Ethics, Rules of Conduct and Professionalism

Question 1

Tell me a bit about yourself? (Not Ethics but don’t know where else to put it)

Answer 1

My name is Warwick Stockdale, I have been working as a Quantity Surveyor for almost 11 years now.

I joined McBains about 4 years ago where I work in the London Cost Management team.

I work on projects pre and post contract, undertaking tasks such as cost plans, cost reports, valuations, variation assessments.

I have worked in various different sectors including healthcare and local authority projects.

Question 2

Define the term ‘Ethics’

Answer 2

Moral principles that govern a person’s behaviour and actions

Question 3

Define the term ‘Rules’

Answer 3

Rules are formal and are a set of guidelines we abide to.

Question 4

Give an example where you have complied with one of the 5 rules of conduct?

Answer 4

I found a mistake in the contractor’s valuation application. I informed them of the mistake and made my valuation correctly.
This complied with RICS Rule of Conduct 1.

Question 5

Name 2 examples of when you worked within Rule 1:

Answer 5

• I have identified and rejected hospitality gifts when they have felt excessive
• I have been transparent and open about contractors valuation mistakes

Question 6

Name 2 examples of when you worked within Rule 2:

Answer 6

• I have informed a client and my director when I did not have the correct level of expertise to undertake a life cycle costing exercise
• I have attended regular CPD specific to projects I am working on and any industry updates.

Question 7

Name 3 examples of when you worked within Rule 3:

Answer 7

• I have tailored a cost report at Leopold Buildings to the client specific requirements
• Understood the clients objectives before undertaking work
• Ensure a QA process is undertaken for all reports and documents issued.

Question 8

Name 2 examples of when you worked within Rule 4:

Answer 8

• I have insured that all members of a meeting have had a chance to voice their opinion
• I spoke up when I heard someone making a joke about people being ‘on the spectrum’

Question 9

Name two examples of when you worked within Rule 5:

Answer 9

• I would ensure that any complaints are taken seriously
• Raised concerns when a senior asked me to ignore an error in a contractor’s valuation.

Question 10

A close friend of yours joins your project as the Contractors Site Manager - What should you do?

Answer 10

As soon as I was aware I would tell the client and my employer.

This could be viewed as a conflict of interest.

Consideration should be taken whether I should step back from the project.

Question 11

Explain the McBains Complaints Handling Procedure

Answer 11

Compliant Received

• As per the RICS requirements, we have a complaints log
• PI Insurance notified
• Operations Director has 7 days to acknowledge compliant
• 28 days to write back to complainant to inform outcome of investigation
• If dissatisfied complaint can be raised to Managing Director
• Managing Director has 14 days to formally respond.
• If complainant still unsatisfied, resolution through mediation and then arbitration.

https://mcbains.sharepoint.com/Policies/SitePages/Complaints-Handling-Procedure.aspx?web=1

Question 12

Explain the RICS Complaints Handling Procedure

Answer 12

Stage 1 - Complaint issued via online complaints form

RICS acknowledge receipt within 5 working days

Full response issued within 15 working days, unless 3rd party information is required and in that case a timescale will be provided in 15 days, and regular updates thereafter.

Stage 2 - If not happy then can ask to speak to an RICS manager who will review the outcome and make a decision with the complainent about how best to resolve the matter.

Stage 3 - If still not happy with outcome then can make an appeal written request to do so within 28 days of the outcome date.

https://www.rics.org/content/dam/ricsglobal/documents/about-rics/rics-global-complaints-sept2024.pdf

Question 13

A contractor invited you on an all expenses paid corporate day. What should you do?

Answer 13

Say no. This could be viewed as a bribe. Any gift needs to be proportionate

Question 14

What is the legislation surrounding bribery?

Answer 14

Bribery Act 2010

Question 15

What is the ethos behind the bribery act?
Purpose, potential punishments and offences

Answer 15

Introduced to enhance UK law on bribery in 2010.
An individual can get up to 10 years in prison and an unlimited fine.
A company can get an unlimited fine and a ban on EU public procurement.

Four key areas construed as a bribe:
- accepting a facilitation payment or bribe,
- bribing another person
- bribing a foreign official
- failure of commercial organisation to prevent bribe.

