Ethics, rules of conduct and professionalism Flashcards
(188 cards)
1
Q
What role do the five ethical standards play for RICS members?
A
they play a crucial role in maintaining trust and integrity.
2
Q
What is the obligation of a RICS member concerning the RICS rules of conduct?
A
To adhere to them in all professional activities.
3
Q
What annual training do you undergo as part of AECOM’s ethics and compliance program?
A
Anti-bribery, corruption, and ethics training.
4
Q
What procedure are you acquainted with as part of AECOM’s ethics?
A
AECOM’s complaints handling procedure.
5
Q
What is emphasized in recognizing the value of ongoing learning and development?
A
The benefits of participating in Continuous Professional Development (CPD).
6
Q
What are the five ethical standards expected of RICS members?
A
1.
2.
3.
4.
5.
7
Q
Why is it important to adhere to rules of conduct in the workplace ?
A
because it establishes a framework for ethical behavior, fosters a positive work environment, ensures fair treatment, and contributes to the overall integrity and reputation of individuals and the organization.
8
Q
What is anti-bribery?
A
refers to the measures and actions taken to prevent, detect, and combat bribery in various forms, aiming to promote ethical business practices and maintain integrity by prohibiting the offering, giving, receiving, or soliciting of bribes.
9
Q
What is corruption?
A
Corruption refers to the abuse of power, position, or resources for personal gain, often involving dishonest or unethical behavior, bribery, fraud, or other forms of misconduct.
10
Q
What does it mean to act ethically ?
A
Acting ethically involves making decisions and taking actions that align with accepted principles of morality, honesty, and fairness, and that consider the impact on individuals, society, and the greater good.
11
Q
What does CPD stand for ?
A
Continuous Professional Development
12
Q
Why it is important to have Continuous Professional Development ?
A
CPD is important because it allows individuals to stay current in their field, acquire new skills and knowledge, adapt to changes in the industry, and enhance their professional competence, ensuring ongoing growth and effectiveness in their career.
13
Q
What do i prioritize in decision making ?
A
Integrity, safeguarding confidential information, and avoiding biases or conflicts of interest.
14
Q
How do i maintain a high standard of service?
A
I take accountability for my actions, work transparently in communicating costs and impacts of changes, enabling clients to make informed decisions.
15
Q
Which quality assurance procedures do I follow?
A
I follow AECOM’s quality assurance procedures aligned with ISO 9001.
16
Q
What is ISO 9001
A
FIND ANSWER
17
Q
What do I refrain from accepting, based on RICS Guidance?
A
I refrain from accepting gifts, hospitality, or services that could imply improper obligations.
18
Q
What do I do when conducting valuations and variations?
A
I visit the site to assess completed works and materials, ensuring a fair and accurate assessment to protect the client from risks related to contractor insolvency.
19
Q
What is prioritized in my dealings with clients and contractors?
A
Honesty and integrity are prioritized, with a commitment to taking responsibility for oversights and providing explanations and strategies for avoiding them in the future.
20
Q
What are RICS guidance notes on gifts and conflicts
A
FIND ANSWER
21
Q
What is insolvency?
A
Insolvency refers to a financial state where an individual or an organization is unable to meet its financial obligations, such as paying debts or other financial liabilities, as they become due.
22
Q
What is the risk to the client if a contractor goes into insolvency?
A
1.Project Delays
2.Financial Loss
3.Quality Concerns
4.Legal Complications
5.Reputation Damage
23
Q
What should be put in place to manage the risk of contractors going insolvent ?
A
It’s crucial for clients to have contingency plans and risk management strategies in place to mitigate the impact of contractor insolvency on construction projects.
24
Q
How do I approach work in terms of ethics and impartiality?
A
I always ensure that I work in an ethical and impartial manner, providing advice only within my qualified expertise.
25
Why is it important to only provide advise within my qualified expertise ?
Providing advice within your qualified expertise ensures accuracy, reliability, ethical responsibility, credibility, legal integrity, ongoing learning, and specialized insight while avoiding potential harm or misinformation.
26
Can you describe a situation involving legal advice during the preparation of contract documents?
