Professional Documents
Culture Documents
Isu, Rics - The Construction Journal
Isu, Rics - The Construction Journal
8 14 23
Going global Drone take-off Sentence construction
ICMS 2 enables life-cycle costing How regulation and public Why thinking about language
for global cost management confidence can unlock potential can help diversify the profession
rics.org/journals
Construction
10
Making leaders
of managers
Why the focus is on behavioural capabilities
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Construction
Contents
Editor: Steph Fairbairn
T: +44 (0)20 7334 3726 E: sfairbairn@rics.org
rics.org/journals 3
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Construction
Briefing
rics.org/journals 5
Construction doesn’t Minimise risk and maximise
profits with real-time project
internationally’
and opportunities this may bring for
construction professionals. We have also
encouraged the use of ICMS as a data
standard in 5D BIM by mapping ICMS to
various, more detailed, national standards
Alan Muse and design classifications. Advances in the
RICS interoperability of data through artificial
intelligence offer the chance to improve
data manipulation and cost prediction
once international standards are in place.
Infrastructure remains a priority. For many
What a year! Notwithstanding global and social value in infrastructure will discuss the economies, attracting private-sector funding
national political change, RICS has seen core best practice measurement frameworks is still key to meeting infrastructure needs
a notable shift in the way it interfaces with which are available. and targets. Our upcoming insight paper on
the construction sector, and an exciting Similarly, we are aiming to gather insights benchmarking in infrastructure will describe
vision for construction is emerging. on collaboration to guide thought leadership how using ‘should cost’ data allows a client
We now have a truly global structure in on interdisciplinary work processes: an to establish a robust cost envelope in the
place for both gathering intelligence and area that will be of particular interest to early project stages, so subsequent design
growing the project and cost management project managers. Although much has been and methodology developments take place
professions on an international scale. As developed regarding team coordination in within those set parameters.
the construction industry evolves, we need construction, effective interdisciplinary Finally, we have begun to establish a set
to address the need for new skills, greater working requires a different approach. of global construction standards for our
specialisation and, at the same time, closer We are also aiming to increase global profession. This will include principles
integration between specialisms. member engagement through the in project and cost management relating
We have held construction leaders’ development of new digital forums. This to buildings and infrastructure and the
forums centred around the themes of will enable conversations between global implications of artificial intelligence
collaboration, technology, financing and RICS professionals and other stakeholders and new technology, such as BIM and
procurement. In the UK, for example, we are in construction in specific subject areas. blockchain. Together with ICMS and our
working with the Construction Leadership Numerous important standards projects other standards, this will establish a global,
Council to develop a value-based approach were either completed or initiated this regulatable framework for project and cost
to construction procurement under the year. In response to the adoption success management – an important first for RICS.
workstream Procure for Value. This will lead of International Construction Measurement As the year ends, it’s clear that the future
to new RICS guidance in this area, which Standards (ICMS), the ICMS Coalition of construction at RICS is exciting and
will specifically lead to the development (ICMSC) extended the scope of the standard getting involved has never been easier.
of a digital toolkit for business case to include life cycle costs. ICMS second
decision-making. Measuring social value is edition was published in September and Alan Muse FRICS is global director of built
an area of increasing debate in construction presents a platform for further developing environment standards at RICS
and our forthcoming RICS insight paper on cost management on a global basis (see p.8). amuse@rics.org
rics.org/journals 7
Construction Standards
Going global
The second edition of the International Construction
Measurement Standards will have a significant impact
on life-cycle cost analysis for constructed assets
Anil Sawhney
The International Construction defining, measuring, recording, analysing to be used for buildings, civil engineering
Measurement Standards second edition and presenting entire construction costs and infrastructure projects of all sizes
(ICMS 2) launched in September and at a project, regional, state, national and and, where applicable, with building
supersedes ICMS 1st edition (ICMS 1). international level. information models.
ICMS 1 was launched in July 2017 and ICMS 1 were developed to harmonise For RICS, ICMS 1 was the first step
published by the ICMS Coalition (ICMSC) global cost reporting across markets, in creating a seamless, global, pyramidal
– a global group of 47 professional and regions and subsectors by setting out hierarchy of construction cost classification
not-for-profit organisations. The group how to classify, group and report and offered very high-level global cost
works together to develop and implement construction project costs in a structured benchmarking that connected to granular,
international standards for classifying, and logical form. They were designed local cost measurement.
