Your APC pathway guide to Valuation Pathway Guide

Your APC pathway guide to

Valuation Pathway Guide

Your pathway guide to Valuation

ContentsIntroduction 4

Pathway requirements 7

Valuation APC 7

Competency guidance 8

Accounting principles and procedures (M001) 9Auctioneering (T004) 10Building pathology (T006) 11Capital taxation (T009) 12Compulsory purchase and compensation (T011) 13Conflict avoidance, management and dispute resolution procedures(M006) 14Construction Technology & Environmental Services 16Contaminated land (T015) 17Corporate real estate management (T019) 18Corporate Recovery & Insolvency 20Data Management 21Development appraisals (T023) 22Indirect investment vehicles (T043) 23Inspection (T044) 24Insurance (T045) 25Investment management (including fund and portfolio management) (T046) 26Landlord and tenant (including rent reviews and lease renewals) (T048) 27Leasing/letting (T050) 28Local taxation/assessment (T052) 29Measurement (T057) 30Planning development and management (T061) 31Property finance and funding (T069) 32Property management (T070) 33Property management accounting (T071) 34Property records/information systems (T072) 35Purchase and sale (T073) 36Strategic real estate consultancy (T079) 37Sustainability (M009) 38Valuation (T083) 39Valuation of businesses and intangible assets (T088) 41

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Your pathway guide toValuation

About the APC

The RICS/SCSI Assessment of Professional Competence (APC)ensure that those applying for RICS/SCSI membership arecompetent to practise and meet the high standards ofprofessionalism required by RICS/SCSI. There is a wide rangeof pathways available to qualify as an RICS/SCSI membercovering 19 different areas of practice, at APC (Chartered) level.

The APC normally consists of:

• a period of structured training• a final assessment.

The structured training is based on candidates achieving aset of requirements or competencies. These are a mix oftechnical, professional, interpersonal, business andmanagement skills.

How to use this guide

This guide is designed to help you understand more aboutqualifying as an RICS/SCSI member in valuation surveying.The material is set out in three sections.

Section one- provides information on this area of practice witha general overview of the valuation pathway.

Section two- lists the competency requirements of thevaluation APC.

Section three- describes the main technical competenciesassociated with valuation surveying, providing expandedsector specific guidance on each of them. This forms themain part of the guide.

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Introduction


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About the competencies

The APC aims to assess that you are competent to carry outthe work of a qualified chartered surveyor. To be competentis to have the skill or ability to perform a task or function. TheRICS/SCSI competencies are not just a list of tasks orfunctions, they are also based upon attitudes andbehaviours. The competencies have been drawn up in ageneric way so that they can be applied to different areas ofpractice and geographical locations. This guide is designedto help you interpret these competencies within the contextof valuation surveying.

The competencies are defined at three levels of attainmentand each APC pathway has its own specific combination ofcompetencies that you must achieve at the appropriate level.You must reach the required level in a logical progression andin successive stages:

Level 1 – knowledge and understandingLevel 2 – application of knowledge and understandingLevel 3 – reasoned advice and depth of technical knowledge.

The competencies are in three distinct categories:

Mandatory competencies – the personal, interpersonal,professional practice and business competencies common toall pathways and compulsory for all candidates. These areexplained in more detail in the APC Requirements andcompetencies guide.

Core competencies – the primary competencies of yourchosen APC pathway.

Optional competencies – a set of competencies selected bythe candidate from a list defined for the particular pathway. Inmost cases there is an element of choice. These are mostlytechnical competencies, but certain mandatory competenciesalso appear on the optional competency list and candidatesare permitted to select one of these at a higher level.

This guide only deals with the principal core and optionalcompetencies associated with this area. It does not coverthe mandatory competencies.

Choosing your competencies

It is important that you give careful thought to your choiceand combination of competencies. Your choice will inevitablyreflect the work you do in your day-to-day environment(driven by the needs of your clients/employer). Your choiceand combination of competencies will be a reflection of yourjudgment. At the final assessment interview, the assessorswill take these choices into account. They will expect you topresent a sensible and realistic choice that reflects the skillsneeded to fulfill the role of a surveyor in your field of practice.

This guide should help candidates and employers with adegree of assistance in choosing the competencies that aremost appropriate to their area of practice.

How to find help

SCSI Education and Membership will be able to help you withany general APC queries:T 01 6445500F 01 [email protected]

About Valuation

Property valuation is a core skill of many RICS/SCSI members and forms part of the professional services providedby many RICS/SCSI members. Professional valuations are vital to a healthy property market and a stable economy,forming the basis of performance analysis, financing decisions, transactional or development advice,dispute resolution, taxation and various statutory applications.

Robust practice standards form the basis of high quality valuations. RICS/SCSI is the world’s leading qualificationfor valuation professionals and is well respected by employers and clients the world over.

Specialist valuers operate across a wide range of asset types, working in both the public and private sector, thoughthe most common asset classes include commercial, residential or rural property. Some valuers practise exclusivelyin one of these areas, while others deal with a wider variety of property types.

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Valuation APC

The Valuation pathway ideal for anyone pursuing a career

in property who has a particular interest in specialising

in valuation.

Although valuation is a skill applied by chartered surveyors

across a wide variety of assets, this pathway is aimed at

individuals who work in commercial, residential or rural real

estate. Other areas, such as machinery and business assets,

arts and antiques or minerals have their own dedicated

RICS/SCSI pathways to entry.

The Valuation APC pathway places emphasis on competency

in valuation practice (which is required to level 3 in this

pathway). However, as with the other property pathways,

a broad base of experience in general property practice is

also required.

For this reason the competency requirements of the Valuation

APC pathway are very similar to the Commercial Property and

Residential APC pathways, and it draws candidates from a

similar professional environment. Candidates undertaking the

valuation pathway may gain their experience in either a

residential, commercial or rural property context – or a

mixture of these.


Chartered alternative designationsrelated to this pathway

All candidates qualifying under the Valuation APC pathway will be entitled to use the designation ‘Chartered Valuation Surveyor’.

Pathway Requirements

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Mandatory

Core

Optional

Level 3 • Ethics, rules of conduct & professionalismLevel 2 • Client Care

• Communication and negotiation• Health and safety

Level 1 • Accounting principles and procedures• Business planning• Conflict avoidance, management and dispute resolution procedures• Data management• Diversity, inclusion and teamworking• Inclusive environments• Sustainability

• Inspection• Valuation• Measurement

Level 3

Level 2

• Accounting principles and procedures orConflict avoidance, management and dispute resolution procedures or Data management or Sustainability

• Auctioneering• Building pathology• Capital taxation• Compulsory purchase and compensation• Construction technology and

environmental services• Contaminated land• Corporate real estate management• Development appraisals

• Indirect investment vehicles• Insurance• Investment management (including fund

and portfolio management)• Landlord and tenant• Leasing and letting• Local taxation/assessment• Planning and development management• Property finance and funding• Property management• Property management accounting• Purchase and sale• Strategic real estate consultancy

Three to Level 3 or two to Level 3 and two toLevel 2*

Plus, one to Level 2 fromthe full list oftechnical competencies,including any notalready chosen from theoptional list.

Accounting principles and procedures (M001) 9Auctioneering (T004) 10Building pathology (T006) 11Capital taxation (T009) 12Compulsory purchase and compensation (T011) 13Conflict avoidance, management and dispute resolution procedures(M006) 14Construction Technology & Environmental Services 16Contaminated land (T015) 17Corporate real estate management (T019) 18Corporate Recovery & Insolvency 20Data Management 21Development appraisals (T023) 22Indirect investment vehicles (T043) 23Inspection (T044) 24Insurance (T045) 25Investment management (including fund and portfolio management) (T046) 26Landlord and tenant (including rent reviews and lease renewals) (T048) 27Leasing/letting (T050) 28Local taxation/assessment (T052) 29Measurement (T057) 30Planning development and management (T061) 31Property finance and funding (T069) 32Property management (T070) 33Property management accounting (T071) 34Property records/information systems (T072) 35Purchase and sale (T073) 36Strategic real estate consultancy (T079) 37Sustainability (M009) 38Valuation (T083) 39Valuation of businesses and intangible assets (T088) 41


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Competency guidance

The pages that follow are intended to provide guidance for users on the main competenciesassociated with valuation practice.

The guidance has been drawn up by experienced practitioners and aims to give you a clear and practicalunderstanding of how to apply the listed core and optional competencies in the context of propertyvauation practice. The guidance does not cover the mandatory competency requirements.

The official competency definitions (at levels one, two and three) are provided, followed by a description ofthe key knowledge and activities that are likely to fall within the scope of each competency.

The information provided is designed to be helpful but informal guidance. The knowledge and activitiesdescribed under each competency are not exhaustive, and should not be relied upon as any form ofrevision list. Candidates must satisfy themselves and their employers that they have reached the requiredlevel of attainment before applying for final assessment.

