P&D Pathway 2023 Flashcards
Starting a new practice - RICS Compliance
1- inform RICS
2- appoint Responsible Principal
3- Register with RICS for regulation
4- PII
5- Client Money Handling procedure, Inc protection scheme
6- Register for RICS Valuer Registration Scheme (VRS) if red book vals
7- Approval CHP
8- Complaints log
9- Complaints Handling Officer
10- logo kit
11- Succession Plan (if sole practitioner)
12- CPD logged & staff training plan
13- completion of RICS Annual Return (end of each yr)
Starting a new practice (Statutory)
1) disclose business name
2) Equality Act 2010 compliance
3) Financial Service Cimpliance
4) Appoint money laundering Reporting Officer
5) H&S compliance
6) Asbestos register
7) Fire safety compliance
8) register for data protection (ICO)
9) Estate Agency Compliance
10) Inform HMRC for VAT and tax registration
11) employment law compliance
12) insurance compliance for employer and public liability
Closing a practice (RICS)
1) inform RICS
2) inform clients ASAP & handover to new firm
3) return client monies
4) inform insurers and procure PII run off cover (min 6yrs)
5) retain copy of client files and records (min 6yrs)
Bribery RICS Guidance
Professional Statement 2019
Countering bribery, corruption, money laundering and terrorist financing 2019
My firm’s CHP
1) complaint raised
2) 5 calendar days - acknowledge
3) 10 calendar days - investigate, respond with resolution and anticipated timescales
4) 30 calendar days - full complaint assessment response. What was done. If not done - detail delay cause and anticipated resolution date
5) 56 calendar days (8w) - further info on delay cause, next steps and anticipated resolution
6) update min 30 days until matter resolved
7) complaint resolved = closure response confirming action undertaken
NHQB Complaint Procedure
1- contact online
2- enter details and supporting info
3- if eligible, approach developer for their info
4- both parties review
5- draft decisions for both parties. 10 days for further info prior to publication
6- additional comments reviewed. Published to both parties
Accepting bribe - Maghull
Company policy - £100 max/ calendar yr. OR approval from manager and list on gift register
Bribery Act 2010
RICS GUIDANCE -
1) Proportionality
2) timing - bidd
3) reciprocation
4) Value
RICS Procedures for handling N complaint
Procedure - quick, clear, transparent and impartially implemented
Nominated person - compliance handling officer
Complaints in writing
Acknowledged 7 days / Investigated within 28 days
Example of Planning overview (lv2) - S
Scotforth - site = outline for 95 dwellings and associated access
1) researched and analysed to determine relevant policies, site history and local context to set mine site potential to secure planning consent and desirability
2) as outline PP, noted key info which included s106 contributions
*** key info
** flood zone 1 & 2 (mitigate, inc levels)
** Noise - railway (double glaze and trickle vents
** invasive species surveys and mitigation required
** noise acoustic assessment required
Planning overview (lv3)
Hoddlesden Mill, Darwin
- outline 100 units
- key issues: levels (220AOD East corner, 198AOD Northern corner - sig dif, need retaining walls) and ecology
- outstanding outline conditions not actioned (de-culverting a field drain, flood modelling and floor resilience statement)
ADVICE: don’t bid due to levels and costs to remediate which wouldn’t meet firm’s margin.
What did you submit with temp access application
Full planning permission (8 weeks determination after validation)
1) design and access statement
2) covering letter
3) location plan
4) layout
Progress with Temp access?
S278 officer had no issues. However, principal designer for the council had a different view and refused before we could engage with them.
Lv2 planning overview example - C
Congleton
- selected, researched and analysed CE local plans, housing allocations and housing land supply to determine suitability to consider strength for PP and thus land desirability
- referred to the CE Design Guide (May 2017)
— Volume 1 = characteristics making CE unique & explains to developers & designers how to design appropriately
— Volume 2 = guidance on specific aspects of residential design. To ensure positive for place, fit for purpose, attractive
— implications of design guide: expensive due to specific (road widths, materials, usually beyond what housebuilders expect to do)
What is included in a planning appraisal ?
- site characteristics
- history
- relevant planning policy
Use classes
B- industrial
C- residential (C3 = my firm)
E- Commercial, business and services
F- local community and learning
Sui Generis - ‘of its own kind’
* petrol station, night clubs, casino, theatre, mixed use class, public house
Class for PDR
T&C Planning (General Permitted Developments etc) (England) (Amended) Order 2021
Class MA change Use from Class E to C3
- 3 continuous months = vacant (prior to app)
- 2 continuous yrs = class E
- <1,500 cumulative floor space to be converted
DA - Clayton Le Woods
Greenfield DA
- carried out MR / comparable - sales price / sqft
- hierarchy of evidence (adjustment)
- internal estimating workbook
What’s included in a greenfield valuation
Greenfield is assumed to have no abnormal costs. Site fully prepped and ready to start foundations
- assumes site = clear. No demolition / remediation
- no site specific additional requirements
- no s278 works
- gravity fed sewers
- no sub station
- no retaining walls
- no POS
- planning gain excluded
RIBA stages
0- strategic definition
1- preparation and brief
2- concept design
3- spatial coordination
4- technical design
5- construction
6- handover and close out
7- Use
Talk to me about a sensitivity analysis I carried out (lv2)
Spectra, 400 dwellings. Booming market, record high house prices
- increased sales pace from 3 to 4.5 / month. Despite uncertainty risk
Why were there record high values (spectra - DA)
1) record low mortgage rates (below 2%)
2) SDLT holiday (July 2020-Sep2021) off first £500,000
3) consumer trends - outdoor space, WFH
4) location - cheaper in north than down south
Why was the news predicting a fall in house prices
1) soaring inflation
2) material costs and shortage of labour
3) war with Russia and Ukraine - energy prices and Cost of Living crisis. Less disposable income
Talk me through a detailed appraisal (lv3)
Maghull, 408 units
* determine profitability.