Figure 1. International Cost Measurement Standards cost classifications, incorporating life-cycle costs
A C R O M E
Acquisition costs Construction Renewal costs Operation costs Maintenance End-of-life costs
(AC) costs (CC) (RC) (OC) costs (MC) (EC)
Cost groups Cost groups Cost groups Cost groups Cost groups
Associated capital
costs
ICMS 1
rics.org/journals 9
Construction Leadership
From managers
to leaders
Recent research identifies the key skills required of project
leaders and the focus is on behavioural capabilities, rather
than technical ones
There has been considerable focus over for businesses and government. The pool compensating for this by developing
the years on developing the tools and of people with the necessary experience project leadership talent in house, as well
techniques for planning, measuring and and behaviours needed to run major, as recruiting new talent from outside.
controlling project delivery. In our view, complex, multifaceted and interconnected Our research report Project leadership:
this emphasis on the mechanics of project projects successfully – many of which are skills, behaviours, knowledge and values
management has been over emphasised at construction and infrastructure – isn’t helps to refine the understanding of
the expense of focusing on the leadership of expanding to meet demand. project leadership in terms of capability
people and their performance. As projects The growth of the knowledge economy, building for project professionals and
become increasingly complex, a traditional demographic changes and the increasingly their organisations (see box below left).
view of project management is no longer rapid turnover of experienced and senior
enough and a rebalancing of technical and project professionals have all contributed Finding a definition
behavioural capabilities is required. to the pressure on succession planning, The literature review we conducted as part
Project leadership, both client- and selection and recruitment, learning of the research revealed that traditional
supply-side, is becoming a strategic issue and development. Organisations are views of leadership tend to focus on
a formalised role, title or hierarchy or
on centralised command and control.
These views have typically emphasised
About the research the personal heroic model of leadership,
often reflecting the cult of the individual.
We conducted in-depth interviews with 38 individuals across five multi-national However, these views have continued to
organisations – BAE Systems, IQVA, Jacobs, Shell and Siemens – chosen because evolve with newer, less autocratic models
of their reliance on complex projects for the delivery of strategy and performance. of leadership placing increasing emphasis
Interviewees had experience of a variety of roles: from the aspiring leaders delivering on social and ethical behaviour.
smaller projects to the most experienced project leaders, heads of profession and A major difference for professionals
project sponsors responsible for complex projects with budgets of more than £1bn. moving into a leadership role is leaving
The combined project experience of the interviewees exceeded 500 years. behind the day-to-day issues or working
We looked at project leadership from a personal perspective and the experience in the project and taking a more strategic
of the project leader, rather than what the organisation believes project leadership stance, that is, working on the project. This
should look like. In doing so we identified skills, behaviours, knowledge and values involves becoming slightly removed from
that project leaders believe they need in order to deliver major, complex, novel the project to be able to view the bigger
and contentious projects successfully. The challenges of their work are no longer picture. Standing back from the project
focused on the technical: they rely less on the technical tools and techniques detail allows a deeper understanding of the
acquired early in their careers, and more on the improvisation of leadership project that comes from, as one interviewee
skills that have been learned in practice. put it, ‘emotional knowledge’, while having
a comprehensive view of the stakeholders,
rics.org/journals 11
Construction Leadership
rics.org/journals 13
Construction Technology
Peter Kinghan
Since the drone incidents at Gatwick and Drone variation safe in confined areas, those that require
Heathrow Airports in 2018, and the public Drones currently come in a number of controlled use, such as towns and cities,
concerns relating to terrorism, privacy and different types: or when inspecting infrastructure, such
security, the perception of drones has hit ••fixed-wing as buildings or bridges.
