Client Care - Part I

Client Care for RICS APC Candidates – Part I

1        Introduction

In the realm of construction and surveying, ensuring clear communication and mutual understanding between parties is paramount for successful project execution. Essential to this process are appointment documents, which serve as the foundational contracts outlining the scope, terms, and conditions of services rendered. These documents not only delineate the expectations and responsibilities of both surveyor and client but also serve as vital instruments in averting disputes and safeguarding interests in the face of potential complications or claims. The Royal Institution of Chartered Surveyors (RICS) offers comprehensive guidance on the requisite components of appointment documents, emphasizing the importance of written agreements that cover various facets including services, fees, duration, and dispute resolution mechanisms. Additionally, adherence to professional standards and ethical conduct is underscored, ensuring a fair and equitable framework for all involved parties. Let us delve into a detailed exploration of appointment documents, fees, prequalification questionnaires, invitation to tender processes, complaints procedures, insurance arrangements, understanding client objectives, and establishing client briefs, elucidating their significance in the construction and surveying landscape.

This blogpost covers in further detail the following titles:

• Appointment documents

• Fees

• Prequalification Questionnaires (PQQ)

• Invitation to Tender (ITT)

• Complaints procedures

• Insurance

• Understanding client objectives

• Establishing client’s brief

2        Appointment documents

Appointment documents are the contracts that define the scope, terms and conditions of the services that a surveyor provides to a client. They are essential for establishing a clear and mutual understanding of the expectations, responsibilities and obligations of both parties. They also help to avoid disputes and misunderstandings, and to protect the interests of the surveyor and the client in case of any problems or claims.

According to the RICS guidance note on Appointment documents (2019), surveyors should ensure that their appointment documents are in writing, and that they include the following information:

• The name and address of the surveyor and the client

• The nature and extent of the services to be provided

• The basis and method of calculating the fees and expenses

• The payment terms and conditions

• The duration and termination of the contract

• The dispute resolution procedures

• The professional indemnity insurance arrangements

• The intellectual property rights

• The confidentiality and data protection obligations

• The compliance with the RICS rules of conduct and ethical standards [1]

Surveyors should also ensure that they obtain the client's written acceptance of the appointment documents, and that they review and update them regularly to reflect any changes in the scope or circumstances of the services.

An example of a good practice in appointment documents is to use the RICS standard forms of appointment, such as the RICS Standard Form of Consultant's Appointment 2018, or the RICS Short Form of Consultant's Appointment 2018. These forms are designed to comply with the RICS guidance and the UK laws, and to provide a fair and balanced framework for the relationship between the surveyor and the client.

3        Fees

Fees are the charges that a surveyor makes to a client for the services that they provide. They are an important aspect of client care, as they reflect the value and quality of the services, and influence the client's satisfaction and loyalty. Surveyors should ensure that their fees are fair, reasonable and transparent, and that they are agreed with the client in advance, in accordance with the RICS guidance note on Fees (2019).

According to the RICS guidance note, surveyors should consider the following factors when setting and agreeing their fees:

• The scope and complexity of the services

• The level of skill and experience required

• The time and resources involved

• The market conditions and competition

• The risks and liabilities assumed

• The value and benefits delivered to the client

Surveyors should also ensure that they communicate their fees clearly and accurately to the client, and that they provide regular and detailed invoices and statements, in accordance with the RICS guidance note on Invoicing (2019). Surveyors should also monitor and review their fees regularly, and inform the client of any changes or variations, in accordance with the RICS guidance note on Variations (2019). [2], [3], [4]

An example of a good practice in fees is to use the RICS fee calculator, which is an online tool that helps surveyors to estimate and compare their fees based on different methods and scenarios. The fee calculator is available on the RICS website, and it can help surveyors to demonstrate their value and competitiveness to their clients.

4        Prequalification Questionnaires (PQQ)

Prequalification Questionnaires (PQQ) are the documents that a surveyor submits to a potential client, in order to demonstrate their suitability and capability to provide the services that the client requires. They are often used in the public sector, or in large and complex projects, where the client needs to select the most qualified and reliable surveyors from a large pool of applicants. They are also a way of ensuring that the surveyors meet the minimum standards of quality, health and safety, and environmental management.

