JL Submission - Mandatory Flashcards
1
Q
CC
What is a complaint?
A
Expression of dissatisfaction when expectations have not been met
2
Q
CC
You receive formal complaint from client in writing. What should you do regarding insurance?
A
Firm should notify insurance company ASAP
3
Q
CC
How would you deal with a complaint from a client?
A
- Acknowledge receipt of complaint, show empathy to client
- Establish basis of complaint
- Notify apt person in firm (i.e. complaint handling manager)
- Appoint someone to investigate
- Identify outcome and course of action to rectify
- Formally respond to client, communicate outcome
- If still unhappy- refer to independent dispute resolution
- Communicate lessons learnt internally
- Review at predetermined date in the future
- Inform PI insurers of complaint at each stage
4
Q
CC
RICS guidance on complaints handling?
A
Complaints Handling - 2016. Updated in January 2022 in line with new rules of conduct
5
Q
CC
How can complaints be avoided in the first instance?
A
- Set clear expectations in scope of service and appointment documents
- Communicate clearly and effectively with client and other key stakeholders
- Good record keeping
- Follow company procedures and policies (i.e. QA)
- Follow RICS stds, professional statements and guidance
- Seek feedback, resolve issues as they arise
- Acting within the boundaries of my services scope
6
Q
CC
If a client contacts you with a complaint regarding a document you have issued, what is your response?
A
- Acknowledge complaint, apologise, work to resolve complaint to their satisfaction
- If this doesn’t solve, refer client to firm’s complaint’s handling procedure for formal submission
7
Q
CC
How do you complain about an RICS member / firm?
A
- Raise concern with member
- Complain directly to them / firm via complaint handling procedure
- Complain directly to RICS (form / directly)
8
Q
CC
What must a complaints handling procedure include?
A
- RICS provides model form
- Must have a redress mechanism
- Details of policy issued to client with the Terms of Business
- Quick, transparent, impartial, free of charge in first stage
- Names and contact details of nominated investigating person must be stated
- Complaint to be investigated within 28 days
- All complaints, progress and outcomes must be recorded
- Note need to advise PI insurers of complaint
- 2 stages:
Stage 1 - consideration of complaint by senior member of firm / complaints handling officer
Stage 2 - if issue isn’t resolved, complaint referred to independent 3rd party with authority to award redress. Complainant may be expected to contribute towards costs at this stage
9
Q
CC
What is a good CHP?
A
- Fit for purpose
- All employees aware and understand process
- Good record keeping, reviewing lessons learnt
- Process regularly reviewed and updated
- Readily shared with (potential) complainants
- Agreed with PII brokers / providers
10
Q
CC
What is an independent redress scheme?
A
- Consumer scheme designed to handle small issues that would be disproportionately expensive to take to court
- If scheme judges in favour of complainant, binding
- If judgement in favour of firm, complainant can escalate matter to court
- RICS firms must specify which redress scheme they want to use (could be ombudsman, arbitration or adjudication)
- If complaint relates to a large amount of money or if complainant wishes to, they can take matter to court
11
Q
CC
What would you do if you receive a letter of complaint?
A
- Acknowledge receipt, forward to my firm’s designated complaint handler, as per our complaint handling procedure, providing additional info as requested
- Highlight importance of informing PII providers immediately
12
Q
CC
What is Stace’s Complaints Handling Procedure?
A
- As per the RICS documents- 2 stages:
Stage 1 - consideration of complaint by senior member of firm / complaints handling officer
Stage 2 - if issue isn’t resolved, complaint referred to independent 3rd party with authority to award redress. Complainant may be expected to contribute towards costs at this stage
13
Q
CC
What would you do for a CHP if you were a sole practitioner?
A
If it cannot be handled by myself, refer to redress scheme
14
Q
CC
When would you notify PI insurers about a complaint?
A
If it’s:
- Against negligence
- Reaches second stage
- If it could lead to a claim
15
Q
CC
How do you identify the client needs and expectations?
A
- Hold planning sessions / discussions regarding project key deliverables and scope of services required
- Appreciate each client and project is different- must be assessed on own merit
- Review any complaints, identify mistakes and best practice methods of working
- Ask questions, listen and identify key challenges/issues
- Client briefing checklists where applicable, seek further clarification if required
16
Q
CC
How do you manage your client’s expectations?
A
- Agree on strategy, goals and timelines
- Open and honest
- Offer advice and direction within scope of service
- Good listening, understanding expectations
- Directly address problems, regular communication
- Tailor service, KPIs to each client
17
Q
CC
Examples of a KPI?
A
- Qty of defects/snags
- Construction cost overrun
- Achieving programme milestones
- Profitability
- H&S scores
- Environmental scoring
- Use of local labour - social value
18
Q
CC
What is CPF?
A
Client performance feedback- gathering and acting on feedback
- During and after completion, by independent person
- Feedback sets standards for company, identifies areas for improvement
- Open discussions ensure satisfactory service delivered and goals achieved
- Provides opportunity to gain future work for company
- Regular intervals (3-6 months) to ensure problems can be identified and rectified sooner
19
Q
CC
Please provide an example of your client care and empathy skills?
A
- Although multiple projects, ensure to prioritise each client’s needs accordingly
- Make the client feel like their project is at the centre of my attention
- Organisation, communication -> meet deliverables in advance of agreed deadlines
- Deliver work to a high standard
20
Q
CC
Why is client care important?
A
- Retain clients, secure repeat business
- Reduce likelihood of conflict
- Protect company PI insurance
- Maintain stronger reputation within the industry
- Attract further clients
21
Q
CC
What else might be included in the Standard form of consultant’s appointment?
A
(Mentioned in doc: insurance, termination / suspension, dispute resolution, payment)
- Definitions and interpretation
- Consultant and client’s obligations
- Consultant’s personnel
- Limitations of liability
- Copyright, confidentiality and anti-bribery
- Assignment, transfer of rights, subcontracting
22
Q
CC
Can you tell me when you might use the RICS short form of consultant’s appointment?