rock bottom – as is reported in the PwC ••rotor The typical drone is battery-powered
research paper Building Trust in Drones ••multi-rotor and manoeuvred by propellers. Flights are
(bit.ly/PwCDroneTrust). Concurrently, ••hybrid, akin to a helicopter with wings. limited in range and time by the battery
however, there are numerous predictions The latter three forms have vertical take-off life, payload, line of sight and regulatory
for the growth and value of the industry, and landing (VTOL) capability. In terms of constraints, and a dependence on radio
and the benefits drone use brings to the safety, a six- or eight-motor multi-rotor signal to the controller. Drones now come
economy and society. drone will usually keep flying when one with specifications and features previously
Public buy-in is therefore going to be or possibly even two motors fail; however, only available on high-end and expensive
essential if the industry is to fulfil this a quadcopter, with four motors, will fall vehicles, such as avoidance sensors, gimbals
potential. Usage, if not public image, is to the ground if one of these fails. – a pivoted support that allows the rotation
certainly on the rise: in mid-2014 there Multi-rotor drones can hold their of an object about a single axis – and
were 359 people in the UK permitted position in the air, assuming they have microprocessors, which are used for holding
to operate drones of up to 20kg. As of an on-board global navigation satellite a camera or sensor and stabilisation.
February this year there were around system (GNSS) as most now do. This As a drone’s flying capability and ability
5,000 permitted operators in UK airspace. makes them particularly useful and to carry a heavy payload reliably are key,
rics.org/journals 15
Construction Technology
Exploring the
past, planning
the future
Archaeology not only records the past, but helps project
planning through early risk assessment
rics.org/journals 19
Construction Archaeology
An archaeologist and the local authority visit an excavation in advance of Excavation prior to house building in Derbyshire. Assessment and trial
gravel quarrying. A small Saxon period house has been fully excavated trench evaluation revealed the remains of an Iron Age settlement, probably
as part of the mitigation strategy. The remains were found after the full a large farm. The excavator is removing the topsoil before investigation,
range of desk-based assessment, geophysical survey and trial trenching under archaeological supervision
and any continuing professional development built into the project. Archaeology, in common with any practical discipline, can have
The WSI distinguishes between work conducted onsite and the its complications. The most common issues with archeology relate
post-excavation analysis, and is carried out by skilled specialists to time spent on site, resulting from an inadequate understanding
researching the diverse records and recovered materials from the or agreement of project performance.
excavation. Once the evidence is interpreted and the findings are Unexpected discoveries are also possible, but the risk of discoveries
pieced together in a published report, archaeologists can work with can be quantified at the outset, refined and reduced by adopting the
architects, designers and artists to create displays, public art and staged approach to assessment and evaluation of the site. Contingency
other physical reminders of what previously existed on the site. arrangements can then be put in place, for example, anticipating where
human burials may be found and planning for them.
Professional standards and contracts Risk management is common to archaeological management, but
The WSI is the benchmark against which contract compliance can be it is essential that a competent archaeologist is on board from the
measured. It will include details of compliance with the relevant CIfA beginning. Issues relating to bad planning, inadequate resourcing and
and technical standards, along with any contingency arrangements. disruption due to poor design are problems common to all complex
All these stages of work are covered by CIfA standards and projects – and they cost money.
guidance (bit.ly/CIfAregs). Professional archaeologists are accredited If you are involved in a scheme that has not been properly planned
by CIfA, which indicates they are skilled in the study and care of and encounter unexpected remains, contact the planning authority’s
the historic environment, and ensures their work meets requisite archaeological adviser immediately: this will be important for
standards (bit.ly/CIfAorgs). sustainable development, for your reputation and to reduce the risk
Archaeology, like many sciences, has its uncertainties but these of prosecution – for example, it is unlawful to disturb human remains
are usually quantifiable. The WSI will set out sampling regimes without a licence.
and recording strategies, which should be based on professional If risks can be anticipated from the start, the costs of archaeology
judgement and adequate evaluation. can be quantified, risks managed, and outcomes structured to benefit
A contract for archaeological services, whether for a fixed fee the project’s development – and the community.
or a bill of quantities with provision for contingencies, should be
measurable, transparent and quantifiable. It should have achievable Peter Hinton is chief executive of the CIfA
aims and objectives, a clear management structure and appropriate peter.hinton@archaeologists.net
key performance indicators (KPIs). These KPIs should be identified
to form the basis of stage payments, and all outcomes should be clear Michael Dawson is director of RPS Consulting
and quantifiable. michael.dawson@rpsgroup.com
Because off-site work is extended it is better to have staged
conditions that allow for construction to begin when archaeologists Related competencies include: Construction technology
have finished on site, but which retain a charge on the land until their and environmental services, Contract practice, Programming
off-site analysis and reporting have been concluded. and planning
ucem.ac.uk/seniorleader
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Construction Education
Qualifying to a T
T levels are a new route into the construction industry combining experience
and study – and have been developed to better meet the needs of the industry
Steven Thompson
Language
the audience’
procurement, for example, have a level of
anonymity around them without context. It
is this context that is important to portray.