According to the RICS guidance note on Prequalification Questionnaires (2019), surveyors should ensure that their PQQs are concise, relevant and tailored to the client's needs and expectations. They should also ensure that they provide accurate and verifiable information, and that they highlight their strengths and achievements. They should also ensure that they comply with the client's instructions and deadlines, and that they follow the best practice principles of the RICS. [5]

An example of a good practice in PQQs is to use the RICS standard PQQ template, which is a document that helps surveyors to prepare and present their PQQs in a consistent and professional manner. The template is available on the RICS website, and it covers the main aspects of the PQQ, such as the company profile, the experience and references, the technical and professional competence, the quality and risk management, and the social and environmental responsibility.

5        Invitation to Tender (ITT)

Invitation to Tender (ITT) is the document that a client sends to a surveyor, in order to invite them to submit a proposal for the services that the client requires. It is usually the next stage after the PQQ, where the client has shortlisted the most suitable surveyors, and wants to compare their offers and select the best one. It is also a way of ensuring that the surveyors understand the client's objectives and specifications, and that they can deliver the services within the budget and time frame.

According to the RICS guidance note on Invitation to Tender (2019), surveyors should ensure that they read and analyse the ITT carefully, and that they ask for any clarifications or amendments if needed. They should also ensure that they prepare and submit their proposals in accordance with the client's instructions and criteria, and that they provide clear and comprehensive information, such as the scope and methodology of the services, the team and resources, the fees and expenses, the risks and contingencies, and the terms and conditions. [6]

An example of a good practice in ITT is to use the RICS standard ITT template, which is a document that helps surveyors to structure and format their proposals in a consistent and professional manner. The template is available on the RICS website, and it covers the main aspects of the ITT, such as the executive summary, the project understanding, the approach and deliverables, the project management, the quality assurance, and the commercial offer.

6        Complaints procedures

Complaints procedures are the processes that a surveyor follows to handle and resolve any complaints that a client may have about the services that they provide. They are an essential part of client care, as they show the surveyor's commitment to quality and customer satisfaction, and they help to maintain and improve the reputation and trust of the surveyor and the RICS. They also help to prevent or minimise the escalation of disputes and claims, and to comply with the legal and regulatory obligations.

According to the RICS guidance note on Complaints handling (2019), surveyors should ensure that they have a written complaints procedure, and that they communicate it to their clients at the outset of the contract. They should also ensure that they deal with any complaints promptly, courteously and professionally, and that they follow the RICS rules of conduct and ethical standards. They should also ensure that they keep a record of all the complaints and their outcomes, and that they report any serious or unresolved complaints to the RICS. [7]

An example of a good practice in complaints procedures is to use the RICS complaints handling toolkit, which is a set of resources that helps surveyors to design and implement their complaints procedures in line with the RICS guidance and the UK laws. The toolkit is available on the RICS website, and it includes a complaints policy template, a complaints form template, a complaints log template, and a complaints resolution flowchart.

7        Insurance

Insurance is the protection that a surveyor obtains to cover the potential risks and liabilities that may arise from the services that they provide to a client. It is a vital aspect of client care, as it demonstrates the surveyor's professionalism and responsibility, and it provides a security and peace of mind to the surveyor and the client in case of any accidents, errors or claims. It also helps to comply with the legal and contractual obligations, and to meet the RICS requirements and standards.

According to the RICS guidance note on Insurance (2019), surveyors should ensure that they have adequate and appropriate insurance arrangements, and that they review and update them regularly to reflect any changes in the scope or circumstances of the services. They should also ensure that they disclose and explain their insurance arrangements to their clients, and that they obtain their consent and approval. They should also ensure that they notify their insurers of any incidents or claims that may affect their insurance cover, and that they cooperate with their insurers in the investigation and settlement of any claims. [8]

An example of a good practice in insurance is to use the RICS insurance broker, which is a service that helps surveyors to find and compare the best insurance deals and options for their needs and preferences. The broker is available on the RICS website, and it offers access to a range of insurance products and providers, such as professional indemnity insurance, public liability insurance, employers liability insurance, and cyber liability insurance.

8        Understanding client objectives

In the construction industry, understanding client objectives is crucial for the success of any project. It involves comprehensively grasping the client’s vision, which may encompass financial goals, operational requirements, and the desired impact on stakeholders. The RICS guidance notes emphasize the importance of aligning project outcomes with these objectives, advocating for a strategic approach to stakeholder engagement and project planning. [9]

UK laws, such as the Construction (Design and Management) Regulations 2015, reinforce this by mandating the consideration of client objectives in health and safety planning, ensuring projects meet broader societal goals. [10]

As a construction professional, you should be able to identify and prioritise the client's objectives, and explain how they align with your own professional standards and ethics. You should also be aware of any potential risks or challenges that may affect the achievement of the client's objectives, and communicate them clearly and honestly. For example, if the client wants to build a sustainable and energy-efficient building, you should inform them of the relevant regulations, standards, and best practices, as well as the costs and benefits of different options.