The competencies are arranged in alphabetical order.

The full list of RICS/SCSI competencies and pathway requirements can be found in the APC Requirements and competencies guide


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Description of competency in context of this sector

This competency covers the basic principles of accounting and the interpretation of company accounts in order that reasonedadvice can be given to Clients.

Examples of likely knowledge, skills and experience at each level

Accounting principles and proceduresReference no. M001

Level 1Demonstrate knowledge andunderstanding of accountingconcepts and the format andpreparation of management andcompany accounts, including profitand loss statements, cash flowstatements and balance sheets.

Examples of knowledge comprisedwithin this level are:• An awareness of the Generally

Accepted Accounting Principles(GAAP) relevant to the candidate’sgeographical area of experienceand how property is treated in anentity’s accounts

• An awareness of InternationalAccounting Standards (IAS), broadly how IAS vary from NationalGAAP and how property is treatedin an entity’s accounts preparedunder IAS

• An understanding of an entity’sfinancial results and basicaccounting principles includingbalance sheets, profit and loss andcash flow statements

• An understanding of the role of the Auditor.

Examples of activities and knowledgecomprised within this level are:• The application of knowledge

obtained to achieve Level 1 andspecific knowledge of the accountingstandards that relate to property

• Considering financial statements toestablish, for example, the financialstrength of an entity

• Reviewing and understandinganalyst’s reports on financialstatements, eg Dun & Bradstreet

• Considering and understandingcommon financial measures such asreturn on capital employed, NAV, netassets per share, gearing ratio, EBIT,EBITDA and PE ratio.

Examples of activities and knowledgecomprised within this level are:• Providing clients, in an appropriately

supervised manner, with reasonedadvice relating to the financialstanding of a company e.g. foragency activities such as leasing,buying and selling or to assesssuitability for a commercialrelationship

• Preparing, or assisting in thepreparation of service chargeaccounts

• Preparing, or assisting in thepreparation of management accountsfor a property

• Preparing, or assisting in thepreparation of an entity’s accounts iebalance sheet, profit and loss andcash flow statements

• Providing other professional advicerelated to the interpretation and/orpreparation of accounts.

Level 2Provide evidence of interpretationof company accounts and balancesheets in your area of practice andapplication of appropriateaccounting and regulatorystandards.

Level 3Provide evidence of reasoned advice given to clients with regard to profit and loss statements andbalance sheets.


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This competency reflects the complex factors governing auctioneering. It includes aspects of law of sale and contract,misdescription etc, as well as requiring the candidate to have knowledge of the auction process and the reasons forrecommending sale by auction (or otherwise) over and above other methods of disposal.


AuctioneeringReference no. T004

Level 1Demonstrate knowledge andunderstanding of the basicprinciples and legal obligations ofauction. This should includepreparation for, and proceduresprior to or during, an auction.

Examples of knowledge comprisedwithin this level are:• The principles of the law governing

auction and its implications• An understanding of the process of

how an auction works, including anunderstanding of the informationrequired prior to auction and theprocess on the day

• The online auction process.

Examples of activities and knowledgecomprised within this level are:• Compiling information relating to

property/assets to be sold at auction • Producing market appraisals for

reserve and guide price in auctionpreparation

• Assisting in the process of drawingup auction catalogues

• Dealing with queries and issuesraised prior to the auction inconsultation with others

• Dealing with issues arising postauction in consultation with others.

Examples of activities and knowledgecomprised within this level are:• Advising clients on the suitability of

sale by auction • Advising clients on an appropriate

auction reserve and guide price • Attending an auction and selling lots • Involvement with a sale by auction

from start to completion • Managing an online auction sale • Accounting to clients post auction.

Level 2Provide evidence of the practicalapplication of your knowledge to thepreparation for the sale of propertyat auction and procedures prior to orduring an auction.

Level 3Provide evidence of reasonedadvice based on a thorough workingknowledge and experience of theauction process.


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Building Pathology is core to many areas of surveying. It is essential that all candidates have an understanding of defectsanalysis, and the likely resultant defects from failures in building fabric. This will range from the effects of a defective waterproofcovering at simple building pathology, to much more complex defects such as interstitial condensation, and the possible effectson building fabric. Candidates will be expected to have an in-depth knowledge of the range of defects found in typical buildingsin their locality, as well as an understanding of defects that they may come across more infrequently. In order to be competent inbuilding pathology and defects analysis candidates will need to have detailed construction technology knowledge.


Building pathologyReference no. T006

Level 1Demonstrate your knowledge andunderstanding of building defects,including collection of information,measurements, and tests.

Examples of knowledge comprisedwithin this level are:• Defects relating to typical buildings

found in your locality, explain causeand effect of these

• Building defects likely to beencountered in typical buildingsurveying activities

• The various methods to collect, storeand retrieve information for variousdiffering purposes when carrying outproperty inspections

• The various types of inspection thatmay be carried out, and theimportance of the accurate recordingof information during inspection

• Differing types of testing, and thelimitations of the tests, for examplethe use of damp meters, and otherrelevant equipment.

Examples of activities and knowledgecomprised within this level are:• Preparing reports for clients,

explaining in non-technical languagethe causes of failure, and the likelyresults of failure, together with theappropriate remedial measures

• Using information gathered frominspections to formulate thenecessary remedial/preventativeworks including specific detail, in theform of a schedule of works, ifrequired

• An understanding of the appropriatelevel of detail required in typicalreports, including examples of layout,and the use of sketches/drawingsand photographs

• Discussing in detail examples ofunusual defects you have beeninvolved in and remedial worksemployed

• Demonstrating the differentrequirements of reports to clients,(for example the differencesbetween, schedules of condition,schedules of dilapidations, and pre-acquisition reports)

• Using examples, from your ownexperience, to demonstrate yourapplication of knowledge gained atLevel 1

• Costing defect remedy forcomparable analysis and valuation.

Examples of activities and knowledgecomprised within this level are:• Explaining the cause and mechanics

of varying types of failure • Explaining procedures for carrying

out inspections of properties • Explaining, with use of detailed

examples, the relationship betweenobservations taken on site and thediagnosis of failure in building fabric

• Using knowledge and informationgathered from several sources,including if necessary specialistinspections, to diagnose and explainbuilding fabric failure

• Incorporating defect remedy costs invaluation advice to clients.

Level 2Apply your knowledge to undertakesurveys, use survey and otherinformation to diagnose cause and mechanisms of failure.

Level 3Give reasoned advice andappropriate recommendations,including the preparation andpresentation of reports.


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This competency includes valuations and negotiations for inheritance tax, capital gains tax, which may also include advising onstamp duty, capital allowances and advising on litigation. It involves measurement of and analysis of comparables andapplication of evidence to resolve negotiations. It also includes application of statute and case law.


Capital taxationReference no. T009

Level 1Demonstrate knowledge andunderstanding of the relevantprovisions for capital taxation of real estate, equipment and/orother property.

Examples of knowledge comprisedwithin this level are:• Code of measuring practice to

include zoning of shops• Application of statute and case law• Analysis of evidence and relevance

of the law of Landlord and Tenant• Valuation methods applicable to

different types of property.

Examples of activities and knowledgecomprised within this level are:• Undertaking measurement and

inspection• Undertaking valuation of a range of

property types• Using different methods of valuation:

using comparables, the investmentmethod, profits and discounted cashflow techniques where appropriate

• Incorporate taxable deductionswithout capital tax valuations

• Negotiating valuations or bandingsand settlement of cases

• Producing valuations on historicvaluation dates for tax purposes

• Participating in the preparation ofcases to proceed to the appropriatetribunal.

Examples of activities and knowledgecomprised within this level are:• Advising on settlement or litigation

of cases• Advising on the costs of options

and actions• Advising on the impact of such

actions across the wider arena• Advising on appropriate reliefs and

exemptions for capital tax.

Level 2Undertake valuations andnegotiations for a variety of different property types usingdifferent valuation methods for the purposes of capital taxation.

Level 3Provide evidence of reasonedadvice to stakeholders (to includesenior management within your organisation, clients andcourts/tribunal members) in respect of specific cases and/orother capital taxation issues.


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The understanding and practical application, within the appropriate legal framework, of compulsory purchase powers. Includingthe assessment of and claim for compensation. The candidate is expected to have an understanding from both the acquiringauthority and claimant’s position.


Compulsory purchase andcompensationReference no. T011

Level 1Demonstrate knowledge andunderstanding of the powers andprocedures of government andother bodies in relation to thecompulsory purchase andcompensation. This should coverinterests in real estate and of therights of owners and occupiers ofthe various interests in property.

Examples of knowledge comprisedwithin this level are:• The historical background,

requirement for and justification ofthe use of compulsory purchasepowers

• An overview of the variouslegislation covering acquisition ofland and rights, planning andcompensation

• The basic principles ofcompensation (the before and afterprinciple), accommodation works,betterment, equivalence and thelegal right to claim.