At a recent science, technology,
engineering and mathematics event in a
Dr Philippa Stratford London secondary school I asked students
Transport for London if they knew what a commercial manager
was, to which one student replied, ‘Someone
who makes adverts?’ They weren’t wrong,
but their context was different to mine.
Rather than rattle off a day in the life
Language has extraordinary power. As guides used in the construction industry, of a commercial manager as requested,
surveyors, we deal regularly with the published by Taylor & Francis Group. I asked the students what they were
interplay between technical, legal and interested in and tried to use their interests
financial language, and are expected to Language as power to demonstrate the role of a commercial
be fluent in all three. In my previous life as an academic and manager. This meant I was able to better
Technical scopes written by specialist international development worker, I was connect the anonymous language of
engineers need to be broken down into used to seeing lecturers, development staff commercial activities, procurement and
their component parts so surveyors and solicitors manipulate their language to contract management to things that
can best advise on contract types and include or exclude members of an audience. mattered to them – their community,
procurement routes. Estimating, cost Using overly complicated technical their families, their city.
reporting and value management all language, for example, can be difficult for Emphasising the scope of work we do,
come under the surveyor job description. non-native English speakers to understand contextualising our work and consciously
Many of us work regularly with various and can give the speaker themselves a sense using inclusive language doesn’t water
detailed contract types: the NEC, for of status. As a lecturer, however, your role down or take away from the professionalism
example, is written in plain English, and is to teach, not to rhetorically grandstand. of our industry. It opens it up to a more
yet disputes still arise. It is, of course, Similarly, the use of technical language, diverse audience who have different
important to note that disputes do not particularly acronyms, in the construction perspectives and talents – perspectives
arise only because of the use of complex industry can empower the speaker and and talents our industry is crying out for.
language – but ensuring clarity through disarm the audience.
language can help to prevent them. I am not against a detailed and specific Dr Philippa Stratford is an assistant
Language has the power to be both narrative by any means, and in many commercial manager at TfL
inclusive and exclusive. As a mid-career situations our roles require an explicitly philippastratford@tfl.gov.uk
mover and someone relatively new to the detailed vocabulary. However, any use of
industry, I was laughed at on my first day at language must be appropriate to the context Related competencies include:
Transport for London (TfL) three years ago and the intent and we should be aware Communication and negotiation,
because I didn’t know what a ‘Spon’s’ was. of how we, as speakers, are able to use Diversity, inclusion and teamworking,
It is, in fact, a suite of estimating books and language as a form of power and control. Leading projects, people and teams
rics.org/journals 23
Know.
DigitalTech.
ConstrucTech.
EnergyTech.
www.fenwickelliott.com
In the rapidly changing new built environment, we understand the opportunity
and challenges presented by new technologies.
Our specialist team provides expert advice on BIM and the latest technologies
employed in the construction, infrastructure and energy sectors.
InfraTech.
LegalTech.
Construction International
Surveying
America
The demand for quantity surveying as a profession is
growing in the USA as more companies and clients
recognise the value of the role
Simon Saliger
In New York, construction spending reached a record substantially. Global companies, including Mace – which
high of $61.8bn in 2018, the fifth year of what the New entered the market in North America in 2011 – AECOM,
York Building Congress is calling a ‘Building Boom’ Gardiner & Theobald, Gleeds and Faithful & Gould, are
(bit.ly/NYoutlook). all competing for new business. Turner & Townsend
Construction output on the US west coast is also began work in the USA in 2000. Yet the New York office
booming: Hathaway Dinwiddie Construction Company – previously Ferzan Robbins – was only acquired in
reports that California has seen more megaprojects 2011, and the name of the office was changed to Turner
over the past two years than any time in its recent & Townsend in 2015, aligning with the New York boom.
history. The areas around Seattle and San Francisco Whether you call it quantity surveying or cost
are particular hotbeds for construction. management, the practice is spreading across the USA
According to Tony Rango, the chief operating and the increase in construction activity means surveyor
officer and executive vice president of Webcor Project opportunities can only continue to grow.
