RICS APC HOT TOPICS 2025 STUDY GUIDE

INTRODUCTION

The RICS expects that their Chartered Members are committed to lifelong learning and self
development. As a result, during the APC, candidates will be expected to address a number
of questions on their knowledge of current affairs effecting the industry along with any
legislation changes that are applicable in the region you operate in.

The following questions and answers aim to cover the anticipated hot topics expected for
2025. Revision mind maps are also included to support candidates with their revision in
preparation for their final assessment interview with coverage on the follow topics:-

 Impact of Artificial Intelligence on the Industry.

 Harris Debate 2024, Ethics in The Age Of AI.
 RICS Professional Fee Updates.
 RICS 2024 Sustainability Report.
 RICS Leadership Updates.
 RICS Rules of Conduct Updates.
 United Kingdom Labour Government Impact on the Industry.
 United States Election Results Impact on the Industry.
 COP29.
 Global Carbon Market.
 MEES Regulations.
 Economic Outlook for 2024.
 Grenfell & Fire Safety.
 RICS PII Cover.
RICS RULES OF CONDUCT – REVISION MIND MAP
RICS KEY INFORMATION – REVISION MIND MAP
RICS SETTING UP IN PRACTICE – REVISION MIND MAP
RICS APC HOT TOPICS 2025 – Q&A PRACTICE

IMPACT OF ARTIFICIAL INTELLIGENCE

Please explain your understanding of the Harris Debate?

 The Harris Debate is organised annually by the RICS and provides a platform to
address ethical concerns in the field of surveying and valuation.
 The debate honours Jonathan Harris, a former RICS president known for his
contributions to professional development and education.

What was discussed at the Harris Debate 2024?

 In 2024 the debate focussed on the theme of Ethics in the Age of Artificial
Intelligence and its impact on Valuation Practices.
 The debate explored the ethical implications of incorporating artificial intelligence into
valuation and surveying as AI is becoming more integrated in these fields.

What is your view on the use of AI for the purposes of property valuation?

 Artificial Intelligence does have the potential to offer greater accuracy and efficiency
when carrying out a valuation.
 AI algorithms are able to evaluate other comparable properties and pinpoint an
estimated valuation.
 Applications are currently availble to take into account factors such as satellite
imagery, crime rates, market trends and regional economic factors.
 Current drawbacks of AI are that site specific abnormal details such as property
condition and special values cannot be considered.
 There is also a susceptibility to a reliance on bad data which can reduce the
accuracy of the AI generated inputs.
 I do feel AI can offer advantages with providing access to a wide array of data and
greater efficiencies when used as a data collection and processing tool.
 I feel in its current stage of development and into the future, it will always be critical to
have significant input from a human appraiser standpoint in order to undergo rigorous
checks and due diligence.
What are the ethical concerns with the adoption of AI for the purposes of property
valuation?

 It is important to consider that AI algorithms rely on data and if this data is inaccurate,
incomplete or intentionally weighted following bias data input, this can dramatically
skew results in the favour or to the detriment of the parties involved.
 There are also great issues around transparency of the data input and analysis with
operators of AI not always fully cognisant of how results have been generated.
 For a valuation to be compliant with RICS Red Book Standards, transparency of how
the value has been determined is key.
 There is a perception that AI models are ‘black boxes’ where even creators can’t fully
explain how decisions are made, therefore to run a valuation with sole AI input is not
compliant with current regulations and industry standards.

What wider impact do you feel AI will have on the property industry?

 Artificial Intelligence has the potential to play a significant role in the industry with key
advantages including:-
1. Enhanced Property Management - Automation of maintenance scheduling,
analysis of tenant behaviours, improved energy efficiency through smart
building technologies with AI monitoring systems such as lighting, heating and
security in real time.
2. Data-Driven Decision Making - AI has the potential to analyse vast amounts
of market data to predict trends, assess property values, and identify
investment opportunities.
3. Streamlining Transactions - AI can simplify the buying, selling, and leasing
processes by automating paperwork, ensuring compliance, and detecting
fraud.
4. Urban Planning and Development - AI can assist city planners and
developers by analysing environmental, social, and economic data. It can
simulate the impact of new developments, optimising infrastructure planning
and sustainability efforts.
5. Risk Management – AI can play a pivotal role in identifying and mitigating
risks, such as market volatility, structural issues in properties, or potential
legal complications. Predictive algorithms help stakeholders anticipate and
mitigate these risks.
 As AI adoption grows, the property industry is likely to see a mix of efficiency gains
and cultural shifts, emphasising collaboration between technology and human
expertise.