Examples of activities and knowledgecomprised within this level are:• Outlining the stages and timing

involved in making, confirming and implementing a compulsorypurchase order

• An understanding of statutoryabilities to acquire rights other thanoutright purchase, such as thoseexercised by utilities companies

• Setting out heads of claim under acompensation claim

• Being aware of and usingappropriately the relevant statutoryand case law in the assessment of aclaim for compensation.

Examples of activities and knowledgecomprised within this level are:• Supplying and justifying evidence for

a statement of claim using bothvaluation and logical techniques toback up the quantum of the claim

• Dealing with best practice in theimplementation of a compulsorypurchase order on say a roadscheme

• Developing a rationale for the use ofcompulsory purchase powers inorder to enable development, takinginto account human rights legislation.

• Being aware of the fee basis forchartered surveyors and the role ofthe Property Arbitrator as well asmediation/arbitration.

• Assisting in the preparation for andattendance at an Oral Hearing into a Compulsory Purchase Orderincluding understanding of procedure and process.

Level 2Assist in the preparation of thevarious stages involved in theprocess of compulsory purchaseincluding the estimation of a claimfor compensation.

Level 3Provide evidence of reasoned advicein relation to the validity and level ofa claim for compensation, using avariety of valuation methodologiesappropriate for the circumstances ofthe claim. Take an active role in thenegotiation of claims, using a varietyof bases of statutory and othervaluation methodologies. Providereasoned advice on the role ofcompulsory purchase in facilitatingplanning and regeneration initiatives.


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This competency covers knowledge, understanding and application of a range of processes related to dispute/conflictavoidance, management and dispute resolution.


Conflict avoidance, managementand dispute resolution proceduresReference no. M006

Level 1Demonstrate knowledge andunderstanding of the techniques forconflict avoidance, conflictmanagement and dispute resolutionprocedures including for exampleadjudication and arbitration,appropriate to your APC pathway.

Examples of knowledge comprisedwithin this level are:A basic knowledge and understandingof some of the following, as mostappropriate to your marketsector/areas of specialism:

• Common causes of disputes• The contribution of some of the

following to dispute avoidance:• Risk management – its basic

principles and techniques• Early warning systems• Partnering techniques• Clear and robust client briefings• Theories of negotiation and the role

of effective communication andnegotiation

• The primary features, advantagesand disadvantages of a range ofdispute resolution procedures andtheir surrounding statutory and/ornon-statutory legal/judicial context(eg how forms of contract deal withdispute resolution, and the scope ofsuch clauses):

• Mediation (could include contractedand project mediation) andconciliation

• Early Neutral Evaluation (ENE)• Dispute Resolution Boards (DRBs)• Dispute Resolution Advisers (DRAs)• Adjudication• Independent expert determination• Arbitration; med-arb• Litigation• The possible roles of a surveyor as

an expert witness and/or anadvocate, to include an awareness ofthe existence and scope ofapplicability of the RICS/SCSIPractice Statements and GuidanceNotes for expert witnesses andadvocates

• The range of nominating bodies andservices available to resolvedisputes, and particularly the role ofthe RICS/SCSI Dispute ResolutionService and any specialized disputeresolution schemes it offers relevantto your market sector.

Continued over page >


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Conflict avoidance, managementand dispute resolution proceduresReference no. M006Continued

Level 2Provide evidence of practicalapplication in your area of practicehaving regard to the relevant law.

Examples of knowledge comprisedwithin this level are:• Advising clients of the most suitable

means of dispute avoidance ontheir projects, and of disputeresolution procedures appropriateto their individual circumstances,demonstrating appreciation of whento seek further specialist advice andwhen to advise clients within thescope of the P.I. cover of thecandidate’s organization

• Adopting - or encouragement of theadoption of (as appropriate) –suitable dispute avoidancetechniques

• Negotiating actively on behalf ofclients (e.g. negotiations of adilapidations claim, a party wallaward or final account on aconstruction project) prior to thirdparty referral

• Assisting in the collation orpreparation of claims/counter-claimsand submissions

• Assisting in the identification,gathering and collation of facts and expert evidence for use in expert reports

• Sufficient understanding of the main points of the statutory or non-statutory law relevantto/underpinning any particulardispute resolution process and itsapplication.

Level 3Provide evidence of the applicationof the above in the context ofadvising clients in the variouscircumstances referred to above.

Examples of activities and knowledgecomprised within this level are:• Involvement in, or assistance with, a

referral to a 3rd party resolutionprocess and associatedmanagement of that process onbehalf of client.

• NB: Please note that the roles ofacting as a 3rd party dispute resolver,expert witness, or advocate, are – forthe vast majority of APC candidates– not likely to be an activity that isundertaken. It is only a small minorityof candidates with substantive workexperience for whom this is likely tobe relevant.


This competency covers forms of construction of buildings, building services provision and technical operation of buildings andother structures. It includes the design or assessment of forms of construction and construction processes commonly used inthe industry which are relevant to candidates’ chosen field of practice.


Construction Technology &Environmental Services

Level 1Demonstrate knowledge andunderstanding of the principles ofdesign and construction relating toyour chosen field of practice.

Examples of knowledge comprisedwithin this level are:• The stages of design and

construction from inception tocompletion

• The impact of current legislationregulations and standards bothnational and international

• How the various elements of thebuilding work and inter-relate,including: sub structures, superstructures, mechanical andelectrical, elevation and fenestration

• The process of construction andalteration

• Operational and maintenanceprocesses

• Alternative construction details inrelation to functionalelements of the design such asdifferent types of piling orstructural frame solutions

• How construction design solutionsvary for different types of buildingssuch as clear span or acousticrequirements.

Examples of activities and knowledgecomprised within this level are:• Utilise knowledge of current

regulations and design standards toensure compliance with legislation

• Prepare annotated sketches detailinghow elements interact

• Identification of mechanical andelectrical services relevant to thearea of work.

• Assessment of design solutions,including form of construction,services, and cost in use and howthis affects value.

Examples of activities and knowledgecomprised within this level are:• Provide advice and

recommendations on forms ofconstruction

• Reporting on the impact of differentdesign solutions andconstruction processes

• Advising on how different designsolutions affect value.

Level 2Apply your knowledge to the designand/or assessment ofconstruction forms or processes.

Level 3Advise on the implications ofselection and application ofparticular forms or processes withinyour area of experience. This shouldinclude liaison with specialists andconsultants.


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This competency is about an understanding of contaminated land in the context of urban and rural land and property assetmanagement, transaction and development, law and planning.


Contaminated landReference no. T015

Level 1Demonstrate knowledge andunderstanding of how land becomescontaminated through humanactivities and natural occurrences.Clearly illustrate the implications ofcontamination for real estatevaluation, development andmanagement.

Examples of knowledge comprisedwithin this level are:• Areas of professional practice

where contaminated land isrelevant, eg management,transactions, environmentalassessment

• The relevance under Planning PolicyGuidance and RICS/SCSI PublishedGuidance and Practice Notes

• Demonstrate an understanding ofthe limitations upon CharteredSurveyors in this area, egProfessional Indemnity Insurance.

Examples of activities and knowledgecomprised within this level are:• Advising clients on the application of

contaminated land to their assetmanagement, planning anddevelopment projects

• Advising clients on the law andregulation and procedures andRICS/SCSI guidance and practiceappertaining to contaminated land

• Assembling specialist team membersto advise on contaminated landassessment and remediation

• Undertaking Review Stage 1 anddesk top environmental reports andadvise clients accordingly.

Examples of activities and knowledgecomprised within this level are:• Providing reasoned advice on

contaminated land issues to clients• Assisting in project management of

and undertaking phasedcontaminated land assessments andremediation options appraisals

• Negotiating and liaising with clientsand regulators on contaminated landissues

• Working with specialist project teamsdealing with contaminated landassessment and remediation.

Level 2Prepare a brief and/or specificationfor the appointment of a specialist(s)to undertake a site investigation.

Level 3Supervise a site investigation,interpret the results of laboratory analyses and make recommendations as to remedial treatments.


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This competency covers the strategic management of occupational property – the space a business or public body needs inorder to operate – taking an overall strategic view about its suitability for that business operation and the financial implications ofcontinued occupation whilst ensuring that the facility is managed on a day to day basis in a cost effective and high qualitymanner to maximize occupational productivity.


Corporate real estate managementReference no. T019

Level 1Demonstrate knowledge andunderstanding of the role of realestate in the context of thecorporate occupier.

Examples of knowledge comprisedwithin this level are:• Understand the role of property,

space use and the financialimplications of acquisition/leasingaccommodation as well as theongoing occupational costs ofrunning the facility in the context ofbusiness/public authorityoperations

• Understand the key interaction ofproperty (accommodation), people(staff/customers), place (location)and euro (financial effects) in thecontext of business or public sectoroperations.