* land value agreed and fixed
* swapped 53 OM plots to PRS units to reduce risk following uncertainty in market
* reduced profit from 24% to 20.23%
* also confirmed build costs estimated, by comparing costs from live schemes. Could also use BCIS (building cost information service) however, no access.
Why does PRS reduce risk ?
1) forward sell plots / guaranteed sale
2) Improves ROCE
ROCE = operating profit / capital employed (total assets-total liabilities) x100
Talk me through a sensitivity analysis i advised on (lv3)
Abergele
1) risk and opportunity schedule
2) prepared sensitivities following this & advised the market was predicted a downturn
3a) build costs increase 3%
3b) OM pace reduction 4 -> 3
4) advised land value would need to be reduced following sensitivity analysis. Could risk not winning bid for the site. However, this sensitivity would reduce risk for the business during an uncertain and struggling market. Therefore, use sensitivity analysis’ residual land value for bid / offer
What is a risk and opportunity schedule ?
To understand and manage proactively, optimising success by minimising threats and maximising opportunities and outcomes AND REDUCE UNCERTAINTY
What did you have in your Risk and Opportunity schedule - Abergele
Abergele
RISKS
- offsite highway works as access down narrow lane. Unsafe so needs widening
- hill, so retaining walls required
Opportunities
- allocated in strategic plan. But expired 2022
- National shortage of affordable in Wales. 10% requirement, so this would provide a huge uplift as we would provide over and above this
- Since submission - My firm have vern successful in getting an option on land with min land value
Timber frame housing benefits
1) typically requires 20% less labour days. So 300,000 gov target is more achievable. Quicker
2) off- site manufacturing - improved H&S due to controlled environment
3) carbon savings
4) renewable material
5) green properties - insulating properties, helping keep us naturally warm and achieve energy efficiency targets
Development / project brief - talk me through board approval (st Helen’s)
Cowley Hill (1,100 units on brownfield land)
- wrote executive note
- detailed the status of DA (land acquisition approval stage), site particulars, project brief, technical overview detailing the abnormal costs, financial position summarising DA and cash flow and construction method statement & programme, Market research to substantiate sales revenue
Abnormal costs on at Helen’s board approval (1,100 unit scheme) - proj brief
- bats in building needing to be demolished (European Protected Species). Would need licence and alt roosting space to be installed prior to demo
- glass factory - burgy waste (by-product of glass manufacturing = silt and fine sand)
- 25 known mine shafts
- railway line tracks
Who are homes England ?
Executive non-departmental public body, sponsored by the Department for Levelling Up, Housing and Communities
Building regulations
Asbestos regulation
Control of Asbestos Regulation 2012
Legislation re H&S
Health and Safety at Work Act 1974
CSCS
Construction Skills Certification Scheme
When is an Environmental Impact Assessment required?
The T&C Planning (Environmental Impact Assessment) Regulation 2017
Schedule 2
>150 dwellings
OR
>5Ha
Demolition = >1Ha [Not required for Thatto as 0.05Ha in size
5 Stages to EIA
1- Screening (EIA req?)
2- Scoping (extent of issues to consider, can ask LPA opinion)
3- Prepare statement
4- Make PA and consultation
5- Decision making
How is my firm meeting Building Regulations Part L (2010 Inc 2023 amendments)
Conservation of Fuel and Power
- increased level of insulation (fabric 1st approach then PC and wastewater recovery - 21 regs)
- fabric first = max performance of components and materials that make up our homes before mechanics and electrical building systems
- fabric first benefits = reduced maintenance costs, tried and tested, decreases human error
How is my firm meeting building regulation Part O
Overheating and mitigation (2010, 2021 edn)
- limited unwanted solar gains in summer
- provide adequate means to remove heat from indoor environment
1) size and design of windows
2) minimise amount of glazing on all non-north facing facades
3) ensure satisfactory openable window area to mitigate against overheating
What does an environmental statement include?
