RICS Hot Topics Flashcards
What are the new RICS PII Requirements for 2022?
Changes the max uninsured excess of PII, allowing larger companies no max limit of uninsured excess.
Companies with less than 10m the excess is greater of 10k or 2.5% of insured sum
What are the general requirements regarding PII by RICS
Policy cover must be each and every claim
RICS sets out the minimum policies
Fully retroactive
Run off cover in place
What is the RICS Futures Report
2015
- Key trends in the future like climate crisis / data
- Construction is industry with large amounts of data however 95% is wasted.
- Infrastructure and Technology Hub to use this data.
- Challenges of using drones for surveyors.
What are the New Rules of Conduct
- Honest Integrity and comply with professional obligations
- Competence
- Good Quality Service
- Respect
- Public Interest
Why did the previous ethics rules change?
- Majority voted in favour of replacing existing standards
- Single document providing greater clarity
Talk through your understanding of the changes to the Rules of Conduct
- Overhaul of previous system with had Rules of Conduct for Members and Firms.
- Appendix A contains professional obligations
Explain your understanding of Rule Number 1
Honesty, Integrity and comply with professional obligations
- Must not allow themselves to be influenced
- Identify conflict of interest
- Act impartially
Explain your understanding of Rule Number 2
Act in your own competence
- Act for clients when you have necessary skills / resource
- Firms must supervise junior members
Explain your understanding of Rule Number 3
Provide a good quality of service
- Understand the project requirements before acting on their behalf.
- Scope of service should be agreed with exclusions and timescales.
Explain your understanding of Rule Number 4
Treat others with respect
- Ensure everyone is treated fairly and remove discrimination.
- RICS have a no tolerance policy on bullying / harrassment.
Explain your understanding of Rule Number 5
Act in the public interest
- Question practices and decisions that are not right.
- Public statements need to ensure they do not undermine public confidence.
What are the professional obligations of members?
- 20 hours of CPD for each year (10 formal)
- Cooperate with RICS
- Promptly provide info requested from Standards and Regulations board.
What are the professional obligations of firms?
- Complaints Handling Procedure
- Work is covered by PII
- Sole Principal make arrangements for work to continue in incapacity / death.
- Cooperate with RICS
- Promptly provide info requested from Standards and Regulations board.
- Firms display their business literature in accordance with RICS policy.
- Reporting on anything they are required to report on.
What steps would you take in the event of a main contractor insolvency?
- Secure the site
- Terminate contract
- Call in any performance bonds
- Step in rights if collateral warranties in place (funder in place of main contractor)
- Insolvency expert may be require.
- Keep detailed records
- Prepare notional final account.
- Undertake steps for reletting the works.
What key challenges does the Global Economic Recession present to you.
- Inflation rates of around 8% has increased the interest rates increasing borrowing costs
- Financial viability is decreasing due to borrowing costs, energy and labour costs rising
- WFH reducing office demand postponing office developments
- Reduction in fee income when clients have asked for fees to remain at the level causing a real term decline.
What has been the effect from the war in Ukraine?
- High dependency on gas/oil from Russia resulting in higher energy prices
- Steel Bricks Plastic Ceramics costs increased as they have a high energy input.
- Ukraine compounded effects from C19 and Brexit
- Delay / disruption of delivery of goods / materials
How Brexit has effected the UK Property and Construction
- Movement of personnel changes, sponsors to recruit and must meet salary, job and language requirements reducing labour
- Movement of material, price of movement expected to increase due to the increased red tape / border checks
Are there any RICS Guidance notes on Brexit?
- Number of position statements
- Loss of a diverse construction workforce
- Loss of EU funding streams
- RICS have asked UK Gov to plug the gap.
Are you aware of any RICS Guidance Notes on Covid-19?
RICS Guidance to Surveying Services
- Guidance on inspections and reopening of spaces
What was the impact of Covid-19?
- Cost increased - Contingency budgets
- Labour shortages
- Material shortages - Early Ordering
What was the Paris Agreement? What happened at COP27 in 2022?
- Reduce temperature rises to 1.5 degrees.
- Highlighted countries most affected by climate change
- Loss and Damage fund was agreed for richer counties to pay poorer ones.
What are the changes to minimum energy efficiency standards?
- Changes to EPC requirements in 2025
- Rental requirements to a C rating from E
What is a Green Mortgage
- Providing more favourable mortgage terms on an energy efficient building
What is an Urban Greening Factor?
- Evaluates amount of urban greening around buildings
- Aim to increase green covering
What is ICMS3
- International Cost Management Standard
- Framework for cost and carbon management from concept to completion.
- Measuring life cycle costs and carbon emissions.
What is embodied carbon?
Carbon emissions generated from the production of a material
How do you apportion risk?
- Risk avoidance
- Risk reduction
- Transferred
- Retained by client
- Shared
Risk and procurement?
Time
Cost
Quality
Risk quantification techniques
- Probability tree
- Conte Carlo
- Sensitivity analysis
RICS and Social Media
RICS Guidance Note on Social Media for Members.
Investigations if posts are dishonest, discriminatory, bullying etc
What is IEQM, any others?
Improve diversity and inclusion
Diversity and Inclusion Leadership
What is the structure of the RICS?
Governing Council
RICS Board and Standard and Regs Board
Within RICS Board - Membership Services Committee and Knowledge and Practice Committee
S+R Board - Qual and Assessment Committee, Regulatory Tribunal
Professional Standards vs Practice Information
Professional Standards - Requirements and expectations for a baseline of competence
Practice Information - Supporting guidance to advice on working practice
RICS Logo
- Guidance for personal use of the RICS Logo
- Rules of Conduct for firms use of RICS logo and designations
RICS Leadership
President - Tina Paillet
President Elect - Justin Sullivan
CEO - Justin Young
IPMS
International Property Measurement Standards
What was the Levitt Report
- Inaccurate cashflow forecasting
- Power struggle Management and Exec Board
Levitt Report Recommendations
- Greater transparency
- Gov Council to oversee Exec bonus
- Gov Council to be briefed by the board not just CEO
What is an EWS1 Form
External Wall System Fire Review Certificate
Party Conflict
Acting in the interests of a client conflicts with a duty owed to another client
Own Interest Conflict
Acting in the interests of a client conflicts with the interests of yourself.
Confidential Information Conflict
Providing material to one client and making sure it is kept secret from another party who might be interested.
What clauses did you look to change for the DoV?
- Adding a Sectional Completion
- Adding Liquidated Damages to that Section
- Adding Section rectification period
- Adding Date of Possession for Section
What is an LLP
Every partner has a limited liability to the debts and claims of the partnership.
What is a Ltd
There are a fixed number of owners and shareholders whose liabilities are limited to the value they originally invested.
