Order now also applies to structure and external walls
Clarifies who responsible for fire safety [Responsible Person]
Precautions must now be taken:
-identify dangerous cladding
-remediate
-interim measures to make safe

Question 19

RICS Business Plan 2024, aims?

Answer 19

Incorporate Levitt Report [via Birchard Review?] - open and honest (public and members); more effective whisteblowing; review executive reward

Financial - Support profession (covid recovery); payback furlough; reduce loans; repair defecit to pension scheme

Corporate - increase demand for qualifications; remain relevant; support training needs; more member involvement; focus on sustainability of the organisation [Levitt/Birchard] ie finances, governance, satisfy, engage

Geographic - Largest markets: China, India, ME, Europe, Australia - infrastructure commitments and attracting inward investment

Question 20

What is COP26?
Considerations before meeting?
What agreed?

Answer 20

Conference of the Parties; 26th year following UN original conference - Framework Convention on Climate Change (UNFCCC) - a treaty agreed in 1994.

Rich nations failed to raise $180bn annual fund
Gap to staying below 1.5 degrees above pre-industrial levels (Paris Agreement; COP21)

Reduce coal (40% of CO2)
Increase fund - prospect of £1tr a year from 2025
[Glasgow Finance Initiative - $180tr of private funds to be scrutinized for sustainable investing]

Question 21

What happened at COP27?
How seen?

Answer 21

Sharm El Sheikh in Egypt
New fund of £100bn a year

Seen as a failure - limited mitigation strategies; limited action for CO2 peaking before 2025

Question 22

What is the Urban Greening Factor?

Answer 22

Purpose to increase green cover around buildings through planning
Councils have targets eg London - residential 0.4; commercial 0.3

Question 23

The Levitt Report?

Answer 23

Followed the Treasury Management Audit of 2018 (RICS had to extend overdraft by £3m; inaccurate CFF - Verdict: no assurance on internal financial control procedures)
Commissioned by RICS
Levitt conclusion - internal power struggle (board structure; management/executive)

Recommendations:
Governing council to have more oversight
GC to be briefed by whole of Management Board, not just the CEO
GC to oversee executive management bonuses
Greater transparency (CEO did not involve Management Board)

Question 24

What is meant by Embodied Carbon [Energy]?

Answer 24

The carbon emissions generated (energy, chemical processes) during the extraction, manufacture, transportation, assembly, replacement and deconstruction of construction materials or products [whole life excluding running?]

Question 25

What are the Heat Network (Metering and Billing) Regulations?

Answer 25

Purpose - to improve energy efficiency (domestic and commercial)
Applies to - heat network suppliers (heating, cooling, hot water)

Suppliers must install metering on the networks for some classes of buildings - viable, open, exempt

Question 26

The RICS Futures Report?
The key challenges?

Answer 26

Monitoring of key trends of (since 2015, results in 2020):
Urbanisation
Big data and Technology
Climate crisis

Challenges:
Construction produces 2nd largest data; 95% of which is wasted - how to put to good use?
Urbanisation - megacities in china and elsewhere; pollution, congestion, expensive - how encourage more sustainable approach?
Use of Drones - compliance issues relating to regulatory trends - RICS to provide guidance ie online courses for efficiency, safety, legality

Question 27

RICS guidance on the use of Drones?
What legislation in the UK?
Where familiarity with regulations is important?
Types of drones?

Answer 27

Drones: Applications and Compliance for Surveyors - different types of drones; their applications; current legislation

Regulators in catchup
Air Navigation Order 2016 (and amendment 2018)
Data Protection Act 2018
Aviation and Maritime Safety Act 1990

Likely to endanger aircraft
Likely cause injury to person or property
Civil Aviation Authority - Must have Permission for Commercial Operations (PfCO) issued by the CAA

Optical cameras
Thermal or heat detection
LiDAR Airborne laser scanning for topographical surveying

Question 28

What is Inclusive Design?

Answer 28

People use built and natural environment differently and must be accommodated ensuring dignity, equality, and inclusivity (welcoming and easy for people to use)

Responsibility of everyone who works in built environment

Question 29

What is the Domestic Reverse Charge?

Answer 29

Introduced Oct 2020
Main Contractor now pays the VAT on purchases from suppliers and subcontractors
Payment is direct to the HMRC

This acts as a stop to ‘short term loans’ the subcontractors would have received - they will increase costs or short term borrowing arrangements instead!

Question 30

The RICS Blackbook Documents and updates?

Answer 30

Best practice guidance and knowledge for QSs on complex areas such as:
Acceleration
Contract Selection
CFF
Cost Analysis

RICS currently undertaking review to update the content with aim of producing a new edition with improved presentation; navigation;
Several out-of-date publications withdrawn due to contract, legislation, and case law changes

Question 31

Ukraine - effect on property and construction?

Answer 31

Significant energy price increases

Cost of production of building products have also increased (those with high embodied energy):
Steel
Bricks
Plastics
Ceramics
Exacerbated Brexit; Covid; Strike action; Inflationary pressures

Consequences for projects:
Delay and disruption (material and goods shortages)
Cost overruns
Arguments over triggering of suspension or termination rights