1) Proposed development (design, size, site)
2) likely sig effects on environment
3) mitigation methods
4) substantiated reasoning for options
5) non-technical summary
6) additional info - Inc expected estimates of residues and emissions (air, water, soil, subsoil, pollution, noise, vibration, light heat)
What is Surveying safely
Guidance Note - Surveying Safely - Health and Safety Principles for property professionals (2019)
- sets out basic, good practice principles for the management of H&S for firms and members
Surveying safely key advice for firms
1) safe working environment
2) safe work equipment
3) safe systems of work
4) competent staff
What is a safe person
RICS Guidance Note: ‘Surveying Safely - Health and Safety principles for Property Professionals’ (Feb 2019)
Responsibility for own, colleagues and others’ H&S while at work
6 Pack of H&S
1- management of H&S at work
2- Display screen equipment
3- Manual Handling Operations
4- PPE at work
5- Provision and Use of Work equipment
6- Workplace Health, Safety and Welfare
What is RIDDOR and principles
Reporting of Injuries, Diseases, and Dangerous Occurrences Regulation 2015
- 7+ days incapacitation (away from work) trigger for reporting injuries
- 15 days to report to HSE
- 3+ days injuries to be recorded by employers
- kept in accident book. Kept for min 3yrs after accident / injury
The role of an Auditor
- to ensure financial transparency, accountability, integrity within organisations
- to check findings of the financial audit
- to verify company assets and liabilities
- to monitor, examine and evaluate management policies, practices and activities
What is a profit and loss
A summary of the business’s income and expenditure transactions, prepared usually on an annual basis
What is a cash flow
The amount of cash or cash-equivalent which the company receives or gives out by the way of payment(s) to creditors
Balance sheet (statement of financial position)
A statement of the business’s financial position showing its assets and liabilities
At a given date
Usually the end of a financial year
Business performance measures
1) gross profit margin = GP / sales
2) operating profit margin = operating profit / sales
3) current ratio = current assets / current liabilities
4) Gearing Ratio = (Debt / Equity) x100. Low ratio = low risk as use equity to fund. Used to assess financial risk
5) ROCE = operating profit / capital employed (assets - liabilities) x 100
Future homes standard ?
Ensures that all new build homes, built from 2025 will produce 75-80% less carbon emissions than homes delivered under current regulation
Building Regs relevant
- Part L (conservation of fuel and power)
- part F (ventilation)
Net zero ready homes vs net zero homes
Net Zero Ready Homes = same standard as Net Zero but without the renewable energy systems being installed (e.g. solar panels)
Net Zero Homes = homes that produce as much clean energy as they consume
How is my company meeting Future Homes Standard?
Following 15 June 2023
- solar panels
- waste water heat recovery
- added insulation
2025
- battery
- air source heat pump
2023
- hydrogen boiler
- low carbon materials
9 protected characteristics
UK Equality Act 2010
1) gender reassignment
2) sex
3) sexual orientation
4) age
5) disability
6) race
7) religion or belief
8) marriage or partnership
9) pregnancy and maternity
Direct discrimination
Treated worse than another person because:
- you have
- someone thinks you have
- connected to a person who has
A protected characteristic
Indirect discrimination
A policy applies in the same way for everybody but disadvantages a group of people who share a protected characteristic
- e.g. prohibiting women from wearing headgear (religious belief)
- e.g. policy of only meat provided at company dinner (vegan / vegetarian for ethical or religious reasons)
Harassment
Unwarranted behaviour you find offensive, which is caused by having it being connected to someone with a protected characteristic
Victimisation
Treated someone badly because they have done a protected act or because an employer, service provider or other org believes you have or are going to do a protected act.
- making a claim or complaint of discrimination
- helping someone make a claim by giving evidence or info
- making allegation that you or someone else has breached the Act
- doing anything else in connection with the Act
CEO of RICS
Justin Young
President of RICS
Ann Grey FRICS
Role of RICS
Promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
FRICS Evidence
4 fellowship characteristics
1) more than 5 years MRICS
2) leadership role
3) professional/technical achievement
4) raising profile of the RICS
Benefits of being a member
1- status
2- recognition
3- market advantage
4- knowledge
5- network
5 ROC
Effective Feb 2022
1- be honest, act with integrity and comply with professional obligations including obligations to the RICS
2- maintain professional competency and ensure services provided by competent individuals with necessary expertise
3- provide good-quality and diligent service
4- treat others with respect and encourage diversity and inclusion
5- act in public interest, take responsibility, act to prevent harm, maintain public confidence in the profession
Ethics decision tree
Provides a framework should members face a potentially unethical situation
1- sufficient facts
2- legal?
3- ROC ?
4- consult appropriate people for informed decision
5- clear reasoning
6- content for actions to be made public?
If yes- ACT, REFLECT & RECORD
How is the RICS governed?
- under terms of Royal Charter
- gov council currently has over 20 members and run the RICS providing management and strategic direction
- 17 specialist professional groups: land, property and construction
- CEO: Justin Young
- President: Ann Grey FRICS
Bichard review recommendations
Reported in June 2022, 36 recommendations in 7 key areas
1) renewed and Inc focus on public interest
2) Maintaining self regulation through greater independence for regulatory functions
3) increased focus on diversity and inclusion
4) empowering and enable members through greater support inc member engagement with younger members
5) independent reviews of RICS governance and effectiveness at delivering its Charter for public advantage every 5yrs
6) a new simplified, clear, accountable governance structure
7) showing greater leadership on issues mattering most to society e.g. sustainability and climate change
What was the Levitt review
Very public exposure of the lack of clarity, structure and purpose of the RICS governance arrangements
Called for a full independent review of the purpose, governance and strategy of RICS
LORD MICHAEL BICHARD reviewed
What has the RICS done following the BICHARD review?
- new governance council elections took place April 2023 to better reflect the geographical locations and disciplines of members
- recruited Diversity, Equality and Invlusion and Sustainable Panel Chairs to lead these priority issues
- announced in April 2023 a package of support to promote and drive member engagement, experience and value initiatives including: free CPD events, working with MATRICS, improved customer experience
My firm’s purpose
A responsible developer, working in partnership to deliver sustainable homes, communities and social value, leaving a lasting legacy of places people love
Company Aim
High return, capital light partnership model. To position the company to deliver sustained growth and provides market resilience
Strategy of firm
35% OM, 65% partner sales (PRS / HA)
- merger of partnership and housebuilding divisions
- combine strength of both operating divisions
- keep it simple, one way of working e.g. standard housetypes, no deviations
- focus on production
- regional businesses to deliver between 500-900 new homes each year
My firm’s plans (ST/MT/LT)
ST = one approach, 35% OM / 65% Partnership. Training of staff for TF construction
MT = improving sustainability. All low rise to be built with TF. TF factories = 5,000 output in 2024, 2,500 2023.
