RICS APC – MANDATORY
COMPETENCIES SPRING 2025
EXAM QUESTIONS AND ANSWERS
What should be included in terms of appointment for a surveyor, to comply with
RICS rules and by-laws? - ANSWER Confirm terms of business in writing.
Confirm standard limitations in writing.
Detail the services to be provided.
Confirm the basis of fees to be charged.
Identify the complaints handling procedure.
What details should be included in a surveyor's terms of business? - ANSWER
Standard RICS text on what it means to be regulated by RICS.
Scope of services.
What is excluded from scope of services.
How to terminate the appointment.
The dispute resolution procedure.
Timescales.
Insurance provisions where relevant.
Reliance by others on the report.
Access requirements (and costs).
What is a Profit and Loss account? - ANSWER A Profit and Loss account is a
summary of the business's income and expenditure transactions, including
outgoings deducted from the cash flow statement such as dividends, usually
prepared annually.
What is a Balance Sheet? - ANSWER A balance sheet is a statement of the
business's financial position at a given time, accounting for all assets and
liabilities and accumulated profit and loss figures from previous years.
,What is a cashflow statement? - ANSWER A cashflow statement shows all the
actual receipts and expenditure including VAT, showing the flow of money
across a given period. This is for measuring business health and therefore some
items such as dividends have not yet been deducted. This is done on the P&L.
What implications does IFRS16 have on surveying? - ANSWER IFRS is an
accounting standard. From 2019 the full cost of leases will have to be accounted
for on the Balance Sheet. This means occupier's rent obligations are now
recognised as a liability, if the lease is greater than 12 months long.
How might you avoid conflict between parties to a contract? - ANSWER Clear
contract drafting.
Managing expectations effectively.
Serving notices correctly - many serve as early warnings.
Being transparent.
Good record keeping.
What are the advantages of Alternative Dispute Resolution ( ADR ) -
ANSWER Speed.
Informality.
Possible to negotiate.
Cheaper than litigation.
Quality decision made by construction professional.
Confidential.
What are the three types of Alternative Dispute Resolution? - ANSWER
Negotiation
Mediation or conciliation.
Adjudicative process.
What are the main features of early neutral determination in ADR? - ANSWER
Expert involved to make a non-binding opinion on the situation.
What are the main features of mediation in ADR? - ANSWER Confidential.
Mediator can't make the decision; they only guide.
What are the main features of adjudication in ADR? - ANSWER Common
choice for payment disputes.
, The process was created by the Housing Grants, Construction and Regeneration
Act 1996.
There are strict timescales - a decision must be reached within 28 days.
Why should a surveyor ensure they have the relevant experience before
accepting an expert witness role? - ANSWER To abide by RICS rules.
Jones v Kaney 2011 shows that expert witnesses can be sued for negligence.
What are the main features of Arbitration in ADR? - ANSWER It is quasi-
judicial.
Covered by the Arbitration Act 1996.
The decision is binding, except on a point of law.
Can be heard or undertaken through written letters.
Confidential.
There is a Chartered Institute of Arbitrators.
How might you develop your business and monitor its health? - ANSWER
Work In Progress sheets.
Budgets.
Cash flow sheets.
Networking and building up contacts.
Marketing materials for clients.
Talk to existing clients about their problems.
What is a cash flow forecast? - ANSWER It is an estimate of future inflows &
outflows of the business usually on a monthly basis.
It shows the expected cash balance (NOT profit!) at the end of each month.
What should a business plan contain? - ANSWER Owner's background and
experience.
Proposed products/services.
The intended market.
Market research, including competitors.
Marketing strategy.
Competitor analysis.
Payment and logistics.
Costs and pricing.
Financial forecasts: budgets, cash flow, financial controls.
COMPETENCIES SPRING 2025
EXAM QUESTIONS AND ANSWERS
What should be included in terms of appointment for a surveyor, to comply with
RICS rules and by-laws? - ANSWER Confirm terms of business in writing.
Confirm standard limitations in writing.
Detail the services to be provided.
Confirm the basis of fees to be charged.
Identify the complaints handling procedure.
What details should be included in a surveyor's terms of business? - ANSWER
Standard RICS text on what it means to be regulated by RICS.
Scope of services.
What is excluded from scope of services.
How to terminate the appointment.
The dispute resolution procedure.
Timescales.
Insurance provisions where relevant.
Reliance by others on the report.
Access requirements (and costs).
What is a Profit and Loss account? - ANSWER A Profit and Loss account is a
summary of the business's income and expenditure transactions, including
outgoings deducted from the cash flow statement such as dividends, usually
prepared annually.
What is a Balance Sheet? - ANSWER A balance sheet is a statement of the
business's financial position at a given time, accounting for all assets and
liabilities and accumulated profit and loss figures from previous years.
,What is a cashflow statement? - ANSWER A cashflow statement shows all the
actual receipts and expenditure including VAT, showing the flow of money
across a given period. This is for measuring business health and therefore some
items such as dividends have not yet been deducted. This is done on the P&L.
What implications does IFRS16 have on surveying? - ANSWER IFRS is an
accounting standard. From 2019 the full cost of leases will have to be accounted
for on the Balance Sheet. This means occupier's rent obligations are now
recognised as a liability, if the lease is greater than 12 months long.
How might you avoid conflict between parties to a contract? - ANSWER Clear
contract drafting.
Managing expectations effectively.
Serving notices correctly - many serve as early warnings.
Being transparent.
Good record keeping.
What are the advantages of Alternative Dispute Resolution ( ADR ) -
ANSWER Speed.
Informality.
Possible to negotiate.
Cheaper than litigation.
Quality decision made by construction professional.
Confidential.
What are the three types of Alternative Dispute Resolution? - ANSWER
Negotiation
Mediation or conciliation.
Adjudicative process.
What are the main features of early neutral determination in ADR? - ANSWER
Expert involved to make a non-binding opinion on the situation.
What are the main features of mediation in ADR? - ANSWER Confidential.
Mediator can't make the decision; they only guide.
What are the main features of adjudication in ADR? - ANSWER Common
choice for payment disputes.
, The process was created by the Housing Grants, Construction and Regeneration
Act 1996.
There are strict timescales - a decision must be reached within 28 days.
Why should a surveyor ensure they have the relevant experience before
accepting an expert witness role? - ANSWER To abide by RICS rules.
Jones v Kaney 2011 shows that expert witnesses can be sued for negligence.
What are the main features of Arbitration in ADR? - ANSWER It is quasi-
judicial.
Covered by the Arbitration Act 1996.
The decision is binding, except on a point of law.
Can be heard or undertaken through written letters.
Confidential.
There is a Chartered Institute of Arbitrators.
How might you develop your business and monitor its health? - ANSWER
Work In Progress sheets.
Budgets.
Cash flow sheets.
Networking and building up contacts.
Marketing materials for clients.
Talk to existing clients about their problems.
What is a cash flow forecast? - ANSWER It is an estimate of future inflows &
outflows of the business usually on a monthly basis.
It shows the expected cash balance (NOT profit!) at the end of each month.
What should a business plan contain? - ANSWER Owner's background and
experience.
Proposed products/services.
The intended market.
Market research, including competitors.
Marketing strategy.
Competitor analysis.
Payment and logistics.
Costs and pricing.
Financial forecasts: budgets, cash flow, financial controls.