A
- Suitable for construction projects of a simple / straightforward nature
- i.e. QS / PM / EA / CA / PD services
- Not recommended for specialist services (i.e. expert witness, technical due diligence, building surveying)
23
Q
CC
What’s included within the RICS short form of consultant’s appointment?
A
- Statutory requirements
- Fees and payment
- Additional services
- Insurance
- Copyright
- Termination and suspension
- Disputes
- General
24
Q
CC
What is a project stakeholder?
A
Person / organisation with interest in project
25
CC
How did you keep track of the stakeholders on your project?
- La Plata mentioned in documents
- Usually PM responsibility
- Acknowledged in meeting, kept track with risk section in the minutes
- Frequent meetings
- Client and contractor understood lines of communication- most things forwarded to EA and/or relevant party
26
CC
How did you present your cost options to the client?
La Plata
- Prepared document with each option clearly set out
- Listed assumptions and exclusions
- Found prices from CSA or recent projects / pricing books where not possible
- Issued in draft for comment, talked with client about options so they understood
27
CC
What is a lessons learnt workshop?
- Review recent failing or success on a project
- Put procedures in place to prevent the failing happening again
- Review success and share with others
28
CC
What did you learn on your EGHH project to take into your future project?
- Communication - established clear lines and points of communication
- Lots of design changes - established clearer design freeze dates
- Information / design updates forwarded to relevant parties
- Keeping more consistent cost tracker alongside cost report to regularly update project team on any changes
- More frequent risk register meetings
29
CC
What are the objectives of the Client Handling Money professional statement?
- Clear rules for RICS regulated firms to have apt controls and procedures to keep money safe
- Confidence to clients and consumers that RICS regulated firms operating to high professional standards
30
CC
Key requirements in the Client Money Handling professional statement?
- Client account requirements
- Apt accounting controls
- Info that firms must provide to clients
- How to handle client money inc rules for managing unidentified funds
31
CC
What is the RICS client money protection scheme?
Last resort scheme providing protection in unlikely event a firm is unable to repay client's money (up to limits / exceptions set out in scheme rules)
32
CC
If a client wants to pay in advance for your services, how would you deal with this?
- Set up separate account- clearly identifiable, provide client with access
- Refer to client money handling guidance note (rule 8)
- Inform client how and when monies will be drawn, provide statement
- Once services complete, send statement with all transactions
- Maintain transparency, auditability, ensure money has been checked for laundering
33
C&N
How would you present graphs and charts in a more accessible way?
- Refer to Office for National Statistics government website on presenting data
- Ensure text is consistent font and size - large enough
- Clear chart titles
- Gridlines within graphs to easily interpret data
- Clarify any colour issues with client - ensure high contrast to distinguish colours easier
34
C&N
What are the different ways you communicate with your team?
Oral
- Calls, meetings (reporting at, facilitating, chairing), presentations (client/staff), interviews, public speaking, listening skills
Non verbal
- Body language, eye contact, gestures, appearance
Written/Graphical
- Letters, memos, emails, reports, tender/contract documents, programmes, drawings, specs
35
C&N
Advantages and disadvantages of written communication?
- Complex / technical info can be communicated with drawings, diagrams, charts etc.
- Record kept of communication
- Formalise verbal agreements
- Can be circulated to multiple parties quickly
36
C&N
Examples of good communication?
Written:
- Message short, clear, easy to read/understand
- Well structured with intro, substance, conclusion
- Charts/diagrams/pictures to enhance meaning
- Recipient understands without ambiguity
- Accessibility considerations (no specialist language, acronyms if not required, colours)
Oral / body language:
- Speaking and enunciating clearly
- Clear tone - positive where possible, empathetic
- Good posture
- Positive / appropriate facial expressions
- Appropriate use of hand gestures
- Eye contact
37
C&N
Please provide an example of your communication skills
- Presentation skills (RICS ambassador, apprentice ambassador, speaking to schools, university, panels, at work in meetings)
- Holding site meetings with client/contractor, negotiating contract sum/conditions/changes
- Day-to-day, phone calls, video calls, meetings, in office
38
C&N
What are some of the barriers to effective communication?
- Difference between verbal and non-verbal (body language doesn't match words)
- Individual perceptions, prejudice, bias
- Body language can distract people if used ineffectively
- Language/cultural/time/location differences
- Unclear/ambiguous tone
- Language that is too technical/specialist
- Emotionally charged conversations- parties unable to listen
- Disinterest, boredom
- Poor call quality, background noise
- Poorly maintained/adversarial relationships
39
C&N
What are your thoughts on using email as a form of communication?
- Same legal value as a letter, can inadvertently create contracts
- Must be careful regarding content
- Can be perceived as informal, easy to become complacent
- Ensure to communicate in professional manner, polite, unambiguous tone (no sarcasm)
- Ensure I select correct recipient, not sharing email addresses without consent
- Blind copying can pose a question on the ethical side of the action - can be dishonest or misinformative
- Can ensure the message is understood by following up / preceding with a phone call
40
C&N
What is meant by etiquette?
Rules / conventions regulating how people are expected to behave in social and professional situations
41
C&N
How do you demonstrate etiquette in your communication?
- Consider the use of formal / informal communication
- i.e. Teams may be a bit more casual, whilst emails I make sure to be courteous and succinct, clearly demonstrating my point.
- Documents issued formal, in 3rd person and factual
42
C&N
What is negotiation?
Discussions to reach a compromise / agreement. Can be informal / facilitated process to agree to settle dispute either at high level / in detail
43
C&N
What key things do you need to think about before entering negotiation?
- What level I'm authorised to negotiate (i.e. up to £xx)
- My (and client) red lines
- Sufficient facts and information
- Character of the person I'm negotiating with
- What I want the outcome to be
- Negotiation structure
- Areas I'm willing to compromise
44
C&N
What steps are there when preparing for a negotiation?
- Internal research, prep
- Identify non negotiable items
- Organise meeting at convenient time, location, flexibility in schedule
45
C&N
What is your negotiating style?
