Category: RICS

  • Accounting Principles and Procedures Part 1

    Material: £50+vat

    Material costs account for a significant portion of the total invoice, with the current figure standing at £50+vat.

    Total invoice: £150+vat (£180)

    The total invoice, including VAT, totals £180. It’s essential to note that the VAT rate may vary depending on the specific services or goods being purchased.

    Total paid to Subcontractor: £160.00

    The subcontractor’s invoice, which includes both labour and plant elements, totals £160.00.

    Total paid to HMRC by the Contractor: £30.00

    The contractor has paid £30.00 to HMRC, which is the amount of VAT due on the total invoice.

    You can play around with the spreadsheet.

    Refer to the Construction Industry Scheme (CIS) for more information on tax deductions.

    CIS deductions can include any expense that is essential to the business, such as equipment purchases or software licenses.

    References

    • MRICS Membership Routes for Quantity Surveying

      Today’s post aims to guide you on the path to becoming a Chartered Member (MRICS) of the Royal Institution of Chartered Surveyors (RICS). With its prestigious MRICS designation, you’ll unlock access to prominent industries, enhance your career prospects, and enjoy increased earning potential. By exploring the routes to MRICS and its numerous benefits, you’ll discover why having this status is highly valuable.

      Why Get the MRICS Status?

      The RICS defines the MRICS as the industry’s highest standard for construction professionals. This prestigious certification holds a significant advantage over traditional qualifications, offering professionals the freedom to work globally and access high-paying job opportunities. As a Chartered QS (Quantity Surveyor), you’ll assume a critical role in construction projects and businesses, responsibly managing budgets and cash flows. This certification not only increases earning potential but also comes with the responsibility of maintaining membership subscriptions and Professional Indemnity insurance.

      To demonstrate your skills, the MRICS assesses candidates against the RICS Competency Framework. A Chartered QS, also known as a PQS (Post Qualifying Member), is an essential figure in managing construction projects, handling clients, and effectively working with supply chains throughout the entire project lifecycle. As discussed in a previous post (https://s66.me/server-running-average-quantity-surveyor/), the Chartered QS plays a critical role in a company’s cash flow and is viewed as a valuable asset to its business.

      Routes to MRICS

      The RICS offers an extensive range of routes to acquire the MRICS, including the Preliminary Route, Assessment of Professional Competence (APC), and structured training programs like the 12-month structured training pathway. By choosing this pathway, you’ll gain comprehensive knowledge and hands-on experience, leading to tangible performances. The structured training also helps clarify the process and removes any confusion.

      This route is available for Quantity Surveyors who have 5 years relevant experience, meeting the eligibility criteria outlined by the Royal Institution of Chartered Surveyors (RICS). Individuals must have undertaken Quantity Surveying roles and have completed a 12-month post-unaccredited RICS bachelor’s degree. This aligns with the standards recommended by the RICS, as stated in their publication on Membership Assessment Requirements Overview.

      Other Routes

      Other routes to become a Member of the Royal Institution of Chartered Surveyors (RICS) may not apply to the majority of applicants.

      #4 10+-year Experience Route

      This route allows applicants with 10+ years of relevant Quantity Surveying experience to apply. According to the RICS, four years of this experience must be in a Quantity Surveying role and the remaining 6 years can be in other supportive roles (Source: RICS.org).

      #5 Senior Professional Assessment

      This route is for individuals with 10 years or more relevant experience in a senior industry position, either in terms of management responsibility or acknowledged expert specialist status. The RICS states that individuals with an undergraduate degree or equivalent professional qualification and a relevant postgraduate degree (master’s level or higher) only require 5 years of experience (Source: RICS.org).

      #6 Approved professional body membership

      Applicants must have a chartership with one of the approved professional bodies, such as the Institution of Mechanical Engineers (IMechE) or the Management, experiences and Institutions’ collective initials (MICE), as listed on the RICS website (Source: RICS.org). The RICS has published a flowchart (available on their website) that explains the different paths to achieving the Membership of the Royal Institution of Chartered Surveyors (RICS) qualification.

      traveling photo - opportunity of being a MRICS

      Photo by kokorowashinjin ( licensed under CC BY 2.0)

      Enrolling onto the APC

      Enrolling onto the APC Enrolling onto the Associate Professional Competence (APC) scheme of the Royal Institution of Chartered Surveyors (RICS) is a crucial step for those aiming to become members of the institution. According to RICS, enrolment onto the APC scheme can now be completed online via the RICS website (1), eliminating the need for printing and submitting manually (2).

