Q&As

Question 1

What are the issues surrounding PII at the moment?

Answer 1

Difficult for some firms to obtain the correct PII - increasing premiums, a restricted supply of insurance available in the market and growing concerns around the following:

1. Covid-19
2. Working from home (meaning less secure networks and more risk of cyber attacks)
3. Fire safety and cladding

Question 2

When Covid-19 happened - how did it affect your contract?

Answer 2

Works continued on site

Works were suspended

Question 3

When works were suspended during Covid-19 what did you need to consider?

Answer 3

Is the site adequately secured and what security measures are in place?

Are there any unfixed materials stored on site?

Have the insurers been notified of site closure?

What are the contract terms re suspensions and termination?

Question 4

Following suspension, how did you get back on site?

Answer 4

Issued extension of time

Updated CPP to include Covid-19 measures

Held pre-start meeting

Question 5

What is causing the recent material supply/demand issues?

Answer 5

Supply disruption

Covid-19

Weather events

Rising energy costs

Political issues

Demand (DIY boom, global demand for steel/timber/etc., big infrastructure projects)

Question 6

What materials are being affected by inflationary price rises?

Answer 6

Steel

Timber

Rebar

Concrete

Question 7

How else are the material supply/demand issues affecting construction?

Answer 7

Inflexible commercial terms such as very short, fixed price period preventing bidders obtaining fixed price protections

Potential for business failure as a result of commercial pressures which could result in safety and quality compromises

Question 8

As a QS what advice would you give to your client regarding materials shortages/inflation?

Answer 8

I would advise them that they could use early procurement/placement of orders to secure availability, cost and programme

Pain/gain share risk allocation

Collaborative working

Fluctuations

Prime cost sums (Note: the basis of the prime cost should be clearly understood – for example, whether it is inclusive of all subcontract on‑costs and margin, transport costs, wastage and so on – so there is no risk of misunderstanding later)

Question 9

How would collaborative working help this issue?

Answer 9

Reduced project disputes if major drivers (inflation or availability) are shared rather than transferred

Problem sharing will encourage collaborative actions to mitigate cost escalation risk

Improved transparency and information quality will support better decision making

Question 10

What considerations do your clients need to consider as part of the Ukraine crisis?

Answer 10

Funding arrangements including drawdowns

Currency/inflation impact on construction programmes

Current contract status including confidence in fixed price commitments

Material supply chain

Current and potential exposure to sanctions of Russian firms

Increased risk of cyber-attacks

Question 11

Building Safety Act - what can you tell me about it?

Answer 11

UK Government’s response to the Grenfell Tower disaster

Phased introduction over the next 18 months:

1. First phase around July
2. Second phase 6-12 months
3. Third phase 12-18 months

Establishes a new building safety regime governing the design, construction and occupation of higher-risk buildings

Building Safety Regulator will become part of the HSE to oversee and implement the Bill

The Bill assigns an ‘Accountable Person’ who will be legally responsible for building safety on occupation

Question 12

What three gateways does the Bill establish for higher-risk buildings?

Answer 12

1. Planning
2. Pre-construction
3. Completion

The Bill introduces requirements to submit safety information to the Building Safety Regulator in order to proceed to the next gateway

Question 13

Following Grenfell, what did you learn and how has this changed the way you do work?

Answer 13

It taught me that in construction, my actions and advice can have consequences

It taught me the importance of always acting in the public interest and maintaining my duty to the public

It made me more aware of my actions and to recognise when it’s best to seek a second-opinion and another point of view

Question 14

What’s the golden thread of information?

Answer 14

The golden thread is both:

1. The information about a building that allows someone to understand a building and keep it safe, and
2. The information management to ensure the information is accurate, easily understandable, can be accessed by those who need it and is up to date

Accountable Person responsible for maintaining and updating the golden thread

Has to be kept in digital format

Question 15

What was the Independent Review?

Answer 15

A review commissioned by RICS to investigate allegations that RICS tried to supress a financial report in 2018/19 and then unfairly dealt with those who sought to explore the issue

Carried out by Alison Levitt

A number of key RICS figures stood down before the report was published

Question 16

What were the conclusions of the Independent Review?

Answer 16

RICS did not follow their governance principles

The concerns of non-Executive Board members were legitimate and they were wrongly dismissed

There was a lack of clarity around the roles and responsibilities of the various RICS Boards and senior leadership, which led to a lack of scrutiny over the actions of the RICS CEO and COO

Question 17

What are your thoughts on the allegations?

Answer 17

Not great - especially from an institution that wants to promote trust in the profession and be seen as the “gold standard”

Does it stop me from wanting to be MRICS? No… I’d rather be part of the solution

The report shows that RICS needs to change, and I want to be a part of that change

Question 18

What is the Bichard RICS Review?

Answer 18

Recommended in the Levitt Review

Independent review commissioned by RICS to review the institutions’ purpose, governance and strategy

Question 19

What are the key recommendations of the Bichard Review?

Answer 19

36 recommendations including:

• A renewed and increased focus on the public interest remit of RICS
• Increased focus on Diversity and Inclusion across the profession and within RICS
• Increased member engagement, with renewed focus on younger members
• Showing greater leadership on the issues that matter most to society e.g. sustainability and climate change

Bichard recommends the reforms are implemented quickly and in 3 phases