Ethics, Rules of Conduct and Professionalism Flashcards
(166 cards)
1
Q
What are the new rules of conduct?
A
- replace the previous version which had been in place for members and firms since 2007
- came into effect on 2 February 2022
- Simpler Structure
- Clear examples
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges
2
Q
What is rule 1?
A
Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS
3
Q
What is rule 2?
A
Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
4
Q
What is rule 3?
A
Members and firms must provide good-quality and diligent service.
5
Q
What is rule 4?
A
Members and firms must treat others with respect and encourage diversity and
inclusion
6
Q
What is rule 5?
A
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
7
Q
What does the RICS Professionalism module include?
A
- Understand the importance of the RICS Rules of Conduct, including ethical principles and your role as an RICS professional
- Know the five Rules of Conduct that RICS members observe
- Understand how the Rules relate to the regulatory framework of RICS
- Review and reflect on your learning from this short course
- Complete the “choose your own adventure” case study
8
Q
What is the CPD requirements for members?
A
20 hours 50% formal
9
Q
What is the difference between informal and formal CPD?
A
Formal:
- Courses, seminars and conferences
- Structured seminars and discussions
- Formal Learning and development
Computer based training
Informal:
- Reading and private study
- Mentoring
- Shadowing
10
Q
What constitutes a conflict of interest?
A
- a situation in which the duty of an RICS member or a regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment
- a situation in which the duty of an RICS member or a regulated firm to act in the interests of a
client in a professional assignment conflicts with the interests of that same RICS member/
firm - a conflict between the duty of an RICS member under paragraph 2.2 to provide material information to one client, and the duty of that RICS member or of a regulated firm under paragraph 2.1 to another client to keep that same information confidential
11
Q
What action should I take should a conflict arise?
A
only consider proceeding with Informed Consent if you are satisfied that all of the relevant clients’ (or other parties’) interests will be served by you doing the work (as opposed to another firm doing it).
You should not seek Informed Consent in order to proceed because your firm’s interests are served by doing so.
Obtaining Informed Consent is a process that requires proper consideration, professional judgment, and careful execution with every affected party.
12
Q
What constitutes integrity?
A
the quality of being honest and having strong moral principles
13
Q
Why is honesty important?
A
It makes you more reliable. In all your relationships, honesty is what makes you much more reliable and trustworthy. By being honest, you get people to trust you more. You show everyone else that you wouldn’t be dishonest with them because you value your relationships.
14
Q
What is diversity and inclusion?
A
Diversity and inclusion are interconnected concepts that refer to the variety of unique individuals that make up a group of people and the environment that allows them to work together as equally valued contributors. Workplaces that prioritize diversity and inclusion efforts have been statistically proven to be safer, happier and more productive work environments.
15
Q
Why is it important to act in the public interest?
A
Maintains confidence in the profession
16
Q
What does equans anti bribery and modern slavery declaration state?
A
Asks firms to confirm if they have complied with legislation which relates to bribery, fraud, theft, money laundering or competition law
Asks firms to confirm they have complied with legislation which prohibits any form of slavery, servitude, forced or compulsory labour, or the trafficking of individuals (hereafter “Modern Slavery”) for the purposes of exploitation as defined by sections 1,2 and 4 of the Modern Slavery Act 2015?
17
Q
How do you ensure transparency in negotiated tender agreements and variations?
A
I ensure to be honest with my approach to negotiated tenders and all pricing of works and variations
18
Q
What is recommended levels of PII by RICS?
A
Firm’s turnover in the preceding year Minimum limit of indemnity
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000
19
Q
What is levels of EL and PL insurance for contract?
A
5 million
20
Q
What is required to take out PII?
A
- Each and every claim
RICS sets out min levels of indemnity - Be fully retroactive
- Run off cover
- The policy should cover past and present employees, dirctors and partners
21
Q
What are the hot topics RICS have recently looked at that impact you as a QS?