What impact will AI have on the construction industry?

 A large overhead for the majority of Main Contractors is the estimating process which
can be very onerous and require weeks of input from skilled estimators.
 AI can assist the estimating process by supporting estimators with data collection
and processing when reviewing large tender packs made up of contract documents,
drawings, specifications and legal documents.
 Site safety AI powered cameras can scan the site to detect potential safety hazards
for example if a worker forgets to wear their helmet an alert can be generated to
advise the site management to intervene.
 AI driven sensors can be placed on site plant and machinery to predict when
maintenance inspections and replacements should be undertaken. Plant and
machinery down time can cause significant cost and delays which AI can play a part
in reducing.
 AI technology can use energy modelling software to adjust lighting, HVAC and
security systems to reduce operating costs and improve energy efficiency.
 Automation of construction tasks is also being carried out for repetitive and labour
intensive tasks such as bricklaying, excavation, and welding.
RICS UPDATES

Please explain your understanding of the RICS Business Plan?

The RICS business plan for 2024 focuses on four major areas:-

1. Sustainability Leadership - RICS aims to lead on global issues such as

decarbonisation, climate resilience, biodiversity, and the circular economy. This
involves strengthening carbon measurement standards, influencing policymakers,
and equipping members with training and tools to address sustainability challenges.
2. Attracting Diverse Talent - Efforts are underway to attract a wider range of individuals
into the profession. This includes modernising the assessment process, increasing
support for early-career professionals, and creating grants and bursaries for
underrepresented groups.
3. Enhancing Member Engagement - RICS is working on improving the value and
experience for its members. This includes better understanding their needs through
data insights, creating stronger connections among members, and promoting their
work and professionalism publicly.
4. Strengthening Trust - The institution plans to enhance public trust by refining its
regulatory processes, ensuring transparency, and maintaining high standards for
ethical and technical practices.

Are you aware of any guidance that applies to RICS Members when using Social
Media?

 The RICS introduced the Guidance Note ‘Use of Social Media: Guidance for
Members Version 1.
 This took affect from 30th June 2021.
 The Guidance note sets out the same standards as stipulated in the RICS Rules of
Conduct and reminds members that these do not change whether communicating via
social media, face to face or traditional forms of media.
How do you ensure you operate inline with RICS guidance on the use of Social
Media?
 Information sharing
 I am always sure to use social media in a responsible and professional manner in the
same way that I communicate via face to face or other written forms of
communication.
 I am sure to use professional and respectful language when communicating and
understand the responsibility in representing the RICS.
 I would never make a post that is dishonest or would cause offence in any way.
 I realise that this could potentially undermine public confidence and trust in the
profession.

When would the RICS investigate a Social Media post made by one of its members?

 An investigation may take place if a social media post is:-

1. Discriminatory.
2. Dishonest.
3. Abusive or threatening.
4. Likely to cause significant harm, distress or offence to a person.
5. Shows a pattern of frequent or large number of concerning communications.
6. Ignores previous advice or warnings about concerns.

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

 The RICS is launching a scheme known as the Inclusive Employer Quality Mark.
 This is designed to improve diversity and inclusion within the property and
construction sector.
 The scheme requires employers to pledge their commitment to adopting and
continually improving against the following six principles:
1. Leadership and Vision.
2. Recruitment.
3. Staff development.
4. Staff retention.
5. Staff engagement.
6. Continuous improvement.
 Participating firms will be required to assess their performance against the criteria on
a bi-annual basis.
 RICS will use the assessment information to document the outcomes and trends for
the profession as a whole.
 Participating firms are able to use the branding of, ‘Signatory to the RICS Inclusive
Employer Quality Mark’.
What are the New Rules of Conduct?
 Rule 1. Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS.
 Rule 2. Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise.
 Rule 3. Members and firms must provide good-quality and diligent service.
 Rule 4. Members and firms must treat others with respect and encourage diversity
and inclusion.
 Rule 5. Members and firms must act in the public interest, take responsibility for their
actions and act to prevent harm and maintain public confidence in the profession.

