Ethics Q&A Version 2 Flashcards

Question

How do you promote the profession - For your firm?

Answer 1

Engage in local community with careers fares to encourage young people to have an interest in property development.

Answer 2

Provides a framework of questions which members should ask themselves when they are asked to act in a potentially unethical manner. It encourages consistency with the rules of conduct. For example: Is it Legal? Do I have all the facts? Would I be comfortable if this was released into the public eye?

Answer 3

Effective 2018 Mandatory rules which do not allow any Member to provide Client advice or represent a client where there is a conflict or a serious potential for one. Discusses avoiding conflicts and the management of conflict where a member can continue despite there being a conflict (whilst still being independent and impartial and in client’s best interest) Lays out the three types of conflict – party, own interest & confidential information Provides information regarding prior informed consent and information barriers

Answer 4

4 offence defined in the Bribery Act 210 The giving, offering, promising or receiving of an advantage such as payment for an action

Answer 5

4 Offences: (1) to bribe, (2) receive a bribe, (3) bribe a foreign public official or (4) failure to prevent a bribe 6 principles: Proportionality, Top level commitment, Risk Assessment, Due Diligence, Communication and Monitoring and Review. Ensures adequate procedures are in place with correct monitoring and risk assessment. Staff training, provision of clear policies and regular reviews. Not all gifts are deemed to be bribes – its whether they are REASONABLE and PROPORTIONATE. All gifts would need to be recorded on a gift register Max 10 year’s imprisonment or unlimited fine Policed by serious fraud office

Answer 6

* Proportionality * Top-level commitment * Risk assessment * Due diligence * Communication * Monitoring * Review

Answer 7

* Bribery Act 2010 * Proceeds of Crime Act 2002

Answer 8

They police the Bribery Act 2010.

Answer 9

Maximum 10 years in prison and /or unlimited fine

Answer 10

Limits: Receipt of gifts up to £150 Receipt of hospitality up to £250 Must not give or received during tender process Would record in gift register Complete gift register where receive over these limits and receive approval for manager If unable to return gift/rude donate gift in charity raffle

Answer 11

Cannot be more than £540 in a singular year from the same firm. I would consider what was proportional, however subject to the circumstances.

Answer 12

Depends on the proportionality, timing and how lavish. If I were invited by a client who I completed a high value design and build project for successfully I might accept, however if I was invited by a client during a project or during a bid, I wouldn’t. In any case I would also need to gain approval in line with company policy.

Answer 13

I have not received a gift. However, I am aware the my firms gifts and hospitality rules. My firm implements a charity raffle for any christmas gifts and hampers to ensure they are shared across the whole firm. This would then be recorded on the gift register

Answer 14

I would politely decline.

Answer 15

The process by which the proceeds of crime are converted into legitimate funds e.g. buying property with the proceeds, which are then ‘cleaned’ when the property is sold.

Answer 16

I would inform my Company’s in-house legal team (Alexandra Barker – Group Company Secretary), who would submit a Suspicious Activity Report to the National Crime Agency.

Answer 17

Offences: Concealing criminal property, making arrangements with criminal property, acquisition, use and possession of criminal property, failure to disclose and tipping off (5 offences) Max 14 year’s imprisonment & unlimited fine if assist Max 5 year’s imprisonment & unlimited fine if tip off or fail to report

Answer 18

- Contact the RICS for guidance and obtain a company start up pack. - Inform the RICS and register for regulation. - Appoint a responsible principal for all RICS communication - Prepare a complaints handling procedure and establish a complaints handling procedure. - Procure sufficient PII and send to RICS details - Establish a Client Money Handling procedures and protection scheme - Establish a third party ADR scheme. Ensure use of RICS logo is compliant - Set up succession plan if sole practitioner - Ensure CPD is logged Establish Staff training plans - Use the designation 'Regulated by RICS' on all practice materials. - Abide by the Rules of Conduct for Firms.

Answer 19

- Inform the RICS Inform my Clients Inform Insurers - Return Client Money - Ensure I have run-off cover for a minimum of 6 years - Retain Client files for minimum of 6 years

Answer 20

PII is primarily there to protect the Client against financial loss as a result of breach of professional duty of care the firm cant or won’t pay (such as neglect, errors or omissions') All policies must be underwritten by an approved insurer Must have appropriate level of indemnity cover governed by Firm’s turnover:

Answer 21

Minimum Level of indemnity required: £250,000

Answer 22

Minimum Level of indemnity required: £500,000

Answer 23

Minimum Level of indemnity required: £ 1 million

Answer 24

Must have adequate and appropriate run-off cover following cessation of trading Consumer claims – min of £1,000,000 of aggregate cover min 6 years. ------ Details set out in the RICS Professional Indemnity Insurance Requirements Version 9 2022

Answer 25

Commercial claims – must consider what is appropriate for a min 6 years Insurance Certificate to be sent to RICS on annual basis as part of Firms annual return to RICS Early notification to firms insurers when a potential claim arises ---- Details set out in the RICS Professional Indemnity Insurance Requirements Version 9 2022

Answer 26

My Firm does not advice others, however, has £10m cover.

Answer 27

It reflects the high value construction projects undertaken.

Answer 28

The policy covers claims that are made within the insurance period, regardless of when the negligent act occurred.

Answer 29

Mandatory requirement - Rules of Conduct for Firms Need RICS approved insurer (list on website) Need adequate and appropriate level for each instruction

Answer 30

Vary dependent on level of risk and type of projects, such as the use of MMC.

Answer 31

One of the Rules of Conduct. Protects against negligent behaviour. Protects clients, the firm and me.

Answer 32

RICS Runs a Members Support Service (MMS) for chartered members facing claims personnaly for work carried out by an employer who has gone into administration.

Answer 33

RICS Practice Information ‘Risk, Liability and Insurance, 1st edition 2021’ Always have a liability cap Make it clear that in a scenario when giving advice it can only be relied upon by the client and not third parties. Clearly stated in terms of business.

Answer 34

I would continue with normal procedures, inform the complaints handler. . Good take their advice but not essential for insurers to take over the complaint - RICS

Answer 35

Can base minimum PII cover on revenue forecasting

Answer 36

The purposes of having professional indemnity insurance are to: ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources, protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities

Answer 37

A liability cap limits the amount of damages that a client can claim even in the event of a negligent claim. This allows the firm to limit risk. Must be written in firms terms of business. Factors to weigh up include: Risk level, fee, PI premium, type of client. Liability cap could be set as multiple of a proposed fee, amount loaned or value of a construction contract. Liability cap is a contractual agreement between a client and a firm. The maximum amount that would be paid to the client in the event of a claim. However, PI limit – The maximum amount that the insurer would pay out for a claim. Best practice to agree a cap below the PI limit.

Answer 38

The new firm will be liable

Answer 39

When a duty of care is breached and this results in a loss. A negligence claim can arise.

Answer 40

- Understand the clients objectives - Confirm instructions in writing in TOE - Competently Undertake work in accordance with Professional standards and practice information - Agree liability cap below PI limit.

Answer 41

Current limitation periods for negligence are: Contract – 6 years from date of negligent act or breach of contract S. 14A also provides alternative limitation period of 3 years from the date of knowledge of the damage subject to a 15 year long stop from the negligent act. Tort – 6 years from the date the claimant suffered the loss Liability is 12 years as default when entering into deeds/warranties.

Answer 42

Minimum 6 years, then destroyed securely. PII claims can be made up to 15 years after work was undertaken.

Answer 43

A conflict of interest is where the interests of one client are incompatible with the interests of another, therefore influencing my ability to remain impartial. There are three types of conflict defined by the RICS professional statement: party conflict, own interest conflict and confidential information conflict. An example of a party conflict would be if I was instructed to dispose of one client’s property and also instructed to acquire that same property by another client. An example of an own interest conflict would be if I were instructed to value my mother’s home. An example of a confidential information conflict would be if one client’s requirements were to keep information regarding a property confidential, however another client’s instructions were to obtain said information.

Answer 44

Step 1 – Conflict Avoidance Consider where you can still remain impartial Step 2 – Written Advice to both parties Must disclose the nature of the conflict and circumstances surrounding the facts Ensure both parties can make an informed decision Written confirmation from both clients – Informed consent? Step 3 – Conflict Management Set up an information barrier

Answer 45

Working in house this is slightly different to consultancy. My firm was carrying out a development for a client on a design and build basis, during this period the client fell into a dispute with a contractor on another project over additional costs. The client asked me for advice and my opinion in relation to their other project and the contractor claims – even though my understanding was limited. At the same time, the client asked our firm to provide a tender to complete the site. I explained that it would not be possible for me to advice on their situation with their current contractor, as I am not their advisor. At the same time, they have asked my firm to provide a tender to complete the development. In any case it would be a conflict of interest to advise on their situation and prepare a tender for the same situation, albeit it is not appropriate for me to give advice.

Answer 46

I would consider how close the friendship was and whether I could remain impartial

Answer 47

RICS Conflict of Interest 2017 Dual Instruction – Where a consultant has a contractual relationship with both developer and client. Another example

Answer 48

Incremental Advice- Is the situation where a surveyor is acting for one party in a transaction and the other party in the transaction looks to appoint the surveyor to advise them on the same or another matter at the same time. RICS members must only provide incremental advice if consent is given, and information barrier put in place

Answer 49

Personal Interest/Own Interest Conflict – Tendering works to a business associated closely associated to a family member. Must not let this interfere with professional judgement. Full transparency is required, head of department must be made aware.

Answer 50

Provided in writing. Explaining the position is entirely transparent. Only seek informed consent if all relevant parties are satisfied.

Answer 51

Surveyors physically separated All information should be securely stored Keep clear audit trail of all written and oral communication

Answer 52

‘Information Barrier’ means: the physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information passing between them. To comply with the professional standard, to implement a information barrier as a conflict of interest mitigation measure you first require informed consent from all affected parties And then must retain a clear Audit Trail.

Answer 53

Provides a central place where information is stored such as client data and track client interactions which is then available to colleagues. A bespoke application of Microsoft Dynamics

Answer 54

Non-disclosure agreement. A contractual agreement binding me to keep the stated information confidential. Must be signed and lay out specifics.

Answer 55

Professional Standards document for property valuation. Sets out detailed guidelines and best practices to ensure consistency, transparency and professionalism in the valuation process. Widely used for property sales, purchases, mortgage valuations and finance reporting.

Answer 56

Collection of technical practice documents which covers all processes throughout the construction project life cycle. A project is currently underway to review and update the Black Book content with the aim of producing a comprehensive new edition, with improved presentation and navigation. Expected to publish in 2025, the new Black Book will comprise of an overarching global professional standard, accompanied by practical guidance material.

Answer 57

On a personal level this is something I have been working towards and wanting to achieve over the past 6 years. It would make me incredibly proud. On a general level becoming a Member of the RICS will give my board and external clients more confidence in the service I provide them. I will also further improve my knowledge, market advantage and network (130,000 professionals worldwide)

Answer 58

I have strong interest in property and the built environment Working as a Quantity Surveyor I enjoy the impact I can have throughout the design and construction of new homes, shaping communities and delivering good quality, efficient homes.

Answer 59

Still at the same firm. Hopefully a RICS Member In a more senior role, helping train new graduates to become professional and competent surveyors.

Answer 60

Don’t take any bribes. To report any knowledge of bribes. Treat others with respect. To ensure compliance with our gift & hospitality policy and ensure that the gifts register and updated appropriately.

Answer 61

One of the highlights was a project in Melbourn, South Cambridgeshire where we delivered 23 houses for private sale and S106 affordable, which was the first project I oversaw from start to finish as Project QS. Name another

Answer 62

A major challenge I have faced was when a groundworks subcontractor on one of our projects served our firm with a termination notice for alleged breach and abandoned their contract works, they simultaneously submitted a final account application proportion over £500,000 in additional preliminary costs, fluctuations and loss of profit. My firm had not committed a breach. The contractor then referred the dispute to adjudication, requesting confirmation we repudiated the contract and a true value assessment of their final account. This was extremely challenging as I had only recently taken over the project and only had a very short time to familiarise myself and prepare a witness statement. Their adjudication failed, the adjudicator concluded we was not in breach and awarded us costs.

Answer 63

Manage – have an open communication to address potential differences Potentially raise to HR is the situation is not manageable and is deteriorating quality of work

Answer 64

Ensure I stay up to date with economic news e.g interest rates and housebuilding policy. Ensure I carry out CPD Ensure I read the relevant professional standards and guidance notes for instruction

Answer 65

Negligence is failure to provide services with the standard of skill and care that would be expected from a reasonable body of the professional's peers Being wrong is open for interpretation and is often subject to opinion.

Answer 66

Duty of care exists for clients and third parties. If this is breached and there is a loss, they can claim damages. A surveyor could be negligent if they fail to understand the client’s instruction or fail to undertake work in accordance with RICS Standards & Guidance Notes. To avoid this, surveyors should sure they are sufficiently briefed and keep good records of all the work they carry out, ensuring they explain why they have made decisions when conducting their work.

Answer 67

During an ethical tender process I was invited to a races hospitality event… which I politely declined as this could impact my impartiality and be perceived as inappropriate even if it didn’t.

Answer 68

Top up hold the RICS Rules of Conduct. If a member was facing financial troubles, they could be more open to bribes or cut corners with the work they carry out. Put the profession into disrepute.

Answer 69

Findings: Lack of clarity, structure and purpose of RICS governance arrangements Inadequate cash flow management - The RICS’ extended its overdraft facility without informing the management board Levitt described a ‘toxic power struggle’ over governance structure of RICS Levitt called for a full independent review of the “purpose, governance and strategy” of RICS

Answer 70

Disappointed in the events. As members, we adhere to strict ethical standards, which the RICS didn’t do in this instance. However, I am pleased to see the outcome of the Bichard Review.

Answer 71

Following governance failings within RICS carried out by Levitt in 2021, RICS commissioned Lord Bichard to undertake a further review. Reported in June 2022 making 36 recommendations in 7 key areas: * Showing greater leadership on sustainability Empowering and enabling members through greater support for regional boards * Increased focus on diversity and inclusion - RICS Recruit Diversity, Equality and Inclusion and Sustainability panel chairs as new governance structure. * Improving public interest – created a public interest panel to advise governing council.

Answer 72

a Kath Fontana, the previous president, launched this review. The main aim is to review the RICS business plan: 1. how to maintain public and stakeholder trust 2. how to ensure RICS remains a sustainable body 3. How RICS can be aligned to further reinforce relevance to members.

Answer 73

The aggregate market value of the proposed development, assessed on the special assumption that the development is complete on the date of valuation in the market conditions prevailing on that date.

Answer 74

They set: Mandatory requirements that surveyors must follow, where the word ‘must’ is used. Best practice that surveyors should follow, where the word ‘should’ is used. In these instances, there may be alternative approaches or methods that may achieve a better overall outcome. This will be up to the individual surveyor to decide upon.

Answer 75

This is supplementary guidance to support surveyors in delivering specific services or working in specific areas of practice. The guidance is not mandatory and does not provide explicit recommendations. Practice Information can include ‘definitions, processes, toolkits, checklists, insights, research and technical information or advice’

Answer 76

If a surveyor faces a professional negligence claim or RICS regulatory or disciplinary proceedings, they will need to be able to evidence that they acted with reasonable competence. This can be through demonstrating compliance with RICS guidance in Professional Standards and Practice Information

Answer 77

I would refer to the RICS Regulation – Use of Social Media 2021. Also have reference to the RICS Code of Conduct

Answer 78

FRICS MRICS AssocRICS Trainee/Student

Answer 79

Five or more years as MCRIS Leadership Role Professional/Technical Achievement Rasing the profile of RICS

Answer 80

Justin Young

Answer 81

Tina Paillet FRICS

Answer 82

Each firm must nominate a responsible principle who makes sure the firm adheres to the RICS requirements.

Answer 83

Sole practitioners Directors Partners Board members

Answer 84

firm comply with RICS code of conduct firms systems and controls meet legal requirements ensuring that there are adequate processes and systems to record any failures to comply with RICS and/or legal requirements

Answer 85

the Firm provides surveying services to the public at least 50% of the Firm’s Principals are RICS Members.

Answer 86

Confidence - for clients as regulated firms are monitored by RICS. Professionalism - firms must provide clear, impartial, expert advice. Security - firms must have a recognised CHP and PII cover.

Answer 87

A Firm is eligible to register for regulation by RICS if: the Firm provides surveying services to the public and at least 25% of the Firm’s Principals are RICS Members

Answer 88

Comply with the Rules of Conduct and these Rules Act in accordance with the obligations set out in RICS’ Royal Charter and Bye-Laws Rules for the Regulation of Firms 2022 – Regulation

Answer 89

Not logging CPD

Answer 90

There is measurement in all things

Answer 91

RICS members and registered – subject to the guidelines

Answer 92

Standards and Regulation Board

Answer 93

In the first instance, I would have reference to the RICS Ethics decision tree If someone is in harm/affect to individuals health (Rule 5 of RICS)

Answer 94

First, try and return it to owner Send email for clear audit trail Store in a secure place – photo evidence Reference the RICS ethics decision tree

Answer 95

As the development partner of choice, recognised for a quality product, sustainable practices and personal ethos which sets us apart.

Answer 96

Stonebond are actively working with our clients to improve the sustainability of new homes, we have recently completed our first homes by timber frame construction. PV has been introduced to many schemes by regulation, however as a business we are looking to offer these to customers as an upgrade during construction, including battery storage. - Strong ESG Framework Reporting - Partnered with Community Wood Recycling to ensure all timber waste is recycled - Replaced all fleet vans with Hybrid vehicles. - Introduced an EV Company Car Scheme to look to reduce emissions

Answer 97

Stonebond has adopted a comprehensive set of measures outlined through the National TOMS Framework to report social value. This focuses on four key themes: local jobs and skills, supporting regional business, creating healthier communities, and protecting the environment.

Answer 98

1 - To ensure all we pay our supply chain on time, every time. Within 28 days and have signed up to the prompt payment code. To ensure our projects are carried out to high quality standards. 2 - To ensure high levels of end user satisfaction, which is currently at 100%. 3 - Our team work collaboratively and the firm encourages people fulfil their potential.

Answer 99

The Construction Journal on the payment terms in 3C v Lidl. REVIEW! BCIS Insight - Why are contractors in the construction industry vulnerable to insolvencies? REVIEW! The Construction Journal on Data centre growth seen in scaled schemes and retrofits. REVIEW!

Answer 100

I would consider the timing and proportionality Day after too soon. Wrong perception to my client.

Answer 101

Check company gift policy. Check reasonableness. Accept if reasonable.

Answer 102

Politely decline as they are not my client.

Answer 103

Politely decline as the instruction is not yet complete and this could impact my impartiality.

Answer 104

Would report it to my Head of Department and Company Secretary. The Head of Department would either donate the item to charity or distribute or raffle the item among a large group of employees. All Gifts received at Christmas which exceed the firms gift limit are raffled to staff for charity.

Answer 105

Self-regulation

Answer 106

Professional Standards (Recommended or Mandatory) (subject to Must or Should) Practice Information (not mandatory, doesn’t set requirements)

Answer 107

New Rules of Measurement (NRM) International Property Measurement Standards (IMPS)

Answer 108

Conflicts of Interest (2017) Surveying Safely (2018) Asbestos (2021) Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)

Answer 109

New Rules of Measurement (3rd edn 2021) Black Book contains a range of practice information. - Commercial Management of Construction Projects (2016) - Cost Reporting (2015) - Management of Risk (2016) - Termination of Contract, Corporate Recovery and Insolvency (2013)

Answer 110

Professional Standards Old Professorial Statements and Guidance notes have been simplified into the Professional Standards.

Answer 111

Code of Measuring Practice (2015)

Answer 112

Order of cost estimating and cost planning for capital building works It provides a framework for preparing cost plans and estimates, and is used to ensure accuracy and transparency in the cost-planning process

Answer 113

Detailed measurement for building works NRM2 is a document that provides a standardised method for measuring and describing building works

Answer 114

Order of cost estimating and cost planning for building maintenance works NRM3 is a set of documents that provide guidance on cost estimating and cost planning for building maintenance works

Answer 115

Stage 0: Strategic definition Stage 1: Preparation and briefing Stage 2: Concept design Stage 3: Spatial coordination Stage 4: Technical design Stage 5: Manufacturing and construction Stage 6: Handover Stage 7: Use

Answer 116

Method of incorporation granted by the Monarchy. Ensure RICS act in the public interest! References Bye Laws and Regulations

Answer 117

Royal Charter Bye Laws Regulation

Answer 118

- In 1881 the Royal Charter was granted by the Privy Council. - The RICS is Self Regulated and internally monitored (not monitored by government or external parties) - The Bye-Laws determine how the RICS is regulated - The Governing Council manage and agree the strategy for the RICS. The Regulatory Board, Audit Committee and Management Board are beneath the governing council and execute the strategy set by them. The Management Board comprises 17 professional groups, one being QS and Construction.

Answer 119

Grants awards and Royal Charter

Answer 120

Sets global strategy and ensuring RICS fulfils its Royal Charter obligations, Bye Laws And Regs Following the Bichard RICS Review, Governing Council has agreed a series of measures to create a clear and accountable governance structure.