A
- Fire safety
- New PII Requirements
- Rule of Conduct updates
- Levitt Report
- RICS Business Plan
- RICS Leadership Team
- recession
- Inflation
22
Q
What are the new RICS Professional Indemnity Insurance Requirements for 2022?
A
- Updated following the UK PII requirements Version 9
- Introduced a change to max unisured excess of PII
- Turnover in excess of 10m = no max limit of uninsured excess
- £10m or less = The greater of 2.5% of the sum insured, or
£10,000
23
Q
What is the RICS futures report
A
- construction produces large amounts of data
- 95% data wasted
- RICS setting up and innovation and tech hub to provide a centre of expertise on how data can be put to good use
- Rapid urbanisation in china - Urban land doubled since 2000 resulting in polluted congested and expensive areas
- RICS aims to encourage members in the regions to adopt more sustainable approach to the areas
Adopting drone tech
- RICS developed online courses to support surveyors use the tech efficiently, safely and legally
24
Q
What is the RICs Levitt Report?
A
- Commissioned by RICS following a treasury management audit in 2018
- Prior to the audit RICS had to extend its overdraft facility by £3m due to inaccurate cashflow forecasting
- Treasury management audit offered a ‘no assurance verdict’ on internal financial control procedures following which the levitt report was commissioned
- the conclusion illuded to an internal power struggle due to it two board structure made up of management board and executive board
RICS Accepted each recommendation :
- Governing council are to have more oversight over internal dealings of the RICS
- Governing council are to be briefed by the management board as apposed to a signle CEO
- Governing council are to oversee executive management bonuses
- called for greater transparency as the CEO could have involved management board in order to rectify the treasury issues
- No evidence of improper or illegal conduct was discovered
25
Are you aware of some of the aims highlighted in the RICS business plan for 21-22?
Incorporate Levitt Recommendations:
- Be more open and transparent with members and public about operation of the institution including decision making and finances
- Developing and implementing new more effective internal whistleblowing arrangements
- Reviewing the arrangments for senior executive reward
Immediate financial Priorities:
- Continued support of the profession following Covid 19 and seek to minimise subscription increases
- Utilise surplus cash to pay back gov for furlough monies
- Reduce RICS need to access external financial support
- Reduce any funding defecit in the closed final salary pension scheme
26
Who is RICS CEO?
Justin Young
Background in ops managment and business transformation programmes focused on customer experience
- Real estate sector
- South east asia, Europe and the UK
27
Who is the RICS President?
Ann Gray FRICS
a real estate broker and licensed architect in Los Angeles, California
28
Who is the president Elect?
Tina Paillet FRICS
CEO & Co-Founder of Circotrade – a technologically enabled trading platform designed to facilitate and unlock the future value of your building’s materials
29
Why did the previous rules of conduct change?
- Previous been in place since 2007
- majority of members, firms and public voted in favour of replacing
- To provide a single document to enable greater clarity
- Greater focus on clearer example behaviours, understanding evolving tech and tackling clim change
30
Talk through your understanding of the changes to the new rules?
Rules of conduct 2021 overhauled:
- Rules of conduct for members
-Rules of conduct for firms
- Global professional and ethical standards
- Appendix A of the Rules of conduct now contains the professional obligations of members and firms
31
Explain your understanding of Rule 1?
- Having reviewed the example behaviours in adhereing to rule 1 members and firms should not allow themselves to be influenced impropoerly through the acceptance of work referals, gifts or hospitality
- M&F must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur
32
Explain your understanding of Rule 2?
- M&F must only act for clients where they have the neccesary knowledge, skills and resource to carry out the work competently
- Firms must supervise any employees or subbies undertaking work on their behalf
33
Explain your understanding of Rule 3?
- As a M or F we must also be sure to understand a clients project specific requirements before acting on their behalf.
- Clients scope of services should be agreed along with any exclusions and timescales for acheiving each of the deliverables before signing up to formal terms of engagement
34
Explain your understanding of Rule 4?
