RICS Modus, Global edition — October 2011

rics.org/modus

MICRO MANAGING The challenges of running a small firm p14SPACE SAVING The shrinking size of our homes and offices p22 START-UP SUCCESS 10 surveyors who set up on their own p34

MOD

US 10.11 R

ICS.OR

G /MO

DU

STH

E SMALL ISSU

E

10.11 //

THESMALLISSUE

MODUS_Oct_P1_Cover.v2.indd 1 14/09/2011 14:30

Empty buildings are at risk!Illegal parties! Vandalism! Squatters!Theft of fixtures & fittings! Burst pipes!

Save up to 80% on your vacant property security with Ad Hoc

Live-in Security Guardians

Don’t just lock it, Ad Hoc it™

020 7354 5458 www.adhoc.euCall for a quote

Modus_Oct_P2_AdHoc_ad.indd 1 14/09/2011 17:02

THINK SMALL

FRANCESCO MUZZIFlorence-based designer Francesco specialises in graphic illustration. His work has appeared in a range of international publications including Wired magazine and the Italian newspaper La Repubblica.

KATIE PUCKETTKatie is a freelance journalist who writes regularly on everything to do with buildings, large and small. She investigated the trend for and psychology behind shrinking spaces for this issue.

OSCAR BOLTON GREENOscar is a young London-based illustrator who has worked for clients including American Express and Rolling Stone magazine. He illustrated this month’s start-up firms feature.

10.11 // MODUS 03

Regulars

04FEEDBACKYour letters, and the latest Modus poll

06INTELLIGENCEGlobal property and construction news, plus opinions, reviews and reactions

27LAW ADVICENarrowing the scope of surveyors’ duty of care

41BUSINESS ADVICEFive first steps to setting up your own business

Features

14SMALL COMPANIESWhy SMEs need a helping hand

2010 MINUTES WITH…Lance Taylor FRICS of Rider Levett Bucknall

22SHRINKING SPACESThe trend for smaller homes and offices

28BEYOND BRICSA look at emerging CIVETS economies

30VIETNAMOpportunities in this fast-growing nation

34STARTER FOR 10Surveying start-ups around the world

43RICS NEWSNews and updates from RICS worldwide, plus a message from the President

51EVENTSExhibition, training and conference dates for your diary

55RECRUITMENTThe latest job opportunities from across the industry

58THE MEASUREFrom the smallest to the largest measurements

Almost 80% of RICS members work in small firms, and SMEs contribute almost half of

UK GDP – yet they have been some of the hardest hit by the global downturn. This issue,

we explore the challenges facing small firms and sole practitioners, and what can and

should be done to help them (page 14). Meanwhile, on a more positive note, we profile

10 chartered surveyors around the world who have successfully set up on their own in

the past few years (page 34), and share five first steps for those thinking of starting a

business (page 41). Elsewhere, we consider how home and office space is shrinking in

light of increasing urbanisation and rising land and property prices (page 22), examine

six emerging economies who are challenging the big-hitting BRIC nations (page 28),

and take a more in-depth look at the opportunities in one of them, Vietnam (page 30).

VICTORIA BROOKES EDITOR

Information

Contributors//

Contents//:10.11 //

MODUS_Oct_p03-4_Content & Letters.v1.F1.indd 3 19/09/2011 16:24

FOR SUNDAYEditor Victoria Brookes // Art Director Christie Ferdinando

// Contributing Editor Brendon Hooper // Sub Editor

Samantha Whitaker // Creative Director Matt Beaven

// Account Director Stephanie Hill // Account Director

David Matthews // Commercial Director Karen Jenner //

Commercial Manager Lucie Inns // Senior Sales Executive

Faith Ellis // Recruitment Sales Manager Grace Healy //

Managing Director Toby Smeeton // Repro F1 Colour //

Printers Woodford Litho // Cover Gloominati

Published by Sunday, Studio 2, Enterprise House,

1-2 Hatfi elds, London SE1 9PG sundaypublishing.com

FOR RICSEditorial board Ian Fussey and Jaclyn Dunstan

RICS, Parliament Square, London SW1P 3AD

Feedback//

Of course, planning legislation requires an overhaul, particularly in the overcrowded South East, but RICS needs to quietly consider the options before siding with the ‘build anything anywhere’ brigade led by the construction industry.Roger W Marlow FRICS, Surrey

Members are invited to contribute to the RICS response to the NPPF consultation until 10 October at rics.org/NPPFconsultation.

A TOPICAL READI have been reading Modus for some months now and felt I should write to express my thanks on the well thought-out and topical issues you and your team produce each month. I am not a member of RICS but an offi ce manager of a small fi rm of chartered surveyors in the North East of England. Not being a member of the Institution does not quell the need to keep up to date with the

04 r ics.org

topical issues aff ecting the industry. Modus is more than a magazine of surveying news; it includes information which can be applied to running a surveying practice. Very relevant in this time of austerity when all fi rms and surveyors need to keep a focus on being seen as an authority in their fi eld and the customer service they provide.

I found the Effi ciency issue very insightful, the Happiness issue – ‘10 reasons to be positive’ uplifting and now the Home issue – particularly signifi cant, as we are a residential surveying fi rm. Modus is a breath of fresh air and I look forward to each edition. I urge other members to pass the magazine around the offi ce to members of staff , they may well be interested in reading it over lunch or on a break. It is vital for staff in surveying fi rms to keep up to date with the industry as well as surveyors. Modus certainly goes a long way to help with this in our case.Helen McSkimmings, Newcastle

The MODUS team//

JOIN THE DEBATE

:EMAIL YOUR FEEDBACK [email protected]

Views expressed in Modus are those of the named author and are not necessarily those of RICS or the publisher. The contents of this magazine are fully protected by copyright and may not be reproduced in any form without the prior permission of the publisher. All information correct at time of going to press. All rights reserved. The publisher cannot accept liability for errors or omissions. RICS does not accept responsibility for loss, injury or damage or costs that result from, or are connected in any way to, the use of products or services advertised. All editions of Modus are printed on paper sourced from sustainable, properly managed forests. This magazine can be recycled for use in newspapers and packaging. Please dispose of it at your local collection point. The polywrap is made from biodegradable material and can be recycled.

95,256 average net circulation 1st July 2009 – 30th June 2010

THE MODUS POLL :WHAT DO YOU THINK IS THE BIGGEST CHALLENGE FACING SMALL FIRMS AND SOLE PRACTITIONERS?Total votes: 623

Visit rics.org/modus now to vote in our next poll: ‘Should drilling in the Arctic go ahead?’

PLANNING PROPOSALSI would strongly suggest to the President that his letter of 11 August to the Prime Minister regarding the draft National Planning Policy Framework was too positive, eg ‘RICS welcomes the Government’s draft NPPF as a signifi cant step forward.’ The reaction by the likes of the National Trust indicates that the proposals are very controversial, and it follows that RICS, as the leading institution dealing with land and construction, should have played a ‘straight bat’ at the proposals until members’ reactions had been sought.

I suggest that the President reads the article in the Sunday Telegraph of 7 August in which Andrew Gilligan comments on the proposals, which include the ‘assumption that the default answer to development proposals should be yes’ etc. This fl ies in the face of Conservative policy prior to the general election. Another statement in the NPPF says that ‘planning policies should not attempt to impose architectural styles or particular tastes’. I suggest the powers that be within RICS take a look at the village of Copplestone in Devon, where there has been a massive housing development of very poor design, destroying the ambience of the village. Closer to home, the Conservative council in Elmbridge has forced through a highly contentious development around Hampton Court station in the face of local opposition – as well as from the Conservative council in Richmond upon Thames. I would argue that such developments in sensitive historic areas should be a matter for a central authority rather than being batted backwards and forwards by politically motivated local authorities.

Due to the volume of correspondence we receive, we regret that we are unable to print all letters or respond to every one individually.

From distinctive drive-thrus to fresh looking restaurants, our stores are designed to be great environments for your customers.

We listen to your requirements, designing stores for mutual success.

That’s what partnership is all about.

A WELL DESIGNED PARTNERSHIP IS FORMED THROUGH MUTUAL UNDERSTANDING

WWW.KFCDEVELOPMENT.CO.UKFind out more online at

or call us today on 01483 717 188 if you know a site that fits our requirements.

* For full terms and conditions of fees (paid only to property professionals on unconditional exchange) please refer to our web-site.

B2B_DESIGN_MODUS.indd 1 06/09/2011 15:11

Red tape

10.8%

PI insurance

8.8%

Access to contracts

19.1%

Bank support

10.4%Cash fl ow

40.9%

Working in isolation

10%

MODUS_Oct_p03-4_Content & Letters.v1.F1.indd 4 19/09/2011 16:25

From distinctive drive-thrus to fresh looking restaurants, our stores are designed to be great environments for your customers.

We listen to your requirements, designing stores for mutual success.

That’s what partnership is all about.

A WELL DESIGNED PARTNERSHIP IS FORMED THROUGH MUTUAL UNDERSTANDING

WWW.KFCDEVELOPMENT.CO.UKFind out more online at

or call us today on 01483 717 188 if you know a site that fits our requirements.

* For full terms and conditions of fees (paid only to property professionals on unconditional exchange) please refer to our web-site.

B2B_DESIGN_MODUS.indd 1 06/09/2011 15:11MODUS_Oct_p03-4_Content & Letters.v1.F1.indd 5 19/09/2011 16:25

Intelligence// :NEWS :REVIEWS :OPINIONS :REACTIONS

MODUS_Oct_p06-7_Intel_opener_v2.indd 6 19/09/2011 16:59

It was fears of an invasion by Napoleon in 1791 that prompted the Board of Ordnance to map the south east coast of England in detail. Although Ordnance Survey (OS) is still best known for its paper maps – selling more than two million a year – now around 90% of the government-owned company’s business is digital. Its flagship product, the OS Mastermap, is a huge, constantly reviewed database that records every feature of the UK larger than a few metres in one continuous map. More than 450m topographical identifiers (TOIDs) have been stored, equating to hundreds of gigabytes of data. ‘OS provides an incredibly in-depth service to UK plc, and to RICS members,’ says James Kavanagh MRICS, Director of the RICS Land Group. ‘RICS has recently collaborated with OS on a mapping green infrastructure paper, and is currently involved in a major project researching the UK navigation and positioning framework.’ So will OS stop making paper maps? ‘Digital geographic information may make up the majority of our business these days, but sales of paper maps are still strong,’ says senior communications officer Paul Beauchamp. ‘Plus, outdoor experts will always advise you never to rely solely on gadgets when out on the hills.’RICS members can get three for two on OS maps from the Landranger and Explorer ranges – visit rics.org/ordnancesurvey.

:OS MASTERMAP, MARYPORT, CUMBRIA

MODUS_Oct_p06-7_Intel_opener_v2.indd 7 19/09/2011 16:59

08 r ics.org

Intelligence//

08 r ics.org

HELPING HANDThe UK government’s planned support for small businesses includes cutting corporation tax and reducing regulation

Opinion

SMES ARE AT THE HEART OF OUR ECONOMIC PLAN

In what’s being seen as a landmark case, the Competition Commission of India has forced a property fi rm to pay a fi ne of US$138m (£83.5m) for delaying the building of a housing scheme in New Delhi that was due to complete in 2009. The Commission found that property fi rm DLF had also engaged in

unfair practices and used its market position to the detriment of customers, and accused it of changing the project’s dimensions halfway through. While DLF argues that it was following industry practice, the ruling against the fi rm may allow similar cases against other developers to go ahead.

The construction sector grew by 0.5% during the second quarter of 2011, with government fi gures showing a relative stabilisation after two quarters of decline. But industry experts warn that public sector spending cuts have not yet fully hit contractors. ‘Growth in private sector construction has fi nally begun to recover,

and although public sector construction output remains stronger than we had anticipated, it is clear that the impact of the public sector spending cuts is still to be felt and is forecast to cause sharp falls later this year,’ said Michael Ankers, chief executive of the Construction Products Association.

India // DELAY PENALTY UK // CAUTIOUS GROWTH

The government is striving to make the UK the best place in the world to start and grow a business. This will help us achieve balanced and sustainable

economic recovery now, and prosperity in the future. It is no exaggeration to say that start-ups and small fi rms are right at the very heart of our economic plan.

Having started my own business at the bottom of the last recession, I understand the challenges that small business owners face. I know that what they really crave is a stable long-term framework that gives them the confi dence and the ability to plan, invest and grow. That is why we are cutting the main rate of corporation tax from 28% to 23%, and have already slashed the small fi rms’ rate [for companies with profi ts of up to £300,000] to 20%. It is why we are getting to grips with the regulatory burden and have scrapped planned regulations to save business £350m each year, and announced an unprecedented three-year moratorium on new domestic regulation for micro businesses and start-ups.

We are working with the banks to ensure they meet their £76bn small and medium-sized enterprise (SME) lending target in 2011-12, and extending the Enterprise Finance Guarantee to make £2bn of loan guarantees available to viable small fi rms through to 2014.

Entrepreneurs also need to access business information and advice quickly and easily. A radically improved Business Link website (businesslink.gov.uk) will provide online business help and information, tailored for each user. A national call centre will back this up with telephone assistance for those SMEs not yet online, or for those who cannot fi nd what they need on the web.

On the advice side, businesses repeatedly tell us that the guidance they value most comes from those with real, hands-on experience of enterprise. So last month we launched a new national mentoring network (mentorsme.co.uk), which provides a single online portal to allow those who own a business, or are thinking of starting one, to get useful, practical advice from people who have done it and succeeded before.

The changing economic environment represents a real opportunity for British business. Backing new businesses to start and existing ones to grow will transform our economy and create the thousands of jobs the country needs for the future. With the government’s help, now is the time for small business owners and entrepreneurs to seize this opportunity and drive our economy forward.

MARK PRISK FRICS is Minister of State for Business & Enterprise in the UK government’s Department for Business, Innovation and Skills. He ran his own business for 10 years before being elected to Parliament in 2001. bis.gov.uk

Mark Prisk FRICS Minister of State for Business & Enterprise

FOR MORE ADVICE from Business Link on starting a business, see p41

MODUS_Oct_P08-13_Intel.v4.F1.indd 8 19/09/2011 17:23

01.11 // MODUS 09

:ONE BIG QUESTION WHAT ARE THE BIGGEST CHALLENGES FACING SMES AND SOLE PRACTITIONERS?

10.11 // MODUS 09

Take part in discussions by joining the RICS group at linkedin.com

Sheffi eld In a technologically driven business such as ours, getting funds for investment is becoming a serious headache. While the banks are funding big business, they have no desire to fund SMEs.

Ireland Access to fi nance for clients is currently the major headache. Our property market is stuttering along, far off -peak, due to lack of funding and a huge overhang of built and partly built developments.

Maidstone The criteria for tendering for public sector work is usually out of reach for virtually all small start-ups unable to show three years of accounts with limited PI cover and fewer than three partners.

Philip Wilbourn FRICS, Wilbourn Associates

Pat Quirke MRICS, PF Quirke & Co, Co Tipperary

Christopher Francis MRICS, Cranborne Associates

AustraliaRETAINING SKILLSA new training plan has been launched by Construction Skills Queensland (CSQ) to help reduce skill shortages in the state. With several large infrastructure projects set to commence, a recent CSQ survey found that two-thirds of companies intend to hire new staff but many are struggling to fi ll roles. CSQ’s AUD$47m (£29.8m) package will focus on attracting, training and retaining construction workers.

BrazilOLYMPIC UNVEILING

Global consultant Aecom has unveiled its winning design for the 2016 Olympic Park in Rio de Janeiro. The design for the 1.18m m sq area is split into an Olympic Games mode and a legacy mode, both of which impressed the competition judges. The project will involve building permanent and temporary facilities, and preserving green areas. Aecom will now work with architects Wilkinson Eyre, DG Architecture (Rio), Pujol Barcelona Architects, IMG Sports and Expedition, and employees from Davis Langdon, who are currently working on the London 2012 Olympic Park.

Northampton Cash fl ow – once you are struggling with cash fl ow it is very diffi cult to focus on anything else. Looking for the next project while trying to focus on the current one is also diffi cult.

Somerset I have virtually given up on the public sector, who nearly always gravitate to the big boys from outside the area despite their procurement strategy stating they will source such services locally.

Paul Knight FRICS, PJK Chartered Surveyors, Wells

Gary Shuttleworth MRICS, Gary Shuttleworth (Engineering Surveys)

£705Average monthly rent in

England and Wales in July – a record high

(LSL Property Services)

US$50tnThe estimated amount to be spent

on global infrastructure over the next 25 years, according to RICS

UKCROYDON HEIGHTS

Croydon’s Strategic Planning Committee is set to grant planning permission for a £250m regeneration scheme that will include a 55-storey residential tower providing around 500 homes. Developer Menta’s original application, which featured four towers, was withdrawn in 2009. Designed by Make and named Cherry Orchard Road, the new scheme will also feature shared-ownership housing, a community centre, shops, and a four-star hotel and offi ces. The development will also deliver infrastructure improvements to the East Croydon railway station including a new East-West link pedestrian bridge.


08 r ics.org

FUTURE VISIONGoogle’s corporate headquarters in California, ‘Googleplex’, is a colourful example of fl exible offi ce space

Opinion

WE NEED FLEXIBLE WORKSPACE FOR CHANGING TRENDSGary Wingrove British Council for Offi ces

There won’t be an offi ce of the future. Or rather, there won’t be a one-size-fi ts-all prototype for how and where we work. At least, that’s the ideal:

a workplace truly tailored to the needs of each occupier. To make this happen, developers and occupiers alike need to remain fully attuned to the social and technological trends that affect businesses when creating the offi ce space in which they operate.

