Mandatories so Far Flashcards
You will be aware that the RICS have 5 rules of conduct, would you like to pick one and explain some of the example behaviours that are expected to support it?
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
- An example of one of the behaviours is: Members and firms must not look to mislead others with their actions or omissions or be complicit in the actions and omissions of others.
- I have demonstrated my understanding of rule one on the Royal Gwent Project where I identified and dealt with an own interest conflict.
What is your understanding of the Professional indemnity cover requirements of the RICS?
- The RICS has set minimum standards for PII requirements, for example:
- Companies that turnover up to 100k must have a minimum of 250k cover.
- Companies that turnover up to 200k must have a minimum of 500k cover.
- Companies that turnover over 200k must have a minimum of 1 million cover.
- Policy must be underwritten on an each and every claim basis.
- The policy must include run off cover.
- The Policy must include insurance for past and present, employees and directors.
What is run off cover and why is it needed; how long should it be in place?
- Run off cover is put in place to cover a firm when they cease trading.
- The RICS state that run off cover is to be in place for a minimum of 6 years but recommend that it be in place for 15 years.
Essentially it depends on the nature of contracts you have been working on:
- Under hand = 6 years.
- As a deed = 12 years.
- RICS recommend 15 years.
Is there anything you can resort to when deciding on whether to accept a gift?
- Gifts decision tree.
When were the ethical standards updated?
2 February 2022
When you obtain PI certificates from sub-contractors, what sort of terms do you expect to see in them?
Whether the liability cap matches the requirement.
Whether there are any exclusions. For example, fire safety.
How the policy is underwritten.
If you wanted to set up your surveying firm what would you need in place?
1, Appoint a contact officer.
2, Responsible principle to ensure that the firm follows the rules of conduct.
3, Complaints handling procedure with independent redress mechanism approved by the RICS.
4, Adequate PII policy approved by RICS.
5, Contact officer must be in place.
6, Must have locum in place.
7, Processes for dealing with client money.
8, Clear CPD plan.
Can you give me an example of an RICS bye Law?
- Bye Law 5.1 – The Rules of Conduct apply to all members and firms.
What type of cover do you need for works done outside of the existing policy?
- Fully retroactive.
What are the considerations handling cash payments in relation to client money?
- 10k euro £8.8k cash limit- guide to money laundering regulations in line with the RICS Ethical standard of acting with integrity, it is best practice to ask for bacs or direct debit so then the onus is on the bank to determine where the money has come from.
What is the process for setting up a client account?
1, Set up an account that is in their name.
2, Generate a cash flow statement.
3, Clients must always have access to the funds.
4, Clients’ money must be kept separate and clearly identifiable.
5, Accounting systems and data must be secure.
6, You must include ‘client’ in the account name.
7, Interest on the account must be agreed with the client.
8, You must maintain a client Ledger or running balance of any transactions.
9, Agree the terms and advise clients on the bank details.
10, The account must never be overdrawn.
Client Money Protection Scheme?
- Money protection scheme operated by RICS.
- Contains a provision for any member of the public to be reimbursed for their direct loss of funds when using a RICS Regulated firm.
- Provided through RICS insurance policy
What is the role of the RICS?
- Regulate and promote the profession.
- Maintain the highest educational and professional standards.
- Protect clients and consumers through a strict code of ethics and professional standards.
- Provide impartial, advice, analysis and guidance.
What is your understanding of integrity?
- The quality of being honest and having strong moral principles.
- Always making sure I’m honest, open, and transparent in my dealings. Always looking to avoid any conflicts of interest.
Why do you think rules of conduct are important?
- RICS members are self-regulating and so they have an obligation to protect the public and themselves. The rules provide a framework.
What is the RICS motto?
- Est modus in rebus” (which translates into English as: “There is measure in all things”
Who is the current RICS president?
- Tine Pallet
Would you ever accept a gift from a contractor?
- Generally, I do not accept them and I tried to avoid it. However, I know that they are a part of business and that there are mitigating circumstances that would allow me to accept a gift.