Answer 121

They are responsible for exercising the standards and regulatory functions of the RICS. In June2023 all of the RICS Standards and Regulation board resigned – disagreement over structure of RICS RICS Governing Council planning to break up board and transfer responsibilities for technical standards to newly established knowledge and practice committee.

Answer 122

To direct RICS affairs under delegated authority from Governing Council. Comprised of non-members (independent), members of RICS, and RICS Executives

Answer 123

The Committee's role is to monitor and assess the effectiveness of the organization's financial reporting, internal controls, and risk management systems. They also reviews anti-fraud measures, Raising Concerns policies, and recommends the external auditor The Audit Committee operates independently of Governing Council, the Management Board and the Standards and Regulation Board. Each year it reports to Governing Council on how it has discharged its duties. Comprises member and non-members.

Answer 124

Regulates the RICS as a fair and independent judicial body consists of lay members and RICS members

Answer 125

They provide a framework within which members and firms can decide how to best meet the rules of conduct requirements.

Answer 126

Proportionality Accountability Consistency Targeting Transparency

Answer 127

Bye Laws and regulations apply to a member of firm and ensure regulatory best practice. Managed by Privy Council 10 Bye Laws inc: -Membership and registration –eligibility and procedure Contributions to funds e.g fees and subscriptions Conduct – members conduct themselves in a manner benefitting RICS Governing Council, Officers and Staff – Structure

Answer 128

Client confidentiality must be maintained for all client affairs.

Answer 129

Managed by Governing Council 10 RICS Regulations (same as bye laws) The regulations set out any additional definitions which shall apply to the bye laws. In the event of any variation in a Regulation the definition in the Regulation shall apply provided approved by Governing Council. Membership and registration –eligibility and procedure Contributions to funds e.g fees and subscriptions Conduct Governing Council, Officers and Staff

Answer 130

Complaint to RICS . Allegation by 3rd party Information established by RICS

Answer 131

Action by Head of Regulation (1) Regulatory Tribunal (2) Appeal Panel (3)

Answer 132

Professional behaviour CPD Protecting Clients Money.

Answer 133

Fixed penalty notice Regulatory Compliance Order - Written document outlining a firm must take certain actions and agreement to pay a fine Refer to Disciplinary Panel - Procedure used for more serious breaches of conduct. Who canIssue a regulator compliance order as above, Fine or Expulsion from RICS

Answer 134

Used for breaches of the Rules relating to the supply of information to the RICS by firms and members.

Answer 135

They place an obligation on a member to follow the CPD requirement.

Answer 136

On more serious breaches of conduct.

Answer 137

Both independent members and RICS members

Answer 138

Compliance Order Unlimited fine per breach Conditions on future RICS registration Expulsion Publication of results on website

Answer 139

Will hear a firm or member’s appeal. Review the decision. Can allow the appeal or vary the penalty imposed.

Answer 140

Yes my firm has a modern slavery policy the Organisation has a zero-tolerance approach to any form of modern slavery The Organisation considers its main exposure to the risk of slavery and human trafficking to exist in using suppliers, contractors and sub–contractors

Answer 141

Part M Building Regulations & Equality Act 2010

Answer 142

The Construction (Design and Management) Regulations 2015 (CDM 2015) are UK regulations aimed at improving health, safety, and welfare in construction projects by outlining the responsibilities of all parties involved. Designers are responsible to consider how the building can be constructed and maintained safely during design.

Answer 143

The Health and Safety at Work etc. Act 1974 (HSWA) is the primary legislation in the UK that sets out the framework for ensuring workplace health, safety, and welfare, placing duties on employers, employees, and others to do what is reasonably practicable to protect everyone’s health and safety.

Answer 144

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union (EU) that governs how personal data of individuals within the EU is collected, processed, and stored, aiming to enhance privacy rights and give individuals more control over their personal information. The GDPR applies to personal data, meaning any information through which someone can be directly or indirectly recognised, such as name, identification number, location data or online identifier. Significant fines are applicable if firms do not comply with these regulations.

Answer 145

Information is backed up securely on encrypted servers, Accessibility can be managed via online settings, Cloud systems are often cheaper than the costs of physically storing and managing files, It is convenient to send and share files online instead of mailing physical copies, Cloud systems are environmentally friendly, Multiple users can access the same documents, Documents and folder systems can be synchronised,

Answer 146

Controller --- The controller is the natural person or legal entity that determines the purposes and means of the processing of personal data (e.g., when processing an employee’s personal data, the employer is considered to be the controller). Processor --- A natural person or legal entity that processes personal data on behalf of the controller (e.g., a call centres acting on behalf of its client) is considered to be a processor. At times, a processor is also called a third party. Data Protection Officer (DPO) --- The Data Protection Officer is a leadership role required by EU GDPR. This role exists within companies that process the personal data of EU citizens. A DPO is responsible for overseeing the data protection approach, strategy, and its implementation.

Answer 147

The right to be informed The right of access The right of rectification The right to erasure The right to restrict processing The right to data portability The right to object Rights of automated decision making and profiling

Answer 148

Lawfulness, fairness and transparency. Purpose limitation. Data minimisation. Accuracy. Storage limitation. Integrity and confidentiality (security) Accountability.

Answer 149

- Raise awareness across your business - Audit all personal data - keep an up to date privacy notice - Review procedures supporting individuals’ rights Identify and document the legal basis for processing personal data under the GDPR Review they seek, obtain and record consent

Answer 150

Diversity in the workplace relates to the acceptance and inclusion of employees of all backgrounds. Ensuring diversity in the workplace is an important asset of an organisation as it acknowledges the individual strengths of each employee and the potential they bring.

Answer 151

Increased productivity: A diversity of talent will result in a broader range of skills amongst the team and result in increased productivity Increased creativity: Differing skill sets and perspectives within the team will increase the change of generating solutions to workplace problems Improved cultural awareness: A diverse range of cultures within the workplace allows companies to operate more effectively within a global market place. For example, having access to an employee who speaks Mandarin will be a great asset for a company operating in China A positive reputation: Companies that have a diverse workplace are often perceived as better employers. Potential employees want an employer who accepts and is tolerant of all backgrounds and who treats their employees fairly

Answer 152

Inclusion within the workplace is creating an environment and culture where all company employees feel like they belong in the organisation This results in every employee being comfortable to voice their opinions and that no one person feels excluded on the basis of their identity

Answer 153

Unconscious bias refers to the associations and assumptions that a person may have about someone solely because of their race, gender or disability These judgements are made without conscious awareness These automatic assumptions and stereotypes are a major contributor to a lack of workplace diversity

Answer 154

Recycling Use of Energy efficient lighting (motion sensors) Energy efficient equipment (LED lamps, energy efficient monitors) All fleet vans are to EV - EV salary sacrifise scheme introduced for employees Cycle to work scheme Secondary Glazing to Office Reduce printing by using cloud based systems

Answer 155

The Paris Agreement is a legally binding international treaty concerning climate change It was adopted by nearly every nation and came into affect in 2016 The goal of the Paris Agreement is to limit global warming to well below 2 degrees Celsius whilst targeting levels below 1.5 degrees Celsius when compared to pre-industrial levels The agreement commits all major emitting countries to cut their climate pollution

Answer 156

Use of recycled materials such as reclaimed timber, recycled tiles and plastics Ground Source Heat Pumps Air Source Heat Pumps Solar Panels Wind Turbines Solar Shading Rain water harvesting Green Roofs Heat Recovery

Answer 157

Carbon neutrality is to have a balance between the carbon emitted and the carbon absorbed from the atmosphere in carbon sinks This is an important measure of the impact that businesses and projects have on the environment and global warming To date no artificial carbon sinks are able to remove carbon from the atmosphere at the levels required to off set global warming

Answer 158

BREEAM buildings help clients to benefit from lowering the running costs of their built assets and minimising the impact on the environment through consideration at planning, design, construction and operation phases Other benefits include greater marketability to building tenants through lower running costs and creating desirable places to live and work A higher building value and positive PR message is also achieved through the increased sustainability of the building particularly when achieving BREEAM excellent and very good ratings

Answer 159

SKA ratings encouraging green codes of practice for commercial properties RICS has launched the Value the Planet campaign and committed to forming a climate change expert panel to implement the UN’s sustainable development goals. RICS has also launched a Responsible Business Report filled with solutions for companies to operate in a greener capacity, regardless of the firm’s size. This includes introducing higher recycling rates and reducing energy, transport and water use where possible.#

Answer 160

Print only when necessary Car sharing Use of energy efficient equipment Recycling Cycle to work Careful to minimise waste Avoid use of plastic bottles where possible Use of cloud based sharing systems

Answer 161

- Ethics are a set of morals - Rules of conduct are a framework that we work to.

Answer 162

- To qualify and equip their members to offer the highest standards of professional service. - To promote and enforce standards. - To lead solutions to the major challenges facing the built environment through professional expertise.

Answer 163

- I would verify the facts and confront him to remind him of duties as a member of the RICS. - I would inform the RICS specifying my relationship to the person and any corrective action which I believe he is committed to putting in place.

Answer 164

- Not every shortcoming will necessarily give rise to proceedings. - A formal investigation by the Head of Regulation of the RICS is the first step in the process. - The RICS can request information and/or visit and inspect to investigate compliance. - Members must cooperate fully with all enquiries.

Answer 165

- Someone complaining to the RICs - An Allegation by a Client or Third Party - Information received or established by the RICS

Answer 166

- Fixed Penalty (A Fine) - Consent Order - Disciplinary Panel

Answer 167

It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS Rules. It can require the member to take certain corrective actions, or restrain from taking certain actions for a specified period of time and may require the payment of a fine or costs.

Answer 168

- They are used for more serious breaches of conduct. - The panel will usually be held in public. - The burden of proof is on the RICS. - A balance of probabilities approach will be adopted.

Answer 169

- Gross, persistent or willful failure to comply with an RICS Rule of Conduct. - Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a clients money.

Answer 170

- Professional Indemnity - Employers Liability - Public Liability - Buildings Insurance for an office premises

Answer 171

An Annual Return, completed online It Includes - Type of Buisness and Staffing - Nature of Clients - Training Provision - Complaints handling procedures details and records - PI Insurance details - Whether the firm holds clients money Failure to do so leads to a fixed penalty.

Answer 172

Preserve the security of clients money which does not belong wholly to the company. Client money must be kept in a clearly identifiable client account, which has client in the name of the bank account. A principal overseas the client money accounting functions and a segregation of duties for employees must be established, the principal cannot override control measures. Clients must always have access to their funds, a client money ledger must be maintained. Accounting systems and data must be kept secure.

Answer 173

- General Accounts - Hold Money for More than one Client - Discrete Accounts - Reference a single named client.

Answer 174

- This case dates back to 2001 and highlights the importance of having run-off cover in place. - A Surveyor was sued for negligence by a former client. - Because the surveying firm was no longer in existence, therefore the individual surveyor was pursued for damages successfully. - This caused a big shock in the industry and highlighted the ned to ensure that run-off cover is in place for all previous employees.

Answer 175

- It is a consumer scheme designed to handle small issued that would be disproportionally expensive to take to court. - If the scheme judges in favour of the complainant, it is binding. - If it judges in favour of the firm, the complainant can escalate the matter to court. - RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication. - A complainant can choose to take a matter to court without utilising a redress scheme if they wish.

Answer 176

- I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing information as required. - As we do not provide advice to others, the process in my firm is different to a consultancy, complaints would usually relate to payment, quality or defect rectification requests. - I would highlight the importance of informing our professional indemnity provider, if required to do so under the policy, however this is outside of the control of my role at my firm.

Answer 177

- The RICS provides a model form - The Process must include a redress mechanism - Details of the policy should be issued to a client within the terms of business. - It must be clear, quick, transparent and impartial and free of charge within the first stage. - Name and contact details of the investigating person must be stated. - The complaint must be investigated within 28 days. - All complaints, their progress and outcomes must be recorded. - We must note the need to advice PI insurers of a complaint immediately. The Process must have two stages as a minimum - Stage 1 - is where there needs to be consideration of the complaint by senior member of the firm or a complaints handling officer. - Stage 2 - if the issue is not resolved, the complaint is referred to an independent third party with authority to award redress.

Answer 178

A construction project is required to submit an F10 if it meets any of the following criteria: - The project is expected to last longer than 30 working days - The project is expected to exceed 500 workdays between individual workers - More than 20 workers will be working on the project at any point

Answer 179

as soon as is practicable before the construction phase begins

Answer 180

Imprisonment for a term not exceeding two years, or a fine, or both.

Answer 181

For the purpose of Dual Authorisation

Answer 182

Members must undertake and record appropriate lifelong training On required from the RICS they must provide evidence that they carried out the CPD to maintain and improve their level of professional competence.

Answer 183

I am subscribed with a number of specialist Construction and Development Law firms and regularly receive updates and invites to webinars on Various construction law topics including Adjudication and new Case Law. I also read the RICS Construction Journal, with particular interest on the recent article on 3C v Lidl. I am also subscribed for updates from BCIS and I keep up to date on the RICS all of profession news letter and website updates.

Answer 184

The Future Homes Standard is a set of regulations that will make new homes in England more energy efficient and reduce their carbon emissions. It is expected to be implemented in 2025 will see new homes deliver 75% less carbon emissions than homes built under the current Building Regulations.

Answer 185

The Future Home standards will alter the construction materials and specifications typically used to achieve the enhanced efficiency. The FHS aims to decarbonise new homes by focusing on improving heating, hot water systems, and reducing heat waste. This will be achieved by replacing current technologies with low-carbon alternatives. For example, very high quality building fabric (structural materials, insulation etc.), triple glazing standards and low-carbon heating through heat pumps will replace their older, less efficient counterparts, PV & Waste water heat recovery. Low Air Levels of Permeability

Answer 186

I meet with my manager twice a year to review my career development plan and objectives. I use this to build a CPD strategy, I subscribe to events and research certain areas. I am currently studying a Masters Degree in Construction Law and Dispute Resolution at Kings College London, which has already significantly widened my knowledge.

Answer 187

- The professional is protected from financial losses - The firm does not have to meet the claim from their own assets or resources

Answer 188

They are bale to recover their financial losses.

Answer 189

Cover upto £500k - upto 2.5% or £10,000 Max Cover Over £500k - upto 2.5%

Answer 190

- The Policy cover must be on an 'Each and Every' Claim Basis - The RICS sets out minimum levels of indemnity based on turnover - The RICS sets out maximum uninsured excess dependant on indemnity limit. - Run Off Cover must be in place for at least 6 years. - The policy should include cover for past and present employees, directors and partners.

Answer 191

- Keep full and detailed records of meetings and conversations - Record recommendations and advice given - Use proper letters of engagement, scope o services and terms of engagement. - Don't advice on specialism outside your field of experience. - Use RICS guideline. - Avoid poor management and excessive workloads.

Answer 192

For you to notify them and comply with any conditions & procedures set out in the insurance policy.

Answer 193

An estimate that is incorrect in itself will not provide the client with a sign of redress. The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to lack of reasonable skill and care. It could have been incorrect due to reasons outside the control, example - market conditions or an item referred to in their exclusions.

Answer 194

- Base your appointment on reasonable skill and care as this is less onerous than fitness for purpose. - Include a liability limitation clause beneath your PI cover limit. - Run Off Cover must be in place. - Sign agreements under hand as this will only have 6 year liability limitation rather than a deed.

Answer 195

- A conflict of interest is where someone in a position of trust has compelling personal or professional interests making it difficult for them to fulfil their duties impartially. - An existing relationship will result in reduced impartiality and Chattered surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occurs.

Answer 196

- I could put in place procedures to ensure exclusivity of staff. - This would avoid any cross over of information between the departments. - I would also ensure that there are separate communication lines into the client. - Separate geographical locations and secure office and data storage would also need to be provided. - Staff could also sign up to confidentiality or non-disclosure agreements. - I would also need to monitor the potential conflict and keep the client updated on progress.

Answer 197

- I would check the clients understanding around the conflict of interest. - I would then make the client aware of the potential for reduced impartiality. - If they were still insistent on the appointment, I would seek a letter of instruction from the client to continue. - Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.

Answer 198

- The only circumstance in which it is OK to make a facilitation payment is when you are under duress. - For example if there is a real and present risk or danger to "life, limb or liberty". - If you or your companions are under immediate physical threat. - You should put safety first, make the payment and report the matter immediately. - Or as soon as is practicable to your manager or your ethics compliance contact.

Answer 199

- In the first instance I would declare this hospitality on my companies gifts and hospitality register. - Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out. - Since they won't be present, this will not be a genuine business event. - Consequently, I would decline this hospitality at the Project Team's expense.

Answer 200

- Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act. - If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate. - However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement.

Answer 201

- Management accounts are for the internal use of the management team. - Financial accounts are the company accounts that are required by UK law.

Answer 202

A profit and loss account shows the incomes and expenditures of a company and the resulting profit or loss. The balance sheet shows what a company owns (it's assets) and what it owes (it's liabilities) at a given point in time.

Answer 203

- It is the summary of the actual or anticipated ingoing and outgoing of cash in a firm over the accounting period. - It measures the short-term ability of a firm to pay off its bills.

Answer 204

Tax relief on certain items purchased for the business for example tools and equipment.

Answer 205

Funds that are set aside for future expense or long-term debt.

Answer 206

An inability to pay debts where liabilities exceed assets.

Answer 207

An agency that incorporates and dissolves limited companies within the United Kingdom

Answer 208

Liquidity rations measure the ability of a company to pay off its current liabilities by converting its current assets into cash. Liquidity ratio calculation = current assets / current liabilities. - The ratio is usually around 1.5 but it depends on the sector of activity. - For example house builders often operate on a liquidity ratio over 3 because they retain high value assets in the form of unsold houses. - A liquidity ratio of less than 0.75 can be an early indicator of insolvency.

Answer 209

◦ To monitor and measure profit (or loss). ◦ To compare against past performance and against company budgets. ◦ For valuation purposes and to compare against competitors. ◦ To assist in forecasting with future performance. ◦ To calculate taxation. To show the position of Sales Income Minus cost.

Answer 210

On a Balance Sheet, the Creditors balance are firms or individuals owed money by the company. For example - if you have provided services to a client and they owe payment of your fees, you become a creditor to that client. On a Balance Sheet, the Debtors balance are firms or individuals which owe the company money. For example - if you have used a sub-consultant and still owe them payment of their fees then you become a debtor of the sub-consultant.

Answer 211

- The accounts prepared by a company for internal management use. - Accounts prepared for a lender, such as a bank to evaluate how you will be able to repay the funding - These accounts are not be audited externally.

Answer 212

Forecasts of income and expenditure that can be used as an analytical tool to identify potential shortfalls and surpluses.

Answer 213

- Profitability ratios measure the performance of a company in generating its profits. - The trading profit margin ratio = Turnover - (cost of sales/turnover) - Low Margins maybe due to growth strategy from the company and do not always result from bad management.

Answer 214

- Measure the financial structure of the company which are crucial indicators for the external suppliers of debt and equity as well as for internal management. ◦ They help to measure solvency. ◦ Highly geared companies rely mainly on borrowing. ◦ The payment of interest reduces the profit.

Answer 215

◦ To aid in preparing their own business accounts. ◦ For assessing the financial strength of contractors and those tendering for contracts. ◦ For assessing competition.

Answer 216

A cashflow forecast summarises the amount of cash entering and leaving a company or project. On construction projects, cashflows typically show an S curve.

Answer 217

S Curve, is a term which refers to the standard shape of cashflow expenditure when presented graphically for construction projects. The rate of expenditure starts slow during the preparatory works The rate of expenditure typically increases significantly during the middle of the program And slows down towards the end to reflect the reduced expenditure for finishing works compared to structural and M&E in middle.

Answer 218

- To track, analyse and access business accounts and performance (during due diligence and the course of the works) - For assessing the financial strength of contractors. - To compare actual progress of the work against pre-contract predictions. - For preparing future expenditure forecasts (reviewing old cashflows)

Answer 219

◦ A separate account owned by a third party, held on behalf of two other parties. ◦ A bank account with defined contractual conditions for the release of funds. ◦ They can be used as a project bank account. ◦ Mechanisms must be in place for the release of funds such as payment certificates.

Answer 220

To assess the financial strength of contractors at Pre-Qualification Stage and tender stages.

Answer 221

◦ The client's accountants will carry out the detailed analysis but I can look at the warning signs by calculating ratios such as liquidity ratios, profitability ratios and gearing ratios. ◦ I should always calculate the ratios myself as those included in the company accounts may have been manipulated.

Answer 222

◦ I use the Experian website to which my company subscribes to access ratings for all companies. ◦ I considered both the group/parent accounts and the company accounts. ◦ If the credit rating is low, I pass on all the information to my client's accountants for them to analyse further.

Answer 223

- A low credit rating. - A liquidity ratio below 0.75. - A falling working capital suggests the company has taken on more contracts than it can finance. - A low return on equity. - A highly geared company that is heavily reliant on loans. - A falling cashflow statement.