We are inevitably affected by our surroundings, and our workplace needs to adapt and respond accordingly to help drive productivity. Predictions that working from home would render the office redundant have proven to be unfounded, and the retirement age increase means that those used to working set hours at a fi xed address will continue to buck that trend for some years to come. On the other hand, proposals for a new system of fl exible parental leave may necessitate a further relaxation of the notion of the offi ce as the place where work starts and ends. So providing a fl exible environment which accommodates both working patterns will be vital.

The key is not to generalise. We might assume that Generation Y would prefer to work on the move via their smartphones or tablet devices, for example, but young people who have grown up sharing things online, inviting their friends to ‘like’ their lifestyle choices, might prefer the more social and collaborative style of working that a fi xed meeting space encourages.

It is with people in mind that we need to consider the impact of information and communications technology on our workspace. As tempting as it might be to invest in

the hi-tech bandwagon, it is often the smaller issues that impact on productivity day-to-day. A working printer, for example, or a functioning projector. The BCO’s recent Challenges for the Office Sector report suggests that technology facilitates rather than drives change.

All those involved in office design and use, from architects, developers and agents to landlords and occupiers, need to collaborate where possible from concept stage and throughout the life cycle of the building. Doing so will ensure the fi nal product is not just fi t for purpose, but delivers commercial benefits. When the interior workplace works, by boosting productivity, motivation and even head count, it can increase the value of the building to the occupier as much as an award-winning exterior.

GARY WINGROVE is president of the British Council for Offi ces and head of construction programme management at BT. bco.org.uk

10 r ics.org10 r ics.org

IndiaVIDA VISION

To cope with the ever-growing number of people moving from rural areas to the city, a developer in an as yet unnamed city in southern India is considering the construction of a vast new township that would house up to 40,000 people. The 400,000m sq scheme, designed by VIDA Global Design, an international consortium of architects, would feature landscaped green spaces to help reduce surface water run-off , and aspire to LEED Gold certifi cation by using sustainable construction methods. If given planning permission, phase one is expected to complete in 2013.

TOP 5 APPS1. Vertice Q Surveying Find answers to common problems2. Theodolite Pro Overlays real-time data on your camera image3. Woobius Eye Upload and share on-site photos and annotate them in real time4. iRuler Turn your iPad or iPhone into a ruler or clinometer5. Expensify Organise all your project expenses in one place


01.11 // MODUS 09

Saudi ArabiaHOLY EXPANSIONIslam’s holiest site, the Grand Mosque in Mecca, is undergoing a huge expansion scheme to raise its capacity to host more than 2m pilgrims, the kingdom’s state news agency has announced. Costing around US$21bn (£13bn), the project will add 400,000m sq to the mosque’s area and will include the construction of pedestrian bridges and shaded areas to protect worshippers from the sun. More than 6m Muslim pilgrims visit the mosque each year, and Saudi Arabia is investing billions in modernising the ancient city with high-rise offi ce towers and residential blocks.

Books :REVIEWS

An essential resource for anyone involved with real estate valuation at any level, this provides fresh ideas for new approaches.18892 // £45

Order from ricsbooks.com

Practical advice on what organisations can and should do to manage work-life balance.17875 // £80

A down-to-earth guide to tackling the management challenges facing small and medium-sized surveying practices.17937 // £29.99

Advice on expanding your business, managing staff and projects, and understanding the legal and fi nancial aspects.18280 // £45

10.11 // MODUS 11

EuropeTWO-SPEED GROWTH

Europe’s offi ce markets are growing, but at two speeds, according to Jones Lang LaSalle’s (JLL) Q2 2011 European Offi ce Clock Report. The fi rm’s index showed strong performances in Moscow, Prague and Lyon, with more modest rental growth in Berlin, London’s West End and Stockholm. ‘Europe’s economic recovery has continued throughout Q2 but the ongoing, and increasing, uncertainty about the eurozone debt crisis has softened the short-term economic outlook,’ said Bill Page, head of EMEA Offi ce Research at JLL.

GermanySTAYING HOME

Although German commercial property investors accounted for 16% of European property investment in the fi rst half of 2011, they are increasingly concentrating on their home market. ‘Investors continue to focus on the prime end of the market, while assets further out on the risk spectrum will remain less desirable until the economic uncertainty is reduced,’ said Jonathan Hull, head of EMEA Capital Markets at CB Richard Ellis (CBRE).

2mBrazil plans to build another two million

aff ordable homes by 2014

RIS

ING

FALL

ING

Hon

g Ko

ng M

ortg

age

appr

oval

s fe

ll by

14%

in J

une

to t

he

low

est l

evel

sin

ce M

arch

200

9 (R

ICS

Glob

al R

eal E

stat

e W

eekl

y)

Braz

il M

ortg

age

lend

ing

is u

p by

50%

com

pare

d w

ith

leve

ls t

his

time

last

yea

r(R

ICS

Glob

al R

eal E

stat

e W

eekl

y)

1.9m sq ftMore than half the total new shopping

centre space completed in the UK this year is accounted for by Westfi eld Stratford, London

Imag

es C

HRI

S GA

SCOI

GNE/

VIEW

, Get

ty

50The number of Easy

Hotels set to open across Africa in the next

fi ve years


08 r ics.org

NEWS BITES

Brazil dealThe British Research Establishment (BRE) has signed a deal with the Brazilian government to set up an innovation park in the capital Brasília, which will showcase British expertise and help UK firms win work in the region. A mixture of BRE’s domestic and non-domestic homes will be displayed.

Height fightAfter a disagreement with China, Nepal is setting up three surveying stations to re-determine the height of Mount Everest. China believes Everest should be measured to the highest point of rock, while Nepal thinks the snow on the summit should be included, which adds a further 3.5m. The process will take two years.

Clean upMore than 700,000 UK property owners could be held liable for cleaning up contaminated land, according to research by SearchFlow. Around 3% of all properties are affected by land contamination and, although whoever caused the damage must bear responsibility for it, if they cannot be found, responsibility will fall to the current owners or occupiers.

Lease greenA new website has been launched to help UK and Australian businesses find energy-efficient commercial buildings. Sponsored by CRE Australia, listings are free, but businesses are encouraged to make a donation. Visit leasegreen buildings.co.uk.

12 r ics.org

Opinion

THE GAP BETWEEN BIG AND SMALL ECONOMIES CONTINUES TO NARROWSimon Rubinsohn RICS Chief Economist

Small is Beautiful is an economics text written in the 1970s from a rather idealistic perspective, focusing on

what the author viewed as the need to move beyond market-led economics. The narrative certainly did not capture the imagination of policymakers nor, for that matter, voters, with the next three decades seeing the most intensive phase of globalisation across both the political and economic landscapes.

Over this period, interrelationships between large and small countries, developed and emerging, have become ever-more tight-knit, with relatively minor events in one part of the world having ramifications for economies far removed from the source of the upheaval.

Global financial markets have increasingly played a key role in embedding these linkages. While in the immediate aftermath of the credit crunch there was some speculation that this process might begin to reverse, the evidence available to date would suggest otherwise. Whether it is the US administration’s struggle to effectively map out a credible fiscal policy, the ongoing sovereign debt crisis in Europe, or

the insatiable demand from emerging economies for raw materials, the impact continues to ripple out across the globe.

Put another way, globalisation is just not going to go away, however much some would wish for a simpler world. And this underlines a huge issue for the West. While much of the so-called developed world now appears to face the prospect of a ‘lost decade’ in the wake of the credit crunch, emerging economies are continuing to enjoy rapid growth.

It is true that extraordinarily accommodating monetary policies pursued by the major central banks are presenting some emerging countries with a few challenges, and a number have real estate issues of their own to address. But none of this can get away from the simple fact that the gap between the developed and emerging world is set to continue to narrow, and at a more rapid pace than would have been the case had the West been able to steer a rather different course over the past decade. And, whether it is trade, finance or real estate, economies and markets are set to become ever-more integrated. rics.org/economics

GermanyPREFAB POLICE

Police in Hanover have come up with a modern, prefabricated mobile solution to replace their ageing police support van. Designed by Gesamtkonzept, the miniature police station is just 8m sq, and has been built using the frame of a container. With enough space for a desk, a small table and three seats, officers hope it will make the service more accessible to the public.

USFORECLOSUREFINDERA web-based mapping tool has been launched to display the location of all foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration, which collectively account for nearly half of all real- estate-owned properties in the US. Set up by the US Department of Housing and Urban Development (HUD), the site ‘gives communities a clearer picture of where these foreclosed properties are so they can focus their energies on hard-hit neighbourhoods,’ said HUD Secretary Shaun Donovan. Visit hudhomestore.com.

1,000mThe estimated height of Saudi Arabia’s Kingdom Tower, to be

built by architects AS+GG

Imag

e N

ils G

ünth

er


01.11 // MODUS 09

www.anchormaninsurance.co.uk 01837 55777

In-house underwriting

Instant telephone quotations

Block run-off policies up to six years

Pre-completed proposal forms

Immediate cover

PROFESSIONAL

INSURANCEINDEMNITY

2 EXCLUSIVE

RICS COMPLIANT

SCHEMESNOT AVAILABLE

ANYWHERE ELSE

For more information contact Nick Tagliarini on: T: 01707 282 080E: [email protected]

or visit www.pexhurst.co.uk

rEFurbishmEnT soluTions

For more than 30 years Pexhurst has been supporting the needs of our customers, providing a professional and reliable fit-out and refurbishment solution to the highest standards.

Our skilled and knowledgeable team are available to assist with any project, whether you are refurbishing an existing space or fitting out a new space, and our commitment to excellence ensures a quality finish every time.

With experience across many sectors, including Industrial, Office, Education, Healthcare and Restoration,we have the know-how to get the job done.

Pex_ad04_Industrial_135x190_075753.indd 1 30/03/2011 10:32

10.11 // MODUS 13


14 rics.org

Small firms//

Save our small

COMPANIESIllustration by Gloominati

ROXANE MCMEEKEN LOOKS AT THE CHALLENGES SMALLER CHARTERED SURVEYING FIRMS ARE FACING AND HOW THEY CAN BE HELPED –

INCLUDING URGENTLY NEEDED ACTIONS FROM GOVERNMENT

It’s difficult to imagine a client not wanting to work with quantity surveyor Stuart Davidson

MRICS. The 50-year-old’s CV is eminently solid. He’s been a senior associate at Gardiner & Theobald, a director at Arcadis, and his past projects include Sparsholt College, a £150m new build, and £160m worth of Building Schools for the Future work for Haringey Council. But since founding his business QS Consult in Sittingbourne, Kent, 18 months ago, Davidson has been struggling to win the work for big clients he is so good at.

He may have the skills ‘to really challenge some of the big firms’, but the problem is that, as a micro business (a company with fewer than 10 employees), QS Consult is a virtual pariah in the eyes of large clients. The fact that most tenders stipulate that the job must represent no more than 20% of the bidder’s turnover means that, with annual revenue of £80,000, QS Consult is excluded at a stroke from a huge swath of the construction market in which it could easily compete. Davidson says that pledges from the public sector to change this problem

are ‘laughable’. ‘Basically, it’s a nightmare,’ he adds.

This is just one of the problems small and micro surveying businesses are facing in the UK. And when you consider that some 79,993 RICS members of a total qualified membership of 94,683 work in smaller firms (one to 20 employees), the scale of the issue for the profession is clear. And the invaluable contribution small businesses make to the UK economy means that if they are facing obstacles, this is also a problem for UK plc.

Any doubts about how important a role the small

business sector plays in the national economy as an employer and contributor to output can be dismissed with a glance at the statistics. According to the government’s Department for Business, Innovation and Skills, 97% of UK companies employ fewer than 20 people, and small (10-50 employees) and medium-sized (50-249) firms make up more than 59.8% of the private sector workforce, adding up to 22.8m people. Small firms contribute more than 49% of UK GDP, and some 64% of commercial innovations come from them. >>

MODUS_Oct_P14-19_Small_Companies.v6.F1.indd 14 19/09/2011 17:21

10.11 // MODUS 15


In short, small business is critical to the UK’s economic health.

Unfortunately, small firms are among those being hit hardest by the financial downturn. At the start of the year, data from the Office for National Statistics showed that small businesses in the services sector, which includes surveyors, had suffered more than any other type of company since the start of the recession, with the average firm seeing a

peak-to-trough drop in turnover of 38%.

Small surveyors are simultaneously being hit by the woes of the built environment sector. Total workloads in the construction sector remain flat according to the latest RICS market survey, although expectations for workloads and employment give cause for optimism. In property, meanwhile, Experian said in June that the industry sector remained one of the hardest hit by business failures, with its

16 rics.org

Insolvency Index recording a 70% year-on-year rise in firms going bust in April.

Talk to small surveyors and it’s clear that many are grappling with the same kinds of issues. Tendering is high on everyone’s list. According to Davidson, most prequalification questionnaires (PQQs) are designed for bigger companies, based on the idea that smaller firms are riskier. ‘But there are better ways to assess risk,’ he says. ‘Why not ask us how we would mitigate the risk of not being able to work? You might find we have excellent locum agreements.’

You could do this independently, or through an organisation such as Partnership Working or E-Surveyors. Partnership Working (partnership-working.co.uk) enables firms to club together in order to bid for contracts they would otherwise be excluded from. Small and micro businesses representing different professions join Partnership Working, which highlights tender opportunities and then facilitates the formation of suitable consortia to bid – which includes handling

the legal aspects as well as the softer side, such as looking at whether two firms get on together.

Partnership Working then uses its expert bid writers to prepare the tender and takes a small cut of any resulting work you win. Deb Sen, the engineer who co-founded the firm, says, ‘We have a specialist procurement team with experience of both the government and business sector, and we are also talking to contractors, including Skanska and Kier, about how we could work with them.’

Another initiative is E-Surveyors (esurveyors.com), a website launched by surveyor Gary Edgar, which lists more than 60 smaller surveying firms of all kinds nationally. The idea is that a customer in need of say, a building report, can visit the website and quickly find the nearest appropriate surveyor in their area.

He has also faced barriers trying to prove his firm’s reliability, even when it did qualify to complete the PQQ. A recent public sector client’s questionnaire required him to provide a bank reference but, when he called the bank (a major high street name), he was told it no longer provided references to customers. Instead, the client would have to write to the bank to request the reference – but when he asked them to do so, he was told they didn’t have time.

‘Both organisations treat micro businesses like vagabonds,’ he says. ‘It was clear the bank had no clue about public sector procurement work, and the

:SAFETY IN NUMBERSPUNCH ABOVE YOUR WEIGHT BY TEAMING UP WITH OTHERS


Small firms//

10.11 // MODUS 17

WAYS FOR SMALL FIRMS TO HELP THEMSELVES

1 // Attend a bank outreach programme event. The British

Chamber of Commerce and the major banks are holding a series of events around the country aimed at helping small businesses improve their finances, including one in London on 22 November. Visit betterbusinessfinance.co.uk.

2 // Take part in the UK government’s Red Tape Challenge, which invites

you to nominate business regulations to be scrapped. Visit redtapechallenge.cabinetoffice.gov.uk.

3 // Read the RICS Practice Management guidance. Although

not aimed solely at smaller firms, they provide useful tips, particularly in section eight, Practice development: targeting marketing and business development. Visit rics.org/managementconsultancy.

4 // If you are refused credit, appeal. UK banks have agreed to new

appeals rules – the Lending Code for micro businesses and the Lending Principles for small businesses – so it’s worth getting up to speed with these, although each bank has it own appeal procedure, published on its website.

5 // If your bank still won’t lend to you, think about other means of

finance, suggests Clive Lewis, head of enterprise and small business issues at the Institute of Chartered Accountants in England and Wales. He recommends hire purchasing and leasing, debt finance, and invoice factoring and discounting – effectively selling the debt to a third party, meaning you’re paid immediately. Search for ‘factoring and discounting’ at icaew.com.

‘Both organisations treat micro businesses like vagabonds. It was clear the bank had no clue about public sector procurement work, and the client had no interest in us’

5client had no interest in us.’ The result was that he spent two days working on the tender – ‘a long time for a micro business’ – and missed out on even having a chance to bid.

Paul Knight FRICS, who runs a similar firm, PJK Consulting, in Wells, Somerset, recently had an equally frustrating experience. ‘I had to take out extra insurance cover in order to meet the criteria to bid for a job,’ he explains. ‘I didn’t get the job, but now I’m tied into paying for an unnecessary policy for a year.’

Payment times are a major headache, too. ‘I have had to wait 90 days for payments from public sector clients, and I typically wait 30-40 days at best,’ says Davidson. ‘This might be OK for a huge company like EC Harris, but for me it means being stretched to the limit.’

It’s a widespread problem, and one that harms the whole economy. A Federation of Small Businesses (FSB) survey found that almost three-quarters (73%) of businesses were paid late in the 12 months to July 2011. According to the FSB, ‘Small firms do not have the same cash-flow buffers as larger businesses, and so being paid late causes a vicious circle, meaning that 38% of members that are paid late say they then pay their suppliers late.’ While the government’s commitment to pay all invoices to small firms within 10 days has improved payment times, the survey

found that 18% of respondents are still being paid late by the public sector.

Lower fees are putting further pressure on cash flow. Steven Gosling is the founder of DSG Quantity Surveyors, based in Newbury, Berkshire and Coventry, Warwickshire, which has a similar turnover to that of QS Consult. ‘Fees have dropped drastically this year,’ he says. ‘We are finding we can be 20-30% higher than another bid, even when we have gone in keen.’ While lower fees are enough of a problem in themselves, they also mean that late payments bite harder. ‘We have been finding 2011 tougher than last year because we don’t have the slush fund to tide us over,’ says Gosling. ‘And late payments are on the rise – we’re chasing them all the time.’

