Mandatory Competencies Flashcards
1
Q
Can you name the three core financial statements that all company’s must provide?
A
Profit and loss statement;
Cashflow statement;
Balance sheet.
2
Q
What is profit and loss account?
A
Often referred to as an income statement, it summarises the revenues, costs and expenses incurred by a company during a specified period.
3
Q
What is a cashflow statement?
A
A cashflow statement is a summary of the actual and anticipated costs during an accounting period. Broken down into operating, investment and financing activities.
4
Q
What is the difference between a balance sheet and a profit and loss account?
A
- Balance sheet is a financial snapshot / position at a given point in time;
- Profit and loss shows a company’s profit and loss over a given time period (for example the financial year).
5
Q
What are management accounts?
A
- Internal reporting accounts, showing the full details of the business’ expenditure & income funds.
- A lender will request these if they are assessing your financial stature for the purpose of loaning.
6
Q
What are Business accounts?
A
- External accounts required by law to be provided to HMRC annually. These provide an overview of a company’s finances.
7
Q
What is the difference between Business Accounts and Management Accounts?
A
- Management Accounts are for internal use; Business Accounts are published for public viewing.
8
Q
Does Turner & Townsend publish annual reports?
A
- Yes - every tax year, which is published and can be viewed by the wider public.
9
Q
Could you tell me what accounting documents T&T would have to publish legally?
A
Could you tell me what accounting documents T&T would have to publish legally? - Statutory accounts must include: o Balance sheet; o Profit and loss account; o Notes about the accounts; o Director’s report; o Auditor’s report. - Note: copies must be sent to: shareholders, Companies House and HMRC.
10
Q
What are financial statements?
A
- Forecasts of income and expenditure that can be used as an analytical tool to identify potential shortfalls and surpluses of working capital.
11
Q
How do you vet a contractor to show if they are financially stable?
A
- Dunn & Bradstreet credit check, rates a company out of 100 in terms of their financial standing, looking at turnover and solvency. Experian provide a similar service;
- A company with a score between 80 and 100 would have low risk of late/default on payments;
- Achilles reports provide further insight, specific to construction company’s performance and supply chain;
- Constructionline, in effect, are a pre-qualification organisation set up to collect, verify and monitor standard company data.
12
Q
Difference between Capital and Revenue in terms of profit and loss account?
A
- Capital expenditure: Assets such as owning office building – cannot be offset against tax liability
- Capital allowances: plant, machinery, thermal insulation, works to comply with Part B – can be offset against tax liability.
- Revenue expenditure: salaries, insurances, service costs.
13
Q
What is a business plan?
A
A business plan describes your business by setting out:
o Nature of the business;
o Background information on the firm;
o Financial forecasts;
o Operations;
o Objectives;
o Growth plan or strategies to achieve the goals of the business;
o Time-frame for the achievement of the goals;
o Market analysis.
- And acts as a “roadmap” in achieving the company objectives in the short to medium term.
- This formal document may be required by lenders / investors to facilitate loans or other kind of financing.
14
Q
What is a business strategy?
A
- A business strategy sets out the long-term guidelines for achieving business goals or objectives. This can also be used to secure loans from banks.
- For example – T&T’s Vision 2025.
15
Q
What is the difference between business plan and strategy?
A
- A strategy is concerned with the business holistically. For example – expanding into new markets or industry sectors.
- Business plan deals with the specific implementation of aspects of the business plan.
16
Q
What do you need to consider when setting up your own practice?
A
- Need to consider and make sure that you comply with the Rules of Conduct;
- Register the business and apply to HMRC;
- Set up company and client bank accounts;
- Set up a complaint’s handling procedure;
- Obtain appropriate PI and run off cover;
- Directors and officer liability;
- Insurance against buildings.
17
Q
What is T&T’s current business strategy?
A
Vision 2025, which for Turner & Townsend means leading the market in major programmes, portfolio management, commercial management, the transition to net-zero, and digital solutions. This is achieved by:
o Accelerating activities in high-growth markets;
o Shifting focus and engagement to major programmes, portfolios and mega-projects;
o Building an advisory offer that transforms performance and sets a new standard for the industry;
o Creating significant partnerships with the world’s highest growth businesses;
o Re-focusing on high growth super sectors in Infrastructure, Natural Resources, and Real Estate; and
o Generating income from digital solutions.
Cluster or team:
o 10% growth year-on-year;
o One new £1 million client per annum, for the next five years;
o Increase team by 50% in the next 2 years.
18
Q
How do you contribute to the T&T Business Plan?
A
By effectively delivering high standard service which should align with the Business goals of T&T. I am involved in a real-estate major project at Nine Elms and that is an area that T&T are looking to grow within.
19
Q
What is Client Care?