Depends on situation. If a strong claim for client I would aim to get best deal, but I aim to be collaborative, reasonable and endeavour to find resolution
46
C&N
When faced with a challenging negotiation, how do you conduct yourself in a fair and professional manner?
- Stay objective as possible, enter negotiation intending to find resolution
- Undertake detailed research, collate supporting documentation/substantiation
- Undertake work ethically, to required standards
- Discuss internally with senior, client, project team for items that can be conceded
- Respectful to other party, aim to understand their position so less adversarial
- Winning project- all have this same common goal, rather than winners and losers
47
C&N
What happens during a negotiation meeting?
- Both parties should be allowed to discuss position, reasoning for this position
- Maintaining professionalism, calm, act with respect and courtesy
- Calm setting
- Both parties honour agreements reached for benefit of the project
- Put in writing negotiated items ASAP
48
C&N
Types of negotiation strategies?
- Competitive (win/lose)
- Collaborative (win/win)
- Accommodation (lose to win)
- Avoidance
49
C&N
Main barriers to negotiation?
- Lack of trust, information, emotional intelligence
- Cultural differences
- Communication problems
50
C&N
What could indicate success of a negotiation on a final account? / What defines a successful outcome?
- Both parties come away satisfied, costs agreed and within client's budget
- Clearly defined outcome, all parties have had the opportunity to present their case
51
CN
Give an example when you successfully negotiated?
- Final account on xxx
- Assessed my position, advised client of this and ensured I understood their budget and limitations
- Brought supporting documentation
- Discussion with contractor, both presented our positions calmly, politely, settled at figure palatable to both parties
- Formed good working relationship with contractor throughout project, communicated clearly and respectfully which helped with negotiation
- Confirmation in writing on what was agreed in meeting, any actions, next steps to bring negotiations to a close
- Can consider variation costs, i.e. if item was not priced in original costs but unclear communication
52
H&S
Can you give a quick overview of the Surveying Safely guidance note?
Talks about my responsibilities as a professional, including in the work, when visiting sites, and fire safety.
9 parts:
1. Personal and corporate responsibilities
2. Relevance to RICS professional groups
3. Assessing Hazards and risks
4. Places of work
5. Occupational health and hygiene
6. Visiting sites
7. Fire safety (apt exit routes, flammable objects, fire protection - may need specialist)
8. Residential property surveying
9. General procurement and management of contractors
App A - example audit (scoring) system
53
H&S
What are some of the influencing factors on H&S?
According to Surveying Safely:
- Cultural differences
- Different legal / judicial systems
- Size of firms
- Nature of projects
54
H&S
What are your H&S responsibilities?
- Ensure corporate H&S policies practised effectively
- Have necessary skills, training and experience
- Conduct risk assessment
- Recognise when matters beyond competence
55
H&S
What are your firm’s responsibilities?
- Risk identification process
- Time management structure
- Allow sufficient time, resources and training
- Ensure supply chain complies with H&S processes
- Clear lines of accountability
- Policies, training
- Insurance
56
H&S
How do you assess risks and hazards?
- Risk management - take adequate time
- Assess risk - identify, identify responsible party, record, review / update where necessary
- Dynamic - continually adapt and reevaluate to changing circumstances
- Evaluating risk - measure risk quantitatively / qualitatively. Consider environment where working, decide how often I need relevant training / feedback on corporate policies
57
H&S
What is the hierarchy of risk control?
In Surveying Safely, aiming to reduce risk to lowest reasonable level
1. Elimination (redesign / substitute substance)
2. Substitution (replace materials)
3. Engineering controls (separate hazards on site - enclose/guard - measures that protect collectively)
4. Administrative controls (identify and implement procedures to work safely, i.e. reducing lone working / completing in daylight)
5. PPE
58
H&S
What is the ‘safe person’ concept according to RICS Surveying Safely?
- Each individual assumes responsibility for their own behaviour, as well as colleagues and others’ H&S at work
- Firms must provide safe working environment, equipment and competent staff
59
H&S
Basic H&S requirements at work?
Surveying safely:
- WC facilities
- Access to safe drinking water
- Apt temperature and light (control where necessary)
- First aid / emergency arrangements
- Replacing fresh air
- Safe fire evacuation
- Relevant alarms (fire, smoke)
- Welfare facilities
- Regular maintenance work
60
H&S
What do you consider before visiting site?
- Safe means of transport
- Site induction
- Risk assessment - consider potential hazards / risks on site
- Site rules
- Safe access to tall spaces (i.e. roof)?
- Likelihood of dangerous equipment / substances
61
H&S
What do you consider when visiting a site?
- Site induction
- Structural stability / obstacles
- Items falling from height
- Any unsafe hazards inhaled (plants, mould, etc)
- Look out for live / unsecured services
- Inform when I am arriving / leaving
62
H&S
What PPE might you require on site?
- Hard hat
- Steel toe capped boots
- Gloves
- Goggles/eye protection
- Hearing protection
- High vis vest
- Face mask
63
H&S
Where is asbestos commonly found in older buildings?
- Cement gutters and downpipes
- Corrugated roofs
- Floor and ceiling tiles
- Insulated boards, lagging
- Textiles
- Soffits
64
H&S
Key points of the CDM regulations?
Construction (Design and Management) Regulations 2015
- Ensures clients, designers, contractors and others consider H&S of those constructing, maintaining and demolishing works
- Statutory duties on client, principal designer, designer, contractor to plan, manage and coordinate H&S throughout project
- Anyone with input on design are considered designers, have responsibility to ensure H&S
65
H&S
Key duty holders under CDM 2015?
- Client
- Principal designer
- Principal contractor
- Designer(s)
- Contractor(s)
- Workers
66
H&S
What are your duties under CDM regulations?
- Designer, ensure client aware of their duties
- Flag H&S risks
67
H&S
Key implications of CDM regs for cost consultants?
If responsible for specifying material / working methods, would be deemed designers and need to consider H&S aspect.
i.e. brick slip systems, considering spec, ensure no risk of brick slip falls
68
H&S
What are your client’s duties under CDM?
- Provide PCI to contractor
- Appoint competent PD and principal contractor
- F10
69
H&S
What is the role of the principal contractor?
