Tell me what you understand about conflicts of interest?
Where someone has competing personal or professional interests making it difficult to fulfil their duties impartially
How could conflict of interest be managed internally if two separate departments were working for the same client?
Exclusivity of staff
Separate communication lines to the client
Separate locations
Signing up to NDAs
Monitor potential conflict
How would you proceed when there is a conflict of interest
Check the client’s understanding around COI
Make them aware of potential reduced impartiality
Seek a letter from client to continue
Talk through working procedures to manage COI
Agree formally in writing
What are the min levels of indemnity
Depending on the firms turnover
If turnover is £100k or less min level is £250k
£100k - 200k it is £500k
£200k + it is £1m
What are the maximum levels of uninsured excess
Depending on the firms turnover in the preceeding year
If £10m or less, max uninsured excess is the greater of 2.5% uninsured or £10k
If turnover £10m+ there is no set limit
What type of insurances do chartered surveyors need in place
Professional Indemnity
Building and contents cover
Employers liability cover
Run off cover
What are the new rules of conduct
1) member and firms must be honest, act with integrity and comply with professional obligations, including obligations to the RICS
2) must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
3) must provide good quality and diligent service
4) must treat others with respect and encourage diversity and inclusion
5) must act in public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
Why did the previous rules of conduct change
The previous rules had been in place since 2007
Rules voted to be replaced by majority (public and professionals)
Provided a single document to enable greater clarity for RICS members and firms
Greater focus on clearer example behaviours, understanding evolving technology and tackling climate change
What are the main principles of the bribery act?
4 offences:
Making a bribe, receiving a bribe, bribery of a foreign public official and failure to prevent
Applies to uk entities
Includes associated persons
The 6 principles of bribery prevention
What are the 6 principles of bribery prevention?
1 - proportionate procedures
2 - top level commitment
3 - risk assessment
4 - due diligence
5 - communication
6 - monitoring & review
Under the bribery act, under what circumstances are facilitation payments permitted
Only circumstance is when you are under duress
Such as when there is a real and present danger to life limb or liberty
If you were to win a prize at a main contractor event, how would you act in the scenario?
I would be uncomfortable accepting the prize as it could be interpreted as a bribe.
If I am working with the main contractor at the time accepting the prize would be highly inappropriate as it could be seen as having an affect on my business conduct.
I would decline the prize and suggest it is made as a donation to a charity of their choice.
If you’re bidding for a project and the client advises you if you were to reduce your tender by £3k you would be in first place how would you advise the client?
I would advise the client this is unfair competition, not treating others with respect and not acting with integrity if the offer is accepted.
This can also be unsustainable business practice and devaluing the profession.
You would need to reduce the scope to achieve the same margin which means you can’t provide the high standard of service.
Could be interpreted as a bribe.
A client takes you out for lunch after a meeting where they continue to discuss business. The bill comes to £200 what should you do now?
The lunch had a legitimate business purpose so it’s fine to accept.
But the client should have considered how the size of the bill could be seen.
Given the size of the bill it must be declared on the hospitality register and I would make my line manager immediately aware.
Tell me about Merritt v Babb case law?
Court case in 2001
Babb carried out a valuation as an employee of a company for a house purchased by Merrett.
Valuation later found negligent.
Original company no longer existed.
Court ruled Merrett could sue individual for losses.
Big shock to the industry.
What is the significance of Merrett v Babb 2001?
Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers.
Highlights importance of run off cover.
Ensure run off cover is in place after they leave their firm’s employment or a firm ceases trading.
How long should run off cover be in place?
Depend on the type of contracts the professional has been involved with.
6 years if contracts executed underhand.
12 years if executed as a deed.
If a client was going to pay you in advance for your services how would you ensure this is dealt with?
- Set up a separate account with the client’s name
- Provide the client with a statement of the account
- Inform and agree draw downs
- Prior to monies being drawn down inform the client how much and what the associated fees are made up of, send updated statement of the account
- Once complete, share a final statement, ensure everything is complete and transparent
What is the difference between ethics and integrity?
- Ethics are moral values that affect a person’s behaviour or the conducting of an activity
- Integrity is the quality of being honest and having strong moral principles
How can practices encourage ethical environments with high standards of integrity?
- Set up confidential whistleblowing procedures
- Provide CPD on ethical matters
- Become RICS accredited
- Establish monitoring of ethical performance among staff
What is the RICS decision tree?
Set of 6 questions that encourage clear reasoning and adherence to legal and professional standards before making a decision
What are the 6 questions for the decision outcome tree?
- Do you have sufficient facts on the issue?
- Is it legal?
- Is it in line with the RICS rules of conduct?
- Have you consulted the appropriate people to make an informed decision?
- Do you have clear reasoning in reaching your decision?
- Would you be happy if this decision went public?
In the case of a breach of the rules of conduct what is the procedure?
- Not every shortcoming will necessarily give rise to procedures
- Formal investigation by the head of regulation at the RICS is the first step
- RICS can request information/ visit and inspect to investigate compliance
- Member must cooperate fully with all enquiries
How can a disciplinary proceeding be triggered?
- Someone complaining to the RICS
- Allegation by client or third party
- Information received or established by RICS
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Construction Tech General46
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Quantification & Costing38
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Design Economics29
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Ethics38
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Contract Practice29
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Procurement & Tendering21
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Project Financial Control20
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Accounting30
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Business Planning12
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Client Care17
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'Hardest' Ethics questions11
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