Mandatory Flashcards
1
Q
What are the RICS Rules of Conduct?
A
- Be honest, act with integrity and fulfil professional obligations
- Maintain professional competence and ensure competent individuals undertake the relevant tasks
- Provide good and diligent service
- Respect others and encourage diversity and inclusion
- Act in the public’s interest, take responsibility for their actions and maintain public confidence in the profession
2
Q
What are the professional obligations of members?
A
- Members must comply with the CPD requirements set by RICS, which require 20 hours of CPD each calendar year.
- Members must cooperate with RICS.
- Members must provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority.
3
Q
What are the professional obligations of firms?
A
Firms must…………..
- Must publish a complaints-handling procedure.
- Undertake adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their work to continue in the event of their inability to work.
- Firms must cooperate with RICS.
4
Q
Talk me through your firm’s complaints handling procedure?
A
- Points to a manager for the complaint to be filed & to notify the PI insurer.
- Requires that the complaint be written.
- Informs the complainant that it has been received within 7 days, and there will be a proposed resolution within 21 days from that point
- Points to a 3rd party adjudicator whom the complainant can go to if they are unhappy with the response.
5
Q
What must a complaints handling procedure include?
A
- Details of the policy should be issued to the client.
- The process must include a redress mechanism.
- The complaint must be investigated within 28 days.
- All complaints must be recorded.
- We must note the need to advise PI insurers of a complaint immediately.
6
Q
What is an independent redress scheme?
A
A redress scheme provides a clear route to an impartial 3rd party to review the complaint when internal complaints procedures have been exhausted.
7
Q
When does a firm have to register for regulation?
A
If they are providing surveying services to the public & over 50% of principals are RICS members.
It is possible to register if at least 25% of principals are members.
8
Q
What time scales are involved with a complaint?
A
Must confirm receipt within 7 days, with 21 further days to propose a resolution.
9
Q
What does the Professional statement on conflict-of-interest show?
A
The statement provides clarification on:
- Competing bidders.
- Effective date/transition.
- Conflicts arising during professional assignments.
- And passing confidential information to insurers and legal advisors.
10
Q
What is a responsible principal?
A
A Responsible Principal will have primary responsibility for ensuring that RICS’ standards are applied & upheld within a regulated firm.
11
Q
What are the differences between guidance notes and professional statements?
A
Professional statements are mandatory requirements or rules, while guidance notes offer recommendations or best practices.
12
Q
What are the requirements regarding Professional Indemnity Insurance set by the RICS?
A
- The policy cover must be made on an ‘each and every’ claim basis.
- The RICS sets out the minimum levels of indemnity.
- And maximum levels of uninsured excess.
- Run off cover must be in place for at least 6 years
13
Q
What are the RICS minimum standard for insurance requirements?
A
- £100k or less turnover = £250k cover
- £100,001-£200k = £500k cover
- over £200k = £1m in cover
The max levels of uninsured cover are:
Cover of up to £500k = max uninsured excess is the greater of £10k or 2.5% of sum insured.
Cover over £500k = max uninsured excess of 2.5% of sum insured.
14
Q
How are the requirement of professional indemnity insurance captured in the new set of rules?
A
Appendix A - firms responsibilities to RICS
15
Q
Why could you not advise on VAT for Acacia Road?
A
I am not qualified or competent to provide advice on tax-related matters, and therefore advised the client to contact a chartered tax professional and provided some contacts that could assist.
16
Q
What sort of information do registered firms have to
send to the RICS annually?
A
It is called annual return and carried out on-line. Failure to do so leads to a fixed penalty. This includes:
- Nature of clients.
- Training provision.
- Complaints handling procedures details and records.
- PI insurance details.
- Whether the firm holds clients’ money.
17
Q
What should you get from your client if both the client and you are happy to proceed with a conflict?
A
Informed consent
18
Q
What Internal client care procedures are set out in Appendix A of Professional Obligations to RICS?
A
Appendix A highlights the requirement for a complaint-handling procedure
By having a complaint handling procedure in place, this ensures standards are upheld in the industry.