A
- It is providing a standard of service which achieves the Clients Requirements and in line with the terms of engagement;
- This can include:
o Being polite, punctual, professional, and competent;
o Establishing clear lines of communication;
o Looking out for their best interests (Client feedback meetings / forms);
o Key performance indicators;
o Quality assurance procedures;
o Complaint handling procedures.
20
Q
You are working for R&F – an international Client. Is there anything different that you must do in terms of client care in meeting their expectations?
A
- The main example would be respecting their cultural background – commercial information is treated as strictly confidential and must only be shared with our commercial counterparts within the Client’s organisation. This is respecting the information barrier that exists;
- I may summarise cost estimates or other reports in a way which helps the Client better understand the information.
21
Q
How often do you do Client care with your client?
A
• Twice a year or quarterly.
22
Q
What is a client brief?
A
- A document that captures the client’s requirements, sets out the objectives and requirements of a project;
- Provided in sufficient detail for the integrated project team to execute.
23
Q
What information would you expect to see in a client’s brief?
A
- Services required;
- Insurances required;
- Terms of appointment;
- Fee, and payment mechanisms;
- Duration of appointment;
- Identify client procedures and policies that need to be followed.
24
Q
When should you decline work for a client?
A
- Do not have the capacity;
- Conflict of interest exists;
- Do not have the required technical expertise;
- Client not prepared to pay the appropriate fee.
25
What makes up a bid?
- Executive summary including a scope or solution;
- The client’s needs and drivers;
- Project issues;
- Benefits for the clients and their experience;
- Conditions of engagement and terms and conditions;
- Methodology for delivering the work, information about the organisation, CV’s of project team and examples of case study projects previously delivered;
- Confirmation of proposed fees.
26
How do you calculate fees on a project?
- Percentage based;
- Time charged;
- Lump sum.
27
What do you if the client requests you to lower your fee?
- Reduce the scope of service;
- Agree to not attend certain meetings;
- Change the level of staff but make sure the client is aware
28
A client wants to pay in advance for your services, how would you deal with this?
- Set up a separate account which is properly named and clearly identifiable;
- Clients must always have access to the funds;
- Provide the client with a statement;
- Inform the client of when and how much the monies will be drawn down, providing a statement each time;
- Once services are complete send a complete statement detailing all the transactions;
- Make sure everything done is transparent and auditable and money has been checked for laundering.
29
Why is client care important to Turner & Townsend?
- Builds good reputation which leads to repeat work and recommendation to other clients;
- Reduces the likelihood of conflict protecting the company’s PI insurance.
30
Can you give me examples of good client care?
- Regularly request client feedback;
| - Repeat business
31
How do you manage your clients’ expectations?
- Always make sure you and your client understand the brief and what is required of you;
- Tailor your service to expectations and KPI’s of the client;
- Regular informative communication.
32
What is the legislation surrounding personal data?
- General Data Protection Regulation (GDPR) 2018 – Data Protection Act 2018;
- It provides a framework about what and how personal data should be managed. It allows individuals the right to know what information is held about them, all of which are set out as Principles of GDPR (7 points):
1. Lawfulness, fairness and transparency;
2. Purpose limitation;
3. Data minimisation;
4. Accuracy;
5. Storage limitation;
6. Integrity and confidentiality (security);
7. Accountability.
33
What are the penalties if there is a breach of GDPR?
- Penalties can be up to a maximum fine of the greater of 4% of a company’s annual global turnover, or £17.5 million.
34
How do T&T protect client’s data?
- Online filing system, some of which may be password locked;
- sensitivity classifications for documents and emails;
- ensure adequate training on data protection is undertaken by all employees.
35
What guidance note covers this?
- RICS Data Management Guidance Note
36
How long do you need to keep data for?
- GDPR – if there is no reason to retain the data, it must be deleted after one year;
- General Data Storage:
o Minimum 6 years max 12 years relates to how contract was signed.
o RICS recommends 15 years as this is the maximum amount of time a claim can be made against a professional.
37
What is the BCIS?
- Building Cost Information Service- this provides cost and price information on a range of different projects and materials in the construction industry.
38
Where does the Data on the BCIS come from?
- Data comes from real life projects, where members of the construction industry provide real project cost information that once reviewed by BCIS staff is uploaded into its vast database.
39
What cost data is submitted to the BCIS?
- Elemental costs from the BOQ including a percentage for each element, details of the contract, procurement and tendering route, description of the works, GIFA, base date (i.e., year works were carried out and location).
40
What else is available on the BCIS?
- Cost Analysis, Indices, Average prices, Duration calculator, Life Cycle Costing, Component life, Wages, Dayworks, Schedule of rates, Contract percentages, Tender price studies;
- Identify and document your legal basis for processing personal data under the GDPR;
- Review how you seek, obtain and record consent.