Question 16

Who is the CEO of the RICS?

Answer 16

Justin Young

Question 17

Who is the president of the RICS?

Answer 17

Nick McClean - Acting president

Question 18

What are the current CPD Rules for Chartered Surveyors?

Are they changing?

Answer 18

20 hours in total

10 hours formal & 10 hours informal.

They may change from January 2026, Standards and Regulations board have approved recommendations to inforce updates, including:
- Allowing members to carry over 15 hours from one year to the next
- mandatory topics (including ethics, sustainability, AI and data & technology)
-new member app for recording CPD

https://www.rics.org/news-insights/whats-new-in-rics-cpd-framework-rics-announces-cpd-framework-updates

Question 19

Your neighbour asks for some free advice on building an extension. What should you do?

Answer 19

I would decline and refer them to them to my company to get a fee.

This is because I am not covered by Professional Indemnity Insurance to work on my own

Question 20

What is Professional Indemnity Insurance?

Answer 20

It is in an insurance that protects the claimant and the policy holder (company and their employees) from professional negligence. It protects the policy holder against legal costs and claims for damages to third parties.

Question 21

Where do firms find professional indemnity providers

Answer 21

The RICS provide a list of PI insurers that firms can pick from

Question 22

What are the minimum levels of PI insurance?

Answer 22

> £100,000 Turnover = £250,000
£100,001 - £200,000 Turnover = £500,000
<£200,001 Turnover = £1m

Question 23

What are the Maximum levels of uninsured excess?
Explain the concept of uninsured excess

Answer 23

Maximum level of uninsured excess (the part of each claim the firm must pay itself)

Indemnity of £10 million or less - The greater of 2.5% of the sum insured, or £10,000

Indemnity over £10 million - No limit set

Question 24

What is Professional Indemnity Insurance calculated on?

Answer 24

Annual company turnover & Risks involved in the work they undertake

Question 25

Process to set up an RICS regulated firm?

Answer 25

R – Regulation Application - Submit the RICS Firm Regulation application via the RICS website. E – Eligibility Check - Ensure the firm meets eligibility requirements (e.g., at least one RICS-qualified principal). A – Appoint a Responsible Principal - Designate a Responsible Principal (usually an MRICS/FRICS member). L – Legal Structure - Choose the legal structure of the firm (Ltd company, partnership, LLP, etc.). M – Mandatory Documents - Prepare key documents: 1) Professional Indemnity Insurance (PII) 2) Complaints Handling Procedure 3) Terms of engagement 4) Compliance statements A – Agree to Rules - Comply with RICS Rules of Conduct for Firms, including ethics and standards. P – Pay Fees - Pay the registration and annual regulation fees.

Question 26

Documents required for setting up an RICS regulated firm?

Answer 26

Professional Indemnity Insurance Complaints Handling Procedure Terms of engagement Compliance statements/procedures

Question 27

You discover a £10k error in a contractors valuation, your manager tells you to keep quiet about it - What should you do?

Answer 27

Take responsibility. Tell your manager that’s not right and not in line with the RICS rules of conduct. Report it higher

Question 28

Your client wants to pay £30k in cash to pay for our invoice, What should you do?

Answer 28

This is a red flag for money laundering. Refuse and request a bank transfer.

Question 29

Why must you act with professional competence?

Answer 29

To ensure I do not advise my client incorrectly which could lead to a compliant or claim of negligence

Question 30

What is Locum?

Answer 30

A chartered QS or Accountant to take over the responsibilities of a firm who has a sole principal. They must have appropriate arrangements in the event of death, incapacity to work or external absence

Question 31

What is a Conflict of Interest?

Answer 31

A conflict of interest is a situation where a chartered surveyors Personal, Professional, or Business interests may interfere with their ability to work impartially

Question 32

What is a Black Book?

Answer 32

A collection of technical practice documents which covers all processes throughout the construction project life cycle.

Question 33

Name a RICS Black Book?

Answer 33

Retention Cost Reporting Tendering Strategies

Question 34

When is the black book due for an update? What are the expected improvements?

Answer 34

Sometime in 2025 with improved presentation and navigation.

Question 35

What tools are there to ensure RICS members are working in an ethical manner?