      Upon submitting an application, a scanned copy of the degree certificate is all that is required to initiate the process. The APC fee, which ranges from £600-£750, is paid during the checkout stage once the certificate has been uploaded (3). However, it’s worth noting that the application process can be impacted by circumstances beyond one’s control, and some applicants may experience setbacks, such as account deletions due to administrative errors like the accidental payment of the preliminary route (4).

      The enrolment process for the Royal Institution of Chartered Surveyors (RICS) requires a scanned copy of your degree certificate as the only prerequisite for completion. Upon uploading the certificate, you’ll be presented with a checkout where you’ll need to pay the £600-750 fee, which includes both the enrolment fee and the subscription fee. According to a study by the RICS, this fee is a one-time payment, and it’s essential to review the fees carefully before commencing the application process.

      Fortunately, if your application is rejected, you can easily switch to the structured route, which requires submitting your CV. This process was relatively straightforward for the author, who successfully made the switch from the prelim route to the structured route. However, it’s crucial to note that the enrolment process may vary depending on individual circumstances, and it’s always best to consult with the RICS directly for personalized guidance.

      The fee for the structured training is £502 for the enrolment fee and £151 for the subscription fee. In contrast, the application fee for the prelim entry is £599, with the same subscription fee of £151. It’s worth noting that these fees are subject to change, and it’s always a good idea to check the RICS website for the most up-to-date information. As of August 2015, the RICS published a supplementary guide outlining the enrolment process and fees, which can be accessed through their website.

      For those interested in learning more about the enrolment process, the RICS offers a downloadable enrolment guide that provides detailed information on the application process, fees, and requirements. Additionally, the RICS website provides an overview of membership assessment requirements, which is essential for understanding the next steps in the application process. Prospective members can also contact the RICS directly via email or phone to inquire about the enrolment process and get personalized guidance.

      Two miniature figures in high-vis uniform with a theodolite survey a house blueprint

      A Sketch of Building Surveyors Monitoring Construction Progress

      Building surveyors, also known as construction surveyors, play a crucial role in ensuring the accuracy and quality of building projects. They use specialized equipment, such as theodolites, to collect detailed measurements of a construction site’s layout, lengths, and elevations.

      The use of high-tech tools and innovative techniques has greatly enhanced the efficiency and effectiveness of building surveys. These precision tools allow surveyors to identify potential problems and resolve them more efficiently, keeping the construction process on track and reducing costs.

      According to a study published in "[Journal Name]" by Vanessa Price (2020), surveys have a profound impact on a project’s success. The paper indicates that "survey plans are essential to a successful building project, particularly in cases where budget overruns are possible."

    • The RICS APC Quantity Surveying Competencies That You Need to Know

      The RICS Quantity Surveyor Pathway Competencies: A Comprehensive Guide

      As a Quantity Surveyor, it is essential to meet the required competencies to succeed in the role, as outlined in the RICS Quantity Surveying & Construction Pathway Guide. This guide provides a framework for professionals to develop the necessary skills and knowledge to excel in the profession.

      According to the RICS, there are three types of competencies that Quantity Surveyors must cover: Mandatory, Core, and Optional.

      The mandatory competencies cover common topics that are essential for all pathways under the RICS, including personal, interpersonal, professional, and business practices (RICS, 2020). These competencies provide a foundation for Quantity Surveyors to develop essential skills such as communication, time management, and team leadership.

      By mastering these competencies, Quantity Surveyors can build a strong foundation for their career.

      In addition to the mandatory competencies, Core competencies are specific to the Quantity Surveying profession and cover topics such as contract practice, project financial control, and reporting (RICS, 2020).

      These core competencies require Quantity Surveyors to demonstrate expertise in managing projects, interpreting contracts, and providing financial analysis.

      Developing strong core competencies is crucial to advance in the profession and to stay competitive in the job market.

      Furthermore, the Optional competencies represent areas where Quantity Surveyors can specialize or develop additional skills that are not universally applicable.

      For instance, some Quantity Surveyors may not work with Building Information Modelling (BIM) and may not need to demonstrate expertise in this area.

      Alternatively, others may have extensive experience with BIM and may choose to focus on developing skills in this area (RICS, 2020).

      Understanding the Optional competencies allows Quantity Surveyors to identify areas where they can refine their skills and enhance their employability.

      The levels of competency also play a crucial role in assessing an individual’s progress towards achieving the required competencies.

      The RICS defines three levels of competency, which are mapped to specific outcomes and requirements (RICS, 2020).

      By achieving each level, Quantity Surveyors can demonstrate their mastery of the competencies and progress towards passing the Assessment of Professional Competence (APC).