41
What is teamworking?
- It is where all members of a team are working together towards the common goal.
42
What makes a good team?
- It is one that has a compatible blend of strengths, experience, and personalities. Creating a culture that promotes collaboration and shared values. Making best use of the groups skillset to maximise the output.
43
What documents can you use to aid team working?
- RACI Matrix table. It stands for Responsible, Accountable, Consulted and Informed.
44
What test can you carry to assess someone’s suitability for a team?
- Myres Briggs test assesses and analysis a person’s personality.
45
Why do teams fail?
- Poor selection of team members do not meet the skills required, inadequate resource, conflicting personalities and poor leadership.
46
Difference between a team and a committee?
- Team: group of people aiming for a common goal.
| - Committee: a body of people appointed for a function.
47
Can you tell me about the Equality Act?
- Primary legislation protecting individuals from discrimination in the workplace and in wider society. There are nine protected characteristics:
o age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.
- Example would be having a faith / prayer room within site cabin facilities.
48
Can you tell me about Unconscious bias?
- Unconscious bias is retained within all of us, which is developed by life experiences, beliefs, and views. The key is to be aware of this and not allow it to impact your judgement and assessments.
49
What is IEQM (Inclusive Employer Quality Mark)?
- Inclusive Employer Quality Mark Initiative: introduced in 2015 by the RICS;
- Four principles including: leadership, recruitment, culture, and development.
- Encourages businesses to champion and consider inclusivity in day-to-day operations.
50
Can you give me an example of how you would manage a scenario where you found a colleague / peer being spoken to rudely in the workplace?
- Depending on the nature of the remarks, I would potentially step in and request the aggressor to stop (racist, sexist, homophobic etc.);
- I would look to establish the facts surrounding the incident by speaking to both parties independent of one another;
- I would attempt to rationalise whether it is proportionate or disproportionate to the incident;
- Should I feel it was disproportionate, I would look to discuss with the director or senior members of staff and ensure it is dealt with appropriately.
51
What does the Health and Safety At Work 1974 cover?
- It forms the basis of British health and safety law, which is enforced by the Health and Safety Executive (HSE);
- Sets out the duties employers have to their employees, and the duties employees have to themselves and the general public;
- It covers such considerations as:
o adequate training of staff to ensure health and safety procedures are understood and adhered to;
o adequate welfare provisions for staff at work;
o a safe working environment that is properly maintained and where operations within it are conducted safely;
o suitable provision of relevant information, instruction, and supervision.
52
When does the health and safety at work act apply?
- The health and safety applies at all times, this is because it requires consideration from the employers, employees and the wider public.
53
What are the key roles considered by the HSE?
- Client;
- Principal Designer;
- Principal Contractor.
54
What is the Clients Role?
- Responsible for the Principal Contractor & Principal Designer carry out their duties;
- The Client cannot pass on their legal duties to a 3rd party. But may appoint 3rd party to manage these during ensuring compliance;
- Domestic Projects – the clients H&S duties are passed to the Contractor.
55
What is the Principle Contractors role?
- To ensure adequate H&S policies, checks, reviews and processes are in place;
- Ensure workers have the right skills, knowledge, training, level of information;
- Provide site inductions for all workers;
- Secure site & welfare facilities;
- All construction works must have a Construction Phase Plan before works start.
56
What is the Principle Designers role?
- Ensure the H&S is considered during the planning phase: identify, Eliminate and Minimise;
- Prepares the health and safety file.
57
Can you tell me about your Company’s Health, Safety and Wellbeing Policy Statement?
- It is considered a core value of the business;
- The key objectives are:
o Provide and maintain a safe and healthy working environment;
o Develop a strong, positive corporate safety and wellbeing culture at every level of the business;
o Establish and maintain an effective and consistent approach to the management of health, safety and wellbeing for our people, in their working environment and when travelling.
58
What guidance you refer to when surveying?
- RICS Surveying Safely
59
What is surveying safely?
RICS Guidance notes for Surveyors - it covers assessing and understanding risks and how to manage them from a surveyor’s perspective.
- RISK identification and Management;
- Occupational Health, such as asbestos, noise, hazardous materials;
- Visiting and attending sites protocols;
- Procurement and manage of contractors and construction works.
60
What does CSCS stand for?
- Construction Skills Certificate Scheme
61
What CSCS card do you hold, what colour is and is having one mandatory?
- Professionally qualified person and colour is white.
| - It is not mandatory and is at the preference of the client / contractor.
62
You are visiting site for the first time, what can you do to ensure your safety?
- Make sure you undertake a site induction, wear the correct PPE and aware of the activities being undertaken onsite.
- Request to be escorted round site by the site manager if still concerned.
63
What is PPE and can you list any?