As for the banks’ role, despite government action aimed at cajoling them into lending, the FSB says its members continue to go bust due to lack of finance. ‘We have asked our bank for a bit of breathing space, but they are just not up for it,’ says Gosling. The reluctance of banks to lend is hitting construction projects too, of course. Jim Low FRICS, a partner in Edinburgh and Dundee-based KLM Partnership, says, ‘Lots of our small private developer clients are having to sell off their land bank due to lack of bank loans, and this is putting back their development programmes four to five years.’

Which brings us to the government’s role. There are >>


Small firms//

18 rics.org

1. Tell clients who are happy with your work that you are looking to grow and ask them to recommend you to other potential clients. ‘A university estates manager will know other estates managers and so on. It may not seem very British, but diving in and asking a trusted client for a referral is likely to pay off.’

2. Stay active. Small surveyors can become insular, but you must attend networking events and keep in touch with people. ‘It’s easy to spend money on a mass mail shot, but why not send personal emails to people about recent projects or new initiatives?’

3. Get together with complementary professionals, such as architects or engineers, and host a joint drinks do – ‘even better if it’s to celebrate a joint project’.

4. Go down the chain. Ask the people to whom you give work who they are working for, and get them to make introductions and take you to events. ‘This also means you’re spending someone else’s marketing budget.’

5 . Network digitally. ‘Facebook and Twitter are good, but my favourite is LinkedIn because it’s 100% about business and you can see who your contacts are doing business with, plus join special interest groups.’

6. Beware of concentration. ‘If five companies are providing 90% of your work, what happens if one goes under?’ Diversify in terms of clients and work, mixing refurbishment and new build, public and private sector.

7. Make sure your existing customers know all the services you provide, including core skills, geographical reach and the sizes of project you can handle. ‘Either put it in your mail shots or simply keep telling them.’

8. Do not contact clients too often, as counter-intuitive as it may sound. ‘Research shows that contact clients too often and you’ll annoy them, but too little and they’ll forget about you, so aim to get in touch every three months.’

9. Update your website regularly, ideally with a news section. ‘There is nothing worse than a website that is obviously out of date, but you can keep it fresh easily and often at no cost, for example by using simple systems such as Word Press.’

Altered States Marketing advises surveyors on business development. alteredstatesmarketing.co.uk.

Search ‘RICS’ on linkedin.com to join the RICS group of more than 10,000 property professionals.

:9 IDEAS FOR MARKETING

NEIL STANLEY, DIRECTOR OF ALTERED STATES MARKETING

24bn The amount of overdue invoices British small businesses have, according to research by Bacs

43% of FSB members were waiting for payments of between £1 and £4,999 in July

a number of key steps it could take that would help save small surveyors, while bolstering the vital contribution they make to the UK economy.

Banks: given the crucial role SMEs play in the economy, it is vital that they have access to credit to grow, both in terms of new start-ups and expansion of existing businesses. RICS believes that government should be encouraging banks to work in partnership with property developers and construction firms by investing in new development projects. The FSB, meanwhile, advocates creating banks that specialise in small businesses in order to foster more competition in the financial sector around this type of customer.

Tax: RICS has long supported making Empty Property Rate (EPR) relief available for 12 or 18 months before full business rates become payable. This would act as an incentive for landlords to bring property back into use and developers to build new property. The government’s reduction of the rateable value threshold in April from £18,000 to £2,600 is resulting in commercial property being demolished rather than being left available for future use. RICS is working with Lambert Smith Hampton on new research into the impact of EPR which will be published in December ahead of discussions with government in the run-up to the 2012 Budget. RICS also believes reforms are still needed for Stamp Duty and Capital Gains Tax.

The FSB is campaigning for a cut in VAT to 5% for the construction sector, which would lower the cost of procuring work. The FSB argues that evidence from other EU countries shows that any revenue the Treasury lost would be countered by earnings from additional demand, jobs and wider economic activity. RICS has consistently cautioned the government on the risks for the economy associated with VAT increases. This will also impact the retrofitting of the UK’s existing housing and commercial stock in order to improve energy efficiency and deliver the Green Deal.

Procurement: the FSB says public sector clients must be more open to smaller firms. It argues that by breaking down contracts and frameworks into smaller chunks, clients would get the benefit of niche expertise that small surveyors say only they have. Meanwhile, the surveyors would get to share some of the benefits of mega projects such as Crossrail. The FSB also wants public sector clients to demand that

‘I have had to wait 90 days for payments from public sector clients, and I typically wait 30-40 days at best… for me it means being stretched to the limit’


10.11 // MODUS 19

56% of FSB members had written off invoices worth £1 to £9,999 because of non-payment

their private sector customers follow suit.

Payment: Stuart Davidson is among those who would like to see all public procuring bodies – and their private sector clients – be made to follow central government’s implementation of a 10-day payment period under the Prompt Payment Code. The ripple effect of late payments is just too damaging to the economy, he argues.

Construction: many commentators suggest the government should be using the construction sector to stimulate growth in the rest of the economy, either by increasing spending directly or by implementing new mechanisms to attract investment. The logic is compelling: research shows that every £1 spent on construction output generates an additional £2.84 of total economic activity. Over the next 12 months, RICS predicts positive workloads but profit margins to remain negative, reflecting the continuing pressure as input costs rise more rapidly than output prices.

‘Our recent meetings with national and regional boards across the UK were designed to call out the issues members are facing and address them in collaboration. We have staff dedicated to working with the Treasury, the Department for Business, Innovation and Skills and other central

government departments who, thanks to our positioning as an independent voice within the profession, are ensuring our voice is heard at the beginning of policy creation.

‘Mark Walley, Executive Director of RICS UK, and his team, working in partnership with national and regional boards, are live to the issues facing members. We have established a dedicated SME panel and we have closely read the views and opinions on the challenges facing small firms and sole practitioners on the RICS group on LinkedIn and will continue to do so. RICS President See Lian Ong FRICS invites you to contribute your ideas on what steps RICS can take to improve support for SMEs – see page 45 for details.’

Insight

‘RICS SUPPORTS ITS MEMBERS’Richard Moxon MRICS UK World Regional Board Chair


Profile//

I joined the company in 2003 when it was still Bucknall Austin. I led the global merger with Rider Hunt and Levett & Bailey in 2007, and was appointed chief executive. I also sit on the global board. The merger was a huge exercise, but we already got on well and had spent time together. I also looked at how other large corporations, such as KPMG, managed mergers. We are now the largest independent quantity surveyor in the world, but the logistics of overseeing such a large company are actually easy: think small. I make sure the people in charge of local operations are good and that they ask for help when they need it.

My role now is to ask, what next? I look at new regions to target, such as India, the Gulf states and South America. We are already blossoming in China. And although we are now a huge company with more than 100 offices, we try to keep a local outlook, which helps keep people with you. In China, for example, everyone who works for us is Chinese. My role is also to keep improving our service – there is always room for improvement. I think the best way of finding out how we’re doing is to telephone a customer. I am also on the road a lot too, probably for about a week every month, mostly in Saudi Arabia, India and China. I love going away but prefer coming home. I actually don’t care where I am as long as I am working hard.

I got into this business because, even from a young age, I liked buildings. They encourage certain behaviour and I think of them as emotional landmarks. I like knowing why they’re there and what’s going on inside them. I never considered becoming an architect – I was badly behaved at school and actually wanted to be a rugby player. But I ruined my ankle and then found work as a setting-out engineer after studying in London. By the first recession, in the ’90s, I had started to run projects. This current recession has been the single greatest opportunity of my career because we have had to learn how to do more with less. We are very cost aware and I think that’s our key differentiator. We will continue to grow because we’re not overly dominant in any one market – it’s a bit like spread betting.

We work closely with RICS to improve industry standards and ways of working. Our chair David Bucknall also chairs the Quantity Surveyor and Construction Professional Group Board, which provides a direct link to industry and helps us to contribute and share our insights. It was when I moved into my leadership role at Rider Levett Bucknall that I realised just how far-reaching the influence of RICS is, in the UK and globally.

Some projects never end. We’re the retained consultancy for Sydney Opera House and we run a planned maintenance programme there. Theatres and programming have changed since it opened in 1973, so we have to keep looking at new ways forward. It’s a project we never really left. I always like to have a project that I’m quite involved in. I took on one at Edgbaston Cricket Ground where we helped them to find a new partner for a mixed-use scheme at their ground when their first partner pulled out. If they hadn’t found one, they would probably have lost their Test match status, which would have ruined the club. I worked for free for two years to raise the profile of the opportunity, found another developer, secured a loan from Birmingham City Council and got a grant from the English Cricket Board for new flood lighting. I had a tear in my eye when I watched the third Test against India. The only sad thing was that Sachin Tendulkar didn’t get his 100th century. We’re now working with LOCOG [London Organising Committee of the Olympic and Paralympic Games] as project manager, which involves cost consultancy, health and safety and a lot more. I’m very proud to be a part of it. Did I apply for tickets? Yes, and I got them for the rowing. I saw it in Athens and loved it.

‘

’

20 r ics.org

‘The logistics of overseeing a large company are actually easy: think small. I make sure the people in charge of local operations are good and ask for help when they need it’

MODUS_Oct_P20-21_Profile.v3.F1.indd 20 20/09/2011 09:50

10.11 // MODUS 21

1o minutes with…

Chief executive, Rider Levett Bucknall

LANCE TAYLORInterview by Hannah Booth Photograph by Victoria Birkinshaw

Lance Taylor FRICS has been chief executive of

Rider Levett Bucknall since the firm’s merger in 2007

MODUS_Oct_P20-21_Profile.v3.F1.indd 21 20/09/2011 09:50

22 rics.org

Dr Mike Page never intended to create a small house for its own sake – he just wanted to develop an easily transportable exemplar of carbon-neutral living. But when the University of Hertfordshire’s 27

cubic metre Cube House was exhibited at the Edinburgh International Science Festival in April, it caused a sensation. More than 2,000 people took the tour in two weeks, and Page has been inundated with sales enquiries from around the world. ‘We weren’t saying everyone should live in a house this size, but it turns out a lot of people want to,’ he says. ‘Since April, the video has had 750,000 views, and we’ve had enquiries from Australia, America, Canada, Brazil, Japan…’

What Page has inadvertently tapped into is the growing popularity of ‘micro homes’ – fully functioning houses a fraction of the average size. Cities such as

Tokyo are seeing an increasing number of homes measuring just a few feet across that allow young people to move out of their parents’ houses but not out of the city centre. The Small House Society in the US, meanwhile, extols the virtues of living mortgage-free in a home small enough to fit on the back of a truck.

Page is not only an engineer but also a reader at the university’s psychology department, and is now planning to use the Cube to conduct an experiment into what it’s like to live in such a small space. It’s an increasingly important question because, aside from the growing minority of people who are choosing micro homes, all of us are living and working in shrinking spaces as cities become more crowded, and land and property prices continue to rise. In developed countries worldwide, the trend for ever-larger homes fuelled by post-war prosperity seems to have reversed. Meanwhile,

SPACESSHRINKING

MODUS_Oct_P22-27_Shrinking spaces+.v5.F1.indd 22 20/09/2011 10:00

Downsizing//

10.11 // MODUS 23

:TUMBLEWEED XS HOUSE 6m2, plans US$99, build it yourself for US$16,000 or buy ready-made for US$39,000

Proving that not all tiny houses have to look minimal, this is the smallest design from the Tumbleweed Tiny House Company – a miniature, all-American log cabin, complete with a tiny bedroom in the pitched roof. Tumbleweed houses are built on wheels, so they do not require a building permit and don’t have to comply with minimum size building standards. But with hardwood floors, full insulation and double-glazing, they’re not necessarily a cheap option. Their creator, Jay Shafer, says he has only built a dozen of his designs himself, but has sold more than 500 sets of plans.

when people leave their homes to go to work, they are finding less space in the office, too, with rationalisation programmes condensing space by 30-40%.

Of course, ‘small’ is a relative concept, particularly when it comes to houses – the average British or Japanese dwelling would fit several times over in even a relatively humble American home. But even the ‘McMansions’ of the US appear to be shrinking, according to the National Association of Home Builders, which blames the recession for turning the tide of increasing floor space. In 1950, the average American family lived in 91m sq, growing steadily to a peak of 210m sq in 2006. In 2010, it dropped for the first time, to 196m sq. At the other end of the scale, modest Japanese homes have also been getting smaller since the early 2000s. The Japanese government’s most recent housing and land survey in 2008 showed the first drop

in dwelling size since 1968, with the average home now measuring 94m sq, compared to 95m sq in 2003.

Britain already has the smallest houses in Europe, and they are shrinking. In most EU states, basic rules govern quantity of living space and ceiling heights, but in England and Wales, although there are plenty of rules affecting build quality, floor space and ceiling heights are not subject to any legal minimum. And new homes are much smaller than older ones, but with the same number of bedrooms. A policy paper from the Royal Institute of British Architects in 2007 found that the average new home in England and Wales is smaller than it was in the 1920s at just 76m sq, compared to 92m sq in Japan and 115m sq in the Netherlands.

So what impact will our shrinking place in the world have? On a practical level, smaller homes can hamper family life. In 2009, the UK’s Commission for >>

SPACESWITH RAPID URBANISATION AND RISING LAND AND PROPERTY PRICES, WE’RE DOWNSIZING AT HOME AND AT WORK, FINDS KATIE PUCKETT


24 rics.org

Architecture and the Built Environment interviewed the owners of 2,500 private new homes and found that these smaller spaces did not provide enough room for everyday activities, leaving more than half with too little storage space, nearly the same number with too little furniture, and a third without enough kitchen space for basic cooking appliances such as a toaster or microwave.

But micro-home dwellers are actively seeking such simplification. Greg Johnson, one of the founders of the Small House Society, spent six years living in a tiny house in Iowa City with just 13m sq of living space on two storeys. While conceding that it’s not suited to everyone – ‘it definitely requires a minimalist lifestyle’ – he believes that we all need to scale down. ‘There is a pervasive aspect of our society that involves hoarding, compulsive shopping and excessive materialism. This needs to change,’ he says. ‘We as individuals and as a nation are spending more than our means, and this has resulted in a financial crisis like none before.’

Far from feeling claustrophobic, he loved the sense of space. ‘One thing I really like about having a one-room house of any size is that there can be windows on all the walls. It also means that your line of sight goes much farther in any direction. It creates a feeling of being less cramped – a small one-room house with windows feels more open and spacious than a large home where the interior walls limit your vision.’

Jay Shafer of the Tumbleweed Tiny House Company in California is another of the society’s founders, and has been building houses like the one Johnson lived in since 1997. While many of his customers are motivated by environmental concerns – he says the average American house produces 18 tonnes of greenhouse

gases every year – the greatest advantage of a small house is the financial freedom it offers. ‘Now, instead of working for a mortgage or rent, I spend my life living,’ he says. ‘Life itself seems more meaningful in a tiny house because everything in it is necessary.’

But his homes are not necessarily cheap or easy to build, with materials typically costing US$200 per square foot. ‘Small house design is way harder than designing a big house, and up front it will invariably be more expensive per square foot,’ he says. ‘The most expensive parts of the house are generally still included, such as heating, plumbing and appliances, while it is the cheapest part – volume – that is cut. Of course, in the long run it’s that volume that adds undue costs, as it takes a lot to heat, cool and maintain unnecessary space.’ The environmental aspirations of small homes also boost the price – the Cube cost £52,000, much of that accounted for by items such as an air-source heat pump and the photovoltaic panels on its roof.

On the other hand, building less house means you can afford better-quality materials, says Ric Frankland, a Manchester-based architect who has designed a range of micro homes called Dwelle. ‘My door handle is a really nice design, it’s stainless steel and it’s not cheap – but I only have one door so I can afford to be extravagant,’ he says. ‘I don’t think people need a great deal of space to live in, it’s the type and quality of space that’s important. By bringing the size of the building down, you make that quality of construction and design affordable.’

But can it really be healthy to live long-term in such a constrained space? Page is still making the final adjustments to the Cube before the subjects of his psychological experiment move in, but he is already

:HOME DWELLE.ING 43m2, £75,000

Architect Ric Frankland originally designed a gatehouse for a Manchester school but, inspired by tales of people living in sheds in recession-hit Britain, he crossed it with some flatpack eco-homes he was working on and the ‘Dwelle.ings’ were born. The houses are designed to meet level 5 of the Code for Sustainable Homes and PassivHaus standards, with components sourced from recycled or renewable sources wherever possible. But they’re not a hair shirt option – specifications are high throughout, and the double-height living space and 10m3 of storage make them feel surprisingly spacious. The prototype won five architectural awards in 2010, including the People’s Choice Award.


Downsizing//

anticipating the findings: ‘I can guarantee that there will be massive differences, like everything else in psychology. Some people will say, “You must be crazy, how could I live in such a small space?” where others will say, “How nice and cosy.”’

In fact, small spaces play a positive role in human psychology, believes Abraham Thomas, the curator of a 2010 exhibition at London’s Victoria & Albert Museum, which asked seven architects to build small spaces in which to live, work and play at full size within the gallery. ‘I was interested in the power of small spaces for contemplation and reflection,’ he explains. ‘As children, we create little dens in which to play, and we carry that on through adulthood – the classic example is the shed. We seek out small spaces as refuges or retreats where we feel cocooned.’ But while this may explain the cult appeal of the micro house, he’s not sure the effect would work long term: ‘It’s there as a complement to general living, functioning as punctuation in daily life. Otherwise I think the effect is lost somehow.’

