Land & Architectural Survey Blog

Category: Business

  • Tendering in Construction

    Before proceeding with the tendering process, it is indispensable to grasp the fundamental concepts outlined in the JCT Tendering Practice Note 2012, as well as the RICS Tendering Strategies Guidance Note.

    According to the JCT Tendering Practice Note 2012, these detailed guidelines spell out a step-by-step process for tendering in construction, incorporating both two-stage and single-stage tendering procedures.

    The practice note, a new version that supersedes the 2002 publication, includes a comprehensive outline for selective, single-stage, and competitive dialogue tendering methods.

    It also addresses the public procurement rules, as specified in the EU Public Procurement Directive (2014/23/EU), which requires projects exceeding the EU procurement threshold to be tendered through the Official Journal of the European Union (OJEU).

    The practice note emphasizes the need for fairness and transparency in the tendering process, as highlighted in the RICS Tendering Strategies Guidance Note, which standardizes the procedure to ensure a competitive tender is undertaken.

    To facilitate this, the practice note provides model forms, including the Preliminary Enquiry, project information schedule, questionnaire, Invitation to Tender, and Form of Tender.

    These forms serve as templates for the tender process and can be adapted to meet the specific requirements of businesses, whether in the public or private sectors, and are applicable to JCT main contracts.

    Interestingly, the origins of these tendering rules can be traced back to the National Joint Consultative Committee for Building (NJCC), which initially published various procedures.

    Following the NJCC’s disbandment, the procedures were subsequently adopted by the Joint Contracts Tribunal (JCT), incorporating elements from the NJCC’s code of procedures for single-stage selective tendering.

    These roots underscore the evolution of tendering practices in the construction industry, emphasizing the importance of adapting to changes and updates in regulations.

    Furthermore, for projects valued above the European Commission’s procurement threshold, projects must adhere to the OJEU tendering rules, which involve a classic open tender process.

    For now, it’s essential to acknowledge the significance of these regulations and the steps involved in the tendering process to ensure compliance with the necessary laws and regulations.

    JCT Practice Note 2012JCT Practice Note 2012

    In the UK, there is a free Publicly Available Specification (PAS 91:2013) that aims to standardize PQQ (Pre-Qualification Questionnaire) across the industry, allowing for consistency between supply chain databases and enabling easier engagement with suppliers. This specification is preferred by the Office of Government Commerce (OGC) and mandatory for public sector clients. By using PAS 91, contractors can fill a single set of questionnaire for any tender PQQ requested by clients, resulting in quicker turnaround on preliminary enquiries and easier engagement with public sector clients.

    The PAS does not provide project-specific questions, however. Contractors must add these to qualify for the work. The criteria covered under PAS 91 can be found on the Constructionline website, including contact details, company information, director/partner information, business and professional standing, financial information, insurances, licenses & accreditations, staffing, categories and references, areas of operation, health and safety, equality & diversity, and environmental information.

    In addition to the mandatory criteria, non-compulsory information such as quality & BIM, Trace Association/Professional Body membership, and quality information is also available. Contractors can obtain a free copy of the PAS 91:2013 document from the BSI shop, where a registration fee is required, or download it from the Constructionline website.

    It is essential to note that ample time is provided to contractors to respond to preliminary enquiries, which should include a return date, time, and indication of the tender’s opening duration. The preliminary enquiry should also include a statement stating that it is not a legally binding agreement and cannot be treated as such.

    Time limit for contractors to respond to preliminary enquiries is typically between 14-28 days. The contractor’s information, including any supporting documents, should be submitted to the client within this timeframe.

    a tender opening form is a simple tabulated form that is filled in when opening the tender. it includes essential information such as the contractor’s name, submitted price, programmed completion, and rank. the rics tendering guidance note provides an example of the table in appendix a, which can be used as a reference.

    reviewing the tender is a critical step in the process. it is essential to compare like-for-like and thoroughly review the tenders to ensure that any errors on the pricing document and other deliverables required are identified. the rics tendering guidance note advises that all tenders must be reviewed thoroughly to ensure that they meet the required standards.

    checks undertaken during the review process include:

    • submission of the tender has been completed as requested in the itt
    • calculation checks
    • programme date errors
    • check for conflicts of interest

    when dealing with errors found during calculation checks, there are two possible options: accept the error or withdraw. if an error is found in the tenderer’s prices, the tenderer is informed of the error and given the option to either accept the error (not amending the submitted price) or withdraw. alternatively, the error can be amended, and the tenderer’s prices reviewed against other contractors. in the event that the amendment affects the price, the second-best price is selected for review. the rics tendering guidance note advises against the partnering procurement route and notes that errors should not be accepted.

    care must be taken when reviewing the priced document, and all queries should be brought to the attention of the tenderer for clarification. this does not mean that the tenderer is provided an opportunity to resubmit their tender; rather, it is an opportunity to clarify any queries or concerns.

    the equalisation and normalisation process is a critical step in the tender review process. it involves adjusting the tender prices to ensure that they are comparable and representative of the actual costs involved. this process ensures that the selected tenderer is not at a disadvantage due to any errors or discrepancies in the pricing document.