- Rule 1.2 Rules of Conduct - Members or firms will not allow themselves to be influenced by others.
- Consult the ethical decision-making tree.
Explain the mitigating circumstances for accepting a gift
- Value- is it of minimal value?
- Timeliness- Is there a live tender involving the offering part?
- Appropriateness – Is everyone else accepting it? What will an independent person think of me accepting this gift? Will it affect my ability to act impartially?
What are the 3 types of conflict of interest?
Own interest:
* Friend or family working for contractor/client.
- Owning shares in a tendering contractor.
Client/business/Party:
* Client A wants to buy Client B’s land and you represent both.
- You are appointed as QS on a scheme and the PM unit in your business is bidding for the PM services.
Confidential information:
* Sharing tendering contractor submissions (rates etc).
- Client A wants to buy Client B’s land, and you represent both and are asked to share Client A’s minimum expectations.
- You are appointed as QS on a scheme and the PM unit in your business is bidding for the PM services
What are the CPD requirements of a chartered surveyor?
- 20hrs per year as a minimum 10hrs need to be formal.
Why do Chartered Surveyors need to do CPD?
To ensure they are maintaining their skills and knowledge.
Construction is a changing environment and therefore, it is important to keep up to date with changes to processes and regulations and legislation.
To fill any gaps in knowledge.
Tell me about a CPD event that you enjoyed recently.
- I recently completed a formal NEC Project Management course to enhance my understanding of NEC.
- The course was challenging, but I truly enjoyed it.
- It lasted for four days, during which I learned about:
- The role of an NEC Project Manager
- Different types of contracts and their various options
- Early warnings
- Compensation events
Do you know what an information barrier is and when you would put one in place?
- An Information Barrier in the context of the Royal Institution of Chartered Surveyors (RICS) refers to a set of procedures and controls designed to prevent the exchange of sensitive or confidential information between different parts of an organization. This is particularly relevant in situations where conflicts of interest may arise, such as when a firm represents multiple clients with potentially opposing interests.
What is run-off cover?
- Insurance that you need to have in place if you cease trading that will cover you or your firm over the period of time.
How long should run-off cover be in place?
- Depends on the type of contracts the professional has been involved with:
- 6 years under hand.
- 12 years when executed as a deed.
- RICS suggest 15 years.
Who is the RICS presidential team?
Tina Paillet – President
Justin Sullivan – President-Elect
Nicholas Maclean – Senior Vice President
Justin Young - CEO.
Nigel Clarke - Chair of the SRB
Why do you want to be part of the RICS?
- Talk about university.
- The gold standard in surveying.
- Industry recognised.
- Assist with career development.
The RICS has Rules of Conduct for its members and firms. Can you tell me two of the rules that are set for members and firms?
Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Personal Example – An example of this is identifying actual and potential conflicts of interest. I demonstrated this on the Royal Gwent project when I identified a close relative While reviewing the particulars of a live tender, I discovered a relative was listed as a project team member acting in the capacity of employer. I promptly notified my employer and suggested I withdraw from the tender and allow another quantity surveyor within the business to take over.
Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Personal Example – An example of this is complying with CPD requirements set by RICS. I have demonstrated this by complying with the CPD requirements of the APC 24 process which is a minimum of 48 hours every 12 months, 50% of which must be formal.
Rule 3 - Members and firms must provide good-quality and diligent service.
- Personal Example – I have demonstrated this by understanding my client’s needs and objectives while working on the BT Stadium House PCS where I analysed the development brief and clients’ objectives to develop a scope of services with consultants.
Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
- Personal Example – I have demonstrated this by respecting the rights of others and being courteous to my clients, colleagues and anyone else I come into contact with. When I organise social and networking events, I always try to do this in a way that ensures everyone’s needs are catered for.
Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
- Personal Example – I have demonstrated this by familiarising myself with Lancer Scott’s complaint handling procedure. I have never received a complaint, but if I did, I would ensure it is dealt with promptly, openly and professionally
Can you tell me any of the professional obligations members and firms have to the RICS?