Answer 35

The RICS have produced a Ethical Decision Tree to consider any decision.

Question 36

What are the RICS rules on Social Media?

Answer 36

All members and firms should act in line with the 5 Rules of the RICS even when on social media.

Question 37

What is run off cover?

Answer 37

Run off cover is retroactive professional indemnity insurance for firms that no longer exist. The minimum is time for cover is 6 years for a contract executed under hand 12 years for a contract executed as a deed.

Question 38

What are red flags for money laundering?

Answer 38

- Money coming from high risk countries - Money coming from various bank accounts - Large cash payments - Overpayment

Question 39

What is RICS Assigned Risk Pool?

Answer 39

A safeguard available to UK RICS regulated firms who are unable to obtain PI insurance in the open market. The pool is designed to ensure such professionals can continue to practice whilst not having cover. Should be viewed as a last resort.

Question 40

What is Isurv?

Answer 40

An online knowledge portal provided by the RICS. Objective is to support chartered surveyors

Question 41

What are the RICS by laws?

Answer 41

Governing rules and regulations of the Royal Institution of Chartered Surveyors (RICS). These bylaws cover a broad range of guidelines such as - professional conduct - ethical standards - membership qualifications - disciplinary procedures - management of the Institution.

Question 42

What are the Global Professional and Ethical Standards?

Answer 42

RICS provides international standards to protect consumers and businesses, ensuring professionalism across the built and natural environment. The standards documents lay out the ethical, conduct and competence expected for Members of RICS.

Question 43

Define the term integrity?

Answer 43

Integrity relates to being honest and truthful and having strong moral principles

Question 44

How have you displayed integrity within your career?

Answer 44

I ensured that when a contractor made a formula error within their application they were made aware and this was corrected. I have also made valuation assessments higher than claimed by contractors, as they had under claimed some works.

Question 45

What did you do when the contractor offered you hospitality to Ascot?

Answer 45

I declined the invite as this could be viewed as a bribe. I also informed the Leopold client of the offer and that I had declined it.

Question 46

What legislation surrounding bribery?

Answer 46

Bribery Act 2010

Question 47

What offences are prohibited under the bribery act?

Answer 47

Offering or giving a bribe Requesting or receiving a bribe Bribery of a foreign public official Failure of a commercial organisation to prevent bribery

Question 48

What RICS guidance is there surrounding bribery?

Answer 48

Countering bribery, and corruption, money laundering and terrorist financing

Question 49

What is included within a gifts register?

Answer 49

The McBains gifts register includes: - Value - The company who has offered the gift - The date - Justification for acceptance

Question 50

Why is a gifts register required?

Answer 50

Its used to prevent any conflicts of interests or bribery claims Ensures a record is kept & promotes transparency as well as any reasons why a gift was accepted.

Question 51

What is a Scope of Services?

Answer 51

A Scope of Services is essentially a detailed document outlining the range of services a firm or professional will provide on a project.

Question 52

When should you agree a Scope of Services?

Answer 52

A Scope of Services should be agreed upon by the client and surveyor before the work commences to ensure all parties are aware of their obligations

Question 53

What do you do if the client asks you to undertake additional works?

Answer 53

Before undertaking any additional work - an additional scope of services should be agreed to. This additional fee should be proportionate to the original appointment.

Question 54

What is a Conflict of Interest?

Answer 54

A situation where a chartered surveyors, personal, professional and business interests may interfere with their ability to work impartially.

Question 55

Why was the Sports Retail Store in Edinburgh situation viewed as conflict of interest?

Answer 55

I was working for the Employer, working for the architect as well would compromise my ability to work impartially for either.

Question 56

Why do you want to become a member of the RICS?

Answer 56

I want to improve my knowledge of the profession, further my career and have the opportunity to represent the RICS in a positive and meaningful way.

Question 57

What is your firms policy or limit on gifts in terms of financial value.

Answer 57

The company do not specify an upper limit as long as the gift is reasonable, lawful and transparent. If the value is particularly high then it is difficult to see how it would be reasonable. Gifts over £30 must be logged in a gift register.

Question 58

What is your firms gift policy?