19
Q
Explain how work is checked in your organisation?
A
My organisation uses a quality assurance process whereby junior members of the team will spot check quantities for accuracy and check formatting and grammar.
A director then reviews the contents before being issued to the client.
20
Q
How would you identify the needs of a client?
A
Holding discussions regarding project key deliverables & the scope of services required.
21
Q
What are scope of services?
A
The defined boundaries of work or the specific tasks and responsibilities that a firm will undertake for a client.
22
Q
What is a Client Brief?
A
It is a formal statement of the objectives and operational requirements of the finished project
23
Q
What do you need to consider when preparing a fee bid?
A
- Understanding the Client’s objectives
- Establishing your scope of services and the fee for doing so
- Level of resource available to deliver the work to a high standard
24
Q
What makes up a fee bid proposal?
A
- Identification of the Client’s needs & key deliverables.
- The proposed fees.
- Scope of services.
- Supporting CV’s.
- The Conditions of Engagement.
25
What is included within an appointment documentation? What do you include in a fee appointments?
1. Scope of services
2. Agreed fee
3. Terms and Conditions
26
If your client asked you to lower your fees because of their limited funding, what would you do?
1. The client would have to pay the required price for the level of service being provided.
2. I would review the scope of services and see if there were any scope reduction options that we could remove to reduce the fee payable, however, this may not be possible.
27
When should you decline an instruction of new work from a client?
1. If there is a Conflict of Interest.
2. My firm may not be able to resource the job adequately.
3. If the project is outside of my skillset.
4. Suspicions of money laundering
28
What would provide suspicion for money laundering?
1. Complex offshore business structure.
2. Large unexplained cash deposits.
3. Secretive behaviour.
4. High-risk country such as Syria.
29
Give me an example where you have tailored decision making to meet client objectives?
On Acacia Road, when the client's budget was exceeded, I undertook VE and scope reduction exercises to bring the budget back in line with client objectives.
30
Please explain to me your approach when negotiating in challenging circumstances?
1. Firstly I undertake a review on the matters under consideration and form an opinion.
2. I then will compile supporting documentation as substantiation to any claims.
3. I will discuss with the client negotiable items which can be conceded in addition to the non-negotiable items.
4. During negotiations I try to develop a partnering approach rather than an adversarial one
31
What makes a successful negotiation?
1. Preparation and collating supporting documentation.
2. Each party should get the chance to present their case in a calm forum.
3. Identification of bargaining positions.
4. A confirmation of next steps to bring the negotiations to a close with written follow up.
32
Give me an example of a negotiation you have been involved in, and how you were able to negotiate them down
1. I have been involved in many tender negotiations.
2. During the tender analysis period I compare my market tested data, as well as against each other’s tender and raise to tenders where they are higher.
3. Furthermore, during tender interviews with the final contractors I seek to negotiate the best project terms for my client which includes negotiating the overall OH&P rates for the project.
33
What is the Health and safety work act 1974?
* It is the primary piece of legislation in the UK concerning occupational health and safety.
* It establishes a general framework for employers to ensure the health, safety, and welfare of their employees and others affected by their work.
34
What is the RICS Surveying safely professional standard?
Contains good practice principles for the management of health and safety for RICS firms and members. Contains:
1. responsibilities
2. assessing hazard and risk
3. occupational hygiene/health
4. visiting sites
5. fire safety
6. general procurement
35
What do CDM 2015 regulations state?
These regulations cover various aspects of construction, including:
1. Planning
2. Staffing
3. Collaboration
4. information sharing and communication related to health and safety risks.
36
What H&S related items do you include in the preliminaries?
1. Allowance for PPE, temporary fire alarms & extinguishers
2. Health and safety manager
37
What does a balance sheet show?
Is a snapshot in time of company assets, liabilities and capital at that point in time.
38
What does a profit and loss account show?
A profit and loss account is a financial statement of income and expenditure over a reporting period, which identifies if the company made a net profit or loss in the period.