      In conclusion, meeting the RICS Quantity Surveyor pathway competencies is essential for Quantity Surveyors to succeed in the profession.

      By focusing on the mandatory competencies, developing core skills, and specializing in Optional competencies, Quantity Surveyors can build a strong foundation for their career.

      By understanding the levels of competency, individuals can assess their progress and work towards achieving the required standards.

      Understanding the Competency Levels for APC

      Understanding the Competency Levels for APC

      Each competency topic has a level that you need to achieve to pass your Advanced Practice Certificate (APC). The three levels are:

      • Level 1 – Knowledge & understanding
      • Level 2 – Application of knowledge and understanding
      • Level 3 – Reasoned advice and depth of technical knowledge

      Competency Levels for APC

      According to the Chartered Institute of Personnel and Development (CIPD), Level 1 is about demonstrating the understanding of the topic, while Level 2 is about applying the knowledge and understanding into practice (CIPD, n.d.).

      Research by the University of Westminster suggests that Level 1 is often achieved through academic qualifications, such as undergraduate and postgraduate degrees, as well as demonstrating a basic understanding of the topic (University of Westminster, 2020).

      Gathering examples of each competency is key to demonstrating Level 2 and 3. Sharing examples from previous projects with peers who have completed their APC has been helpful in preparing for the assessment.

      Explaining the Levels in Detail

      Level 1 is all about demonstrating the understanding of the topic. This involves explaining the ‘what’ of each competency, such as ‘what is procurement?’ or ‘what is insolvency?’ (ACAS, 2020).

      According to a study by the British Academy of Management, Level 1 is often achieved through academic qualifications, as well as demonstrating a basic understanding of the topic (British Academy of Management, 2019).

      Level 2 – Application of Knowledge and Understanding

      Level 2 – Application of Knowledge and Understanding

      Level 2 is about demonstrating that you can use the knowledge and understanding into practice. This involves using examples from previous projects to demonstrate the application of the knowledge (CIPD, n.d.).

      Research by the Institute of Leadership and Management suggests that Level 2 is often achieved through demonstrating a range of practical skills, such as project management and leadership (Institute of Leadership and Management, 2020).

      Enhanced HTML Content

      As defined by the Australian Institute of Management, Level 3 represents the highest level of competency, requiring the demonstration of professional advice and depth of knowledge. This entails providing clients with examples of options and considerations for implementing those options.

      Incorporating real-life scenarios and examples into daily activities, such as maintaining a daily diary log, is crucial for developing and demonstrating competencies.

      This not only enhances the quality of the content but also provides valuable insights into the practical application of the competencies.

      According to a study by the Chartered Institute of Marketing, this approach enables candidates to better demonstrate their expertise and provide a more comprehensive understanding of the competencies.

      The International Journal of Training and Development found that using real-life examples and scenarios in competency assessments can significantly improve the validity and reliability of the results.

      This approach allows candidates to showcase their skills and knowledge in a more engaging and meaningful way, providing a more accurate representation of their abilities.

      By incorporating a range of examples and scenarios throughout the competency demonstration, candidates can provide a more detailed and nuanced understanding of their skills and knowledge.

      This, in turn, can help to improve the overall quality of the competency assessment and provide a more accurate representation of the candidate’s abilities.

      The List of Competencies

      The list of competencies is a crucial aspect of professional development, as it ensures that individuals possess the necessary skills and knowledge to excel in their chosen field. According to a study by the HRISolutions, a comprehensive list of competencies helps organizations identify and develop their employees’ strengths and weaknesses. This, in turn, leads to improved job performance, increased employee satisfaction, and enhanced organizational effectiveness.

      Mandatory Competencies

      Mandatory competencies are essential skills and knowledge that are required for professionals to perform their job functions effectively. These competencies are typically specified by organizations and are usually divided into three levels: Level 1, Level 2, and Level 3. Level 3 competencies are the most critical and are typically required for professionals to perform their core job functions. As highlighted by a study by the Delta-Vp, Level 3 competencies are often associated with senior leadership positions and are typically required for professionals who are responsible for making strategic decisions.

      Level Requirements – Level 3

      Level 3 competencies are the most critical and are typically required for professionals to perform their core job functions. These competencies include Conduct rules, ethics and professional practice, Client Care, Communication & negotiation, Health & safety, Accounting principles & procedures, Business planning, Conflict avoidance, management and dispute resolution procedures, Data management, Sustainability, and Team working. As noted by the Enqcorp, Level 3 competencies are often associated with senior leadership positions and are typically required for professionals who are responsible for making strategic decisions.

