HOT TOPICS APC S1 2025 Flashcards
Following Grenfell, what updated guidance is there?
Building Safety Act 2022
RICS guidance note ‘Cladding for Surveyors 1st Edition March 2021’ - to support surveyors working on multi-storey/occupancy buildings
New Fire Safety Act March 2020
What is your understanding of the Harris Debate 2024?
- An organised annually by the RICS and provides a platform to address ethical concerns in the field of surveying and valuation.
- In 2024 the debate focussed on the theme of Ethics in the Age of Artificial Intelligence and its impact on Valuation Practices.
What wider impact do you feel AI will have on the property industry?
Streamlining Transactions – AI can simplify the buying, selling and leasing processes by automating paperwork, ensuring compliance and detecting fraud.
Urban Planning and Development – AI can assist city planners and developers by analysing environmental, social, and economic data. It can simulate the impact of new developments, optimising infrastructure planning and sustainability efforts.
Risk Management – AI can play a pivotal role in identifying and mitigating risks, such as market volatility, structural issues in properties, or potential legal complications. Predictive algorithms can help stakeholders anticipate and mitigate these risks.
What impact will AI have on the construction industry?
AI could potentially speed up estimating process for main contractors, by supporting estimators with data collection and processing when reviewing large tender packs made up of contract documents, drawings, specifications and legal documents.
Health and Safety: Site safety AI powered cameras can scan construction sites to detect potential safety hazards, to generate alerts to advise site management to intervene with hazards.
AI sensors can be placed on site plant and machinery to predict replacement/inspection to reduce significant cost and delays
Automation of construction tasks
Is the use of AI ethical?
What RICS guidance is there surrounding AI use in the construction industry?
Are you aware of any guidance that applies to RICS members when using social media?
The RICS introduced the Guidance Note ‘Use of Social Media: Guidance for Members’. The Guidance note sets out the same standards as stipulated in the RICS Rules of Conduct and reminds members that these do not change whether communicating via social media, face to face or traditional forms of media.
How do you ensure you operate inline with RICS guidance on the use of Social Media?
I am always sure to use social media in a responsible and professional manner in the same way that I communicate via face to face or other written forms of communication. I am sure to use professional and respectful language when communicating and understand the responsibility in representing the RICS. I would never make a post that is dishonest or would cause offence in any way. I realise that this could potentially undermine public confidence and trust in the profession.
When would the RICS investigate a Social Media post made by one of its members?
An investigation may take place if a social media post is:-
Discriminatory.
Dishonest.
Abusive or threatening.
Likely to cause significant harm, distress or offence to a person.
Shows a pattern of frequent or large number of concerning communications.
Ignores previous advice or warnings about concerns.
Please explain your understanding of the RICS Business Plan for 2024?
Within the RICS business plan, I am aware of the following targets:-
Matrics Expansion into South Asia – The Governing Council is prioritising support for the next generation of early career professionals with Matrics networks expanded to South Asia, Greater China and Southeast Asia and Australia markets.
Sustainability Leadership – RICS aims to lead on global issues such as decarbonisation, climate resilience, biodiversity, and the circular economy. This involves strengthening carbon measurement standards, influencing policymakers, and equipping members with training and tools to address sustainability challenges.
Attracting Diverse Talent – Efforts are underway to attract a wider range of individuals into the profession. This includes modernising the assessment process, increasing support for early-career professionals, and creating grants and bursaries for underrepresented groups.
Enhancing Member Engagement – The RICS is working on improving the value and experience for its members. This includes better understanding of their needs through data insights, creating stronger connections among members and promoting their work and professionalism publicly.
Strengthening Trust – The institution plans to enhance public trust by refining its regulatory processes, ensuring transparency, and maintaining high standards for ethical and technical practices.
Can you please explain your understanding of the recent RICS Fee changes?
The RICS has announced a 3.5% increase in professional subscription fees for 2025, marking the first adjustment in five years. The decision was made to address rising operational costs and inflation, which RICS had been absorbing.
RICS new subscription framework
A new subscription framework has also been introduced to create a fairer and more regionally equitable system, taking into account member grades, benefits, and local economic conditions. For example, UK-based professional members will pay £558, while fellows will pay £681. The framework is designed to reflect affordability, with fees varying internationally based on local market conditions and exchange rates. In some regions, like parts of Africa, fees have decreased to enhance affordability. Members under two years and those pursuing qualifications will see tiered rates depending on their status.
Who is the RICS president?
Nicholas Maclean = acting president
He was previously interim chair. He has extensive leadership experience and has served in various RICS roles in the Middle East.
Please explain your understanding of the recent updates to RICS Professional Indemnity Insurance Cover around Fire Safety?
During 2019 fire safety insurance cover was removed from the professional indemnity insurance market following the Grenfell Disaster. This followed an increase in insurance claims with insurers applying blanket fire safety exclusions.
During 2020/21 the RICS worked with insurers to restrict blanket fire safety exclusions. The RICS agreed with insurers in May 2021 that fire safety exclusions could be used however these would not apply to work on properties with four or fewer storeys above ground level. This is contained in the agreement that all insurers sign if they want to participate in the RICS insurance market.