39
How did you assess the profit and loss of each contractor on the PQQ for Project X?
1. In pre-qualification, I always request 3 years of company accounts so I can review the changes over the period. I will review:
2. The trend in revenue over the years
3. Level of cash in the bank
4. Overall, whilst I would review the accounts at a high level, I would advise the client to undertake formal credit checks, such as through a Dun & Bradstreet report.
40
What is included in a Dun and Bradstreet report?
A Dun and Bradstreet report typically has three main scores that assess:
1. The business credit
2. commercial credit score.
3. And the financial stress score.
41
What are your company’s current business objectives?
1. Increase headcount to 50 members within 3 years
2. Increase revenue 10% year-on-year
3. Expand further into new sector such as hospitality and leisure
42
What is PEST analysis?
PEST anlalysis looks at the factors influencing market conditions, including:
1. Political influences.
2. Economical influences.
3. Socio-demographical
influences.
4. Technological influences.
43
What is SWOT analysis?
1. A tool to assess Strengths, weaknesses, opportunities and threats to a firm.
2. This is carried out with a view to exploiting strengths and opportunities and mitigate weaknesses and threats
44
What must a business do when setting by a RICS firm?
1. Contact the RICS for guidance and obtain a company start up pack.
2. Inform the RICS and register for regulation.
3. Prepare a complaints handling procedure.
4. Obtain Professional indemnity insurance cover.
5. Abide by the Rules of Conduct for Firms.
6. Use the designation ‘Regulated by RICS’ on all practice material.
45
What does the guidance note Conflict avoidance and dispute resolution in construction show?
1. Summarises what is meant by conflict avoidance and dispute resolution.
2. It identifies the key issues that all surveyors should understand
46
Please highlight the key points in RICS Guidance Note on Conflict Avoidance and Dispute Resolution in Construction?
The guidance note highlights 3 different levels including:
1. General Principles (Dispute resolution techniques)
2. Practical application (Conflict avoidance)
3. Practical considerations (dispute escalation clauses)
47
What is dispute resolution?
Actions and processes taken to resolve contractual disagreements between parties.
48
What is negotiation?
Negotiation is where the parties reach an agreement through an informal or private discussion
49
Name the different mediation methods
1. Mediation
2. Adjudication
3. Arbitration
4. Litigation
50
What would your considerations be prior to selecting a form of dispute resolution?
1. The cost of dispute resolution in proportion to the claim being sought.
2. The timescales involved.
3. The impact on business relationships and reputation
51
What is mediation?
1. This is an alternative form of dispute resolution and relies on bringing in an impartial third party to mediate and guide a decision.
2. The mediator tries to encourage a coming together of parties in order to facilitate a decision
52
What is adjudication?
1. Adjudication relies on an independent third party who considers the claims of both parties.
2. A binding decision is made by the adjudicator which can be appealed either through litigation or arbitration.
3. It has the advantage of being time sensitive with a decision being made within 28 days.
53
What is arbitration?
1. Arbitration is generally for more complex matters
2. Higher legal costs
3. Longer process
4. Less opportunity to appeal than adjudication
54
What happens if a party disagrees with the adjudication result?
The party may take the case to arbitration or litigation
55
Which contracts does adjudication apply to?
It applies to all construction contracts entered into after the act commenced within England, Scotland and Wales
56
What if a building contract does not contain provisions for adjudication?
Parties still have the statutory right to adjudication assuming the contract qualifies under the construction act.
57
What enforces the requirement for a building contract to contain provisions for adjudication?
The Housing grants, Construction and Regeneration Act 1996 (Construction Act).
58
What happens if a party disagrees with the arbitration result?
The party may appeal, but only on limited grounds such as reference to:
1. A point of law
2. Serious procedural irregularity
3. Or challenge the tribunals'
jurisdiction to decide the case
59
What could indicate the success of a negotiation on a final account?
Both parties are satisfied with the outcome and feel that a fair compromise was reached.
60
What is the Data Protection Act 2018?
It is the UK legislation for the implementation of the EU’s GDPR regulations.