- Members should respect the rights of others and treat others with courtesy
- We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregancy, race, religion, or sexual orientation
-RICS M & F also need to adopt a no tolerance policy of bullying or harassment
35
Explain your understanding of Rule 5?
- M & F are required to question practices and decisions that they suspect are not right and raise concerns with colleagues, senior management, clients or the RICS
- When making public statements we need to ensure these do not undermine public confidence in the profession.
- When receiving and processing complaints we need to ensure these are dealt with promptly, openly and professionally
36
What are the professional obligations of members?
CPD 20 hours each year atleast 50% formal
- Members must cooperate with the RICS
- Members must promptly provide all info reasonably requested by the standards and regs board, or those excercising delegated authority on itd behalf
37
What are the professional obligations of firms?
- Must publish a complaints handling procedure, which includes an ADR provider approved by RICS and maintain a complaints log
- Must ensure all previous and current work is covered by appropriate PII
- Firms with a sole principal must take appropriate arrangments are in place for their professional work to continue if they a incapacitated
- Firms must cooperate with the RICS
- Firms must promtly provide info reasonably requested by the standards and regulation board or those excercising DLA on their behalf
- Firms must display on their business literature in accordance with RICS published policy designations a denote that they are regulated by RICS
- Firms must report to RICS any matter that they are required to report under the rules for registration of firms
38
What steps would you take in the event of a main contractor insolvency?
RICS GN - Termination of contract, corporate recovery and insolvency
- Secure the site and off site materials (If paid for)
- Excercise relevant clauses - notice to terminate
- Call in any bonds that are due
- Explore if collateral warranties are in place
- consider if an insolvency expert is required
- keep detailed records of current progress and the time of insolvency
- Prepare and issue a statement of valuation highlighting current progress and any risks and ongoing claims
- Prepare a notional FA
- Liaise with appointed administrators
- Make a schedule of works to complete at date of termination
- Undertake steps for reletting of works
39
What key challanges does the global economic recession present to your area of surveying?
- Rising inflation rates of 10-11% has resulted in a large increase in borrowing costs
- additional challenges and pressures on developers and building owners facing greater pressures on budget plans undertaken prior to interest rises
- Financial viability of projects no longer stacks up
- Shift to home working has resulted in scaling back of office space - repurposed or postponed
- Online shopping - high streets and shopping centres are now becoming less attractive creating greater pressures on retailers
- Demand for logistic space and data centres has remained strong closely linked to growth of online retail and big tech companies
- Rising inflation has resulted in net reduction in fee income in real terms as clients demands that previous fee levels are maintained where possible
40
Impacts of war in Ukraine in UK?
- significant energy price increases
- products with high energy input have also increased: Steel bricks plastics ceramics
- delay an disruptions
41
How has brexit affected uk?
- movement of people is more restricted
- employers must now register as sponsors to recruit abroad
- induviduals must meet job, salary and language requirements
- labour cost increases and reduction in availibility
- will have to meet relevant rules of of origin for products
- price of goods moving across borders is expected to increase due to additional border checks and admin
- cost increases and availibility issues of steel plastic cement and plasterboard
42
Are you aware of any GN on brexit?
43
Are you aware of any GN on covid 19?
Covid 19 guide to surveying services
- Physical inspections for resi
- physical inspections for non dom properties
-Resi valuations and surveys
- Reopening of the housing market
-Reopening of commercial buildings
44
What impact has covid 19 had on your area?
- material cost increases
- material availibilty
- steel increased by 22% in the last year
- Plastics plasterboard and labour availibility increasingly scarce
-Due to significant cost increases the viability of projects has been affected
45
COVID 19 - How have you helped clients with this?
- early order placements to negate risk of further price increases and material availibility issues
- kept clients updated on impending price increases when made aware
- through early notification, contingency plans have been put in place to increase cost certainty and negate further material price increases and lack of availability
46
What is your RICS Membership Number?
6790820
47
How many members of the RICS are there?
140,000 across 146 countries
48
What is the RICS London HQ address?