- Manage H&S risks during construction phase
- Plan, manage, monitor, coordinate construction phase
- Account for H&S risks to everyone affected by work (including members of public)- plan and manage measures needed to control them
- Prepare written construction phase plan before construction begins, implement and regularly review/revise to ensure it remains fit for purpose
- Ongoing arrangements in place for managing H&S throughout construction
- Consult and engage with workers about health, safety and welfare
- Ensure suitable welfare facilities provided and maintained during construction
- Ensure workers have site-specific inductions and any further info/training
- Prevent unauthorised access to site
- Liaise with PD to share info relevant to planning, management, monitoring and coordination of pre-construction phase
70
H&S
3 documents included in CDM regs?
- H&S file
- PCI
- Construction phase plan
71
H&S
What is pre-construction information (PCI)?
- Vital role in tender docs, enables prospective contractors to be fully aware of H&S and welfare requirements
- Provides level playing field for H&S in submissions
- Can provide focus at which H&S considerations of designs brought together under control of PD
72
H&S
What's included in the PCI document?
- Description of works
- Client considerations, management requirements
- Hoarding, welfare facilities, traffic restrictions, permits to work
- Environmental restrictions, existing site risks
- Significant design and construction hazards
- H&S file requirements
73
H&S
What is the H&S File?
Doc issued promptly after construction works finished containing info needed during future construction work (including cleaning, maintenance, alterations, refurb, demo works). Parties involved in future works must alert these to any H&S risks that should be considered in planning or carrying out of such works
74
H&S
Whose responsibility is the H&S file?
- All parties - ensure info included in H&S file is accurate, relevant and promptly provided
- PD must ensure file is prepared, reviewed, amended as necessary, then issued to client
- Client, designers, contractors must supply info that needs to be included
- Clients must ensure H&S file available to parties involved in future construction works at same site
75
H&S
Role of the principal designer?
- Influence how H&S risks managed throughout project
- Plan, manage, monitor, coordinate H&S in pre-construction phase
- Advise client when bringing together pre-construction info, provide info designers and contractors need to carry out duties
- Work with other designers to eliminate/reduce/control foreseeable H&S risk to anyone affected by work
- Ensure everyone involved in pre-construction phase communicates, cooperates and coordinates work
- Liaise with principal contractor, keep them informed of risks that need to be controlled during construction phase
76
H&S
What hygiene protocols were you looking out for when receiving tenders?
- Depends on client requirements / policies
- Could be sanitising stations
- One way systems
- Policies for when site workers become sick
77
AP
What is a balance sheet?
- 'Snapshot' of company financial position at given point in time
- Reports on company's assets, liabilities, ownership equity
- Used to assess financial position/health and can be compared with prev balance sheets to identify trends - provides basis for ratios
78
AP
What can you tell from a balance sheet?
How much a business is worth at any given point (i.e. if business owes more than it owes, assets)
79
AP
What is a cash flow forecast / statement?
- Document showing how much money a business/project is expected to receive and pay out over set period
- Helps plan sales / spending
- Helps understand when money will enter and leave bank account
- Measures short-term ability of firm to pay off bills
- Broken down to operating, investment and financing activities
Construction
- Usually shown as 'S' curve - small financial outlay at start, steep increase during midway point and tapering towards end
80
AP
What is the cashflow forecast used for?
- Understand impact on future plans, possible outcomes
- Keep track of overdue payments
- Plan/manage upcoming cash gaps / surplus
- Track whether spending is on target
81
AP
Why is cashflow important for a construction project?
- Allows client to gain understanding of financial commitment over duration of project and when likely to spend the money
- Can be used to determine when external funding is required
- Acts as a check against valuations, can give early indication of delays / financial difficulties
82
AP
How does a cashflow forecast help a company remain solvent?
- Can predict when a business/project has money to pay out and when money is coming in
- Highlights if business/project has negative cashflow- they can do something about it in good time
83
AP
What is an S-Curve?
- 'Standard' curve - shape of expenditure profile looks like an S
- At start of project, rate of expenditure typically lower due to site setup and lower value enabling works
- Middle of programme - higher expenditure, more expensive building components i.e. M&E, steel, materials being installed
- End - expenditure slows down (less to do) - curve flattens
84
AP
How are S-Curves used by surveyors?
- Track, analyse and assess business accounts and performance
- Assess financial strength of contractors
- Compare actual progress of work against pre-contract predictions
85
AP
What is a profit and loss account?
- Shows company revenue and expenses over particular period (i.e. consolidated months over a year)
- Show whether business has made a profit or loss over that period (sales vs expense)
- Can identify non-profitable work
- Indicates how revenues transformed into nett income (nett profit)
86
AP
Purpose of a profit and loss account?
- Monitor and measure profit/loss
- Compare against past performance and company budgets
- Valuation purposes, compare against competitors
- Forecast future performance
- Calculate taxation
Significant problems if info inaccurate (incompetence/fraud)
87
AP
Difference between a balance sheet and profit and loss account?
- Balance sheet is 'snapshot' at one given time, showing financial position of company (assets and liabilities)
- Profit and loss shows profit/loss over determined period
88
AP
How would you determine financial standing of a company prior to doing business with them?
- Dun & Bradsheet report creates business credit report
- Score between 80-100 would have lower risk of late/default on payment
89
AP
How do you carry out a credit check? Give example
- Use credit safe website to which my company subscribes to access company's accounts
- Consider both group and company accounts
- If credit rating is low, I calculate key ratios and pass on all information to my client's accountant for them to analyse further
90
AP
How do you analyse a company's accounts?
- Client's accountants undertake detailed analysis
- As a QS I can look at warning signs, calculating ratios, i.e. liquidity, profitability, gearing
- Use group/consolidated accounts over company accounts (unless it's a limited company)
91
AP
What are signs of contractor insolvency on a project?
- Slowing down works
- Supply of materials drying up
- Increase in defective work
- Changes in management
- Additional / inflated payment requests
- Complaints from subcontractors
92
AP
Under what circumstance might QS' encounter insolvency?
