Client Care L1 & L2

Question 1

If a client was prepared to pay you in advance for services you were providing, how would you ensure this was dealt with?

Answer 1

I would set up a separate client account which is properly named and identifiable.

Provide the client with a statement of the account

Inform and agree drawdowns
Prior to drawing monies, send a statement of how much is to be withdrawn and what services and associated fees are made up of

Once complete would need to show a final statement, ensuring everything is complete and transparent

Question 2

When would you be able to ask the client for additional fees?

Answer 2

Where the programme duration of the project has been extended

Where the scope of services being delivered has changed

The location and travel requirements of the project have changed

Increased attendance at meetings has been requested

Question 3

How would you approach claiming additional fees from the client?

Answer 3

Arrange a meeting with the client and explain the reasoning around the additional fees

Discuss the reasoning behind the additional fee claim

Discuss the benefits the additional services will provide to the client

Be sympathetic, understanding and prepared to offer a compromise

Make sure the information being presented is clearly set out and understood by the client

Question 4

You are bidding for a project and the client advises that if you reduce your fee bid by £3,000 you will be first place and win the tender, how would you advise the client?

Answer 4

Make the client aware that this is unfair competition

Not treating other practices with respect

Undertaking business in this manner is unsustainable

May also de-value the profession

They would need to reduce the scope of services and whether this would provide a high standard of service

This could also be interpreted as a bribe therefore we would respectfully decline the offer.

Question 5

What measures should be taken in order to try and avoid professional indemnity claims?

Answer 5

Keep full and detailed records of meetings and conversations

Record recommendations and advice given

Use correct letters of engagement, scope of services and terms of engagement

Ensure not to advise clients outside your field of professionalism

Use RICS guidelines

Avoid poor management and excessive workload

Question 6

What processes need to be in place when handling clients money?

Answer 6

Look at the RICS 8 for firms client money handling

Need to ensure that clients always have access to funds

Clients money must be kept separate and clearly identifiable

Any interest on the account must be agreed with the client

Account must not go into an overdrawn position

Controls need to be in place to keep funds secure

Question 7

What is the clients money protection scheme?

Answer 7

This is a protection scheme which is run by the RICS

Provides for an member of the public to be reimbursed their direct loss of funds, provided through the RICS insurance policy

The RICS client money protection scheme is split into 2 parts:

General client money protection, covering money held by firms and ….

Residential agency activity in England for protection, covering areas under the client money protection scheme for property agents

Question 8

What components must a complaints handling procedure include?

Answer 8

The RICS provides a form which has 2 stages:

Stage one :

Acknowledge the complaint as quick as possible but no more than 28 days

The complaint should be handled by a senior person

This stage must be free of charge

Stage 2:

If the firm is unable to resolve the complaint internally then the complaint will be taken to an independent advisor that is approved by the RICS

The complainant may also be expected to contribute towards costs incurred during the second stage

It must be quick, clear and transparent.

Need to advise PI insurers of a complaint immediately

Question 9

Why is client care so important?

Answer 9

Practices that provide excellent care are likely to retain existing clients and develop new business

A failure to provide good client care is likely to lead to client dissatisfaction and in the worst case professional indemnity insurance claims for professional negligence

Formal complaints and insurance claims can be costly and may also result in a stressful working environment

Complaints and claims can and should be avoided with diligence, manageable work load and recourse planning

Question 10

Give me an example of when you have provided excellent client care?

Answer 10

Client Feedback - Processes for collecting and responding to client feedback have been arranged by myself. Other processes such as project reviews, informal feedback and client satisfaction surveys have also been undertaken. I have used these to improve the clients experience and act upon the feedback received.

Networking - I have arranged events as a mechanism to build broader relationships with clients

Briefing process - I have ensured the briefing process is clear therefore ensuring that the expectation of both parties are aligned

Question 11

What is Client Care?

Answer 11

This is to look after the clients best interest and providing an appropriate service which achieves value for money. This can be done by:

Professionalism
Competence
Punctuality
Trust
Reliability
Regular communication
KPI’s to monitor client satisfaction

Question 12

What is a complaint and why is this a serious topic area for surveyors?