61
What are the key Principles of the Data Protection Act 2018?
1. Data should be used fairly, lawfully and transparently.
2. Used in a way that is adequate, and limited to its intended purpose.
3. Is retained for no longer than is necessary.
62
How long would you keep data?
Data should only be kept for how long the data is required. For example….
1. Project information I would store for how long the information may be required, and therefore would depend on the liability timeframe from signing underhand or as a deed.
2. For external CV’s these should be deleted as the recruitment process is over.
63
What are a person’s rights under the Data Protection Act?
There are 8 rights:
1. The right to be informed.
2. access.
3. rectification.
4. to erasure.
5. to restrict processing.
6. to data portability.
7. to object.
8. Rights of automated decision
making and profiling.
64
Who are the key persons outlined within GDPR?
1. Controllers: determines the purpose and means of processing data
2. Processor: processes data on behalf of the controller
3. Data Protection Officer: ensures compliance with data laws
65
How do you ensure you are following the data protection act?
1. They should only retain data they need to perform their day-to-day operations.
2. hold the data securely.
3. keep the information up to date and delete information they no longer need.
66
What does BCIS stand for?
Building Cost Information Service
67
What is SPONS?
SPONS is a price estimating book for material/labour/plant costs.
68
What is workplace diversity?
Diversity in the workplace relates to the acceptance and inclusion of employees from all backgrounds.
69
What are some advantages of a diverse team?
1. Creativity
2. New prospectives
3. Improved cultural awareness
70
What legislation or regulations relate to inclusive environments?
The main legislation within the UK that applies to Equality, Diversity and Inclusion are the Equality Act 2010 and The Human Rights Act 1998
71
What does the Human Right Act 1998 set out?
Implements the European Convention on Human Rights into UK law, protecting everyone in the UK from human rights abuses.
It sets out a range of fundamental rights, including the right to life, liberty, freedom from torture, and the right to a fair trial.
72
What does the Equality Act 2010 set out?
Protects individuals from discrimination based on their membership in a protected group,
which includes:
age/disability/race/religion etc
73
You note part M of the building regulations can you name some other key areas of building regulations?
Part A: Structure
Part B: Fire safety
Part C: Site preparation
Part D: Toxic substances
Part E: Resistance to the passage of sound
Part L: Conservation of fuel and power
74
Give an example of a reasonable adjustment to a building, made for inclusion purposes
Ramps and automatic doors
75
Please explain your understanding of the term sustainability?
To meet the needs of the present without compromising the ability of future generations to meet their own needs.
76
What are the key principles of sustainability?
1. Social
2. Economical
3. Environmental
77
Can you name some features of a passive building design?
1. Building orientation
2. Building layout
3. Design features such as overhangs
78
What does BREEAM stand for?
Building Research Establishment Environmental Assessment Method
79
How is BREEAM Assessed?
BREEAM is used to evaluate and rate the environmental performance of a building across various categories, including:
energy use
water consumption
materials
and waste management.
80
What are life-cycle costs?
An economic analysis that assesses the total cost of ownership of a building, construction material, or system over its entire lifecycle, from design and construction to operation, maintenance, and disposal.
81
What is a benefit of life-cycle costing?
It can help to identify more sustainable & efficient systems which can lead to reduced running costs
82
What information do you require to undertake a life-cycle costing?
1. Capital costs
2. Maintenance costs
3. Operational costs
4. Disposal Costs
5. Replacement Costs
May include income e.g. solar panels
83
What are the most common environmental issues experienced on construction sites?
1. Air and Noise Pollution.
2. Risk of land contamination.
3. Damage to wild habitats.
84
What are some of the client's responsibilities under CDM?
Make suitable arrangements
Allocate sufficient time and resources
Appoint a principal designer on projects with more than one contractor
Appoint a principal contractor on projects with more than one contractor
notify CDM
85
What are the key pieces of legislation that affect sustainability in construction?
1. Building act
2. Clean air act
3. Climate change act
86
Are their any other rolling requirements for RICS members other than CPD?
