Client Care level 1 Flashcards
(37 cards)
If a client was prepared to pay you in advance for services you were providing, how would you ensure this was dealt with?
- Set up a separate client account that is properly named and identifiable.
- Provide client with a statement of 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- Prior to drawing monies send a statement of how much is to be withdrawn and what services and associated fees are made up of. Send updated statements of account.
On what ground would you ask a client for additional fees?
Programme being extended
Scope of services being delivered has changed
The location and travel requirements of the project have changed
Increased attendance at meetings has been requested
The frequency of the project deliverables have been adjusted
The value and scope of the project has changed
Asking client for additional fees, how would you approach this?
Arrange meeting with client
Explain the reasoning behind the additional fee
Discuss benefits and 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
You are bidding for a project and the client advises that if you reduce your fee bid by £3,000 you will be first in place and win the tender, how would you advise?
Unfair competition
Not treating others with respect
Not acting with integrity
Unstainable to undertake business in this manner
Avoid sutch actions as devaluing the profession
You would need to reduce scope to achieve the same margin, would this provide high standard of service?
This could be interpreted as a bribe
What measures should be taken to avoid PI claims?
Keep full and detailed record drawings of meetings, conversations ect.
Record recommendations and advice given
Use proper letters of engagement, scope of services and terms of engagement
Don’t advise on a specialism outside your field of experience
Use RICS guidelines
Avoid poor management skills
What processes need to be in place for handling clients money?
Rule 8 for firms Client Money Handling
Client must always have access to funds
Client money must be kept separate and clearly identifiable - included ‘client’ in account name
Interest on the account must be agreed with the client
Must not be overdrawn
Controls in place to keep funds secure
Competent and knowledgeable staff to process clients money with cover provided for long term absence.
What is the ‘clients’ money protection scheme?
Run by the RICS
Provides for any member of the public to be reimbursed their direct loss of funds
This is provided through RICS insurance policy
RICS CMP Scheme is split into two parts
General client money protection - covering money held by firms undertaking any surveying activities
Residential agency activity in England protection - covering areas under the client money protection schemes for property agents
What components must a complaints handling procedure include?
The RICS provides a model form which has two stages as a minimum
Stage 1 - acknowledge the complaint as quickly as possible but no more than 28 days
The complaint should be handed by a senior person or a designated complaints handler
The first stage must be free
Stage 2 - if the firm is unable to resolve the complaint internally then it will be taken to an independent redress mechanism that is approved by the RICS
It must be clear, quick, transparent and impartial
The complained may be expected to contribute towards costs incurred during the second stage
All complaints their programmes and outcomes must be recorded
Note the need to advise PI insurers of a complaint immediately
Why is client care so important?
Surveying practices that provide good customer care are likely to keep clients and develop new business
A failure to provide good client care will result in customer dissatisfaction, complaints and in the worst case scenario PII claims for professional negligence.
Formal complaints and insurance claims can be costly and result in stressful working environments which results in reduced staff performance
Complaints and claims can and should be avoided with diligence, manageable workloads and resource planning and well developed procedures for obtaining and acting on customer feedback
Give me an example of when you have provided excellent customer care
Think about client feedback
Victoria House
What is client care?
Looking after the clients best interests and providing an appropriate service that satisfies the client needs
What is a complaint and why is this a serious topic for surveyors?
A complaint is a statement that a situation is unsatisfactory or unacceptable to the client.
These can either be made formally either in writing of verbally
It is important to take complaints seriously as the RICS require these to be handled inline with their complaints handling procedure.
Practices have an obligation to notify PII insurers
In the worst case they can result in loss of clients, reputational damage and PII Claims against firms.
When should you decline an instruction of new work from a client?
If there is a conflict of interest.
Not in clients interest - you cant resource the job
Illegal
What makes up a fee proposal/Fee Bid?
Executive summary - scope / solution
Clients needs / drivers
Project issues
Benefits for clients / experience
Conditions of engagement / T&C
Methodology / organisation / CV of Project team
How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?
Check their understanding of reduced impartiality
Seek letter of instruction to continue
Agree working procedures to manage the conflict
Keep them updated of any risks
What is a client brief?
The purpose of the project brief is to provide a firm foundation for the initiation of the project
A formal statement of the objectives and functional and operational requirements of the project 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
How would you limit the risk of working with a client who may be financially unstable.
Screening process:
Credit Check
Company Search (Company House)
Internet search (Client website for additional information)
If your client asked you to lower your fees due to their limited funding what would you do?
The client would have to pay the required price for the level of service required or reduce the scope of works involved
What is meant by duty of care?
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 is to a standard expected of a reasonably competent person.
However if the appointment is made on the basis of specialist capabilities then the duty of care expected would be to the standard of a competent specialist rather than a general practitioner operating in that field
In the absence of contractual obligations tort of negligence can be applied which relies on the courts applying relevant aspects of common law to determine the duty of care that is owed.
What is meant by KPI’s?
Key performance indicator
Measurable value that demonstrated how effectively a company is achieving key business objectives
What are some examples of KPIs?
Number of defects / snags within a project
Overspend or underspend against the initial project budget
Timescales for delivery of the project against the targeted programme
Profitability of the project
Feedback from the end users
H & S incidents
Why is it important to maintain existing client relationships?
Improves chances of securing repeat business
It provides firms with a competitive edge
It is less expensive to retain existing clients that to acquire new ones
It improves the chances of being able to establish networks and connections with other clients through testimonials and recommendations.
What are the key components of a consultant fee proposal / scope of services?
Scope of services
Terms of engagement
Basics of pricing
Fees and drawn down schedule
Project particulars
Timescales / programme of deliverables
Insurances
Excluded items
Assumptions
Payment terms
Complaints procedure
Project team
How would you calculate your professional fees for a new commission?
Understand client requirements including project scope of services, 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 duration of project
Apply daily / hourly rates against the activities required of each team member
Review proposed fees against project budget as a percentage to serve as a final sense check
Issue fees to client in a formal written agreement
