Hot Topics Flashcards
What is a recent article you have read?
- No fault evictions to be banned in reform of the rental sector and end bans on tenants claiming benefits
- A no fault eviction is a key piece of legislation, known as Section 21, which allows landlords to evict tenants without giving a reason
- The Bill would also make it easier for Landlords to repossess properties from anti-social tenants.
- Under the new Law, tenants would be given the legal right to request to keep a pet in their home, which the landlord can’t unreasonably refuse.
- The Law would also make it illegal for a landlord to refuse tenancies to families with children, of those in receipt of benefits
How has Grenfell impacted your work?
- RICS has produced new guidance - Cladding for Surveyors 1st Ed March 2021
- Introduction of ACM Standards for aluminium composite material
- UK banned use of combustible materials for the external walls of high rise homes from 29th November 2018 above 18m (E.g un-modified polyethylene)
- Local authorities have to undertake remediation works to replace dangerous ACM cladding on existing buildings
- Introduction of EWS1 (External Wall System Fire Review)
- Fire Safety Act 2021, introduced in March 2020, update on the Fire Safety Order 2005
- It holds significant legal obligations of organisations deemed to be responsible persons
- Main focus is the amendment of the Fire Safety Order to clarify it will apply to the structure and external walls as well as anything attached to the external walls (doors, windows and cladding)
- Under the previous regime it was unclear as to who was responsible for the fire safety compliance of these elements of the building
- This will force owners, landlords, and managing agents of multi occupied residential buildings to take precautions to identify any dangerous cladding on those buildings and remediate any dangerous materials.
Are you aware of the Levitt Report?
- Following a Treasury Management Audit in 2018
- Concerns were raised that this audit was suppressed
- Therefore RICS commissioned this report to be carried out by Alison Levit QC(KC) in January 2021
- Prior to this audit the RICS had to extend its overdraft facility by circa £3m due to inaccurate cashflow forecasting
- The Treasury audit offered a ‘no assurance verdict’ on RICS internal financial control procedures
- Conclusion of the report eluded to an internal power struggle, due to its two board structure made up of a management board and executive board
What changes did the RICS accept from the Levitt Report?
The RICS accepted each of the recommendations:
- The RICS Governing Council is to have more oversight over internal dealings
- The RICS Governing Council are to be briefed by the Management Board as opposed to a single CEO
- The RICS Governing Council are to oversee executive management bonuses
- The report called for greater transparency as the CEO could have involved the management board in order to rectify the treasury issues
- No evidence of improper or illegal conduct was discovered
What RICS restructure followed the Levitt Report?
Following the Levitt Report towards the end of 2021, the RICS appointed its new leadership team and named Richard Collins as its new interim Chief Exec
Acting chair of the governing council Nick Maclean was also appointed as interim chair of the governing council, while Isobel O’Regan has been appointed as interim chair of the management board
All three members of the leadership team were to stay in their posts for up to 12 months to lead the RICS in carrying out the reforms recommended by Levitt in her report.
Are you aware of changes in inflation recently and how has it effected your job?
Yes I am aware the Consumer Price Index has fallen from about 10.1% to 8.7%
To help slow price rises, the Bank of England has increased interest rates to 5%
Recently due to the Ukraine War, there was a surge in inflation due to significant supply chain interruption.
Significant cost increase in materials due to reduction in availability
Oil and gas were in greater demand as life got back to normal after Covid. At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.
The war also reduced the amount of grain available, pushing up global food prices.
This has then meant the Bank of England has raised interest rates which has increased the cost of borrowing.
As a result, has effected our developer clients.
What is the RICS Futures Report?
- In 2015 the futures report was launched and highlighted key trends such as
urbanisation, the disruption of big data and the climate crisis as presenting key
challenges to the property and construction industries. - Since 2015 the RICS have analysed these trends by engaging with the
profession to keep its members best informed on how to address these key
issues. - Resulting findings highlighted in the 2020 futures report include:-
- Construction produces the second largest amounts of data behind financial
services however it is estimated that 95% of this is currently wasted. The
RICS is setting up an innovation and technology hub to provide a centre of
expertise on how data can be put to good use. - The rapid urbanisation in China was also highlighted where formation of
mega-cities is creating key challenges. The amount of land classed as urban
has doubled since 2000 resulting in polluted, congested and expensive areas.