Explain your understanding of Rule Number 1?

 Having reviewed the example behaviors in adhering to Rule 1 RICS Members and
firms should not allow themselves to be influenced improperly through the
acceptance of work referrals, gifts or hospitality.
 Members and Firms must also be sure to identify conflicts of interest and not provide
services or advice where these conflicts of interest occur.
 This could be a scenario where you have reduced impartiality due to an existing
relationship, for example being friends with a Main Contractor who has subsequently
been selected to submit a tender would form a conflict of interest.
Explain your understanding of Rule Number 2?

 To ensure compliance with Rule 2, Members and firms must only act for clients
where they have the necessary knowledge, skills and resources to carry out the work
competently.
 Firms must supervise any employees or subcontractors undertaking work on their
behalf, for example requesting that a Junior Surveyor undertakes a complex
valuation due to resourcing issues would create problems in achieving compliance
with this Rule. Instead an experienced and suitably qualified surveyor should be
asked to undertake the valuation.

Explain your understanding of Rule Number 3?

 As an RICS member or regulated Firm we must also be sure to understand a clients’

project specific requirements before acting on their behalf. The clients’ scope of
services should be agreed along with any exclusions and timescales for achieving
each of the deliverables before signing up to formal terms of engagement.

Explain your understanding of Rule Number 4?

 The RICS also expects its members to respect the rights of others and treat others
with courtesy.
 We need to ensure that everyone is treated fairly and look to eliminate any instances
of discrimination on the basis of age, disability, gender, pregnancy, race, religion or
sexual orientation.
 RICS members and firms also need to adopt a no tolerance policy of bullying or
harassment.

Explain your understanding of Rule Number 5?

 Members and firms are required to question practices and decisions that they
suspect are not right and raise concerns with colleagues, senior management, clients
or the RICS.
 When making public statements we need to ensure these do not undermine public
confidence in the profession.
 When receiving and processing complaints, we need to ensure these are dealt with
promptly, openly and professionally.
 In complying with Rule 5, a useful sense check to ensure compliance is to ask
ourselves if we would be comfortable in standing behind our actions if these were
brought into the media or a public forum.
Why did the previous Rules of Conduct change?

 The previous rules had been in place since 2007.

 Following research and consultation with RICS Members, Firms and Members of the
public, the majority voted in favour of replacing the existing Rules of Conduct and
separate Global Professional and Ethical Standards.
 This was to provide a single document to enable greater clarity for RICS members
and firms.
 There is now a greater focus on clearer example behaviors, understanding evolving
technology and tackling climate change.

Talk us through your understanding of the changes?

 The Rules of Conduct October 2021 Global Practice Statement will overhaul the
previous separate documents:
 Rules of conduct for Members.
 Rules of Conduct for Firms.
 Global Professional and Ethical Standards.
 Appendix A of the Rules of Conduct now contains the professional obligations of
Members and Firms.
What are the professional obligations of members?

 1. Members must comply with the CPD requirements set by the RICS which requires
20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
 2. Members must cooperate with RICS.
 3. Members must promptly provide all information reasonably requested by the
Standards and Regulation Board, or those exercising delegated authority on its
behalf.

What are the professional obligations of firms?

 1. Firms must publish a complaints-handling procedure, which includes an alternative

dispute resolution provider approved by RICS, and maintain a complaints log.
 2. Firms must ensure that all previous and current professional work is covered by
adequate and appropriate professional indemnity cover that meets the standards
approved by RICS.
 3. Firms with a sole principal must make appropriate arrangements for their
professional work to continue in the event of their incapacity, death, absence from or
inability to work.
 4. Firms must cooperate with RICS.
 5. Firms must promptly provide all information reasonably requested by the
Standards and Regulation Board, or those exercising delegated authority on its
behalf.
 6. Firms must display on their business literature, in accordance with RICS’ published
policy on designations, a designation to denote that they are regulated by RICS.
 7. Firms must report to RICS any matter that they are required to report under the
Rules for the Registration of Firms.

What are the main benefits of Diversity & Inclusion?