Yes, members are required to undertake ethics training & test every 3 years.
87
If a client tried to make a £5k cash payment what would you do?
I would be uncomfortable accepting a cash payment, as there is no paper trail and runs a higher risk of the money being laundered, however, I can accept cash payments of up to 10k euros.
88
Do you know what Lionheart is?
It is a RICS charity focused on the wellbeing of (past & present) RICS members & their families.
89
What is run-off cover?
How much and how long should cover last?
Run-off cover is insurance that provides protection against claims made against a business after it has ceased trading or been sold.
Minimum cover should be £1m.
The duration of cover depends on contract liabilities (Deed or underhand).
RICS minimum cover is 6 years, but it recommends 15 years.
90
What sort of data does the Data Protection Act cover?
Personal data
91
When is a project notifiable?
1. Longer than 30 working days and involves more than 20 workers simultaneously .
2. Exceeds 500 person-days of construction work
92
What is the difference between a hazard and a risk?
A hazard is anything with the potential to cause harm,
while a risk is the likelihood and severity of harm occurring.
93
What are the differences between statutory accounts and management accounts
Statutory accounts are mandatory annual financial reports which need to be submitted.
Whereas Management accounts are internal reports used by business owners for decision-making.
94
What are the time frames involved with adjudication?
Once you are notified of adjudication you have 7 days to appoint an adjudicator.
The adjudicator then has 28 days to make a decision, but can be extended to 42 if both parties agree.
95
How do you appoint an adjudicator?
The contract can name the adjudicator, if not, it specifies which body is to appoint the adjudicator, such as the RICS governing body.
96
What is run-off cover?
1. Run-off cover is an insurance that protects a business or individual after they have ceased trading or retired.
2. Minimum cover = 6 years
3. RICS recommends 15 to align with the statutes of limitation
97
If a client offered you £5k in cash to pay for fee's would you accept it?
I would politely decline and note that this was against my company's policy.
The reason I would do this is because there is no paper trail and the money has a higher risk of being laundered.
That being said I'm aware that it's possible to accept up to 10,000 euros.
98
What does RICS stand for?
Royal institution of chartered surveyors
99
Who is the president of RICS?
Nick Maclean on a temporary basis after Justin Sullivan whilst under investigation.
100
What are RICS priorities/goals for the year?
1. Strengthening the Home Buying and Selling Process.
2. Reducing Delays through Mediation.
3. Bridging the skills gap
4. Sustainability and Net Zero: RICS is pushing for mandatory
measurement and retrofit initiatives.
101
What are some typical exclusions to a fee proposal?
1. VAT
2. Travel outside the M25
3. Printing A3
102
What would the resource fee you use in fee proposals be made up of?
Wages, benefits, office costs, equipment, OH&P, non-fee earning staff etc
103
What is a QS listed as under CDM?
A QS is listed as a designer.
104
When is a project notifiable?
An F10 should be issued by the client under the following guidelines:
1. If construction will be on-going for more than 30-days and have more than 20 operatives.
2. Or if there are over 500 operative hours.
105
What does an F10 include?
Used for notifying the Health and Safety Executive about construction projects, includes details like the
1. site address & project description
2. contact information for key personnel (client, principal designer, principal contractor)
3. project timelines
4. estimated workforce size, and a declaration by the client acknowledging their CDM duties.
106
What is the difference between arbitration & litigation?
Litigation is a formal court process with public proceedings, a judge presiding, and the possibility of appeals.
Arbitration, on the other hand, is a more flexible, often private, method where parties agree to an independent arbitrator's decision, and not subject to the same appeals as litigation.
107
What is the penalty for breaching the data protection act?
For breaching the Data Protection Act, a fine of up to £17.5 million or 4% of the organisation's annual worldwide turnover, whichever is higher, can be imposed.
108
How is BREEAM rated?
Provides a rating on a percentage basis:
* Unclassified
* Pass – 30% score
* Good – 45%
* Very good – 55%
* Excellent - 70%
* Outstanding – 85%