Examples of activities and knowledgecomprised within this level are:• Understanding of the criteria which

drive business/public authoritystrategy formulation and how alignedaccommodation and facility serviceprovision strategies are thendeveloped

• Demonstrating the importance ofaligning operational resourceplanning to meet strategic businessrequirements

• Awareness of the financialimplications of property and facilitymanagement to business operations– the effect on the balance sheet andon the P & L account

• Using analysis techniques associatedwith comparative returns oninvestment, for example in various fit-outs and the return to thebusiness in the short, medium andlonger term. Familiarity with life cyclecosting and whole lifereturns onfacility investment should bedemonstrated

• Communicating the strategicimportance of property and facilities management within aboardroom context.

Examples of activities and knowledgecomprised within this level are:• Advising on property and facilities

management strategiesdemonstrating the following:

• a full understanding of the business,its strategies and financialconstraints;

• corporate support at a senior andpreferably, Boardroom level;

• a strategic, not a tactical day to dayapproach to delivery;

• an ability to procure and manage theeffective and high quality provision ofa wide range of facilities services;

• full knowledge and reliable data ofthe operational portfolio;

• IT availability and user skills.• Developing property and facilities

management plans which supportthe relevant business and includesome or all of the following strategicrequirements:

• occupation cost minimisation;• flexibility of occupation and use• promotion of corporate image;• promotion of a marketing, sales

and/or selling messages;


Level 2Apply your knowledge to themanagement of corporate realestate under appropriatesupervision.

Level 3Provide evidence of reasonedadvice on corporate real estatestrategy to the corporate occupierin order to meet business needs.


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Level 3 continuedProvide evidence of reasonedadvice on corporate real estatestrategy to the corporate occupierin order to meet business needs.


Corporate real estate managementReference no. T019

• improving staff facilities, workplaceconditions and workstyle flexibility;

• improved operational efficiency and productivity;

• facilitating corporate culturechanges;

• protection, realisation and/orenhancement of asset value.

• Using of performance measurementtechniques and benchmarking asvaluable indicators by which toformulate and ‘test’ property andfacilities management strategiesand evidence the added value ofstrategically focused property andfacilities management to thebusiness.

• Using and understanding thevarious methodologies and metricsused by businesses and publicbodies to measure businessperformance and develop anunderstanding of how these may beused to measure the contribution ofproperty and facilities managementto business efficiency, effectivenessand productivity.


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This competency relates to providing reasoned valuation advice to parties when a business is struggling to meet itscommitments. This could include working with a Fixed Charge Receiver or advising insolvency practitioners or turnaroundspecialists and lenders amongst others. It includes valuation advice on a variety of assets including, business assets, intangibleassets, R&D and liabilities as well as trading related real estate and occupational premises.

Note: for the purpose of this competency the term “Fixed Charge Receiver” can be locally interpreted as per the candidate’sgeographical location as required.


Corporate Recovery & Insolvency

Level 1Demonstrate knowledge andunderstanding of the role of theChartered Surveyor in corporaterecovery and insolvency situations.

Examples of knowledge comprisedwithin this level are:• Different types of insolvency routes

for both personal and corporate• Understanding of rights and

remedies available to creditors• Difference between floating

charge/debenture and FixedCharge.

Examples of activities and knowledgecomprised within this level are:• Understanding clients’ needs• Undertaking oral and written

communication with you, clients andother stakeholders

• Implementing agreed strategy• Liaising with other professional

advisers as part of a ‘team’• Differentiating alternative handling of

encumbered, unencumbered or third-party assets

• Understanding the requirements andconsiderations for securingassets for different types ofinsolvency

• Understanding the protectionafforded to a company prior to andduring formal insolvency process

• Being involved with theinstruction/appointment from start tofinish.

Examples of activities and knowledgecomprised within this level are:• Providing input into advice/strategy

with regard to needs and timetable ofclients

• Implementing advice/strategy andability to adapt this as events unfold

• Advising on subject assets andpreparation of schedule of assetswith consideration to different titlesof ownership

• Providing valuation reports detailingthe extent of unencumbered,encumbered and third-party assets

• Providing valuation advice usingappropriate bases of value to includedisposal considerations andrecommendations.

• Providing advice to clients followingreceipt of offers to purchase

• Handling Retention of Title claimsincluding obtaining and assessingrelevant evidence, to provide adviceto clients

• Managing and monitoring financesrelating to an instruction includingproceeds of sale, disbursements andaccounting to clients.

Level 2Demonstrate an understanding ofthe professional services requiredfor the various types of appointmentthat can be made to administer/manage the affairs of insolvent andpotentially insolvent companies andindividuals.

Level 3Provide evidence of reasonedadvice, prepare and present reportson the assets of insolventcompanies and individuals and/or inthe administration of Fixed ChargeReceivership appointments.


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This competency covers how data relating to individual projects and a surveyor’s work generally is collected, stored and retrieved.In addition to having knowledge of the different storage systems and data sources and how they work, a candidate should alsounderstand the principles behind the systems and what makes them effective. Candidates should also have knowledge of howgeneral information and data is managed on a project and the increasing use of computerised central project databases.


Data ManagementReference no. T089

Level 1Demonstrate knowledge andunderstanding of the sources ofinformation, law and datamanagement methods, and thesystems applicable to your area ofpractice, including themethodologies and techniques mostappropriate to collect, collate andstore data.

Examples of knowledge comprisedwithin this level are:• The use of published sources of

data • How data is collected, analysed and

stored within your employer’sorganisation

• How project information is storedwithin your employer’s organisation

• How electronic database systemswork

• The use of computerised centralproject databases or BuildingInformation Modelling, the benefits,challenges and dangers

• How technical libraries are set upand used

• Legislation applicable to datamanagement and data access.

Examples of activities and knowledgecomprised within this level are:• Obtaining data from published

sources for use on a project • Obtaining data from in-house

sources • Extracting data for inclusion in a

database • Setting up and using paper based or

electronic project filling systems • Using a computerised central project

database • Inputting and extractingdata from BIM

• Retrieving information from atechnical library

• Setting up a technical library.

Examples of activities and knowledgecomprised within this level are:• Advising on data storage system • Advising on business filling systems • Benchmarking from analysed historic

data • Advising on the use of a

computerised central projectdatabase

• Complying with client’s data securityrequirements.

Level 2Provide evidence of practicalapplication in your area of practiceand understand the relevance ofinformation gathered and the usesto which it can be applied. Analysethe information and data collected.

Level 3Provide evidence of reasonedadvice given to clients and otherson the use and practical applicationof the information collected andsystems used, and/or specify themost appropriate way for your ownand/or client organisation to collect,analyse and apply relevantinformation and data.


22


This competency is about the role of development appraisals in residential and commercial development. Development appraisals also have a role in residual valuations of development sites but it should be remembered that the two are different activities.


Development appraisalsReference no. T023

Level 1Demonstrate knowledge andunderstanding of the principles and practices underlying a validdevelopment appraisal.

Examples of knowledge comprisedwithin this level are:• The role of development

appraisals inthe marketplace and the situationswhere their use is appropriate

• The content of appraisals andhowdifferent issues such asplanningrequirements can bereflected

• The sensitivities of appraisals,whatfactors affect the appraisal

• Awareness of external factorswhichhave an influence upon theappraisalprocess.

Examples of activities and knowledgecomprised within this level are:• Analysing appropriate sources of

information and data• Preparing appraisals for possible

acquisition, disposal or valuation ofdevelopment sites includingresidential, commercial and/or mixed use

• Using different techniques andsoftware available for appraisals(whilst having an understanding ofthe basic principles of developmentappraisal)

• Undertaking a sensitivity analysis• Assisting in the selection of

appropriate sources of development finance.

Examples of activities and knowledgecomprised within this level are:• Using development appraisals to

advise on the acquisition, disposal orvaluation of development sites

• Advising on the viability of schemesusing development appraisaltechniques

• Advising on the financial viability ofplanning mitigation measures viadevelopment appraisal

• Advising on appropriate benchmarkland values

• Producing reasoned analysis of riskusing appropriate sensitivity analysis

• Advising on the appropriate sourcesof development finance.

Level 2Identify, select, assemble andanalyse data relevant to carryingout development appraisals.Undertake appraisals using relevanttechniques and methodology andidentify possible sources ofdevelopment funding.

Level 3Interpret and provide evidence ofreasoned advice on developmentappraisals and furtheropportunities.


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This competency is about developing an understanding of indirect investment vehicles and debt structures. It requires anawareness of existing vehicles and trends in the market and an ability to advise clients on optimal indirect investment solutions.