Answer 224

◦ There may be an increased risk of the contractor not performing satisfactorily. ◦ It could present increased risk of the contractor failing to deploy sufficient resources and materials to the project. ◦ It could increase the risk of the contractor's insolvency.

Answer 225

- I would explore the option of requesting a performance bond that my client could call on if they Main Contractor failed to perform. - I would also review the tender submission to ensure this is not excessively front loaded. - When reviewing interim valuations, I would ensure that these are accurate and not over claimed. - A project bank account may also provide an additional level of assurance and should be considered.

Answer 226

- A SWOT analysis can be used to analyse the internal strengths and weaknesses and external threats and opportunities of a company. - This is carried out with a view to exploiting strengths and opportunities and mitigating weaknesses and threats.

Answer 227

This is a structured method of analysing the key factors influencing market conditions. These factors are: ◦ Political influences. ◦ Economical influences. ◦ Socio-demographical influences. ◦ Technological influences. ◦ Environmental influences.

Answer 228

◦ They undertake an analysis of the market and industry to identify business opportunities and critical success factors. ◦ Companies should focus their resources in developing their competences in the critical success factors. ◦ This then leads to the development of goals and objectives with their associated strategies and actions.

Answer 229

◦ A review of current workload, resources & fees. ◦ It involves the identification of key client personnel who have influence over job opportunities and identification of who the firm should look to build relationships with. ◦ A review of pipeline opportunities with that client is also undertaken.

Answer 230

◦ A formal statement of the business's goals with reasons why they are thought to be attainable and the plan for reaching the goals. ◦ The business plan also provides employers with a common ground to focus upon.

Answer 231

At a high level but I would seek further advice from one of our internal Chartered Accountants if necessary.

Answer 232

◦ To be the development partner of choice, creating high quality tenure blind homes. ◦ Strong Turnover growth following extensive investment in new divisions over recent years. ◦ To be developing 1200 homes per annum within the next 5 years. ◦ Expansion into new London Regeneration projects within the next 5 years. ◦ See Turnover grow to £400m in the next 5 years time.

Answer 233

◦ Maintain excellence in my work. ◦ Do my best to ensure high levels of construction quality. ◦ Sharing knowledge within integrated teams. ◦ Keeping up with new technologies. ◦ Upskilling new and junior team members.

Answer 234

◦ To support with gaining additional investment, funding or finance. ◦ To ensure the business scales and adapts to changing market conditions , such as sales demand and affordability, this is essential in housebuilding. ◦ To focus on key priorities. ◦ To review and update budgeting.

Answer 235

Where information is provided but is subject to confidence and not shared without permission.

Answer 236

◦ Meta Data is information about a specific piece of data. ◦ For example when sharing a cost planning document, the Meta Data associated with this could consist of information about the author, the file size, the date the document was created and keywords to describe the document. ◦ We must ensure that this Meta Data is afforded the same level of care as all other confidential data. ◦ In a scenario where we are sharing a document or removing confidential components of a document we should ensure that any confidential meta data is not shared inadvertently.

Answer 237

◦ This is the right to control the use and ownership of original works. ◦ Work generally created by an employee usually belongs to their employer unless copyrights are put in place. ◦ It is common within construction for a client to be granted license for use and reproduction of copyright material which should be clearly defined. ◦ This could be the right to use a particular design by a subcontracting specialist who retains control of the original copyright.

Answer 238

◦ This is the primary piece of UK legislation that controls the access to official information. ◦ The act permits the public right of access to information held by public authorities. ◦ Information must also be published through the public authorities publication scheme. ◦ The act covers all information held and not just information since the act came into effect.

Answer 239

◦ Information is backed up securely on encrypted servers. ◦ Accessibility can be managed via online settings. ◦ Cloud systems are often cheaper than the costs of physically storing and managing files. ◦ It is convenient to send and share files online instead of mailing physical copies. ◦ Cloud systems are environmentally friendly. ◦ Multiple users can access the same documents. ◦ Documents and folder systems can be synchronised.

Answer 240

Controller - The controller is the natural person or legal entity that determines the purposes and means of the processing of personal data for example when processing an employee's personal data, the employer is considered to be the controller. Processor - A natural person or legal entity that processes personal data on behalf of the controller for example a call centre acting on behalf of its client is considered to be a processor. Data Protection Officer (DPO) - The Data Protection Officer is a leadership role required by EU GDPR. This role exists within companies that process the personal data of EU citizens. A DPO is responsible for overseeing the data protection approach, strategy, and its implementation.

Answer 241

◦ The right to be informed. ◦ The right of access. ◦ The right of rectification. ◦ The right to erasure. ◦ The right to restrict processing. ◦ The right to data portability. ◦ The right to object. ◦ Rights of automated decision making and profiling.

Answer 242

The act replaces previous 1998 Legislation and manages how personal data is processed by organisations and the government. It is the UK legislation for the implementation of the EU General Data Protection Regulations (GDPR).

Answer 243

The act ensures that data is:- ◦ Used fairly, lawfully and transparently. ◦ Used in a way that is adequate, relevant and limited to only the purpose it is intended. ◦ Is retained for no longer than is necessary. ◦ Processed securely including the protection against unlawful use, loss or destruction.

Answer 244

◦ People have the right to:- ◦ To be informed about how their data is being used. ◦ The right to access their data. ◦ The right to have incorrect information updated. ◦ To have their data erased. ◦ To stop or restrict the processing of their data. ◦ The right of portability. ◦ To object to the use of their data.

Answer 245

◦ Cost Data highly sensative to my Client (the firm) ◦ Access Controlled servers and drives ◦ If signed up to an NDA with a client I ensure complete confidentiality and am not able to talk about these projects with colleagues who are not party to the project. ◦ I am always sure to lock my computer when away from my desk and comply with my firms IT security policies for example attendance at Cyber security courses and regularly updating my passwords. ◦ If I am sharing or processing information not available in the public domain from a previous project 1 always obtain the clients written permission to do so. ◦ We do not store hard copies of information.

Answer 246

◦ They should only retain data they need to perform their day-to-day operations. ◦ If they are retaining someone's data they should ensure the person is kept informed and advised on why they have it. ◦ They should hold the data securely. ◦ They should also keep the information up to date and delete information they no longer need.

Answer 247

◦ Plan, manage, monitor and coordinate health and safety (pre-construction). ◦ Identify, eliminate or control foreseeable risks. ◦ Ensure Client and designers are aware of their duties and advise the Client on bringing together the pre-construction information. ◦ Provide relevant information to other duty holders. ◦ Liaise with Principal Contractor in the planning management, monitoring and coordination of the construction phase.

Answer 248

◦ Appoint competent duty holders. ◦ Allow sufficient time and resources. ◦ Prepare and provide relevant information to duty holders. ◦ Ensure that the Principal Designer and Contractor carry out their duties. ◦ Ensure welfare facilities.

Answer 249

Nearly everyone is a Duty Holder - Commercial Clients - Domestic Clients - Designers - Principal Designers - Principal Contractors - Contractors - Workers

Answer 250

◦ There is more focus on clients to put in place arrangements to ensure health and safety. ◦ Clients can no longer assign their legal responsibilities to agents. ◦ There must be a declaration of how long contactors will be given to plan and prepare for construction work. * Clients are deemed to assume the role of the principal contractor for any period during which other appointments aren't made.

Answer 251

◦ A project description. ◦ The Client's considerations and management requirements for hoarding, welfare facilities, traffic restrictions and permits to work. ◦ Environmental restrictions and existing on-site risks such as site restrictions, previous H&S files, ground conditions, existing services, asbestos surveys, contamination and unsafe structures. ◦ Significant design and construction hazards such as design risks assessments, suggested method statements, arrangement for coordination post contract design work and changes. ◦ Health and Safety File requirements

Answer 252

◦ A Project description. ◦ Processes for management of the works including site inductions, training, communication, welfare facilities, design coordination, site rules and emergency procedures. ◦ Arrangements for controlling significant site risks such as handling of deliveries, working at height, deep excavations, preventing falls, site segregation, maintenance of plant and equipment, removal of asbestos, reducing noise and vibrations and manual handling.

Answer 253

H&S information that is useful for the planning of future works or maintenance. This comprises:- ◦ A brief description of the work carried out. ◦ Any residual hazards which remain and how they have been dealt with for example surveys or other information concerning asbestos, contaminated land, water bearing strata and buried services. ◦ Key structural principles for example, bracing and sources of substantial stored energy. ◦ Hazardous materials used for example lead paint, pesticides, special coatings which should not be burnt off. ◦ The nature and location of significant services, including underground cables, gas supply equipment and fire-fighting services.

Answer 254

◦ The F10 form is used to notify the HSE of the project. ◦It should contain:- ◦ The address of the construction site. ◦ The name of the local authority where the site is located. ◦ A brief description of the project and the construction work it entails. ◦ Contact details for the client and Principal Contractor. ◦ It should give an indication of the time allowed by the client for the PC to plan and prepare for the construction work ◦ It should provide a planned date for the start of work, duration of construction phase and give a number of people at work on site at any one time.

Answer 255

Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR) requires the responsible person' to notify any death, reportable injury, diseases or dangerous occurrence to the HSE. The responsible person is the employer or, for the self employed, the contractor or principal contractor.

Answer 256

◦ Death and major injuries such as - loss of consciousness or loss of a limb. ◦ Occupational diseases. ◦ Dangerous occurrences for example explosions, hazardous substances, structural collapse or collision etc. * Gas incidents.

Answer 257

Control of Substances Hazardous to Health The regulations aim to avoid exposure to hazardous substances, or if not possible, to control exposure by measures that are proportionate to the health risk.

Answer 258

Construction Skills Certification Scheme

Answer 259

◦ Working to agreed risk assessments. ◦ Wearing personal protective equipment on site. ◦ Attending Site Inductions. ◦ Reporting visible risks for example - traffic management issues.

Answer 260

◦ A risk assessment is simply a careful examination of what, in your work, could cause harm to people, so that you can weigh up whether you have taken sufficient precautions or should do more to prevent harm. ◦ The law does not expect you to eliminate all risk, but you are required to protect people as far as "reasonably practicable".

Answer 261

Step 1 - Identify the hazards. Step 2 - Decide who might be harmed and how. Step 3 - Evaluate the risks and decide on precautions. Step 4 - Record your findings and implement them. Step 5 - Review your assessment and update if necessary.

Answer 262

◦ To prevent work-related death, injury and ill-health. ◦ Provide support to the public and businesses with guidance, statistics and research.

Answer 263

◦ Inspectors can visit site without notice, talk to workers, take pictures and samples. ◦ Most inspections are planned to encourage good H&S practices. ◦ Some inspections are to respond to a complaint or follow-up an investigation. ◦ To impose sanctions including stop and improvement orders. ◦ To issue written or verbal information and advice.

Answer 264

◦ Prevent work-related injuries or illnesses. ◦ Prevent damage to property and/ or equipment from our activities. ◦ Prevent adverse impacts to the environment from our ongoing projects or operations. ◦ At staff level:- ◦ Take responsibility for safety and comply with safe systems of work. ◦ Act responsively, report incidents and near misses. ◦ Regular training refresher courses. ◦ Risk assessments are compulsory for all projects with bi-monthly updates as a minimum. ◦ CSCS cards are mandatory.

Answer 265

The RICS proffesional standard on personal safety at work. The document covers:- 1) General Statement - Employers/Employees have a duty of care under law of tort towards those who may be affected by their actions. 2) Safety of Employees - actions that must be taken by employers. Special duty of care towards young trainees. 3) Workplace - Fire & First Aid provisions. 4) Hazards and Risk Assessment requirements. 5) Visiting Sites - PPE, Lone working, Access provisions. 6) During Site Visits - Key hazards assessments including structures, roofs and contamination. 7) Safety of you and others - Everyone is to take responsibility of their own health & safety. 8) Legal Duties - Criminal Liability and CDM guidance.

Answer 266

There are various ways to prevent accidents on construction sites:- 1) Eliminate the risk of accidents occurring at the source for example ... assembly on the ground instead of working at height. 2) Planning & programming of works. 3) Allowing sufficient time for the works to be constructed effectively. 4) Carrying out risk assessments, method statements & educating workers. 5) Training inductions & CSCS qualifications. 6) Ensuring safe working sites and access & egress points.

Answer 267

Falls from height.

Answer 268

CCS was set up in 1997 & is responsible for improving the image of construction. It monitors all registered sites and ensures best practices are carried out in particular on items such as engaging with local communities and site cleanliness.

Answer 269

It is the primary piece of legislation governing H&S in the United Kingdom. It places a statutory duty on all employers to provide and maintain equipment and systems of works that are safe and without risk to the health and safety of employees, or others who may be affected by their undertaking. The Act aims to: ◦ Secure the health, safety and welfare of people at work. ◦ Protect others against risks to health and safety arising from work activities. ◦ Control dangerous substances. ◦ Control of emissions into the atmosphere. Employers with 5 or more employees must have written health and safety documents detailing the organisations health and safety structure.

Answer 270

Magistrates' court - A fine of up to £20,000 or imprisonment for up to 6 months Crown Court - An unlimited fine or imprisonment for up to 2 years Very serious offenses - Up to five years in prison Blatant disregard for employee welfare - Unlimited fines

Answer 271

◦ In the first instance I undertake detailed research on the matters under consideration and form an opinion. ◦ I will then look to compile supporting documentation as substantiation to any claims. ◦ Following these initial steps I arrange an internal meeting with the client and project team to discuss negotiable items which can be conceded in addition to the non-negotiable items. ◦ If needed I will prepare a SWOT analysis to support decision making ◦ During negotiations I try to develop a partnering approach rather than an adversarial one. ◦ My attitude and ethos is that the project must be the winner not individuals.

Answer 272

◦ Preparation and collating supporting documentation. ◦ Each party should get the chance to present their case in a calm forum. ◦ Identification of bargaining positions and politely making proposals. ◦ A swift confirmation in writing on what was agreed at the meeting and confirmation on what items still need to be actioned and by whom. ◦ A confirmation of next steps to bring the negotiations to a close.

Answer 273

◦ Both parties should be allowed to discuss their position on the items being discussed and their reasoning for their position. ◦ All parties should look to maintain professionalism, remain calm, acting with respect and courtesy at all times. ◦ The meeting should take place ideally in a calm setting. ◦ Both parties should honour the agreements reached for the benefit of the project. ◦ Once the negotiation items are agreed they should be put in writing as soon as possible.

Answer 274

- Preparation - Exchanging Information - Bargaining - Finalising the Agreement Consider the best interests of the project.

Answer 275

Justify the Position - Individuals should come to negotiations ready to back up their position, including research and a commitment to reaching a deal. Consider the Other Side - Remember that the other side has things it wants out of the deal, too. Individuals should determine what they can offer to help them reach their goals without giving away more than they want to or can afford. Keep Emotions in Check - It's easy to get caught up in the moment and be swayed by personal feelings, especially anger and frustration. However, emotions cause negotiators to lose sight of the goal. Know When to Walk Away - Know what to accept as a minimum and when to walk away. If both sides are hopelessly dug in, pausing negotiations gives everyone involved a chance to regroup and possibly return to the table with a fresh perspective.

Answer 276

Dealing with the conflicted groundworks account at Harlow with contested variations of over £340,000

Answer 277

◦ I have been responsible for providing a number of professional presentations. ◦ I have held site meetings with multiple subcontractors and clients to discuss various issues & presented reports within the meetings. ◦ I also use my oral communication and written communication skills when dealing with day-to-day issues on the phone, within meetings and on video call.

Answer 278

◦ E-mails carry the same legal value as a letter and contracts can be inadvertently created by e-mail. ◦ We must therefore be very careful with regards to the content and form of the e-mail communication. ◦ When issuing e-mails it is easy to become complacent as they are perceived as being informal. ◦ I am always sure to communicate in a professional manner even if other parties do not. ◦ I always make sure that I select the correct recipient and do not release someone's e-mail addresses without their consent. has context menu

Answer 279

◦ Verbal either in person or via telephone. ◦ Non-verbal such as body language, eye contact, gestures and appearance. ◦ Written for example e-mails and letters. ◦ Graphical information such as charts, diagrams and tables. ◦ Presentations. ◦ Video conference.

Answer 280

◦ Verbal / mono-tone delivery or unclear delivery of speech. ◦ The over use of technical language that may not be understood by lay clients. ◦ Emotionally charged and heated conversations when parties are unable to listen. ◦ International language barriers. ◦ Disinterest and boredom. ◦ Prejudice. ◦ Bias. ◦ Interruptions and distractions. ◦ Background noise pollution. ◦ Poor call quality. ◦ Poorly maintained and adversarial relationships.

Answer 281

◦ Mediation. ◦ Conciliation. ◦ Negotiation.

Answer 282

◦ Arbitration. ◦ Litigation. ◦ Adjudication.

Answer 283

◦ The cost of dispute resolution in proportion to the claim being sought. ◦ The timescales involved. ◦ The impact on business relationships and reputation.

Answer 284

- The dispute resolution process is similar to mediation and relies on an independent third party to aid reaching an agreement. - The conciliator has no authority to seek evidence or call witnesses. - Conciliators are not able to make binding decisions. - The conciliators' role is to act primarily as the messenger and to encourage diplomacy.

Answer 285

◦ This is an alternative form of dispute resolution and relies on bringing in an impartial third party to mediate and guide a decision. ◦ The mediator tries to encourage a coming together of parties in order to facilitate a decision as opposed to acting only as a messenger which is the key differentiator between mediation and conciliation. ◦ Mediation encourages the coming together of parties and reaching an agreement.

Answer 286

Actions and processes taken to resolve contractual disagreements between parties.

Answer 287

Negotiation is where the parties reach an agreement through an informal private or facilitated discussion. Both parties will agree to settle the dispute either at a high level or in detail and agree to be bound by this settlement.

Answer 288

I carried out extensive investigation into the items being claimed for, including detailed review of the cost breakdowns provided, correspondence with my predecessor, design changes and reviewed relevant contract to determine my assessment on what was due.

Answer 289

◦ Both parties are satisfied with the outcome and feel that a fair and reasonable compromise was reached. ◦ A partnering approach is adopted with both parties feeling as though their long-term relationships and reputations have been maintained.

Answer 290

◦ Adjudication is a statutory form of dispute resolution procedure available in the United Kingdom. ◦ It is a relatively simple and efficient method of resolving disputes without engaging in lengthy and expensive court proceedings. ◦ Adjudication relies on an independent third party who considers the claims of both parties. ◦ A binding decision is made by the adjudicator which can be appealed either through litigation or arbitration. ◦ It has the advantage of being time sensitive with a decision being made within 28 days.

Answer 291

Housing grants, Construction and Regeneration Act 1996 (Construction Act).

Answer 292

It applies to all construction contracts entered into after the Act commenced within England, Scotland and Wales.

Answer 293

Parties still have the statutory right to adjudication assuming the contract qualifies under the construction act.

Answer 294

◦ Arbitration is a procedure for the resolution of disputes which is under the control of the parties. ◦ Certain conditions must be met for example a genuine dispute or difference between the parties must have occurred with an award being capable of enforcement. ◦ A binding agreement must be reached to escalate the matter to arbitration. ◦ The proceedings are undertaken in a private setting meaning the reputations of both parties can be preserved to an extent.

Answer 295

Arbitration ◦ Arbitration is governed by the Arbitration Act 1996. ◦ In order to arbitrate there must be an agreement to enter into arbitration by both parties. ◦ Parties have a wide degree of discretion as to how the proceedings are conducted. ◦ Procedures are similar to litigation with formal submissions by both parties, expert evidence, hearings and a decision by the arbitrator. ◦ It is a private process. Litigation ◦ Litigation differs in that proceedings are conducted in court. ◦ It is a public process that follows civil procedure rules. ◦ Despite having high costs the process can deal with multi-party disputes and civil procedure rules which aim for accessibility, speed and efficiency.

Answer 296

COP is the Conference of the Parties and is attended by countries that signed the United Nations Framework Convention on Climate Change (UNFCCC) - a treaty agreed in 1994. The 2021 meeting was the 26th meeting which is why its called COP26.

Answer 297

Held in Dubai With over 40% of carbon emissions coming from the built environment, countries from all over the world have come together to join the “Buildings Breakthrough” initiative, which was officially launched at COP28 Representing one-third of the world’s population and two-thirds of the world’s GDP, the 28 countries that have joined this initiative include China, the United States, Canada, the UK, France, The Netherlands, Germany, Kenya and Morocco. They have committed to work together to ensure that “near-zero emission and resilient buildings become the new normal by 2030”. Participating for the second time as a UN-accredited observer organisation, we will be representing the profession and our members, highlighting their contribution to positive change. Along with this, a crucial goal for us is to strengthen our relationships with decision makers and government representatives, advocating the importance of global harmonisation of the measurement of whole life carbon.

Answer 298

Sustainability consists of fulfilling the needs of current generations without compromising the needs of future generations, while ensuring a balance between economic growth, environmental care and social well-being.

Answer 299

Social - Building healthy communities with sufficient numbers and range of buildings. Economical - Build strong, responsive, competitive economies ensuring sufficient land and right types. Environmental: - Contributing towards the protection and enhancement of our natural, built and historic environment.