Answer 12

A complaint is a statement that a situation is unsatisfactory or unacceptable to the client

This can be made either formally, either in writing or verbally

It is important to take complaints seriously as the RICS require these to be handled in line with their complaints handling procedure

In the worst case, they can result in loss of clients and reputational damage

Question 13

When should you decline an instruction of new work from a client?

Answer 13

If there is a conflict of interest

If we cant resource the job

If we are not competent to undertake the job

If it is illegal

Question 14

What components make up a fee proposal or fee bid?

Answer 14

Executive summary - referencing the scope of services
Client needs/drivers
Project risks or issues
Benefits to the client / previous experience
Conditions of engagement including T&C’s
Methodology including the organisation and CV’s of the project team
Proposed fees

Question 15

How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?

Answer 15

Check the clients understanding of the conflict of interest
Seek letter of instruction to continue
Agree working procedures to manage the conflict
Keep them updated of any risks

Question 16

What is a client brief?

Answer 16

The client brief is to provide a firm foundation for the initiation of the project

It is a formal statement of the objectives and functional operational requirements of the finished project

Should be in sufficient detail to enable the integrated project team to execute the specification and detailed design of the work and is therefore an essential reference for the team

Question 17

How would you limit the risk of working with a client who may be financially unstable?

Answer 17

Financial screening such as:

Dun and Bradstreet credit check
Companies house search
Internet search (client website for additional information - judgement on reliability)

Question 18

If the client asked us to lower our fees because of their limited funding, what would you do?

Answer 18

The client would have to pay the required price for the level of service required or reduce the scope of works involved

Question 19

What is meant by the term Duty of Care?

Answer 19

A duty of care is to ensure that another party does not suffer harm or loss that can arise as a result of a breach of contractual obligations or tort of negligence.

General forms of appointment will include contractual duties to perform services with reasonable skill and care that apply to a standard expected of a reasonably competent person

If tort of negligence is applied this relies on the court applying relevant aspects of common law to determine the duty of care that is owed

Question 20

What is meant by the term KIP’s?

Answer 20

A KPI Performance indicator is a measurable value that demonstrates how a business is achieving key business objectives.

Organisations use KPI’s at multiple levels to evaluate their success at reaching targets

High level KPI’s may focus on the overall performance of the business, while low level KPI’s may focus on processes in departments such as sales, marketing, HR

Question 21

What are some examples of KPI’s?

Answer 21

Number of defects or snags within a project

Overspend or underspend against the initial project budget

Timescales for the delivery of the project against the targeted programme

Profitability of the project

Feedback from the end user

H&S incidents

Environmental impacts

Use of local resources/ materials

Question 22

Why is it important to maintain existing client relationships?

Answer 22

It improves the chances of securing repeat business

It provides firms with a competitive edge

it is less expensive to retain existing clients than to acquire new ones

it improves the chances of being able to establish networks and connections with other clients through positive client recommendations

Revenue can increase if the client decides to appoint the consulting firm for other service offerings

Question 23

What are the key components of a consulting fee proposal/ scope of services?

Answer 23

Scope of Services
Terms of engagement
Basis of pricing
Fee and drawdown schedule
Project Particulars
Timescales / Programmes and deliverables
Insurances
Excluded items
Payment Terms
Complaints Procedure
Project Team and CV’s

Question 24

How would you calculate your professional fee proposal for a new project?

Answer 24

Understand client requirements including project scope of service, key project particulars, project budget and timescales

Confirm the number of meetings, inspections, reporting requirements and frequencies.

Establish the seniority of resource required and the extent of the team required to deliver the project

Assess the duration of the project

Apply daily or hourly rates against the activities required of each team member

Review the proposed fees against the project budget as a percentage to serve as a final sense check

Question 25

The partner says you have spent all the fees on the job and the final accounts are still to be agreed, what should you do?

Answer 25

I don not lower my level of service

I investigate why all the fees have been spent

If it is an error in my fee calculation, i put something in place to ensure this does not happen again

If it is because i have provided additional services I give all the details to my director to prepare a claim for additional fees

Ensure to keep track of fee spending and all of the works not included in our scope of services.