Indirect investment vehiclesReference no. T043

Level 1Demonstrate knowledge andunderstanding of the principles ofindirect investment including thedifferent structures and instrumentsrelating to the ownership andfunding of real estate.

Examples of knowledge comprisedwithin this level are:• Understand the different forms of

indirect investments• Understand how property derivatives

work• Understand debt structures such as

CMBSs• Be aware of trends in the indirect

investment markets and the reasonsclients invest indirectly

• Understand the attractions ofvarying forms of indirect holding.

Examples of activities and knowledgecomprised within this level are:• Understanding the investment

implications of indirect forms ofinvestment for clients

• Reviewing structures for indirectinvestment vehicles.

Examples of activities and knowledgecomprised within this level are:• Advising on indirect vehicles to

invest in• Advising clients seeking to divest on

possible solutions such as indirectvehicles, derivatives, etc.

Level 2Apply your knowledge to identifywhich structures might suit aninvestor or lender in any givenscenario. Understand themanagement and risk issues thatmay differ from a more direct formof investment. Gain an appreciationof how investing indirectly canassist portfolio risk and returnmanagement.

Level 3Assist in the analysis andpreparation of reasoned advicecovering the benefits or otherwise ofindirect investment. Participate inthe establishment and managementof such vehicles and demonstrate anunderstanding of how these vehiclesimpact the larger direct market.


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Property inspection is fundamental to providing accurate property advice. It is important that candidates are able todemonstrate knowledge and understanding of the core requirements of property inspection. Assessors will be seekingconfirmation that all candidates have a good knowledge of building construction, location analysis and defects.


InspectionReference no. T044

Level 1Demonstrate knowledge andunderstanding of the differentrequirements for inspection,together with the requiredinformation and factors affecting the approach to an inspection.

Examples of knowledge comprisedwithin this level are:• Understand the requirements and

reasons for a property inspection• Understand safety issues when

undertaking an inspection• Implications of location and situation• Identify access arrangements• Basic knowledge of building

construction and specification• Awareness of the legal requirements

that impact upon theoccupation/ownership of buildings.

Examples of activities and knowledgecomprised within this level are:• Accurate recording of building and

site characteristics• Preparing (or assisting in the

preparation of) reports for clients• Understanding potential defects of

buildings and implications• Assessing quality of location,

design and specification• Inspecting comparable properties in

preparation for valuation..

Examples of activities and knowledgecomprised within this level are:• Preparing reports for clients,

containing detailed informationparticularly with regard to valuationreports and the marketing ofbuildings

• Providing detailed reasoned adviceto clients

• Making clients aware (whereappropriate) of their statutoryresponsibilities

• Giving reasoned advice regarding theimpact of location, quantum andobsolescence

• Giving reasoned advice on theimpact of matters noted duringinspection on value.

Level 2Undertake inspections and apply the information gained to preparereports, schedules and/or registersof equipment, presentingappropriate information gained from the inspection.

Level 3Provide evidence of reasoned advice and recommendations arising from inspections.


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In this context many candidates will be involved with insurance in relation tore-instatement and owner/tenant liability. The candidate should demonstrate a thorough working knowledge of how insurance is dealt with, and likely costs in the market place.


InsuranceReference no. T045

Level 1Demonstrate knowledge andunderstanding of the principles andpractices of insurance in relation toyour area of practice.

Examples of knowledge comprisedwithin this level are:• Elements comprising property/

assets and liability insurance • The regulations governing the

placing of insurance policies • The major terms and factors

influencing Insurance • The general principles of Insurance

Risk Management and maximumprobable loss calculations

• The impact of statutory requirementssuch as health and safetyregulations following losses

• The relating to the ‘Additional Costsof Reinstatement’, i.e. fees, debrisremoval costs, compliance with EUand other legislative requirements.

Examples of activities and knowledgecomprised within this level are:• Placing insurance relating to

property/assets and liability and therole of underwriters, brokers, riskengineers, etc.

• Inspection of property/assets toensure compliance with terms ofinsurance policy

• Liaising and negotiating with tenantsor owners of the insured assets

• Dealing with claims arising from startto completion

• Ensuring compliance with regulationsand governance of insurance

• Negotiation with insurancecompanies in relation to policydetails and wording.

Examples of activities and knowledgecomprised within this level are:• Undertaking assessments and

valuations for insurance purposes• Negotiation with insurance

companies in relation to policydetails and wording

• Ensuring compliance with regulationsand governance of insurance.

Level 2Apply your knowledge and/or beinvolved with the insurance ofconstruction and/or property-related matters.

Level 3Demonstrate a thoroughunderstanding of the regulations and practice governing theinsurance of construction and/orproperty related matters.


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To be conversant with the key principles of investment management theory and practice. Acquire and develop detailed assetmanagement expertise and knowledge across a broad range of sectors and be able to apply these in a strategic context.


Investment managementReference no. T046

Level 1Demonstrate knowledge andunderstanding of the principles offinancial investment in property.

Examples of knowledge comprisedwithin this level are:• Grasp the fundamental elements of

property returns including capitaland retail returns, plus how theseare generated in practice

• Understand the mainstream typesof property valuation and beconversant with the theory behind these

• Gain a good working knowledge of the principles of portfoliomanagement and assetmanagement.

Examples of activities and knowledgecomprised within this level are:• Assisting on selected asset

management activity anddemonstrate how this fits into theportfolio strategic performance plan

• Working with fellow projectprofessionals from a diverse range ofbackgrounds, drawing various skillbases together to achieve an asset orportfolio objective

• Awareness of appropriate legislationand regulations relating to themanagement of property as afinancial investment.

Examples of activities and knowledgecomprised within this level are:• Generating and implementing

strategic advice independently bothat portfolio and asset specific level

• Reporting in a manner thatappropriately communicates this toclients and/or advisers in a focused,relevant manner

• Working knowledge of key legislationand regulation.

Level 2Apply the principles of managingproperty as a financial investment.

Level 3Provide evidence of reasoned and strategic advice on property as a financial investment, includingthe preparation and presentation of reports.


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This competency is about the management of the landlord and tenant relationship. It has a broad scope covering all aspects oflease negotiations arising between landlord and tenant. The candidate will be expected to understand the issues and how theyaffect both parties.


Landlord and tenantReference no. T048

Level 1Demonstrate knowledge andunderstanding of the law andpractice relating to landlord and tenant.

Examples of knowledge comprisedwithin this level are:• The principles of property law• The statutory and common law

framework applying to the landlordand tenant relationship

• The content, form, and structure of leases

• Relevant market conditions andproperty values.

Examples of activities and knowledgecomprised within this level are:• Reading and interpreting leases• Preparing reports containing

recommendations prior to thecommencement of negotiations

• Giving appropriate valuation advice• Carrying out market research,

collating and analysing comparableevidence

• Preparing, serving and responding tolegal notices

• Entering into negotiations• Reaching an agreed solution and

reporting recommendations to client• Instructing legal advisers and seeing

matters to conclusion.

Examples of activities and knowledgecomprised within this level are:• Providing strategic advice upon

landlord and tenant matters, relatingto individual properties or blocks ofproperties

• Dealing with more unusual/challenging cases

• Providing advice as to alternativedispute resolution options in theevent of breakdown of negotiationsand taking any necessary action toprotect the clients position

• Demonstrating involvement withthird party determination andassociated submissions.

Level 2Apply the principles of the law andpractice relating to landlord andtenant. Carry out relevantnegotiations to provide solutions to issues affecting both owners and occupiers of real estate.

Level 3Provide evidence of reasonedadvice, prepare and present reportson the law and practice relating tolandlord and tenant. Apply yourknowledge to assist in undertakingrelevant dispute resolutionprocedures.


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This competency is specifically in relation to the market for leasehold property and includes assignments. Candidates should beable to demonstrate an understanding and experience (if appropriate) of working for both landlord and tenant. The candidateshould have a knowledge of the whole transactional market for property.


Leasing/lettingReference no. T050

Level 1Demonstrate knowledge andunderstanding of how various typesof property are let (or a similarinterest is acquired for a client) andthe different types of interests thatmay be placed on the market.Demonstrate an understanding ofthe economics of the market forsuch interests and the appropriatelegal frameworks.

Examples of knowledge comprisedwithin this level are:• Understand the market for leasing

and letting, and how values andlease terms may be affected bymarket trends and pressures

• Understand the legislativeframework associated with leaseterms and show how this isreflected in the market place

• Show what factors affect value forproperty in the letting market

• Residential building pathology • The quality of location, design and

specification of residential property.

Examples of activities and knowledgecomprised within this level are:• Experience of leasing/letting for both

landlord and tenant• Experience of transaction from initial

inspections through to completion ofdocumentation

• Negotiation with both prospectiveparties and the property owner

• Decision making and recommendationof courses of action includingvaluation advice.