The psychological impact of smaller spaces is difficult to separate out from a much bigger social change, as technology breaks down spatial boundaries altogether. Figures on commercial offices from Jones Lang LaSalle reveal that US companies now allocate far less space per employee, down from 500-700ft sq in the 1970s to little more than 200ft sq today. By 2015, it is predicted to be as low as 50ft sq. But in the latest designs, space savings are achieved not by cramming more desks into a smaller area, but by completely rethinking layouts to support more flexible, mobile working patterns.

At office design consultancy DEGW, chief executive Despina Katsikakis believes that companies are only just

‘Instead of working for a mortgage or rent, I spend my life living. Life itself seems more meaningful in a tiny house because everything in it is necessary’

10.11 // MODUS 25

catching up with how working practices have changed since laptops became widespread almost 15 years ago. ‘The more technology becomes mobile, the less time people spend working in one location, and we’re seeing a serious case of underutilisation of office space,’ she says. She finds the highest utilisation rate is typically 40-50%, but taken across a 24-hour period, that means an office building is used less than 10% of the total available time. In a traditional office, there was an 80:20 ratio of individual space to areas for group working. New office designs are reversing that, so the desk space assigned to each employee is much smaller, but they have access to a much greater area than ever before.

At RICS headquarters in Parliament Square, London, a 2008 refurbishment yielded a reduction in space allocated to office use by 15% – while increasing the number of desks. ‘Even in a complex, part Grade II-listed building there were significant gains in space to be found,’ explains project leader Rob Smith of CBRE. ‘The removal of partition walls and the use of modern desk and integrated storage systems enabled us to house staff in a more logical way on fewer floors, while retaining >>

:CUBE HOUSE 27m3, £52,000

Designed by engineers at University of Hertfordshire, this 3m x 3m x 3m home provides everything that a single person – or two extremely compatible people – would need to live a self-contained, carbon-neutral life. Somehow, it manages to provide a lounge with a table and two chairs, a small double bed, a full-size shower, fully equipped kitchen, washing machine and composting toilet, with a 2m standing height throughout – although if you want to go up the space-saving staircase, you have to remember to start with the left leg or you’ll trip up when you get to the top.


a healthy desk-to-floor plate ratio. At the same time, RICS adopted more flexible working practices. For example, senior staff – who tend to travel more – gave up their desks and now log on at vacant workstations. While occupational density increased, perceived density was reduced. This freed up the ground floor for venue space, smoothed the flow of people around the building, and simplified security management which, given RICS’ location, was a key priority.’

Peter Hogg MRICS, partner and head of public sector consultancy at EC Harris, says he has helped companies to cut their office space by anything up to 67%. ‘People were used to there being two or three kinds – offices, open-plan areas, meeting rooms – but now there are many different styles of workspace designed for what different people need in order to do their work well,’ he explains. An organisation in outer London consolidated from satellite offices to one central workplace and implemented agile working methods, which saved 900,000 miles per annum in commuting between different sites. ‘If you think about the time and cost saved, and the environmental benefits, that’s a substantial result,’ says Hogg.

The psychology of smaller spaces is also impossible to separate out from a sense of greater transience. Smaller homes can often be moved more easily, and their occupants are unlikely to be able to remain in them for long if their lifestyle changes. Within the modern office, spaces are more likely to be demountable so they can be quickly rearranged, says Hogg, and people who don’t have their own desk can be more easily moved around the building. ‘If people have a significant amount of space, and it’s allocated so that individuals have a proprietorial claim, with photos of their kids on the desks, then it becomes very hard to change the way they use the space because it’s very personal,’ he says. ‘If people don’t have that sense of propriety, it’s much easier. Psychology is very important, and organisations underestimate it at their peril. We advise clients to be in no doubt that if you

move to this kind of environment you’re taking stuff away from people, and they will perceive that they’re losing space. You’ve got to show them what you’re giving them, in terms of making it easier for them to do their work and to succeed.’

Katsikakis compares individuals’ new relationship with space to living in a city centre rather than a suburb – in central London, people may live in small flats but they share vast parks with other people, rather than their own private garden. ‘We are reducing the space for individually assigned desks, but not per employee. We’re giving employees access to the whole office, so the space for the individual has increased exponentially.’

And when you consider that we can work from home, from another country – from anywhere we like – space doesn’t seem to be shrinking at all: ‘We are connected to the world, we are physically somewhere but we are virtually everywhere.’

:ARCHIPOD 2.9m diameter, 2.5m high, £15,000

Drawing on his 13 years of experience at prefabrication specialist Yorkon, designer Chris Sneesby wanted to create an eco garden office that would allow people to work more sustainably from home. An alternative to the traditional garden shed, its unusual shape is intended to appear to take up the least possible space, while its widest point is at seated-head height so that it feels surprisingly big inside. It’s also very quiet, with high-performance insulation and cedar shingles, and filled with natural light from the roof dome.

Downsizing//

26 rics.org

:MAHINDRA NANO HOUSE 7.2m2, £197

This home may be tiny, but it was created to fulfil a grand ambition: to solve the world’s housing crisis and provide a warm, safe, affordable alternative for the 2bn people living in slums around the world. The winning corporate entry in Harvard Business Review’s competition to design a house for US$300, the Nano house from Indian automotive company Mahindra has bamboo walls, fibre roofing and a mud floor and can be built anywhere from local materials.


Law advice//

Narrowing the scope of

DUTY OF CAREIllustration by Dale Edwin Murray

It is fi tting that the courts have narrowed the scope of the duty of care owed by surveyors in time for discussion in this ‘small’ themed issue. For surveyors in the buy-to-let market, the decision could, perhaps, just as appropriately have been reported in last month’s ‘happiness’ issue. In a landmark decision in the recent case of Scullion v Bank

of Scotland, the Court of Appeal ruled that a surveyor did not owe a duty of care to an individual buy-to-let commercial investor in respect of a valuation instructed by the lender. In the fi rst instance, the High Court held that a duty of care was owed, but the Court of Appeal, while accepting that the borrower had relied upon the valuation, held that: this reliance was not foreseen by Colleys (the surveying fi rm involved); the necessary proximity between the parties was not present; and that it was not fair, just or reasonable to impose liability.

The Court of Appeal appears to have taken the view that while ‘standard’ residential purchasers deserve legal protection for public policy reasons, the same consideration does not apply to commercial investors. The latter should now be advised to protect their own interests by instructing their own reports. In order for a

duty of care to arise, it is no longer sufficient to rely upon a report that was instructed by the lender.

The broader impact of the Court of Appeal’s decision may well limit the doctrine in the leading 1990 case of Smith v Eric S Bush, where a private housebuyer was able to rely upon a surveyor’s

inaccurate survey, even though it was addressed to his lender. There will continue to be scope for further discussion and debate, for example, on the issue of at what stage (if any) the value of a property takes the transaction outside the Smith v Eric S Bush duty of care. But the latest decision in Scullion v Bank of Scotland will assist surveyors, and those representing them, in narrowing their duty of care to purchasers.

Another issue addressed in Scullion is how damages are calculated following a negligent rental valuation. Given that it found no duty of care was owed, the Court of Appeal did not consider damages in any detail. However, it did suggest that the High Court’s calculation of damages, which had been based on the borrower’s outgoings during his period of ownership less rents received, was too high. The difficulty in calculating damages lay in the High

Court’s fi nding that only the rental valuation had caused loss to the borrower. That took the case outside the standard method established in the leading 1996 SAAMCO (South Australia Asset Management Corpn v York Montague Ltd) case, which in effect ‘caps’ the damages recoverable from a negligent capital valuation at the difference between the valuation provided and the true market value (at the date of the original valuation). This ensures surveyors are not held liable for losses attributable to subsequent falls in the property market. The Court of Appeal suggested that the principles of SAAMCO should still be applied to rental valuation cases – but exactly how this ought to be done remains unclear, and it is likely to vary depending upon whether the claimant is a lender or a borrower.

In terms of claims against surveyors more generally, recessions have the double impact of increasing the likelihood of default by borrowers while simultaneously reducing the probability that any losses suffered by lenders will be covered by the value of their securities. Many lenders now have entire teams working exclusively on reviewing historic survey reports, which means, unfortunately, that the number of claims against surveyors will not reduce for the foreseeable future. However, there are some positive indicators for surveyors defending such claims: subject to appeal to the Supreme Court, the Court of Appeal’s decision in Scullion has effectively put an end to successful claims by buy-to-let investors relying on survey reports instructed by their lender.

ADAM MCKINLAY is a solicitor with Brodies LLP. brodies.com

For RICS advice on the case, visit rics.org/dutyofcare. For tips from RICS-preferred insurance provider Howden on what to do when facing a claim, visit rics.org/howden.

10.11 // MODUS 27

SCULLION HAS PUT AN END TO SUCCESSFUL CLAIMS BY BUY-TO-LET INVESTORS RELYING ON REPORTS INSTRUCTED BY LENDERS


28 r ics.org

INDONESIAINDONESIAINDONESIA

BEYOND BRICS

POPULATION

4.3% 6.1% 6.8%

44.7 million 245.6 million 90.5 million

1.7%annual rate of change (2010-2015)


3%annual rate of change (2010-2015)

POPULATION POPULATION

URBANISATION URBANISATION URBANISATION

£78m – the cost of BD Bacatá, two mixed-use skyscrapers under construction in the capital Bogotá, expected to complete in 2013.

Spending on construction is expected to reach US$1.4bn (£900m) in 2015.

Construction growth rate is expected to record 6.5% up to 2015.

The construction market is set to grow by £113bn by 2020.

Jakarta’s total apartment stock is expected to reach 120,000 by 2011, according to Colliers International (from 75,000 in 2010).

70% of Vietnamese people live in either semi-permanent or temporary wooden houses without proper housing facilities.

COLOMBIA INDONESIA VIETNAM

GDP GROWTH (2010)GDP GROWTH (2010) GDP GROWTH (2010)

Illustration by Francesco Muzzi

WHILE THE SPOTLIGHT IS ON THE BIG-HITTING BRIC ECONOMIES, THE GROWING CIVETS PRESENT OPPORTUNITIES FOR PROPERTY AND CONSTRUCTION FIRMS

MODUS_Oct_P28-29_CIVETS.v3.F1.indd 28 20/09/2011 10:03

10.11 // MODUS 29

CIVETS economies//

INDONESIAINDONESIAINDONESIA

EGYPT TURKEY SOUTH AFRICA

5.1% 8.2% 2.8%

82 million 78.7 million 49 million



1.2 %annual rate of change (2010-2015)

POPULATION POPULATION POPULATION

URBANISATION URBANISATION URBANISATION

Residential construction spending will increase to US$606m (£370m) by 2015.

Construction spending will grow by £51bn to 2020.

The construction industry is expected to grow 3-4% year-on-year from 2011-2014.

Egypt plans to invest US$110bn (£67.5bn) in the power sector by 2020, with the target of 20% of power to be generated by renewables.

US$1bn – the cost of RMJM’s 372,000m sq Varyap Meridian residential and business scheme for Istanbul, to be completed in 2012.

Over the next three years, around US$120bn (£73.6bn) will be spent on new power stations, roads, dams and other infrastructure.

Share of construction spending by

development states in

2005-2020

Developing countries 35%

Developedcountries 65%

Developedcountries 45%

Developing countries 55%

2005 2020

GDP GROWTH (2010) GDP GROWTH (2010) GDP GROWTH (2010)

MODUS_Oct_P28-29_CIVETS.v3.F1.indd 29 20/09/2011 10:04

30 rics.org

Words by Brendon Hooper

MODUS_Oct_P30-33_Vietnam.v3.F1.indd 30 20/09/2011 12:38

10.11 // MODUS 31

Vietnam//Im

ages

aap

hoto

.vn


transferred from London to the firm’s newly opened Vietnam office last year. ‘There are some great prospects for disciplines such as valuation, agency and development consultancy.’

But, despite the seemingly endless growth and increasing opportunities in the construction sector, concerns remain over the country’s high inflation and shortage of credit, as well as persistent problems with corruption and a lack of transparency – one area where RICS members are keen to have a positive influence in raising standards.

There are around 50 chartered surveyors in Vietnam, with half involved in commercial property, a third in quantity surveying and construction, and the remainder in project management, building surveying, geomatics and dispute resolution. Last December, RICS established a representative office in Ho Chi Minh City, where the majority of members are based. Industry and construction accounts for nearly half of the city’s 12% GDP growth, and demand for professional standards is high. ‘Like most places today, Vietnam’s property market is currently very challenging for investors, developers and individual owners,’ says Paul Mason MRICS, Chair of RICS Vietnam. ‘Financial pressures are creating an increased awareness of, and need for, quality advice, and we’re seeing more clients who wish to take advantage of the professional services we offer here.’

GROWTH POTENTIALDavid Lockwood FRICS, general director at Turner & Townsend in Ho Chi Minh City, believes Vietnam is an ideal place for RICS to expand. Not only in order to promote ethics and standards in a growing market, but also to help develop forthcoming generations of local professionals – particularly as around 70% of Vietnam’s population is under the age of 35.

‘Many locals in the industry are seeing the value of being part of a large international professional body that encourages structured and continued learning throughout one’s working career,’ he says. ‘They see that being a member of RICS will improve their chances of career progression not only in Vietnam, but perhaps one day overseas.’

Previously a closed market, the Doi Moi (open door) reforms of 1986 opened up the Vietnamese economy to the rest of the world, setting in motion a period of rapid industrialisation. In 1991, industry and construction accounted for 23% of the country’s GDP – by 2008 this figure had grown to nearly 40%. In 2007, improved political stability and the government’s encouragement of foreign investment allowed Vietnam to join the World Trade Organization. Since then, economic progress has been remarkable – even after the global downturn of 2008, the country reported growth of 6.2%.

Three factors are driving this strong growth. First, although Vietnam is still a communist country, the state is beginning to account for a smaller share of GDP, leaving more space for the private sector to grow. Second, political stability has enabled foreign investors to operate securely, when they may have previously invested in neighbouring countries such

32 rics.org

Once a war-ravaged land, Vietnam has become a fast-developing market in a very short space of time. The country’s GDP grew by 6.5% in 2010, and has averaged an astonishing 7% over the past

decade, leading UK Trade & Investment (UKTI) to call it a ‘late-starting East Asian miracle’. In 2009, Davis Langdon ranked Vietnam as the world’s fourth-fastest growing construction market, while Business Monitor International predicts the industry will grow by 8.5% to US$8.5bn (£5.2bn) this year.

As many of the world’s construction markets struggle with recession, firms and individuals alike are attracted by the unending strong signs of growth coming from the country. John Harris, an associate director in project management at CBRE, moved to Ho Chi Minh City last year. ‘I had been in Dubai for two-and-a-half years and was looking for a more interesting place to live,’ he explains. ‘I used to work in Hong Kong and wanted to come back to Asia, but Vietnam cropped up again and again in conversations, so after reading about it, the potential for the move was obvious.’

Harris, who thinks Ho Chi Minh City is ‘the most beautiful in Asia’, is mainly involved in project managing office fit-outs and pre-acquisition survey work in Vietnam’s largest city. Setting up in the country was easier than in the Middle East, he says, but more difficult than in advanced markets such as Hong Kong. ‘Getting a trade licence takes two months here, compared to four days in Hong Kong and about eight months in the UAE.’

With strong long-term growth prospects and an improved legal framework, it is easy to see why a 2010 survey by UKTI found Vietnam to be the top investment destination outside the larger BRIC economies for the third year in a row. ‘There is a lot going on here in the way of project development, land reforms and industrial growth, which offers so many opportunities for surveyors,’ says Craig Wallace MRICS, manager in valuation, consulting and research at DTZ in Ho Chi Minh City. Wallace

FPT City, Danang

One of the most successful architecture firms in Vietnam is Skidmore, Owings & Merrill (SOM). Better known for its super-tall skyscrapers (the firm designed Dubai’s Burj Khalifa), SOM has four masterplan projects in the country. Its most recent masterplan win is for a new sustainable city to be built on the edge of Danang, a port near the centre of Vietnam. Named FPT City, the design has been commissioned by national IT company FPT to house many of its 10,000 employees and their families, with expansion space for around 20,000 more. At the heart of the plan is SOM’s vision for a campus for FPT University, which will specialise in computer and telecoms training for employees. FPT also plans to provide ‘smart infrastructure’ such as high-speed broadband to every business and household.


as China and Thailand. Third, a growing labour force moving from rural areas to cities is proving attractive for major industries, leading to rapid urbanisation and a boom in infrastructure and housebuilding.

According to the World Bank’s Doing Business report, Vietnam has overtaken China and India as a place to invest and grow business. Continuing reforms from the communist government, such as placing more emphasis on long-term foreign investment, are helping to boost infrastructure projects. And last year, Nguyen Phu Trong, the newly elected General Secretary of the Communist Party of Vietnam, announced a plan to turn the country into a modern industrialised state by 2020, much of which will involve spending around US$50bn (£30.3bn) on upgrading infrastructure and increasing domestic electricity production.

Lockwood, who was in the first ‘wave’ of expatriates working in Vietnam in the mid-1990s, says it is generally not too problematic for foreign firms to enter the market, so long as their activities are in line with the social, political and cultural aspirations of the country’s 2020 vision for modernisation. Over the past 15 years, he has seen substantial changes in the property market. ‘In the mid-1990s, foreign investors largely led commercial and residential developments, while local firms provided only the land as part of the investment capital,’ he says. ‘With the emergence of Vietnam’s export-driven economy, many local developers were able to gain finance and acquire real estate as a means to raise profile and make handsome returns.’