Answer 300

◦ Creative processes should be used not just scrutiny. ◦ Proactive steps should be taken to achieve sustainable development. ◦ Secure the development of high quality built assets. ◦ Account for the character of the surrounding area. ◦ Support a climate-resilient and low-carbon economy. ◦ Conserve & enhance natural environment and reduce pollution. ◦ Encourage use of brownfield sites. ◦ Conserve heritage. ◦ Maximise use of public transport, cycling and walking. ◦ Support health, social and cultural well-being.

Answer 301

◦ Risks of Water Pollution. ◦ Air and Noise Pollution. ◦ High Energy Consumption and carbon emissions. ◦ Risk of land contamination. ◦ Damage to wild habitats. ◦ High Wastage production into landfill. ◦ Release of dangerous gases and chemicals.

Answer 302

◦ Agricultural Land Act - Enables land to be acquired for a particular purpose for example to control pests and weeds, for use as woodlands or to support agricultural activities. ◦ Building Act - This is the primary piece of UK Legislation that enables the Building Regulations to be enforced. This is to assist in the conservation of fuel and power, to prevent waste, misuse or contamination of water and to ensure those in and around buildings are kept safe. ◦ Clean Air Act - This legislation provides local authorities within England to introduce measures in order to control air pollution. ◦ Climate Change Act - This is a legally binding framework to tackle climate change. It imposed targets to cut greenhouse emissions compared with 1990 levels 34% by 2020 and 80% by 2050.

Answer 303

◦ Building Regulations Part L - Conservation of Fuel and Power. ◦ Energy Performance of Buildings Regulations. ◦ Requires that EPC's are produced for dwellings and non-dwellings. ◦ Quantifies energy efficiency of buildings. ◦ Required when buildings are built, sold or rented. ◦ Commercial buildings over 500 sqm. and frequented by the public need to display a display energy certificate (DEC) based on actual energy used.

Answer 304

◦ Landfill Tax which is an environmental tax payable in addition to landfill rates charged by private disposal companies. - Plastic Packaging Tax ◦ The tax was introduced as a means to encourage alternative methods of disposal such as recycling. ◦ The tax is charged by weight at varying rates depending on whether the waste is inert or active.

Answer 305

◦ BREEAM (Life Cycle Assessment). ◦ Sets best practice standards for the environmental performance of buildings through specification, design, construction and operation. ◦ BREEAM Stands for the Building Research Establishment Environmental Assessment Method. ◦ The assessment is undertaken by a licensed assessor based on energy, land & ecology, water, health & wellbeing, pollution, materials and waste and management. ◦ BREEAM applies to new and refurbishment projects, domestic and non-domestic. ◦ Rating are: ◦ Outstanding. ◦ Excellent. ◦ Very Good. ◦ Good. ◦ Pass. ◦ Unclassified. ◦ SKA Ratings ◦ An RICS Environmental assessment method for non-domestic fit outs such as office refurbishments.

Answer 306

◦ Recycling of cardboard, paper and plastics. ◦ Use of Energy efficient lighting (motion sensors). ◦ Energy efficient equipment (LED lamps, energy efficient monitors). ◦ All company cars are to be EV's by 2025. ◦ Cycle to work schemes. ◦ Reduce printing by using cloud-based systems. ◦ Charitable contributions (tree planting / environmental programmes). ◦ Sign up to Green initiatives and codes of practice (use office space with high EPC / BREEAM ratings).

Answer 307

◦ The Paris Agreement is a legally binding international treaty concerning climate change. ◦ It was adopted by nearly every nation and came into affect in 2016. ◦ The goal of the Paris Agreement is to limit global warming to well below 2 degrees Celsius whilst targeting levels below 1.5 degrees Celsius when compared to pre-industrial levels. ◦ The agreement commits all major emitting countries to cut their climate pollution. ◦ It also creates a framework for the transparent monitoring and reporting of each individual countries progress.

Answer 308

◦ Use of recycled materials such as reclaimed timber, recycled tiles and plastics. ◦ Ground Source Heat Pumps. ◦ Air Source Heat Pumps. ◦ Solar Panels. ◦ Wind Turbines. ◦ Solar Shading. ◦ Rain water harvesting. ◦ Green Roofs. * Automated Building Systems (Lighting sensors).

Answer 309

◦ A green roof is a roof covering that is partially or completely covered with vegetation that is placed over a waterproof membrane. ◦ Additional layers such as drainage layers, irrigation systems or root barriers may also be placed over the membrane. ◦ Rooftop ponds are an alternative form of green roof which are used to treat grey water. ◦ The vegetation, soil, drainage layer, root barriers and irrigation system are typically the key components of a green roof. ◦ Advantages of Green Roofs are that they absorb rainwater, provide extra insulation, increase biodiversity by providing habitats for wildlife, are aesthetically pleasing and lower urban air temperatures.

Answer 310

◦ Photovoltaics allow the conversion of sunlight into electricity. ◦ Sunlight contains energy known as photons. ◦ When photons hit solar modules within the solar panel they cause electrons to flow through the bottom layer. ◦ The movement of electrons generates electricity that flows to an inverter. ◦ The inverter converts DC electricity into AC that is then used to power the building.

Answer 311

◦ Soakaways offer a means of surface water drainage attenuation. ◦ They consist of large holes or pits that receive surface water from a drainage pipe. ◦ The soakaway allows the collected surface water to gradually infiltrate through the soil.

Answer 312

◦ Soakaways offer a means of surface water drainage attenuation. ◦ They consist of large holes or pits that receive surface water from a drainage pipe. ◦ The soakaway allows the collected surface water to gradually infiltrate through the soil.

Answer 313

◦ Shell and core is the basic structure, services and envelope of the building. ◦ This normally includes the fit out of landlord and common areas for example the reception, toilets, lifts & stair cores. ◦ Base services are typically terminated at entry points to each of the lettable floor plates however life safety services infrastructure is normally provided.

Answer 314

◦ CAT A is also known as a developer's fit out. ◦ This provides generic fit-out items to suit most developers for example life safety elements and basic fittings such as suspended ceiling tiles, raised floors, carpets, lighting and power distribution to floor plates.

Answer 315

◦ A CAT B fit out overlays the CAT A provision with bespoke elements that are specific to the needs of the building's user to enable the tenant to occupy and use the space. ◦ This would typically include partitions, power distribution to floor boxes, data cabling, artwork and branding, upgrading CAT A finishes and toilet finishes.

Answer 316

The British Council of Offices (BCO) fit-out guide.

Answer 317

◦ BWIC stands for Builders Work In Connection and is usually set as a percentage of the services cost. ◦ BWIC accounts for the Main Contractor to perform any drilling, fixing, cutting and penetrations to enable the services installation.

Answer 318

◦ Under NRM this is described as the determination of the possible cost of a building early in design stage in relation to the employer's fundamental requirements.z ◦ This takes place prior to preparation of a full set of working drawings or bills of quantities and forms the initial build-up to the cost planning process.

Answer 319

◦ To establish if the proposed building project is affordable and, if affordable, to establish a realistic cost. ◦ The cost limit is the maximum expenditure that the client is prepared to spend on the proposed building project.

Answer 320

◦ This can be presented on a cost per m2, functional unit or elemental basis. ◦ It may also be presented as a range for example £700-£850/m2. ◦ This may consist of element rates for the main elements of the building for example Substructure, Frame, External Walls, Upper Floors & Roof. ◦ Any site abnormal costs or enabling works are also considered ◦ Other inclusions are Preliminaries, Contingency, Inflation and location factor adjustments.

Answer 321

◦ A functional unit is a unit of measurement that considers the prime use of the building. ◦ For example in the construction of a hotel or hospital the functional unit may be presented as a cost per bedroom or cost per bed. ◦ In a retail estimate the functional unit would be presented as the net lettable retail space.

Answer 322

◦ Previous similar projects and historical cost data such as previous tender submissions or a contract sum analysis. ◦ Other sources may include estimating price books such as Spons or Laxtons, the Building Cost Information Service or specialist contractors.

Answer 323

◦ It is used by the cost consultant to control the development of the design. ◦ It identifies the client's agreed cost limit and how the money is to be allocated to the different elements of the building.

Answer 324

◦ A formal cost plan is typically issued between RIBA Work Stage 2 to Stage 4. ◦ At stage 2 the Concept Design is made available and the cost plan may be produced at a fairly high level. The Cost Plan may be broken down into the different elements of the building based on an outline specification and Architectural concept drawings. ◦ At stage 3 the Spatial co-ordination of the building is undertaken, the schedule of accommodation may be adjusted and the cost plan is updated to reflect this accordingly. ◦ At stage 4 the technical design is made available and cost plan updated to reflect the Architect and Engineering technical designs. Specialist subcontractor designs may also be made available to support with refinement of the project costs. ◦ The cost plan at Stage 4 will typically form the basis of a pre-tender estimate to compare tender submission against although this is no longer referenced within the RIBA Plan of Work.

Answer 325

◦ Construction costs. ◦ Preliminaries. ◦ Contractor's OH&P. ◦ Contingency. ◦ Inflation. ◦ Assumptions. ◦ Exclusions. ◦ Area Schedule. * List of Drawings & Specifications adopted.

Answer 326

◦ Excavation. ◦ Disposal. ◦ Foundations. ◦ Substructure. ◦ Superstructure. ◦ Frame. ◦ Upper floors. ◦ External walls. ◦ Roof. ◦ Internal finishes. ◦ Services. ◦ External works.

Answer 327

◦ Professional fees. ◦ VAT. ◦ Client decant costs. ◦ Loose fixtures and fittings. ◦ Inflation. ◦ Site acquisition costs. ◦ Section 106 Agreement. ◦ Removal of asbestos.

Answer 328

- Because different clients will incur different levels of VAT, for example charities may not be subject to VAT * We would not be in a position to know the correct rate unless informed of it.

Answer 329

I take into account inflation through the use of Tender Price Indices and include adjustments for Construction Inflation and Tender Price Inflation.

Answer 330

I would allow for Construction inflation from the anticipated start of the project to the mid-way point of the project.

Answer 331

I would allow for Tender Price inflation from the estimate base date to the anticipated tender return date.

Answer 332

The base date refers to the date on which rates and prices contained within a cost estimate are based on. These are included for the basis of calculations for example if adjusting the rates for inflation in the future, the base date can be used as the starting point from which inflation would be adjusted.

Answer 333

Tender Price Indices

Answer 334

◦ They reflect changes in the level of tender prices over a period of time. ◦ The price adjustments take into account the level of inflation depending on current and forecast market conditions.

Answer 335

◦ The service I use to obtain Tender Price Indices is the Building Cost Information Service. ◦ Larger cost consultancies also produce their own in-house tender price forecasts.

Answer 336

◦ Inflation needs to be accounted for to anticipate the changes in the prices of labour, plant and materials. ◦ We need to account for inflation from the date the cost estimate is produced to the anticipated start date of the project. ◦ This is to ensure accuracy of the estimate for the client and to ensure the project remains within the cost limit that has been established.

Answer 337

Building Cost Information Service

Answer 338

The BCIS provides construction cost and price information through publications, online services and price books.

Answer 339

◦ Previous Tender Submissions. ◦ Previous Contract Sum Analysis. ◦ Benchmarks. ◦ BCIS. ◦ Building cost models. ◦ SPONS and other price books such as Laxtons. ◦ Specialist sub-contractors and suppliers.

Answer 340

◦ VE stands for Value Engineering. ◦ VE is an organised approach aimed at providing the necessary functions of the building taking into account the clients objectives at the lowest cost, without detrimental affects to quality, reliability, performance or delivery.

Answer 341

◦ Value Management is the proactive process of defining what value means to a client and putting procedures in place to ensure that maximum value is delivered for the client, first time. ◦ In comparison, Value Engineering forms one of the processes under Value Management and is a reactive procedure to bring the anticipated cost of the development back in line with the project budget when a potential overspend is identified.

Answer 342

◦ Value is a measure of worth taking into account the overall usefulness and benefits that are delivered in relation to cost being paid for it. ◦ Value is a complex concept and means different things to different clients. ◦ For example a short term developer looking to sell a building on completion will place greater value on a cheaper out-turn cost whereas a developer occupier may place more importance on a higher quality building with lower operating costs.

Answer 343

Information phase. ◦ Understanding the clients objectives around value. ◦ Defining the clients objectives and key criteria governing the project. ◦ Understanding background decisions that have influenced the design development of the project. Speculation phase. ◦ Listing creative ideas to generate a lesser capital or life cycle cost. ◦ Generating ideas to provide the necessary functions of the building at the most efficient price. ◦ Judgement of each of the ideas is prohibited. Evaluation Phase. ◦ The criteria for evaluation of the ideas generated during the speculation phase are defined. ◦ Each of the ideas are assessed against the evaluation criteria. ◦ The ideas that are considered to offer the greatest potential cost savings and value improvement are retained. ◦ The ideas considered not worthy or impractical are discarded. Development Phase ◦ Ideas retained from the evaluation phase are developed and expanded into workable solutions. This will include developing a description of the proposed design change with advantages and disadvantages. ◦ Cost comparisons and design calculations will be undertaken as part of the development phase. Presentation Phase. ◦ The retained ideas are presented to the client in a written report. ◦ A briefing or verbal presentation may also be provided to build the clients understanding. ◦ The rationale and background on why the proposals are being recommended is explained. ◦ As well as referencing monetary benefits, a wider communication of delivering the clients specific objectives should be provided. ◦ Decisions are taken by the client and design team on what proposals are accepted or discarded.

Answer 344

◦ Each construction client has their own specific objectives and definition of what value means to their organisation. ◦ Client organisations are sometimes made up of different working groups with contrasting priorities. ◦ If agreements concerning the definition of value are not reached then chances of perceived failure of the project increases. ◦ VM is needed to reach an agreement on what value is defined as and to reach a shared understanding on the objectives that are being sought.

Answer 345

The costs that will be incurred over a defined period of operating and maintaining a building or an asset including repair, maintenance, replacement, cleaning, decorating, services provision and disposal.

Answer 346

◦ Life cycle costing allows consideration of the long-term implications of a decision. ◦ It enables informed decisions to be made on material selection. ◦ Life cycle costing can result in lower operational, maintenance and replacement costs. ◦ It can also be used to plan future maintenance requirements ensuring easier access and less disruption to the operation of the building.

Answer 347

◦ Future costs are optional and the costs of maintenance can always be deferred. ◦ Components are not always replaced due to end of life which is impossible to assess at design stage. ◦ The cost of defects caused by bad workmanship and design faults cannot be predicted. ◦ It is hard to predict life spans, future inflation and maintenance requirements over long periods.

Answer 348

◦ Capital costs. ◦ Operational costs. ◦ Maintenance costs. ◦ Replacement costs. - disposal costs

Answer 349

* Building Maintenance Cost Information Service (BMCIS) - part of BCIS. * From sub-contractors and suppliers.

Answer 350

◦ It judges an investment in terms of the time period over which the invested sum is returned in cost savings. ◦ The increased expenditure on a higher quality component is viewed as the investment and the saving provided in the form of future costs is viewed as the 'revenue. ◦ The best option would be the one that repaid the investment in the shortest time.

Answer 351

◦ This is often used to evaluate the options for incorporating sustainable technologies. ◦ It is considered suitable for elements that have a very high initial capital cost but will pay back this initial investment over a period of time in terms of reduced running costs.

Answer 352

* For prestige reasons. * When considering that the replacement or repair may be inconvenient even if the solution is cheaper.

Answer 353

Risk of imprisonment for persons who fail to disclose varying degrees of knowledge, belief or suspicion of the commission by others of terrorist offences.

Answer 354

The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS

Answer 355

RICS listed insurers

Answer 356

This is reviewed on a yearly bases

Answer 357

You apply to RICS.

Answer 358

- Importance of background checks on companies - Using approved supply chain - Principals of the bribery act - Not accepting money in cash

Answer 359

Money Laundering Regulations 2017

Answer 360

Taking additional measures, to prevent money laundering or terrorist financing in relation to products and services. Taking appropriate steps to assess and mitigate the risk of money laundering and terrorist financing when you adopt new technology. Regulated businesses (“relevant persons”) to apply enhanced customer due diligence measures and enhanced ongoing monitoring in any business relationships with a person established in a high-risk third country or in relation to any relevant transaction where either of the parties to the transaction is established in a high-risk third country. The MLR defines countries and areas that are considered high-risk. They aim to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach. Firms must put measures in place to identify their clients and monitor how they use their services.

Answer 361

- Appoint a member of senior management to be responsible for compliance - Screening of employers prior to appointment - Independent audit - Training of staff - Customer due diligence

Answer 362

- Identify and verify your client - Identify and verify benefit owners of the client - Obtain information on purpose and intended nature of business relationship/transaction. - Identify and verify person acting on behalf of the client Enhanced due diligence can be undertaken for those in high-risk areas, those who are politically exposed person and their family members. Simplified due diligence can be undertaken when the client is low risk.

Answer 363

RICS Members Lawyers Accountants Auditors Tax Advisors

Answer 364

Under this legislation a firm can be criminally liable if a person associated with it enables evasion of UK or foreign tax, for instance by deliberately providing a false valuation of a property.

Answer 365

An employee of a firm in the regulated sector could comply with UK law by advising the firm's reporting officer of any suspicions, but to comply with the RICS professional standard they must report it to the police or NCA (National Crime Agency) as well. Countering bribery, corruption, money laundering and terrorist financing Professional Standard 2019

Answer 366

National crime agency

Answer 367

This was the UK GDPR training looking at key principals of the regulation.

Answer 368

January 2021.

Answer 369

EU GDPR - If you hold any overseas data collected before 01 January 2021 (referred to as ‘legacy data’), this will be subject to the EU GDPR.

Answer 370

General Data Protection Regulation

Answer 371

Failure to comply with the UK GDPR may leave you open to substantial fines. There are two tiers of fines: a maximum fine of £17.5 million or 4 per cent of annual global turnover - whichever is greater - for infringement of any of the data protection principles or rights of individuals.

Answer 372

To ensure each subcontractor had the same opportunities and to ensure transparency and honesty.

Answer 373

- Be honest. - Do the right thing – morals

Answer 374

Creates successful working relationship and repeat works. Client is not left dissatisfied as was informed and expectations were managed throughout the project.

Answer 375

A quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.

Answer 376

- Continuous feedback throughout regular meetings - workshop on feedback before, during and after project - Key accounts manager

Answer 377

Meeting the clients needs in terms of quality, time and cost, and where this is not possible managing expectations and being honest and transparent.

Answer 378

Complaints are initially dealt with by the Head of Customer Service, who may refer them to the Managing Director. Complaints will be acknowledged within 3 working days A comprehensive response will be issued within 15 working days.

Answer 379

SKA rating is an environmental assessment method that rates the sustainability of commercial office and retail fit-out projects in the UK

Answer 380

Royal Institution of Chartered Surveyors

Answer 381

To assess the competence of candidates seeking to become chartered surveyors

Answer 382

Where someone in a position of trust has competing personal or professional interests

Answer 383

* Ensure exclusivity of staff * Separate communication lines * Maintain secure office and data storage * Sign confidentiality agreements * Monitor potential conflicts

Answer 384

Seek a letter of instruction from the client to continue

Answer 385

* £100k or less: £250k * £100k - £200k: £500k * Above £200k: £1m

Answer 386

* Professional Indemnity Cover * Buildings Insurance * public liability insurance * Employers Liability Insurance * Run Off Cover

Answer 387

* Rule 1: Honesty and integrity * Rule 2: Maintain professional competence * Rule 3: Provide quality and diligent service * Rule 4: Treat others with respect * Rule 5: Act in the public interest

Answer 388

To provide a single document for greater clarity and to better address public interest, evolving technology and climate change

Answer 389

* Acknowledge the complaint within 28 days * Handle by a senior person * Independent redress mechanism if unresolved

Answer 390

* Proportionate Procedures * Top Level Commitment * Risk Assessments * Due Diligence * Communication * Monitoring & Review

Answer 391

When under duress due to immediate physical threat

Answer 392

Decline the prize and suggest a charitable donation instead

Answer 393

Decline the invitation as it will not be a genuine business event

Answer 394

It could be perceived as inappropriate and must be declared on the Hospitality Register

Answer 395

It can lead to unfair competition and undermine the integrity of the profession

Answer 396

two stages

Answer 397

Declare it on the Hospitality Register and inform your line manager immediately. Offer to reciprocate, at a less lavish venue ## Footnote This is to maintain transparency and adhere to ethical guidelines.

Answer 398

It considered if a professional was vulnerable to claims brought directly against them for advice given on behalf of their employers. Employer was no longer in business, courts permitted claim against the surveyor. ## Footnote Highlights the importance of run-off cover.

Answer 399

Usually 6 years if contract executed under hand, 12 years if executed as a deed.

Answer 400

20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.

Answer 401

1. Comply with CPD requirements 2. Cooperate with RICS 3. Provide all information reasonably requested by the Standards and Regulation Board.

Answer 402

* Rule 1: Members must be honest and act with integrity * Rule 2: Maintain professional competence * Rule 3: Provide good-quality service * Rule 4: Treat others with respect * Rule 5: Act in the public interest.

Answer 403

It places a cap on the level of exposure a business signs up to.