Answer 58

Gifts and Hospitality: Permitted if reasonable, lawful, transparent, and not intended to influence business decisions. Cash or cash equivalents are not allowed. Prohibited Conduct: Bribery. Retaliation against whistleblowers is also not allowed. Reporting and Responsibility: All employees must comply with the policy, report any concerns or suspected breaches, and may face disciplinary action for violations. Anything over £30 must be logged and approved.

Question 59

What are the different types of conflict of interest? Give example of each

Answer 59

3 different types of conflict of interest listed in 'Conflicts of interest' RICS Professional Standard. Party Conflict - Where an RICS members duty to act in the interests of a client conflicts with a duty owed to another party in the same professional assignment. Example - Working for both the Employer and Contractor on the same project. Own Interest Conflict - Where an RICS members duty to act in the interests of a client conflicts with their own interests. Example - Personal gift Confidential Information Conflict - Where an RICS member has a duty to provide information to one client and a duty to another client to keep that same information confidential. Example - QS working for employer in a tendering process, as well as a tenderer. The QS would know the employer's budget which should be confidential but this information would help the tenderer.

Question 60

What are the requirements when handling clients money?

Answer 60

As consultant company, we don’t hold money, however we would follow RICS rules and regulations and the current UK legislation and contact RICS to ensure we had got everything. My understanding of this would be: Register with RICS Client Money Protection Scheme Create a separate clearly labelled account for the money Ensure money is available to client when required Monies are only expended as per the client agreement Monies are paid into account promptly Ensure compliance with laws, and reporting breaches or misappropriation to RICS and clients.

Question 61

What is the client money protection scheme?

Answer 61

RICS operates a Client Money Protection Scheme (CMPS) in the UK. This scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client's money, up to the limits and exceptions set out in the scheme rules.

Question 62

How can you prevent money laundering?

Answer 62

Conduct a money laundering & terrorist finance risk assessment of the company Implement systems to deal with money laundering Do not accept cash payments, there is no auditable trail. Can do a D&B check on client to check they have the money to pay.

Question 63

What guidance is in place to help you decide what is appropriate in terms of gifts and hospitality?

Answer 63

RICS ethics decision tree. McBains Policy and guidance. No limit as long as it is reasonable, any gifts over £30 must be added to a gift register.

Question 64

What does RICS guidance state in terms of requirements for Complaints handling procedures?

Answer 64

- Publish your complaints-handling procedure - Firms shall maintain a complaints log. - Complaints handling procedure should have an Alternative Dispute Resolution procedure that is approved by the Standards and Regulations Board

Question 65

Talk me through the steps you would take when declaring a conflict of interest in the workplace.

Answer 65

- Disclose in writing the nature of the conflict to the client - Step down from position OR obtain written expressed consent to continue in role - Enforce an information barrier if necessary

Question 66

What does the RICS Conflicts of Interest Professional Standard say?

Answer 66

RICS members and firms must not advise a client if it would be a conflict of interest, unless all those affected have provided their Informed Consent.

Question 67

What happens if the money can’t be returned?

Answer 67

All efforts must be made to give the money back to the client in accordance with RICS money handling rules and RICS Client Money Protection Scheme but if these are unsuccesful after 3 years since receipt, the money can be donated to charity.

Question 68

What is money laundering governed by? What assessment does it include?

Answer 68

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (Money laundering regulations 2017) The MLR 2017 sets out the obligations of firms working in areas of higher money laundering risk. They aim to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach. Including carrying out a money laundering and terrorist financing risk assessment (regulation 18) Firms must put measures in place to identify their clients and monitor how they use their services. https://www.lawsociety.org.uk/topics/anti-money-laundering/quick-guide-to-the-mlrs#quick11

Question 69

What does the term “social value” refer to and how might you come across this in the construction industry?

Answer 69

Social value refers to the positive impact an organization or construction project has on people, relationships, and communities, beyond the financial bottom line. Could include: -Creating jobs -Better education -More training opportunities for apprentices -Improved sustainability

Question 70

What does contra charge mean?

Answer 70

A contra-charge is a deduction made by one party (usually the employer or main contractor) from payments due to the other party (often a contractor or sub-contractor). They are used to offset perceived costs, such as for defective work, delay, damage, or other breaches of contract.