To illustrate this, let's consider a real-life example of a client who wanted to refurbish an old office building into a modern co-working space. The client's objectives were to create a flexible and attractive working environment, to maximise the use of natural light and ventilation, and to minimise the environmental impact and operational costs of the building. The construction professional conducted a thorough site investigation and feasibility study, and proposed a design that incorporated passive solar heating, natural cooling, rainwater harvesting, and recycled materials. The construction professional also explained the advantages and disadvantages of the proposed design, and how it met the client's objectives and budget.

9        Establishing client's brief

The client’s brief is a critical document that outlines the project’s scope, budget, and timelines. It serves as a directive for the project team and a benchmark against which project success can be measured. RICS guidance notes recommend that the brief be developed collaboratively with the client to ensure it is comprehensive and reflective of the client’s needs. [9]

The CDM 2015 in the UK also specifies that the client’s brief should communicate the main function and operational requirements of the finished project, highlighting the importance of managing health and safety risks throughout the project’s lifecycle. [10]

As a construction professional, you should be able to prepare and agree on the client's brief, and ensure that it is clear, comprehensive, and realistic. You should also be able to review and update the client's brief as the project progresses, and manage any changes or variations that may arise. For example, if the client requests a change in the design or the schedule of the project, you should assess the impact of the change on the scope, cost, and quality of the project, and negotiate a fair and reasonable adjustment with the client.

To illustrate this, let's consider a real-life example of a client who wanted to construct a new sports facility for a university campus. The client's brief included the following elements:

• The project scope: the construction of a sports hall, a swimming pool, a gym, and a changing room.

• The project specifications: the size, layout, materials, and equipment of each facility, as well as the safety, accessibility, and environmental standards.

• The project deliverables: the drawings, reports, certificates, and warranties that the construction professional had to provide at each stage of the project.

• The roles and responsibilities: the duties and obligations of the client, the construction professional, and the other consultants and contractors involved in the project.

• The communication and reporting methods: the frequency, format, and content of the meetings, emails, phone calls, and documents that the parties had to exchange throughout the project.

• The quality and performance criteria: the benchmarks and indicators that the parties had to use to measure and evaluate the quality and performance of the project.

• The payment and dispute resolution terms: the payment schedule, the invoicing and payment methods, and the dispute resolution procedures that the parties had to follow in case of any disagreement or conflict.

The construction professional prepared and agreed on the client's brief with the client, and reviewed and updated it regularly, as the project developed. The construction professional also managed any changes or variations that occurred during the project, such as the addition of a café and a reception area, and the delay in the delivery of some materials.

10   Conclusion

In the intricate landscape of construction and surveying, adherence to best practices and regulatory frameworks is indispensable for fostering trust, mitigating risks, and ensuring the successful delivery of projects. From the meticulous crafting of appointment documents to the strategic alignment with client objectives, each facet plays a crucial role in navigating the complexities inherent in this domain. By leveraging standardized templates, embracing transparency in fee structures, and implementing robust complaints handling mechanisms, construction professionals can enhance client satisfaction and uphold industry standards. Moreover, the proactive management of insurance arrangements and diligent establishment of client briefs further fortify the foundation for collaborative and successful project outcomes. As custodians of quality and integrity, construction professionals stand poised to shape a future where clarity, communication, and competence are hallmarks of every endeavor.

11   References

1.       RICS (2019) Appointment documents. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/appointment-documents/ (Accessed: 10 November 2020).

2.       RICS (2019) Fees. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/fees/ (Accessed: 10 November 2020).

3.       RICS (2019) Invoicing. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/invoicing/ (Accessed: 10 November 2020).

4.       RICS (2019) Variations. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/variations/ (Accessed: 10 November 2020).

5.       RICS (2019) Prequalification Questionnaires. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/prequalification-questionnaires/ (Accessed: 10 November 2020).

6.       RICS (2019) Invitation to Tender. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/invitation-to-tender/ (Accessed: 10 November 2020).

7.       RICS (2019) Complaints handling. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/complaints-handling/ (Accessed: 10 November 2020).

8.       RICS (2019) Insurance. Available at: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/insurance/ (Accessed: 10 November 2020).

9.       RICS Standards and Guidance. Available at: https://www.gov.scot/publications/construction-procurement-handbook/pages/2/

10.    CDM – A Client’s Brief | C&C Consulting. Accessible at: https://www.gov.scot/publications/construction-procurement-handbook/pages/2/