and Construction Management Group, the increase Higher demand for surveying services means that
in activity in San Francisco is due to the technology salaries are competitive as firms compete for the best
boom in Silicon Valley. Technology is driving private talent, but the main stumbling block to hiring quality
developers to build office buildings for companies – professionals is the US visa application process. The
such as Facebook – that create jobs and drive residential main options are an H1-B visa, or an L-1 company
construction and infrastructure (bit.ly/ENRCali). transfer visa, but these are often difficult to obtain and
To meet this increased demand in construction, the costly. The US government caps the number of H1-B
presence of firms that provide professional quantity visas it approves every year and the L-1 visa allows intra-
surveying services in the US market has grown company transfers, but you must be employed
rics.org/journals 27
Construction International
Conflict
and challenging for professional services
firms and, as a result, they stressed the
need for maximum clarity and more
comprehension
supporting material to be provided.
••When representatives were asked to
explain what they understand a conflict
of interest to be, both from their reading
of the professional statement and their
broader knowledge and experience, about
RICS’ first review of a professional statement shows the importance half their responses demonstrated the lack
members place on managing conflicts of interest – but there is of a clear and accurate comprehension
divergence over how these are understood of the term.
RICS continually monitors feedback
from the profession on its standards. The
organisation has already made a number of
Sean Agass and Ellie Scott changes to its publication and consultation
process. This includes a greater focus
on plain English, enhanced design and
accessible layout, as well as detailed user
questionnaires to engage with the right
The effective identification and ••details the specific actions RICS will stakeholders as early as possible.
management of conflicts of interest is take or has already taken to mitigate In light of the review findings, RICS
essential to professionalism. The RICS any risks that have been identified. will assist members in the following ways.
Rules of Conduct state that members and The review was carried out with the ••Support on standards: professional
firms must ‘act with integrity and avoid aim of measuring levels of recognition statements will be supported with guidance
conflicts of interest and avoid any actions and usage of the professional statement and good practice case studies where
or situations that are inconsistent with its and identifying common themes, areas possible, to illustrate practically how they
professional obligations’. The global RICS of weakness, risk and good practice. The should be applied.
professional statement Conflicts of interest findings are already being used to inform ••Provide training: training will be
came into effect on 1 January 2018 and the future development of professional delivered on all aspects of the professional
underpins the rules by setting mandatory statements, policies and guidance. statement through means such as online
requirements and providing supporting The review is accompanied by modules and webinars.
guidance in this challenging area. materials that are designed to strengthen ••Focus on smaller firms: additional
A recent review of the professional implementation of the professional assistance will be offered to smaller firms
statement, entitled Conflicts of interest: statement, although these documents to ensure they meet the obligations of the
implementation and impact, presents the do not constitute formal RICS guidance. professional statements.
findings from two phases of research. Phase The following are some of the key points ••Raise awareness: new developments with
one surveyed all 10,051 RICS-regulated identified in the review. professional statements will be highlighted
firms with email addresses, 40 per cent ••Almost all RICS members and firms to smaller firms, which may not have the
of which responded. A large majority of consider managing conflicts of interest to resources available to monitor changes in
respondents – 94 per cent – were small be important, with a combined 93 per cent the regulatory environment.
firms with fewer than ten staff, most of believing this is either critically important
which are based in the UK. For phase two or very important. Sean Agass is a former standards and guidance
of the research, RICS interviewed contact ••The vast majority – 87 per cent – of editor and Ellie Scott is a senior project
officers or specialist staff representing firms believe staff are quite familiar with manager at RICS escott@rics.org
31 firms, this time focusing on a greater the professional statement.
proportion of large firms and those ••The process for identifying, managing and Related competencies include: Ethics,
operating internationally. informing clients about conflicts of interest Rules of Conduct and professionalism
Following this work, the review: varies significantly from firm to firm. Some Further information: Conflicts of interest:
••sets out how the professional statement have a less formal approach in place, which implementation and impact and supporting
has been received by the market may lead to inadequate record-keeping or materials are available for download at
••identifies how well conflicts of interest management of conflicts of interest. rics.org/coireview. The e-learning course
are understood, identified, managed, ••Identifying and managing conflicts of on conflicts of interest can be found at
recorded and communicated interest comprehensively can be complex rics.org/conflicttraining.
rics.org/journals 29
Construction Tax
Taxing
During a panel discussion on the future of the construction industry
at this year’s RICS Construction Conference, conversation turned to
vertical integration, the Construction Supply Chain Payment Charter,
project bank accounts and business cases. One attendee noted that
she was concerned about how the government’s new Making Tax
times
Digital (MTD) scheme would affect an industry already under severe
financial pressure.