Question 71

What are the RICS by laws?

Answer 71

RICS (Royal Institution of Chartered Surveyors) Bye-Laws are the rules and regulations governing RICS' operations, membership, and disciplinary actions. They provide the framework for RICS's self-regulatory functions.

Question 72

What is included within a gifts register?

Answer 72

The McBains gifts register includes: - Value - The company who has offered the gift - The date - Justification for acceptance

Question 73

Why is a gifts register required?

Answer 73

A gifts register is: -Crucial for maintaining ethical standards and avoiding legal and reputational risks. -helps organisations demonstrate commitment to avoiding bribery and corruption, and complying with anti-bribery laws.

Question 74

What are the signs of modern slavery?

Answer 74

Appearance (malnourished, unkempt, wear the same clothes) Isolation and control (restricted movement, withdrawn, avoid eye contact) Picked up and dropped off by others Lack of english language Low morale

Question 75

How to combat modern slavery?

Answer 75

Have an understanding of modern slavery Learn to spot the signs Raise awareness

Question 76

How would you report suspected modern slavery?

Answer 76

Call the modern slavery helpline, or report it to the police.

Question 77

What happens to PI once you stop trading?

Answer 77

RICS requires run-off cover to be in place for a minimum of 6 years from cessation of practice. There is a run-off pool for firms unable to get run-off from their insurer.

Question 78

Any guidance on who can use the lion logo?

Answer 78

It can be used by RICS regulated firms and RICS-qualified professionals.

Question 79

Any guidance on how the logo can be used? Colour? Etc.

Answer 79

It must remain unedited and only in black or white

Question 80

What insurance would be required to set up your own firm?

Answer 80

PI Public liability insurance Employer liability insurance Locum set up

Question 81

PI Insurance – What level of PI insurance would consultants or contractors require depending on the value of the project?

Answer 81

There is a minimum required by RICS (based on company revenue) but actual level is determined by: - Value of the project? - Absolute worst case scenario for a project and what would this cost to fix? - Clients insurance requirement as part of the appointment? - Size, nature and complexity of the project.

Question 82

If you left the company and were contacted by the previous client, what would you do?

Answer 82

It would depend on the terms of my previous company when I left. Many companies have written in to their terms of engagment that do not allow ex employees to work for previous employers for a time period after they have left the company.

Question 83

If you set up your own firm and a previous client wished to engage your services, can you operate for them?

Answer 83

It would depend on the terms of my previous company when I left. Many companies have written in to their terms of engagment that do not allow ex employees to work for previous employers for a time period after they have left the company.

Question 84

At a new firm if you were to operate for a previous client, can you provide advice on a previous project?

Answer 84

I would refer them back to my previous employer as the project was theirs. If I am the only person able to help, I could potentially contact my previous company and ask if they would be happy to employ me on a freelance basis to advise on this project.

Question 85

If a client asks you to take over from another QS firm on a project, what would you do?

Answer 85

Before undertaking works, I would consider speaking to the other QS firm to ensure that their contract has been terminated and that they have been fully paid up by the employer.

Question 86

What is RICS Rule 1?

Answer 86

Members & Firms must be honest, act with integrity and comply with their professional obligations, including obligation to the RICS.

Question 87

What is RICS Rule 2?

Answer 87

Members & Firms must maintain their professorial competence and ensure that services are provided by competent individuals who have the necessary expertise.

Question 88

What is RICS Rule 3?

Answer 88

Members and Firms must provide a good quality and diligent service

Question 89

What is RICS Rule 4?

Answer 89

Members and Firms must treat others with respect and encourage diversity and inclusion

Question 90

What is RICS Rule 5?

Answer 90

Members and Firms must act in the publics interest and take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Question 91

What is informed consent? | What must the party demonstrate?

Answer 91

Consent given willingly by a party affected by a Conflict of Interest. That party must have demonstrated that they understand: * that there is a conflict of interest * the relevant facts the surveyor knows * what the conflict of interest is * that a conflict of interest might affect the surveyors ability to advise or act fully in the client's interest.

Question 92

What is an information barrier?

Answer 92

The physical or electronic separation of individuals within the same firm that prevents confidential information passing between them.