Examples of activities and knowledgecomprised within this level are:• Experience of complex letting/leasing

cases and explaining the factorswhich made the case deviate fromthe market norm

• Commenting clearly on whydecisions were made in relation tothe chosen route of leasing/letting

• Reporting to clients withrecommendations including valuation advice

• Reporting to clients withrecommendations on strategy inrelation to all options for the property

• Dealing with externalities to themarket which may affectleasing/letting

• Utilising negotiation and businessskills in relation to challengingleasing situations

• Providing reasoned advice regardingthe suitability or otherwise of theproperty/assets for leasing/letting.

Level 2Apply your knowledge and skills tothe leasing/letting of all types ofproperty and demonstrate practicalexperience of the associateddecision-making process,marketing, reporting and completionof the transaction. Demonstrateknowledge and understanding ofother forms of property transaction,and of the reasons supporting thedecision to proceed along thechosen leasing or letting route.

Level 3Provide evidence of reasoned adviceand report to clients on all types ofleasing or letting transactions.Demonstrate the ability to seecomplex cases through from start tofinish with appropriate assistance.Be able to provide clients with aholistic view of the entiretransactional market, and advisethem clearly and appropriately, notonly on the letting or leasing market,but also on other areas.


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Valuation and negotiation of rating appeals which may include attendance at Valuation Tribunal. Inspection, measurement andanalysis of comparables. Application of evidence when dealing with appeals to include an understanding of the use ofcomparable rental evidence. Application of statute and casework.


Local taxation/assessmentReference no. T052

Level 1Demonstrate knowledge andunderstanding of the provisions fortaxation of real estate, plant andmachinery and/or other propertytypes at a local/municipal level.

Examples of knowledge comprisedwithin this level are:• Code of measuring practice to

include zoning of shops• Application of statute and case law• Analysis of evidence and relevance

of the law of Landlord and Tenant• Various methods of valuation

applicable to different types ofproperty

• Plant and machinery in respect ofthe above.

Examples of activities and knowledgecomprised within this level are:• Measuring and inspecting properties• Valuing different property types• Using different methods of valuation:

rental and comparative approaches,profits, receipts and expenditure and costs

• Participating in negotiation,valuations and settlement of appeals.

Examples of activities and knowledgecomprised within this level are:• Advising on settlement or litigation

of cases• Advising on the costs of options

and actions• Advising on the impact of various

actions with an appreciation thewider context.

Level 2Undertake valuations andnegotiations for a variety of differentproperty types using differentvaluation methods for the purposesof local/municipal taxation.

Level 3Provide evidence of reasoned adviceto stakeholders (including seniormanagement within yourorganisation, clients andcourts/tribunal members)in respectof specific cases and/or other localtaxation issues.


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This competency is relevant to all data capture and measurement of land or property.


MeasurementReference no. T057

Level 1Demonstrate knowledge andunderstanding of the principles andlimitations of measurement relevantto your area of practice.

Examples of knowledge comprisedwithin this level are:• Relevant data capture techniques

including the use of lasers and tapes• The limitations of different methods

of measurement• Checking procedures for the

instruments used and thecalculations undertaken

• Potential sources of error from useof the instruments

• Understanding the basis on whichmeasurements should beundertaken ie the core definitions ofmeasurement and their application(Gross External Area, Gross InternalArea And Net Internal Area)

• Awareness of the appropriatestandards and guidance relating tomeasurement with particularreference to the RICS/SCSI Code OfMeasuring Practice

• The degree of accuracy that isrequired for different types ofproperty and the use to which themeasurements will be put

• The use and limitations of plans and drawings.

Examples of activities and knowledgecomprised within this level are:• Using the appropriate

instrumentation (including lasers andtapes) to capture sufficiently accuratedata, based on an understanding oflimitations of different instruments

• Dealing with and advising on sourcesof error from use of instruments

• Applying the appropriate guidancecorrectly in practice to undertakemeasurement of a variety ofproperties, understanding the basison which measurements should beundertaken

• Undertaking necessary calculations• Preparing and presenting

measurements in a mannerappropriate for the purpose they areto be used understanding the level ofaccuracy that is required for differenttypes of property.

Examples of activities and knowledgecomprised within this level are:Please note, Level 3 is onlyrecommended for candidates withspecialist knowledge and experience ofsophisticated measurement and datacapture practice. Most propertycandidates will only attain Level 2. For guidance on Level 3 please refer to RICS/SCSI Geomatics Pathway.

Level 2Apply your knowledge to undertakemeasurement. Use basic and/oradvanced instrumentation tocollect data. Present appropriateinformation gained frommeasurement.

Level 3Evaluate, present, manage, analysedata and/or apply spatial data andinformation. Show an advancedunderstanding of accuracy,precision and error sources.


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Planning appraisal is one of the crucial starting points in the development or refurbishment process. Such appraisals drawtogether all of the relevant policies, site history and local context pertaining to a site and the potential to secure planning consent.

Development management covers the process of managing or obtaining the grant of planning consents working for either thelocal authority or client-side perspective. The competency also covers the appeals process and the criteria by which cases willbe considered by inspectors.


Planning development and managementReference no. T061

Level 1Demonstrate knowledge andunderstanding of the key principlesand processes used to determineboth the need for planning consentand the procedures involved inobtaining appropriate planningpermission.

Examples of knowledge comprisedwithin this level are:• The purpose of the development

management system and process • The stages of the development

application and appeals process • The consultation process and

stakeholder management • The decision making process and

role of key stakeholders • The need for supporting information

and basis for determining what isrequired

• Familiarity with appropriate planningpolicy and procedures relevant tothe locality/region of working

• Site/building surveys and details,e.g. site planning history, flood risk,biodiversity, archaeology,architectural character,conservation, accessibility,highways, services and utilities

• Analysis of environmental featuresand issues

• Urban design principles andcharacteristics and their implicationsfor development appraisals

• The role of supplementary planningdocuments, design guides andcodes in guiding planningapplications and their consideration.

Examples of activities and knowledgecomprised within this level are:• Support the making of planning

applications and/or appealdocumentation

• Selecting, researching and analysinginformation and data and writingreports in support of or in responseto planning applications

• Identify and implement appropriateconsultation procedures and respondto issues identified

• Identify and help ensure compliancewith planning policies and guidance.

Examples of activities and knowledgecomprised within this level are:• Liaising with and negotiating with

planning officers, clients, fellowprofessionals and third-partystakeholders in relation to adevelopment project

• Preparing planning appraisals ofland, buildings and concepts andarea wide planning parameter studies

• Making a planning application and/orsubmitting an appeal and appearingat an informal or public inquiry

• Formulating and negotiating aplanning or highways agreements.

• Creativity, problem solving anddispute mediation in schemedevelopment.

Level 2Apply your knowledge to identify,select, assemble and analyseinformation relevant to thepreparation or determination ofappropriate planning applications.

Level 3Apply information and reasonedadvice in the preparation,presentation and/or negotiation ofplanning application and/or appealsdocumentation.


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This competency focuses on the candidates understanding of the range of finance available, their understanding of how this issourced and how this may used to assist with property investment and development scenarios. Candidates will be expected toapply this knowledge in order to provide advice to clients on their financing options and the impact of this on their returns.


Property finance and fundingReference no. T069

Level 1Demonstrate knowledge andunderstanding of the role andimportance of finance in property,including the principal forms ofinvestment finance and theirsources.

Examples of knowledge comprisedwithin this level are:• A broad knowledge of the various

senior debt providers, and theirexpectations in terms of pricing and security

• An understanding of the impact ofgearing on equity returns

• The ability to demonstrate thisgearing affect numerically

• A knowledge of how mezzanine andequity finance might be priced

• A broad understanding of thefinancing process

• Use of financial information such as audited report and accounts.

Examples of activities and knowledgecomprised within this level are:• Analysing investment and

development projects to ascertainthe level of senior debt that could beraised within the mathematical limits

• Applying likely finance pricingrequired by senior debt providers

• Using market knowledge to assesswhether the level of senior debtmathematically capable of beingsustained is acceptable to the debt providers

• Sourcing and collating informationwhich is necessary to support apresentation to secure a financing

• Sourcing and understanding the roleof valuation advice

• Analysing and illustrating the impactof financial covenants.

Examples of activities and knowledgecomprised within this level are:• Analysing and understanding a stand

alone financing from the outset tocompletion and draw down of funds

• Reviewing and comprehendingfinancing documents and inparticular loan agreements andfacility letters

• Confirming that financing documentsreflect the commercial terms agreedand how the controls of the providermay impact on the borrower’smanagement flexibility

• Illustrating multi-tiered financingarrangements numerically and usingthis to assess the true cost of financeat each level

• Advising accordingly on the above.

Level 2Identify the factors that affect theability to obtain finance to fund anyinvestment project. Identifyappropriate sources of finance andunderstand the principles thatapply to securing finance fordifferent purposes.