 Diverse and inclusive environments help to:

1. Attract skilled professionals from diverse backgrounds.
2. Establishes a sense of belonging among employees.
3. Encourage employees to feel more connected.
4. Increases productivity.
5. Reduces staff turnover.
6. Allows employees to feel valued and accepted.
What is the RICS doing to improve Diversity & Inclusion?

 The RICS has setup ‘Diversity & Inclusion leadership’ which is a knowledge hub
allowing the RICS to share ideas on how and why diversity & inclusion is so
important to the RICS.
 This has included initiatives such as:
1. International Women’s Days celebrating the achievement of Women in our
profession.
2. Pride 2023: LGBTQ+ equality pledge focusing on the importance of LGBTQ+
representation in the profession.
3. The McGregor-Smith Review – aiming to develop black and ethnic minority
talent within the profession.

Please explain your understanding of how the RICS define Professional Standards vs.
Practice Information?

 Following the Bichard Review and its recommendations the RICS have introduced
two new definitions for Professional guidance which are now split into Professional
Standards and Practice Information.
 These supersede the former definitions including Professional Statements, Guidance
Notes and Codes of Practice etc.
 Professional Standards - set out requirements or expectations for RICS members
and regulated firms with a focus on baseline expectations for competence and ethical
behavior. They contain mandatory requirements that surveyors must follow, where
the word ‘must’ is used with best practice that surveyors should follow, where the
word ‘should’ is used.
 Practice Information – set out supporting guidance to advise surveyors in delivering
specific services or working in specific areas of practice. The guidance is not
mandatory and does not provide explicit recommendations. Practice Information can
refer to processes, toolkits, checklists, insights, research and technical information or
advice.
SUSTAINABILITY

Please explain your understanding of what happened at COP29?

 COP29 was held in Baku, Azerbaijan in November 2024 and focused on addressing
the climate finance gap through the loss and damage fund, designed to support
vulnerable nations.
 Some progress was made on working towards a global carbon market where the
buying and selling of carbon emissions is facilitated to help reduce global emissions.
This market would incentivise lower global emissions for companies, countries and
other entities.
 By putting a price on carbon, it incentivises industries to innovate and invest in
cleaner technologies, helping to reduce the global carbon footprint.
 Progress was made on the NCQG or New Climate Finance Goal to replace the
previous $100bn Goal. This is intended to ensure that sufficient financial resources
are mobilised to support developing countries to address the impacts of loss and
damage from climate-related disasters. A consensus on the amount and scope of the
funds required was discussed at COP29.

What is meant by the term Global Carbon Market?

 This refers to an international system that allows the buying and selling of carbon
emissions, allowances or credits.
 It is designed to help reduce global greenhouse gas emissions by putting a price on
carbon to incentivise countries, companies, and other entities to innovate and invest
in cleaner technologies and help to reduce the global carbon footprint.

Please provide a high-level overview of the RICS Sustainability Report?

 The RICS Sustainability Report 2024 provides a detailed analysis of the current state
of sustainability within the built environment sector. The key findings include:-
o Identification of an increase in market demand for green buildings however
the adoption of sustainable practices remains limited.
o High upfront costs and insufficient government incentives form significant
barriers to widespread implementation of greener building methods.
o The report highlighted a need for consistent sustainability measurement
across projects. Tools like the RICS Whole Life Carbon Assessment (WLCA)
standard aim to address this issue by providing a unified framework for
assessing and reducing carbon emissions throughout a building's lifecycle.
o The RICS emphasises that the level of commitment and action needs to
increase substantially to achieve 2050 net-zero targets.
o RICS continues to play a pivotal role in shaping sustainability policies and
standards globally. Its involvement in initiatives like the UN's Buildings
 Breakthrough highlights the importance of harmonising sustainability
standards worldwide.

Please explain your understanding of the acronym MEES?

MEES stands for Minimum Energy Efficiency Standards. These are regulations in the UK
that set minimum energy performance requirements for buildings, specifically for privately
rented properties. Under MEES, properties in the private rental sector must meet at least an
E rating on their Energy Performance Certificate (EPC) to be legally rented out. If a building
is rated lower than an E, landlords are required to improve the energy efficiency of the
property before renting it out, unless specific exemptions apply. The MEES regulations are
part of the UK government's broader environmental and sustainability agenda, aiming to
ensure that properties are energy-efficient and more environmentally friendly.

