Property Management Flashcards
What does CDM stand for?
Construction (Design and Management) Regulations 2015
What is the purpose of the CDM Regulations?
Created to help control the risks related to construction, as well as to more effectively manage the people involved in a building project.
What are the 9 Principles of Prevention under the CDM Regulations?
- Avoid risks where possible
- Evaluate the risks which can’t be avoided
- Combat risks at the source
- Adapt the work to the individual
- Adapt to technical progress
- Substitute high-risk for low- or no-risk
- Develop a coherent overall prevention policy
- Give collective protective measures priority over individual protective measures
- Give appropriate instructions to workers
What are the 5 key elements of the CDM Regulations?
- Manage risks & apply the general principles of prevention
- Appoint the right people at the right time
- Provide information, instruction, training, and supervision
- Cooperate with dutyholders, and
- Consult with workers to develop effective risk management
When is a project notifiable to the HSE?
If work is scheduled to:
Last more than 30 working days,
and have more than 20 workers working
at the same time at any point;
or
It has more than 500 person days
The client must complete
an F10 form notify project to the HSE.
What are the CDM project requirements?
All projects must have:
- A Client’s Brief
- Pre-Construction Information
- Construction Phase Plan
- The right skills, knowledge, training, and
experience - Appropriate supervision, instruction and
information
Multi-contractor projects must have the above, in addition to:
- A Health & Safety File
- A Principal Designer and a Principal Contractor
Who are the key duty holders under the CDM Regulations?
- The Client
- The principle designer
- Designers
- The principle contractor
- Contractors
- Workers
What are the main duties of the Client under the CDM Regulations?
- Making suitable arrangements for managing a project: appointing other dutyholders; ensuring sufficient time and resources are allocated; ensuring that relevant information is prepared and provided to other dutyholders; the principal designer and principal contractor carry out their duties; welfare facilities are provided.
Domestic clients are in scope of CDM 2015, but their duties as a client are normally transferred to: the contractor.
What are the main duties of the principal designer under the CDM Regulations?
- Plan, manage, monitor and coordinate health and safety in the pre-construction phase of a project, including: identifying, eliminating or controlling foreseeable risks; ensuring designers carry out their duties. Prepare and provide relevant information to other dutyholders. Provide relevant information to the principal contractor to help them plan, manage, monitor and coordinate health and safety in the construction phase.
What are the main responsibilities of the Principal Contractor under the CDM Regulations?
Plan, manage, monitor and coordinate health and safety in the construction phase of a project. This includes: liaising with the client and principal designer; preparing the construction phase plan; organising cooperation between contractors and coordinating their work, ensuring that suitable site inductions are provided; take reasonable steps to prevent unauthorised site access; consult and engage workers in securing their health and safety; provide welfare facilities.
What are the main duties of workers under the CDM Regulations?
- They must: be consulted about matters which affect their health, safety and welfare; take care of their own health and safety and others who may be affected by their actions; report anything they see which is likely to endanger either their own or others’ health and safety; cooperate with their employer, fellow workers, contractors and other dutyholders.
To what projects do the CDM Regulations apply?
All construction projects defined as ‘the construction, alteration, conversion, fitting out, commissioning, renovation, repair, upkeep, decoration or other maintenance,…
de-commissioning, demolition, or dismantling of a structure’
Who produces the Pre-Construction information under the CDM Regulations?
The Client.
Who is responsible for producing the Health and Safety File under the CDM Regulations?
The Client / Principle Designer
Name 3 types of asbestos found in buildings
Chrysotile (white asbestos) is the most commonly used form of asbestos. It can be found today in the roofs, ceilings, walls and floors of homes and businesses. Manufacturers also used chrysotile asbestos in automobile brake linings, gaskets and boiler seals, and insulation for pipes, ducts and appliances.
Amosite (brown asbestos) was used most frequently in cement sheets and pipe insulation. It can also be found in insulating board, ceiling tiles and thermal insulation products.
Crocidolite (blue asbestos) was commonly used to insulate steam engines. It was also used in some spray-on coatings, pipe insulation, plastics and cement products.
Rare types include Anthophyllite, Tremolite and Actinolite.
What are the mandatory obligations of the RICS Professional Standard - Service Charges in Commercial Property?