LT = continue to improve sustainability, working for net zero production
Affordability pressures becoming increasingly visible
> 1m households on LA wait list
1-in-10 across Uk living in poor quality housing
310k children sharing beds
110,000 in temp accommodation
Homeless highest in 25yrs
Why important to have up to date business plan
- one clear direction tailored to current market
- confidence of investors and clients
- focus on key priorities
- budgeting
- setting staffing levels
SWOT
Analytical technique to support strategic decision
Strengths / weaknesses / opportunities / threats
PESTLE
To analyse the key feathers of the external environment
Political
Economic
Social
Technological
Legal
Ethical / environmental
Benefits of a bill of quantities
New Rules of Measurement 2 (2021)
1) saves time and cost - of several contractors measuring same design to calc costs
2) consistent basis for obtaining competitive bids
3) provides clear and extensive statements of works to be executed
4) strong basis for budgetary control
Composition of Bill of Quantities
1- form of tender
2- summary
3- prelims
4- measured work
5- non-measured work
6- provisional sums
7- contractor designed works
8- risks
9- credits (for materials arising from works)
10- day work (provisions)
11- annex
General Principles for Measurement and Calculations - professional statement
1) date measurement undertaken
2) state measuring methodology
3) reference to scale, any plans included
4) state conversion factor from metric/imperial and any rounding
5) measurement and calcs clearly documented
6) RICS Members to state why IPMS not used
7) Adopting IPMS = mandatory for reporting resi and office space
Use and limitations of plans and drawings
1) beware of resizing
2) CAD - accurate and efficiently draw using model space
3) CAD - coordinates need to be properly inputted for setting out on site
Conversion Acre to hectare
1 acre = 0.4046 Ha
Purpose of carrying out a takeoff
Maghull
- to include in bill of quantities for the groundworker to estimate costs
What is a bill of quantities
Prepared by QS / estimator
- allow for a direct comparison between contractors pricing on a project
- provides basis for post contract management including valuing variations, final account prep, interim vals and audit
Disadvantages of bill of quantities
- lengthy process to product firm bulls
- high production costs
Standard brick size
215 x 102.5 x 65 m
How did you calculate the roads, driveways and split screens
Followed NRM 2 (2021)
- used dimension paper and scale ruler
- ensured drawing printed to scale
- entered measurements on material quantity check excel workbook (internal to company)
Split screen:
length of wall * height = area
Area * 60 = no. Bricks
No. Bricks * 10% wastage = total
Roads and driveways
Road length (5.5)+ footpath calcs (2x2) = area
Area * depth * rate = estimate cost
Depth could be to calculate wearing course @ 20mm (for example)
Trundle wheel pros and cons
+ves = inexpensive, easy to use, measurement ok, good for land measurement
-ves = wheel skip, rough terrain (inaccuracies), slow in comparison to laser distance finder
Part M breakdown
M4(1) - visitable dwelling (level access to home & GF toilet)
M4(2) - accessible and adaptable dwelling (reinforced stud wall to support grab rail)
M4(3) - wheelchair user dwelling (sufficient internal space for wheelchair, disabled car parking space)
3 forms of sensitivity analysis
1 - simple (key variables such as GDV, build costs, finance rate, yields)
2- scenario (changes include content, timings such as phasing the scheme or modifying design)
3- Monte Carlo Simulation (using probability theory, using software such as crystal ball)
When is a red book used
All Written valuations unless one of 5 exceptions
5 exceptions to red book
1- negotiation or litigation
2- statutory function
3- internal purposes
4- agency or broker work in anticipation of receiving instruction
5- giving evidence as expert witness
Full title of red book
RICS - Valuation - Global Standards 2021
Hope value
RICS Professional Standard 2020 ‘Valuation of Development Property’ and IVS.
Value arising from any expectation that future circumstances affecting the property may change: e.g.
1- future prospect of securing PP
2- marriage value realisation (merger of 2+ interests in land - physical or tenurial)
SDLT (resi)
SDLT (non-resi)
Margin of error
5% standard residential property
10% one off commercial propert
15% if exceptional features of property
Agreed with client
Valuation of Ransom Strip
= a piece of land controlling the access to another piece of land
Stokes v Cambridge (1961) - the value of 1/3 the uplift in development value to owner of random strip
Assumed purchaser cost figures (%)
Agent fees = 1% + VAT
Solicitor fees = 0.5% + VAT
Factors that affect yield
- tenant covenant strength
- rent factors (building layout, size, height, loading, access, car parking and access to public transport
- key lease terms (unexpired terms, provision for rent increase, responsibility for repairs, maintenance and insurance, restrictive covenants, planning restrictions re use class)
When would you use a profit method of Val
Valuation of trade related property where there is a monopoly position.
Used where the value of the property depends upon the profitability of its business and its trading potential
E.g. pubs, petrol station
Contractors method / depreciate replacement costs (DRC)
Last resort
Only used where direct market evidence is limited or unavailable for specialised properties.