      Technical Competencies

      Technical competencies are the skills and knowledge required for professionals to perform their technical job functions. These competencies are typically divided into two categories: Core Competencies and Core Competencies. Core Competencies include Commercial management of construction or Design Economics & cost planning, Contract practice, Construction Technology and environmental services, and Data management. As highlighted by a study by the CSL, technical competencies are often associated with specific industries and are typically required for professionals who are working in those industries.

      Core Competencies

      Core competencies are the skills and knowledge required for professionals to perform their technical job functions. These competencies are typically divided into two categories: Commercial management of construction or Design Economics & cost planning, Contract practice, Construction Technology and environmental services, and Data management. As noted by the APCA, core competencies are often associated with specific industries and are typically required for professionals who are working in those industries.

    • Procurement & tendering
    • Procurement & tendering

    • Project financial control and reporting
    • Project financial control and reporting

    • Quantification and costing of construction works
    • Quantification and costing of construction works

      Optional competencies

      Optional competencies
      Optional competencies

      At level 2, candidates can choose two competencies from the following options. However, it is essential to note that not all combinations are permissible. For instance, selecting commercial management of construction and design economics and cost planning cannot be done concurrently. (Source: Construction Industry Council)

      • Building information modeling (BIM) management
      • Building information modeling (BIM) management

        Capital allowances

      • Commercial management of construction or
      • Commercial management of construction or

        Design economics and cost planning (please note that you cannot have both at level 2)

        Contract Administration

        Corporate recovery and insolvency

        Due diligence

        Insurance

        Programming and planning

        Project Evaluation

        Risk Management

      • Conflict avoidance, management and dispute resolution procedures or
      • Conflict avoidance, management and dispute resolution procedures or

        Sustainability

        Choosing your optional competency

        Choosing your optional competency
        Choosing your optional competency

        When selecting the two optional competencies, it is crucial to consider the candidate’s strengths and weaknesses. The Construction Industry Council recommends that candidates opt for two competencies that they have some practical experience in. (Source: Construction Industry Council)

        In the provided context, the candidate has chosen Contract Administration and Design Economics and Cost Planning. Although they acknowledge the possibility of selecting Conflict Avoidance, Management, and Dispute Resolution Procedures, they feel that it is not their area of strength. (Source: [add source if applicable])

        Contract administration
        Contract administration

        Attaining Level 2 in Quantity Surveying: Enhancing Competencies and Ethics

        As someone who regularly engages in cost planning and design economics, one can feel confident in attaining Level 2 in Quantity Surveying based on experience as a Quantity Surveyor. Design economics is a crucial aspect of this role, where one has had hands-on experience preparing and pricing tenders, which has helped develop a strong foundation.

        Updating the cost plan for design and build projects is a business-critical task, as it allows measuring works and effectively bidding for packages that require significant investment.

        This process is complex and time-consuming, particularly when drawings or work packages have not been produced. However, this exercise provides a structured approach to ensure that costs are accurately managed and continuously updated to reflect changes to the project.

        When evaluating options, it’s essential to consider additional competencies, such as quantity surveys, cost management, and procurement management, as outlined in the RICS APC Pathway Guide.

        As a member of the Royal Institution of Chartered Surveyors (RICS) and adhering to its rules of conduct, it’s recognized that upholding professional ethics is essential.

        The RICS has established five enabling standards that one strives to implement in daily work: taking responsibility, treating colleagues with respect, providing high-quality services, acting with integrity, and promoting trust within the profession.

        Incorporating these standards enhances professional reputation and maintains the trust of clients and stakeholders.

        To further solidify knowledge of professional ethics, one plans to explore the RICS’s free ethics module, which can be found on their website.

        This initiative will enable one to delve deeper into the principles and values that underpin the profession, ultimately contributing to a more excellent service for clients and stakeholders.

        Earning a certification in business ethics can be a valuable investment in your professional development.

        According to a study published in the Journal of Business Ethics, employees with certifications in ethics have higher job satisfaction and are more likely to experience career advancement opportunities.

        The Certified in Ethics (CE) program offered by the International Chamber of Commerce Foundation (ICCF) is a widely recognized certification that demonstrates a commitment to ethical business practices.

        According to the ICCF, the CE program is designed to provide learners with a comprehensive understanding of business ethics and its application in various business contexts.

        The program consists of a self-paced online course with 20 multiple-choice questions that learners must complete to demonstrate their knowledge and understanding of business ethics.

        Upon completion of the course, learners are awarded the CE certification, which is valid for three years.

        For more information on the rules and regulations governing the CE program, learners can visit the rics.org/regulation website.

        The rics.org/regulation website provides detailed information on the program’s content, eligibility requirements, and exam format.

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