12 Great George Street (Parilament Square), Westminster, London, SW1P 3AD
49
What does the RICS stand for?
Royal Instition of Chartered Surveyors
50
What is the role of the RICS?
promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
- Regulate and promote the profession
- Maintain the highest educational and professional standards
- Protect clients and consumers through a strict code of ethics
- Provide Impartial Advice, analysis and guidance
51
What is the Carsberg report?
A wide-ranging review of Royal Institution of Chartered Surveyors regulation has recommended greater separation of regulatory and representational functions.
52
What are the various RICS statuses?
Trainee
Student
Graduate
Assoc RICS
Member RICS
Fellowship RICS
53
How many RICS Professional groups are there?
18
54
Name some RICs Faculties?
Quantity Surveying
Building Surveying
Project Management
Valuation
Facilities Management
Dispute Resolution
55
What is the ISO Standard for anti-bribery?
37001
56
What is the ISO Standard for Corporate Social Responsibility?
26000
57
What is the RICS black book?
A suite of guidance notes that define good technical standards for Qs & construction professionals
58
What are there black books on?
- Change control and management
- Commercial management of construction
-Conflict avoidance and dispute resoltion in construction
- Cost reporting
- E tendering
- Employers agent: D&B
- Final Account Procedures
- FLuctuations
- Retention
- Subcontracting
59
Are guidance notes compulsory to follow?
No. However if there was a case of professional negligence, the court would take into consideration whether or not guidance notes were followed.
60
Are practice notes compulsory?
Yes
61
What is an RICS Code of Practice (CoP)?
A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note
62
What is an RICS professional Statement (PS)
Mandatory requirements for RICS members and regulated firms.
63
What is an RICS Guidance Note
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
64
What is an International Standard
High-level standard developed in collaboration with other relevant bodies - MANDATORY.
65
What is an RICS Jurisdiction Guide
This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
66
When was the Bribery Act introduced?
2010, came into force in 2011
67
What are the principles of the Bribery Act
Proportionate procedures
Communication
Risk assessment
Top-level commitment
Due diligence
Monitoring and review
68
What do you know about the Bribery Act?
- It is legislation that makes bribery illegal for companies working in UK.
- Also holds UK companies accountable for failing to prevent such acts by those working for or on its behalf, no matter where the act takes place.
69
What happens if you commit an act of bribery?
Up to 10 years in prison
Excluded from RICS
Unlimited fine
Banned from being a director of any company
70
How do you deal with a conflict of interest?
Openness and transparency.
71
What is PII?
Professional Indemnity Insurance
Covers a firm for a claim for financial loss.
Minimum level of cover based on turnover in the previous year
72
What are the levels of cover advised by the RICS?
£100k or less turnover - £250k
£100k - £200k turnover - £500k
£200k or over - £1,000,000
RICS advise it should also be on an ‘each and every claim’ basis.
73
What is the Assigned Risk Pool?
The ARP panel is a facility for trading member / firms who find themselves unable to obtain insurance in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
74
What does the RICS advise as the maximum level of uninsured excess on a PII policy?
£10,000,000 or less - The greater of 2.5% of the sum insured, or
£10,000
£10,000,001 and above - No limit set
75
What is run-off cover?
Ensures firms, members and their customers are not exposed to detriment in the period following a firm ceasing to trade. Minimum run-off cover is 6 years.
76
Do you know any case law regarding run-off cover?
Babb v Merrett - The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm’s branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm’s professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing.
The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer’s report and was unaware, at the time of purchase, of his identity.
Can come after the individual if business ceases trading therefore need to keep PI run off.
77
What is the name of the RICS journals?
MODUS
78
What punishments can the RICS issue?
- Expulsions of Regulated members
- In less serious cases where admitted, Regulatory compliance orders to ensure compliance with standards
- Where not admitted, referred to single member of conduct and appeal committee
- Most serious cases referred to a disciplinary panel
79
What complaints can the RICS investigate?