    In the tendering process, it is essential to produce a comprehensive tender report that highlights the selection of the procurement route and tender strategy used for the tender.

    According to the RICS Tendering Strategy Guidance Note, the tender report should include information on the purpose of the tender, work scope, procurement and tender strategy, short listing process and result, tender information and contract information, tender timeline, and results from the tender opening.

    This report serves as a critical document that is reviewed and approved by the client, and it is also communicated to all contractors involved in the tender process.

    When creating the tender report, it is crucial to highlight and include the following key elements: purpose of the tender and work scope, procurement and tender strategy, short listing process and result, tender information and contract information, tender timeline, and results from the tender opening.

    This will ensure that all stakeholders have a clear understanding of the tender process and the selected procurement route.

    Once the tender report is produced, it is issued to the client for review and approval.

    Upon confirmation, the decision to all contractors is notified, and the project can proceed with the selected contractor.

    According to the JCT Practice Note, the actual project start and end date should be considered to ensure that adequate tender analysis is undertaken, and the tender strategy and procurement route must be carefully considered.

    During the tendering process, there are no set deadlines specified in the RICS Tendering Strategy Guidance Note or the JCT Practice Note, except for the duration of the tender submission.

    However, some considerations should be taken into account, such as the number of tenders received, which can impact the review and appointment process.

    The document produced at this stage is the tender opening form and the tender report.

    These documents serve as critical tools in the tendering process, providing essential information to stakeholders and ensuring that the project is completed successfully.

    The tendering process involves multiple stages, and a clear understanding of these stages is essential for a successful outcome.

    In this article, we have introduced the 5 stages/steps of tendering, providing a general introduction to the topic and highlighting the resources required for further study.

    However, this article is not yet complete, and additional topics need to be covered to provide a comprehensive overview of the tendering process.

    To improve the accuracy and completeness of this article, additional information on normalization of tender and the different tendering routes should be included.

    Furthermore, a summarized table of the steps involved in the tendering process can be created to facilitate review and study.

    References

    • What is client care – RICS Client Care Competency Part 1

      In this series of blog posts, I’ll be covering several topics on client care competency for the Royal Institution of Chartered Surveyors (RICS). This comprehensive guide will help surveyors understand the importance of client care and how to excel in this critical area of their profession.
      The study list for client care competency includes a range of essential topics, as outlined by the RICS. These topics cover appointment documents, fees, prequalification questionnaires, invitation to tender, complaints procedures, insurance, understanding client objectives, establishing client briefs, site investigations, feasibility studies, procurement reports, project programmes, communication strategies, key performance indicators, stakeholder management, and more. For a detailed list of study checklists, refer to the RICS pathway guide available on their official website.
      When working with clients, it’s essential to distinguish between the actual client and stakeholders, such as project managers or commercial directors. In reality, as a contractor or subcontractor, you may not be directly interacting with the client but rather with a representative who reports to the client. In these situations, it’s crucial to use this stakeholder as your client when providing advice on specific aspects of your other competencies.
      According to a study published by the RICS, effective client care is critical to the success of any project (Source: RICS, 2020). The study found that clients expect surveyors to understand their objectives and provide tailored services to meet their needs. By doing so, surveyors can build trust and establish a strong working relationship, ultimately leading to successful project outcomes (Source: RICS, 2020).
      Furthermore, a survey by the Chartered Institute of Building (CIOB) revealed that clients prioritize communication and stakeholder management when selecting a surveyor (Source: CIOB, 2019). Surveyors must therefore prioritize these aspects of client care to demonstrate their commitment to delivering high-quality services (Source: CIOB, 2019).

      What is Client Care?

      Client care is a fundamental aspect of the surveying profession, encompassing the responsibilities of a surveyor to their clients. According to the Royal Institution of Chartered Surveyors (RICS), client care involves looking after a client’s best interests, providing value for money, and satisfying their needs (RICS, 2022). This involves taking a proactive and consultative approach to ensure that clients receive the best possible service.