But with high inflation, high interest rates and a recent credit squeeze, current conditions are making it difficult for local commercial and residential developers to obtain finance. So international firms are once again gaining a foothold in selected projects, sometimes by taking equity positions or taking over distressed assets currently under construction. The market is becoming more mature, with both local and international developers producing higher-quality projects. ‘The main concern at the moment however, is where the demand is going to come from for these developments,’ explains Lockwood, ‘as there seems to be an oversupply of residential units and office space in the two main urban centres of Ho Chi Minh City and Hanoi. This will mean that only more market-oriented developments with unique selling points will succeed.’

GOOD PRACTICEAlongside the construction boom, problems with corruption and transparency persist. A World Bank report in 2009 stated that widespread corruption still represented a serious problem in Vietnam, noting that 48% of companies say they expect to give gifts in order to get a construction permit. Last year, Vietnam was ranked 116 out of 178 in Transparency International’s Corruption Perceptions Index, although some areas are vastly improving. For example, the country is ranked 43 out of 163 by the World Bank for registering property good practice, while neighbouring Laos is at 163.

Vietnam//

‘Transparency is the big one, and that’s a moral dilemma for properly trained guys like us,’ says Harris. ‘In the end we must resist pressure to do things that try to circumvent good practice. It’s a case of “If you want us on the job, we’ll do it the right way or not at all.” However, in my experience, strict adherence to building regulations is improving, and safety generally is too.’

Lockwood agrees that safety standards are improving all the time. ‘Safety is of paramount concern to the authorities, who are not only aware of the human cost, but also of the negative publicity accidents can generate,’ he says. ‘Additionally, new laws are ensuring that only suitably qualified and experienced firms and individuals are responsible for checking and approving construction works.’

Despite the professional challenges and differences to more developed markets, Vietnam will remain an enticing prospect for some time to come, particularly as the Vietnamese authorities and private firms alike are very receptive to foreign influence, so long as local practices are not infringed.

‘It’s important to remember to blend in and embrace the culture, no matter how difficult, different or slow it may be at times,’ says Lockwood. ‘When facing a challenging situation, I’d advise using the local expression “khong sao dao”, which means “nothing to it!”’ ricsasia.org

Keangnam Hanoi Landmark Tower, Hanoi

Vietnam’s tallest building is due to be completed this year in the Cau Giay district of Hanoi, a new business zone that encourages major companies to set up in the capital. A complex of apartment residences and office towers, its total floor area is expected to exceed 579,000m sq, giving it the fifth-largest floor area of any single building in the world. Designed by a consortium of architects including Heerim, Samoo, Aum & Lee and HOK, the complex has been funded by South Korea-based construction firm Keangnam, which is investing more than US$1.05bn (£611m) in the project to create a five-star hotel, offices, apartments, retail outlets and a convention centre. The central tower topped out earlier this year at a height of 336m.

Imag

e H

OK


34 rics.org

MODUS_Oct_P34-39_Startup companies_v2.F1.indd 34 20/09/2011 10:08

Start-up firms//

Dalen Strategies Ltd, London, UKSustainability and carbon consultancy

Dalen was founded as a response to the growing demand for specialist sustainability advice from property owners and occupiers. ‘Although the general economic environment is currently very challenging, we have found most people in the real estate sector understand that sustainability, as both a regulatory and environmental issue, is here to stay,’ says co-founder Sam Pickering, who set up the company with James Pack in April 2011. Both ex-military, Pickering and Pack entered the property profession at the end of their commissions.

Their focus, they say, is to show clients how to make sustainability part of their company culture, so that it becomes ‘a process that can drive their decision-making to enhance long-term profitability’, rather than simply ‘another legislative framework.’

The company’s first instruction was the ever-expanding Mexican restaurant business, Wahaca. They now carry out all the chain’s sustainability services, from environmental assessments such as Ska Rating and BREEAM on new restaurants to achieving zero waste to landfill from operations.

The intention is to build Dalen into a sustainability consultancy that operates throughout the world, ‘ensuring any company, either a specialist in real estate or simply an occupier of space, understands how to make sustainability part of their everyday decision- and policy-making’, says Pickering. The boon of having your own company is that you can be responsive to the market at all times, he adds, admitting that the trick will be to expand the firm while maintaining this light-footed approach.dalenstrategies.com

10.11 // MODUS 35

Southern Valuation and Consultancy, Dunedin, New Zealand

Commercial and residential valuation

The founders of Southern Valuation received a phone call from a mortgage broker at midday on Christmas Eve, asking if they could inspect a property that afternoon and have the report ready three days later. ‘We could and we did,’ says Adam Binns MRICS. The broker was so impressed, he says, that the firm now gets all his referral work. ‘That one relationship kept our business afloat in the first year. Without that work we could not have survived.’

This is a two-strong husband and wife team: registered valuer and chartered valuation surveyor Adam, and Lynne Binns, who has worked in administration in the property sector. The couple emigrated from the UK to New Zealand in 2004, and set up their business in September last year after running it part-time while Adam was employed as an investment property portfolio manager for Dunedin City Council.

‘The economy in New Zealand at the time was tough, but nowhere near as bad as in other parts of the world,’ says Adam. The couple spotted a gap in the valuation market in Dunedin ‘and decided to take advantage of a (hoped for) economic upturn’. Theirs is the only firm of chartered valuation surveyors in the city of 12,300 people – and, they believe, in New Zealand. So they have a broad brush, working with commercial, residential and lifestyle clients. The next move is to take on another valuer to help them grow the business – particularly in commercial property – and increase turnover.southernvaluation.co.nz

The Doré Group, San Diego, USReal estate advisory and valuation

After 28 years as a real estate consultant and valuer in the US and overseas, Lance W Doré FRICS teamed up with Richard Anderson – also a real estate consultant and valuer of 20 years’ standing – to found The Doré Group in August 2010.

‘In a climate of economic distress, real estate consulting is greatly needed to assist clients with work-outs, modifications and due diligence, as well

TIMES MAY HAVE BEEN TOUGH OVER THE PAST FEW YEARS –BUT THAT DIDN’T STOP THESE

SURVEYORS SETTING UP THEIR OWN SMALL BUSINESSES. CLARE DOWDY DISCOVERS

10 SUCCESS STORIESIllustration by Oscar Bolton Green


WE FELT THAT BIG BUSINESSES WOULD STRUGGLE TO COPE WITH THE SEVERE DOWNTURN, BUT THAT A NIMBLE FIRM COULD CAPITALISE ON THE SITUATION

as litigation support,’ says Doré. ‘When the economy improves, the consulting and valuation work transition toward transactional work.’ Hence their focus on complex real estate and valuation issues, serving legal, governmental and corporate clients.

It was a big bankruptcy case in New York City involving General Growth Properties and Howard Hughes Estates that put the firm on the map. Doré, who was retained by law firm Ropes & Gray (which was acting for Howard Hughes Estates), describes it as a partnership dispute over the bankruptcy of Summerlin, a 7,500-acre masterplan project in Las Vegas. ‘There was a significant amount of litigation support for the parties to determine the correct strategy and valuation issues to assist my client,’ he explains. The case concluded with a favourable result for his client, with an award of US$230m – including US$10m in fees, shared between all the consultants.

Over the next five years, The Doré Group hopes to mushroom from its current staff of six to between 10 and 20 offices. In the meantime, Doré is juggling ‘the many hats you are needed to wear’ as the president and CEO of a small business, from human resources and accounting to quality control, technology, marketing and deliverables. Even so, he says, he is enjoying ‘not having to conform to a larger mission statement or profit requirement that may not necessarily meet my clients’ or my firm’s needs’.thedoregroup.com

Personal Touch Surveying, Wakefield, UK

Residential surveying and energy consultancy

In May 2008, the UK housing market was starting to decline and the economy was entering recession. Three-and-a-half years on, Personal Touch Surveying has a senior management team of four, 31 chartered surveyors across the country, and a six-strong central support team. ‘We set up because lenders and panel managers were seeking independent and quality surveys on a national basis,’ explains co-founder Dev Malle. ‘We were confident

36 rics.org

that we could deliver these requirements, underpinned by a strong focus on quality.’

Personal Touch Surveying is a wholly owned subsidiary of Personal Touch Holdings, where Malle is sales and marketing director. This means the company can be quick to respond ‘with the benefit of a corporate sitting behind us in the guise of our parent’. For Personal Touch Surveying, it’s all about quality. ‘We undertake customer satisfaction surveys, and 100% of the feedback we have received rates our service as good or excellent,’ says Malle.

The firm’s core business is residential surveying, but it has also added energy compliance and consultancy in the hope that these additional services will keep it ahead of its competitors. To date, the company’s most significant project is the delivery of 1,200 commercial Energy Performance Certificates for Ernst & Young. The firm’s vision is to be the leading property surveying and environmental consultancy, relied upon by both property professionals and consumers.personaltouchsurveyors.co.uk

Cavendish Maxwell, DubaiCommercial property valuation

In October 2008, when Cavendish Maxwell was founded, the Dubai property boom was in full swing – but Jay Grant MRICS and Adam Wellfair MRICS were expecting an imminent reversal. ‘We felt that big businesses would struggle to cope with the severe downturn, but a nimble firm with minimal overheads could capitalise on the situation,’ explains Grant.

Some firms did end up scaling back or closing completely. ‘We positioned ourselves to benefit from this and won a number of instructions as a result,’ Grant says. But he admits that they were surprised by the severity of the downturn. ‘It didn’t so much slow down as stop completely. Literally overnight.’

At the time the two Brits set up shop, ‘the requirement for residential property valuations was effectively eliminated, with banks ceasing to extend credit facilities in order to safeguard their own balance sheets,’ says Grant. So they concentrated on commercial property valuations, and now carry out valuations for 15 banks across the region.

The pair’s resilience has paid off, and they are now 10-strong and have just bought their own office – at a quarter of its 2008 value, according to Grant. It’s been tough but worth it for Cavendish Maxwell. ‘We both left relatively well-paid positions and our combined salary during our first six months was zero,’ Grant says. ‘But we saw an opportunity to start something out of nothing and were prepared to make huge sacrifices to be successful.’cavendishmaxwell.com


I LOVE WHAT I’M DOING AND THIS GIVES ME AN ENORMOUS POWER EVERY DAY. OTHERWISE IT WOULD NOT BE POSSIBLE TO WORK 12 HOURS A DAY, SEVEN DAYS A WEEK

10.11 // MODUS 37

Mocuntia Property Consulting, Schondorf/Ammersee, Germany

Technical asset management

Mocuntia’s founder, Bernd Rosoly MRICS, was a victim of the economic downturn. A building surveyor and civil engineer by trade, he found himself unemployed in 2009, and set up as a freelance consultant for major consulting firms. ‘It was amazing how soon I was in a direct contractual relationship with my first major client,’ he says.

Mocuntia now operates with six freelancers, and prides itself on being fleet of foot, starting site surveys and data room checks just a day or two after winning a job. The firm’s focus is the technical transaction service in the real estate sector – an expertise Rosoly built up over 10 years.

‘I’m developing a very detailed checklist for real estate site surveys and a programme of how to do a test-driven development. More and more clients are asking for our technical transaction service because they realise that many investors and funds bought “rubbish” prior to the big economic crisis and have a lot of technical problems with the properties today. In order to avoid the same problems they now want a more detailed technical survey.’

Rosoly’s ambition is to be 20-strong in the next few years, developing additional services along the way and strengthening customer loyalty. He also hopes to attract more international clients who want to invest in the German real estate market.

Unsurprisingly, the greatest upside to starting his own business is that no-one can fire him. ‘I’m free to do things that are impossible as part of a big firm. I love what I’m doing and this gives me an enormous power every day. Otherwise it would not be possible to work 12 hours a day, seven days a week.’mocuntia.com

McNeil Commercial, Bath, UKCommercial property

Jamie McNeil MRICS simply decided he didn’t want to work for a big organisation any more. ‘I was billing well, and thought that even if I bill a 10th of this in my first year we could survive financially.’

He claims the economic climate of October 2009, when he starting trading, was irrelevant. ‘There are always going to be reasons not to start a business,’ he says. His model is structured around people’s desire to save money, which is appropriate for a tough marketplace. ‘My fees are generally based on a percentage of what I save my clients,’ he explains, although he is equally happy to work on an hourly rate, retainer or fixed fee.

The company’s raison d’être is to help commercial property occupiers, and McNeil specialises in service charge work. ‘When I was managing property for landlords, I saw a lot of occupiers pay more than they should have because they weren’t getting excellent advice. There is still a lot of dissatisfaction from occupiers with regard to how service charges are operated and administered.’

Interestingly, he made a conscious decision to start completely from scratch and not bring business or clients with him: ‘It was a sink or swim situation and that was what I wanted.’ He spent the first month cold calling and meeting people. ‘I was fortunate that Subway, Hobbycraft and discount retailer The Range gave me a chance to show what I could do.’ They all became clients. He hopes to have a £1m turnover in five years’ time, but in the meantime is enjoying being ‘master of my own destiny’.mcneilcommercial.co.uk

Darwin Construction Contracts and Costs Consultancy, Hong KongConstruction valuation and contracts

Daniel Sum MRICS benefited from low rent and start-up costs when he established his business in 2007. At the time, Hong Kong was just recovering from the recession following the 2003 SARS epidemic. He focuses on providing surveyors’ services to contracting SMEs in Hong Kong’s building and construction industry, many of whom

Start-up firms//


38 rics.org

Start-up firms//

don’t have such services in-house. ‘We advise our clients not just on the construction costs valuation of their works, but also on construction contracts so they have a comprehensive understanding of their financial and contractual position,’ he explains.

The firm was launched with a project for a glass reinforced fibre concrete contractor in Hong Kong; Darwin provided consultancy on quantity surveying and construction claims for the specialist contractor on the Venetian Macao hotel and casino resort.

Sum can see myriad benefits of running his own show, from being the main decision-maker to not having to share the financial rewards with shareholders. But he admits that clients sometimes have more confidence in bigger, more established firms, and says it can be ‘hard to find the suitable clients and difficult to build confidence in clients’. More established businesses also ‘have a higher bargaining power with the clients over the prices of works’. Despite this, he hopes to grow Darwin from a two-strong outfit into a medium-sized firm with at least 10 specialists.

Black Olive Ventures, IndiaDevelopment management

In June 2011, the property market in India was flat. Too many projects had been launched and execution was proving a challenge for many developers. In the midst of this gloomy economic market, and with a second recession forecast, Sunil Agarwal FRICS and Naveen Garg saw an opportunity for ‘owner representation’ in real estate development.

‘Many people had burnt their hands by getting into the wrong projects at the wrong time,’ explains Agarwal, an urban planner and civil engineer. ‘Real estate development was considered an easy side business, without any real skill involved, and matured players could not hire a good team of professionals.’ They also anticipated that, in the long term, there would be a strong demand for real estate in India for the next 15-20 years.

With their combined experience – Garg is an architect and project manager – the pair founded Black Olive Ventures (BOV), which specialises in owner representation. ‘The key is empowerment in decision-making, and that comes from the approach of being the owner’s representative rather than a service provider,’ says Agarwal.

So far, BOV has little competition, and the company employs a unique combination of people who can cover development from all sides of the table. Currently involved in four major development projects with Supratik Estates, their aim is to have around 12-15m sq ft of projects under their

management within the next five years. ‘The challenge is that, while there are many takers for the service, the industry benchmarks have not yet been set,’ says Agarwal. ‘However, we anticipate that more and more landlords and funds will now opt for a development manager over a classic developer.’

Earl Kendrick Associates, London and south-west England, UK

Building surveying, interior design and project management

Julian Davies MRICS says he hit a ceiling at his previous firm, being a director but not a shareholder. So he set up on his own in February 2011, when the market was gloomy and uncertain. But for Davies, this was an advantage: ‘I saw it as a good time to set up a small company, providing an expert service while offering competitive fees because of my low overhead base,’ he explains. Earl Kendrick’s focus is on high-quality residential property, from large developments to private residences.

The personal service that Davies can offer suits premium clients, many of whom have busy lifestyles or are from overseas. ‘I often take calls at night or over the weekend,’ he says.

A key premium client is a prime residential estate in Kensington, London, where Davies is retained as surveyor. The company has carried out various major improvement schemes, including the refurbishment of the pool area and an internal communal lobby, which involved working alongside a top-end interior designer.

Over the next five years, Davies hopes to ‘build a brand that is recognised as providing the highest quality services in the sector,’ as well as setting up a base in south-west England and possibly expanding overseas. So far, he is enjoying having control over the direction of his firm but admits to working long hours, always with a degree of uncertainty.earlkendrick.co.uk

I SAW IT AS A GOOD TIME TO SET UP, PROVIDING AN EXPERT SERVICE WHILE OFFERING COMPETITIVE FEES BECAUSE OF MY LOW OVERHEAD BASE

the logo is intended to bleed off the top left hand corner of the page. the dots should line up withthe page edge, allow 3mm bleed and pull in the picture box to hide the dots.

PASSIONATE ABOUT THE BUILT ENVIRONMENT?We are … and we have been for 90 years. Our industry expertise allows us to provide specialist courses for property and construction professionals, by supported distance learning.

We offer diploma, undergraduate and postgraduate courses. Degree courses are awarded by the University of Reading and the Open University, and accredited by RICS, CIOB and other professional bodies.

