Inspection

Question 1

What is your company’s lone working policy.

Answer 1

Ensure digital diary is up to date
call prior to site entry and when leaving site
potential regular check-ins
ensure charged phone

Question 2

what types of Inspection have you undertaken?

Answer 2

Valuation of Insolvency purposes
for sale and purchase
to produce asset register

Question 3

What equipment do you take on site?

Answer 3

Appropriate PPE
Recording Devices – Camera, Pen, Paper, Mobile Phone
Measuring devices

Question 4

How do you know your equipment is suitable/working

Answer 4

Prior research into the site visiting and assets to be valued
Test equipment prior and charge electrical devices

Question 5

Why is calibration of tools important?

Answer 5

To ensure accuracy

Question 6

How do you calibrate a laser measuring device?

Answer 6

Test prior to site visit against a known distance in the office

Question 7

Think about what defects/condition am I looking for?

Answer 7

If the scope allows – Do the main parts appear to be present? Any visible signs of not in working order? Any safety devices? Pump Power – On further inspection parts of the pumps were visibly missing or in a poor condition.

Question 8

Know your limitations

Answer 8

Is it safe?
Am I competent?
Do I need a colleague to assist?

Question 9

My knowledge of the type of assets

Answer 9

Identifying matters that affect value such as; 
age
model
capacity
make
size

Question 10

Duty of Care - What if something illegal is noted on an inspection

Answer 10

If we noted an illegal activity such as a canabis farm I would report the matter - I act in the public interest.

If it was a machine without safety barrier I would comment on it and recommend that the matter is dealt with.

Question 11

Insolvency Technical Manual – Chapter 8 – What does it say that’s relevant

Answer 11

In an insolvency case, the client has a duty to secure the assets - identify how this can be done.
Identify Third party/encumbered assets

Question 12

Inspections since COVID - Considerations before the inspection

Answer 12

Act in a transparent and professional manner (Am I suppose to be in isolation?)

Identify any limitations to the inspection| provide pre inspection questionnaire to limit time on site and raise awareness of investigations to be carried out

Consider transport to property - Am I attending with a colleague? Can we travel sepereately

Is the company going to be operational with staff members? If so will it be suitable for me to attend?

Local lockdowns preventing inspection?

Question 13

Inspections since COVID – Considerations during inspection

Answer 13

Follow guidance on cleaning hands, wearing face coverings
only take necessary equipment
minimal contact with people and surfaces
Follow any guidelines of the company.

Question 14

Inspections since COVID – Considerations after inspection

Answer 14

Wash hands
Sanitise equipment
Dispose of PPE if necessary
Note any limitations of the inspection and include a disclaimer relating to any errors or omissions arising from any limitations to the service delivered.

Question 15

Are you aware of guidance the RICS has released on inspections RE COVID

Answer 15

Valuation practice alert - COVID-19 - which is updated on a regular basis following government/market updates - Last updated 6th November

Question 16

Statement from latest COVID Valuation practice alert

Answer 16

Any restrictions of information and/or the ability to inspect must be made clear, agreedwith the client and clearly stated in the report. All affected terms of engagement must beamended to confirm this. These requirements also apply to any valuation assumptionsthat are made as a consequence of restricted access and/or valuation information. If theregulated member considers that it is not possible to provide a valuation on a restrictedbasis, the instruction should be declined

All RICS-regulated members and other relevant stakeholders are advised to take a responsible approachtovaluation, inspections and investigations that prioritisesthe safety of the general public and those undertaking the work.

Question 17

Valuing without an inspection or with inspection limitations - Explain

Answer 17

‘inspections and investigations must always be carried out to the extent necessary to produce a valuation that is professionally adequate for its purpose’(VPS 2.1)

Any limitations or restrictions on the inspection or investigation must be recorded in the TOE and report.

Question 18

Inspection information from third parties

Answer 18

Where an inspection cannot be undertaken or is otherwise limited, an increased focus may be placed on information or data obtained from third parties. Red Book Global Standards VPS 2.1.8 makes clear that;

‘…the valuer should consider whether the information is credible and may be relied on without adversely affecting the credibility of the valuation opinion. In that event, the assignment may proceed. Significant inputs provided to the valuer (for example, by management or owners) that materially affect the valuation outcome but about which the valuer considers some element of doubt arises will require assessment, investigation and/or corroboration, as the case may be. In cases where the credibility or reliability of information supplied cannot be supported, such information should not be used.

Professional scepticism.

Question 19

Ensuring compliance with RICS standards when an inspection is not possible

Answer 19

Any assumptions/special assumptions must be noted

Any restrictions must be agreed and commented on.

Reasoning behind inability to inspect.

Question 20

How will the purpose change the inspection?