Answer 404

1. Keep detailed records of meetings and conversations 2. Use proper letters of engagement 3. Don't advise on specialisms outside your field of experience.

Answer 405

The professional/firm is liable for the difference in assets.

Answer 406

Decline the invitation and report the incident to your line manager.

Answer 407

Adhere to rules of conduct and advise them to use the RICS 'find a surveyor scheme'.

Answer 408

Must be made on an 'each and every' claim basis, setting out minimum levels of indemnity.

Answer 409

Explain the potential for undue influence and decline the request.

Answer 410

Insurance that professional individuals and firms must ensure is in place after leaving employment or if a firm ceases trading.

Answer 411

To ensure that services are provided by competent individuals with necessary expertise.

Answer 412

Loss of public confidence in the profession and potential legal repercussions.

Answer 413

Not acting with integrity or respectful to fellow contractors ## Footnote This behavior undermines trust and fairness in the industry.

Answer 414

To establish a conduct board to operate disciplinary structures and regulate firms as well as members ## Footnote The report aimed to address dissatisfaction with RICS regulation.

Answer 415

- A conduct board should be established to operate the disciplinary structures •The RICS should regulate firms as well as members •A review of existing CPD requirements and compliance should be initiated

Answer 416

* Proportionality * Accountability * Consistency * Targeting * Transparency ## Footnote These principles guide how RICS regulates its members to uphold professionalism.

Answer 417

RICS should only intervene when necessary, with remedies being proportionate to the issue ## Footnote For example, a verbal warning for late fee payment vs. expulsion for continued failure.

Answer 418

True ## Footnote This promotes fairness and transparency in regulatory decisions.

Answer 419

Consistency ## Footnote This ensures a fair and level playing field.

Answer 420

To focus on the problem and minimize side effects from a scattergun approach ## Footnote Regulations should be clear and unambiguous.

Answer 421

Regulations should be simple, user-friendly, and effectively communicated ## Footnote This helps members comply without feeling overwhelmed.

Answer 422

* Clients must have access to funds * Client money must be kept separate * Include 'Client' in account name * Maintain client ledger ## Footnote These steps ensure ethical handling of client funds.

Answer 423

* Membership and registration details * Conduct information * Accounts and audit information ## Footnote This ensures compliance and accountability within the organization.

Answer 424

Stage 0: Strategic Definition • Establish the need and purpose of the project. • Appoint key team members and assess strategic options. • Define project outcomes, feasibility, and scope.

Answer 425

Stage 1: Preparation and Briefing • Develop the project brief and define the client’s requirements. • Conduct feasibility studies and site appraisals. • Establish budget, procurement route, and project team roles.

Answer 426

Stage 2: Concept Design • Create initial design concepts to meet the project brief. • Develop outline proposals and preliminary cost plans. • Explore planning strategies and sustainability objectives.

Answer 427

Stage 3: Spatial Coordination • Refine the design, incorporating input from all disciplines. • Coordinate architectural, structural, and building services designs. • Submit planning applications as required.

Answer 428

Stage 4: Technical Design • Produce detailed designs and specifications for construction. • Finalize building regulations submissions. • Collaborate with contractors and consultants to resolve design details.

Answer 429

Stage 5: Manufacturing and Construction • Begin on-site construction and off-site manufacturing. • Monitor progress to ensure adherence to design and quality standards. • Conduct regular site inspections and resolve any issues.

Answer 430

Stage 6: Handover • Complete construction and perform final inspections. • Ensure building is operational and hand it over to the client. • Provide manuals, training, and support for facility management.

Answer 431

Stage 7: Use • Support the building’s operational phase. • Review performance against the original brief. • Undertake post-occupancy evaluations and address feedback.

Answer 432

Capacity, Intent, Consideration, Lawfulness, Offer, Acceptance, Clarity of the Terms

Answer 433

This means that the Main Contractor has not fulfilled their obligation to meet practical completion however a certificate of non-completion has not been issued. This means that there is no set completion date. The contractor only has the obligation to complete the works in a reasonable time. Liquidated damages cannot be claimed as there is no date to take them from. The employer would have to try and prove that the contractor had not completed in a reasonable time.

Answer 434

Frustration occurs when any event or circumstances beyond the control of both parties changes the contractual obligations or makes it impossible or illegal for them to fulfil their contractual obligations. The happening of such events automatically discharges the contract. Davis Contractors vs Fareham UDC case law set out 3 basic points for frustration to have occurred including: The frustrating event is not caused by the default of either party; The contract becomes impossible to fulfil as it has become something entirely different from the original agreement between the parties; There is no provision in the contract to cover the eventuality that is a frustrating event.

Answer 435

A deed is signed by the parties as well as a witness & traditionally authenticated by a seal. Whereas under hand is only signed by the parties of the contract. The limitation period of an under-hand contract is 6 years whereas contracts executed as a deed have a limitation period of 12 years.

Answer 436

I would check that the LAD figure is based on a genuine preestimate of financial loss and explain that in the event LADs are to be applied, they would need to substantiate this figure. I would also explain that if the figure inserted into the contract is shown to be punitive and not based on genuine financial loss it is not likely to be enforceable. In this scenario, the employer will have to pursue the Main Contractor for any actual direct loss that can be substantiated through a formal dispute resolution procedure.

Answer 437

A genuine pre-estimate of the likely loss incurred by the employer should the completion date not be met.

Answer 438

A non-completion certificate. A pay less notice.

Answer 439

It doesn't matter. The damages can still be deducted at the value stated in the contract.

Answer 440

The defects liability period is the duration at the end of the contract, usually 52 weeks after the Substantial Completion Certificate has been issued whereby the contractor undertakes to rectify any defects that arise within the structure at the contractor's expense, providing they were due to materials & workmanship not being in accordance with the contract. In the event that the contractor failed to rectify any defects the employer may employ another contractor to carry out the works & recover the cost of doing so from the Main Contractor. The retention money retained may be used to cover the costs of making good.

Answer 441

The Contractors Proposals.

Answer 442

Contract conditions that are drafted specifically for a particular project.

Answer 443

They are written by legal experts. Rights and obligations of each party are clearly set out to the required level of detail. Risks should have been allocated appropriately between the parties. Parties should be familiar with the provisions in the form providing greater consistency in application and fewer unforeseen anomalies. The time and expense of preparing a fresh document for each occasion is avoided. Case law is built up over time and provides a good source of knowledge and clarity of the terms.

Answer 444

Apportionment of risks is rarely questioned and therefore becomes implicit meaning it is not reviewed on whether it is appropriate. They may not be appropriate to the needs of a particular project or client. Using an inappropriate standard form for the project will cancel out any advantages.

Answer 445

They should generally be used for major projects with novel obligations. When specialist advisors can undertake the amendments as this requires great skill and knowledge. Drafting from first principles is too daunting for most in the industry.

Answer 446

Where the sub-contractor or supplier retains ownership of materials until they are paid for them by the contractor. This highlights the importance of vesting certificates as the employer may subsequently pay for materials that are not owned by the contractor. This legal principle can lead to disputes in the event of insolvency.

Answer 447

They create contractual relationships between the main parties of a contract with an external third party. The contractual relationship would not exist with the third party due to privity of contract.

Answer 448

Any third party with a financial investment in a project but not party to the main contract. Funding institutions, future tenants or purchasers may use collateral warranties. The employer may want a collateral warranty with key subcontractors or suppliers, as if the main contractor were to go into liquidation they would have no contractual link with them for redress in case of defective workmanship.

Answer 449

Where the rights and benefits of one contractual party are transferred to a third party.

Answer 450

It is standard to allow assignment of rights twice without consent. The assignment should be notified in writing to the other party.

Answer 451

Novation is where a new contract transfers the rights and obligations of one contractual party to a new third party. Assignment is the transfer of contractual rights or contractual benefits only as burdens cannot be assigned.

Answer 452

Whether the new party has the right to take action against the novated party for breaches that occurred before the novation.

Answer 453

They lose all contractual relations with the novated party and therefore the right to take action for a breach. It is therefore common for there to be a collateral warranty between the employer and novated party.

Answer 454

Proof that ownership will transfer to the employer upon payment (vesting certificate). Insurance until materials arrive at site. Materials are clearly labelled as for the site and set apart from other materials. A materials off site bond has been provided if required.

Answer 455

The provision of a service that is suitable for the employer’s intended purpose. It is clearly a more onerous obligation than reasonable skill and care.

Answer 456

An arrangement where the contractual performance of one company in a corporate group is underwritten by the other members of that corporate group. This means that it must complete the works itself if it can or pay the financial equivalent.

Answer 457

Joint Contracts Tribunal.

Answer 458

Recitals. Articles. Contract Particulars. Attestation. Conditions divided into 9 sections (7 for minor works). Schedules.

Answer 459

Standard building contract. Design and Build Minor works. Intermediate. Major Projects Framework Agreement Prime Cost Contract

Answer 460

Definition and interpretation. Carrying out the works. Control of the works. Payment. Variations. Injury, damage and insurance. Assignment, Third Party Rights and collateral Warranties. Termination. Settlement of disputes.

Answer 461

Projects that are short in duration on a small scape with a straight forward construction. JCT guidance is for a value up to 200,000 but it has to be simple in nature. It is a lump sum form where design should be completed prior to execution. The Employer or their team is to provide specifications, drawings and a schedule of works. Simple Lump Sum works, under 200k, design by employer.

Answer 462

The Intermediate form is recommended for projects that do not exceed a one year duration. The project should be simple in content and require only basic skills and trades where services are not complex and where the works are already designed. Not complex works, under 1 year onsite, design by employer.

Answer 463

A JCT Standard Building Contract would be used where the work has already been designed at execution. It is suitable for use with a bill of quantities and is a lump sum form. The contractor’s risk is limited to price only. The employer takes the risk of errors in the bill. Lump Sum or BOQ, Works designed by employer, Contractors risk is only price.

Answer 464

They are events that entitle the contractor to an extension of time.

Answer 465

There are 13 relevant events set out in JCT forms including: - Variations. - Instructions. - Execution of an approx. quantity that is not a reasonably accurate forecast. - Deferment of possession of the site. - Suspension by the contractor for non-payment. - The carrying out of work by statutory authorities. - Impediment, prevention or default by the employer. - Loss or damages occasioned by the Specified Perils. - Exceptionally adverse weather conditions. - Strike or lock out. - Civil commotion or terrorism. - The exercise of any statutory power after the base date by the UK gov. - Force majeure.

Answer 466

Yes an EOT does not automatically mean entitlement to L&E.

Answer 467

When pricing an EOT I would include costs for prolongation of site cabins, site utilities, welfare facilities, management staff, security, cleaners, inefficient use of labour & plant resources, subcontractor mobilisation costs, head office, finance charges & loss of profit.

Answer 468

Interim certificates. Practical completion or sectional completion certificates. Non completion certificates. Certification of Making Good. Final Certificate.

Answer 469

Sectional completion is a contractual obligation to hand over the section at the stated date, partial possession relies on the contractor’s consent.

Answer 470

Practical completion is a vague concept. It is not defined in JCT. It is reliant on the architect/Contract Administrators opinion that the works are complete. It should not be conditional. It is common practice for PC to be granted when the works are substantially complete however there may be minor defects or omissions with nothing to prevent the employer from taking beneficial occupancy.

Answer 471

Collateral warranties. Third party rights. Assignment. Novation

Answer 472

New Engineering Contract.

Answer 473

They are often only considered to be used for civil engineering projects and partnerships. They have limited exposure to the market so they are therefore not fully tried and tested with supporting case law.

Answer 474

The Project Manager can be from the employer’s organisation or an external consultant. The Project Manager represents the client and has full authority to make decisions, unless the employer has restricted his authority. The PM has the duty to be impartial and to apply the contract. Designers prepare the work information and are not named in the NEC. The supervisor is either from the employer’s organisation or an external consultant. The supervisors role is to check that the works are carried out as described in the contract. They have a similar role to the clerk of works with authority such as instructing searches or issuing defect certificates.

Answer 475

The role of the QS is not mentioned in the contract. The QS can adopt a supporting role to contractor and PM to agree cost of compensation events despite not being formally referenced. Options B and D involve quantities and measurement. Target costs under options C and D require an audit role in open book accounting in target contracts which the QS may be responsible for.

Answer 476

Under clause 17 they are awarded in favour of the party who did not provide the works information. The PM issues an instruction to vary the works information which is a compensation event.

Answer 477

Events which, if they do not arise from the fault of the Contractor’s, entitle the Contractor to be compensated for effect on the Prices, Key Dates and Completion Date. There are 19Nr compensation events listed in clause 60.1

Answer 478

There are 19 of them in clause 60.1:- - Changing the works information. - Access to the site. - PM instructs to stop work. - PM or supervisor do not respond to a communication within the timescale stated in the contract. - Object of value or historical interest. - PM withholds an acceptance without valid reason. - Instruction to search. - Adverse weather (as measured in the contract data). - Employer’s risks listed in clause 80.1 and contract data. - PM changes assumptions previously made on compensation events - Employer’s breach of contract.

Answer 479

Extensions of time adjust the completion date and extend the dates in which liquidated damages become payable. Contracts typically set out agreed relevant events in which the contractor will be given an extension of time.

Answer 480

◦ It relieves the contractor's liability for liquidated damages for a delay that they did not cause. ◦ It enables another completion date to be set, which maintains the employer's ability to deduct liquidated damages if another delay occurs.

Answer 481

◦ Preliminaries. ◦ Measured work. ◦ Variations. ◦ Materials on site. ◦ Materials off site. ◦ Loss and expense. ◦ Retention.

Answer 482

◦ The materials should be for the works. ◦ They should be adequately protected. ◦ Delivered to programme. ◦ In a reasonable quantity.

Answer 483

◦ Proof that ownership will transfer to the employer upon payment (vesting certificate). ◦ Insurance until materials arrive at site. ◦ Materials are clearly labelled as for the site and set apart from other materials. ◦ A materials off site bond has been provided if required.

Answer 484

Where the sub-contractor or supplier retains ownership of materials until they are paid for them by the contractor. ◦ This highlights the importance of vesting certificates as the employer may subsequently pay tor materials that are not owned by the contractor. ◦ This legal principle can lead to disputes in the event of insolvency.

Answer 485

◦ Go to site and inspect the works to form a view on the percentage of works undertaken. ◦ Check for materials on site and materials off site. ◦ Value time related and fixed preliminaries items undertaken. ◦ Value any agreed variations and claims. ◦ The valuation amount is presented as the gross valuation, less previous payment made and retention. ◦ Finally I would send my recommendation to the Architect or Contract Administrator for them to prepare the payment certificate.

Answer 486

◦ The stages and their values are set out in the contract particulars. ◦ The stages are usually related to the completion of significant design items for example completion of the substructure or achieving a water tight structure.

Answer 487

◦ Interim certificates are not conclusive. ◦ They carry no contractual significance to state that the quality of materials or workmanship is satisfactory. ◦ It is only the final certificate that is conclusive.

Answer 488

It is a percentage of each interim certificate deducted and retained by the employer from each interim payment to the contractor.

Answer 489

* It provides an incentive for the contractor to rectify any defects within the contract defects liability period. * It provides some financial security to the employer in the event of a contractor default.

Answer 490

- Half on Practical Completion - Half following the making good defects certificate at the end of the DLP

Answer 491

◦ This is a bond provided by the contractor in lieu of taking retention from interim payments. ◦ It should be equal to the same value as the retention deducted. ◦ The requirement for the bond should be stated in the contract particulars. ◦ A standard form is provided in the JCT contract schedules.

Answer 492

Usually between 3-5% dependant on form

Answer 493

◦ The employer can deduct retention from interim payments. ◦ If the bond is subsequently taken out, the retention deducted must be repaid to the contractor.

Answer 494

* It may be used in difficult market conditions to aid the contractor's cashflow.

Answer 495

◦ The employer would have to pay the premium for taking out the bond. ◦ It may reduce the contractor's incentive to complete making good defects promptly. ◦ It reduces the employer's cashflow. ◦ The employer would not get the interest accruing on the amount of the retention bond.

Answer 496

Acceleration is the completion of works in a shorter time frame than that anticipated at tender or the act of programme recovery by the contractor if they are in delay.

Answer 497

Re-sequencing the works or making sequential activities parallel. ◦ Increasing the working time by using working longer hours. ◦ Increasing the resources employed by using larger gangs. * Changing the working nethods for example using a dehumidifier to dry out the work faster * Increasing incentives for example offering bonus payments.

Answer 498

◦ Re-sequencing the works can be the most cost effective and efficient. ◦ The least efficient is usually increasing the working time and increasing the resources employed which usually results in lower productivity.

Answer 499

Where adjustments of the contract sum are limited to changes in statutory contributions, taxes and levies.

Answer 500

Where the contract sum is adjusted for changes in the costs of materials and labour as well as statutory contributions, taxes and levies. Typically by the Price Adjustment Formula Indices (PAFI), which are maintained by BCIS

Answer 501

The date fixed and stated in the contract particulars.

Answer 502

This is the date for completion of the works that may be adjusted to take into account agreed Extension of Time.

Answer 503

◦ There is no fixed completion date. ◦ The contractor must only complete the works in a reasonable time.

Answer 504

◦ When the works are substantially complete with minor defects only. ◦ The employer is able to gain beneficial occupancy of the development. * Half of retention is released. ◦ The employer surrenders the right to apply liquidated damages. ◦ The employer takes back possession for the works and is responsible for arranging insurance.

Answer 505

The completion and handover of the works to the employer in agreed stages.

Answer 506

Where the employer requests and the contactor consents to the employer taking possession o the works or part of the works before the date for practical or sectional completion.

Answer 507

Sectional completion is a contractual obligation to hand over the section at the stated date, partial possession relies on the contractor's consent.

Answer 508

Issue to a written statement to the contractor showing the relevant part and stating the relevant date

Answer 509

The contractor has an obligation to make good any defects, shrinkages or other faults that arise during this period of time. How long is it? * It depends on the forms of contract is place but is typically 12-24 months so the building can be observed in all seasons.

Answer 510

This is issued by the architect or contract administrator to certify that the works or works section have not been completed by the relevant completion date.

Answer 511

The employer has the right to withhold liquidated damages, as long as a payless notice has been given or relevant demand under the contract

Answer 512

* Interim certificates. * Practical completion or sectional completion certificates. ◦ Non completion certificates. ◦ Certification of Making Good. ◦ Final Certificate.

Answer 513

◦ Collateral warranties. ◦ Third party rights. ◦ Assignment

Answer 514

◦ They create contractual relationships between the main parties of a contract with an external third party. ◦ The contractual relationship would not exist with the third party due to privity of contract. Collateral warranties give remedies to external third parties that due to privity of contract would not otherwise have them.

Answer 515

Any third party with a financial investment in a project but not party to the main contact. ◦ Funding institutions, future tenants or purchasers may use collateral warrantees. ◦ The employer may want a collateral warranty with key subcontractors or suppliers, as if the main contractor were to go into liquidation, they would have no contractual link with them for redress in case of defective workmanship.

Answer 516

* The obligations of the collateral warranties should mirror that of the main agreement. * Therefore if a party is in breach of the main agreement they would also be in breach of the warranty, ◦ Common terms include:- ◦ Limitation of liability. ◦ Reasonable skill and care or fitness for purpose. ◦ Requirements for PI insurance. ◦ Assignment rights. ◦ Novation rights.

Answer 517

◦ Wa/F-JCT standard form of collateral warranty for a funder. ◦ CWa/P&T -JCT standard form of collateral warranty for a future purchaser or tenant.

Answer 518

Where the rights and benefits of one contractual party are transferred to a third party. No Burdens

Answer 519

It is standard to allow assignment of rights twice without consent The assignment should be notified to the other party in writing.

Answer 520

* Novation is where a new contact transfers the rights and obligations of one contractual party to a new third party. * Assignment is the transfer of contractual rights or contractual benefits only as burdens cannot beassigned.

Answer 521

Whether the new party has the right to take action against the novated party for breaches that occurred before the novation.

Answer 522

◦ They lose all contractual relations with the novated party and therefore the right to take action for a breach. (say a consultant was novated from a employer to main contractor) ◦ It is therefore common for there to be a collateral warranty between the employer and novated party.

Answer 523

These are clauses that limit a party's lability for potential losses Examples of limitation clauses could be:- ◦ Limitation to a fixed sum. ◦ Limitation to the extent of PI insurance. ◦ Exclusion of consequential loss. ◦ Limitation to loss that can be recovered from a third party. ◦ Limitation to responsibility or a net contribution clause.

Answer 524

- Collateral Warranties can be used as a direct link between the employer and subcontractor. - In the event that the subcontractor fails to carry out his obligations the employer can have a contractual remedy to sue the subcontractor for breach of contract. - A performance bond could be used

Answer 525

◦ They typically permit funders to step into another parties' shoes, usually the employer. ◦ They provide funders protection in the event employer defaults on its loans. ◦ The funder can then take ownership of the development and sell it off if required. ◦ A key problem is that the main cause will often result from the developer not being able to sell the development resulting in them being in arrears. ◦ The funder will stand less of chance of selling the asset than an experienced developer.