```
- Personal protective equipment – typically expected is 5 point PPE
o hard hat;
o glasses;
o gloves
o steel cap boots
o high vis vest / jackets,
- Operatives may require additional items depending on their line of work, for example:
o dust mask;
o harnesses;
o ventilators;
o welding masks.
```
64
Can you please give me an example of what would be required of me if I was to notice someone onsite without the correct PPE?
- I would make the person aware, stop any activities and request that they seek the correct PPE. I would make the site manager, the contractor, and the client aware of the incident.
65
What does CDM stand for?
- Construction design and management;
- intended to ensure that health and safety issues are properly considered during a project’s development so the risk towards those that have to build, use and maintenance is reduced.
66
What three documents are included in the CDM regulations?
- Health and safety file
- Pre-construction information
- Construction phase plan
67
What would find in a health and safety file?
- Health and safety information relevant to the works: description of the work being carried out, hazards and how they are managed, services that informing of hazards such as asbestos and GPR (ground penetration radar for existing services), structural information such safe working loads, hazardous materials such as lead paint and pesticides.
68
What would you usually find in the pre-construction information?
- Example – Nine Elms N6 Fit Out. As the shell and core main contractor (Mace) were on site, their input heavily featured within the pre-construction information.
o General information such as project information, key dates, project team contact details;
o Planning and management of the project – security information, site hoarding, logistics information (access / egress routes, pedestrian walkways); emergency procedures;
o Co-ordination requirements with other contractor’s on site;
o Welfare information.
69
What would you usually find in a construction phase plan?
- Example – Nine Elms N6 Fit Out. Ellmer’s construction phase plan took full cognisance of the pre-construction information and Mace’s set-up on site. It sets out the site rules, site induction, welfare facilities and fire and emergency procedures.
70
Could you explain having two Principal Designers on site at the same time?
- The S&C contractor will retain the Principal Designer role for the S&C working within the overall Phase 2 area;
- The fit out contractor will then be the Principal Designer for the fit out area (once handed over), as the works progress;
- Upon completion of the S&C works, the fit out contractor will become the Principal Designer for the same areas as the Principal Contractor
o Stage 1 – the fit out contractor will become Principal Contractor for the area handed over to them to enable them to undertake their works. Note: the S&C contractor will maintain the Principal Contractor role for all remaining areas not yet handed over
o Stage 2 – upon S&C practical completion, the fit-out contractor will becomes Principal Contractor for the overall Phase 2 area
71
What is the contractor expected to produce in relation to health and safety assessment?
- Construction phase plan.
72
What is an F10?
- Used to notify HSE of the project.
73
When is a project notifiable?
- 30 days;
- 20 operatives on site at any one time;
- 500 working person days.
74
Define sustainable development?
- Meets the needs of the present without compromising the ability of future generations to meet their own needs.
75
What are the three pillars of sustainability?
Social;
economic;
environmental
76
What section of the building regulations relate to sustainability?
Part L – conservation of energy.
77
What is BREEAM – explain?
- Building Research Establishment Environmental Assessment Method;
o It is a method for assessing, rating and certifying sustainability of buildings;
o An assessment is taken out by an individual licensed assessor using scientifically based sustainability metrics;
- Ratings include:
o Pass (>30%);
o Good (>45%);
o Very Good (>55%);
o Excellent (>70%);
o Outstanding (>85%);
- Clients can request the building rating they want to achieve;
- UK Government Construction strategy requires an environmental assessment to be undertaken with the aim of achieving an ‘Excellent’ rating;
- Local Authorities may stipulate within planning conditions imposed on developments;
o The Contractor is to construct the works in accordance with the BREEAM rating achieved during the Design Stage, to obtain the BREEAM certification from the assessor;
o Makes the contractor build a building to a required standard but doesn’t encourage a project to exceed or maximise the potential requirements.
78
When was the last time they were updated?
BREEAM In-Use International version 6 launched in May 2020.
79
What are the BREEAM categories?
- Management;
- Health and Wellbeing;
- Energy;
- Transport;
- Water;
- Materials and Ecology;
- Waste;
- Land Use and Ecology;
- Pollution.
80
What kind of technologies would you typically expect to see to hit the BREEAM targets required?
- Rainwater / grey-water harvesting;
- Combined heat and power (CHP);
- Ground source heat pumps;
- Locally sourced materials;
- Increased ecology;
- Developing a waste management plan.
81
If a client requested, you to provide a cost uplift for moving from ‘Excellent’ to ‘Outstanding’, what would it be?
- It would be dependent on several factors, such as:
o Base point of the project;
o starting the BREEAM process / implementation;
o Base specification of the building;
Standard student residential – uplift may be in the order of 25-30%;
New high rise tower – uplift may be 5% on the basis that the base specification allows for technologies that would align with BREEAM credits.