For accounts purposes and rating valuations only
E.g. lighthouse, school
Calculation of DRC / contractors method
Value of land + cost to rebuild (+fees) - depreciation - obsolescence
Investment method, when used?
Used when there is an income stream to value
Term and reversion (under rented)
Layer/ hardcore (over rented)
Explain hardcore / layer method
Use: over rented investments
Income flow divided horizontally
Bottom slice = market rent
Top slice = rent passing less market rent until next least event
Higher yield applied to top slice to reflect additional risk
Explain term and reversion
Under rented (vertical separation of income)
USE: for reversionary investment (market rent more than passing rent)
- term capitalised until next review/ lease expiry
- reversion to market rent valued in perpetuity at a reversionary yield (anticipated yield)
Comparative method 6 steps
1) search and select
2) confirm/ verify
3) assemble schedule
4) adjust using hierarchy
5) analyse to form opinion of value
6) report value and prepare file note
Hierarchy of evidence
Category A - Direct
* near identical with full and accurate info
Category B - General market data that can provide guidance
* indices, historic evidence
Category C - other sources
* transactional evidence from other real estate types and locations
* interest rates, stock market movements
What’s included as a total development cost?
1) site prep
2) planning costs
3) building costs
4) professional fees (10-15% on construction costs)
5) contingency (5-10% construction costs)
6) marketing costs and fees (1-2% GDV)
7) finance
8) profit
Limitations to the residual method of valuation
1) importance of accurate info and inputs
2) does not consider timings of cash flow
3) very sensitive to minor adjustments
4) implicit assumptions hidden and not explicit (unlike DCF)
5) always cross-check with comparable site Val if possible
Difference between depreciation and obsolescence
Depreciation = predictable and gradual decrease in value of an asset
Obsolescence = sudden and often unpredictable decrease in value due to changes in technology, consumer preferences or other factors
How to calculate years purchase (YP)
100/yield
Net acre
Area of land that can be used to build housing (excludes POS, major roads)
Explain investment method of valuation (lv2)
New Islington
1) inspect with supervisor
2) obtain comparable and check values
3) was advised investor as opposed to owner occupied
4) obtain comparable for investor transactions (rental value)
5) applied market based yield (the annual return in investment expressed as a % of capital value)
6) calculated gross rent multiplier (property price / gross annual rental income)
7) enter subject property listing price to determine if under or over rented
Define market based yield
The annual return in investment expressed as a % of capital value
Market value
The estimated amount for which an asset or liability should exchange in the valuation date between a willing buyer and willing seller in an arms length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion
Commencing a valuation 3 steps
1- competence
2- independence
3- TOE
Market rent
The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and lessee in appropriate lease terms in an arms length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion
Terms of engagement requirements
VPS4
Minimum = confirmed in writing prior to commencing red book Val
1) identification and status of valuer
2) identification of the client
3) identification of any other intended user
4) asset to value
5) currency
6) purpose
7) basis of value
8) date
9) extent of investigation
10) nature and source of info relied upon
11) assumptions and special assumptions
12) format of report
13) restrictions for use, distribution and publication
14) confirmation of red book compliance
15) fee basis
16) CHP
17) statement compliance
18) limitation on liability agreed
Purpose of a CEMP
1) provide effective, site-specific procedures and mitigation measures to monitor and control environmental impacts throughout the construction phase of a project
2) ensures construction activities so far as is practical, do not adversely impact amenity, traffic or the environment in the surrounding atra
When is a CEMP required
Major construction: (depending on LA)
1) residential development with 10+ dwellings OR site of 0.5Ha or more
2) commercial development >1,000sqm floor space
3) Any development >1Ha
How would you go about fining the drivers / companies
Decided fining drivers wasn’t an option due to:
- no contractual relationship
- how would we get it paid?
- not implementable. Can’t enforce
Fining companies = viable
- ‘Right of set-off’ legal right by a debtor to reduce the amount owed to a creditor by off-setting against it any amounts owed by the creditor to the debtor.
1) establish principle, must follow route or fine
2) ability to set off - prove event (traffic Marshall)
3) hold back - contra charge and withhold funds.
Hierarchy of evidence categories
A - Direct
B - General Market Data
C - Other sources
3 legal tests for s106 agreements
1- necessity
2- direct relationship
3- scale
Regulation for CIL
Community Infrastructure levy (amendment)(England) 2019
Stop notice - legislation
Section 183 of the T&C Planning Act
Stop notice ?
Prohibits continuation of any activity that is set out in an enforcement notice until the enforcement notice has been complied with
Can only operate with enforcement notice
Penalty - Stop notice breach
Fine up to £20,000 in magistrates court
OR
Unlimited in higher court
Appeals process
Within 6months (non-determination can be submitted up to 6months from date if the application)
1) written statement
2) informal hearing
3) planning inquiry (for larger, more complex cases where cross examination may be required)
4) decision called in for determination by the Secretary of State
Biodiversity net gain
10% gain
Calc = pre-development units + post development units including off site BNG (+10%)
Can’t be tweaked by s96A or s73
Hierarchy: avoid, mitigate, compensate, contributions
Covenant on land.
Nov = further guidance
Jan = implementation
April 2024 = BNG for small sites
Nutrient Neutrality
Wastewater from homes and its discharge into rivers contributes to build-up in nutrients downstream in protected wildlife habitats - results in growth of algae that harms habitat
<5% contribution from housing. Key contributing factor = farming
134,400 homes delayed, 74 LA affected
Solution: wetlands
Awaiting gov next steps
Brief overview of NRM
NRM1 - guidance on quantification of building works for purpose of preparing cost estimates and cost plans
NRM2 - prep of bill of quantities and quantified schedules of work.