Answer 526

The ordinary skill and care expected of an ordinary competent man carrying out the particular service.

Answer 527

◦ The provision of a service that is suitable for the employer's intended purpose. ◦ It is clearly a more onerous obligation than reasonable skill and care.

Answer 528

◦ A surety bond is a guarantee from the surety in favour of the employer that the contractual obligations will be fulfilled by the main contractor. ◦ The bond if called upon will provide financial compensation up to a stated value if the other party does not fulfil their obligations under the contract. ◦ It does not guarantee the completion of the works.

Answer 529

◦ It must be in writing, it is common for it to be executed as a deed. ◦ It will contain a duration, usually until practical completion and a financial limit.

Answer 530

◦ An alterative to the normal contractual relationship provisions whereby the employer holds retention money from the contractor which does not help the the Contractor's cash flow. ◦ A bond will increase in value from the the start of a project to mirror retention normally held throughout the project. ◦ They may reduce in value upon completion. ◦ Clients need to be wary of hidden costs to the employer such as lost interest on retained monies and the cost of the retention bond being passed to the employer through the tender price. ◦ The choice of a bond may benefit the contractors cash flow.

Answer 531

When the client does not wish to hold retention on the contractor, but requires some assurance or financial cover for rectifying defects at the end of the contract in the event that the contractor fails to return and correct them himself.

Answer 532

◦ An arrangement where the contractual performance of one company in a corporate group is underwritten by the other members of that corporate group. ◦ This means that it must complete the works itself if it can or pay the financial equivalent.

Answer 533

* Performance bonds.

Answer 534

◦ Performance bonds are typically provided by banks or insurance companies. ◦ They give the employer a guarantee of payment up to a stated amount of money should they suffer a loss as a result of the contractor's breach of his contractual obligations.

Answer 535

10% of the contract value, The premium of taking out the bond is typically added to the contract sum

Answer 536

They have to prove that the contractor has defaulted in their obligations under the main contract and that loss has been suffered.

Answer 537

This covers the party inviting the tender if the lowest tenderer refuses to enter into a contract with them.This can be important if the inviting party is in tum tendering for work on the basis of that tender. ◦ It should also prevent idle tendering as there is an incentive to submit a price.

Answer 538

◦ A final account that is prepared when the Main Contractor is facing insolvency. ◦ This will typically be of a greater value than the original forecast final account due to costs incurred by the client to appoint a new Contractor to complete the works.

Answer 539

It covers the employer against loss or damage to materials already paid for through interim valuations before the materials are delivered to site.

Answer 540

◦ They shouldn't really be needed if the tenderer selection process is operated effectively as only reliable and capable contractors are then selected. ◦ Unnecessary premiums are added to the contract sum, which are unlikely to be called upon. ◦ If the developer is a serial developer this may add a lot of money to their project costs.

Answer 541

◦ If the contractor is new or unproven. ◦ To protect the interests of a one off developer. ◦ In a difficult economic climate, when the risk of insolvency is higher and PCGs are risky.

Answer 542

◦ They are not as secure as Bonds because of the financial link between a parent company and subsidiary ◦ Whereas a performance bond is provided by a third-party finance institution. ◦ Advantages are that they do not need to be paid for, they can be unlimited, and they can make the Parent company responsible for performance as well as a financial guarantee. Common in transactions with SPV companes

Answer 543

◦ An 'on demand' bond is one which is paid straight away upon the default occurring and request for payment. ◦ There is no requirement to satisfy any review or specific condition to demonstrate the default. Whereas with conditional Bonds, the employer must satisfy the surety that the default has occurred and the bond must identify what this condition is. It may also require ligation or arbitration resulting in delays and costs.

Answer 544

◦ A Developer who undertakes speculative housing developments will frequently be required to enter into an agreement with a Local Authority for the adoption of roads and sewers. ◦ If for any reason the Developer fails to complete the adoption of the roads and sewers to the required standards then the Local Authority will complete this on his behalf and call on the bond to claim back costs.

Answer 545

◦ To provide assurance that the contractor will perform these obligations, a Parent Company Guarantee (PCG) or a Performance Bond may be provided ◦ A PCG can only be used where the contractor is a subsidiary to another company. ◦ The parent company guarantees the performance and will become liable if it does not perform. ◦ Alternatively, a performance bond can be provided by the assurers and is used to protect the client in the event the contractor does not perform in the event that specific performance requirements are not met.

Answer 546

◦ The purpose of indemnity is to protect against legal responsibility or to compensate, is open ended. ◦ Insurance is a fund that enables the indemnifying party to make any payments that may arise. It includes time and financial limits. ◦ The contract sets out the insurances required to cover the indemnities that the party is liable for.

Answer 547

A transfer of a defined risk to an insurance company in exchange of a premium.

Answer 548

* Liability and loss insurance

Answer 549

* Financial cover for the legal liabilities that the insured party owes to others.

Answer 550

* Financial cover for losses that fall directly on the insured party.

Answer 551

A legal technique where the insurer steps into the shoes of the insured in order to take the benefit of any legal rights or remedies they may have against a third party responsible for the loss.

Answer 552

◦ Where the employer and contractor are insured under the same policy. ◦ It stops the insurer having the right of subrogation against the other party if they caused the loss.

Answer 553

◦ It is only useful to the contractor if the LOI is legally binding. ◦ In order for an LOl to be legally binding it must have the basis of a simple contract (offer, acceptance & consideration) & both parties must intend to create legal relations. ◦ Without either of these 4 criteria the LOI is worthless.

Answer 554

◦ Letters of Intent are used when an early start on site is required. ◦ They can be used to instruct initial design or survey works to be carried out or procurement of materials on a tight programme. ◦ LOls are issued to commence works while discussions are ongoing regarding the main contract.

Answer 555

◦ Selection of a particular subcontractor to carry out works, manufacture or supply of materials. ◦ This provides the architect and client with greater control of material choice and thereby quality. ◦ It is often used when there are long lead-in times with the employer placing orders prior to the Main Contract award which reduces potential delays on site. ◦ The Main Contractor is relieved of liability of design and compliance with the performance spec in addition to subcontractor delays in respect of the works that have been nominated.

Answer 556

◦ Any objections must be made during the tender period. ◦ There are specific exclusions and grounds for an objection for example if they have found out the subcontractor is having financial difficulties and may be going insolvent

Answer 557

◦ After the point of novation, the client would agree the level of design was satisfactory & would be signed off by all parties. ◦ The contractor would then become responsible for the Architect & his design should any problems arise during construction. ◦ Disputes may arise where it becomes unclear when problems have arisen, either prior to the transfer of services or afterwards.

Answer 558

* Set off are any monies owed to the employer by the contractor which are deducted against any payments due to the contractor.

Answer 559

◦ Statutory provisions are set out by law & must be complied with. ◦ Contract provisions relate to the contract in question & therefore only apply to a specific project.

Answer 560

◦ Once the certificate has been issued to the contractor, the client is contractually obliged to honour payment of the certificate and cannot withhold money without a valid reason. ◦ If this were the case, I would contact the client and contractor ASAP to arrange some form of payment. It may be the case that the client has insufficient funds available in time for the final date for payment and it may be possible to defer payment by 1-2 days. ◦ Failing this or if the contractor is unwilling to delay the payment, the client would need to find finance the payment through other funds to honour the certificate.

Answer 561

◦ Items would include: 1) Prelims. 2) Measured Works. 3) Materials on / off site. 4) Variations. 5) Claims. 6) Retention. 7) Previous payments.

Answer 562

◦ There is no obligation on the client to pay for materials off site if this is not identified in the contract. ◦ However in the scenario where the client wishes to pay for them, I would ultimately check with the client before paying or rejecting them.

Answer 563

◦ Whilst they are legally binding the difficulty lies in proving the specific terms and conditions of the agreement. ◦ It is for this reason why the Housing Grants, Construction & Regeneration Act only applies to written contracts.

Answer 564

◦ The main difference between the 2 forms is its usage. ◦ NEC can be used within the building & civil engineering projects whereas JCT is specifically for building projects. ◦ NEC can be adopted to a number of bespoke contract strategies due to the various options available whereas JCT has a standard set of clauses.

Answer 565

◦ latent defects are defects which are not readily identifiable upon inspection & only come to fruition some time after building completion and may take many years to become identifiable. ◦ A caim in contract can only be brought about within the liniation period of the contract, 6 or 12 years depending on whether the contract was executed as a deed or underhand.

Answer 566

◦ The Architect should issue an instruction as necessary to instruct the contractor what to do if they are identified. ◦ This can include telling them to comply with a third party who is examining or opening up the works to identify the defect. If the works or materials are not in accordance with the Contract what options does the Architect have available to them? ◦ The architect may:- ◦ Instruct the contractor to remove all defective work, materials and goods at their own expense and time. ◦ They can notify in writing that they can remain with an appropriate deduction being made from the contract sum. o Issue instructions for variations that are necessary as a result of the work. If they are necessary there should be no additional costs or extension of time given. Instruct the contractor to open up and test further work to determine the extent of any non-compliance.

Answer 567

◦ The significance of the non-compliance. ◦ Consequences of further non-complance on builing owners and users. ◦ Consequences of further non-compliance on adjoining properties and the public. ◦ Reason for the non-compliance. ◦ Level of supervision and control employed by the contractor. ◦ Currently recognised testing methods. ◦ Time and consequential costs of further opening up.

Answer 568

* A sum of money included in the contract for work that cannot be fully designed and costed at the time of tender or contract sum agreement. What types of provisional sum are there? * Defined and undefined Where are these defined? NRM

Answer 569

* A sum included in the contract for work that has not been completely designed at the time of contract sun agreement but for which certain specified information can be given about the extent of works, its quantity, duration of installation and how it is to be fixed to the building.

Answer 570

◦ They are deemed to have made proper allowances for carrying our the work in their programme and preliminaries. ◦ This means that contractors are not entitled to an extension of time or extra prelims for carrying out the works whatever the delay or cost of doing so to the contractor.

Answer 571

◦ If the description is not accurate it has to be amended. ◦ This will be treated as a variation. * This will entitle the contractor to an extension of time and extra preliminaries if appropriate.

Answer 572

* A sum included for work for which there is minimal or no information at the time of contract sum agreement. The location, quantity and time associated for the installation of the works is not fully known.

Answer 573

◦ They are not deemed to have allowed for anything. ◦ Expenditure of the undefined provisional sum may carry additional costs for programme or preliminaries as a result of carrying out the works.

Answer 574

* The provisional sums included in the contract are deducted and the actual amount substitute.

Answer 575

The actual cost and time exceeds that allowed for in the provisional sum because the nature of the item changes between tender and instruction.

Answer 576

◦ JCT. ◦ NEC 3 & 4.

Answer 577

◦ This is suitable where work has been designed prior to contract however there is no bill of quantities. ◦ The contract documents will include drawings, specification and a schedule of rates. ◦ It is a lump sum form of contract. ◦ The contractor's risk includes both price and quantity.

Answer 578

◦ This is a remeasurement form of contract. ◦ There is no fixed contract sum. ◦ It is used where the design is not completed at the time of execution. ◦ An approximate bill of quantities will have been prepared. ◦ Construction is aimed to commence prior to the design being completed.

Answer 579

◦ When the contractor is responsible for design and construction. ◦ The project should be similar in complexity to that of standard building contracts. ◦ The contactor's proposals for the basis of the contract. ◦ There is no mention of an architect or QS instead this role is replaced by the title of Employers Agent.

Answer 580

◦ The minor works only has 7 sections of conditions instead of 9. Variations are included within the Control of the Works section and there is no 'assignment and collateral warranties provision. ◦ There is no mention of the QS in minor works and D&B however there is in the Intermediate Form. ◦ In Minor Works there is no provision for named sub contractors, no provision for bonds and collateral warranties and no advance payment provision. ◦ Minor works also has no provision for sectional completion or partial possession. ◦ In Minor Works there are no relevant events listed for extension of time, instead it is referred to as 'anything outside the contractor's control'. ◦ The standard rectification period is 3 months for minor works and 6 months for D&B and Intermediate. ◦ The standard retention is 5% for Minor Works and Intermediate and 3% for D&B. ◦ D&B is administered by an Employer's Agent rather than a Contract Administrator. ◦ In Minor Works and the Intermediate Form, the Contractor may be responsible for completing discrete part of the design whereas in D&B, he is responsible for completing the overall design. ◦ In D&B, the EA may request a quotation prior to instructing a change. ◦ There is no fluctuation mechanism for labour and materials costs in Minor Works and Intermediate Foms. ◦ Payments are made at regular intervals in Minor Works and Intermediate Forms whereas D&B gives the option of stage payments. ◦ In Minor Works, there is no option for the employer to take out a joint name all risk policy, only options A and C. ◦ There is no provision for third party rights in Minor Works or Intermediate Forms.

Answer 581

◦ It would depend on why the EOT had been issued. ◦ The contractor would be entitled to costs over the Christmas period for prelims / site cabins if the reason for the EOT allows the contractor to claim L&E.

Answer 582

Yes the QS would become involved in assessing the financial implications of the EOT, if applicable.

Answer 583

Advantages of the NEC Contract ◦ They are applicable to a variety of procurement strategies, ◦ They offer clarity and simplicity by using:- ◦ Ordinary language (minimal legal jargon). ◦ They include flow charts to support their users. ◦ They act as a stimulus to good management through maintaining.- ◦ Up-to-date programmes which are required to be clear and precise. ◦ Provision of early warning procedures and risk registers. ◦ They Embody key features of project partnering. ◦ Assessment of Compensation events by applying a "rolling Final Account." Disadvantages of the NEC Contract ◦ They are often only considered to be used for civil engineering projects and partnerships. ◦ They have limited exposure to the market so they are therefore not fully tried and tested with supporting case law.

Answer 584

Advantages of the JCT Suite of Contracts:- ◦ They are considered by many as the "industry standard," therefore they offer familiarity. ◦ They cover most forms of procurement and building types through the various impressive ancillary documents to support the main forms. ◦ They are comprehensive in detail and considered by many to be fair and reasonable and not loaded in favour of either party. Disadvantages of the JCT Suite of Contracts ◦ They are sometimes though to "compromise conditions," in which they try to satisfy the interests of all parties. ◦ They can be considered as unnecessarily long and unnecessarily complex.

Answer 585

◦ The NEC is concise and written in plain English. ◦ There are a number of optional clauses reducing the need to amend contracts compared to the JCT. ◦ The Project Manager is presented with options to deal with problems as soon as they become apparent. ◦ Provision of early warning procedure and risk register encourage a proactive approach to the management of the project whereas JCT is more reactive. ◦ Compensation events deal with issues affecting both cost and time under NEC whereas under JCT, variations deals with money and loss and expenses deal with time. ◦ Changes are based on quotations prior to commitment whenever possible under a rolling final account under NEC whereas under JCT agreement of costs can be left to the very end of the project. ◦ Cost of compensation events are calculated using schedules of actual costs rather than bill rates under JCT. ◦ There is no QS or Employers Agent mentioned in NEC only a Project Manager who takes on both roles. ◦ The Programme is a contract document under NEC with 25% of money being deducted on interim payments if the contractor does not submit an accepted programme at contract stage. ◦ The NEC has no provision for nomination of sub-contractors but preferred sub-contractors can be listed within the Works Information. ◦ The Defects correction period has different periods specified depending on the impact of the defect under NEC where the contractor must "make good" in these time periods. This approach is much better at dealing with defects when compared to JCT. ◦ Short periods of reply are adopted under NEC which incentivise the parties to respond to each other however is reality the NEC maybe considered as very administration heavy. ◦ Retention and delay damages are optional clauses under NEC.

Answer 586

◦ The Project Manager can be from the employer's organisation or an external consultant. ◦ The Project Manager represents the client and has full authority to make decisions, unless the employer has restricted his authority. The PM has the duty to be impartial and to apply the contract. ◦ Designers prepare the work information and are not named in the NEC. ◦ The supervisor is either from the employers organisation or an external consultant. ◦ The supervisors role is to check that the works are carried out as described in the contract, ◦ They have a similar role to the clerk of works with authority such as instructing searches or issuing defect certificates.

Answer 587

◦ The role of the QS is not mentioned in the contract. ◦ The QS can adopt a supporting role to contractor and PM to agree cost of compensation events despite not being formally referenced. ◦ Options B and D involve quantities and measurement. ◦ Target costs under options C and D require an audit role in open book accounting in target contracts which the QS may be responsible for

Answer 588

◦ A risk register should be produced as soon as possible and regularly updated this is defined in clause 11.2(14). ◦ It should include the description of the risk and the mitigation measure, not the value or the owner. ◦ Employer's risks are listed in the compensation events (clause 60) and in the contract data (additional employer's risks). Everything else is deemed to be a contractor's risk. ◦ Caution: If ownership is stated in the risk register, it must match the contract conditions or it will create conflict. Compensation events can be added or deleted in Z clauses. Additional employer's risks are listed in the contract data. ◦ In case of discrepancy between the risk register and terms of the contract, it will be read in the favour of the party who didn't prepare the risk register, i.e. the contractor. ◦ If a sum is stated in the risk register neither party can claim for savings or compensation if the cost of the risk turns out to be less or more. ◦ Risks can only be transferred against a lump of money by modifying the contract conditions. The risk register is not contractual.

Answer 589

Events which, if they do not arise from the fault of the contractor, entitle the contractor to be compensated for effect on the prices, key dates and completion dates. There are 19 compensation events.

Answer 590

◦ They are notices given by the PM or the contractor of any matter which could potentially have an impact on cost, completion date, key dates or performance of the works in use. ◦ Their purpose is to give the parties sufficient time to consider the options available to prevent or mitigate the issue and collaboratively find the best solution to meet the employer's interests.

Answer 591

◦ The PM and contractor have duties to give each other early warnings for inclusion in the risk register as soon as they become aware of an event that may:- ◦ Increase the total of the prices. ◦ Delay Completion. ◦ Delay meeting a Key Date or impair the performance of the works in use. ◦ The PM is to record all the early warnings in the risk register, even if some may not be worth mentioning. ◦ Any party can call for a risk reduction meeting to review the early warning notices and collaboratively find the best solutions to meet the employer's interests. ◦ As early warnings are resolved, they are removed from the tisk register.

Answer 592

◦ The employer sets the access dates for areas of the works if applicable with the starting date, the key dates or milestones and completion date. ◦ The contract duration is not stated, the contractor must complete the works on or before the stated date. ◦ If the contractor fails to meet the completion date, delay damages apply if option X7 was selected. ◦ The PM must issue the 'notice of completion' within a week of completion. ◦ The programme is a contractual document. ◦ Clause 31.2 details the requirements of the programme:- ◦ Dates stated in the contract data and work information. ◦ Dates when the contractor intends to meet these requirements. ◦ Method statements. ◦ Order and timings. ◦ Float, and separate time risk allowances. ◦ Health and safety requirements. ◦ Dates when site access, information, plant and materials are to be provided by the employer will be required to meet the programme. ◦ The programme must be regularly updated and show the effects of early warnings.

Answer 593

◦ The Project Manager notifies the Compensation Event at the time of giving the instruction. ◦ Or the contractor notifies the Project Manager of the CE but he must do so within 8 weeks of becoming aware otherwise they are not allowed compensation. ◦ The PM has one week to decide whether it is a valid CE. (ot longer if agreed with the contractor). ◦ If the PM fails to do so, the contractor notifies the PM that he needs to make a decision. If the PM still does not respond within 2 weeks of this notification, the CE, is deemed to be accepted and the contractor can submit a quotation. ◦ The contractor has 3 weeks to provide a quotation. ◦ Within 2 weeks, the Project Manager can either request a revised quotation, or accept the quotation, or inform the contractor that the proposed change is not being pursued, or inform the contractor that he will make his own assessment. ◦ If the PM failed to respond within the timescales, the contractor notifies him. If the PM fails to respond within a further 2 weeks, the quotation is deemed to be accepted. ◦ Timescales can be extended if the parties agree.

Answer 594

What is the contractor's design liability under JCT contracts? * The same as an independently employed architect with the duty to offer reasonable skill and care.

Answer 595

The overall process of acquiring construction work or services.

Answer 596

◦ The specifics of the project. ◦ The client objectives regarding: ◦ Cost. ◦ Time. ◦ Control. ◦ Quality. ◦ Risk.

Answer 597

◦ Traditional ◦ Design and Build. ◦ Management Contracting ◦ Construction management.

Answer 598

The design is completed by the client's design team before competitive tenders are invited and a main contractor is employed to build what the designers have specified.

Answer 599

◦ The contractor takes responsibility and financial risk for the construction of the works to the design produced by the client's design team for the contract sum within the contract period. ◦ The client takes the responsibility and risk for the design and design team performance.

Answer 600

◦ If the employer has had the design prepared. ◦ If the design is substantially completed at time of contractor selection. ◦ The client wishes to retain control over the design and specification. ◦ If cost certainty at start on site is important. ◦ The shortest overall programme is not the client's main priority

Answer 601

Where the contractor is responsible for the design, planning, organisation, control and construction of the works to the employer's requirements. The employer gives the tenderers the Employer's Requirements' and the contractors responds with the "Contractor's Proposals, which include the price for the works.