Level 3Provide evidence of reasonedadvice on maximising the viability ofany funding situation. Demonstrate your appreciation of the impact of property matters on valuation and funding. Demonstrate yourunderstanding of the impact offunding matters on the propertymarket.


33


This competency covers all aspects of day to day functions associated with property management. It includes issues relating toworks, health and safety, landlord and tenant relationships, and service charges. In general, any matter associated with thesmooth running of a property.


Property managementReference no. T070

Level 1Demonstrate knowledge andunderstanding of propertymanagement and the relationshipbetween owner and occupier.

Examples of knowledge comprisedwithin this level are:• Understand the key factors

determining the landlord and tenantrelationship in relation to therunning of a property

• Understand key lease terms andtheir implications to propertymanagement

• Understand how disputes andproblematical issues can beresolved, and be able to prioritisekey tasks.

Examples of activities and knowledgecomprised within this level are:• Managing property from both a

landlord and tenant perspective, and understand the key factors fromeach viewpoint

• Understanding legal requirementsassociated with multi let propertyand/or managed property

• Understanding property managementaccounting principles from thelandlord and tenant perspective, andalso the requirements of law andRICS/SCSI

• Understanding courses of action inrelation to breaches of lease bylandlord and tenant.

Examples of activities and knowledgecomprised within this level are:• Participating in all aspects of

property management includingworks, emergency reactivemaintenance, planned programmes,budgets etc

• Applying your negotiation,communication, and business skillsin relation to contentious issues withboth landlord and tenant

• Participating in issues such asapplications for licence to assign orfor works, together with theassociated legal frameworks.

Level 2Apply the principles of propertymanagement to provide solutions to issues affecting both owners and occupiers of real estate.

Level 3Provide evidence of reasoned adviceincluding the preparation andpresentation of reports in relation toproperty management.


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This competency is about all accounting aspects of Property Management whether this be in the Commercial/Residential orAgricultural fields. The candidate would be expected to have knowledge of all the statutory requirements and be able to reportto Clients as well as Residents associations regarding the accounting results.


Property management accountingReference no. T071

Level 1Demonstrate knowledge andunderstanding of any legal orregulatory principles (includingtaxation implications whereappropriate) that apply to propertymanagement accounts and servicecharge accounts.

Examples of knowledge comprisedwithin this level are:• Understand Lease Terms and

Accounting implications• Landlord and Tenant Act

requirements• RICS/SCSI Codes of practice and

accounting regulations.

Examples of activities and knowledgecomprised within this level are:• Creating Service Charge accounts• Service Charge Budget

implementation• Reporting both Rent and Service

Charge figures to Clients andResidents Associations

• Create Clients accounting systems/templates for Rent and ServiceCharge collection.

Examples of activities and knowledgecomprised within this level are:• Producing Trial Balance for Balance

Sheet Service Charge reporting• Preparing Clients VAT returns.

Level 2Undertake day-to-day managementand recording of propertymanagement accounts and servicecharge accounts.

Level 3Prepare final accounts and taxreturns, and report (applyingstatutory and regulatory standards)on property management accountsand service charge accounts.


35


This competency deals with the use management and development of property information systems (including automatedvaluation models) and systems for registering land and property rights. Property records and information systems areincreasingly sophisticated and are used widely in the public sector (eg for tax assessment or property/land title registration) andthe private sector (eg for residential valuation, property management).


Property records/informationsystemsReference no. T072

Level 1Demonstrate knowledge andunderstanding of the factorsrequired for propertyrecords/information systems,including the sourcing and collationof data.

Examples of knowledge comprisedwithin this level are:• Use and limitations of property

information tools within your area of practice

• Electronic records• Legal documentation (including

leases)• Difference between

deeds/registered titles• Supporting maps/plans• Index maps.

Examples of activities and knowledgecomprised within this level are:• Using a property information system

to extract information for a range ofdifferent scenarios

• Writing clear and factual reports oninformation extracted from a propertyrecord or information system

• Interpreting plan/map data• Interpreting legal language in relation

to property records• Ensuring security of data.

Examples of activities and knowledgecomprised within this level are:• Retrieving data from existing records,

manual or electronic• Advising on security of data• Writing reports on unusual or

challenging cases• Preparing clear and factual reports

and letters to clients• Assisting in the development of a

property information system.

Level 2Demonstrate your ability to applyknowledge to analyse data andassemble it for use in a database.

Level 3Demonstrate your ability to extractdata from propertyrecords/information systems inorder to use and present data forspecific purposes.


36


This competency relates to the purchase and sale of property on a freehold and leasehold basis. Sales and purchases ofinvestment property are therefore included. Candidates should have regard to all property markets and alternative uses andvalues. Similarly, the candidate should have awareness of other forms of disposal.


Purchase and saleReference no. T073

Level 1Demonstrate knowledge andunderstanding of how various typesof property are sold (or a similarinterest is acquired for a client) andthe different types of interests thatmay be placed on the market.Demonstrate an understanding ofthe economics of the market forsuch interests, and the appropriatelegal frameworks.

Examples of knowledge comprisedwithin this level are:• Awareness of the different types of

interests that can be sold orpurchased, and the factorsaffecting value

• Knowledge of factors governing themethods of disposal/acquisitionand the advantages/disadvantagesof each

• Understanding of the legalprocesses needed to complete asale/purchase

• Demonstrate what factors affectvalue for property in thepurchase/sales market.

Examples of activities and knowledgecomprised within this level are:• Selling or purchasing property• Decision making and recommending

courses of action including valuationadvice

• Undertaking transactions from initialinspections through to completion odocumentation

• Negotiating with both prospectiveparties and where appropriateinterested third parties

• Understanding of the legalframeworks governing sale/purchaseand the implications and penalties.

Examples of activities and knowledgecomprised within this level are:• Participating in complex or difficult

cases, and explaining the factorswhich made the case deviate frommarket norm

• Advising on why decisions weremade in relation to chosen route ofsale or purchase; especially inrelation to strategic advice given toyour client on property

• Experience of externalities to themarket which may affectsale/purchase

• Reporting to clients withrecommendations

• Applying negotiation and businessskills to handle difficult situationseffectively.

Level 2Apply your knowledge and skills tothe purchase or sale of all types ofproperty and demonstrate practicalexperience of the associateddecision making process, marketing,reporting and completion of thetransaction. Demonstrate knowledgeand understanding of other forms ofproperty transaction, and be awareof the reasons supporting thedecision to proceed along thechosen purchase or sale route.

Level 3Provide evidence of reasoned adviceand report to clients on all types ofpurchase or sale transactions.Demonstrate the ability to seecomplex cases through from start tofinish with appropriate assistance.Be able to provide the client with anholistic view of the entiretransactional market, and advisehim/her clearly and appropriately,not only on the sale or disposalmarket but also on other areas.


37


This competency is about the provision of strategic consultancy advice to clientson real estate issues influencing the business.


Strategic real estate consultancyReference no. T079

Level 1Demonstrate knowledge andunderstanding of the businesscontext of real estate, and anappreciation of the role of the realestate professional as a strategicadviser.

Examples of knowledge comprisedwithin this level are:• Organisational structures, values

and objectives• Business performance• The role and importance of real

estate in organisational/businessperformance

• The role of real estate in businessstrategies

• Strategic uses of real estate• The role of the real estate

professional as a strategic businessadviser

• Styles of consultancy intervention.

Examples of activities and knowledgecomprised within this level are:• Researching organisational

background• Preparing relevant data• Analysing data• Using different styles of consultancy

intervention for different clients needs• Using your knowledge of real estate

to find strategic solutions to meetclients requirements.

Examples of activities and knowledgecomprised within this level are:• Strategic advice and

recommendations to clients• Presentations to clients• Meetings with clients• Presenting data to support

recommendations.

Note: Candidates are advised againstchoosing Strategic Real EstateConsultancy and Corporate Real EstateManagement together as optionalcompetencies.

Level 2Apply your knowledge andunderstanding of the businesscontext of real estate in a corporateor other context.

Level 3Provide evidence of reasoned oraland written advice on the principlesand application of real estateknowledge.


38


The Performance of commercial property as an occupational or investment asset is increasingly affected by sustainabilityconsiderations. This competency requires a broad appreciation of the core elements of sustainability – economic, social andenvironmental. It covers knowledge of the emerging issues in a broad context, and an understanding of the arguments surroundingthe effect of sustainability on property performance, worth and value. It also includes the tools and techniques being developed toembed the concept into professional property practices such as property agency, investment, management and valuation practice.


SustainabilityReference no. M009

Level 1Demonstrate knowledge andunderstanding of why and howsustainability seeks to balanceeconomic, environmental and socialobjectives at global, national andlocal levels, in the context of land,property and the built environment.