Any breach of their conduct
They will not investigate whether a high level of service is provided
80
What is the RICS ethics tree?
Sufficient facts?
Legal?
RICS Professional Standards?
Consulted with appropriate people?
Clear Reasoning?
Would you be ok if your actions were made Public
81
What was was a recent MODUS report
Hybrid modular construction: is it the future?
The UK is navigating some early bumps in the road with modular, while the sector is more developed in Asia, Scandinavia and the Netherlands
82
What are your company’s standards?
Equans expresses the desire to provide the right answer [ANS] to the equations [EQU] of our customers: the Right Answer providing a unique, innovative, custom-made set of solutions developed with accuracy and precision to meet our clients’ individual needs.
83
What should you send accompanying a fee proposal?
A set of T&Cs & scope of services
84
What is the client’s money protection scheme?
A scheme run by the RICS for clients to recover money that is lost by a firm.
85
What is the IES?
International Ethical Standards
86
What are the principles of better regulation?
How the regulator is going to regulate us - i.e. RICS. I will follow rules for members & firms
Proportionality
Accountability
Consistency
Targeting
Transparency
87
What is the RICS mantra?
Est Modus Rebus’ = There is measure in all things
88
What is a conflict of interest?
Anything that may impede, or be could be seen to impede, and firm or individual’s ability to act impartially and in the best interest of the client.
89
What are the types of Conflict of interest
Party - i.e company
Confidential information
Personal - i.e. friends and family
90
What is the annual return?
It is for RICS regulated firms to complete online and collects information on;
Whether firm hold client's money - if they do, an auditor from RICS regulation will periodically visit the firm
Principals
Training
General Activities
PII
Complaints
General insurance mediation work
Client's money
91
When was RICS founded?
1868
92
What groups run RICS?
- Privvy Council - Grants and awards royal charter
- Governing Council - Sets direction and strategy
- Regulatory Board - Administers regulation - indep chair
- Management Board - Day to day performance and business plan
- Audit committee - indep chair
93
What are the RICS requirements for a complaints handling procedure?
- It should be a 2 stage policy
- Complaints considered by a senior member of staff and response within 28 days
- If not happy, complaint referred to independent 3rd party - property ombusman o CEDR - Centre of effective DR or RICS ADR
94
How should client’s money be looked after?
Client’s money accounts can be ‘discreet’ or ‘general’
Accounts should be separate and clearly identifiable
The word ‘client’ should be used in the account name
Money should be available on demand
You should have written agreement with client regarding the payment of interest
95
What are the offences under the Bribery Act 2010?
Giving / receiving of a bribe
Offer or request of a bribe
Bribing a foreign official / politically exposed person (PEP)
Failing to prevent bribery
96
What can you do to mitigate PI claims?
- Keep full and detailed records of meetings
- 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
97
A junior surveyor in your team incorrectly over-certifies an interim valuation - what do you do?
- Check the facts and find out if it is actually over-certified
- Check if the valuation has been processed
- Withdraw and re-certify if not
If already certfied, explain to the parties and rectify next time
- Ensure there are procedures in place for it not to happen again
- If within correct timeframes issue a pay less notice to amend the error
98
What are the payment deadlines under HGCRA ?
Payment due after 7 days
Payment notice must be issued 5 days after due date
Pay less notice issued no later than 7 days before the final date for payment
99
What are the RICS requirements regarding professional indemnity insurance?
It provides minimum wording
It sets out minimum levels of indemnity
It sets out the maximum levels of uninsured excess
Run off cover must be in place for at least 6 years
It should include for past and present employees, directors and partners
100
What happens if the loss suffered exceeds the level of cover provided by the PI insurance?
The professional / firm is liable for the difference
101
Are you familiar with the term limit of liability? If so where would it be used?
It is the maximum value an insurance policy will pay out in the event of a claim.
102
What is a net contribution clause?
It seeks to ensure that the consultant’s liability is only for the loss they caused
If another party is also responsible, the client will have to sue them separately
103
If an estimate is incorrect, can the client claim damages against the QS?