- Project where contractor/subcontractor has serious financial difficulties and can't pay their debts
- Client may have a project where contractor has ceased trading and needs advice
- May be appointed by external body (liquidator/administrator) to prepare report on a commercial aspect of project
93
AP
What steps would you take in the event of contractor insolvency?
- Inform all parties involved (inc bondsman i.e. bank/insurance company), secure site
- Consider stopping pending payments and seek legal advice
- Take ownership of materials off-site paid for in valuation
- Schedule all plant and materials
- Value completed works and value any defects
- Monitor loss and expense incurred
- Terminate building contract, employ others to complete
94
AP
Other responsibilities of the auditor?
[mentioned in submission - determine accuracy of company financial records, make best practice recommendations for company]
- Identify and assess risks
- Ensure sufficient evidence obtained for financial information
- Explain the findings of their financial investigations of a company
95
BP
What is a business plan?
- Document summarising operational and financial objectives of a business
- Roadmap to success - detailed plans and budgets showing how objectives will be achieved
- Timescale likely 3-5 yrs min
- Provides employers common ground to focus upon
96
BP
What's included in a business plan?
[- Management team, personnel, training, resource strategy
- SWOT analysis]
- Executive summary
- Marketing strategy
- Vision and mission statements
- Products and services
- Financial forecasts
- Responsibilities, targets
97
BP
What is a SWOT analysis?
- Strengths, weaknesses, opportunities threats (related to project / business venture)
- Can be used as basis for business strategy
98
BP
Name some types of financial benchmarking metrics / accounting ratios
- Liquidity ratio
- Profitability ratio
- Gearing ratio
99
BP
What is liquidity ratio? (or current assets ratio)
- Organisation's ability to turn assets into cash to pay debts
- Current assets / current liabilities
- Ratio usually 1.5, depends on sector of activity - housebuilders often operate on liquidity ratio over 3 as they retain high value assets in form of unsold houses
- Liquidity ratio <0.75 can be early indicator of insolvency
100
BP
What is profitability ratio?
- Assess business' ability to generate profits
- Trading profit margin ratio = turnover - (cost of sales/turnover)
- Low margins may be due to growth strategy from company (not necessarily bad management)
101
BP
What is a financial gearing ratio?
- Measures proportion of company's borrowed funds to its equity
- Helps measure solvency
- Highly geared companies may rely mainly on borrowing
- Interest payment reduces profit
102
BP
How does business planning ensure profitability?
- Efficient use of resources
- Establishes communal goal for employees
- Increased expertise, higher standard of service
- These can motivate better reputation, increased profits
- KPIs (measuring tools) and appraisals can be aligned with business plan - better results and profitability
- Reduce wasted resources
103
BP
What tools does your company use to ensure you are making a profit?
- Timesheets
- Resource planners
- Fee/cost reconciliation tools
- Project reviews
- Yearly performance reviews
- Team meetings
104
BP
How do you contribute to your company's goals?
- Sharing knowledge within my team
- Keeping up to date with new technologies and systems
- Delivering and exceeding responsibilities
- Understanding personal / project objectives
- Bringing in new business
- Focus on safety
- Upskilling new and junior team members
105
BP
Would you be able to interpret and understand an annual account?
At a high level to determine basic ratios, however I would seek advice from internal accountants if and when necessary
106
BP
What do you need to consider when setting up your own RICS practice?
- Making sure I comply with RICS Rules and behaviours set out for firms
- Register business, apply to HMRC
- Set up company (+ client) bank accounts
- Obtain apt PI, run off cover
- Director and officer liability
- Building insurance
107
BP
Do you know about the RICS business plan?
Incorporating Levitt Report Recommendations
- More open and transparent about institutional operation, decision making, finances
- More effective whistleblowing arrangements
- Senior executive reward arrangements reviewed
Financial priorities:
- Minimise increased costs to subscription levels
- Continued support to profession in recovery from COVID-19
- Utilise surplus cash to pay back furlough monies received via govt Coronavirus Job Retention Scheme
- Reduce RICS' need to access external financial support (inc reducing funding deficit in closed Final Salary Pension Scheme)
108
Conflict
Can you give a quick overview of the Conflict Avoidance guidance note?
2012
- L1 (knowing) - conflict avoidance processes, dispute resolution techniques, ADR, standard form contracts
- L2 (doing) - conflict avoidance, dispute resolution procedures
- L3 (doing / advising) - dispute escalation clauses, interim valuations and claims
109
Conflict
Processes for avoiding conflict?
- Good management (client, project, contractor, design team)
- Clear contract documentation
- Partnering (cooperative participants)
- Good payment practice
- Record keeping
- Regular reporting
110
Conflict
What are the three pillars of dispute resolution?
According to conflict avoidance guidance note:
- Negotiation
- Mediation
- Adjudication
111
Conflict
Describe some of the dispute resolution procedures
ADR:
- Mediation
- Conciliation
- Negotiation
- Expert determination
Dispute resolution
- Adjudication
- Arbitration
- Adjudication
112
Conflict
Advantages of expert determination?
- Confidential, less adversarial, enables working relationship to be maintained
- Cost and time efficient for resolving disputes
- Procedures controlled by parties not court rules
- Expert can be appointed who is familiar with the technical issues
113
Conflict
What are some of the claims that would be brought to the TCC?
- Building / construction disputes (including claims for enforcement of adjudicators’ decisions)
- Engineering disputes
- Claims by / against designers, surveyors / specialised advisers
- Claims by and against local authorities
- Claims relating to the environment (i.e. pollution)
- Challenges to arbitration decisions
114
Conflict
Who pays legal costs in dispute resolution?
Could be shared by parties / by claiming party / subject to judge decision
115
Conflict
What do you have to consider in your QS role that could lead to disputes?
As per conflict avoidance guidance note:
- Interim valuations - ensuring accurate and reasonable assessment
- Claims (i.e. disruption, prolongation, changes) - must assess regularly; three main claims related to time, money (EoT, i.e. Escalation, Interest, OH&P) and quality (defects)
116
Conflict
What is a dispute escalation clause?