Cover for completion of EWS1 forms remains excluded from RICS’ policy wording. There is limited protection for professionals completing EWS1 assessments on a case-by-case basis at insurers’ commercial discretion.
Please explain your understanding of the RICS Inclusive Employer Quality Mark?
Designed to improve diversity and inclusion within the property and construction sector. The scheme requires employers to pledge their commitment to adopting and continually improving against the following six principles:
- Leadership and Vision.
- Recruitment.
- Staff development.
- Staff retention.
- Staff engagement.
- Continuous improvement.
Assessment will be on a bi-annual basis. Participating firms are able to use the branding of, ‘Signatory to the RICS Inclusive Employer Quality Mark’.
What is the RICS doing to improve Diversity & Inclusion?
The RICS has setup ‘Diversity & Inclusion leadership’ which is a knowledge hub.
Other ways:
International Women’s Days celebrating the achievement of Women in our profession.
Pride 2023: LGBTQ+ equality pledge focusing on the importance of LGBTQ+ representation in the profession.
The McGregor-Smith Review – aiming to develop black and ethnic minority talent within the profession.
Please explain your understanding of how the RICS define Professional Standards vs. Practice Information?
Following the Birchard Review and its recommendations the RICS have introduced two new definitions for Professional guidance which are now split into Professional Standards and Practice Information.
Professional Standards – set out requirements or expectations for RICS members and regulated firms with a focus on baseline expectations for competence and ethical behaviour. They contain mandatory requirements that surveyors must follow, where the word ‘must’ is used with best practice that surveyors should follow, where the word ‘should’ is used.
Practice Information – set out supporting guidance to advise surveyors in delivering specific services or working in specific areas of practice. The guidance is not mandatory and does not provide explicit recommendations. Practice Information can refer to processes, toolkits, checklists, insights, research and technical information or advice.
What impact will the Labour government election have on the Property & Construction Industries?
Election of the Labour government may have the following impacts:-
House Building Targets – Labour has pledged to build 1.5 million homes over the next parliamentary term, reinstating mandatory housing targets and updating the National Planning Policy Framework (NPPF).
Infrastructure Projects – Significant funding is planned for public infrastructure, including transportation networks, renewable energy projects, and urban development. This will create opportunities for large scale construction projects, likely driving economic growth and job creation.
Sustainability Focus – Labour has committed to embedding green practices across the industry, with policies focusing on eco-friendly materials, retrofitting existing buildings for energy efficiency, and integrating biodiversity in urban planning. This could lead to increased demand for sustainable construction practices through regulations such as MEES.
Skills Development – Labour plans to address the construction sector’s skill shortages through youth training initiatives and improved working conditions, such as banning zero-hour contracts. This could create a more skilled and stable workforce but will require significant investment to meet labour demands.
What impact will the 2024 US Election results have on the Property & Construction Industries?
Currency fluctuations – The value of the US dollar often fluctuates sharply during and after an election. These shifts directly affect the exchange rate between the dollar and the pound, which in turn impacts the attractiveness of UK property to overseas investors. A weaker pound against the dollar could mean heightened interest from the US and other international buyers, particularly in prime markets like London driving higher property prices.
Impact on Interest Rates – The US election influences the Federal Reserve’s economic policies, which in turn affect global financial markets. Changes in US monetary policy could lead to adjustments by the Bank of England. For UK property, interest rates are crucial as a rise could dampen demand by making mortgages more expensive. Conversely, if rates stay low, the market could remain buoyant, with borrowing costs staying affordable for longer.
Supply Chains and Construction – Changes in US trade policy or tariffs could ripple through the global economy affecting the cost of materials like steel and timber. Higher costs for builders could slow the pace of new developments or push prices higher for buyers in England.
Tech Development & Remote Working – If the election results encourage further growth in the tech sector & remote working, it could bolster demand for homes in England’s regional cities, which have become increasingly popular with remote workers seeking affordability and a better work-life balance.
Please explain your understanding of Project Bank Accounts?
A Project Bank Account (PBA) is a dedicated, ring-fenced bank account used in construction projects to manage payments securely and transparently. It is designed to ensure that all parties involved in a project including subcontractors, suppliers, and the main contractor receive payments directly and promptly from the account, minimising the risk of late or non-payment.
Set up at the start of a construction project with agreements in place between the employer, main contractor and participating subcontractors on how payments are made. The employer deposits funds into the PBA for work completed, made simultaneously to all listed parties on pre-agreed terms, bypassing traditional hierarchical payment flows through supply chains.
What steps would you take in the event of a Main Contractor insolvency?
- Ensure all contractual procedures related to insolvency are followed, especially regarding termination rights and obligations.
- then make records on payments made, work progress and materials on site. If the contractor’s insolvency means they can no longer fulfil their obligations, the contract should be terminated following the specified procedures.
- The site should be secured. Inform subcontractors for them to remove materials/ secure their assets.
- A chartered surveyor should prepare a detailed valuation statement reflecting current status of the project. Includes works completed to date, retention sums and outstanding claims.
- Engagement of alternative contractor may be required.