Not necessarily, only if they can prove that the QS did not act with reasonable skill and care
104
What does the royal charter mean to you?
It is a decree that states the RICS must promote the usefulness of the profession
It shows RICS has a gold standard of excellence and integrity
105
If you are a sole trader, what should you have in place should you be unable to perform your duties?
You should have employed the services of a locum practitioner
106
What are the crimes under the Bribery act 2010?
Offering a bribe
Accepting a bribe
Promising a bribe
Requesting a bribe
Receiving a bribe
Giving a bribe
107
If you have declared a conflict of interest to your client and they state that they are happy for you to continue working on the project, what else do you need from them?
Informed Consent’ RICS provide a template
108
What is the ethical standards coalition?
They create international ethics standards
109
Who is RICS preferred PI provider?
I would refer to RICS published list of approved suppliers
110
What is Pledge 150?
In light of the 150th anniversary of RICS, they have pledged to try and eliminate youth homelessness
111
When did the Money Laundering Regulations come into affect?
2017
The update to this was the sanctions and anti-money laundering Act 2019, into force Jan 2020.
They make individuals and firms responsible for preventing money laundering by using similar principles to the Bribery Act.
They also cover the funding of terrorism
112
What are facilitation payments?
They are a payment made to a government official to expediate an admin process such as getting a visa overseas, common in Africa - Usually illegal unless it is totally above board. Can be seen as Bribery.
113
What are the dispute resolution procedures listed in your company’s terms of appointment?
Adjudication via the Scheme for Construction Contracts
114
How is the RICS governed?
It is self governed by the governing council
This is chaired by the president and includes members from all world regions
115
What are the CPD requirements?
48 hours/yr while in structured training, at least 50% formal
20 hours/year for members, at least 50% formal, recorded online
Ethics training every 3 years
116
What are the RICS 5 Core Ethical Standards?
Service
Trust
Integrity
Respect
Responsibility
117
What is your firm’s complaints handling procedure?
Complaints
- Acknowledgement within 1 working day - Customer Experience Team
- Response within 5 working days - Identified Service Area Lead
Complaint Escalation
- Acknowledgement within 1 working day
- Response within 5 working days - Identified Senior Manager
If still not happy, may be a requirement to refer to the property ombusman
118
What should you do if you receive a serious complaint?
Notify your professional indemnity insurance provider.
119
What is the Bribery Act?
Legislation introduced in 2010 that made bribery illegal in the UK.
It also holds UK companies accountable for it’s employees working abroad.
If you commit an act of bribery you will be excluded from RICS and could face up to 10 years in prison.
The principles of the Bribery Act are;
Proportionate procedures
Top level commitment
Risk assessment
Due diligence
Communication
Monitor and review
120
What is NDA?
Non-Disclosure Agreement
Legal contract between at least two parties that outlines confidential material
They are used by our clients to make sure commercially sensitive information is not shared
121
How does the RICS define best practice?
The RICS sets out best practice in it’s ‘Black Book’ suite of guidance notes
These are not compulsory but if there is a claim of professional negligence the courts will look at whether best practice was followed
122
What are Quality Assurance system standards?
ISO 9001
123
What would you do if your firm was holding client’s money that you couldn’t account for?
Try and locate owner
Hold for 6 years in a suspended account
If no-one comes forward you give it to a charity and obtain a receipt
RICS’s Lionheart do receipts
If the client comes forward they can reclaim their money from Lionheart
124
What is Lionheart?
LionHeart is the charity for RICS professionals, past and present, and their families.
The services range from financial support, health and wellbeing packages, free professional counselling, work-related support and legal advice, and help if you or one of your loved ones become seriously ill.
125
How do you carry out a valuation?
Review and arithmetic check application
Visit site to review progress
Use your company’s standard valuation template
Ask EA / CA to confirm if there’s any work not in accordance with the contract
Make sure any variations being claimed for have had instructions issued
Does payment for materials off site meet the requirements of the contract?