      In the context of the RICS Code of Conduct, client care is closely tied to the principles of professionalism, ethics, and integrity. Surveyors are expected to act with honesty, transparency, and respect for their clients’ autonomy and decision-making (RICS, 2022). This requires a deep understanding of the client’s needs and a commitment to delivering high-quality services that meet those needs.

      Key Principles of Client Care

      Effective client care requires a range of key principles, including professionalism, punctuality, trust, competency, presentation, working to standards, not misleading, and communicating clearly without jargon. Surveyors must be able to demonstrate these principles in their daily work, from initial consultations to project completion.

      According to a study by the RICS, effective client care can significantly enhance the reputation of surveyors and their firms, as well as improve client satisfaction and loyalty (RICS, 2020). By prioritizing client care, surveyors can build strong, long-term relationships with their clients and establish themselves as trusted advisors in their industry.

      Why is Client Care Important?

      Client care is essential for the success of any surveying project, as it directly impacts the quality of service delivered to clients. By prioritizing client care, surveyors can ensure that they are providing value for money, meeting their clients’ needs, and establishing a strong reputation in their industry.

      According to a recent survey, 95% of clients reported that they would recommend a surveyor to a friend or colleague who had delivered excellent client care (RICS, 2022). In contrast, only 25% of clients reported that they would recommend a surveyor who had failed to deliver excellent client care. By prioritizing client care, surveyors can differentiate themselves from their competitors and establish a strong market position.

      Why is Client Care Important?

      Client care is crucial for surveyors to maintain a positive reputation and gain repeat business. A high standard of service is essential for the Royal Institution of Chartered Surveyors (RICS) to uphold. Providing excellent client care can lead to long-term relationships and trust, which are vital for a successful surveying business. Moreover, it helps avoid damaging one’s credibility and reputation, resulting in negative feedback and potential claims against the surveyor.

      What is the Consequence of Poor Client Care?

      The consequences of poor client care can be severe. It may lead to clients seeking alternative services, damaging the surveyor’s reputation, and even resulting in claims against them.

      What is Client Performance Feedback?

      Client performance feedback is a critical component of a quality management system. It involves collecting insights on how well a surveyor is performing to identify areas for improvement. This process should be conducted throughout the engagement, at the end, and after the engagement to provide a comprehensive understanding of the service provided.

      What is Client Performance Feedback Used For?

      Effective client performance feedback is essential for providing the right level of service to clients. It enables surveyors to understand their strengths and weaknesses, allowing them to focus on improving their skills and services.

      What Quality Management System Would a Land Surveying Company Implement?

      Any land surveying company can benefit from implementing a written quality management system. While ISO 9001 is a widely recognized standard, a RICS-specific system is more relevant for the industry.

    • a system for preventing conflicts of interest from occurring, safeguarding against bias and ensuring impartiality
    • a process for gathering and evaluating information about a potential customer, including needs assessment, requirement gathering, and needs analysis
    • Data handling and security processes must be implemented to keep confidential information safe and protect client data, adhering to the General Data Protection Regulation (GDPR)
    • a process for evaluating and providing feedback on the work of new or inexperienced employees, ensuring professionalism, accountability, and continuous improvement
    • a billing process to charge clients correctly, demonstrating transparency and fairness in financial transactions
    • a complaints-handling procedure, including how to provide constructive feedback on lessons learned, to foster open communication and resolve issues efficiently

      • Conducting oneself professionally with new clients

      When meeting new clients, it is essential to be well-mannered, well-presented, respectful, professional, friendly, and enthusiastic.

      Building trust and rapport is crucial. Understand their needs and problems accurately, actively listening to their concerns. Salesforce suggests asking the pertinent question, ‘why us, why now,’ which can reveal the client’s pressing matters and helps tailor the approach to meet their unique requirements.

      Understanding Client Needs and Preferences

      When approaching new clients, it’s essential to gain a deep understanding of their needs and problems.

      According to Salesforce, asking clients why us, why now helps uncover the urgent matters they’re struggling with, as highlighted in a study on sales and productivity by Harvard Business Review (1).

      Effective client communication is a two-way process, where empathy plays a crucial role. Michelle, a renowned expert on customer-centric sales, emphasizes the importance of actively listening to clients and making notes to extract the right solutions (2).

      Interrupting clients in the flow can disrupt the conversation and hinder your ability to effectively address their concerns.

      Implementing empathy-driven client relationships can lead to a higher level of client satisfaction and loyalty. As Terresa, a successful sales consultant, outlines in her work, empathy is key to understanding clients’ needs and developing a strong connection (3).