- All expenditure that the owner and manager seek to recover must be in accordance with the terms of the lease.
- Subject to section 4.2.7, owners and managers must seek to recover no more than 100% of the proper and actual costs of the provision or supply of the services.
- Owners and managers must ensure that service charge budgets, including appropriate explanatory commentary, are issued annually to all tenants.
- Owners and managers must ensure that an approved set of service charge accounts showing a true and accurate record of the actual expenditure constituting the service charge are provided annually to all tenants.
- Owners and managers must ensure that a service charge apportionment matrix for their property is provided annually to all tenants.
- Service charge monies (including reserve and sinking funds) must be held in one or more discrete (or virtual) bank accounts.
- Interest earned on service charge accounts – or where separate accounts per property are not operated, a proper and reasonable amount of interest calculated on normal commercial rates – must be credited to the service charge account after appropriate deductions have been made.
- Where acting on behalf of a tenant, practitioners must advise their clients that if a dispute exists any service charge payment withheld by the tenant should reflect only the actual sums in dispute.
- When acting on behalf of a landlord, practitioners must advise their clients that following resolution of a dispute, any service charge that has been raised incorrectly should be adjusted to reflect the error without undue delay.
What are the Core Principles of the RICS Professional Standard - Service charges in
commercial property
- The service costs
- Allocation and apportionments
- Communication and consultation
- Duty of care
- Financial competence
- Occupier responsibilities
- Right to challenge/alternative dispute resolution (ADR)
- Timeliness
- Transparency
- Value for money
- Exclusions
What is included in the appendix of the RICS Professional Standard -Service charges in commercial property?
- Compliance checklists
- Servicer charge accounting sample reports
- Service charge handover procedures
What are the timescales in relation to service charge budgets?
- Budgets should be issued at least one month prior to commencement, and reconciled accounts issued within four months of the end of the service charge year in question.
What were your client’s long term objectives for the parade?
- Agree leases and re-let the vacant units in the parade.
- Look to sell the parade in the future
Did you notice any defects during your inspection? What was your advice to your client ahead of the lease renewal?
- Staining on the ceiling to suggest their had been a leak previously.
- Tenant advised this was not getting worse, staining appeared to be historic - in rings rather than one patch.
- mainly decoration that was required throughout the property rather than any disrepair.
- there was not significant risk to further damaging my clients building / other properties within the parade. Advised the client to seek to agree the renewal first and not raise the repair issues immediately. Tenant was already holding over at the commencement of my negotiations, going in too forcefully could have encouraged the Tenant to serve notice if they were struggling with cash flow etc during Covid. Could use this as a bargaining chip later on in negotiations to get the Tenant to agree to some of our terms. Once the Tenant had agreed that they would hold over I advised the client that we approach them and ask the Tenant to decorate the property, failing this they could serve a schedule of dilapidations / repairs notice, however, given it was only minor decoration required it is unlikely that this would be necessary.
What is the process for dealing with dilapidations?
- Advise the client that they must follow the dilapidations protocol (each party has an overriding responsibility to keep the matter out of Court)
- Appoint a surveyor to inspect the property and prepare a Schedule of Dilapidations
- Instruct a solicitor to serve the Schedule of Dilapidations (and Quantified Demand) - should be served within 56 days of the end of the lease
- parties negotiate
- Section 18 valuations under the Landlord and Tenant Act 1927 - can’t make a claim for dilaps that is greater than the diminution in value.
What is the process for serving a repairs notice?
Section 146 of the Law of Property Act 1925
Notice must:
- specify the breach complained of,
- if the breach is capable of remedy, require the leaseholder to remedy the breach, and
- in any case require the leaseholder to make compensation in money for the breach.
The leaseholder is given a reasonable time to remedy the breach.
Court proceedings cannot be commenced unless the leaseholder fails within a reasonable time to remedy the breach, if it is capable of remedy, and to make reasonable compensation in money for the breach, to the satisfaction of the landlord.
How could you deal with repairs to a property if a Tenant had breached their repairing obligations / failed to undertake a repair.
- Serve a notice to repair (S146 Law of property act 1925)
- Forfeit the lease (if there’s a forfeiture clause)
- Serve Interim Schedule of Dilapidations
- Do works and recharge to tenant