Question 26

What issues would you anticipate with one consultancy providing all of the professional services for the client?

Answer 26

Errors and underperformance by one discipline may not be managed effectively therefore harming the reputation of the business

There may be a lack of innovation, creativity and fresh ideas

Colleagues within the same firm may not feel well placed or confident to challenge their peers

Question 27

Once you and your client verbally agree the services to be provided what would you do next?

Answer 27

Formalise the agreement by issuing a formal fee letter, scope of terms and terms of engagement

The formal appointment would need to be signed off by the client

A conflict of interest check would be undertaken

Ensure appropriate insurances are in place

Question 28

What is a consultant appointment document?

Answer 28

A form of appointment by which a consultant is appointed to the project

The terms of writing should be set in writing as soon as possible

The scope of services should be clearly defined along with the fee being charged with the services

Question 29

Assuming you were successful in getting chartered, how would you deal with a situation such a friend asking you to provide PM advise?

Answer 29

I could not offer advise on my own without PI Insurance

If I did not own PI insurance I would ensure that to the information given was thoroughly checked before submitting

Inform them that they can contact me during normal working hours

If I am not comfortable acting for them, I would advise them to use the RICS find a surveyor scheme

Always adhere to RICS rules of conduct

Question 30

When setting up a new practice what procedures would you put in place to ensure good client care was being provided?

Answer 30

I would ensure to have clear lines of communication with the client, confirming timescales, resourcing, and obtaining any information required from the client.

Set up procedures for obtaining regular client feedback and ensuring this is acted upon by holding monthly client performance reviews

Develop strategies for takin part in business development activities in order to retain existing clients and generate new business

Report to clients using agreed and consistently formatted documentation that has been tailored to meet client requirements.

Question 31

On receipt of a formal written complaint from a client in writing what would you do?

Answer 31

Arrange a call with the client as soon as possible to notify them that you have received the complaint and are working to rectify the issues

Issue a copy of the firms complaints handling procedure for reference

Report the complaint with all relevant details to a senior person within the firm

Notify our PI insurers in line with our policy requirements

Arrange a meeting with the client to take their feedback on board

If i was unable to resolve the claim this would need to be referred to the RICS independent redress mechanism

Question 32

What is the difference between a client and a customer?

Answer 32

Customers are defined as an individual who is purchasing goods and services from a company and are typically one time transactions.

A client is someone who looks for professional services from the business

A customer engaging in a transaction will not have the same relationship as a client who engages in a relationship with the company

Both sides work on long term goals and a long lasting relationship. This means the business has to focus on creating a strong bond with the client in order to retain them

Question 33

How do you conduct yourself with a new client?

Answer 33

I will always ensure to be friendly, engaging and enthusiastic

I will be positive about key challenges the client may be facing

I will ensure that at all times i am:

Well presented
Polite
Conscientious
Respectful

Question 34

Please provide your overview of your quality management procedures?

Answer 34

Peer review process - ensuring work is checked prior to issuing to the client

Standardised format of documentation

Authorisation and signature processes being in place prior to releasing documents

Accessible file storage systems so that the latest information is always up to date on on hand for any short term absence of staff

Procedures for absence of staff to ensure information is handed over appropriately

Make reference to internal and external audits

Client performance feedback

Question 34

What is meant by the term soft landings?

Answer 34

Thee term soft landings refers to a strategy to make an easy transition from the construction stage to the occupation stage of a project

This ensures that the end user of the project can operate it effectively

Question 35

What is your firms procedure for obtaining client feedback?

Answer 35

Client performance reviews being undertaken every 3 months

Use of Key Performance Indicators

Regular day to day communication with the client

Lessons learnt workshops at the completion of the scheme

Question 36

What is meant by the term client money?

Answer 36

Money of any currency whether in the form of cash, cheques, draft or electronic transfers

When money is received on behalf of another person or company that is not immediately due or payable on demand to the RICS regulated firm for its own account.