Has the amount stated as previously certified been checked against the last payment notice?
Has the employer been notified of any right to deduct liquidated damages?
Have the reasons for any deductions in the valuation been communicated in accordance with the contract?
Has the valuation been signed off by a director?
126
What are the timeframes for valuations under JCT 2016 contracts?
Due date every 4 weeks
Contractor to submit application no more than 7 days prior to due date
CA to submit payment notice no more than 5 day from due date
Latest date for payment is 14 days from due date
127
What does ISO stand for?
International Organisation for Standardisation
128
What changes do the new Ethics rules released Sept 2021 impose?
Live Feb 2022
Combine the Rules for businesses & individuals with focues on behaviours & sustainability
129
Example of conflict of interest
Working for a MC, asked to provide services to a SC.
Disucssed with MC to ensure openess & transparency. MC agreed with agreement SC package internally would be dealt with by another member of staff and overseen by MQS.
Received formal consent from MC
130
Why are gifts considered bribery?
Depends what is it and if it is proportionate & reasonable
Could sway judgement
What would others think
May suggest improper obligation
Have a duty to fulfill obligation (not for expectation on a gift)
Could this lead to prefferential treatment in the future
131
Example of importance of acting ethically
Employee at Savills recently dismissed after racist tweets posted post Euro finals (Sept 2021)
Plagiarism within an APC submission resulted in an RICS disciplinary for individual & employer. Expelled from RICs as acted without integrity.
Can impact on employment and other professional bodies also.
132
Responsibility of a principle
Ensure that all the RICS requirement are met - annual return, training, that all professional, technical & ethical standards are met
133
Responsibility of Company Director
As a director, you’re legally responsible for running the company and making sure information is sent to companies house on time.
This includes:
the confirmation statement
the annual accounts, even if they’re dormant
any change in your company’s officers or their personal details
a change to your company’s registered office
allotment of shares
registration of charges (mortgage)
any change in your company’s people with significant control (PSC) details
134
Min run off
£1m for 6 years
135
What do you include in fee proposals
Scope, fee breakdown, clarifications & exclusions, details of insurances & PII
136
Where can you go if cant seek PII
Assigned Risk Pool - The ARP panel is a facility for trading member / firms who find themselves unable to obtain insurance in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
137
What else do you need if setting up a business
Notify Companies House
Obtain PII & employers liab
Inform the RICS of your intentions
Prepare a complaints handling procedure
Set up financial accounts
Set up client’s money account
Abide by rules for member and firms
Use appropriate RICS designations
138
Are you aware of any case law around importance of PI & run off cover?
Merrett & Babb -2002
The Court of Appeal held by a majority that the purchaser (Merrett) was entitled to recover damages from the defendant personally (Babb) , despite the fact that the purchaser had not actually seen the valuer’s report and was unaware, at the time of purchase, of his identity.
139
When can you divulge confidential information
If a Court orders
2. If you receive informed consent
140
What is confidential
Information that is not in the public domain
141
How do you manage a Conflict of interest
Transparency with all parties involved.
Information barrier - both physical & electronic.
142
Who does PII protect
The client.
In the event I make a mistake from financial loss.
And my business from bankruptcy
143
When is a firm required to be regulated (mandatory)
If undertaking surveying services to public
In UK
If 50% or more of directors are RICS members
144
When is a firm eligible to register
If undertaking surveying services to public
2. If 25% or more of principles are RICS members
145
What would you do if you were setting up your own firm?
Inform the RICS of your intentions
Obtain PII cover
Obtain Employer's liability insurance
Prepare a complaints handling procedure
Set up financial accounts including client's money account
Abide by rules for member and firms
Use appropriate RICS designations
Notify companies house
146
How would you determine time period run off cover would be required?
Underhand (signed by paties - simple contract) - 6 years
Under seal (signed by parties & witnesses & executed as a deed) - 12 years
Latent defects - 15 years
147
What would your approach be if client wanted to pay you in advance for works
Advise clients who pay fees in advance that this money is not covered by the Client Money Protection scheme.
