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.

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.