Examples of knowledge comprisedwithin this level are:• Historical background/context –

Brundtland, Earth Summits, Climate Change

• Knowledge of the legal and policyframework – UK legislation and EU directives

• An understanding as to howsustainability relates to property –(energy efficiency, accessibility,flexibility etc ), including anappreciation of the key threats tosustainable property use andperformance

• Understanding how propertyoccupiers and investors areaffected by economic, social andenvironmental sustainabilityconcerns

• Demonstrate knowledge of currentresearch being undertaken onSustainability.

Examples of activities and knowledgecomprised within this level are:• Using and interpreting reports

produced with the main sustainablityrelated tools – such as BREEAM

• Understanding the aims of triplebottom line (TBL) analysis and beable to explain how the techniquemay be adapted to various scenarioswithin your own area of professionalproperty practice

• Producing energy performancecertificates

• Analysing energy efficiency measuresthrough cost benefit analysis.

Examples of activities and knowledgecomprised within this level are:• Providing reasoned advice/qualitative

comment to clients or otherstakeholders on the potentialfinancial impact of sustainability on a property/project

• Providing reasoned comment toclients or other stakeholders on theimpact of sustainabilitylegislation/policy. NB: Sustainabilityadvice may be given in the course ofproviding conventional propertyadvice to clients or otherstakeholders (such as valuation,investment or property/assetmanagement advice)

• Strategic advice on long termsustainability objectives.

Level 2Provide evidence of practicalapplication of sustainabilityappropriate to your area of practice,and of awareness of thecircumstances in which specialistadvice is necessary.

Level 3Provide evidence of reasonedadvice given to clients and otherson the policy, law and best practiceof sustainability, in your area ofpractice.


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This competency is about the preparation and provision of properly researched valuation advice, made in accordance with theappropriate valuation standards, to enable clients to make informed decisions regarding real estate.


ValuationReference no. T083

Level 1Demonstrate knowledge andunderstanding of the purposes forwhich valuations are undertaken;the relevant valuation methods andtechniques; the appropriatestandards and guidance; and anyrelevant statutory or mandatoryrequirements for valuation work.

Examples of knowledge comprisedwithin this level are:• A general appreciation of the main

drivers that have an impact on value• The principles and application of

relevant valuation standards• The principles of Professional

Indemnity Insurance• The underlying principles of

property law, planning and otherrelevant regulations or controls andtheir impact on property values

• The different purposes for which valuations may be required

• The principles of the variousmethodologies needed to provideboth capital and rental valuationadvice

• An understanding of the importanceof independence and objectivity.

Examples of activities and knowledgecomprised within this level are:• Understanding client requirements

and the preparation of Terms ofEngagement

• Inspection and information gatheringrelevant to the valuation work beingundertaken

• Analysis and interpretation ofcomparable evidence

• Application of a range of valuationmethods and techniques

• Preparing valuation reports andadvice to meet client needs andcomply with relevant valuationstandards

• Be able to demonstrate competenceto conduct a valuation task frombeginning to end with appropriatesupervision. To achieve Level 2candidates will not necessarily becarrying out valuations as part oftheir full time day to day activities.

Examples of activities and knowledgecomprised within this level are:• The properties considered may relate

to a particular area of practice butthe candidate’s experience shouldcover a range of purposes (in aproperly supervised manner), such as loan security, financial statements,internal management, purchase orsale reports, tax, stock exchange and litigation, but not necessarily all of these

• The types of property should ideallybe varied both in terms of physicalattributes, usage and also interest (iefree hold and leasehold)

• Knowledge of standards in otherareas of business, eg accountingstandards


Level 2Demonstrate practical competencein undertaking both capital andrental valuations and detailedinvolvement with the preparation andpresentation of client reports.Demonstrate your ability to usevaluation methods and techniquesappropriate to your area of practice.Show how the relevant valuationstandards and guidance have beenapplied to your valuation experience.

Level 3Demonstrate practical competencein undertaking valuations, either of arange of property types or for a rangeof purposes. Demonstrate theapplication of a wide range ofvaluation methods and techniques.Be responsible for the preparation offormal valuation reports under propersupervision and provide reasonedadvice. Demonstrate a thoroughknowledge of the appropriatevaluation standards and guidanceand how they are applied in practice.


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ValuationReference no. T083

Level 3 continued

• The candidate’s knowledge of themain drivers which impact onproperty value should include anunderstanding of the widerinfluences such as governmentpolicy, the economic climate,technological change and otherinvestment medium

• The candidate should demonstrateknowledge as to how their valuationadvice inter-relates with their client’sother professional advisers

• Have an understanding of thedifferent levels of service that maybe required, eg desk top adviceversus a full valuation.


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This competency is about the preparation and provision of properly researched valuation advice, made in accordance with theappropriate valuation standards, to enable clients to make informed decisions regarding businesses and intangible assets.


Valuation of businesses andintangible assetsReference no. T088

Level 1Demonstrate knowledge andunderstanding of the purposesfor which valuations of businessesand/or intangible assets areundertaken; the relevant valuationmethods and techniques; theappropriate standards and guidance;and any relevant statutory ormandatory requirements for thistype of valuation work.

Examples of knowledge comprisedwithin this level are:• An appreciation of the main drivers

that affect value• The principles and application of the

RICS/SCSI Valuation – ProfessionalStandards or other relevantvaluation standards

• The principles of ProfessionalIndemnity Insurance

• The underlying principles ofbusiness and finance, law and otherrelevant regulations or controls thataffect value

• The different reasons for whichbusiness and intangible assetvaluations may be required

• The principles of the variousmethodologies of business valuation

• An understanding of the importanceof independence and objectivity

• Understand the different levels ofservice required, for example desktop advice versus a full valuation

Examples of activities and knowledgecomprised within this level are:• Understanding client requirements

and the preparation of Terms ofEngagement

• Information gathering relevant to thevaluation work being undertaken

• Analysis and interpretation ofcomparable evidence

• Application of a range of valuationmethods and techniques

• Demonstrate competence in carryingout valuation advice from inceptionto completion of a range of assetsfrom: trading businesses, otherbusinesses, unquoted shares,intellectual property, intangibleassets, options, financial instrumentsor liabilities

Examples of activities and knowledgecomprised within this level are:• Preparing valuation reports and

advice to meet client needs andcomplying with RICS/SCSIProfessional Standards where relevant

• Knowledge of relevant legislation andstandards in other areas of business,such as accounting standards andhow these set the valuationframework for share transactions.company/business or asset sales,fiscal valuations including transferpricing, litigation etc.

• Knowledge of the main drivers whichaffect value including anunderstanding of the wider influencessuch as government policy, theeconomic climate, technologicalchange and other investment medium

• Demonstrate knowledge as to howvaluation advice inter-relates with theclient's other professional advisors work [if appropriate].

Level 2Apply your knowledge andunderstanding of businessvaluations showing detailedinvolvement with the preparationand presentation of client re ports.Demonstrate your ability to use thevaluation methods and techniquesappropriate to your area of practice.Show how any relevant standardsand guidance have been applied toyour experience.

Level 3Demonstrate practical competencein undertaking business valuationsand their component parts for arange of purposes. Demonstrate theapplication of the relevant valuationmethods and techniques and athorough knowledge of theappropriate valuation standards andguidance and how they are appliedin practice.


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Dating back to 1895, the Society of Chartered Surveyors www.scsi.ie

Ireland is the independent professional body for Chartered

Surveyors working and practicing in Ireland.

Working in partnership with RICS, the pre-eminent Chartered

professional body for the construction, land and property sectors

around the world, the Society and RICS act in the public interest:

setting and maintaining the highest standards of competence

and integrity among the profession; and providing impartial,

authoritative advice on key issues for business, society and

governments worldwide.

Advancing standards in construction, land and property, the

Chartered Surveyor professional qualification is the world’s leading

qualification when it comes to professional standards. In a world

where more and more people, governments, banks and commercial

organisations demand greater certainty of professional standards and

ethics, attaining the Chartered Surveyor qualification is the recognised

mark of property professionalism.

Members of the profession are typically employed in the construction,

land and property markets through private practice, in central and

local government, in state agencies, in academic institutions, in

business organisations and in non-governmental organisations.

Members’ services are diverse and can include offering strategic

advice on the economics, valuation, law, technology, finance and

management in all aspects of the construction, land and property

industry.

All aspects of the profession, from education through to

qualification and the continuing maintenance of the highest

professional standards are regulated and overseen through the

partnership of the Society of Chartered Surveyors Ireland and RICS, in

the public interest.

This valuable partnership with RICS enables access to a worldwide

network of research, experience and advice.

www.scsi.ie

Society ofChartered Surveyors Ireland38 Merrion SquareDublin [email protected] 01 6445500F 01 6611797

Your APC pathway guide to Valuation Pathway Guide

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Transcript of Your APC pathway guide to Valuation Pathway Guide