The following professional obligations to RICS are mandatory for RICS members.
- Members must comply with the CPD requirements set by RICS.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
The following obligations are mandatory for RICS-regulated firms.
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
What is a locum agreement?
- A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work.
- Cover for an extended absence from a business, including a period of illness, incapacity or death. A locum is also used for sole practitioners who need someone independent to manage complaints handling.
You mention that you are familiar with the levels of PII required. Can you expand on this and tell me the levels required?
- Turnover up to 100k = minimum of £250k cover.
- Turnover up to 200k = minimum of £500k cover.
- Turnover over 200k = minimum of £1 million cover.
What is a conflict of interest?
- Anything that impedes a firm or individual’s ability to act impartially.
- A situation in which the concerns or aims of two different parties are incompatible.
- A situation in which a person is in a position to derive personal benefit from actions. Or decisions made in their official capacity.
- A conflict of interest occurs when an entity or individual becomes unreliable because of a clash between personal (or self-serving) interests and professional duties or responsibilities.
Can you name 3 types of conflict of interest?
- Party conflict: where a member is acting for two clients that have intertwined interests, i.e same consultancy acting for both contractor and developer.
- Own interest conflict: the interests of the client or firm your present conflict with your own, i.e friend working for the main contractor on the scheme you are PQS.
- Confidential information conflict: a conflict where you must provide information to a client but supply that information that goes against the interest of another client you work for. I.e advising both the seller and buyer of the property.
Do you know how the RICS is governed?
- The regulatory functions of RICS are delegated from RICS’ Governing Council to the independently led Standards and Regulation Board (SRB). The role of the SRB is to build and maintain trust and confidence in the profession for the public advantage.
You declined an invite to the rugby as you felt it might appear to influence your judgement or integrity. Do you still think this was the right decision? If the client was comfortable with you accepting this, would you have changed your mind?
- Yes, I think it was the right choice. No, I wouldn’t have felt comfortable with it as it may have looked to question my professional judgment or impartiality.
You mention you have completed your CPD requirements for your APC studies. What are the requirements you had to meet? Does this change if you were to pass your APC?
- 48 hours per year.
- Yes, this changes to 20 per year once chartered and 10 must be formal.
You mentioned on Vista Tower that you noticed a payment duplication and instructed the accounts department to refund this instead of taking advantage of the client error. Can you elaborate a bit more on what your advice was in this instance and why you did this? Why not just keep it in case it is needed later down the line?
- I identified the overpayment when working through my CVR, and my nett valuation differentiated from that shown on my ledger. The honest and integral thing to do was inform the client of this error and refund the overpayment.
Can you accept cash payments?
Typically, I would try to avoid accepting cash payments as the bank should establish where the payment has come from. However, I am aware there are instances that would allow me to do so.
Under anti-money laundering legislation, you should not accept cash payments of more than 10,000 euros (circa £8.5K). If a cash payment is to be made, a firm may need to make enquiries to identify the source of funds before accepting.
Who is the new RICS CEO?
- Justin Young
What is a conflict of interest?
- A conflict of interest occurs when an event occurs that could conflict with a persons or firms ability to act impartially.
What have you learned from the RICS professionalism module?
- The module reinforced my responsibility as a quantity surveyor.
- I learned about the Rules of Conduct and the ethical principles required to be an RICS professional.
- Honesty, integrity, competence, service, respect, and responsibility.
What are the various types of conflict of interest?
- Own Interest Conflict.
- Party Interest Conflict.
- Confidential Information Conflict.
What is the RICS black book?
- The RICS black book is a suite of technical practice documents which covers all process throughout the project life cycle.
What is Surveying Safely published by the RICS?
- It sets out principles for built environment professionals and includes health and safety responsibilities.
What is Rule 4 of the RICS Rules of Conduct?
- Members and firms must treat others with respect and encourage diversity and inclusion.
Why do you want to be an RICS professional/chartered surveyor?