Please explain your understanding of the term ‘Carbon Life Cycle’?

Carbon life cycle is a holistic view of the carbon footprint of a building. This considers the
carbon impact from:-

 Material extraction.
 Manufacturing.
 Transportation.
 Construction works.
 Maintenance.
 Repairs or replacement of materials.
 Consumption of energy.
 Carbon use at the end of the buildings life.

The represents a shift in simply selecting low carbon building products and encourages a
longer term view during the building design process.

Please explain your understanding of the term ‘Negative Carbon’?

The reduction of an entity's carbon footprint to less than neutral. This results in a net effect of
removing carbon dioxide from the atmosphere rather than adding it.

Please explain your understanding of the term ‘Carbon Offsetting’?

Carbon offsetting results in a reduction of Green House Gas emissions or an increase in

carbon storage. This is usually achieved through land restoration or the planting of trees that
can compensate for emissions that occur elsewhere.
Please explain your understanding of the term ‘Carbon Life Cycle’?

 Carbon life cycle is a holistic view of the carbon footprint of a building.

 This considers the carbon impact from:-
1. Material extraction.
2. Manufacturing.
3. Transportation.
4. Construction works.
5. Maintenance.
6. Repairs or replacement of materials.
7. Consumption of energy.
8. Carbon use at the end of the buildings life.
 The represents a shift in simply selecting low carbon building products and
encourages a longer term view during the building design process.

Please explain your understanding of the term ‘Negative Carbon’?

 The reduction of an entity's carbon footprint to less than neutral.

 This results in a net effect of removing carbon dioxide from the atmosphere rather
than adding it.

Please explain your understanding of the term ‘Carbon Offsetting’?

 Carbon offsetting results in a reduction of Green House Gas emissions or an

increase in carbon storage.
 This is usually achieved through land restoration or the planting of trees that can
compensate for emissions that occur elsewhere.

Please explain your understanding of the term ‘Placemaking’?

 Placemaking is a wholistic approach to the development of public spaces that

considers planning, design, implementation and management.
 This aims to deliver public spaces that offer unique value to their occupants such as:-
1. A greater sense of belonging.
2. Increased security.
3. A unique atmosphere.
4. Inspiration and experience.
5. A sense of pride in community.
 The concept is thought to result in an improved quality of life to occupants, greater
happiness, better work productivity and a possible increase in property values.
ECONOMIC & POLITICAL FACTORS

What impact will the labour governments election have on the Property &
Construction Industries?

Election of the Labour government may have the following impacts:-

 House Building Targets - Labour has pledged to build 1.5 million homes over the next
parliamentary term, reinstating mandatory housing targets and updating the National
Planning Policy Framework (NPPF).
 Infrastructure Projects - Significant funding is planned for public infrastructure,
including transportation networks, renewable energy projects, and urban
development. This will create opportunities for large scale construction projects, likely
driving economic growth and job creation.
 Sustainability Focus - Labour has committed to embedding green practices across
the industry, with policies focusing on eco-friendly materials, retrofitting existing
buildings for energy efficiency, and integrating biodiversity in urban planning. This
could lead to increased demand for sustainable construction practices through
regulations such as MEES.
 Skills Development - Labour plans to address the construction sector’s skill
shortages through youth training initiatives and improved working conditions, such as
banning zero-hour contracts. This could create a more skilled and stable workforce
but will require significant investment to meet labour demands.

What impact will the 2024 US Election results have on the Property & Construction
Industries?

 Currency fluctuations - The value of the US dollar often fluctuates sharply during and
after an election. These shifts directly affect the exchange rate between the dollar
and the pound, which in turn impacts the attractiveness of UK property to overseas
investors. A weaker pound against the dollar could mean heightened interest from
the US and other international buyers, particularly in prime markets like London
driving higher property prices.
 Impact on Interest Rates - The US election influences the Federal Reserve’s
economic policies, which in turn affect global financial markets. Changes in US
monetary policy could lead to adjustments by the Bank of England. For UK property,
interest rates are crucial as a rise could dampen demand by making mortgages more
expensive. Conversely, if rates stay low, the market could remain buoyant, with
borrowing costs staying affordable for longer.
 Supply Chains and Construction - Changes in US trade policy or tariffs could ripple
through the global economy affecting the cost of materials like steel and timber.
Higher costs for builders could slow the pace of new developments or push prices
higher for buyers in England.
 Tech Development & Remote Working - If the election results encourage further
growth in the tech sector & remote working, it could bolster demand for homes in
 England’s regional cities, which have become increasingly popular with remote
workers seeking affordability and a better work-life balance.