While preparing the contract documents for 1 Triton Square, I was asked to draft wording for a clause in the client Schedule of Amendments. I clarified that I am not a legal advisor and recommended that this task should be handled by their legal team.
27
How did you handle a contractor's inquiry during the tendering phase for 1 Triton Square?
A contractor inquiring about the project called me with questions, including a request for information on other participating contractors. I instructed them to submit their inquiries following the outlined process in the tender documents and made it clear that I couldn't disclose the information they were seeking.
28
Why is it not ethical to share other contractors information on a competitive bid ?
Sharing other contractors' information on a competitive bid is considered unethical because it breaches confidentiality, undermines fair competition, and violates the trust placed in contractors to keep sensitive business details confidential, compromising the integrity of the bidding process.
29
How do you ensure client understanding regarding the scope of services?
I conduct a thorough review of our scope of services, ensuring clients understand what is included.
30
Can you describe a situation involving scope expansion and transparent communication?
On a site visit for a parliamentary project, the client proposed capturing differences between as-builts and provided drawings. I transparently informed them that this was beyond our agreed scope and would incur additional fees if required. However, I offered to share my notes for AECOM's internal due diligence, based on spot checks.
31
Why is it important that clients understand what is included in our scope of services?
A clear understanding of a scope of services is crucial for clients to manage expectations, budget effectively, ensure project quality, and establish a basis for a successful and transparent contractual agreement.
32
What is the Mission Statement of the RICS?
* 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.
33
What is the meaning of the RICS Motto?
The motto is ‘Est Modus in Rebus’ which in Latin translates to ‘There is measure in all things’.
34
When was the RICS founded?
The RICS was founded in 1868 with the Royal Charter being granted by the Privy Council in1881.
35
What determines now the RICS is regulated
The Bye-Laws determine how the RICS is regulated.
36
What does it mean that the RICS is self-regulated and internally monitored?
That it is not regulated by the Government
or external parties.
37
What are the RICS’ 5 principles of better regulation?
* Proportionality.
* Accountability.
* Consistency.
* Targeting.
* Transparency.
38
Who manages and agrees the strategy for the RICS?
The Governing council
39
What is the difference between RICS ethics and rules
Ethics are a set of moral values.
Rules of conduct are a framework that we work to.
40
When did the Rules of Conduct change?
2nd February 2022.
40
How many Global Professional and Ethical standards are there?
From the 2nd February 2022 onwards the Global Professional & Ethical Standards have been
consolidated within the New Rules of Conduct 2022.
41
What is the new rules of conduct rule 1 ?
Rule 1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
42
What is the new rules of conduct rule 2 ?
Rule 2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
43
What is the new rules of conduct rule 3 ?
Rule 3. Members and firms must provide good-quality and diligent service.
44
What is the new rules of conduct rule 4 ?
Rule 4. Members and firms must treat others with respect and encourage diversity and inclusion.
45
What is the new rules of conduct rule 5 ?
Rule 5. Members and firms must act in the public interest, take responsibility for their actions and act to
prevent harm and maintain public confidence in the profession.
46
Why did the previous Rules of Conduct change?
Following research and consultation with RICS Members, Firms and Members of the public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional
and Ethical Standards.
This was to provide a single document to enable greater clarity for RICS members and firms.
47
How long had the previous rules of conduct been in place?
Since 2007
48
What greater focus on is there in the new rules of conduct?
A greater focus on clearer example behaviors, understanding evolving technology and tackling climate change.
49
What separate documents will the rules of conduct October 2021 overhaul?
o Rules of conduct for Members.
o Rules of Conduct for Firms.
o Global Professional and Ethical Standards.
50
How many professional obligations of firms are there?
7
51
what does Appendix A of the new rules of conduct now contain ?
Now contains the professional obligations of Members and
Firms.
52
What are the 3 professional obligations of members?
1. Members must comply with the CPD requirements set by the RICS which requires 20 hours of
CPD for each calendar year, 10 hours of which must be formal CPD.
2. Members must cooperate with RICS.
3. Members must promptly provide all information reasonably requested by the Standards and
Regulation Board, or those exercising delegated authority on its behalf.
53
What is Nr 1 of the professional obligations of firms?
Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
54
What is Nr 2 of the professional obligations of firms?
Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
55
What is Nr 3 of the professional obligations of firms?
Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
56
What is Nr 4 of the professional obligations of firms?
Firms must cooperate with RICS.
57
What is Nr 5 of the professional obligations of firms?
Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
58
What is Nr 6 of the professional obligations of firms?
Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
59
Why does the RICS have Rules of Conduct?
To provide a framework that we can all work to and so the client knows he is getting a set level of service, also a useful
professional guide for individual institution members.
59
What is Nr 6 of the professional obligations of firms?
Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
60
Your brother-in-law is a chartered surveyor. You find out that he is
working outside the RICS Rules of Conduct. What do you do?
I verify the facts and confront him reminding him of his duties as a member of the RICS.
I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.
61
In the case of a breach of a rule of conduct what is the procedure?
- 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.
62
How can a disciplinary proceeding be triggered?
- Someone complaining to the RICS.
- An allegation by a client or third party.
- Information received or established by the RICS.
63
What three actions can be imposed after the end of the investigation
stage?
Fixed penalty.
Consent order.
Disciplinary panel.
64
What are fixed penalties?
A fine by the RICS.
65
When is a disciplinary panel applicable?
* 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.
65
What can consent orders require?
It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.
66
What are consent orders?
It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
67
What sort of breaches would expulsion be suitable for?
* 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 client’s money.
68
What procedures must you follow if you are starting up a new
practice?
* Contact the RICS for guidance and obtain a company start up pack.
* Inform the RICS and register for regulation.
* Appoint a contact officer for all RICS communication.
* Prepare a complaints handling procedure.
* Obtain Professional indemnity insurance cover.
* Abide by the Rules of Conduct for Firms.
* Use the designation ‘Regulated by RICS’ on all practice material.
69
Would you advertise your new company in the press?
* Yes as long as it is in a trustful and responsible manner in line with the Rules of Conduct for Firms.
70
What insurances would you need if you were starting up your own
firm?
* Professional Indemnity Insurance.
* Employer’s Liability.
* Public Liability.
* Building’s insurance of an office premises.
71
What sort of information do registered firms have to send to the RICS annually?
* It is called annual return and carried out on-line.
72
what happens if registered firms do not send information to the RICS annually?
* Failure to do so leads to a fixed penalty.
73
What information does it include that firms have to send RICS annually?
o Type of business and staffing.
o Nature of clients.
o Training provision.
o Complaints handling procedures details and records.
o PI insurance details.
o Whether the firm holds clients’ money.
74
What processes do regulated firms need to put in place when handling Clients' Money?
Preserve the security of clients' money which does not belong wholly to the company.
75
What are the different types of client money accounts?
General accounts hold money for more than one client.
Discrete accounts reference a single named client.
76
What are general accounts in terms of clients money accounts?
General accounts hold money for more than one client.
77
What are Discrete accounts in terms of clients money accounts?
Discrete accounts reference a single named client.
78
What is meant by the term "Negligence"?
Negligence is a failure to provide the duty of care that is owed to the client, using reasonable skill and care.
79
What happens duty of care is breached?
If breached, it may result in damages or a Professional Indemnity Insurance claim.
80
What is a duty of care in the context of professional services?
A duty of care is owed to all clients and third parties, requiring the use of reasonable skill and care in providing services.
81
What is the significance of the Merrit v Babb case law?
The Merrit v Babb case highlights the importance of having run-off cover in place, as a surveyor was successfully sued for negligence by a former client after the surveying firm was no longer in existence.
82
What lesson did the Merrit v Babb case teach the industry?
It emphasized the need for run-off cover to protect individual surveyors for claims arising after their firm has ceased to exist.
82
What limitation periods are associated with deed forms of contract?
12 years when executed as a deed.
83
Why was the Merrit v Babb case a significant event for surveyors?
It caused a big shock in the industry and highlighted the importance of ensuring run-off cover is in place for all previous employees to protect against negligence claims.
84
What limitation periods are associated with underhand forms of contract?
6 years when executed under hand.
85
When should the details of the complaints handling policy be issued to the client?
Details should be issued with the Terms of Business.