The MTD scheme is a key part of the HMRC’s ambition to become
one of the most digitally advanced tax administrations in the world.
The aim is to make it easier for taxpayers to file tax estimates online
and to provide:
••more efficient and effective tax administration
••tax costs in real time
••a single account where liabilities and entitlements can be viewed
Business owners and self-employed ••digital interaction with HMRC through secure messaging.
professionals can take steps to cut through The idea is to enable a more ongoing and accurate projection of
the noise and embrace HMRC’s new tax due, hopefully improving on the annual loss of more than £9bn
from avoidable taxpayer errors.
Making Tax Digital scheme
Yet, despite the promise, many people – small business owners
in particular – have questioned the clarity and timeliness of
information provided about the new scheme: a recent YouGov poll
Steph Fairbairn found that only eight per cent of small firms yet to move to MTD
were ‘very prepared’ to do so (bit.ly/YouGovMTD). MPs and business
groups have also expressed concern that many of the 1.2m businesses
affected were not ready for the change.
These questions and concerns have enhanced opportunities for
tax and accounting professionals and businesses, resulting in the
internet being inundated with ‘how to’ guides and ‘top tips’ manuals.
rics.org/journals 31
Construction Tax
Getting ready
Considerations ahead of MTD compliance include the following.
••Ascertain whether you or your business should be complying
with MTD. If a business is already exempt from filing VAT returns
Integrating the scheme into
online, or its taxable turnover is below the VAT registration
threshold, there is no need to sign up to the scheme or apply
business practice may feel
for an exemption. Those with a taxable turnover below the VAT overwhelming, but it can only
registration threshold can, however, choose to follow the MTD rules
voluntarily. This may be advisable to both streamline processes benefit an industry facing
and prepare for potential future compliance. If a company’s taxable
turnover drops below the VAT threshold at any point, it is still financial uncertainty
required to participate in MTD.
••Read up on the scheme and determine the work and resources
required. Some small businesses undergoing the transition have had
to increase staff and resources to get to grips with the new scheme.
••Comply with the new scheme. To do this, businesses and sole
traders must either use a compatible software package, or a bridging
software, allowing users to submit VAT returns to HMRC systems.
One of the biggest challenges small firms have faced so far is the
use of MTD-compliant software.
Advice from HMRC suggests that using compatible software
provides maximum benefits, so bridging software should only be
used as a temporary measure, and the best – and easiest – time system for late filing, along with a new late payment regime should
to make the switch is following tax year-end. come into force. However, this may change: these systems were
Experts advise that cloud accounting software is best suited originally due to be in place by the time MTD launched but were
to MTD – it reduces IT spend, is available any time and means deferred. In terms of late filing, missed VAT returns will accrue
that data is stored securely online, reducing the risk of losing it. penalty points, and a fine will be issued after a certain number of
To this end, the HMRC website provides a non-comprehensive accumulated points. Late payments will be penalised, in the worst
list of software providers that can be narrowed down depending case with a HMRC interest rate charge of 100 per cent plus daily
on suitability (bit.ly/MTDsoftware). interest charges.
Although the software is used to hold most key information as Also consider the implications of Brexit. Not only is Brexit
a digital record, such as business name, address of principal place contributing to the difficulties business are facing in getting to
of business or VAT registration number, there are still records that, grips with the MTD scheme, but it will also change the tax system.
by law, must be kept in their original hard copy form, such as the If the first MTD submission is during or after Brexit, additional
C79 import VAT certificate. adjustments may need to be made.
