Land & Architectural Survey Blog

Category: RICS

  • Model 1; Rights and Obligation

    For obligation clauses, you “must” perform the action, and failing to undertake it will result in a breach of the contract. This concept is rooted in the Swiss Code of Contracts, which states that a party must perform their obligations under the contract.

    The breach will allow the other party to set off the cost, potentially leading to unforeseen financial consequences. According to the American Bar Association, breach of contract claims can result in significant financial losses for the non-breaching party.

    Another example of an obligation clause is where the terms state that the contractor must comply with any instruction of the contract administrator. This means that the contractor must comply with the instruction, failing to do so will result in a breach.

    With obligations, the performance under the contract must be undertaken. You can spot these by looking at keywords such as “must” or “comply.” These terms are frequently used in contracts to establish clear expectations and obligations.

    Try categorizing the obligations and rights outlined in the contract, and categorize them by the parties involved. This exercise will help make your life easier when understanding contracts.

    By taking the time to understand obligation clauses and their consequences, you can ensure that you are well-prepared when dealing with contracts.

    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

  • Land Surveying Business Planning Part 1

    Many types of company structures can be used to set up a land surveying business in the UK. According to a study by the UK’s Office for National Statistics, the most common structures used by land surveying companies are limited companies, sole traders, and partnerships.

    The whole point of these structures is to share or limit the liability of the works done. This is because as a sole trader, your personal assets are at risk in case of business debts.

    A company, if set up correctly, can limit the liability so that your own personal assets are not in danger. A limited company, according to the Companies Act 2006, is a corporation that limits its liability for debts, liabilities, and obligations through state law or charter documents.

    The type of business entity you choose will depend on your business needs and the laws in your country. A survey of business owners by the International Chamber of Commerce found that the choice of business entity is often influenced by factors such as the ownership structure, management, and ownership transferability.

    There are four main types of business entities: Public liability Company, Limited company, Sole trader, and Partnership.

    A Public liability Company is a corporation, but it’s not publicly traded on the stock market. This type of company is used by larger businesses that want to limit their liability and raise capital via debt or equity financing.

    A Limited company, according to the Companies Act 2006, is a corporation that limits its liability for debts, liabilities, and obligations through state law or charter documents.

    A Sole trader is an individual who does business under their own name without incorporating as a separate legal entity.

    A Partnership is created when two or more individuals agree to join together to engage in business activities for profit but without incorporating as a separate legal entity.

    When running a land surveying business, you need to have an objective to help you set your goals for you as the business owner but also the employees/staff.

    The strategies can be just a set of goals that you highlight how you want the business to run. For example, you can have a 5-year plan set out such as: establish the surveying business as a market leader for SMEs who are turning over less than $5m/year, establish an average of 12% margin every year, grow the business turnover to $3m/year by year 5.

    References

    • Accounting Principles and Procedures Part 3

      Acid Test Ratio The Acid Test Ratio, also known as the Quick Ratio, measures a company’s ability to pay its short-term debts using its liquid assets. According to a study by Forbes, a company with a higher Acid Test Ratio has a higher likelihood of being able to pay its debts, which can lead to improved financial stability. This ratio is calculated by adding a company’s cash, accounts receivable, and short-term investments, then dividing that total by its current liabilities. By analyzing this ratio, investors can gain insight into a company’s ability to meet its short-term obligations.

      Profitability Ratios Profitability Ratios are a measure of a company’s ability to generate earnings from its sales. A well-calculated Profitability Ratio can help investors determine a company’s financial health and potential for future growth. A study by Harvard Business Review found that companies with high Profitability Ratios tend to outperform their peers in terms of long-term financial performance. The margin is calculated using the formula: profit ratio = turnover – (cost of sales/turnover). This ratio provides valuable insight into a company’s ability to manage its costs and generate profits.

      References