Client Care

Question 1

What would you typically include within a fee proposal to a client?

Answer 1

• Instruction Background
• Scope of Service
• Fee
• Inspection and Reporting Timescale
• Specialist Consultants
• Access
• Limitations

Question 2

How would you establish a fee amount for a service?

Answer 2

If I was calculating a fixed fee amount I would take my hourly rate and times it against the predicted amount of time I would put to the job. I would also include a director’s time charge as part of AY’s quality assurance procedure.

Question 3

What different types of fee structure are there?

Answer 3

• Hourly Charge
• Percentage Fee
• Incentive Fee

Question 4

What is an ‘Hourly Charge’ fee structure?

Answer 4

For the jobs where the scope of the works required is clear and an assessment can be gained as to how long it will take to, for example, inspect and report, fees are often charged on an hourly basis.

Question 5

What is a ‘Percentage Fee’ fee structure?

Answer 5

Most common way of charging in respect of building contracts, project management and similar professional services. It would be usual for most practices to establish a minimum fee basis.

Question 6

What is an ‘Incentive Fee’ fee structure?

Answer 6

A fee structure that includes a basic fee plus an additional payment if the service provider achieves or exceeds specific performance criteria agreed with the client.

Question 7

What is a conflict of interest?

Answer 7

A situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.

Question 8

What are the three types of ‘conflict of interest’?

Answer 8

• Party Conflict
• Own Interest Conflict
• Confidential Information Conflict

Question 9

What is a party conflict?

Answer 9

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

Question 10

What is an own interest conflict?

Answer 10

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

Question 11

What is a confidential information conflict?

Answer 11

A confidential information conflict arises when a professional holds confidential information about one client that could be relevant to another client, and using or even possessing that information would place them in breach of confidentiality or professional duty.

Question 12

What is an information barrier?

Answer 12

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

Question 13

What is informed consent?

Answer 13

Informed consent is when a client (or party) freely agrees to a proposed action after being fully informed of all relevant facts, risks, potential conflicts of interest, and alternative options.