Current Affairs

Question 1

What has changed in the industry since Grenfell?

Answer 1

• The selection of materials for the external envelope (cladding, insulation, balcony decking, balustrading)
• Non-combustible material only for buildings under 11m now.
• Sprinklers for all buildings above 11m
• Hackitt review

Question 2

What is the main element of the Hackitt review?

Answer 2

• Introduces responsible person role to act as a building manager for fire safety (additional prelims)
• Better change control
• Material and product testing improvement
• Simpler regulations
• Clearer rights and obligations for residents

Question 3

Why did Carillion go into liquidation?

Answer 3

• Took unacceptable risk on PFI projects
• Very large debt pile which was unmanageable
• Very high liabilities (FM projects)

Question 4

What changes should we learn from the Carillion collapse?

Answer 4

• Better risk aversion and not take on projects which cannot be afforded.

Question 5

How will brexit affect the industry?

Answer 5

• Less EU workers (1/3 of London construction workers)
• Points based systems particularly for commonwealth countries
• Training initiatives for UK workers
• Utilize MMC which should bring down number of labour requirements
• Supply of materials may be affected by delays, tariffs and taxes
• Potential for less foreign investment

Question 6

What is the RICS doing about Covid19?

Answer 6

• Section on the RICS website
• Assessments by skype
• Free training and CPD
• Advice for professions to return to work
• Providing research on Covid-19 (for eg. rethinking city centre living and reopening for businesses)

Question 7

How has Covid 19 affected the construction industry?

Answer 7

• Before government action, delays due to sickness or self-isolation
• Only essential utilities connections
• Not rendering projects impossible to complete.
• Slowing projects down,causing delay and disruption
• Supply chains disrupted - many suppliers stopped manufacturing completely
• Many overseas supplies have stopped
• Many projects have even stopped, usually with the intention to resume work at a later date.
• Redundancies are being made
• Clients pulling out of work
• Contractors starting to put clarifications regarding corona in their tenders
• Many staff been furloughed.

Question 8

What are the contractual provisions under JCT regarding Covid-19?

Answer 8

• Generally a pragmatic approach may be appropriate however this should not be used as an opportunity to cover up other programming problems.
• Under JCT, the contractor must use their best endeavors to prevent delay, which is a requirement of the contract when seeking EOT. They must also give notice as soon as it becomes apparent that the progress of the works is delayed.
• There is potential for EOT, suspension of the works and termination of contractor’s employment
• Where a delay to the works has been caused by compliance with the Government’s intervention, a specific Relevant Event applies.
• Force majeure is normally held to mean all circumstances beyond the will of man, and which it is not in his power to control.
• Delay by a Statutory Undertaker carrying out statutory obligations is a Relevant Event
• Suspension of works where it is impracticable to continue due to lock-down. If this suspension is longer than stated in contract this can lead to either party terminating.

Question 9

What are the changes to building regs?

Answer 9

With Government currently reviewing the consultation response from industry, the amended Part L and Part F 2020 regulations are likely be published mid-2020, ready to become legally enforceable before the end of the year.

Question 10

What was the impact of Carillion going into liquidation on the indsutry?

Answer 10

• Contractors more risk adverse
• PFI contracts have ended in the old format
• Interim valuations
• Unemployment
• Many supply chain into liquidation

Question 11

What is the UKs target to achieve carbon zero?

Answer 11

2050. The UK already passed a framework law for cutting emissions in 2008, so setting a net zero target is as simple as replacing 80% with 100%. Parliament passed the amendment on 27 June 2019. Meeting the goal is tougher and the independent Committee on Climate Change (CCC) has emphasized more policies will be needed across sectors to give it life.

Question 12

What is Arc fault detection?

Answer 12

Broken wires, loose connections, crushed cables can all cause hidden arc faults in electrical circuits, which if left undetected, can erupt into flames in just seconds. AFDDs isolate the faulty circuit the moment an arc fault occurs.
An AFDD is a circuit breaker that automatically cuts the electricity supply when it detects an arc fault in a circuit. By immediately cutting off the electricity supply, AFDDs prevent arc faults from reaching temperatures where fires can break out.

Question 13

What does it mention in the latest Modus?

Answer 13

• President’s column regarding Timothy Neal’s view on Covid-19 and the new digital transformation on built environment paper to be produced.
• The last modus to be in paper format.

Question 14

What changes have occured since 2020 regarding PII?

Answer 14

Challenges in the PII market began at the end of 2018 and have worsened due to COVID-19. There are three
key reasons for this decline:
• A restriction in availability as a result of a 2018 Lloyds of London review, which highlighted the underpricing of PII meant that two thirds of syndicates were underwriting at a loss;
• Economic uncertainty initially around Brexit, which is now exacerbated by COVID-19; and,
• Ongoing insurer concern around fire safety and cladding.

Question 15

What has the RICS changed regarding PII?

Answer 15

To this end, we undertook a consultation earlier this year to:
• change our minimum insurance requirements (the terms in which insurers sign up), to provide greater
flexibility on the terms which insurers can write PII for RICS regulated firms amend our Assigned Risk Pool to be more agile and accommodating for firms that could not find affordable PII in the open market.

Question 16

How has Covid affected your role as a QS?

Answer 16

• Offices closed - using Microsoft teams and skype to communicate
• Sites closed - nil valuations
• Sites closed - force majeure claims ( no tried and tested case in courts yet)
• RICS article about accelerating change with regards to BIM usage, offsite manufacturing (to reduce issues with workmanship, social distancing, health and safety and wastage).

Question 17

How will offices reopen?

Answer 17

There are 3 articles on the RICS website about the reopening of offices, this will need to be done in a phased manner with those who are more at risk to go back to the office last.

Question 18

What is the current update regarding construction projects on Cvoid19?

Answer 18

• Currently observing EOT being granted without money on Government projects. I have also had to do same on one Resi project.
• Not tried and tested in court yet so no hard and fast answer, can’t advise on legal implications yet
• Labour shortage
• Materials shortage – deliveries from outside UK have stopped
• Manufacturing stopped – materials/ products created in UK have stopped currently
• Both clients and contractors would want to include clauses for such pandemics going forward – not sure what these would be yet

Question 19

What do you think about the inequality of BAME in the construction industry?

Answer 19

The article on the RICS website highlights the inequality in terms of the lack of RICS qualified surveyors who are black which is at 1.2%, when the population of black people in the UK is 3.3%.

Question 20

Does Covid-19 count as force majeure?

Answer 20

• RICS article on this issue.
• Most JCT contracts include for force majeure and NEC has an equivalent
• There is no guaranteed answer as to whether COVID-19 is a force majeure event for any given contract.
• Contractor must give notice of the works being suspended, a further notice would need to be given if works are slow when re-starting
• All contractors must use their best endeavors to reduce delays
• Good record keeping should be kept to allow for less working and staff being offsite.

Question 21

How do you think procurement routes may change due to Covid-19?

Answer 21

• Contract amendments to include risk transfer due to covid 19
• Contractors may be more risk adverse and opt for 2 stage routes or construction management
• As contractors are struggling, more simple works may be bid for a low cost due to contractors becoming desperate.

Question 22

What has the cabinet office produced in relation to construction contracts and Covid-19?

Answer 22

The cabinet office published non-statutory guidance on Covid 19 to encourage all parties to act responsibly and fairly in the national interest in performing and enforcing their contracts to support the covid 19 pandemic and to protect jobs and the economy.

Question 23

What articles are covered in the latest June modus?

Answer 23

• Last modus to be published on paper
• Costing of large infrastructure projects to become more accurate
• Council housing revival (borrowing cap for councils removed,