Amendment to standard form contracts, to provide further steps for dispute resolution, i.e. notice, referral in timescales, mediation / arbitration / litigation procedures
117
Conflict
How to initially deal with conflict?
- Raise issue with all parties, try to resolve through communication and negotiation
- Face-to-face meeting usually best way to find resolution
118
Conflict
What to do if negotiation breaks down and the matter cannot be resolved?
Consider ADR (alternative dispute resolution)
119
Conflict
What dispute resolution processes are mentioned in your contract?
i.e. JCT - negotiation, mediation, adjudication, arbitration
120
Conflict
What is the TCC?
Technology and Construction Court
- Handles disputes about buildings, engineering, surveying
- Cases usually >£250,000
121
Conflict
How would construction procurement routes affect conflict avoidance techniques?
[- Frameworks may set out established parties for expert determination]
- D&B - if there are novated architects, may have collateral warranties / contracts with contractor that set out specific dispute resolution
- Construction management - may have relevant procedures in place for CM liabilities
122
Conflict
You're instructed to work on a proposed development which would require removal of a nature reserve. You have strong views on protecting the environment. What should you do?
- Ask myself if I could work on the project without bias / Conflict of Interest
- Notify the client in writing of the potential Conflict of Interest
- May need to respectfully decline commision - offer to someone else in organisation who could work without bias or Conflict of Interest
123
Conflict
What is negotiation?
- Cooperation of all parties, all agree to be bound by this settlement
124
Conflict
What is mediation?
- Parties agree to independent third-party neutral system to facilitate discussion, with goal of reaching settlement
- Mediator encourages parties to come together
- Power to settle remains with parties, process led by mediator (mediator doesn't award winning party)
- Mutual (voluntary) agreement, initiated at any time between parties
- Non binding
125
Conflict
Adjudicating bodies under JCT?
- Royal Institute of British Architects (RIBA)
- Royal Institution of Chartered Surveyors (RICS)
- constructionadjudicators.com
- Association of Independent Construction Adjudicators
- Chartered Institute of Arbitrators
126
Conflict
Advantages and disadvantages of arbitration?
:)
- Private process - no public process (not necessarily confidential) - can preserve reputations
- Faster than litigation
- Arbitrator can have relevant expertise on matter, and their decision can be enforced as judgement of the court
:(
- Parties must bear costs of arbitrator and venue
- Limited appeal rights
- For low value disputes, arbitrator fees can be uneconomical
127
Conflict
Arbitration options listed in contract conditions?
- Royal Institute of British Architects
- Royal Institution of Chartered Surveyors
- Chartered Institute of Arbitrators
128
Conflict
What does RICS provide for arbitration?
- RICS fast track service
- claims up to £100k, resolved within 6 months from date of appointment
129
Conflict
Difference between arbitration and litigation procedures?
Arbitration
- Governed by Arbitration Act 1996
- Must be agreement by both parties to enter into arbitration
- Wide degree of discretion by parties to how proceedings conducted
- Private process
- Similar to litigation- formal submissions, expert evidence, hearings and decision
Litigation
- Proceedings conducted in court
- Public process following civil rules
- High costs, but process can deal with multi-party disputes and civil procedure rules (aiming for accessibility, speed and efficiency)
130
DM
Do you know of any RICS guidance to do with data management?
RICS Data Management Guidance Note
(and Freedom of Information Act 2000)
131
DM
How long do you need to keep data for?
- 6 years if contract signed underhand, 12 years if signed as a deed
- RICS recommends <15 years (limitation period for most legal claims)
132
DM
How does Stace protect client data?
Online filing system, password-locked files, restricted access to certain drives
133
DM
Types of data systems used in your organisation?
- Shared hard drives - confidential ones for certain clients
- Backup servers
- Online storage systems (one drive)
- Software i.e. Teams
- Project extranet
134
DM
Benefits of cloud-based storage systems?
- Easy access worldwide
- Secure / password protected and backed up
- Low set-up costs
- Teams can work in 'real time' - multiple users access same docs (which can be synchronised)
- Access control / restrictions / accessibility available for confidential files / folders
- Convenient to send and share files
- Relatively environmentally friendly
135
DM
What is BCIS?
Building Cost Information Service
- Provides cost and price data for UK construction industry, helping produce specific estimates, early cost advice, plan costs and benchmarks
- Part of RICS
136
DM
Where does the data on the BCIS come from?
Real life projects, where members of the construction industry provide cost information that's uploaded to database (following review by BCIS staff)
137
DM
What cost data is submitted to the BCIS?
Elemental costs from pricing documents, including % for each element, details of contract, procurement and tendering route, description of works, GIFA, base date, location
138
DM
What else is available on BCIS?
Cost analysis, indices, average prices, life cycle costing, wages, dayworks, schedule of rates, contract %, tender price studies
139
DM
What cost data do you obtain from Building magazine?
- Cost models, potentially basing on sector / particular project (These give elemental costs, £/sqm (GIA) and elemental %)
- International cost comparisons
140
DM
What influences the cost data we hold?
- Level of detail provided, consideration and identification of project abnormals affecting pricing
- Amount of cost data in particular location
- Age of data
- Project location
141
DM
How do you manage these sources of info to ensure compliance with legislation?
- If signed up to NDA, I ensure complete confidentiality - unable to talk with colleagues not party to project
- Use lockable and secure document storage for hard copy documents
- Electronic info kept securely on encrypted servers
- Lock computer when away from desk, comply with IT policies & training
- Obtain client's written permission if sharing / processing info not available to public domain
142
DM
Benefits and limitations of utilising BCIS?
:)
- Lots more data than available in organisation
- Can filter information to find projects closer to current project
- Can give % indication for inflation
- Lots of types of data available
:(
- Info may not be directly applicable to current project - can have projects from a long time ago
- Info uploaded tends to be on larger projects - some more limited info for smaller scales
- Insufficient specification
- Lack of elemental unit rates and qty’s
143
DM
Benefits and limitations of using Building Magazine?