NRM3 - gives guidance on the quantification and description of maintenance works for the purpose of preparing initial order and cost estimates. Aid procurement and cost control of maintenance works
4 risk categories identified in NRM
1) employer change risk
2) employer other risk
3) design development risk
4) construction risk
Define sustainable development
Brundtland report - ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs’
7 key principles of GDPR
1) lawfulness, fairness and transparency
2) purpose limitation
3) data minimisation
4) accuracy
5) storage limitation
6) integrity and confidentiality (security)
7) accountability
8 individual rights under GDPR
1) to be informed
2) to access
3) to rectification
4) to erasure
5) to restrict processing
6) to data portability
7) to object
8) to automated decision making and profiling
Data protection act 2018
Controls how your personal information is used by organisations, businesses or the government
How long to keep data?
- 6yrs if contract is signed underhand
- 12yrs if contract signed as a deed
- RICS recommends up to 15yrs, this is the limitation period for most legal claims
6 Basic Principles of ROC
1) honesty
2) integrity
3) Competence
4) Service
5) Respect
6) Responsibility
Deontological (Ethics)
Right and wrong based on rules
E.g. an action could be wrong even if it has good consequences
Consequentialism
Right and wrong based on consequences
E.g. it is ok to lie or break a promise for the sake of good consequences
RICS Founded
1868
3 levels of disciplinary action
1) action by head of regulation
2) Disciplinary a panel
3) appeal panel
Penalties by a disciplinary panel
1) issue regulatory compliance order (written doc stating terms member must make or desist from in a specified time period and agreement to pay a fine) e.g. not following CPD rules
2) reprimand
3) fine
4) impose conditions upon future continuation with the RICS
5) expulsion from membership or remove a firm
6) publication of results in RICS Modus mag, on RICS website and in local newspaper
Terms of engagement
IPS 1 - agreed in writing prior to commencing red book global valuation
1) identification and status of the valuer
2) identification of the client
3) identification of any other intended users
4) the asset to be valued
5) currency
6) purpose of the valuation
7) basis of value
8) valuation date
9) extent of investigation
10) nature and source of info being relied upon
11) assumptions and special assumptions to be made
12) format of the report
13) restrictions for use, distribution and publication
14) confirmation of red book global/IVS compliance
15) fee basis
16) CHP to be made available
17) statement valuation may be subject to compliance by the RICS
18) limitation on liability agreed
Assumption v Special Assumption
Assumption: reasonable for the valuer to accept something is true without need for specific investigation - e.g. room locked and can’t get in, you know from a previous visit it is the meter room. Ask to confirm it is the same. Can assume ok
Special assumption: assumption that something is true, even though it is not. E.g. PP being granted on the scheme
What to do if Restrictions on valuation
1- nature of restriction agreed in writing in TOE
2- possible valuation implications of restriction confirmed in writing before value is reported
3- valued to consider if the restriction is reasonable in regard to purpose of valuation
4- restriction referred to in report
5 purposes of valuation
1- financial reporting
2- stock exchange
3- takeovers and mergers
4- collective investment schemes
5- unregulated property unit trusts
Hope value
Value arising from any expectation that future circumstances affecting the property may change
1) future prospects of PP
2) realisation of marriage value
3 aims of the RICS Valuer Registration Scheme (VRS)
1- improve quality of valuation and ensure highest possible professional standards
2- to meet RICS requirement to self-regulate effectively
3- to protect and raise the status of the valuation profession as the leading expertise in valuation
6 principles of the bribery act
1) Proportionality
2) top level commitment
3) Risk assessment
4) Due Dilligence
5) communication
6) monitoring and review
4 offences of a bribe
1- bribing
2- receiving a bribe
3- bribing a public foreign official
4- failing to prevent bribery
How is my company tackling waste
£9m cost on waste management (Vistry)
Aim: reduce waste tonnes per plot by 20% by 2025
HOW:
* reduce supply chain waste - packaging
* better site practice
* project ongoing to determine key waste streams and build stages to target and understand the gap between site specific waste and plot specific waste
BREEAM
Voluntary environmental assessment tool to rate new and refurbished buildings
8 assessments areas: energy consumption, water use, transport links, waste management and Health and wellbeing
5 ratings: pass / good / very good / excellent / outstanding
IPMS residential
IPMS1 = External
IPMS2 = residential (internal)
IPMS3 = residential (occupier) - 3 sub areas
IPMS 3A - outer face of external wall and centre line of shared walls
IPMS 3B - area in exclusive occupation, Inc external walls and columns measured to the IDF and finish surface
IPMS 3C - area to exclusive occupation, exc walls and columns, measured to the IDF and finished surfaces
IPMS Office
IPMS 1 - planning or building cost purposes (GEA)
IPMS 2 - for agency and valuation purposes (GIA)
IPMS 3 - agency and valuation purposes (NIA)
IPMS definitions do not correctly correspond to former GEA, GIA, NIA
How does dimension paper work
Column 1- timesing column
Column 2 - dimension column
Column 3 - squaring column
Column 4 - Description column
Define a business plan
A formal statement of a set of business goals, the reasons they are there and the plan for reaching them.
