MGRADES EXAMS
RICS APC - Mandatory Competencies
Spring UPDATED ACTUAL Exam
Questions and CORRECT Answers
What should be included in terms of appointment for a surveyor, to comply with RICS rules and
by-laws? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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.
,MGRADES EXAMS
What is a cashflow statement? - CORRECT 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? - CORRECT 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? - CORRECT 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 ) - CORRECT 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? - CORRECT ANSWER -
Negotiation
Mediation or conciliation.
Adjudicative process.
, MGRADES EXAMS
What are the main features of early neutral determination in ADR? - CORRECT ANSWER -
Expert involved to make a non-binding opinion on the situation.
What are the main features of mediation in ADR? - CORRECT ANSWER - Confidential.
Mediator can't make the decision; they only guide.
What are the main features of adjudication in ADR? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER -
Work In Progress sheets.
Budgets.
Cash flow sheets.
Networking and building up contacts.
Marketing materials for clients.
RICS APC - Mandatory Competencies
Spring UPDATED ACTUAL Exam
Questions and CORRECT Answers
What should be included in terms of appointment for a surveyor, to comply with RICS rules and
by-laws? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT 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.
,MGRADES EXAMS
What is a cashflow statement? - CORRECT 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? - CORRECT 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? - CORRECT 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 ) - CORRECT 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? - CORRECT ANSWER -
Negotiation
Mediation or conciliation.
Adjudicative process.
, MGRADES EXAMS
What are the main features of early neutral determination in ADR? - CORRECT ANSWER -
Expert involved to make a non-binding opinion on the situation.
What are the main features of mediation in ADR? - CORRECT ANSWER - Confidential.
Mediator can't make the decision; they only guide.
What are the main features of adjudication in ADR? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER -
Work In Progress sheets.
Budgets.
Cash flow sheets.
Networking and building up contacts.
Marketing materials for clients.