Answer 602

◦ Where there is a need to make an early start on site so there can be overlap between design and construction. ◦ Where the client wishes to minimise their risk as they transfer design responsibility to the Main Contractor. ◦ For technically complex projects requiring the contractor's expertise. Where the employer does not want to retain control over design development.

Answer 603

A management contractor is employed to contribute their expertise to the design and to manage construction with a management fee being paid to them for doing so. The management contractor has direct contractual links with all of the works contactors. ◦ They have the responsibility for the construction works without actually carrying them out. ◦ Not all of the design need be completed before the first works contractors start work. ◦ The MC selects the works contractors through competitive open book tender. ◦ The client reimburses the cost of these packages to the MC plus their management fee.

Answer 604

◦ Where the client does not want cost certainty before commencement. ◦ Where an early start on site is a priority.

Answer 605

◦ There is a single point of responsibility for the design and construction. ◦ There is earlier commencement on site. ◦ Early price certainty is increased. ◦ The client can benefit from the contractor's experience harnessed during the design.

Answer 606

◦ Clients may find it hard to prepare a sufficiently comprehensive brief. ◦ The Client has to commit to a concept design early. ◦ Variations from the original brief are difficult to arrange and are often expensive. ◦ It is harder to compare tenders and harder to determine whether value for money is being achieved.

Answer 607

◦ This depends on the amount of design work the employer has already had completed at time of tender. ◦ This can range from full design to production information and coordination only.

Answer 608

◦ It may be outsourced to a separate design company (contractor retains responsibility). ◦ They may have in-house design capabilities or the client's team may be novate.

Answer 609

◦ Retaining control over the design can lead to higher quality. ◦ It offers increased levels of cost certainty before commencement ◦ Design changes are reasonably easy to arrange and value.

Answer 610

◦ The overall project duration may be longer than others due to lack of overlap between design and construction. ◦ There is no input into design and planning by the contractor. ◦ A strategy based on price competition can lead to adversarial relations. ◦ There is a dual point of responsibility with the design team controlling the design and the contractor retaining responsibility for the construction.

Answer 611

◦ Overall project duration is shorter due to overlapping design and construction. ◦ There is contractor contribution to the design and planning process. ◦ Changes can be accommodated in packages not yet let if they have no further impact. ◦ The works are let competitively at current market prices on a firm price basis.

Answer 612

◦ The price for the works is not received until the last package has been let. ◦ Changes to the design of later packages may affect packages already let. ◦ There is little incentive for the Management Contractor to reduce costs. ◦ In practice, the MC has little legal responsibility for the defaults of the works contractors.

Answer 613

The employer places a direct contract with each of the trade contractors and utilises the expertise of a construction manager who acts as a consultant to coordinate the contracts. How does it work? ◦ The trade contactors carry out the work. ◦ The construction managers supervises the construction process and coordinates the design team. ◦ The construction manager has no contractual links with the trade contractors or members of the design team. * Their role includes preparation of the programme, determining requirements for site facilities, breaking down the project into suitable works packages, obtaining and evaluating tenders, co-ordinating and supervising the works.

Answer 614

◦ On large, complex projects where the advantages of Construction Management can be utilised for example using upfront buildability knowledge of the Construction Manager and their programme advice including specialist input from trade contractors. ◦ Where an early start on site date is key. ◦ Maintenance of flexibility in design and construction strategy. ◦ Where price certainty before commencement is not considered a key driver. ◦ Where the client is experienced in construction.

Answer 615

◦ The overall project duration is reduced by overlapping design and construction. ◦ The construction manager can contribute to the design and project planning processes. ◦ Roles, risks and relationships for all parties are clear. ◦ Changes in design can be accommodated without paying a premium. ◦ Prices may be lower due to direct contracts with trade contractors. ◦ The Client has a means of redress to trade contractors through direct contractual links.

Answer 616

◦ Price certainty is not achieved until the last trade package is let. ◦ Changes to packages may adversely affect packages that are already let. ◦ The client must be proactive and hands on. ◦ The client has a lot of consultants and contractors to deal with.

Answer 617

Under construction management the client is in direct contractual relationships with each of the trade contractors and the construction manager isn't. Under management contracting, the Main Contractor is in direct contractual relationships with the trade contractors and the client is in contract with the Main Contractor only.

Answer 618

* Through detailed discussions with the client and design team to identify their priorities in terms of cost, time, quality, risk, control requirements and experience.

Answer 619

◦ My recommendation would need to take into account their other requirements such as cost and quality. ◦ If time was their overriding priority, then Construction Management or Management Contracting may offer the best solution as they can offer the fastest start on site with overlap of the design and construction. ◦ This is because start on site is not dependent upon a long tender period however the key trade off is a reduction in cost certainty.

Answer 620

◦ Design and build procurement may offer the best solution. ◦ This is because it allows the design and construction to be overlapped rather than being sequential. ◦ Design and Construction risk is transferred to the Main Contractor with their tender being based on a lump sum price to offer high levels of cost certainty.

Answer 621

Guaranteed maximum price. ◦ A lump sum contract under which there is no adjustment of tender price unless design changes are requested by the client. ◦ The contractor includes the additional risks involved in the design development process in his tender price

Answer 622

◦ Private Finance Initiative. ◦ A government programme launched in 1992 to bring private sector project management and expertise into the public sector. ◦ The private sector is granted a concession to finance, design & build and operate major public projects such as schools and hospitals.

Answer 623

◦ Financially free-standing - Projects costs are recovered by charging users for example toll roads and bridges. ◦ Joint Venture - Public and private sector stakeholders both invest however the private sector has overall control. Contributions and allocation of risk are clearly defined. ◦ Services Sold - The capital expenditure for the project is financed by the private sector and then sold back to the public sector. The public sector requires clear demonstration that this provides better value for money than option 1 and 2.

Answer 624

◦ Its use is recommended where it offers clear value for money when compared against traditional public sector procurement. ◦ It is generally considered more appropriate for larger projects of value greater than £20m and where there are significant ongoing maintenance requirements.

Answer 625

◦ High bidding costs are associated with PFl projects can take longer to procure than traditional projects ◦ Value for money is hard to achieve as the cost of private borrowing is more expensive than public sector borrowing. ◦ Long term and inflexible contracts are formed which cannot respond to demographic changes. For example, a reduction in school cohort numbers can lead to empty classrooms being paid for by local authorities.

Answer 626

◦ A facility is designed, financed and constructed by the private sector and then leased back to the government for a predetermined period of time at a pre-agreed rental cost. ◦ The facility is owned by the private sector partner during the lease period, at the end the government can renew the lease, buy out the private sector partner or walk away from the deal. ◦ Operation and maintenance of the facility during the lease period is usually the government's responsibility. ◦ This provides the public sector with a way of financing large-scale infrastructure projects based on ongoing revenue rather than using high levels of capital expenditure. ◦ The primary disadvantage is that legal ownership remains with the private sector.

Answer 627

◦ The facility is designed, financed, operated and maintained by a concession company, for the period of the concession. ◦ Ownership of the facility is vested in the host government from the time of construction completion. ◦ At the end of the period, the concessionaire's involvement in the project ends and all operating rights and maintenance responsibilities revert to the host government. * The concessionaire retains all toll income during the agreed period.

Answer 628

◦ A long term approach of structuring business relationships. ◦ It involves two or more organisations working together to achieve specific mutual objectives and deliver continuous measurable improvements.

Answer 629

◦ All members of the professional team become involved in the partnering process at the design stage including contractors. ◦ Ownership of risk is spread between the parties and a collaborative approach is encouraged to delivering the solution and overcoming problems.

Answer 630

◦ A long-term relationship that is established with a view to undertaking a number of projects over a long period. ◦ Framework agreements are used to set out the overriding contractual terms with fixed terms and conditions for future purchases. ◦ Projects and services are then draw down on a project-by-project basis.

Answer 631

◦ More trust is achieved between the parties. ◦ There is a reduced risk of adversarial relationships as pre-determined contract conditions are agreed by all parties in advance. ◦ Increased cost certainty and speed of calling off contracts is gained.

Answer 632

◦ The overall construction and design programme is shortened because their is a prior understanding of the Client and their requirements from previous projects. ◦ The potential for conflict is reduced. ◦ Communication is improved. ◦ Pooling of resources and ideas should result in innovative solutions. ◦ Improved client satisfaction is gained. ◦ Recognition of protection of profit margin for contractors and suppliers. ◦ A team environment is formed that encourages innovation and technical development. ◦ Improved buildability with early involvement of contractors. ◦ Better predictability of time and cost.

Answer 633

A structured procedure for generating quotations from suppliers or contractors looking to obtain an award of business activity either under competition or via negotiation with a single contractor.

Answer 634

◦ Open tendering. ◦ Selective tendering. ◦ Single or Two Stage. ◦ Negotiated tendering. ◦ Serial tendering.

Answer 635

◦ This is an indiscriminate request for tenders to be submitted to the open market. ◦ This could be achieved by advert placement in local papers or technical press inviting contractors to apply for the tender documentation. ◦ There are little or no barriers to entry needed to submit a tender.

Answer 636

* It provides opportunities for capable firms which the clients may have not previously considered. * It should secure maximum competition from the open market.

Answer 637

◦ There is a danger of increased errors within the tender submission due to a risk of inexperienced contractors that have no prior understanding of the clients requirements. ◦ There is no assurance that the lowest tenderer is capable or financially stable. ◦ The total cost and time needed to review the tenders is increased.

Answer 638

This restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work.

Answer 639

◦ Single stage. ◦ Two stage

Answer 640

A structured process of receiving competitive tenders from a number of pre-selected capable contractors. ◦ Contractors are pre-selected based on:- ◦ Financial standing. ◦ Qualifications and certifications. ◦ Previous track record. ◦ References. ◦ Organisational structure. ◦ Capacity and resources. ◦ Size of work previously undertaken.

Answer 641

◦ It ensures only capable and approved firms submit tenders. ◦ It tends to reduce the aggregate cost of tendering. ◦ It reduces the risk of receiving tenders from unsuitable contractors.

Answer 642

◦ Two stage tendering is where the Client seeks to appoint the Contractor based on an outline scope of work that is not fully defined. ◦ The client then works with the appointed contractor to develop the scope of work and reaches an agreed price. ◦ It can be used when it is useful to obtain the contractors buildability expertise on the planning of the project and gain an earlier contractor involvement.

Answer 643

◦ The client provides an outline project design to each of the tenderers. ◦ The tendering contractors will submit prices for helping the client develop and finalise the design using their buildability expertise. Tender submissions will typically consist of:- ◦ A schedule of rates that will be used to calculate the agreed price during stage 2. ◦ A price for assisting the client with design development and buildability expertise during stage 2. ◦ Confirmation of the contractors Overheads & Profits Percentage. ◦ A preferred contractor is then appointed to assist with developing the design further.

Answer 644

Following development of the design to a defined stage, a formal negotiation process is undertaken during stage 2 to agree:- ◦ The final price. ◦ The contract conditions. ◦ Programme.

Answer 645

◦ Detailed build up of prices for the preliminaries items. ◦ Percentage additions for profit and overheads. ◦ A construction programme. ◦ Proposed sub-letting of the works.

Answer 646

◦ Early involvement of the contractor. ◦ Encouragement of collaborative working. ◦ Potential for an earlier start on site. ◦ Greater client involvement in selecting the supply chain. ◦ The contractor can help identify and manage risk.

Answer 647

◦ Cost certainty may not be achieved before construction starts. ◦ Additional pre-construction fees are incurred for the main contractor. ◦ The contractor could take advantage of second stage negotiation and increase costs. ◦ There is the potential for parties to not agree the contract sum with a risk of retendering.

Answer 648

◦ With a complex building. ◦ Where the magnitude of work is unknown at time of contractor selection. ◦ If early completion is required. ◦ Where the design team would like to make use of contractors expertise on buildability issues.

Answer 649

* Where the client has an existing preference for appointing a particular firm and only negotiates with one contractor. * When the contractor has carried out work successfully for the client previously where they have an existing relationship.

Answer 650

◦ There is no competition and only one contractor is invited to tender. ◦ The contract sum is arrived at by a process of negotiation. ◦ Schedule of rates or prices from previous projects may be used as the basis of agreeing a price.

Answer 651

* Contractors are asked to bid for a project on the basis that if they complete the initial project satisfactorily, other projects of a similar type will follow and the same bill rates will be applied.

Answer 652

◦ A bad client & contractor relationship. ◦ A dissatisfied client. ◦ An insolvent contractor

Answer 653

In accordance with JCT practice note 2017 I would include: ◦ Invitation to tender letter ◦ Instruction to tenderers with:- ⁃ The date and time for return, to whom, site visits, programme, errors procedures, scoring matrix. ◦ Conditions of proposed contract. ◦ Pricing documentation. ◦ Specifications. ◦ Drawings. ◦ Employers requirements. ◦ Pre-construction H&S information. ◦ Form of tender.

Answer 654

◦ A pre-printed formal statement in which the tenderer fills in the blank spaces. ◦ The tenderer provides their name, address and the sum of money for which they offer to carry out the works.

Answer 655

◦ They set out the client's requirements including the function, size, accommodation and quality requirements of the project. ◦ Their level of detail depends on how much design development has been carried out prior to tender. ◦ They normally includes the current state of planning permission. ◦ It should also detail the level of design, structure and specification information to be provided by the tenderers.

Answer 656

◦ The contractors response to the employers Requirements. ◦ They are the key documentation for the client to consider at the tender review. ◦ They often include plans, elevations, sections and typical details. ◦ Layout drawings and specification for materials and workmanship are also provided.

Answer 657

◦ Details of contract particulars. ◦ Company turnover. ◦ Previous relevant experience and references. ◦ Company accounts. ◦ Management and organisational structure. ◦ Health and safety records. ◦ Quality systems and environmental policy. ◦ Provision of bonds, warranties & PCGs.

Answer 658

◦ It depends on the procurement process and size of the project. ◦ If a traditional procurement route with a BOQ is being adopted then I would usually allow around a month in order for the MC to obtain pricing information from their sub-contractors. ◦ For large complex schemes the tender period would need to be longer. ◦ If the tender is the first stage of a two stage tender then the tender period may be a shorter duration of 2-3 weeks. ◦ It is better to ensure there is sufficient time so contractors can price the project correctly rather than rush and encourage contractors to price a high risk element into the tender.

Answer 659

◦ Verbal either in person or via telephone. ◦ Non-verbal such as body language, eye contact, gestures and appearance. ◦ Written for example e-mails and letters. ◦ Graphical information such as charts, diagrams and tables. ◦ Presentations. ◦ Video conference.

Answer 660

◦ Building Location. ◦ The type of building. ◦ Floor area or number of functional units. ◦ Storey height. ◦ Whether raised access floors or deep suspended celling are envisaged. ◦ Initial floor plans, roof plans, elevations and sections. ◦ Requirements for refurbishment to existing buildings and enabling works. ◦ Indication of specification and quality. ◦ Indicative programme, procurement and contract strategy. ◦ Budget & cashflow constraints. ◦ Site conditions, probable ground conditions. ◦ Indicative M&E design intent, availability of utility services and the sustainability strategy. ◦ Details of professional fees, development costs, VAT and treatment of inflation.

Answer 661

◦ The design team will typically be brought together in a meeting including the Client, Quantity Surveyor, Architect, Engineers and potentially the Main Contractor and specialist subcontractors. ◦ The team will pool together their expertise and suggest different value engineering proposals. ◦ The chairperson of the meeting should monitor the proposals against the clients' objectives around value. ◦ It is the chairperson and teams responsibility to deliver increased value for money by offering cost effective solutions without compromising the overall usefulness of the building when considering the clients objectives.

Answer 662

The principle of client care is looking after the clients' best interests and providing an appropriate level of service that satisfies the client's needs and achieves VEM. ◦ Client care can be provided through: ◦ Professionalism. ◦ Competence. ◦ Punctuality. ◦ Trust. ◦ Reliability. ◦ Presentation. o Regular communication. ◦ Review of services provided and standard. ◦ KPIs to monitor client satisfaction. ◦ Client Performance Feedback.

Answer 663

◦ The majority of work is developed through repeat business from existing clients. ◦ Therefore, it is important not only for the client to achieve their requirements but also for the company to encourage repeat businesses where possible. ◦ Providing that the Client's satisfaction is maintained, positive testimonials can be achieved and word of mouth recommendations will be generated. ◦ However dissatisfied Clients can be very damaging as negative feedback and experiences can spread quickly. ◦ Providing excellent client care can also reduce the potential for negligence claims to arise.

Answer 664

Client performance feedback is the process of gathering and acting on feedback from the client. This comprises: ◦ Gathering feedback during and after project completion. ◦ This is usually carried out by an independent person. ◦ The feedback sets the standards for the company and identifies areas for improvement. ◦ It encourages open discussions with the client to ensure satisfactory service is delivered and that goals are achieved ◦ It also provides an opportunity to gain future work for the company. o CPF is usually carried out at regular intervals (3-6 months) to ensure any problems can be identified and rectified as early as possible.

Answer 665

◦ I would look to achieve this by holding Client Account Planning Sessions. ◦ Each client & project is different & their needs would be assessed on their own merit, this could be achieved by:- ◦ Holding discussions regarding project key deliverables & the scope of services required. ◦ Reviewing past CPF scores & identifying key areas for improvement. ◦ Reviewing any complaints to identify mistakes and best practice methods of working.

Answer 666

◦ The purpose of 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 and operational requirements of the finished project. ◦ It 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.

Answer 667

◦ Despite working on multiple commissions I always try to ensure that I prioritise each client's needs accordingly. ◦ My approach is to always make the client feel like their project is the only commission I am working on. ◦ Through organisation and communication I can meet the deliverables of each client in advance of the agreed deadlines and am always sure to deliver work to a high standard.

Answer 668

◦ If there is a Conflict of Interest. ◦ If the appointment is would not be in the clients' best interests. ◦ My firm may not be able to resource the job adequately. ◦ If the project is outside of my skillset. ◦ If the work was unlawful.

Answer 669

My firm has its own procedure for preparing fee submissions, this comprises: ◦ Finding out what the client's requirement are and identifying whether this is a service that we provide. ◦ A bid or no bid form is populated to identity if this is suitable for the business by considering the risks involved. There are varying levels of sign off depending on fee value prior to submission.

Answer 670

◦ The Executive Summary including reference to the Scope & Solution. ◦ Identification of the Client's needs & key deliverables. ◦ Identification and analysis of Project issues. ◦ Communication of key Benefits for the Clients. ◦ References to relevant experience. ◦ The Conditions of engagement. ◦ A Methodology. ◦ An Organogram. ◦ The proposed fees. ◦ Supporting CVs. ◦ References to the project programme. ◦ Identification of sub consultants. ◦ A List of quality assurance procedures

Answer 671

◦ I would use a screening process to check the client's finances, this could include:- ◦ A company search using the Companies House website to obtain their account information. ◦ An Experian credit check. ◦ An Internet search using their website for additional information and to make a judgement on their reliability.

Answer 672

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

Answer 673

◦ I would review the work involved with the commission based on the level of information available. ◦ I would calculate the time & number of individuals required to undertake the work & multiply it by an hourly rate adding a suitable allowance for over heads and profits.

Answer 674

◦ We undertake formal project reviews with the client every two months. ◦ In my day-to-day involvement with the client I look to obtain regular informal feed-back through verbal and email communication. ◦ We undertake a satisfaction survey questionnaire at the end of each project.

Answer 675

The RICS specifies 2 stages as a minimum: ◦ Stage 1 - The complaint in the first instance is reported to a Senior Member of the firm or the designated complaints handler. ◦ Stage 2- If the complaint cannot be resolved this is referred to the independent redress mechanism. ◦ The person is invited to make a complaint in writing to our designated complaint handler who will investigate the complaint with all parties involved and advise the complainant of any action taken within 21 days. ◦ If the complainant is not satisfied, the complaint is escalated to the Regional Managing Director who will take action and respond within 21 days. ◦ Should the complainant remain dissatisfied, the matter can be escalated to the RICS independent redress mechanism.

Answer 676

◦ I am always sure to ask questions and listen to the client on key challenges and issues they are facing. ◦ I also use client's briefing checklists where applicable. ◦ There have been times when I have not received an adequate briefing from the client and in these instances I am sure to ask for further clarification on their specific requirements.

Answer 677

◦ I am transparent and honest about my actions at all times. ◦ I leam about my client and their long term objectives in addition to key challenges they are facing. ◦ I only act inside the parameters of my level of expertise and competence. ◦ I always act in a professional manner. ◦ I always provide a high level of service. How do you encourage repeat business? ◦ I provide high levels of service and customer care during projects. ◦ I regularly obtain feedback and act on it. ◦ By dealing with complaints honestly and effectively. ◦ Through keeping in touch with clients even when we have no live projects with them. ◦ Organising business development activities such as social events or CPD's.

Answer 678

◦ The advantages are quicker and clearer lines of communication. ◦ A better understanding of the client's culture, needs and expectations can be determined. ◦ The disadvantages are the loss of technical support from colleagues and a possible isolation from my own organisation's culture.