86
What model form does the RICS provide related to complaints?
The process must include a redress mechanism and be clear, quick, transparent, impartial, and free of charge within the first stage.
87
What must be included in the complaints handling procedure regarding contact information?
Names and contact details of the nominated investigating person must be stated.
88
What action should be taken regarding PI insurers when a complaint is received?
PI insurers must be advised of a complaint immediately.
89
Within how many days must a complaint be investigated?
A complaint must be investigated within 28 days.
90
What do you do if you receive a letter of complaint?
I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required.
I would also highlight the importance of informing our Professional Indemnity insurance providers
immediately.
90
What records must be kept regarding complaints?
All complaints, their progress, and outcomes must be recorded.
91
What is stage 1 required in a complaints handling process?
Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer.
91
What is stage 2 required in a complaints handling process?
Stage 2: If unresolved, referral to an independent third party with authority to award redress, with possible cost contribution by the complainant.
92
What is the role of the independent third party in Stage 2 of the complaints handling procedure?
The independent third party has the authority to award redress.
93
Is there a cost for the complainant in the first stage of the complaints handling procedure?
No, the first stage should be free of charge.
94
What is the purpose of an independent redress scheme?
It is designed to handle small issues that would be disproportionately expensive to take to court.
95
What happens if the independent redress scheme judges in favor of the complainant?
The decision is binding.
95
What can a complainant do if the independent redress scheme judges in favor of the firm?
The complainant can escalate the matter to court.
96
What must RICS firms specify in their complaints handling procedure?
They must specify which redress scheme they want to use, such as an ombudsman, arbitration, or sometimes adjudication.
97
What options does a complainant have if the complaint involves a large amount of money or if they wish to pursue further action?
The complainant can take the matter to court.
98
What is the ‘Clients’ Money Protection Scheme’?
This is a money protection scheme operated by the RICS. This is provided through an RICS insurance policy.
99
What is the purpose of the joint names on a client account?
For the purpose of dual authorisation.
99
What does the ‘Clients’ Money Protection Scheme’ contain?
It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
100
What does CPD stand for?
continuous professional development
101
What are the cpd requirements ?
* Members must undertake and record appropriate lifelong learning.
* On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.
102
How many hours must you do?
A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal.
103
Where should cpd be recorded?
All CPD’s must be recorded via the RICS on-line management system.
104
Example of informal cpd?
Informal CPD is classed as private reading, internal CPD’s and on the job shadowing.
105
Example of formal cpd?
Formal CPD can be classed as web based training with structured assessments, formal seminars, providing training to others where research and preparation is required.
106
What types of articles do you read?
- I also read the RICS journals (Modus, Construction Journal, RICS regional magazine).
- I also keep up to date via the RICS website, Building Magazine, Estates Gazette and BCIS updates.
107
How do you keep up to date with topical issues?
- I am on the mailing list for several CPD providers.
- I also exchange industry articles and relevant information with colleagues.
- I follow updates on the RICS website and Construction Journals
107
What does PII stand for?
Professional Indemnity Insurance.
108
What is your CPD strategy
* I meet with my manager twice a year to review my career development plan and objectives.
* I build my CPD strategy around these objectives, current topics and personal interests.
109
What is the purpose of Professional Indemnity Insurance?
To provide financial cover in the event a client suffers financial loss as a result of a breach of
professional duty e.g. neglect, errors or omissions.
110
What benefits does it provide for the client?
They are able to recover their financial losses.
110
What benefits does it provide for the professional?
The professional is protected from financial losses.
The firm does not have to meet the claim from their own assets and resources.
111
On what basis is it underwritten in the UK?
On a claims made basis.
111
What does this mean?
The insurance policy that is in place at the time the breach is discovered is responsible for providing the
indemnity, not the insurance policy in place when the breach was made.
112
What are the requirements regarding Professional Indemnity
Insurance set by the RICS?
* The policy cover must be made on an ‘each and every’ claim basis.
* The RICS sets out the minimum levels of indemnity.
* The RICS sets out the maximum levels of uninsured excess.
* 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.
113
What measures should be taken to try and avoid PI claims?
* Keep full and detailed records of meetings and conversations.