Includes, exec summary, desc of bus opp, S&M strategy, management team and personnel, operations, financial forecast
Different company types
Public limited company (PLC) - shares offered to sale for general public and members liability limited to the amount paid on shared held by them
Private limited company - doesn’t publicly trade shares. Limited to 50 shareholders. Limited liability.
Private unlimited company - no limit on member’s liability
Partnership - 2+ people. Partners liable for debt.
Sole trader - personally liable for debts of bus, owns all profits
Importance of D&I
It’s a business imperative for attracting top talent into organisations.
Crucial that the built environment sector has a D&I workforce that represents the global communities, our profession and supports and serves.
UKGAAP
UK Generally Acceptable Accounting Principles for inclusion in financial statements.
What did you include in the board approval?
St Helens (Cowley Hill)
- status of development appraisal (land acq approval stage)
- financial position summarising DA and cash flow
- construction method statement
- programme
- market research
- affordable homes offers and TOA
Mediation
RICS Guidance Note in Mediation 2014
-facilitates discussions between 2 parties to explore whether a solution can be found
- confidential and informal
- ‘without prejudice’
- mediator has no decision making authority
3 processes to dispute resolution
1) negotiation
2) mediation or conciliation (3rd party intervention, not binding parties to a decision but assists to resolve)
3) adjudicative process (outcome determined by a 3rd party such as litigation and arbitration) e.g. construction payment disputes. strict timescale imposed by law, adjudicator must decide within 28 days.
Alternative dispute resolution advantages
1- speed
2- informality
3- greater opportunity for negotiation
4- costs - less on professional fees for litigation
5- quality of decision making - as outcome made by a surveyor rather than a judge
6- confidentiality
Requirements of UK GDPR
UK General Data Protection Regulation 2016 and Data Protection Act 2018
1) obligation to conduct data protection impact assessments for high risk holding of data
2) rights for individuals to access and erase their personal data
3) data controller - how and why personal data is processed & directly responsible for gdpr
4) data accountability - ensuring orgs can prove to ICO how they comply with regulations
5) data security breaches reported to ICO within 72 hours where there’s a loss of personal data and a risk of harm to individual
6) fines up to 4% global turnover of the company or £17.5m (greatest)
Freedom of information act 2000
Individuals have the right to access info held by public bodies.
Usually required to supply in 20 working days in format requested
Can charge for the provision of info
Principles of UK GDPR 2016
Article 5(1)
1) processed lawfully, fairly and transparently
2) collected for specified, explicit and legitimate purposes
3) adequate, relevant and limited to what is necessary for the purpose for which they are processed
4) accurate, kept up to date with reasonable steps, erased or rectified without delay
5) identification of data subject for time only required for its purpose for which the personal data are processed
6) appropriate security of the personal data
Individual rights under UK GDPR 2016
Right to be:
1) informed
2) access
3) rectification
4) erase
5) restrict processing
6) data portability
7) object
8) automated decision making and profiling
Storing data on the cloud pros and cons
Pros - disaster recovery, reduced physical storage, better resource management potential (gain visibility of changes and revisions)
Cons - cyber crime, dependant on internet connectivity, requires training for effective use/management
What issues was I experiencing with 4P
- accessing the portal with subcontractors (with accounts with other parties). I discussed with super user for our company, I then compiled a fact sheet (change enterprise)
- email transmittals, adjusted settings as per Viewpoint guidance
- training not completed. Until complete, I ensured info was in both platforms. Then 4P only
Retention policy
Accident records = 5 years post accident date
Fire strategy info = 15 years
Current and former insurance policies = permanent
Plot files = 16yrs from completion
Handover packs = 15 years
Customer care electronic files = 10 years
10 Policies - RICS Levelling Up and Sustainable Placemaking Report
1) the 12 levelling up white paper missions should be binding targets for 2030 as originally stated
2) align with UN’s Sustainable Development Goals
3) employment-led regeneration should be initial driver for levelling up with a UK settlement strategy (allocate employment land by housing provision, reduce transport env issues)
4) address UK’s national housing shortage
5) Secure LT strategic infrastructure investment = critical to create sustainable places for people to live and work
6) power of commercial real estate as enabler of regeneration
7) faster, simpler and more efficient planning system
8) local and regional collaboration
9) ADR to be encouraged - reduce time and costs
10) immediate steps to up-skill and expand construction workforce - shortage currently
Process I took after finding mineshaft
1) remediation contractor found 3 unknown mine shafts
2) inform coal authority (E3P as environmental consultant = ‘designer’ under CDM - geotechnical engineer)
3) appoint engineers to create capping details and appoint env consultant to carry out investigations to investigate no build zone for layout to change
4) apply for ‘Permit to Enter or Disturb Coal Authority Interests’
- costs £111 per 0.1Ha, up to max £2,775 for 2.5Ha+
- groundworker / remediation contractor to undertake work - grouting and capping
When is a coal authority permit required
1- cap the mine
2- fill the mine
3- drill boreholes through coal seam
4- build over or near to the entrance to the mine
Info required for coal authority permit
1) plan if site
2) proposed grout mixes for treatment works
3) full drawings and calculations if treating mine entries
4) any previous work such as coal mining risk assessments, desk studies or borehole logs
5) treatment grid, including the proposed development footprint (for treatment permits only)
Global Goals for sustainable development
Key issues in dealing with traffic management on site
- keeping pedestrians and vehicles apart
- minimising vehicle movements
- people on site
- turning vehicles
- visibility
- signs and instructions
Minimising vehicle movements
- provide car and van parking for the workforce and visitors away from work area
- control entry to work area (gateman)
- plan storage areas so that delivery vehicles do not have to cross site
Talk me through the EoT claim
To a HA provider
1) initially informed them of the delay and the cause
2) pulled together evidence and illustrated the consequence of the delay cause. Included a Downtime Met Office Report and programme showing how the critical path had been affected due to inclement windy weather. TF kits delayed
3) allowed me to negotiate LADs to be waived for the 2 week duration of the delay
Tips on successful EoT request
1) read contracts - familiarise terms of EoT requests e.g. timeframes to be met
2) send notices in time (EoT claim & Notice of Delay)
3) document everything
4) keep updated schedule
What can EoTs be granted for
1) adverse weather conditions (inclement weather - severe or harsh conditions)
2) client change orders
3) events beyond control
Won’t accept:
- contractor negligence (e.g. failing to co-ordinate subcontractors)
- unreasonable or excessive claim
Diagnostic question
- Asked to understand the thought process of the person answering.