Answer 20

For sale & purchase - I may look at whether the current site is a suitable for sale
For Insolvency - I may look potential liabilities onsite to the client including security and

Question 21

What part of the Red Book relates to insepection

Answer 21

VPS 2 Inspection & Investigation’, which applies International Valuation Standard (IVS) 102 Investigations and compliance

VPGA 8 Valuation of real property interests (Not mandatory)
Identifies matters which may or will have an impact on the market’s perception of the value of the relevant interest, aspects of which may only become fully apparent during an inspection of the property. Includes;

characteristics of the locality and surrounding area
characteristics of the asset - age, size, how it’s installed
sustainability - running costs, hazardeous materials on site

Question 22

Inventories

Answer 22

I always ensure when carrying out an inspection, the inventory recorded is appropriate to complete the valuation off site and presented sufficiently for a third party to follow. My inventories are in the same format as my colleagues to ensure continuity within the firm and for clients.

Question 23

‘Insolvency Technical Manual – Chapter 8 – Inspections Generally

Answer 23

This guideline provides advice for Insolvency Practitioners and what is required of their appointed agent.

Client has a duty to secure property/assets
The inspection of assets owned or used by an insolvent may be an important part of the official receiver’s administration and investigation of the insolvent’s affairs. It may give an opportunity to ensure that assets are disclosed and protected for the benefit of the insolvent’s estate and an indication of the nature and scope of any business conducted. Guidance on when inspections should or shouldn’t be carried out – Not enough information provided

Question 24

Health & Saftey guidance in relation to inspections

Answer 24

RICS Surveying Safely, 2nd Edition - 2019

Question 25

RICS Surveying Safely, 2nd Edition - 2019 - What is included and related to inspection.

Answer 25

Travelling to and from site 
Lone working 
Condition of site 
Occupation of site
Site rules and welfare 
Hazards on site

Question 26

(Pharmaceutical Plant, South Manchester) - what PPE was required

Answer 26

It changed for different parts of the site but included;

PPE Included Coverall Suit, Over shoe covers, face mask, hair net.

Question 27

(Pharmaceutical Plant, South Manchester) - was there any limitations to the inspection?

Answer 27

No images were allowed to be taken due to staff working and sensitivity around products being made.

Question 28

(Petting Farm, Cheshire) - How did you split the asset classes

Answer 28

The client had asked for me to organise an agricultural surveyor for the livestock. When discussing the divide in assets it was agreed what each would do. I confirmed this in the TOE to the client.

Question 29

(Petting Farm, Cheshire) Did you encounter any issues with the inspection

Answer 29

There was a couple of assets not included in my part of the inspection but located in an area whereby the agricultural surveyor most probably hadn’t inspected. I wrote down the assets and prior to leaving site I met the surveyor and ran through whether he had noted these assets down.

Question 30

standardised questionnaire for inspections

Answer 30

Created as prompts to ensure all information is retrieved on site but also acts as a good file note that certain queries were asked.

Form includes querying - encumbered assets, third party asset, asset security, WIP, intangible assets, site occupation etc.

Question 31

New technology for inspections

Answer 31

Trying to create standardised forms on software to record inventories but difficult when the majority of the cases are not standard like a home buyers report.

Question 32

(Electronics Company, Castleford) - why was it not suitable to carry out a valuation on the first inspection

Answer 32

The restrictions on the inspection were too extreme to form an opinion of value. Details of assets needed to be recorded and could not be memorised.

Question 33

(Medal manufacturer - Birmingham) - What is COSHH

Answer 33

Control of Substances Hazardous to Health (COSHH)

Question 34

How did you know that they were considered COSHH

Answer 34

The Director advised me on my inspection and I carried out research.

Question 35

(Medal manufacturer - Birmingham) - Why did you provide this advice?

Answer 35

Because the company was in Administration I understand that the Administrators would have been liable for the disposal. It’s important my client knows of this before potentially accepting the instruction without this knowledge.

Question 36

what does the term professional adequate means

Answer 36

in regards to inspection, is the level of detail required for the purpose.

Term is mentioned throughout the red book in VPS 2 & VPS 3

Question 37

What parts of the red book cover inspection

Answer 37

VPS 2 Inspections, investigations and
records.

VPGA 8 – Valuation of real property interests

Question 38

What is included in VPGA 8?

Answer 38

Provides detailed commentary on matters evident or to be considered during inspection. Such as;

Sustainability
Environmental matters
Characteristics to be noted that affect market value

Question 39

What does VPS 2 include?

Answer 39

The importance of;

Determining the extent of investigations to produce a professionaly adequate report that is fit for purpose.
Any restrictions of the investigation
Verifying information relied upon