The complete set of digital records to meet MTD requirements Above all, embrace the change. Similar schemes have had positive
does not all have to be held in one program: digital records can be impacts in other countries. In Estonia, for example, a tax return
kept in a range of compatible digital formats and then combined now takes five minutes to complete through the single shared
to form the digital records for the VAT-registered entity. If using platform X-Road, to the satisfaction of many taxpayers.
multiple programs, data transfer or exchange between them must HMRC, like the construction industry, is trying keep pace with
be digital – called digital links by HMRC – so that a digital journey technology and use it to positive effect. For any change, challenges
can be tracked. In order to ease the transition, HMRC is allowing are inevitable – and an adjustment period helps. Ultimately,
a soft-landing period for the first year of compliance, where however, the success of the new MTD scheme will depend on two
businesses are not required to have digital links. things: users committing to its use, and HMRC ensuring it operates
After sourcing the software – one program or multiple – the as well as possible. The best you can do is to stay informed so your
next step is to sign up for MTD for VAT, and then authorise the business complies by the deadline. That way you stand the greatest
software to interact with HMRC. Individual software companies chance of avoiding penalties and reaping the potential rewards.
can help with this if needed.
Once all of the elements are in place, companies and individuals Steph Fairbairn is editor of the Construction Journal
must make sure they stay informed. Although HMRC will send sfairbairn@rics.org
reminders for due dates, make sure you keep note of all relevant
dates and regulary check if they have been adjusted. Related competencies include: Accounting principles and
At the time of writing, the light touch approach for MTD for procedures, Consultancy services
VAT is due to end on 31 March 2020, and a new penalty points Further information: bit.ly/HMRCMTD
The commodity
of the future
Surveyors work with data every day so understanding how
and why to use it is essential, as the Data management
competency highlights
David Cohen
Data is fundamental to the role of modelling and computerised central Once your summary of experience has
surveyors: much of the provisions of our databases. There are various views on the been completed and focus moves to the final
professional services require and depend benefits, challenges and dangers of using assessment, remember that while mandatory
on it. All candidates taking the RICS APC this technology and its adaptation and competencies can be questioned directly by
are, therefore, required to complete the Data applicability across a variety of project types. assessors, they can also be covered during
management competency to at least Level 1. ••Understanding how legislation affects both questioning on other technical competencies
Candidates are required to ‘demonstrate the use and storage of data. You should know or in case study questioning. Make sure you
knowledge and understanding of the sources what legislation is relevant in the jurisdiction are prepared to address Data management
of information and data, and of the systems in which you are working, and what that at any point during your interview.
applicable to their area of practice, including legislation dictates. Data is a valuable commodity, and its
the methodologies and techniques most In the UK, the introduction of the General influence and importance look set to grow
appropriate to collect, collate and store data’. Data Protection Regulation (GDPR) under exponentially. Understanding how to work
Level 2 means providing evidence of the Data Protection Act 2018 has affected with it is vital for any surveyor.
practical application, understanding the the way businesses handle data. Be aware
relevance of information gathered and of this and its impact on you and your David Cohen FRICS is an APC chair, assessor
analysing the data. day-to-day business activities. and auditor, a founding director of APC
At Level 3, candidates must provide The GDPR applies to personal data, Academy and Amicus Property Consultants,
evidence of reasoned advice given to meaning any information through which and a member of the Construction Journal
clients and others on the use and practical someone can be directly or indirectly editorial advisory group
application of the information collected and recognised, such as name, identification david.cohen@apc-academy.co.uk
systems used. They must also specify the number, location data or online identifier.
most appropriate way to collect, analyse Significant fines are applicable if firms Related competencies include Data
and apply data. do not comply with these regulations. management
In a surveyor’s day-to-day activities, data
is integrated into numerous processes. There
are some fundamental questions to consider
when creating data outputs, such as cost
estimates (see box, right). Considerations for creating data outputs
As an APC candidate, you should be
particularly knowledgeable in three key areas. • What data is needed? Identify the type of data required for the task.
••Knowing how data is collected, analysed • Has the data already been collected and published through a service such as
and ultimately stored, more specifically in BCIS, for example, or is it more unique, such as data collected in house or through
your company. Speak to your organisation benchmarking? Wherever the data comes from, check it is reliable, current and
and understand fully how data is being applicable to the outputs required.
managed, maintained and adjusted. • How is the data interpreted? Is the data comparable if multiple sources are used?
••Being aware of the impact of data on • Is the data sensitive and can it be used legally?
technology, such as building information
rics.org/journals 33
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