Provide a receipt
RICS advises against cash payments & request made by transfer & held in a client account.
148
Impact of Covid & Brexit on Ethics
Brexit saw changes to GDPR Uk rules that members need to be aware of.
Covid forced everyone online brought new requirements for security of personal and confidential information.
Covid put more pressure on businesses to act responsibly around staffs safety & respect individals opinions around working remotely and vaccinations.
Claims - I acted with integrity, responsibly & provided a high level of service
Importance of remaining solvent & provide required level of PII
Increase PII premiums
149
What are the RICS guidance re gifts & hospitality Give me an axample
Must be reasonable & proportionate.
i.e. not a invite to a sporting event / expensive hamper during a tender process where it could be seen to sway my judgement, however if this sporting event was at the end of a project for the whole team as a thank you, I would not consider this inappropriate.
Gift value internally set at £40.00, must declare all gifts to director. Declined / accepted and shared amongst team.
Depends on value of gift, circumstances if it is appropriate & proportionate.
150
Example of dealing with a complaint
In first instance, speak to individal to hear issue.
Listen & proposed formal response within 48 hours
Proposed solution in writing
Follow up week later to ensure client happy
151
What are Bye-Laws?
A law or rule governing the internal affairs of an organization.
A secondary law.
e.g.
1. Definitions set out by RICS
2. Membership & registration
3. Designations
4. Contributions to Funds
5. Conduct
6. Governing council, officers & staff
7. Subordinate boards, officers & staff
8. Procedure for general meetings
9. Accounts & Audit
10. General
152
What needs to be in place if a business is to cease trading?
PII run off cover
Return any client money
Hold client files for min 6 years
Hand over work to another company to ensure continuity of work
153
What is test for bribery?
Would a reasonable person in UK deem actions reasonable and proportionate
154
What would you do if you suspected money laundering?
Report to line manager /money laundering officer
2. National crime agency and complete a suspicious activity report (SAR)
155
What must a regulated firm have in place to comply with the RICS bribery PS?
Not to offer or accept (directly or indirectly) a bribe
Have plans in place to comply with bribery & corruption laws & ensure followed
Report any activities of breach
Act with due dilligence & evaluate risks that face company
Retain information noting how company met requirements of this PS.
156
In relation to bribery & corruption what must a RICS member do ?
Not offer /accept a bribe
Knowledge of bribery & corruption to comply with PS
Report any breaches
157
What sort of things must a regulated firm do in relation to money laundering & terrorism financing?
Not facilitate or be complicit
Have training in place
Report suspicions
Understand client and purpose of transactions
Verify client & basic identity checks
Record & retain how firm met the req of RICS PS
158
In relation to bribery, corruption, money laundering & financing terrorism - what guidance does RICS provide & what sort of practical things can a company put in place?
Witten policy
Encourage transparency for gifts & hospitality, charitable donations, COI
Provide training & guidance to staff
Code of behaviour for staff
Ensure any third party suppliers also compliant
Whistle blowing policy
159
chair of gov council?
160
Senior Vice President
Justin Sullivan
161
Chair management board
Martin Samworth
162
What are the minimum requirements for PII ( As per RICS guidance April 2021)
Minimum wording (written on a full civil liability basis)
Run off cover
Have fire cover (cannot exclude buildings 4 storeys & under)
Fully retroactive
Cover past and present employees
163
What is the difference between Professional integrity & Professional ethics?
a. Prof integrity – what we do – open honesty & transparency
b. Prof ethics – how we behave & framework of how we act
164
How does the RICS promote sustainability?
a. RICS SKA rating for internal fitouts
b. Sustainability reports
c. ICMS
d. New rules for firms/ members1.
165
What would you do if you suspect money mishandling within your business?
a. Report to senior manager / compliance officer
b. Notify PII or police
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interim ceo
Richard Collins