What is your Economic Outlook for the 2025 UK Property Market?

The UK property market in 2024 has been dampened by high interest rates which aim to
combat rising inflation. The Bank of England looks set to maintain relatively high interest
rates in comparison to previous low levels which is still impacting buyer affordability. This
increased cost of borrowing has also resulted in large scale developments being postponed
due to interest rate rises affecting their viability. For 2025 I am cautiously optimistic that
further interest rate cuts may be achievable due to falling inflation, this in turn should result in
increased market confidence with a backlog of postponed developments and transactions
taking place.

What is your Economic Outlook for the 2025 UK Construction sector?

The UK construction industry experienced a slowdown in 2024 due to rising material and
labour costs with high inflation and interest rates keeping prices high. Due to falling inflation
and small interest rate cuts towards the back end of 2024, material prices such as steel,
chipboard and plastic piping are now softening. These market shifts should result in material
price reductions entering into 2025 and create increased affordability for developments that
may have been postponed due to them previously being unviable. A further key challenge
remains a persistent skills shortage which is exacerbated by Brexit's impact on labour supply
and a high rate of workforce retirement. This shortage is pushing up costs, making it vital for
the industry to invest in apprenticeships and training programs. Environmental sustainability
remains a key priority for the labour government which will support a continued shift and
preference for sustainable building methods and products. These are typically more
expensive which will see a trade off between affordability and sustainability for larger scale
developers.

What impact is hybrid working and working from home having on the property
sector?

Working from home is having a significant impact on both residential and commercial
property. Many workers now prioritise homes that can accommodate home offices, leading
to increased demand for properties with extra space or adaptable layouts. Properties in
suburban and rural areas are also in increasing demand due to the flexibility of remote work.
Due to these regions providing larger living spaces at lower costs, property values in these
areas have risen. Within commercial real estate, remote work is also reshaping office space
requirements with many companies now downsizing their office footprints as hybrid work
models become further entrenched. Long lease terms of 20-25 years on commercial
properties are declining in popularity with shorter term lease arrangements offering greater
flexibility now being preferred. In the future I believe there will be a continued shift towards
shorter term, flexible office arrangements with adaptable office designs that support hot
desking and open plan team collaboration areas. Due to increasing building regulations and
environmental targets, offices in prime locations with sustainable credentials will remain in
high demand.
Please explain your understanding of Project Bank Accounts?

 A Project Bank Account (PBA) is a dedicated, ring-fenced bank account used in

construction projects to manage payments securely and transparently.
 It is designed to ensure that all parties involved in a project including subcontractors,
suppliers, and the main contractor receive payments directly and promptly from the
account, minimising the risk of late or non-payment.
 A PBA is set up at the start of a construction project, with agreements in place
between the employer, main contractor, and participating subcontractors on how
payments are made.
 The employer deposits funds into the PBA for work completed with payments then
made simultaneously to all parties listed in the PBA agreement based on pre-agreed
terms which bypasses the traditional hierarchical payment flows from Client to Main
Contractor down to supply chain level.

What steps would you take in the event of a Main Contractor insolvency?

 Ensure all contractual procedures related to insolvency are followed, especially

regarding termination rights and obligations.
 Make records on payments made, work progress and materials on site.
 If the contractor's insolvency means they can no longer fulfill their obligations, the
contract should be terminated following the specified procedures.
 The site should be secured to prevent further damage or unauthorised access if the
contract permits this. It may also be necessary to inform subcontractors to remove
materials or to secure their assets
 A chartered surveyor should prepare a detailed valuation statement reflecting the
current state of the project. This includes assessing completed works, retention
sums, and any outstanding claims, such as loss and expense.
 Engagement of alternative contractors may be required. If a new contractor is
appointed to complete the work, a new tender process or a novation of the original
contract may take place.
 If the contract includes provision for step-in rights through collateral warranties a
lender or developer may take over the project.
FIRE SAFETY

Please explain your understanding of the recent updates to RICS Professional

Indemnity Insurance Cover around Fire Safety?

