Client care

Question 1

Why does your firm have Professional Indemnity insurance?

Answer 1

It is one of the Rules of Conduct for Firms, 2007 (as amended 2017)
To protect surveyors, clients and third parties against negligence claims where there is a duty of care breached and a claim for damages arises

Question 2

How much professional indemnity insurance does your firm require (3 bands)?

Answer 2

Firm’s turnover in the preceding year determines the minimum level of indemnity required for every claim:
£100,000 or less => £250,000
£101,000 - £200,000 => £500,000
£201,000 and above => £1,000,000

Question 3

What is the maximum level of uninsured excess (2 bands)?

Answer 3

Liability of up to £500,000 => greater of 2.5% of the sum insured or £10,000
Liability of over £500,000 => 2.5% of the sum insured

Question 4

When would your insurer need to know if a complaint was made against your firm?

Answer 4

Depends on your agreement with the insurer but usually when the complaints handling procedure is triggered as this could lead to a claim for negligence

Question 5

What procedures are required to be in place if a complaint has been made (RICS guidance, timescales, firm services)?

Answer 5

• RICS has issued a Guidance Note on Complaints Handling, 2016
• Complaint should be acknowledged within 7 days and investigated within 28 days
• Firms must include a RICS approved ADR method e.g. Centre for Dispute Resolution (CEDR) or the RICS Dispute Resolution Service

Question 6

What is the guidance set out in RICS Complaints Handling, 2016 (procedure, PII, CHP issue, complaints, inclusion)?

Answer 6

• Firm’s written complaint handing procedure (CHP) must be approved by RICS
• Notify your PII insurer as soon as possible if there is a complaint as this could lead to a claim for negligence
• Details of the CHP should be issued to a client at the same time as Terms of Business
• Complaints log must be maintained to show the details, progress and outcome of any complaints
• Firms must include an RICS approved Alternative Dispute Resolution (ADR) mechanism in the Complaints Handling Procedure

Question 7

When you first receive a complaint, how should it be dealt with (initially, complaint format, issue, appointment details)?

Answer 7

Aim to deal with the complaint in house initially
Ask for the complaint to be made in writing
Issue details of the CHP to the complainant
Share the details of the Complaints Handling Officer with the complainant, as the person who should be contacted in the first instance

Question 8

If a complainant is unhappy with how the complaint has been dealt with in house, what should be done (choice, provision)?

Answer 8

• Use an independent redress scheme chosen by the firm
• Name of the redress mechanism must be provided to the complainant e.g. Centre for Effective Dispute Resolution (CEDR), Property Redress Scheme and RICS Dispute Resolution Service

Question 9

When will the RICS become involved with a complaint?

Answer 9

If a member fails to respond to the complainant or prevents the party gaining access to an independent redress mechanism

Question 10

What should a sole practitioner do differently with regards to the their complaints handling procedure?

Answer 10

Must nominate a surveyor in another firm to act as their complaints handling officer

Question 11

What are the principles of client care?

Answer 11

Ensuing communication is regular, open and transparent

Question 12

What is Client Care?

Answer 12

The process of identifying all client types and the behaviours appropriate to establishing good relationships, along with the systems of procedures for managing the client care process, all within the public interest.

Question 13

How do you act upon feedback from a Client?

Answer 13

• Feedback should be formally recorded in some way, i.e. Client Satisfaction Questionnaires.
• If feedback is negative, it should be verified and necessary action taken.
• If a formal approach is required, this should follow the CHP.

Question 14

What other insurance (other than PI) would you need to have if you had your own premises?

Answer 14

• Employers Liability Insurance.

* Third party Liability Insurance.

Question 15

Can you give me more detail on what Employers Liability Insurance covers?

Answer 15

• Covers employers for compensation claims against you by employers for accidents or illness that occur during their work.

Question 16

Can you tell me more detail on what Third Party Liability Insurance covers?

Answer 16

• Covers you against actions of a third party.

Question 17

What does good client care require (understand, approach, communication, policy, procedure, insurance)?

Answer 17

• A clear understanding of the client’s objectives and aims.
• A professional approach.
• Clear, concise communication.
• A quality assurance policy. (a statement of the company’s desired level of quality for a service or product.)
• Complaints handling procedure.
• Professional Indemnity Insurance.

Question 18

How do you establish a Client’s objectives (2 steps)?

Answer 18

• Have a pre-start meeting with them.

* If there is still ambiguity then have further meetings/correspondence to clarify.

Question 19

What do you clarify with regards to a clients objectives (5)?

Answer 19

• Time
• Cost
• Quality
• Desired final product.
• Clients aspirations and goals for the project.