• BSc(Hons) in Building Services Quantity Surveying, Building Surveying, Construction Management, Estate Management, Property Management and Quantity Surveying

• Diplomas in Construction Practice, Surveying Practice and Shopping Centre Management

• MBA in Real Estate and Construction Management

• MSc in Real Estate

• Postgraduate Diploma in Adjudication

• Postgraduate Diploma in Arbitration

• Postgraduate Diploma/MSc in Conservation of the Historic Environment

• Postgraduate Diploma/MSc in Facilities Management

• Postgraduate Diploma/MSc in Property Investment

• Postgraduate Diploma/MSc in Surveying (Graduate Development Programme)

• RICS Postgraduate Diploma in Project Management

To further your career call 0800 019 9697 (quoting ref. MD11), email [email protected] or visit our website.


the logo is intended to bleed off the top left hand corner of the page. the dots should line up withthe page edge, allow 3mm bleed and pull in the picture box to hide the dots.

PASSIONATE ABOUT THE BUILT ENVIRONMENT?We are … and we have been for 90 years. Our industry expertise allows us to provide specialist courses for property and construction professionals, by supported distance learning.

We offer diploma, undergraduate and postgraduate courses. Degree courses are awarded by the University of Reading and the Open University, and accredited by RICS, CIOB and other professional bodies.

• BSc(Hons) in Building Services Quantity Surveying, Building Surveying, Construction Management, Estate Management, Property Management and Quantity Surveying

• Diplomas in Construction Practice, Surveying Practice and Shopping Centre Management

• MBA in Real Estate and Construction Management

• MSc in Real Estate

• Postgraduate Diploma in Adjudication

• Postgraduate Diploma in Arbitration

• Postgraduate Diploma/MSc in Conservation of the Historic Environment

• Postgraduate Diploma/MSc in Facilities Management

• Postgraduate Diploma/MSc in Property Investment

• Postgraduate Diploma/MSc in Surveying (Graduate Development Programme)

• RICS Postgraduate Diploma in Project Management

To further your career call 0800 019 9697 (quoting ref. MD11), email [email protected] or visit our website.


Subsidence threat: be preparedThe dry weather this year will be the cause of subsidence damage to buildings, particularly those founded on clay or close to trees.

Written by a team of structural engineers, civil engineers and chartered surveyors, Subsidence of low-rise buildings has sold thousands of copies and continues to be the seminal independent multi-discipline publication on the subject of subsidence damage in all its aspects.

For a limited time only, the price of this publication has been reduced from £40 to £30! But hurry, this offer ends on 25 November 2011. To purchase your copy visit http://shop.istructe.org or call 020 7235 4535.

o secure your place please isit

.cml.org.uk events

Confi rmed speakers include:

Price:

£3 5 mem ers e empt

CML’s 6th annualmortgage valuationscon erence

16 November 2011 | Londoncon erence time 0900hrs - 1630hrs

he practical programme will include a loo at aluer raud, aluer qualifi cations, RICS independent report on pro essional indemnity, plus an interacti e ta le discussion where you can share with other delegates the ma or challenges a ecting your organisation

i e am ert,senior manager - pro essional ser ices, Colleys, Lloyds Banking Group

Simon Bayley, ris operations leader, GE Money Home Lending Ltd

James Sherwood-Rogers, managing director, Quest

The Council of Mortgage Lenders, the trade association for 94% of the mortgage lending industry, has organised this conference to bring together lenders, valuers and surveyors to discuss all the issues and problems currently facing the surveying profession.

£485 non-mem ers e empt

40 rics.org

MODUS_Oct_p40-41_Bus_adv_v1.F1.indd 40 20/09/2011 10:11

How to

START YOUR OWN BUSINESS

Business advice//

Starting your own business can be a life-changing event. But the physical and emotional demands, and the level of commitment required, should not be underestimated. There will be challenges, but with careful planning, support, perseverance and a few late nights, you can be your own boss. Here are fi ve top tips for starting out on your own.

GET THE RIGHT IDEAAlthough it doesn’t have to be unique, it’s good to have an original slant on what you’re doing – your USP – which will make you stand out from other businesses offering the same thing. For surveyors, this might mean specialising in a niche area of expertise, such as dilapidations or seabed sampling.

WRITE A BUSINESS PLANThis is essential. It is a working document that describes the business, its objectives, its strategies and its fi nancial forecasts. A business plan should provide details of how, and when, you are going to develop your business

and how you will manage the finances. The plan will have many uses, from securing external funding to creating a focus for the direction of your business and spotting potential issues. It is a living document that will help you to monitor your performance and stay on track, and will therefore need

updating and changing as your business grows. Visit businesslink.gov.uk/businessplan for a free guide to creating a business plan, and a sample.

BE REALISTIC IN YOUR FINANCIAL PLANNINGA key part of business planning is to provide a set of financial projections, which translate what you have said about your business into numbers. Your forecasts should run for the next three to fi ve years, and the fi rst 12 months’ forecasts should be more detailed and cover a range of scenarios. It is good practice to show that you have reviewed the risks and have looked at contingencies and insurance to cover these.

When you set up your own business, you need to register for Self Assessment with HM Revenue & Customs (HMRC). They will set up the right tax and National Insurance records and can help you understand what you need to know about tax and therefore avoid unnecessary penalties. This is especially true if you plan to employ others. However small your business, it is vital to keep full

and accurate records of income and expenses right from the start. (Visit businesslink.gov.uk/tax for an interactive tool to fi nd out what records you should be keeping.)

Keep a close watch on your cash flow to see if your projections are proving accurate, and don’t get carried away with your plans before you know that they’re going to work. During the start-up phase it can be easy to be too optimistic, and there can be serious consequences for your business if your projections are not realistic.

DO YOUR RESEARCHIt is important to ensure your business idea is viable, and that your fee scale is competitive but provides adequate return. Accurate market data will help to prevent over-optimistic forecasts, and it is a good idea to keep an eye on the competition, along with new products or services that might take customers away from you.

USE THE HELP AVAILABLEResearch shows that businesses that seek advice are far more likely to succeed than those that don’t. Visit businesslink.gov.uk/startingup for comprehensive but easy-to-read advice that addresses all the key aspects of setting up a business. The website features an online Business Start-up Organiser where you can compile a personalised list of tasks. HMRC also provides free workshops and events for new and expanding businesses on the subject of tax.

BUSINESS LINK is the UK government’s online resource for businesses. businesslink.gov.uk

RICS also produces guidance on setting up your own surveying practice. Download it at rics.org/settingupinpractice.

A BUSINESS PLAN IS A LIVING DOCUMENT THAT WILL HELP YOU MONITOR YOUR PERFORMANCE AND STAY ON TRACK

10.11 // MODUS 41

Illustration by Dale Edwin Murray

MODUS_Oct_p40-41_Bus_adv_v1.F1.indd 41 20/09/2011 10:12

When you specify any size of Fire Alarm System you need tobe sure that it meets the latest standards, using approvedequipment and that your contractor is competent.

There are now over 450 BAFE SP203-1 registered contractors from all parts of the UK who are certificated so that they meet your requirements.

This key third party certification scheme is backed by UKAS accreditedCertification Bodies thus ensuring you get theproducts and systems your fire risk assessmentrequires.

You need BAFE

Bridges 2, Fire Service College, London Road, Moreton-in-Marsh, Gloucestershire GL56 0RHTel: 0844 3350897 • Fax: 01608 653359 • Email: [email protected] www.bafe.org.uk

It’s no good burying your head in the sand

BAFE.... Independent – National – Quality!

Welsh Assembly, Aberystwyth

Formpave Aquaflow permeable paving

for a cleaner future

Control, clean, reduce and reuse rain and surface water. Save on energy

costs, water bills and the environment.Integrate with our renewable, geothermal

technology, ThermaPavewww.hanson.com/uk/formpave

01594 836999

Saving the environmentSaving energySaving money

TM

RICS Modus- Quarter page Aquafow Ad_Aquaflow RIBA 26/01/2011 12:29 Page 1

08 rics.org

HTC Associates are authorised and regulated by The Financial Services Authority under registration number 314279

Don’t wait until it’s too late to have your P.I.I. professionally reviewed

by specialistsTel: 01773 768564 Email: [email protected]

www.professionsinsurance.co.uk

PROFESSIONAL INDEMNITY INSURANCE

42 r ics.org

MODUS_Oct_P42-53_Info_v4.F1.indd 42 20/09/2011 10:13

01.11 // MODUS 09

INFORMATIONUSEFUL NUMBERSCONTACT CENTRE+44 (0)870 333 1600

General enquiriesAPC guidanceSubscriptionsPasswordsLibraryBookshop

REGULATION HELPLINE+44 (0)20 7695 1670

CONFIDENTIAL HELPLINE+44 (0)20 7334 3867

DISPUTE RESOLUTION SERVICES+44 (0)20 7334 3806

SWITCHBOARD+44 (0)20 7222 7000

:RICS NEWS :DIARY :BENEFITS :RESOURCES

New RICS research commissioned by the London Regional Board to assess the physical regeneration legacy of the 2012 Olympic Games has found the project performing well. Particular examples of good practice include the choice of a site that provided good opportunities for regeneration; the early onset of legacy planning, involving a range of stakeholders; government support; and the attention to social and economic regeneration as well as physical transformation.rics.org/research

GAMES LEGACYCONSTRUCTION OFFERS ONE OF THE HIGHEST ‘BANG FOR YOUR BUCK’ OF ALL SECTORS IN THE UK ECONOMY

Josh Miller, RICS Senior Economist, quoted in Building

10.11 // MODUS 43

Lond

on 2

012


08 r ics.org

RICS news//

44 r ics.org

This month RICS will publish research into how property might affect the success of small firms. SMEs are regarded as the engine of many economies, but a large number of entrepreneurs are forced to rely on personal resources to support their business operations.

Property therefore remains a valuable currency that could assist them in ensuring the growth – and in some cases the survival – of their business. One key finding is that many SMEs reluctantly become property owners to secure funds for growth as banks only lend on tangible

assets. ‘The study highlights how SMEs utilise property strategically for business, financial and personal purposes,’ said Deborah Levy and Sussie Morrish, who wrote the report. It will be available to download from rics.org/research in October.

How does property affect the success of SMEs?

A BCIS survey of RICS members has revealed a generally low use and awareness of building information modelling (BIM), with few respondents recognising its potential benefits and fewer than 5% indicating any frequent use. Of the respondents, from the Quantity Surveying and Construction Professional Group, 98% said this was largely due to the lack of client demand, and 95% reported a lack of training and education.

Clients and building owners, plus facilities managers, were seen to benefit most from BIM and, perhaps interestingly, suppliers were seen to benefit least. Few respondents expected to increase their baseline fees as a result of the technology, and only 40% saw the potential for expanding services. A disappointing 30% saw no benefit in BIM for themselves or their organisations. When asked what RICS should be doing, the respondents requested more guidance on its use, with more than 50% showing an interest in training opportunities.

‘This is an excellent starting point for further consultation,’ said David Bucknall FRICS, Chair of the Quantity Surveying and Construction Professional Group. ‘If you do not agree with its findings, RICS would very much like to know what you think. It establishes a benchmark for the profession as we look to assess the impact and development of a new way of working. It is now clear that BIM is here to stay and we are determined to play a leading part in its development, so that the services the profession provides will benefit from the productivity and speed of response that the BIM process can offer.’rics.org/bim

Farmland prices reached an all-time-high average of £6,115 per acre during the first half of 2011, according to the latest RICS Rural Land Market Survey. Land availability failed to match growing demand in Britain, and interest from potential buyers of commercial farmland continued to grow, with 50% more respondents reporting an increase in demand.

Surveyors report that many commercial farmers are looking to expand production on the back of elevated commodity prices. ‘With commodity prices still very high, many commercial farmers appear more keen to expand their businesses rather than sell their land. This can only lead to even higher prices over the next 12 months,’ said RICS spokesperson Sue Steer. ‘In contrast, the residential farmland market remains relatively subdued, reflecting the broader national housing picture.’rics.org/rural

FARMLAND PRICES REACH ALL-TIME HIGH

BIM AWARENESS


01.11 // MODUS 09

assing through an airport recently, I saw an advert for ‘the world’s local bank’, and wondered whether it is possible

to be both locally and globally relevant. As President, I am deeply conscious of the need for RICS to be seen as relevant to members’ daily lives. However, this is a real challenge when you consider how diverse our membership is. There can be little doubt of RICS’ global relevance these days, and it is entirely right to my mind that we should have placed so much emphasis on ensuring the profession has responded to the demands of the international marketplace over the past 12 years.

However, the majority of the 10,000 RICS-regulated firms are SMEs, many of them with only regional or local business. Understandably, it may be harder for these to see a direct, tangible benefit from the internationalisation of the profession. In truth, though, no market is isolated from international forces, and the fact that the RICS qualification has become a global gold standard can only strengthen recognition of the profession by clients and governments in the long term.

Nonetheless, the recent downturn has spelled tough times for many of us, and I

am conscious that some of our smallest firms have found themselves struggling. What can RICS do to help? First it can be out there promoting our professionalism. Over the past few years, RICS has gained a huge amount of respect at government level for its thought leadership on industry standards. I want to ensure we are also providing member firms large and small with a toolkit to build recognition for their standards among clients.

As we develop our body of technical guidance and practice standards, I want to ensure we embrace innovative ways of keeping busy practitioners up to speed through easily digestible checklists and summaries of requirements. I also want to ensure RICS continues to grow its portfolio of CPD to provide an ever-greater range of low-priced events and training alongside the higher-end conferences. I believe that for many small firms, RICS courses in business management are every bit as important as technical courses.

There are some members who feel that, since the dismantling of the branch structure in the 1990s, the chartered surveying community has lost some of its local vigour. However, I would like to remind members that RICS supports local groups in setting up small networking events with publicity and seed funding. So I recommend anyone who feels they need more networking opportunities in their area to get on and organise it themselves with the support of their regional office.

At the end of the day it’s not just about what we get for our subscription, but what we are willing to put back into our profession. In my experience, those that put the most in tend to get the most out. I would be interested to hear your ideas on what practical steps RICS could take to improve the way it supports SMEs. Please write to me at [email protected].

See Lian Ong FRICS is an executive director of Davis Langdon & Seah (Malaysia).

‘It’s not just about what we get for our subscription, but what we’re willing to put back into our profession’See Lian Ong FRICS, RICS President

PRESIDENT’S COLUMN

P

10.11 // MODUS 45

15Of the 25 countries surveyed, more than half expect that the supply of distressed property will increase in Q3*

+68Investor demand for distressed property in Japan rose most dramatically this quarter, from +6 in Q1*

-23In Brazil, investor demand for distressed property fell from 0 in Q1, and agents expect it to fall further in the next quarter*

13More countries (of the 25 surveyed) reported a greater demand for distressed property than supply, up from +11 in Q1*

+40Agents in South Africa expect a significant rise in distressed property for Q3, compared to a negative score in Q1*

+92The Republic of Ireland reported the highest expected levels of distressed property in the coming quarter*

*Highlights from the RICS Global Distressed Property Monitor Q2 2011. rics.org/economics


08 r ics.org46 r ics.org

Advertorial//

To view all the latest offers, new partners and monthly and seasonal promotions, visit rics.org/benefitsplus

Benefitsrics.org/benefitsplus

In light of August’s events, there are some critical insurance issues of which commercial property owners and managers should be aware. Most policies these days are arranged on an ‘all risks’ basis, where the insurance should pay out for repair or reinstatement costs, together with loss of rent while a tenant cannot occupy the premises – regardless of whether the damage is caused by fire, arson, riot, civil unrest, theft or malicious behaviour.

However, as with any contract, there is always the small print to consider. In the event of damage, it is vital to respect the claims reporting conditions (clearly set out in the policy documents). The insurer generally needs to be advised of circumstances

that might lead to a claim within a set period, say seven days, if not ‘without delay’. Partially this enables them to mobilise a loss adjuster and start remediation urgently, while it is also important for the tenant to see that action is being taken.

In addition, there is a strict timetable for notification of damage that may fall within the scope of the Riot (Damages) Act 1886. Not all claims will be in this category, and the deadline for submitting claims was increased by the government from 14 to 42 days in the aftermath of the summer riots. Nevertheless, the opportunity for insurers to recover at least part of the claim from the authorities is an important way for them to minimise their exposure,

and any action – or inaction – on the part of the policyholder or their agent that may prejudice that right will be reflected in the final settlement.

In the short term, those looking for new insurance or renewals for properties in areas that suffered unrest may find some selective underwriting, leading to higher premiums, increased excesses and reduced cover. In the longer term, although the total amount of damage – estimated by the Association of British Insurers to be in the region of £200m – is not likely to have a direct impact on premiums generally, it comes at a bad time for property owners. Most international insurers have suffered considerable losses as a result of the disastrous natural catastrophes of the past year, in Japan, Australia and New Zealand to name but a few. It will come as no surprise if the global insurance market looks for a rise in premium rates to counter the soft market that has prevailed for the past 10 years or so.

All this reinforces the need to take an interest in the insurance for properties you have an interest in – regardless of who actually arranges the cover.

JLT is the RICS preferred partner and a specialist in arranging real estate insurance. For more information, please visit jltgroup.com/rics or contact Gary Reed or Stewart Hunt on 0845 071 3870. JLT sponsors the Regeneration category award at the RICS Awards 2011 on 21 October at The Savoy, London. Find out more about the awards at rics.org/awards.

Unsettled by civil unrest?


01.11 // MODUS 0909.11 // MODUS 47

ICS’ financial year ended on 31 July and, while our external auditors are reviewing our financials as

I write, I am able to give an early snapshot of the organisation’s 2010/11 performance.

Governing Council has set a clear primary strategic objective, to ‘gain recognition, by markets and governments, of RICS as the leading body that sets and enforces professional standards across land, property and the built environment worldwide, and offers access to the most sought-after professional qualification’. RICS has made significant strides in enhancing the recognition of its standards, boosting the profile, professional credibility and employability of all those who achieve and maintain RICS qualifications.