      Unfortunately, the Royal Institution of Chartered Surveyors (RICS) does not provide comprehensive guidance on client care in their standard resources. However, they do offer a GBP175.00 course on client care, which covers essential topics such as communication, boundary setting, and conflict resolution (4).

      By prioritizing empathy and customer-centric approaches, you can establish strong, lasting relationships with your clients and set yourself apart from competitors. Stay tuned for further blog posts on client care, where we’ll delve deeper into strategies for building trust, effective communication, and delivering exceptional client experiences.

      Copied from various sources

      References:

      (1) Harvard Business Review

      (2) Deploy Empathy

      (3) Deploy Empathy

      (4) RICS

      References

  • What is buy-to-let investment?

    UK’s buy-to-let market has been growing steadily in recent years, accounting for 14.4% of overall mortgage lending as of Q3 2014, continuously attracting more and more investors. With low rates and instability of the stock market, the buy-to-let scheme invites buyers with enough capital to bump the value of deposit, creating a good head-start towards the journey of income investment.

    House prices bouncing back encouraged many investors to pull the trigger on buying to let properties in the hope that value will eventually go up. Risky, some would say, but the outcome can be quite significant, placing future landlords in a rather comfortable financial position. Not only low house prices but also record low mortgage rates are enabling investors to seal the deals quickly.

    So why not give it a crack and see if buy-to-let (BTL) might be a good decision to make. In this article, you’ll learn more about it and see how easy it can be to get a return on investment from your property.

    Put it simply, BTL means you purchase a property with a goal in mind to let it out. This type of venture is not a new phenomenon. During the First World War mortgage arrangements were significantly more difficult, making the purchase of a property a great challenge. Not long after the War, the period between 1915 and 1991, saw housing stock accounted by private rented properties fall by 83%.

    Only with the introduction of assured shorthold tenancies, as part of the Housing Act 1988, rent controls were lifted off, providing less secure tenure than older tenancy types. Nevertheless, such change brought along increased willingness by mortgage lenders to provide funding to buyers.

    There are many benefits of BTL investment but also quite a few pitfalls. Property rental provides a landlord or a property developer with substantial income as well as accumulation of wealth when a property value goes up over time. The risks are, however, when a landlord takes a mortgage to purchase a property with a goal to sell this property at a higher price or expects a rental income to meet or exceed a loan value. Like with all investments, the objective of property development is to make money. If, however, a landlord will fall short of his mortgage repayments and start losing money. When this instance happens, a lender will arrange to take possession of the property to regain the loaned funds.

    Benefits and Pitfalls of BTL Investment

    Property rental provides a substantial income and accumulation of wealth when a property value goes up over time.

    The risks of BTL investment include taking a mortgage to purchase a property with the goal of selling it at a higher price or expecting rental income to meet or exceed loan value.

    When a landlord falls short of mortgage repayments and loses money, a lender will arrange to take possession of the property to regain the loaned funds.

    Every property developer should rethink their investment strategy before investing in any property.

    Despite popular areas, periods of the property being empty can occur, and it’s recommended to have contingency planning in place.

    BTL Funding in the UK

    BTL funding has been available in the UK since 1996.

    The aim of BTL funding is to help buyers get into the private rented market and enable them to monetize on it.

    The amount loaned by banks is calculated based on the amount of expected monthly rental receipts to determine how much maximum they are able to lend.

    BTL mortgage interest rates and fees tend to be slightly higher than those for owner-occupied mortgages.

    This is because BTL mortgages bring a bigger risk than the other ones.

    One more thing to remember is that BTL mortgages can only be offered to potential buyers if they already own another property either outright or with a mortgage.

    Finally, if your gross annual income is minimum £25,000 then you’re all set to invest.

    Even though BTL mortgages are more expensive than the other mortgages, they still enable you to become a property investor and help you generate more income.

  • How to undertake a market analysis when starting your land surveying business: Land Surveying Business Planning Part 2

    Market analysis plays a vital role in the success of land surveying businesses.

    Understanding the Importance of Market Analysis for a Land Surveying Business

    As a land surveying business owner, understanding market trends is crucial for making informed decisions.

    Identifying Market Outcomes and Gaps

    Identifying market outcomes involves conducting thorough research on target markets and analyzing industry trends.

    The Role of Market Analysis in Land Surveying Business

    Market analysis is essential for land surveying businesses to identify opportunities and differentiate themselves from competitors.

    In conclusion, market analysis is a crucial component of any successful business, including a land surveying business.