* Record recommendations and advice given.
* Use proper letters of engagement, scope of services and terms of engagement.
* Don’t advise on a specialism outside your field of experience.
* Use RICS guidelines.
* Avoid poor management and excessive workloads.
114
If you made a mistake in your cost plan what would your insurance
company expect?
* For you to notify them and comply with any conditions & procedures set out in the insurance policy.
115
If an estimate prepared by a QS is incorrect can the client claim
damages?
* An estimate that is incorrect in itself will not provide the client with a right of redress.
* The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect
due to a lack of reasonable skill and care.
* It could have been incorrect due to reasons outside their control for example market conditions or an
item referred to in their exclusions.
116
How can you limit your liability when agreeing terms of appointment
with a client?
* Base the appointment on reasonable care and skill rather than fitness for purpose which is more
onerous.
* If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to
request a clause limiting the appointment to reasonable skill and care only.
* Run off cover must be in place.
117
What are the main elements included within a fee proposal?
* Terms and conditions
* Scope of services.
* Exclusions.
* Assumptions.
118
Once you and your client agreed the services that are to be provided
verbally what would you do next?
* Follow up with a formal letter which includes the terms and conditions, fees and scope of services that
are to be provided.
118
If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?
* If project requirements such as the services, scope or value of the project has increased then I would go
back to client and request a fee increase.
* If the scope of works had remained the same, this highlights a mistake within our fee bid and the
additional work would need to be carried out without reducing the level of service being offered and
without requesting additional fees from the client.
119
If the client gives you a lump sum fee before going on holiday, what
would you do?
* I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client.
120
What are the main offences in the Bribery Act?
o Making a bribe.
o Receiving a bribe.
o Bribery of a foreign public official.
o Failure of a corporate entity to prevent bribery on its behalf.
121
What are the 6 principles of bribery prevention companies should put in place;
1. Proportionate Procedures.
2. Top Level Commitment.
3. Risk Assessments.
4. Due Diligence.
5. Communication.
6. Monitoring & Review.
121
Where the Bribery act apply to ?
The legislation applies to all UK Entities and includes associated Persons for example sub-consultants
and external advisors.
121
What is a conflict of interest?
A conflict of interest occurs when someone in a position of trust has competing personal or professional interests, making it difficult to fulfill their duties impartially.
122
What should Chartered Surveyors do if they have a conflict of interest?
They should make clients aware of the conflict and, if necessary, decline work opportunities where a conflict of interest occurs.
123
How can conflicts of interest be managed internally if two separate departments are working for the same client?
By ensuring exclusivity of staff, avoiding cross over of information, maintaining separate communication lines, providing separate geographical locations and secure data storage, signing confidentiality or non-disclosure agreements, and monitoring the conflict while keeping the client updated.
124
What procedures can be put in place to ensure exclusivity of staff in managing conflicts of interest?
Procedures include maintaining separate communication lines, providing separate geographical locations and secure office and data storage, and having staff sign confidentiality or non-disclosure agreements.
125
What should you do if a client insists on working with you despite an existing conflict of interest?
Check the client's understanding of the conflict, make them aware of the potential for reduced impartiality, seek a letter of instruction to continue, and agree on working procedures to manage the conflict with the client and the teams involved.
126
What is the only circumstance in which its ok to make a facilitation payment under the Bribery Act?
Is when you are under duress. For example if there is a real and present risk or danger to "life, limb or liberty".
You should put safety first, make the payment and report the matter immediately.
127
You are attending a Main Contractor organised business conference
where it is announced the you have been randomly selected as the
winner of this months prize draw. Its an i-pad air. How would you act
in this scenario?
* I would be extremely uncomfortable accepting the prize in this scenario.
* The prize is of a significant value and could be interpreted as a bribe.
* I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity
of the Main Contractor’s choice.
* I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this
incident I would report this to my line manager.
128
You receive an invite to attend the Theatre with some members of
your Project Team but they dropped out due to illness at the last
minute, would you still attend?
* 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.
129
A contractor invites you to lunch to a restaurant and advises they've
got two Michelin stars and a wine list second to none. They say they
are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?
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.
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