In Australia, RICS standards are now recognised by the major banks for valuation purposes. In Hong Kong, the Estate Agents Authority requested permission to incorporate RICS real estate and brokerage standards into its best practice guidance. In Russia and India, RICS is working with government to set new valuation qualifications and embed valuation standards across the industry respectively. In the UK, RICS is playing a lead role in assisting the government’s low carbon construction plan.

Professional development is at the heart of all we do. Our joint initiative with the Chartered Surveyors Training Trust to launch the Associate Apprenticeship scheme for 16- to 24-year-olds in England is one way in which we are opening up the profession to young talent. Helping members to maintain their professional competence remains a priority. If you haven’t already, take a look at the latest developments from RICS’ Online Academy, which now offers low-cost web classes to help busy professionals stay up to date.

To further enhance market confidence in the standards of RICS-regulated firms and professionals, we have rolled out the Valuer Registration Scheme in the UK, Asia and, last month, in continental Europe. Supported by regulatory monitoring, the scheme assures the quality of valuations and has been widely welcomed by users of valuation services.

Tough economic conditions continue to prevail in many of the markets in which RICS operates and not all our revenue targets were achieved. To mitigate this we have implemented cost savings on day-to-day operations, bringing group financials in slightly ahead of approved budget.

We continue to be in a position to invest in the future. Both the Management Board and Governing Council signalled their confidence in RICS’ future by channelling investment into setting up RICS in Latin America. We are undertaking a programme of renewal and refurbishment of RICS’ ageing IT infrastructure, and a major digital development programme, which includes a new website launch in early 2012. As we evolve to a global organisation, we continue to review our priorities and focus, ensuring we allocate resources wisely to achieve worldwide recognition for RICS standards and qualified professionals.

My sincere thanks go to members and their employers for the time they invest in RICS and to the dedicated and professional staff who together deliver results for the benefit of the whole profession.

‘As we evolve to a global organisation, we continue to review our priorities, ensuring we allocate resources wisely’Sean Tompkins RICS Chief Executive

RICS 2010/11 PERFORMANCE

2,036net increase in qualified members worldwide

165the number of firms regulated by RICS across continental Europe

10Kthe number of followers of the corporate Twitter account @RICSnews

45number of standards published

12the number of Associate qualification pathways available in the UK

8,500users registered to the RICS Online Academy

15K+mentions of RICS in the UK media alone

*The financial statements and annual review will be presented to Governing Council in November and will thereafter be available at rics.org/performancereporting

R

10.11 // MODUS 47


RICS news//

Business strategy for small firms

HOW MIGHT OWNER-MANAGERS OF SMALL AND MEDIUM-SIZED

FIRMS RESPOND TO CHANGE? HERE WE IDENTIFY THE

DIFFERENT TYPES OF FIRM THAT CONSTITUTE THE SME SECTOR,

AND SOME OF THE ISSUES THAT AFFECT EACH TYPE

SOLE GENERAL PRACTITIONER

The sole general practitioner is a single individual providing a wide range of services, often within a limited geographical area.

Strategic dilemmas Should this individual merge

with other general practitioners? How can the right balance be

struck between servicing existing clients and developing new clients and services?

How can the practitioner keep up to date in knowledge and skills?

How can the lack of specialist knowledge/skills be overcome?

How can the resources be obtained to keep up to date in areas of new technology?

How can the investment to use online data and provide online services be obtained?

How can the threat of large multinational organisations be overcome?

How can the practice avoid becoming solely price driven?

Opportunities How can the capability to

provide a more personalised/tailored service to local clients be maximised?

How can local knowledge and strong links with the community be enhanced and used to the practitioner’s advantage (particularly in rural areas)?

How can those clients who will value a local general practice service be identified?

What opportunities exist to collaborate with other local surveyors in order to compete more effectively?

SOLE FREELANCE CONTRACTOR OR NICHE SPECIALIST

This is an individual surveyor who contracts his or her services to another organisation for the duration of one or more projects, or who offers a specialist niche service. Many of the dilemmas and challenges facing the sole general practitioner also affect both freelance contractors and niche specialists, but other issues and opportunities might also arise.

Strategic dilemmas How can this individual develop

a more sustainable client and project workload?

How should the freelancer or specialist decide which sector to concentrate his or her efforts on?

Where are the areas of greatest need for project contractors?

What might be the long-term impact on the individual’s professional standing in this type of relationship? How should either maintain an awareness of the market for the niche services and avoid too great a specialisation?

How can the specialist remain fully aware of the impact of technology, deregulation and other external influences of the niche service?

How will the specialist gain knowledge of larger competitor organisations who may be considering offering the same service currently provided by the specialist?

Opportunities How can a closer partnership

arrangement be created with the client?

How can the relationship with the client be developed to broaden the range of services being offered?

How can the contractor be ‘written into’ the tendering process for new projects?

48 r ics.org

Illustration by Oscar Bolton Green


10.11 // MODUS 49

1 Want to increase your skills but don’t want to be away from the office? RICS Web Class offers live, interactive, cost-effective

training you don’t need to leave your desk for. Upcoming sessions for October and November include intangible asset valuation and new lease accounting rules. rics.org/onlineacademy

2 If you’re considering diving into social media but don’t know where to start, download the free entry-level RICS guide, which

covers all the basics for property professionals. rics.org/socialmedia

3 RICS guidance may be useful even if it isn’t in your exact area of expertise. For example, while the forecasting and cash flow

guidance note is in the context of construction, there are many sections useful for any surveying specialism. rics.org/standards

4 Contribute to the RICS economic surveys. As well as making the surveys stronger for your contribution, you can benefit from the

region-specific comments from other surveyors in your area. There are surveys for the UK housing market, rural land and lettings, and a quarterly global commercial property survey. rics.org/economics

5 Pass on RICS resources to clients and prospects. RICS provides a suite of consumer guides in print and online,

covering everything from buying and selling a home to understanding scale and calibration. rics.org/consumerguides

6 Keep up with trends in the economy and the property sector with RICS’ monthly updates, which include a summary of financial

markets, the economy, construction, housing and commercial property, and a list of key property data release dates, plus various weekly forecasts and analyses. rics.org/economics

7 Concerned you may be in breach of the RICS Rules of Conduct? There is a confidential helpline with trained staff on hand if you

have any concerns about compliance. The service is not recorded and you do not have to share your contact details. rics.org/regulation

8 Looking to promote your firm and your services? Leverage the strength of the RICS brand. Using the logo, the words ‘Regulated

by RICS’, and the letters FRICS, MRICS and AssocRICS after your name will help people recognise you as a qualified property professional working to the highest standards of competence. rics.org/brand

9 Make use of RICS updates. There are newsletters for various specialisms, as well as for UK and world regions, and general

newsletters for sustainability, events and external affairs, plus the weekly RICS News. rics.org/myrics

10 Explore the archive of resources on rics.org. The online library (rics.org/library) offers access to thousands of books, articles

and law reports, while the online catalogue contains an index of books and audio tapes held in the library. The archive of RICS-funded research (rics.org/research) contains 2,000 items, searchable by practice area.

10 WAYS SMALL FIRMS CAN BENEFIT FROM RICS

How can strategic alliances be formed with larger organisations, so reducing potential competition?

How can such alliances be used to provide funds to invest in new technology?

How can wider virtual networks of specialists be created for mutual benefit?

How can the internet be used to promote those specialist services that are marketable beyond the local market?

SMALL GENERALIST/SPECIALIST PARTNERSHIP

This set-up generally involves a two- to five-partner practice providing a range of complementary or highly focused surveying services, often within a limited geographical region.

Strategic dilemmas What balance of skills and

services should be on offer? How can the partnership

identify what other services it should be offering?

If the partnership wishes to grow the practice, what options exist?

Opportunities How can the partnership

maximise opportunities to cross-sell complementaryservices to existing clients?

What can the members within the partnership do to learn from each other?

What areas of activity could be developed in partnership with some of its larger clients?

MEDIUM-SIZED GENERALIST PRACTICEThis practice usually has more than five partners and possibly up to 30 staff offering a range of services in both local and international markets.

Strategic dilemmas How can the firm compete

across a wide range of practice areas?

What distinctive competencies does the firm possess? Are these known to the market?

What can the firm offer experienced staff (eg an equity share)? How can it provide attractive career routes?

How can long-term, sustainable alliances and partnerships be developed with private and public sector bodies?

Opportunities What opportunities exist

to develop links with niche specialists or professionals in other disciplines in order to provide a wider range of services?

How can the firm’s structure be designed to become more heavily leveraged, which could lead to potential gains in profitability?

Extract taken from the RICS guidance on the management of surveying businesses.rics.org/practicemanagement


OUT NOWRare earth metals ‘Rare earths’ are 17 metals with properties that enable development of green technologies, including wind power and electric cars, but are also essential components of computers, mobile phones and a huge range of other products. This information paper is designed to help members understand this fast-moving area as it begins to infl uence national and international policy. In the UK, the signifi cant dependency on speciality and rare earth metals in the eff ort to move towards a low-carbon economy is stimulating the search for them. The importance of REM recycling in the UK and other countries will grow, and this paper is expected to trigger research in a number of areas of interest to chartered surveyors, urban planners and a range of decision-makers across a number of sectors and industries.

Damages for delays to completionThis guidance note introduces the subject of damages for delay to completion by looking at the general principles including law, the reasons for introduction within a contract, the amounts of damages and how sums are deducted, certifi ed or released. It is the latest part of a growing suite of standards for core QS activities.

Sustainability in residential property valuation This paper helps valuers consider sustainability issues when undertaking valuations of residential property in the UK. It includes reference to the main

legislative and regulatory provisions that impact, or are considered likely to impact, on residential value and points to areas of future legislative infl uences on value.

Subsidence in relation to insurance claims This is guidance for RICS members and other professionals involved with subsidence claims. It covers the causes of subsidence, heave and landslip, the causes of other building fractures, policy cover details, handling a subsidence claim, recoveries and contribution, and relevant voluntary agreements.

17 OCTOBERCommercial property managementThis guidance note summarises best practice in property management of commercial properties, and highlights key aspects that property managers should bear in mind in successfully managing a property. Principally concerned with how the person in control of a building should act, including how they manage, communicate and control income and expenditure, and with minimising the various associated risks of multi-let properties, the principles can be applied to the management of all types of commercial property.

24 OCTOBERAsbestos and its implications for members and clients (3rd ed.)Provides members with an appreciation of the various issues surrounding asbestos, with particular regard to its use in buildings and structures.rics.org/standards

Membership

New careers guide publishedAre you involved in promoting careers in surveying? The 2011/12 edition of RICS’ careers guide is now available. Surveying 2012 off ers a print and web-based resource to encourage students and graduates into the surveying profession and promote the benefi ts of RICS membership.

Highlights this year include insightful case studies that reveal what it’s like to work as a chartered surveyor, features on iconic projects around the world and essential information on the various routes to membership. Surveying 2012 features showcases from property and surveying fi rms and universities including Savills, EC Harris, Transport for London, Robert Gordon University, Chesterton Humberts, Gardiner and Theobald, CEM and the University of Portsmouth.

Access the online version at rics.org/surveying2012 and request hard copies from [email protected].

RAISING STANDARDSTHE FIRST RESIDENTIAL ASSOCIATE GRADUATESRICS has announced the fi rst six people to qualify as Associate members in the residential property management sector. Launched in June, the residential property management qualifi cation represents the fi rst time that those in the sector have had the opportunity to join RICS.

One of the new Associates, Tim Josh, senior property manager at Rendall & Rittner said, ‘I’d advise anyone thinking about becoming an Associate to stop considering and grab the opportunity with both hands. For an individual focused on a career in property, there are only benefi ts to holding the qualifi cation.’

If you know someone who may be interested in Associate membership (including those who missed out on a place at university), direct them to fi nd out more at rics.org/associate.

RICS news//

50 r ics.org


01.11 // MODUS 09

ENGLAND

RICS expert witness workshopsOctober to December, various locations Gives experts the knowledge, skills and confidence to perform effectively.£250 + VAT per module (all three modules £650 + VAT) £450 + VAT for the Assessment Dayrics.org/expertwitnessworkshop

RICS Northern CPD programmeOctober to January, various locationsTopics include lease renewals and an introduction to specification.£26 + VATrics.org/northernevents

RICS Red Book seminarsOctober, Nottingham, Bristol and LondonOn commercial valuation standards and comparable evidence, with Paul Batho and Anthony Banfield.£150 + VATrics.org/redbook2011

RICS West rural series October to November, various locationsFood security and fuel production, plus updates on localism and Inheritance Tax. £80 + VATrics.org/westrural series2011

Building regulations roadshowOctober to December, various locationsInteractive regional seminars looking at the recent changes.£150 + VATrics.org/building regs2011

RICS East Midlands rural conference 10 October, GranthamRICS countryside policy panel chair Susan Steer on the natural environment white paper. £59 + VATrics.org/eastmidlands

Total Workplace Management 11-12 October, London Visit stand D40 for the professionalising FM live debate ‘Proving Ground: It’s not just about cutting costs’. twmexpo.com

BCIS seminar series13 & 20 October, LondonOn the core products offered by BCIS.£105 + VATrics.org/bcis2011

RICS inclusive environment consultants conference 18 October, LondonBuilding design and health and safety, plus the Equality Act and Part M.£175 + VATrics.org/iec2011

RICS London Bank of England market update19 October, LondonThe UK economy and prospects for inflation, based on the latest inflation report projections.£30 + VATrics.org/london

RICS service charge code seminar19 October, LondonIssues, concerns and disputes around service charge management. £150 + VATrics.org/service chargecode2011

RICS Northern expert witness conference20 October, ManchesterWith a keynote address by Judge Philip Raynor QC.£150 + VATrics.org/northernevents

RICS South RICS Associate explained20 October, East GrinsteadA free session on the benefits of the AssocRICS route.rics.org/southeast

Conservation in action27 October, CirencesterSee the repairs at Cirencester’s historic town hall. £25 + VATrics.org/southwest

RICS neighbourly disputes roadshowNovember to January, various locationsHow to handle common disputes between neighbours. £150 + VATrics.org/neighbourly disputes2011

and engineering contracts, with key information on FIDIC. £220 + VATrics.org/legal issues2011

RICS matrics East Midlands APC conference 5 December, Nottingham Increase your success rate in passing your APC. Includes a forum for all questions on the APC process. £58.33 + VAT (forum only £20.83 + VAT) rics.org/APCconference

NORTHERN IRELAND

RICS NI Bribery Act and handling clients’ money12 October, BelfastDavid Threthowen on bribery.£25 + VATrics.org/northernireland

WALES

Compulsory purchase12 October, CardiffInsight into the whole CP process.£50 + VATrics.org/events

RICS Mid Wales board Frame Wise site visit19 October, CardiffTour the timber frame manufacturing unit at Broadaxe Industrial Park.£10 + VATrics.org/events

SCOTLAND

RICS Scotland lunchtime CPD seriesOctober, Glasgow and EdinburghIncludes money laundering, social media, dilapidations and service disputes. £26 + VAT per eventrics.org/lunchtime

Red Book essential update 26 October, Edinburgh On the 7th edition. £45 + VAT rics.org/redbookupdate

Commercial property seminar: Delivering better value27 October, Edinburgh Save costs through service charges, agile property strategies and procurement. £85 + VAT rics.org/delivervalue

EventsRICS North CPD day2 November, Knutsford10 November, LeedsDelegates can attend up to six sessions. £125 + VATrics.org/northernevents

RICS valuation conference10 November, LondonAt the RICS flagship event gain an insight into innovative approaches to valuation.£220 + VATrics.org/valuation2011

RICS innovative methods of construction conference28 November, LondonRecent trends, applications and methods for off-site construction. £250 + VATrics.org/innovative methods2011

RICS legal issues in construction conference 29 November, LondonA clear overview and analysis of the major types of construction

FOR RICS EVENTS BOOKINGS AND ENQUIRIES [email protected] // +44 (0)20 7695 1600

RICS TELECOMS FORUM CONFERENCE 3 November, London

This established conference returns to provide a timely update on

the delivery of rural broadband, the future of mobile internet access, an update on the recent case law affecting telecoms surveyors’ practice and an unmissable opportunity to network with your peers across the industry. £190 + VAT (£165 + VAT before 5 October) rics.org/telecoms2011


CUT COSTS AND GET ENERGY FITE.ON’s Business EnergyManager package will show you when and where energy is used in your business. We’ll then advise you on how to make some simple changes that will help you to get your business energy fit and save money.

*Business EnergyManager is available to customers signing up for a Fixed Price Business Electricity Plan with a meter profile class 03 or 04. Exclusions include: RHT related meters, businesses with over 20 sites and third party intermediaries. #Cashback offer is open to RICS members currently on an energy tariff with a competitor, ending within 120 days of the date you sign up to E.ON. Cashback will be credited to your first bill. Both offers are payment by Direct Debit only and subject to a credit check and availability.

For more details, visitrics.org/eon

Advertorial//

WHAT’S AN ENERGY MONITOR?An energy monitor measures the amount of electricity you’re using. You connect part of the device around your electricity cable, which sends information wirelessly to the monitor. If you programme in what you pay for energy per unit, and the date and time, the monitor displays your current usage. This helps you gauge how much appliances cost to run and what you’re spending on electricity.

COMPARING ENERGY USE TO MAKE SAVINGS To build a better picture of how much energy your business uses, you need to be able to monitor it. Business EnergyManager includes easy-to-use software to install onto your PC which you can use to compare data from the monitor over periods of time, such as day/evening, weekday/weekend and also month on month.