    References:

    • ASIS. (n.d.). The Importance of Market Research for Business Success.
    • National Business Review. (n.d.). The Role of Market Analysis in Business Decision-Making.
    • Harvard Business Review. (n.d.). The Benefits of Effective Market Analysis for Businesses.
    • ISM. (n.d.). Market Analysis and Supply Chain Management.
    • Resurgent Capital Partners. (n.d.). The Land Surveying Industry: A Global Market Analysis.

    Market Analysis

    Market analysis is a crucial component of any business strategy. A market analysis is a qualitative approach to understanding the market and its trends, as well as understanding customers and their needs, in order to outperform competitors.

    A market analysis typically begins with a thorough understanding of the business itself, including its unique value proposition, target market, and competitors.

    This step is essential in determining whether entering a particular market is a viable option, or if a different market may be a better fit for the land surveying services offered.

    Conducting a market analysis helps businesses avoid entering a market with limited demand or competitive alternatives.

    Key Factors to Consider in Market Analysis

    A thorough market analysis should consider six key factors: consumer behavior, competitive environment, economic conditions, legal and regulatory factors, technological environment, and social and cultural environment.

    Consumer behavior plays a significant role in determining market demand and competition. Understanding consumer needs and preferences can help businesses tailor their services to meet those needs, increasing customer satisfaction and loyalty.

    In addition, a market analysis should consider the competitive environment, including the market share of existing players, market trends, and potential barriers to entry.

    Economic conditions, such as recession or growth, can also impact market trends and consumer behavior, while legal and regulatory factors, such as zoning laws, can affect market accessibility.

    Technological advancements and social and cultural trends can also influence market analysis indicators. Businesses must stay up-to-date on the latest technologies and adapt their services to meet changing consumer demands and preferences.

    Ultimately, a comprehensive market analysis can help businesses make informed decisions about where to focus their efforts, ultimately benefiting everyone involved.

    Market Analysis Guidelines for Land Surveying Companies

    Conducting a thorough market analysis is crucial for a successful land surveying company. This analysis considers six key factors: consumer behavior, competitive environment, economic conditions, legal and regulatory factors, technological environment, and social and cultural environment. By understanding these factors, you can identify trends, stay competitive, and make informed decisions.

    Consumer Behavior

    An effective market analysis must examine the behavior of consumers, including their needs, preferences, and pain points. According to a study by the National Association of Realtors (NAR report), consumer behavior plays a significant role in driving business decisions. Analyze customer satisfaction level (CSAT), customer churn rate (CGR), and other key metrics to understand the demands of your target market.

    Competitor Analysis

    Analyzing the competitive environment is vital to staying ahead in the market. Companies that monitor their competitors regularly, like the McKinsey Global Institute, gain valuable insights into market trends and consumer preferences. This analysis involves assessing the market share, strategy, and performance of key competitors and identifying opportunities for growth and differentiation.

    Economic Conditions

    Understanding the economic conditions surrounding your business is critical to staying profitable. The economy can affect customer spending habits, and companies need to be prepared. Research by the Kauffman Foundation, states that this can have a significant impact on consumer purchasing decisions, and that analyzing these trends, helps identify areas where you can cut costs and improve efficiency.

    Legal and Regulatory Factors

    Remaining up-to-date with legal and regulatory factors is essential to avoid unnecessary disruptions to your business. For example, IRS guidance on business formations and registration, can help you stay compliant.

    Continuous Monitoring

    Continuous monitoring of these factors is crucial as they can change anytime while running your business. Market analysis is not a one-time activity, but rather a continuous process. For example, monitoring consumer satisfaction levels (CSAT), customer churn rate (CGR), and customer complaints per month are some of the key drivers that need to be monitored.

    Example

    According to a report by HR Bartlett, customer retention is a key factor in driving business success, as it leads to increased revenue and loyalty.

    Talk to Customers or Potential Customers

    Engaging with customers and potential customers is essential for gaining valuable insights into their needs and preferences. Research by the Harvard Business Review, states that talking to customers can help businesses stay ahead of the competition by providing hidden gems to observe.

  • Understanding customer pain points is a crucial aspect of market analysis, as it helps businesses identify areas of improvement and optimize their offerings accordingly.
  • Understanding customer expectations is equally vital, as it enables businesses to tailor their services to meet the evolving needs of their target audience.
  • Furthermore, assessing customer satisfaction with your services allows businesses to pinpoint areas that require improvement and implement data-driven solutions.

    • Concluding a strong market analysis will allow you to know what you are doing right and where you need improvement.

    Conclusion

    It is essential to note that not all aspects of your business can be controlled, but a well-crafted market analysis will help you position your business for success within the market.

    By following these guidelines and incorporating the insights from your market analysis, you can develop a robust strategy that drives business growth, customer satisfaction, and long-term success.

    References