RICS guidance notes

RICS has provided a number of position statements highlighting its concerns and issues with Brexit on a sector-by-sector basis. BREXIT Movement of Personnel Movement of people now restricted with free movement having ended on 31st December 2020.
on Brexit

This also outlines what the RICS think the UK government should be doing to make Brexit work for a post-EU UK. From 1st January 2021 the UK has a new global immigration system.

Employers now required to register as sponsors in order to recruit from abroad.

Encouragement of growth and diversity of the construction workforce as potential loss of non UK works could create
The position statement highlights :
significant issues as this currently account for 12.6% of workers.
To employ someone from outside the UK the individual must meet job, salary and language requirements.

EU membership provides access to a number of EU funding streams such as the European Investment Bank (EIB). The
loss of EU led funding streams could have a significant impact on project delivery in the UK. With the supply of labour being more restricted this has led to labour cost increases and a reduction in the availability of labour.

The RICS is calling for the UK Government to act to keep EIB funding or introduce a new lending mechanism, to plug the
Movement of materials Under UK’s new trade agreement with the EU, most traders will not have to pay tariffs when moving goods across borders but will have to meet relevant Rules of Origin for their products.
gap which could result in a lack of infrastructure investment.

Price of goods moving across the border is expected to increase due to the additional border checks and administrative work.
Despite cross border tariffs not being introduced, the additional administrative work and checks in my
Material Cost Increases
experience are slowing down the supply of labour and materials.

COP26 is the most recent annual UN climate change conference. COP stands for Conference of the Parties.

Cost increases and availability issues in particular in the cost of : Steel. Cement. Skilled and non skilled labour.
The summit was attended by the countries that signed the United Nations Framework Convention on Climate
SUSTAINABILITY COP26
Change (UNFCCC) – a treaty that came into force in 1994.
Plastic components. Plasterboard.

What was agreed at

Explicit plan to reduce use of coal which is responsible for 40% of annual CO2 emissions.
COP26?
Used fairly, lawfully and transparently. Replaces previous 1998 legislation and manages how personal data is processed by organisations
and the government.
GDPR Commitment to ‘phase down’ rather than ‘phase out’ coal after a late intervention by China and India.

Used in a way that is adequate, relevant and limited to

only the purpose it is intended. Pledge to significantly increase money to help developing countries cope with the effects of climate
It is the UK legislation for the implementation of the EU General Data Protection Regulations (GDPR).
change and make the switch to clean energy.
Is retained for no longer than is necessary.

Trillion dollar a year fund from 2025 onwards after a previous pledge for richer countries to provide
Processed securely including the protection against Key Principles of the Data $100bn (£72bn) a year by 2020 was missed.
The act ensures that data is :
unlawful use, loss or destruction. Protection Act

How does it relate to the

At the COP 21 meeting in Paris in 2015, the Paris Agreement was formed.
Paris Agreement?
Person’s rights under the
To be informed about how their data is being used. People have the right to :
Data Protection Act During the COP Meeting, the parties agreed to pursue efforts to prevent temperatures rising more than
1.5C above pre-industrial levels to avoid the most dangerous impacts of global warming.
The right to access their data. To stop or restrict the processing of their data.

The following Conference of the Parties meetings discusses how each nation is progressing against the
The right to have incorrect information updated. The right of portability.
original Paris Agreement.

To have their data erased. To object to the use of their data.

RICS Guidance following RICS published Guidance note ‘Cladding for Surveyors 1st Edition March 2021’ to support surveyors
Money Laundering
RICS APC
RICS Guidance Note - Countering Bribery and Corruption, Money Laundering and Terrorist Grenfell working on Multi-storey and multi occupancy residential buildings.
RICS GUIDANCE
Financing February 2019. Regulations

GRENFELL IMPACT
HOT TOPICS
ACM cladding? ACM standards for aluminum composite material
Split into Mandatory Requirements, Good Practice, Supplementary Guidance

Two skins of aluminum bonded to either side of a lightweight core of materials such as polyethlene or a mineral core.
Split into Mandatory Requirements, Good Practice, Supplementary Guidance

Significance of ACM in ACM cladding in use was thought to contain combustible materials that contributed towards the spread of fire across the external
Definitions include:- Bribery, Corruption, Customer Due Diligence, Facilitation Payment, Money Laundering. RICS GUIDANCE ON relation to Grenfell elevation of the building.
COVID-19

Not offer or accept a bribe. RICS regulated Firms must As a result the UK government has now banned the use of combustible materials on high rise homes from 29th November 2018.

Have plans in place to comply with laws governing bribery. RICS COVID-19 GUIDE TO SURVEYING The ban means that combustible materials are not permitted on the external walls of new buildings above 18m.
SERVICES WITH ADVICE ON
Physical Inspections for Residential Properties.