:)
- Detailed information for a project type
- Gives detailed commentary and considerations
- Projects over different sectors
:(
- Based on specific size and type of project, rather than general overview of lots of projects (difficult to determine anomalous rates)
- Lack of some qty’s
- Some very large / high profile schemes used and submitted - difficult to compare for smaller scale
- More limited info compared to BCIS
144
DM
What is benchmarking?
- Method of comparing performance of project against others, to make targeted improvements
- Types of benchmarking comparisons include £/sqm, £/unit, CO2 emissions, building efficiency (wall to floor, NIA to GIA, facade and glazing), sustainability ratings
145
DM
Key principles of the Data Protection Act?
Ensures data is:
- Used fairly, lawfully, transparently
- Used in way that's adequate, relevant and relevant to only intended purpose
- Not retained for longer than necessary
- Processed securely inc protection against unlawful use/loss/destruction
146
DM
What are a person’s rights under the data protection act?
To:
1. Be informed
2. Access
3. Rectification
4. Erasure
5. Restrict processing
6. Data portability
7. Object to use of data
147
DM
How does your company ensure compliance with data protection legislation?
- Only retain data needed to perform day-to-day operations
- If retaining someone's data, ensure the person is informed and advised why they have it
- Hold data securely
- Keep info up to date, delete info no longer needed
148
DM
What can you do to protect commercially sensitive info?
Only print docs when necessary, use Atkins sensitivity rating, log out/lock screen when not at desk, only keep data for min time required, don't work in public places
149
DM
How do Stace’s company policies comply with Data Protection Act?
- Ensure information is only stored as long as necessary
- Data is used fairly, lawfully and transparently
- Ensure to only use information in line with intended purpose
- Provide information barriers / private drives to keep certain information confidential
150
D&I
What is meant by unconscious bias?
- Underlying attitudes and stereotypes that people unconsciously attribute to another person / group of people that affect how they understand and engage with them
- These can contribute to a lack of workplace diversity
151
D&I
What is workplace diversity?
- Company hires wide range of diverse individuals
- Acceptance and inclusion of employees of all backgrounds - acknowledges employee individual strengths and potential
- Often misconceived as solely multicultural matters, though it also applies to diversity of gender, race, ethnicity, age, sexuality, language, educational background
152
D&I
Why is diversity important within the workplace?
- Brings different perspectives to the company
- This helps calibrate, refine, define company executions and services
153
D&I
Advantages of a diverse team?
- Different ideas and new ways of thinking
- Bring different experiences to the table, cultural awareness
- Adds to employer brand and company culture - positive reputation
- Increased productivity - broader range of skills and perspectives
154
D&I
What is inclusion in the workplace?
Work environment where all individuals treated fairly and respectfully, have equal access to opportunities and resources, contributing fully to organisation's success
155
D&I
Difference between diversity and inclusion?
- Diversity - characteristics that make us all different
- Inclusion - making everyone feel welcome
156
D&I
What is meant by teamwork?
- Cooperative effort by group of people to achieve common goal
- People understand and believe that thinking, planning, decisions and actions are better when done cooperatively
157
D&I
What makes a good/effective team?
- Common sense of purpose
- Clear understanding of team objectives
- Resources to achieve objectives
- Mutual respect and trust
- Value member strengths and weaknesses
- Willingness to speak openly, share knowledge and expertise
- Range of skills and personal styles for various roles
158
D&I
What are the benefits of teamworking?
- Shared workload
- Improved productivity, quality, customer focus
- Speed up development of solutions
- Increase employee motivation
- Utilise different skillsets
159
D&I
Why might a team fail?
- Poor team member selection
- Inadequate skills, resource, conflicting personalities, poor leadership
160
D&I
Theoretical models relating to teams and how they operate?
Tuckman's theory - focuses on way in which team tackles task from initial team formation to project completion
1. Forming (assembly of team)
2. Storming (suggesting ideas to address task)
3. Norming (agreeing rules and values of operation)
4. Performing (independence, motivation, knowledge, competence)
5. Adjorning/Transforming (end of project and break up of team -team can return to any phase)
161
D&I
How would you deal with an inexperienced team member?
- Encouragement and motivation
- Draw up plan to strengthen areas of weakness
- Constructive feedback and offer support where needed
162
IE
What is the equality act?
- Discrimination law protecting individuals from unfair treatment, promotest fair and equal society
- Provides legal framework to protect rights of individuals, advance equality of opportunity for all
163
IE
What are the protected characteristics under the act?
Against the law to discriminate because of:
1. Age
2. Disability
3. Gender reassignment
4. Marriage / civil partnership
5. Pregnancy, maternity
6. Race
7. Religion and belief
8. Sex
9. Sexual orientation
164
IE
What is discrimination?
- Unjust / prejudicial treatment of different people, especially on the grounds of protected characteristics
- Under equality act, the 4 main types include direct, indirect, harassment, victimisation
165
IE
Are there any Building Regulations relevant to inclusive environments?
Approved Document M - Access to and use of buildings
- Provides info about ease of access and use of buildings for people of all abilities, including to bathrooms
- Guidance on use of ramps and steps to provide ease of access, safe degrees of pitch and dims when building wheelchair accessible facility
- Construction of stairs and corridors - safe height of stairs and accessible width of both corridors and stairs
- Document provides guidance on access and use of extensions made to buildings other than dwellings- access to toilets, bathrooms, sinks
166
IE
Give some examples of how a building can be inclusive?
- Physical access - i.e. ramps, lifts
- Hearing loops
- Dedicated feeding areas to new parents
- Prayer rooms
- Accessible parking bays
- Contrasting colours, i.e. to sockets, nosings, door frames
167
IE
RICS Inclusivity programmes?
Inclusive Employer Quality Mark (IEQM)
- Introduced by RICS in 2015 - 4 principles include leadership, recruitment, culture and development
- Encourages businesses to champion and consider inclusivity in day-to-day operations
[not currently available]
168
IE
What are the CIC’s essential principles?