Being an RICS chartered surveyor is seen as the gold standard of excellence in surveying; it is industry-recognised and assists with career development.
When you drafted service agreements, what were the key items incorporated in the agreements?
- The fee breakdown.
- Scope of services.
- Insurance certificate.
- Persons for dealing with disputes.
- Key project team members.
- Hourly rates.
- Collateral Warranty document.
- ITT documents.
- Start and finish dates.
What other systems and processes could you have utilized to manage client care?
- On BT I analysed the development brief and client objectives to ensure I fully understood the cope.
- Establishing a communication strategy.
- Setting key performance indicators.
- Setting a stakeholder management plan.
- Regular progress meetings.
- Agreeing report formats beforehand.
- Agreeing meeting progress meeting dates.
Can you tell me what Professional Indemnity Insurance is?
- Insurance put in place to protect business, employees and clients against negligent services and/or advice offered.
On your BT Stadium House project- why do you think it was important to obtain a scope of services from the consultants?
- To establish what was included within the fee.
- To ensure that the works have been interpreted correctly and everything had been allowed for.
- The scope of services is then included into the professional appointment and a point to refer to if there are nay problems further down the line.
- The “Scope of Services” clause outlines the specific duties, responsibilities, and deliverables that a party is obligated to perform under a contract.
- It defines the parameters of the work to be completed, ensuring both parties have a clear understanding of what is expected and reducing the potential for disputes.
Say one of the consultants had a fee of £5k and requested payment in cash. What would you have done?
- Typically, this is something I would try to avoid as it is better to be paid by BACS so the bank can establish where the money has come from. However, I am aware there a provision under the Money Laundering Regulations which would allow me to accept, this incudes payments under a threshold of 10,000 euros or 8,315.35 Pound sterling.
How do you know you are doing a good job for your client?
- Good responses to the Client Feedback Forms.
- Repeat work and opportunities.
- Through reviewing the financial position of the project
What do you do in the circumstances you receive a complaint?
I ensure that I get it in writing, and acknowledge it through showing empathy and my regret towards the matter reaching this point, whilst stating that the business will deal with it. I would then escalate it to my complaints handling officer and allow them to deal with it.
When would you decline work from a client?
- Do not have the capacity.
- Conflict of interest exists.
- Do not have the required technical expertise.
- Client not prepared to pay the appropriate fee.
Can you just talk me through what the requirements of an RICS complains handling procedure is?
Stage 1
- Once the complaint is received it should be responded to straight away but not later than 7 days.
- A senior member of staff or a complaint-handling office is appointed.
- A response to the complaint is given within 28 days.
- If complainant is not satisfied, then the second stage commences.
Stage 2
Complaint is referred to third party via independent redress system.
Or a government ombudsman.
The Redress party must be approved by the RICS.
Why is feedback important?
- I understand feedback is essential to evaluating employer satisfaction and serves as a valuable endorsement on future bids.
- I acknowledge constructive feedback allows LS to address their delivery, which minimises the risk of future complaints or disputes.
What do you see as good client care?
- I understand that client care is about providing a high-quality, diligent service that meets the client’s requirements regarding time, cost, quality, and risk.
On your BT stadium House project, you discussed that you aliased the development brief and established a scope of services with the consultants, on that how did you identify the needs of your client based on that process.
- On the BT Stadium House project, the development brief was outlined in the PCSA agreement.
- It contained two parts, the first was a strategic brief which essentially set out the project which was to undertake a full cladding replacement of the building in order to reduce the fire risk associated with the existing cladding.
The second section set out the project objectives, these included:
- The key objective is to deliver the work in line with the Employers requirements and the agreed programme and budget.
The Client is targeting the following:
- A reduction in the fire risk associated with the cladding (initial driver).
- Minimising capital outlay (primary driver).
- Minimising maintenance outlay (primary driver).
- Minimising overall project programme.
Can you talk me through the RICS complaints handling procedure?
Stage 1- Internal
- Once the complaint is received it should be responded to straight away but no later than 7 days.