The RICS aims to encourages it members working in these regions to adopt a
more sustainable approach to the development of these areas through
utilsation of outer urban areas. - The rapid increase in the use of drones within the industry was also
highlighted as presenting key challenges in terms of compliance issues for
surveyors taking into account current and emerging regulatory trends, national
and international legislation standards. The RICS has developed online courses to support surveyors in this area to ensure the technology is being utilised efficiently, safely and legally.
Are you aware of some of the aims highlighted within the latest RICS Business Plan?
A)
Incorporating the Levitt Report Recommendations
- Following acceptance of the Levitt Report recommendations in full the RICS
looks to:- - Be more open and transparent with members and the public about the
operation of the institution including decision making and finances. - Developing and implementing new, more effective, internal whistle blowing
arrangements - Reviewing the arrangements for senior executive reward.
Immediate Financial Priorities
- Continue to support the profession as economies recover from COVID-19 and seek to minimise any increase in the cost of subscription levels
- utilise any surplus in cash generation to pay back furlough monies received via the UK government’s Corona virus Job Retention Scheme
- Reduce RICS’ need to access external financial support
- Reduce any funding deficit in the closed Final Salary Pension Scheme
Apart from setting minimum levels of indemnity and maximum levels of uninsured excess, what are the other general requirements regarding Professional Indemnity Insurance set by the RICS?
- The policy cover must be made on an ‘each and every claim’ basis
- The policy must be fully retroactive
- The RICS sets out the maximum levels of uninsured excess
- Run off cover in place
- The policy should cover past and present employees, directors and partners
How else has the Ukraine War effected your job?
- Significant cost increase in materials due to reduction in availability
- Supply chain interruption
- Effecting financial viability of development
- Shortage of labourers
- Reduction in willing tenderers
- Force Majeure clauses being activated in Contracts due to an extreme or unforeseen instance preventing the contractor from fulfilling their contractual obligation
Have any recent changes in Building Regulations (Legislation) effected your job?
On 1 June 2022, the government introduced a package of improvements to further strengthen and clarify building regulations and fire safety guidance as part of wider reforms to building safety.
Changes to Approved Document B have meant increased costs to our clients, from such examples as:
Two or more basements serving residential flats over 900m2 should be provided with at least two firefighting shafts.
- The ban on combustible materials in and on the external walls of buildings, introduced in 2018, will now apply to hotels, hostels and boarding houses – in addition to blocks of flats, hospitals, student accommodation and dormitories in boarding schools.
Are you aware of what ICMS 3 is?
- The RICS is one of 49 globally prominent organisations to have contributed to
the development of the ICMS. - ICSM stands for the International Cost Management Standard which provides
a framework for cost and carbon management in construction from concept to
completion. - The framework provides a format for defining, measuring, recording and
presenting life cycle costs and carbon emissions associated with construction
projects and aims to decarbonise them in the most cost-effective way.
What did the RICS Report advise on Sustainability?
Building construction and operations account for 36% of global energy use, and 40% of CO2 emissions.
RICS have established a Building Carbon database for detailed comparative data on carbon emissions.
RICS have also launched a professional statement on whole life carbon assessment for the built environment. Provides information on the assessment of a building’s environmental performance.
RICS stated that they were committed to achieving the UN’s sustainable development goals.
RICS should take a leading role in sustainability in the built environment. This was later echoed in the Bichard Review.
Are you aware of the CIC?
The Construction Industry Council (CIC) was established in 1988 to provide a single voice for professionals in all sectors of the built enviorment.
March 2017 the CIC launched: Essential Principles, Creating an accessible and inclusive environment
The guide contains six principles to underpin decisions by clients, employers and the wider society which can help create an inclusive environment.
What are the Construction Industry Council principles?
- Contribute to building an inclusive society now and in the future.
- Apply professional and responsible judgement and take a leadership role.
- Apply and integrate the principles of inclusive design from the outset of a project.
- Do more than just comply with legislation and codes.
- Seek multiple views to solve accessibility and inclusivity challenges.
- Acquire the skills, knowledge, understanding and confidence to make inclusion the norm not the exception
