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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, 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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, 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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