Report any activity that breaches anti bribery or corruption laws Local authorities also need to undertake remediation works to replace dangerous ACM cladding on existing buildings.
Physical Inspections for Non-domestic Properties

Act with due diligence and perform periodic evaluations and risk
Residential Valuations and Surveys.
EWS1
factors that may lead to bribery, corruption or facilitation payments.
COVID-19 EWS1 is an External Wall System Fire Review Certificate.

Reopening of the Housing Market.

Main Principles of the
BRIBERY ACT Bribery Act
Applicable when a multi-storey residential property is either being bought, sold or re-mortgaged.

Reopening of Commercial Buildings.

COVID-19 IMPACT ON
SURVEYING It is not a building safety certificate but a re-mortgaging valuation tool.

From a Quantity Surveying perspective - significant material cost increases and a reduction in availability of materials.
The RICS and mortgage lenders jointly formed the EWS1 form as a way of mortgage lenders assessing
The offences are : Making a bribe.
the external wall safety of buildings over 18m in height.
Cost of steel per tonne increased in the last year by around 22%.
Maintaining Social Distancing. Receiving a bribe.

Minimising physical contact with building occupiers.
Ensure compliance with the H&S procedures being operated by the site.
Securing as much information as possible from the client prior to the visit
and as part of the pre-inspection research
Plastic piping, plasterboard and labour availability increasingly scarce. First Safety Act was introduced in March 2020 and holds significant legal obligations of organisations deemed to
Bribery of a foreign public official.
New Fire Safety Act 2021
be responsible persons.
Significant cost increases effecting financial viability of developments.
Failure of a corporate entity to
Introduced as an update to the Fire Safety order 2005.
prevent bribery on its behalf.
I practice inline with the RICS Covid-19 guide for Inspections PRECAUTIONS DAY
and Visits for non-domestic properties including : TO DAY Main focus is the amendment of the Fire Safety Order to clarify that it will apply to the structure and external
Legislation applies to all UK Entities and includes associated Persons for example sub-consultants walls as well as anything attached to external walls such as doors, windows and cladding.

Sanitise equipment in line with current Public Health Guidance, periodically and external advisors.
and as often as practical Under the previous regime it was unclear who was responsible for fire safety compliance for these elements of
There are six principles of prevention companies should put in place : 1. Proportionate Procedures. the building.
CONTRACTUAL
JCT Contracts as a standard include Force Majeure clause.
IMPLICATIONS 2. Top Level Commitment.
This will force owners, landlords and managing agents of multi-occupied residential buildings to take precautions
to identify any dangerous cladding on those buildings and remediate any dangerous materials.
This entitled Contractors to an extension of time for the shut downs that were imposed. 3. Risk Assessments.

Contractors sought loss and expense claims for additional preliminary health & safety items such as temperature scanners, masks, and RICS COVID-19 RECOVERY BUSINESS PLAN LEVITT REPORT The Levitt Report was commissioned by the RICS following a Treasury management audit in 2018. 4. Due Diligence.
perspex barriers along with the impact that social distancing had on slowing down construction operations.
Prior to the Audit the RICS had to extend its overdraft facility by circa £3m due to inaccurate cashflow
5. Communication.
forecasting. The RICS Governing Council are to have more oversight over internal dealings of the RICS.
NEC contracts have compensation events raised entitling the Contractor to additional time and costs for the period of delay and additional
prelims caused as a result of the pandemic. Incorporating the Levitt More open and transparent with members and the public about the operations of the
6. Monitoring & Review.
Report Recommendations institution including decision making and finances. The treasury management audit offered a ‘no assurance verdict’ on RICS internal financial control The RICS Governing Council are to be briefed by the Management Board as opposed to a single CEO.
procedures and following this the Levitt report was commissioned as an independent review.

The RICS Governing Council are to oversee executive management bonuses.

Following Levitt Report towards the end of 2021 the RICS appointed its new leadership Developing and implementing effective, internal whistleblowing arrangements
team and named Richard Collins as its new interim chief executive.
RICS RESTRUCTURE The conclusion of the Levitt report illuded to an internal power struggle due to its two board structure
made up of a Management Board and Executive Board. The report called for greater transparency as the CEO could have involved the management board in
Reviewing the arrangements for senior executive reward. order to rectify the treasury issues.
Acting chair of the governing council Nick Maclean has also been appointed as interim Following the report the RICS accepted each of Levitt’s recommendations including:
chair of the governing council, while Isobel O’Regan has been appointed as interim chair No evidence of improper or illegal conduct was discovered.
of the management board. Immediate Financial Utilise any surplus in cash generation to pay back furlough monies received via the UK
Priorities government’s Coronavirus Job Retention Scheme.

All three members of the leadership team will stay in their posts for up to 12 months to
lead the RICS in carrying out the reforms recommended by Levitt in her report. Reduce RICS’ need to access external financial support

Reduce any funding deficit in the closed Final Salary Pension Scheme.