- Asked for insight.
- To better understand what they want out of the negotiation (e.g. negotiables and non/negotiables)
E.g. what is your goal / objective for the site
How would you fine companies for not complying with CEMP
‘Right of set-off’. Set off money against account
1- establish principle, not allowed to go down road. Establish fine as a contrary to planning (letter)
2- ability to set off - price there has been an event (evidence). Burden of proof
3- then hold back money. Contra-charge & withhold funds. Need to inform them of violation, await response & amend payment
Cannot fine individual drivers as no contractual relationship. Not implementable
Inflation & interest rates
Bank of England
- inflation 6.7% (aim = 2%)
- interest 5.25% (21 September, next due 2 November)
What is a DCF
Discounted cash flow. Guidance note ‘discounted cash flow for commercial property investments’ 2010
1- estimate cash flow (income - expenditure)
2- estimate exit value at the end of the holding period
3- select discount rate (Parrys valuation and investment tables)
4- Discount cash flow at discount rate
5- value is the sum of the completed DCF to provide NPV
USE: phased development projects, over-rented properties and social housing
What is a feasibility study?
Used to analyse and assess the viability of a construction project
Goal: understand if the project is feasible by assessing the practical aspects of the project and identify potential Strengths and Weaknesses
BIM
Building information modelling
What is BIM
A highly collaborative process that allows architects, engineers, developers, contractors, manufacturers, and other construction professionals to plan, design, and construct a structure or building within one 3D model
Key benefits of BIM
1) visualisation
2) fabrication drawings
3) cost estimating (built in estimates)
4) construction sequencing (coordination and scheduling of materials)
5) conflict, interference and collision detection
6) forensic analysis (analysis for failures, leaks, evacuation plans)
7) facilities management
What is clash detection (BIM)
Identification, inspection and reporting of collisions between elements in a structures model. E.g. a pipe running through a steel beam
Main map scales used for HM Land Registry Plans or those used in your jurisdiction
Site plan - 1:500
Title plan (OS Plan) - 1:1,250
Location plan - 1:1,250 or 1:12,500
What is Geodesy
Geodesy - is an applied mathematics discipline used to understand various aspects of the Earth
GIS
GIS – Geographic Information System - system that creates, manages, analyzes, and maps all types of data. GIS connects data to a map, integrating location data
Tell me about application of a scale
1:500. Means the actual real life measurements are 500x greater than those on a map
What is a red line plan
Denotes site ownership
What is a title plan used for
- To support property description
- graphic representation and identifying the general extent of the land in a registered title
Title plan
Shows properties general location and boundaries, as well as areas affected by covenants and easements
Why’s it important to keep maps updated
To make sure you are working from the most relevant data and maps
Uses of aerial photography
- desktop study
- marketing
- transmission line plans
What needs to be included on a site plan for a planning application
- Title of project / site
- north point
- scale (1:500)
- site boundary (red line)
- drawing reference number
- position of fixed buildings
- source (OS)
Market based yield
Defined as
The annual return on investment expressed as a % of capital value
CEOs focus
Justin Young (was CEO of Knight Frank)
1) build stronger bonds with members
2) offer stability, strategy and renewed sense of purpose
IPMS All Building guidance
Published January 2023
IPMS 1 = external measurement
IPMS 2 = internal measurement
IPMS 3.1 = external exclusive use
IPMS 3.2 = internal exclusive use
IPMS 4.1 = including external walls
IPMS 4.2 = (selected area) excluding internal walls
Information required by the RICS for registration
1- type of business and staffing details
2- name of responsible principal
3- statutory regulated activities - such as for financial services
4- nature of clients
5- CHP details & records
6- PII
7- whether the firm holds clients’ money
RICS 3 main roles
1- maintain highest standards of education and training
2- protect consumers through strict regulation of professional standards
3- to be the leading source of information and independent advice on land, property, construction and associated environmental issues
3 forms of dispute resolution
1- Negotiation
2- Mediation or conciliation (3rd party intervention
3- adjudicative process
Examples of Due Diligence I undertake
- surveys of site
- environmental issues understood
- asbestos
- planning issues
- title issues
- legal issues
Outline planning permission
Principle of Development
- Access
- appearance
- landscape
- scale (size)
How are affordable homes agreed
Grant funded by Homes England under s106 agreement
E.g. Affordable rent, Shared Ownership and 1st Homes
