RICS Hot Topics

Question 1

What is IPMS?

Answer 1

International Property Measurement Standards
IPMS All Buildings was introduced in Jan 2023 and now supersedes all previous standards

Question 2

Are you aware of the changes the RICS recently made around its use of Membership Cards?

Answer 2

Cards used to be issued every year, now they receive a digital card

Question 3

What was the reason for IPMS All Buildings?

Answer 3

A shorter and more concise format
Organised into 4 volumes for different groups

Question 4

What are different volumes of the IPMS?

Answer 4

IPMS 1 – External Measurements for Whole or Part of a Building.
IPMS 2 – Internal Measurements for Whole or Part of a Building.
IPMS 3.1 – External Measurements for Exclusive Occupation.
IPMS 3.2 – Internal Measurements for Exclusive Occupation.
IPMS 4.1 – Internal Measurements for Selected Areas including Internal Walls and Columns.
IPMS 4.2 - Internal Measurements for Selected Areas excluding Internal Walls and Columns.

Question 5

Please explain your understanding of the key definitions set out within the IPMS?

Answer 5

 Internal Dominant Face – The inside surface area comprising more than 50% of the lowest
2.75m measurement vertically from the structural floor surface, or to the ceiling if lower, for each
wall section.
 Component – One of the main elements into which the floor area of a building can be allocated.
 Component Area – The floor area attributed to one of the components.
 Standard Facilities – Shared areas in a building that typically do not change over time, such as
circulation areas, stairs, escalators, lifts/ elevators, toilets, cleaners cupboards, plant rooms, fire
refuge areas and maintenance rooms.

Question 6

What is your view of the IPMS Updates?

Answer 6

 I think the IPMS when established globally will provide an extremely useful set of measurement
standards that will hopefully negate ambiguity across international markets.
 In reality this is proving very difficult to achieve due to the existing preferences in place in each
market place.
 For example the UK has been slow to adopt the IPMS due to a familiarity and preference of the
existing standards.
 I am also awaiting the updated RICS Professional Statement for Property Measurement to find
out how the Institution and experts within the profession view the updated IPMS.

Question 7

How has Brexit effected the Construction Industry?

Answer 7

1. Movement of people
2. Movement of materials
3. Material cost increases

Question 8

Are you aware of some of the aims highlighted within the RICS Business Plan for 2024?

Answer 8

1. Incorporating the Levitt Report Recommendation
2. Immediate Financial Priorities
3. Corporate objectives

Question 9

What is COP26?

Answer 9

Most recent climate change conference. Two-week meeting was seen as a critical moment for commitments for rich countries to raise $100billion for vulnerable countries and gap to stay below 1.5C increase was large

Question 10

What was agreed at COP 26?

Answer 10

1. Reduce use of coal
2. Commitment to ‘phase down’ rather than ‘phase out’ coal
3. Pledge to help developing countries to switch to clean energy
4. trillion dollar yearly fund from 2025

Question 11

Can you explain your understanding of COP27?

Answer 11

COP27 took place in Sharm El Sheik, and highlight countries most affected by extreme weather
Rich countries pay 100bn per year to poor countries

Question 12

What is your understanding of green mortgages?

Answer 12

• A mortgage that rewards someone for buying or owning an energy efficient home by offering favourable terms
• Result in lower interest rates or receiving cashback

Question 13

What is the Levitt Report?

Answer 13

• Commissioned by RICS
• Prior to the audit RICS had to extend its overdraft by £3million due to poor cashflow forecasting
• Treasury management offered a ‘no assurance verdict’
• RICS Governing Council need to have more oversight
• RICS Governing Council must be briefed by the management board rather than one CEO
• RICS Governing Council are to oversee executive management bonuses

Question 14

What is meant by the term embodied carbon?

Answer 14

• Embodied carbon refers to carbon emissions generate as a result of energy consumption and chemical processes during the life cycle of products and buildings.

Question 15

What is meant by the term inclusive design?

Answer 15

Inclusive design aims to ensure that everyone who uses a building feels dignified.

Question 16

Please explain your understanding of domestic reverse charge?

Answer 16

DRC was introduced in October 2020.
Main contractors will pay VAT to HMRC directly and not to their supply chain.

Question 17

What effect do you think the DRC has had on the construction industry?

Answer 17

1. Reduction in cashflow for suppliers
2. Long term prices may increase as supplier will seek short term borrowing arrangements which will cost more.

Question 18

Please explain your understanding of the RICS Black Book Document?

Answer 18

RICS Black Book provides best practice guidance for Quantity Surveying
RICS is currently undertaking a review to update the Black Book
Several out of date publications have been removed.

Question 19

What affect has the conflict in Ukraine had on UK Property & Construction Industry?

Answer 19

1. Significant energy price increases
2. Cost increases for steel, bricks, plastics, ceramics
3. Intensified an already volatile market
4. Delay and disruptions to material deliveries

Question 20

Can you explain your understanding of the guidelines around the RICS Logo?

Answer 20

1. Font and colour must not be adjusted
2. Minimum clearance around the logo
3. RICS members can use the logo

Question 21

Please explain the Bichard Review

Answer 21

Commissioned in 2021 following the Levitt Report
36 recommendations

Question 22

What are the pros of hybrid working?

Answer 22

1. Improved work life balance
2. Greater ability to focus
3. Saved commuting time and cost
4. Savings on office space
5. Higher levels of employee satisfaction

Question 23

What are the disadvantages of hybrid working?

Answer 23

1. Loss of social interaction
2. Reduced collaboration
3. Productivity can be dependant on quality of workspace
4. Less recognition
5. Risk of burnout

Question 24

Please explain your understanding of the RICS Inclusive Employer Quality Mark?

Answer 24

• Scheme launched by RICS
• Designed to improve diversity and inclusion
• Employers must pledge against the following 6 principles
  1. Leadership and Vision
  2. Recruitment
  3. Staff Development
  4. Staff Retention
  5. Staff Engagement
  6. Continuous improvement
• Firms must assess their performance bi-yearly