Answer 679

◦ Office Teams. ◦ Project Teams. ◦ Accounts Teams. ◦ Design Teams.

Answer 680

◦ This will be specific to the candidates own experience. ◦ In your response it is beneficial to explain in the past tense, the experience you have gained working as part of the team, key principles may be based around:- ◦ Utilising the teams strengths and weaknesses. ◦ Harnessing the expertise of each specialist within the team. * Problems that the team overcame. * Explain how the team decided on a strategy. Explain the end outcome. * Explain how the team communicated and worked towards a common goal.

Answer 681

◦ Bruce Tuckman's theory focuses on how a team approaches a task. There are 5 phases 1) Forming - Assembly of team - Planning, collating information and bonding 2) Storming - Address task by suggesting ideas - Strong facilitative leadership crucial 3) Norming - Agreeing rules and values of operation. 4) Performing - Identified by high levels of independence, motivation, knowledge and competence. - Decision making is collaborative 5) Adjourning / Transforming - End of the project and breakup of the team - The team can return to any phase, typically this is Forming

Answer 682

Frederick Herzberg's theory is a two factor motivational theory based on hygiene and motivational factors; ◦ Workers are encouraged to work harder based on motivational factors such as empowerment, job enlargement and job enrichment. ◦ Workers can become de-motivated if hygiene factors are not met such as remuneration, comfortable working conditions and annual leave entitlement

Answer 683

◦ Diversity in the workplace relates to the acceptance and inclusion of employees of all backgrounds. ◦ Ensuring diversity in the workplace is an important asset of an organisation as it acknowledges the individual strengths of each employee and the potential they bring.

Answer 684

* Increased productivity - A diversity of talent will result in a broader range of skills amongst the team and result in increased productivity. ◦ Increased creativity - Differing skill sets and perspectives within the team will increase the chance of generating solutions to workplace problems. ◦ Improved cultural awareness - A diverse range of cultures within the workplace allows companies to operate more effectively within a global market place. For example, having access to an employee who speaks Mandarin will be a great asset for a company operating in China. * A positive reputation - Companies that have a diverse workplace are often perceived as better employers. Potential employees want an employer who accepts and is tolerant of all backgrounds and who treats their employees fairly.

Answer 685

◦ A culturally inclusive environment requires mutual respect, effective relationships, clear communication, understanding of expectations and critical self-reflection. ◦ Within an inclusive environment, people of all cultural orientations can freely express who they are, their own opinions and points of view.

Answer 686

According to Deloit's article on diversity and inclusion, it states, "A growing body of research indicates that diverse and inclusive teams outperform their peers. Companies with inclusive talent practices in hiring, promotion, development, leadership, and team management generate up to 30 percent higher revenue per employee and greater profitability than their competitors".

Answer 687

The main legislation within the UK that applies to Equality, Diversity and Inclusion are the Equality Act 2010 and The Human Rights Act 1998.

Answer 688

◦ Inclusion within the workplace is creating an environment and culture where all company employees feel like they belong in the organisation. ◦ This results in every employee being comfortable to voice their opinions and that no one person feels excluded on the basis of their identity.

Answer 689

◦ Unconscious bias refers to the associations and assumptions that a person may have about someone solely because of their race, gender or disability. ◦ These judgements are made without conscious awareness. ◦ These automatic assumptions and stereotypes are a major contributor to a lack of workplace diversity.

Answer 690

◦ Cost value reconciliation is used to measure the projects ongoing costs and income against budgeted values at the start of the project. ◦ This allows the profitability of the project to be determined at a given point in time throughout the project lifecycle.

Answer 691

I would determine the cumulative costs and value of the project to a set given point in time. The cut-off date may coincide with an agreed accounting period or month end period which I would establish with the project management team. I would carry out cost checks to ensure that: ◦ No high value fluctuations in costs or value are expected during the reporting period. ◦ That all work in progress is accounted for and the reported values are inline with subcontractor's measures and liabilities. ◦ Risk and contingency items have been included for items not yet agreed. ◦ When all costs and value items are finalised I would then determine the current profitability of the project and compare this against the original budgeted values.

Answer 692

◦ The forecast revenue on variations is only reported when variation items are agreed. ◦ A reduced percentage profit is assumed if variations are paid on account or partly agreed. ◦ Contingency items are retained with the CVR for any unknown or pending cost items. ◦ I regularly arrange meetings to conclude the agreement of variations for each of the sub-contract packages so a backlog of items pending does not form.

Answer 693

◦ A cash flow analysis highlights the movement of income and expenditure into and out of a business over time. ◦ If the level expenditure going out of the company is higher than the income, the cash flow is classed as cash negative and may highlight the need to make additional funding arrangements. The cash flow analysis will typically be based on a number of factors such as: ◦ Under or over valuation of works complete and the impact this may have on cash flow. ◦ The contractual payment process so that the incoming payments can be accurately profiled. ◦ Month end dates for payments of salaries, leases and other fixed costs. ◦ Credit arrangements with subcontractors and suppliers. ◦ It is important for contracting organisations to maintain positive cashflow where possible in order to avoid the need for expensive borrowing arrangements.

Answer 694

◦ To calculate the project incomes I would look to utilise the agreed payment schedule set out under the terms of the contract, the programme and the BoQ or Activity schedule. ◦ I would then accurately profile when the income is anticipated to be received and plot these dates on the cash flow forecast. ◦ If this information is not available it may be possible to use information cash flow analysis software to plot a typical S-curve. ◦ For the outgoings I would liaise with the supply chain to gain an insight of when invoices and payments are expected to become due taking extra care to account for any long lead items.

Answer 695

◦ Accruals are made within the financial accounting systems that are operated to take into account anticipated invoices that are not yet paid. ◦ The accrual can be calculated as the difference in the total liability that is due to a sub-contractor or supplier against the amount already paid to date. ◦ The accruals are retained as anticipated cash outflows not yet incurred and in theory the older the accruals are, the less likely they are to paid and may be released at a given point in time.

Answer 696

◦ Contra charges are issued as a deduction to a sub-contractors works package as a result of a cost item that has been incurred due to their activity on site. ◦ For example a contra charge could be issued due to damage of property or equipment due to a subcontractor's failure to put in place adequate protection of their working area.

Answer 697

◦ I would attach supporting photographs, invoices and site records to the contra charge. ◦ Any replacement materials or attendances provided to assist the subcontractor would also be recorded. ◦ I would issue an early warning to the subcontractor's commercial representative to make them aware of the contra charges being made and provide then with an opportunity to rectify the damages if possible. ◦ I would try to ensure the contra charge is agreed with the sub-contractor prior to making adjustments to any payment certificates or running final accounts. ◦ When issuing subsequent payment certificates, pay less notices or final account adjustments, I would clearly set out the contra charges as an individual line item for transparency with supporting substantiation attached.

Answer 698

◦ A risk and opportunity register summaries the potential or hypothesised risks that are specific to the project ◦ Whilst the format and content may vary depending on the nature of the project, its size and value, they will typically include an assessment of the likelihood of each risk and the potential impact it may have on the project if it is realised.

Answer 699

The register will typically be compiled in a tabulated form with columns provided for: ◦ The name and description of the risk item. ◦ An explanation of how the risk will impact the project. ◦ The likelihood of the risk occurring. ◦ A risk grade based on the probability multiplied by the impact. ◦ A risk classification of either High, Medium or Low. ◦ A summary of mitigation actions to be taken. ◦ The risk owner. ◦ The potential cost of the risk. ◦ A deadline date of when the risk is to be closed

Answer 700

◦ Company overheads are ongoing expenses incurred as a result of the day-to-day operations of the business. ◦ They are items that need to be incurred in order to provide critical support to the revenue generating arms of the company for example factory rental costs, heating and lighting. ◦ They are classified as fixed overheads which do not change for example monthly rental costs and variable overheads which do change depending on business activity for example heating costs.

Answer 701

◦ Reporting, invoicing and processing of payments is done on a cumulative basis to ensure the full extent of the financial information is accounted for. ◦ If this is not adopted and invoices are made 'in the period' mistakes can be made and double counting may take place. ◦ It is much safer to work on a cumulative basis as the risk of double counting or missing invoices is reduced.

Answer 702

◦ Earned Value Analysis is a technique used to forecast the final financial position of a project. ◦ The technique compares the current progress achieved to date with the planned progress at a given point in time. ◦ It also considers the current costs incurred with planned costs over the same time period. ◦ The EVA determines what value of work would have been achieved and what costs would have been incurred if the works had been on programme to forecast future performance and to highlight potential cost overspends and time overruns.

Answer 703

◦ Utilisation of payment and valuation schedules to ensure all parties are aware of key dates in accordance with the contract and Housing Grants Construction and Regeneration Act. ◦ Running final accounts to ensure each party is informed of any adjustments, claims and variations. ◦ Regular review of revised drawings and contactor's instructions to ensure all variation and claims items are captured.

Answer 704

◦ My company maintains a database of potential suppliers that allows categorisation of specific trades with a current status of either pending approval, authorised or not to be used. ◦ These categories are based on previous performance in combination with undertaking regular checks on items such as insurance certificates being provided, credit checks, maintenance of accident records and obtaining copies of quality management accreditations. ◦ Performance checks will include items such as Health & Safety track record, quality reviews, remedial work requirements, programme delays, commercial and contract administration performance.

Answer 705

◦ Throughout the project I would maintain a running final account of the sub-contract package and look to agree any variation items with the sub-contractor on an ongoing basis. ◦ Having the running final account in place in my experience has supported with reaching a swift final account agreement. ◦ Prior to arranging the final account meeting I would collate the following items to support the discussion:- ◦ The subcontract order agreement including the BOQ or pricing schedule. ◦ The final account submission or final subcontract application for payment. ◦ Details of all variations or changes with full substantiation ◦ Supporting quantities or take-offs for any re-measurable items. ◦ During the meeting I would run through the agreed and any pending adjustments with the sub-contractor. ◦ Following discussion and agreement during the meeting would I would circulate the final account statement for signature by both parties and hold this on file.

Answer 706

◦ With input from the project manager, I would review team the current status of the programme and consider our options. ◦ This could include selection of different construction methodologies or programme sequencing. ◦ It may also be possible to explore the option of reviewing staffing and resource levels to gain further efficiencies. ◦ Out of hours, weekend working or additional resources may also be utilised to bring current progress back in line with programme requirements. ◦ Programme sequencing or acceleration options would need to be balanced against the additional costs that are likely to be incurred. ◦ It may be the case that programme float is sufficient to absorb the delay that has been forecast. ◦ I would also look to determine the origin of the delay to establish whether an extension of time or acceleration claim is applicable.

Answer 707

◦ As a company wide strategy, we have hedged against the risk of material price increases and lack of availability by bulk purchasing materials in advance, in particular for steel and plastic piping to cover the extent of projects we are currently in contract to provide. ◦ We have also placed early orders with our supply chain to safeguard against potential price increases. ◦ Another strategy we have implemented has been to insert clauses within our current contracts that offer a fixed price period. In the event that the project is postponed, the contract then contains a mechanism to claim a material price supplement from the client.

Answer 708

◦ On an industrial scheme I negotiated with a local land owner who agreed to dispose the inert excavated topsoil which was more advantageous than using local earthwork removal subcontractors. ◦ The local landowner was also able to provide access across their land to a local water source which was much more efficient than using imported water and bowsers on site. ◦ I have also undertaken comparisons between the outright purchase of plant and equipment vs. short term hire to realise cost efficiencies for my projects. ◦ I have also recently undertaken a comparison between the use of temporary power leasing of generators and fuel against the use of a permanent local power sources to realise cost efficiencies.

Answer 709

◦ The previous Standard Method of Measurement (SMM) was purely designed for the production of bill of quantities for tender purposes. ◦ This resulted in a lack of guidance and uniformity around preparing cost estimates and cost plans when using SMM7. ◦ The NRM was introduced to provide a common and consistent basis for the production of order of cost estimates and cost plans and to give Employers more confidence around their inclusions.

Answer 710

The key sections of NRM1 are: Part 1: General introduction explaining the purpose of the document and how it should be used. Part 2: Measurement rules for the production of order of cost estimates. Part 3: Measurement rules for the production of elemental cost plans. Part 4: Tabulated rules of measurement for elemental cost planning. Appendices: With references to the definitions for GIA, functional units, NIA, elemental breakdowns, templates and general information required for cost plan production.

Answer 711

◦ The NRM provides a common and consistent basis for the production of order of cost estimates and cost plans. ◦ This provides added confidence to Employers. ◦ In the event that a QS or firm is pursued for negligence, the use of NRM would provide a means of defence as it represents best practice. ◦ Qs are not required to follow the NRM if they judge it as unsuitable for their specific project but they must have a good reason as to why this approach has been taken.

Answer 712

◦ The RICS New Rules of Measurement 1 is the Order of Cost Estimating and Elemental Cost Planning. ◦ This provides a structured basis for measuring building works and for the production of Cost Estimates and Cost Plans.

Answer 713

◦ Gross External Area. ◦ This is the area of the building measured externally at each floor level.

Answer 714

◦ Gross Internal Area. ◦ This is the area of the building measured to the internal face of the perimeter wall at each floor level. ◦ The GIA excludes external open sided balconies, fire escapes, canopies, external walls and fuel stores.

Answer 715

◦ Net Internal Area. ◦ This is the area of usable space measured to the internal face of the perimeter wall at each floor level. ◦ The NIA excludes internal structural walls and columns, spaces with headroom less than 1.5m, permanent lift lobbies, toilets, cleaners' cupboards and plant rooms.

Answer 716

The Code of Measuring Practice published by the RICS.

Answer 717

The Code of Measuring Practice provides precise definitions to permit the accurate and consistent measurement of buildings.

Answer 718

◦ The measurement rules for Masonry are contained within section 14. ◦ Masonry walls are to be measured in m2 with them being itemised according to wall thickness, type of construction and method of formation Other items to measure in association with masonry include ◦ Chimney stacks. ◦ Arches. ◦ Brick reinforcement. ◦ Forming cavities. ◦ Closing cavities.

Answer 719

◦ The purpose of the BOQ is to provide the estimator with an accurate picture of the scope of works and to provide a common and consistent basis for pricing. ◦ Following receipt of Tender submissions, the BOQ also forms the basis of the Tender Analysis allowing an accurate like for like comparison to be undertaken. ◦ Throughout the post contract stages it also provides the basis for the valuation rules of the contract for valuing variation items. ◦ It also enables the contract works to be assessed and valued for the purposes of interim payment.

Answer 720

I would meet with the design team to establish when the necessary information will be available, it is important to ensure the information provided is full and final to avoid abortive works. Following this I would look to compile all information necessary from the Design Team including: ◦ Drawings. ◦ Specifications. ◦ Schedules. ◦ Document Registers. ◦ Following receipt of the information I would check to see if the information is sufficient to allow the BOQ to be complied. This largely depends on the form of contract for example under remeasurement forms the information does not have to be complete but must be substantially complete. ◦ I would discuss and agree with the client and design the method of measurement to be adopted ◦ Prior to commencement of measurement and taking off quantities, I would consider the size of the Project and break the works down into sections and areas for example:- ◦ Substructure. ◦ Superstructure. ◦ External Works. ◦ I would then commence Take-off & work from the Substructure upwards. ◦ When measuring is complete I would look to address the general items section & any preambles. ◦ Following BOQ production I would carry out regular meetings and review any updated drawings to ensure that no works items had been missed or overlooked between packages.

Answer 721

An explanation of a document that can include information about how the measurement has been undertaken, such as Rules of Measurement used, dates of rates etc. A preamble is an explanation of a document, it is commonly found in contracts, specifications and bills of quantities. ◦ It can help with the interpretation of the document. ◦ It includes a description of the parties to the contract. ◦ The background to the document. ◦ Measurement procedures that have been adopted.

Answer 722

In accordance with an elemental breakdown structure under NRM 2, I would include the following sections; ◦ Preliminaries (Main Contract). ◦ Facilitating Works. ◦ Substructure. ◦ Superstructure. ◦ Internal Finishes. ◦ Fittings, Furnishings and Equipment. ◦ Services. ◦ External Works. ◦ Provisional Sums. ◦ Dayworks.

Answer 723

The preliminaries detail items of work that are required to enable the construction but are not associated within the permanent measured works items. This could include items such as: ◦ Site setup. ◦ Management & supervision. ◦ Insurances for the project. ◦ Task Lighting. ◦ Protections and temporary barriers.

Answer 724

◦ Contract duration. ◦ Location. ◦ Type of project (New Build vs. Refurb). ◦ The size of the project. ◦ Temporary works. ◦ Security. ◦ Methodology. ◦ Programme. ◦ Services. ◦ Employers accommodation. ◦ Contractor designed work. ◦ Sectional completion. ◦ Insurances / Bonds.

Answer 725

◦ The works would be valued in accordance with the agreed rate contained within the contract. ◦ If identified within the tender documents prior to the contract being agreed then the rate could be amended in accordance with the Tendering rules in place, but otherwise both parties would have to stand by the rate.

Answer 726

◦ Assuming the same nature & conditions are applicable, the variation would be based on the BOQ rate within the contract. ◦ Unless both parties agreed to amend the rate to one that is fair and reasonable.

Answer 727

◦ The originator owns the copyright. ◦ This is the QS generally who provides the client permission to use the document for its intended purpose. ◦ Subject to the terms of the QS appointment

Answer 728

◦ If part of the BOQ was missing then 1 would check to see if it were included as part of the tender documents & ultimately the contract sum. ◦ If not then the ultimate responsibility would lie with the Employer. ◦ Providing the works were still required by the Employer they would be treated as a variation to the contract. ◦ I would request that the contractor price the works & advise the Employer on the level of costs involved before the instruction is issued.

Answer 729

A prime cost sum would be incorporated including: ◦ An allowance for the cost of the Nominated Subcontractors work (based on the quotation). ◦ An allowance for the contractor to price for attendances such as accommodation, welfare, storage, handling, materials & cleaning. An allowance for a percentage addition for any other charges & profit.

Answer 730

A sum of money that is included in a unit rate to be spent on materials or goods from suppliers ( a PC Sum)

Answer 731

◦ A Provisional Sum is an allowance included within the BQ for works to be carried out where the extent and design of the work is not yet know meaning the cost cannot be established at the time of agrecing the contract sum. ◦ This could include works by a nominated subcontractor or supplier, or a statutory authority.

Answer 732

◦ A defined provisional sum is one that relates to works that cannot be accurately measured, but there is sufficient information about the works including their nature, method, location, quantity, limitations to allow planning, programming & pricing of preliminaries to take place. The contractor would therefore only be entitled to claim for any increase in the cost of the physical works. ◦ Where there is insufficient information, the works are classed under an undefined provisional sum entitling the contractor to costs for prelims and an extension to the programme.

Answer 733

◦ Upon submission of the application by the contractor I would ensure this is provided in the agreed format & detail. ◦ I would review all the costs incurred to date in respect of Labour Plant & Materials, Staff & OH&P. ◦ I would carry out an audit of the information & reconcile this against the fee schedules & rates within the contract. I would check timesheets, staff grades & rates, project codes, payroll burden, invoices, subcontract accounts, applications & payments, materials invoices, dates, rates, quants, delivery tickets etc. ◦ This would be compared against the contract rates to enable any adjustments that may be needed.

Answer 734

◦ I would check the drawings and bills of quantities to see if the contractor was correct. ◦ I would refer back to the Tender Drawings to see if there had been a design change. ◦ Depending on the form of contract, I would remeasure the section and notify the Contractor of the remeasurement of actual quantities.

Answer 735

◦ Obstructions are normally dealt with by a Provisional Sum within the Bill of Quants, due to the undetermined nature of the works. ◦ They would usually be included in the earthwork's contractors' package, responsible for excavating the foundations.

Answer 736

◦ I would obtain drawings with existing levels & proposed levels. ◦ I would divide the area of excavation into a grid & interpolate the levels on the grid to establish an average existing & proposed level. ◦ This would determine which area was in cut and which area was in fill.

Answer 737

* Yes providing there is no backfilling required and assuming the form of contract and method of measurement does not allow for bulking, shrinkage or waste of earthworks.

Answer 738

* I would need to measure in accordance with the method of measurement appropriate for that country.

Answer 739

◦ If it could be broken down easily into the parts that are in accordance with the method of measurement, I would use this as the basis for measurement. ◦ Otherwise I would have to insert an item with a detailed description of the works with a section to include a Provisional Sum.

Answer 740

Ground water is measured under Section 5 for Excavating and Filling. It is measured on an itemised basis with the original below ground level being stated and reference to whether the water is polluted. If the post contract water level differs from the pre-contract level the measurements must be taken and revised accordingly. The method and place of discharge is left to the discretion of the contractor unless stated otherwise.

Answer 741

◦ A method related charge is a one-off item related to the method of carrying out the work and does not form part of the permanent works. ◦ They are not considered proportional to the item of works to be carried out. ◦ For example provision of temporary propping required for a weakened elevation of an existing building.

Answer 742

* Time related charges are method related charges that ate considered proportional to time taken to carry out the works for example plant hire.

Answer 743

Fixed charges are method related charges that do not vary with time for example Service Connection Charges.

Ethics Q&A Version 2 Flashcards

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