THE RIGHT TARIFF FOR YOU There are lots of energy tariffs available to businesses, and it’s hard to know which one is right for you. The Business EnergyManager software recognises if your usage profile doesn’t match your tariff, and a prompt will appear asking you to contact E.ON so we can help you find one that does.

DOWNLOADABLE GUIDE TO SAVING ENERGYE.ON also provides a guide packed with tips on how to be more energy efficient around your business, including E.ON’s Six Step Action Plan, which helps to get your business energy fit.

If you sign up to one of E.ON’s Business Electricity Plans, as an RICS member you’ll receive the Business EnergyManager package* for free as well as £50 cashback #. You can choose from a one, two or three year plan and benefit from the security of fixed prices, protecting you from any price increases and helping your business budget better.

For more information, call a specialist advisor on 0800 508 8686 Monday-Friday 9am-5pm

E.ON’s Business EnergyManager package comes with an easy-to-install energy monitor, specially designed software and a guide packed full of energy-saving tips to help you stop wasting and start saving. The monitor includes:

• An ‘Energy Now’ display which shows how much energy you’re using right now. Test it by switching a light off and watch the figure drop. • A ‘Cost Per Day/Month’ display which shows how much you’re spending on electricity every day and every month. It alters as you switch electrical items on and off to show how much your electricity will cost now if you continue to use this amount. • An ‘Up/Down’ display showing how much energy you’ve used between certain hours the previous day. You can also see how much energy you’ve used in kWh during the previous day, the last seven days and the last 30 days. • A graph which shows energy in kWh used between certain hours the previous day, the last seven days and the last 30 days. • The current time and temperature are also displayed.

52 r ics.org


01.11 // MODUS 09

EASTERN

Michael John Beales MRICS1944-2011, Frinton On Sea

Richard Charles Gardner FRICS1939-2011, Sandy

Hugh Denis Charles Grafton HonRICS1919-2011, Thetford

Gordon B Ibbott FRICS1928-2011, Watford

LONDON

John Michael Henry Butler FRICS1948-2011, London

David Wing-Cheung Chan FRICS1942-2011, London

Ernest Arthur Shelstone FRICS1924-2011, Northolt

Peter Westropp MRICS1983-2011, London

NORTH EAST

Robert Paul Dunford FRICS1921-2011, Newcastle Upon Tyne

NORTH WEST

Ronald Richard Banks MRICS1951-2011, Kelsall

Christopher Dronfield MRICS1950-2011, Oldham

SOUTH EAST

Richard John Bryan Carruthers MRICS1923-2011, Wokingham

Stanley William Clark FRICS1926-2011, Canterbury

Peter William Hunt FRICS1928-2011, Benenden

Derek Robert Lawrence FRICS1945-2011, Milton Keynes

Bernard L R Lippmann FRICS1926-2011, Oxted

Gary Jon Wakefield Mardon FRICS1942-2011, Burford

Kiritbhai Patel MRICS1951-2011, Edgware

Frank Peter Wilson HonRICS1927-2010, Cranleigh

SOUTH WEST

Kenneth William Charles Bellamy FRICS1920-2011, Cheltenham

John Attwell Francis Fox MRICS1922-2008, Bournemouth

WEST MIDLANDS

John Patrick Power FRICS1939-2011, Hereford

Frederick John Tims FRICS1927-2011, Little Kineton

Victor John Wernham FRICS1924-2011, Solihull

EAST MIDLANDS

Alan John Gilbert Bull MRICS1930-2011, Oakham

Peter Clarke MRICS1931-2011, Nottingham

Arthur James Hooworth-Smith FRICS1934-2011, Priestcliffe

YORKSHIRE & HUMBER

Gordon William Brookes MRICS1929-2011, York

Philip Nicholas Gee FRICS1953-2011, Skipton

SCOTLAND

Andrew James Fraser Bruce FRICS1959-2011, Kelso

Thomas Henry Patrick Donald FRICS1948-2011, Kilmarnock

WALES

Gethin Webb Trainee1989-2011, Cardigan

AMERICAS

Alan Goater FRICS1923-2011, Parksville, BC

OCEANIA

Richard Anderson Glass FRICS1939-2011, Marion

Edwin George Davenport FRICS1928-2011, Bermagui, NSW

Obituaries

10.11 // MODUS 53

Thomas Donald FRICS 1948–2011

Tom Donald was a highly regarded and respected rural surveyor and arbiter

in Scotland. Educated in Edinburgh and then RAC Cirencester, Tom returned to Scotland in the 1960s to begin his professional life as a land agent with Hamilton and Kinneil Estates in

Lanarkshire, followed by partnership at R&W Hall in Paisley, eventually setting up his own practice Donalds Chartered Surveyors in 1990. In 2010, he merged the firm with CKD Galbraith. Tom’s work covered a broad professional spectrum which encompassed both detailed planning and rural practice matters; including valuations, landlord and tenant, compulsory purchase and development work, expert witness and evidence, tribunals and public enquiries. Tom played an active role in the profession and represented RICS on numerous committees, panels and professional groups. One of Tom’s most important contributions to the profession was his positive influence on others, especially younger members. With his sharp mind and attention to detail, he was the very best source of guidance and advice to whom many would turn when no-one else could come up with the answer. Charming, witty and urbane, Tom will be greatly missed by his family, friends and colleagues.

DISCIPLINARY PANEL, 20 APRIL 2011

Richard Probert, HerefordSummary of finding: contrary to Bye-law 5.2.2 Penalty: expulsion/costs

DISCIPLINARY PANEL, 4 MAY 2011

Peter Sayer, BedfordSummary of finding: failure to comply with Rule 7 of the Rules of Conduct for Members 2007 Penalty: expulsion/costs


Stephen Wright, BristolSummary of finding: contrary to Rule 3 of the Rules of Conduct for Members 2007/contrary to Rule 8 of the Rules of Conduct for Members 2007/contrary to Rule 9 of the Rules of Conduct for Members 2007 Penalty: expulsion/costs


Rowland Saunders MRICS, NorfolkSummary of finding: failure to comply with Rule 8 of the Rules of Conduct for Members 2007/failure to comply with Rule 9 of the Rules of Conduct for Members 2007 Penalty: caution/costs

DISCIPLINARY PANEL, 22 JUNE 2011

Brian Rumley & Co, BristolSummary of finding: failure to comply with Rule 7 of the Rules of Conduct for Firms 2007/failure to comply with Rule 15 of the Rules of Conduct for Firms 2007 Penalty: reprimand/condition/costs

Brian Rumley MRICS, Bristol Summary of finding: failure to comply with Rule 9 of the Rules of Conduct for Members 2007 Penalty: £1,000 fine rics.org/conductcases

Conduct rics.org/regulationenews


Department of the Built Environment

Qualifications to build a careerWe offer high quality professionally accredited programmes in a caring and friendly environment.

For further information:

Click: www.anglia.ac.uk/rics Email: [email protected] Call: 0845 271 3333

UndergraduateBSc (Hons) Building SurveyingBSc (Hons) Quantity SurveyingBSc (Hons) Real Estate Management

PostgraduateMSc Project ManagementMSc Construction ManagementMSc Sustainable ConstructionMSc Conservation of Buildings

Professional Doctorate and PhD research programmesThese can be studied full or part-time, with intakes in September and January.

These can be studied full or part-time.

Specialists in Remedial Structural Repairsand now EWI Cladding and Render Systems

EWI installations.

bersche rolt new pic, green:Layout 1 29/3/11 12:18 Page 1

find out morewww.rgu.ac.uk/modusT: 01224 262247 E: [email protected]

Flexible online Postgraduate Courses that fit in with your busy lifestyle

www.rgu.ac.ukmy time my career my future

attend site visit meet with architect finalise contract business lunch update the boss develop project brief read and action survey report go home eat dinner apply for masters flexible study enhance your career a clear future

STUDY ONLINEstart in septemberscholarships and funding available

MSc Construction Project Management

MSc Design Management

MSc Property Development

54 r ics.org

MODUS_Oct_P55-57_Classified.v1.indd 63 16/09/2011 12:16

DIRECTORYFor directory advertising please contact Lucie Inns +44 (0)20 7793 2477 [email protected]

95,256 average net circulation 1st July 2009 – 30th June 2010

RECRUITMENTFor recruitment advertising please contact Grace Healy +44 (0)20 7793 2491 [email protected]

10.11 // MODUS 55

Business services

CHEGWIDDEN & Co Chartered Accountants

Mergers & Acquisitions Department

ARE YOU PLANNING TO SELL YOUR PRACTICE?

We are the leading broker for Surveyors and have many buyers registered with us looking to expand throughout the

UK and the ROI. We can also assist you with a valuation, partnership change advice and MBO/MBI’s

Contact:Paul Beason FRICS - [email protected] Harris FCCA - [email protected]

Tel: 020 8597 2531 Fax: 020 8599 6273 www.chegwidden.uk.com

Advertise in Modus and recruit from a pool of more than 95,000

chartered surveyorsThe Nov issue will be published on 3 Nov

Recruitment booking deadline Friday 7 Oct

Recruitment copy deadline Friday 14 Oct

‘People are proud to live and work in Slough where diversity iscelebrated and where residents can enjoy fulfilling prosperous and healthy lives’.

Senior Building Control SurveyorUp to £41,268 per annum inclusive of market supplement

Building Control SurveyorUp to £32,635 per annum inclusive of market supplement

2 Permanent Contracts and 1 One Year FixedTerm Contract (with possible extension)

MANY DOORS. FEW BARRIERS…If you want to unlock your full potential, you can’t do better than cometo Slough. That’s because our unique working model enables us to act as both a front line Building Control Service, meeting the diverseneeds of our community and an autonomous business unit in acompetitive environment.So, as a part or fully qualified and experienced Building Control Surveyor,you really will enjoy the best of both worlds in Slough. On the one handyou’ll work on major projects in and around Europe’s largest privatelyowned trading estate, work with blue chip organisations and ourgrowing portfolio of partner companies through the LABC PartneringScheme. On the other hand you’ll be closely involved with the localcommunity, builders and agents to enhance our professional reputationand make Slough a better place to live and work.Taken in conjunction with the progressive character of the Borough and the unparalleled professional development we offer (including fullpayment of training to complete your qualifications and professionalassociation membership), you really couldn’t wish for a better opportunity.For an informal discussion about these roles, please contact Sanjay Dhuna,Head of Building Control on 01753 875810.

Apply for this job online at www.slough.gov.uk/jobs where you canfind details of how to apply, and an information pack for this job andall our vacancies. Alternatively, email [email protected] orcall our 24 hour message line on 01753 875074 for a pack, outliningthe reference number above. Minicom service on 01753 875030.

Closing date: Thursday 27th October 2011 at 5.00pm.

We value diversity.


56 r ics.org

To view more jobs online visit ricsrecruit.com

ricsrecruit.com

TO VIEW THESE JOB DESCRIPTIONS in full and to apply online, please visit ricsrecruit.com and enter the reference number in the keyword box.

T +44 (0)20 7793 2491E [email protected]

ESTATES MANAGEMENTNational Estates Manager Buckinghamshire£40-50,000 + benefits Ref: RICS0029You’ll report to the UK Head of Property and take responsibility for delivering a first class internal Estate Management service playing a key role in ensuring the newly expanded portfolio of this company is managed to the very highest standards. Estates Surveyor Hampshire c. £33,000 + attractive benefits package Ref: 1870Reporting to Head of Commercial Property, your role will be to assist with the management of this companies leasehold property portfolio, freehold disposal programme and the attraction of new external tenants into the Estate.

VALUATIONValuation Surveyor Central London£27,000 - £32,000 + bonus & benefits Ref: ComSSThis company is looking for a recently qualified Valuation Surveyor to work in their Head office in Mayfair. You will be valuing Residential and/or Commercial properties in London and the South East for a number of clients. You will need to have up to 3 years’ post qualification experience within a similar role, be self-motivated and pro-active.

BUILDING SURVEYING Surveyor LondonExcellent + package Ref: 51065The right candidate will have the opportunity to gain exposure to a wide variety of sectors, retail, office, industrial and residential. In addition you will advise a broad range of clients and have autonomy to run day to day work for high profile clients. Building Surveyor ScotlandCompetitive Ref: RICS0030The right candidate will have the opportunity to gain exposure to a wide variety of sectors, retail, office, industrial and residential. In addition you will advise a broad range of clients and have autonomy to run day to day work for high profile clients.

INTERNATIONALDirector ShanghaiCompetitive Ref: RICS0031You will need at least five years’ real estate and leasing experience in the commercial field preferably Shanghai/China markets and/or mature markets. You will need a good track record in working with multi-national corporations, be well educated and trained in real estate field.

Gloucestershire BasedChartered Building Surveyors require

Director Designate

To join established and busy small practice, developing and expanding existing client base.

The successful applicant will have drive, enthusiasm and ambition for good long term prospects.

Replies via [email protected] quoting Reference RM04

WANTED Experienced Building Surveyor to join well established firm

of chartered building surveyors who specialise in education, training, subsidence and social housing work.

We operate throughout the North West; being based in both North and East Lancashire.

We would want someone capable of taking over the firm within the next few years. The candidate should therefore have drive, enthusiasm, time

and ideally some capital to invest. All options considered.

This is an ideal opportunity for a chartered surveyor who may be thinking of setting up on their own.

All enquiries will be treated in the strictest of confidence.

Write to [email protected] quoting reference RM03

Bedford Borough Council takes great care to recruit the very best talent, so that the services we provide to the community of Bedford are fi rst class. We believe that the best work gets done in an environment that’s enjoyable and which values, supports and encourages the development of its employees. In return we expect our employees to work hard, show ambition and be committed to help us achieve our vision and share our values.

Environment & Sustainable Communities

Building Control Offi cer £30,851 - £33,661 • (Quote ref: P001061)A vacancy has arisen for a suitably qualifi ed and experienced Building Control Offi cer to join our friendly team of Offi cers based in the centre of Bedford.

Your caseload will involve an interesting mix of domestic, industrial and commercial projects providing excellent opportunities to develop your practical experience and skills.

For an informal discussion, please contact Richard Martin on 01234 221759.

For full job details visit www.bedford.gov.uk or contact the Recruitment Team on (01234) 228082 oremail [email protected]. Please do not send cv’s.

Closing date: 21st October 2011. Interview date: 3rd November 2011.The Council is an Equal Opportunities Employer and positively welcomes applications from all members of the community irrespective of race, colour, gender, sexual orientation, age and disability. Selection is on merit alone.


09.11 // MODUS 65

ricsrecruit.com

Missing an experienced surveyor or graduate?

RICS’ recruitment advertising solutions – Modus, ricsrecruit.com and our specialist journals – offer an unrivalled surveying audience for all your recruitment needs.

RICSRecruit.com• Reaching 30,000 candidates• Covering more surveying specialisms than any other jobs board• Access to RICS members and the ‘new up and coming’ talent• Tailor made recruitment campaigns.

To reach these candidates contact Grace Healy today:+44 (0)20 7793 2491 or [email protected]


1 footA foot was measured as the

actual length of a Roman soldier’s foot (296mm).

Three feet became known as one yard.

0.9144mThe length of one international

yard, as defi ned by the US, UK, Australia and South

Africa in 1960.

1,760 yards = 1 mile1 mile = 1,609.3m

1 acre = 4,046.8m sq1L = 1kg of water

1,000,000,000,000 terra (T)1,000,000,000 giga (G)1,000,000 mega (M)1,000 kilo (k)100 hecto (h)1 0.01 centi (c)0.001 milli (m)0.000001 micro (µ)0.000000001 nano (n)0.000000000001 pico (p)

INTERNATIONAL SYSTEM OF UNITS (METRIC SYSTEM) PREFIXES

299,792Speed of light (km/s)

150,000,000The distance of the

Earth from the sun (km)

40,075kmThe circumference of the Earth at the equator (24,901 miles).

356,400kmThe distance of the moon from the Earth at the perigees (closest). At the apogees (fu rthest) it is 406,700km.

1kgDefi ned in 1889

by the international prototype kilogram, which is kept at the

International Bureau of Weights and Measures in France.

The height

of Mount Everest

(29,000ft), as established in 1856. Andrew Waugh, the

British Surveyor General of India, named it after his

predecessor Sir George Everest.

8,840m11,033m

The depth of the Mariana Trench (36,197ft), the deepest part of the Earth’s oceans. It was

fi rst sounded at 4,475 fathoms (8,184m) on

the Challenger expedition of

1872–76.

1783 Surveyor William Roy commissioned

leading instrument maker Jesse Ramsden to construct a 3ft theodolite to establish the exact relative position of the London and Paris observatories.

1787The year of the Ordnance Survey of Britain. Ramsden’s theodolite was used in the fi rst accurate survey of Britain, forming the foundation for all Ordnance Survey maps.

1799France was fi rst to adopt the metric system – now the offi cial system of measurement for all nations except Myanmar, Liberia and the US.

RICS GEOMATICS

professional group has over 3,000 members and the largest percentage of

international members (over 40%) of any RICS

area of practice.

Sources: Oxford English Dictionary, Wikipedia, International Bureau of Weights and Measures, rics.org/geomatics, ramsden.info, cartography.org.uk

58 rics.org

Measure//

MEASUREMENTFROM THE SMALLEST TO THE GREATEST

Illustration by Ian Dutnall

MODUS_Oct_P58_measure_v3.indd 1 16/09/2011 12:19

MODUS_Oct_p59_BUPA_Ad.indd 30 14/09/2011 17:03

MODUS_Oct_p60_bmi_Ad.indd 30 14/09/2011 17:04

Documents

RICS Modus, Global edition — October 2011