 During 2019 fire safety insurance cover was removed from the professional
indemnity insurance market following the Grenfell Disaster.
 This followed an increase in insurance claims with insurers applying blanket fire
safety exclusions.
 Many surveying firms were unable to obtain fire safety cover leaving them exposed
on previously completed instructions and non protected for future work.
 During 2020/21 the RICS worked with insurers to restrict blanket fire safety
exclusions.
 The RICS agreed with insurers in May 2021 that fire safety exclusions could be used
however these would not apply to work on properties with four or fewer storeys
above ground level.
 This is contained in the agreement that all insurers sign if they want to participate in
the RICS insurance market.
 Cover for completion of EWS1 forms remains excluded from RICS' policy wording.
 There is limited protection for professionals completing EWS1 assessments on a
case-by-case basis at insurers' commercial discretion.

Following the Grenfell Disaster are you aware of any guidance the RICS has published
to support fire safety?

 I am aware that the RICS has published the Guidance note ‘Cladding for Surveyors
1st Edition March 2021’ to support surveyors working on Multi-storey and multi
occupancy residential buildings.
 The document aims to improve surveyors knowledge of external wall cladding
systems that may be considered within the External Wall Fire Review.
 Whilst the document is useful and provides illustrated examples of cladding systems,
I appreciate that fire safety is of great importance and ultimately falls outside my area
of expertise. If my clients do ask for advice on first safety I would always recommend
that they seek advice via a professional fire risk assessment.
What is ACM cladding?

 ACM standards for aluminum composite material

 It consists of two skins of aluminum bonded to either side of a lightweight core of
materials such as polyethylene or a mineral core aimed to provided insulating
properties.

What is the significance of ACM in relation to Grenfell?

 The ACM cladding in use was thought to contain combustible materials that
contributed towards the spread of fire across the external elevation of the building.
 As a result the UK government has now banned the use of combustible materials on
high rise homes from 29th November 2018.
 The ban means that combustible materials are not permitted on the external walls of
new buildings above 18m.
 Local authorities also need to undertake remediation works to replace dangerous
ACM cladding on existing buildings.

What is an EWS1?

 An EWS1 is an External Wall System Fire Review Certificate.

 They are applicable when a multi-storey residential property is either being bought,
sold or re-mortgaged.
 It is not a building safety certificate but a re-mortgaging valuation tool.
 The RICS and mortgage lenders jointly formed the EWS1 form as a way of mortgage
lenders assessing the external wall safety of buildings over 18m in height.

What is the New Fire Safety Act 2021?

 The First Safety Act was introduced in March 2020 and holds significant legal
obligations of organisations deemed to be responsible persons.
 It is introduced as an update to the Fire Safety order 2005.
 The main focus of the act is the amendment of the Fire Safety Order to clarify that it
will apply to the structure and external walls as well as anything attached to external
walls such as doors, windows and cladding.
 Under the previous regime it was unclear who was responsible for fire safety
compliance for these elements of the building.
  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 whilst introducing interim measures to
ensure the building can be occupied safely.

Please explain your understanding of the importance of Hart vs Large caselaw?

 This was a high court case relating to a dispute between the purchasers, Mr & Mrs
Hart, and their surveyor, Mr Large.
 Large had carried out a Level 2 Home Buyer Report on a property based in Devon.
 Mr & Mrs Hart experienced problems with damp and water ingress resulting in a
claim against Large.
 The court ruled that Large was negligent as he:
 Failed to identify the issues relating to damp.
 Failed to advise the purchaser to obtain a Professional Consultants Certificate.
 Failed to recommend further investigations were undertaken regarding the condition
of the property.
 This case is important for surveyors as it highlights the need to:
 Report on any building elements that have not been inspected, including an
explanation as to why this is the case.
 Recommend further investigations are carried out if the surveyor has a suspicion that
a visible defect may affect other concealed building elements. -"Where there is a trail
of suspicion, a surveyor must take reasonable steps to follow that trail, which may
include recommending further investigations.
 The need to strongly recommend that a Professional Consultants Certificate should
be obtained prior to purchase on recently refurbished properties to protect the
property purchaser from concealed defects.
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