- Contribute to building an inclusive society now and in the future
- Apply professional and responsible judgement, take a leadership role
- Apply and integrate principles of inclusive design from outset of a project
- Do more than just legislation and codes
- Seek multiple views to solve accessibility and inclusivity challenges
- Acquire skills, knowledge, understanding and confidence to make inclusion the norm and not the exception
169
Sustainability
Why is sustainability important to construction?
- Construction industry has a huge impact on the environment, accounting for 36% worldwide energy usage, 40% CO2 emissions
- Construction can also result in hazardous waste, where improper disposal results in pollution - affects health and environment
170
Sustainability
What are the 3 pillars to sustainability?
According to Brundtland Report / RICS ambassador talks
Social
- Meeting needs of wider community (i.e. libraries, healthcare)
Environmental
- Prevent harmful and potentially irreversible impacts on environment, i.e. minimising waste and energy usage, protecting and enhancing environment
Economic
- Efficient use of resource, including labour
- Meeting financial needs to support self and business
171
Sustainability
Different acts related to sustainability in construction?
- Agricultural land act
- Building regulations - Part L
- Clean air act 1993
- Climate change act 2008
- Environmental protection act 1990
172
Sustainability
How can you as a QS contribute to sustainable development in the construction industry?
- RICS podcast - evolving role of QS, including embodied carbon calculations
- Life cycle costing - consider sustainable alternatives and their cost implications in the long term (i.e. lower operational cost comparison)
173
Sustainability
What is your understanding of the term carbon neutral / net zero carbon?
- Equal balance between carbon emitted and carbon absorbed from atmosphere
- Important measure for businesses and projects to consider global warming and environment
174
Sustainability
What sustainable initiatives are you aware of that are being implemented by the RICS?
- SKA ratings, encouraging green codes of practice for commercial properties
- 'Value the Planet' campaign, committed to forming climate change expert panel to implement UN's sustainable development goals
- Responsible Business Report with solutions for companies to operate in greener capacity (including higher recycling rates, reducing energy, transport and water use)
- Podcast episodes
175
Sustainability
What are the most common environmental issues experienced on construction sites?
- Water pollution risks
- Air and noise pollution (releasing dangerous gases and chemicals, dust)
- High energy consumption
- Carbon emissions
- Risks of land contamination
- Damage to wild habitats
- High wastage production
- Contributing to landfill waste
176
Sustainability
What Building Regulations apply to sustainability?
- Approved document part L - conservation of fuel and power
- Energy Performance of Buildings Regulations (requires EPCs produced, quantifies energy efficiency, DECs for commercial buildings over 500sqm)
177
Sustainability
Name some of the technology available to help meet Part L of the building regs?
- Wind turbines
- PV cells
- Ground / air source heat pumps
- Rainwater harvesting
- SUDS
- Green roofs
- Increased insulation
- Solar shading
- Natural ventilation
- Solar shading
- Automated building systems (lighting sensors)
178
Sustainability
Key pieces of legislation affecting sustainability in construction
- Agricultural land act (Enables land to be acquired for particular purpose (i.e. use as woodlands, control pests and weeds, support agricultural activities))
- Building act (Primary UK legislation enabling Building Regulations to be enforced)
- Clean air act 1993 (Provides local authorities in England with measures to control air pollution)
- Climate change act 2008 (Legally binding framework to tackle climate change. Imposed targets to cut greenhouse emissions compared with 1990 levels - 34% by 2020 and 80% by 2050)
179
Sustainability
What happened at COP27?
- Breakthrough agreement providing loss and damage funding for vulnerable countries hit hard by floods, droughts and other climate disasters
- Clear intention to keep 1.5 degrees within reach, requires global greenhouse gas emissions to peak before 2025 at latest, reducing by 43% by 2030
- Focus on accountability with commitments made by sectors, businesses and institutions
- More financial support for developing countries towards low emissions and climate resilient development
- Pivot towards implementation of actions
180
Sustainability
Can you tell me a little about BREEAM?
- International scheme providing independent 3rd party certification of sustainability performance of individual buildings and infrastructure projects
- Assessment and certification takes place at several stages, design and construction to operation and refurbishment
181
Sustainability
What are the BREEAM headline assessment categories?
- Management
- Health and wellbeing
- Energy
- Transport
- Water
- Materials
- Waste
- Land use and ecology
- Pollution
- Innovation
182
Sustainability
BREEAM rating thresholds?
- Outstanding 85%+
- Excellent 70%+
- Very Good 55%+
- Good 45%+
- Pass 30%+
- Unclassified <30%
183
Sustainability
What can a client do to achieve easy BREEAM points?
- Early design stages - bike shelters, local labour, locally sourced materials, planting, life cycle cost plan, waste management plan
- Land use and ecology - habitat protection and creation, improvement of long-term biodiversity
- Pollution - innovation within construction
184
Sustainability
What are some of the key challenges and potential solutions for reaching the 2050 target?
Challenges
- Retrofitting costs vs rebuilding
- UK has high reliance on gas and oil, struggles with renewable
Solutions
- Increasing renewable energy
185
Sustainability
What measures does your company make in relation to sustainability?
- Recycling bins
- LED lighting, on timers / sensors
- Cycle to work incentives
- Sustainability working group sharing information and CPDs
186
Sustainability
What are the most common environmental issues experienced on construction sites?
- Water pollution risks
- Air and noise pollution (releasing dangerous gases and chemicals, dust)
- High energy consumption
- Carbon emissions
- Risks of land contamination
- Damage to wild habitats
- High wastage production
- Contributing to landfill waste
187
Sustainability
Can you name some sustainability measuring systems?
- KPIs
- BREEAM (Building Research Establishment Environment Assessment Method)
- LEED (Leadership in Energy and Environmental Design)
- EPC (Energy Performance Certificates)
- SKA
188
Sustainability
What is the SKA rating?
- Founded by Skansen (interior construction company)
- RICS environmental assessment method for non-domestic fit outs (i.e. office refurbs)
- Comprises 100+ 'good practice' measures covering energy, CO2 emissions, waste, water, materials, pollution
- Applicable to offices and retail
- Bronze, silver, gold and % score
- Assesses design/planning, delivery/construction and occupancy stage assessment