- A senior member of staff or a complaint-handling officer is appointed.
- A response to the complaint is given within 28 days.
- If the complainant is not satisfied, then the second stage commences.
Stage 2- External
- Complaint is referred to a third party via an independent redress system.
- Or a government ombudsman.
- Note- The redress party must be approved by the RICS
Can you name a type of ADR within the RICS?
Some of the more common forms of ADR include:
* adjudication
* mediation
* arbitration and
* expert determination.
Can you explain the difference between ‘mediation’ and ‘expert determination, and what the main features of both techniques are?
- Both mediation and expert determination are alternative dispute resolution (ADR) techniques commonly used in the construction industry to settle conflicts without resorting to litigation.
- Mediation is a collaborative, facilitated process where an impartial third party (the mediator) helps the disputing parties reach a mutually agreeable solution. The mediator does not impose a decision but guides the parties toward a voluntary agreement.
Main Features of Mediation:
- Voluntary Participation: All parties must agree to participate in the process and can leave at any time.
- Confidentiality: Proceedings and any disclosures made during mediation are confidential, promoting open communication.
- Neutral Facilitator: The mediator is a neutral party, ensuring a fair, balanced environment.
- Non-binding Outcome: Any agreement reached is usually non-binding unless the parties formalize it as a contract. This allows flexibility and encourages creative solutions.
- Focus on Future Relations: Mediation often helps preserve professional relationships by focusing on collaboration rather than fault-finding.
Expert Determination
- Expert determination involves an independent expert making a binding decision on a specific technical issue. This expert is usually chosen for their expertise relevant to the matter in dispute, such as construction or engineering.
Main Features of Expert Determination:
- Technical Expertise: The expert is selected based on knowledge of the specific area in question, leading to a well-informed decision.
- Binding Decision: The expert’s decision is typically final and binding on the parties unless they agree otherwise.
- Efficiency: This process is usually quicker and less formal than court proceedings, offering a swift resolution to technical disputes.
- Focused Scope: Expert determination is particularly effective for disputes involving technical details rather than broader commercial or legal issues.
- Limited Appeal: There is generally little scope for appeal, making the process a definitive resolution for the specific issue.
Key Differences
- Role of Third Party: In mediation, the mediator facilitates without making a decision. In expert determination, the expert makes a binding decision.
- Binding Nature: Mediation outcomes are typically non-binding unless formalized, while expert determination decisions are binding.
- Suitability: Mediation is ideal for disputes where relationships are prioritized, while expert determination suits highly technical issues needing specialized knowledge.
Can you give me some examples of how you would avoid a conflict on your projects in the first instance?
- I avoid conflict on my projects by regularly reporting progress, maintaining accurate records, and implementing effective management practices.
You mentioned different types of dispute resolution procedures, including mediation and adjudication. For mediation and adjudication, can you give me some of the advantages?
Advantages of Mediation:
- Voluntary: Both parties control the outcome.
- Confidential: Discussions are private.
- Cost-Effective: Typically cheaper than court.
- Quick: Resolves disputes faster.
- Flexible: Allows creative solutions.
- Preserves Relationships: Less adversarial.
Advantages of Adjudication:
- Fast: Decisions usually within 28–42 days.
- Binding: Decisions must be followed, but can be challenged later.
- Expert-Based: Adjudicators are industry experts.
- Affordable: Lower cost than litigation.
- Less Formal: More straightforward than court processes.
- Maintains Cash Flow: Especially important in construction.
What is the difference between adjudication and arbitration?
- Arbitration is binding and it can be a much longer and more formal process. Adjudication involves the quick resolution of disputes between parties where an adjudicator hears the outline of both sides of the argument and makes a fast decision within 28 days. Often the dispute is decided on paper only.
What is negotiation and mediation?
- Less formal options for resolving contractual disagreements between parties.
What is adjudication and arbitration?
- More formal, legally binding dispute resolution procedures.
What is litigation?
- Litigation is the process of legal action in court to resolve a dispute.