What is your Economic Outlook for the 2025 UK Construction sector?
The UK construction industry experienced a slowdown in 2024 due to rising material and labour costs with high inflation and interest rates keeping prices high. Due to falling inflation and small interest rate cuts towards the back end of 2024, material prices such as steel, chipboard and plastic piping are now softening. These market shifts should result in material price reductions entering into 2025 and create increased affordability for developments that may have been postponed due to them previously being unviable. A further key challenge remains a persistent skills shortage which is exacerbated by Brexit’s impact on labour supply and a high rate of workforce retirement. This shortage is pushing up costs, making it vital for the industry to invest in apprenticeships and training programs. Environmental sustainability remains a key priority for the labour government which will support a continued shift and preference for sustainable building methods and products. These are typically more expensive which will see a trade off between affordability and sustainability for larger scale developers.
Please explain your understanding of what happened at COP29?
COP29 was held in Baku, Azerbaijan in November 2024 and focused on addressing the climate finance gap through the loss and damage fund, designed to support vulnerable nations. Other key takeaways include:-
- Some progress was made on working towards a global carbon market where the buying and selling of carbon emissions is facilitated to help reduce global emissions. This market would incentivise lower global emissions for companies, countries and other entities.
- By putting a price on carbon, it incentivises industries to innovate and invest in cleaner technologies, helping to reduce the global carbon footprint.
- Progress was made on the NCQG or New Climate Finance Goal to replace the previous $100bn Goal. This is intended to ensure that sufficient financial resources are mobilised to support developing countries to address the impacts of loss and damage from climate-related disasters. A consensus on the amount and scope of the funds required was discussed.
What is meant by the term Global Carbon Market?
This refers to an international system that allows the buying and selling of carbon emissions, allowances or credits. It is designed to help reduce global greenhouse gas emissions by putting a price on carbon to incentivise countries, companies, and other entities to innovate and invest in cleaner technologies and help to reduce the global carbon footprint.
Please provide a high-level overview of the 2024 RICS Sustainability Report?
- Identification of an increase in market demand for green buildings however the adoption of sustainable practices remains limited.
- High upfront costs and insufficient government incentives form significant barriers to widespread implementation of greener building methods.
- The report highlighted a need for consistent sustainability measurement across projects. Tools like the RICS Whole Life Carbon Assessment (WLCA) standard aim to address this issue by providing a unified framework for assessing and reducing carbon emissions.
- The RICS emphasises that the level of commitment and action needs to increase substantially to achieve 2050 net-zero targets.
- RICS continues to play a pivotal role in shaping sustainability policies and standards globally. Its involvement in initiatives like the UN’s Buildings Breakthrough highlights the importance of harmonising sustainability standards worldwide.
Please explain your understanding of the acronym MEES?
MEES stands for Minimum Energy Efficiency Standards. These are regulations in the UK that set minimum energy performance requirements for buildings, specifically for privately rented properties. Under MEES, properties in the private rental sector must meet at least an E rating on their Energy Performance Certificate (EPC) to be legally rented out. If a building is rated lower than an E, landlords are required to improve the energy efficiency of the property before renting it out, unless specific exemptions apply. The MEES regulations are part of the UK government’s broader environmental and sustainability agenda, aiming to ensure that properties are energy-efficient and more environmentally friendly.
Please explain your understanding of the term ‘Carbon Life Cycle’?
Carbon life cycle is a holistic view of the carbon footprint of a building. This considers the carbon impact from:-
Material extraction.
Manufacturing.
Transportation.
Construction works.
Maintenance.
Repairs or replacement of materials.
Consumption of energy.
Carbon use at the end of the buildings life.
A1-A5 Cradle to gate
A1-C4 (A1-A5, B1-B7, C1-C4) - Cradle to grave
A1-D Cradle to Cradle
Please explain your understanding of the term ‘Negative Carbon’?
The reduction of an entity’s carbon footprint to less than neutral. This results in a net effect of removing carbon dioxide from the atmosphere rather than adding it.
Please explain your understanding of the term ‘Carbon Offsetting’?
Carbon offsetting results in a reduction of Green House Gas emissions or an increase in carbon storage. This is usually achieved through land restoration or the planting of trees that can compensate for emissions that occur elsewhere.
Please explain your understanding of the term ‘Placemaking’?
Placemaking is a wholistic approach to the development of public spaces that considers planning, design, implementation and management. This aims to deliver public spaces that offer unique value to their occupants such as:-
A greater sense of belonging.
Increased security.
A unique atmosphere.
Inspiration and experience.
A sense of pride in community.
This concept is thought to result in an improved quality of life to occupants, greater happiness, better work productivity and a possible increase in property values.
Please explain your understanding of Green mortgages?
A mortgage that rewards someone for buying or owning an energy efficient home by offering favourable terms than as standard. This typically result in lower interest rates or receiving cashback when you take out the mortgage.
What is Urban greening factor?
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.
What is biodiversity net gain?
A government policy that aims to improve the state of wildlife habitats before and after development. Where a development has an impact on biodiversity it encourages developers to provide an increase in appropriate natural habitat and ecological features over and above that being affected
