When you instruct a surveyor, you are entitled to advice that serves your interests and nobody else’s. Since 1 January 2018, that principle has been backed by a mandatory RICS professional statement, Conflicts of interest, which applies to every RICS member and every firm regulated by RICS, worldwide.
Three kinds of conflict
- A party conflict arises where a surveyor or firm owes duties to two clients in the same or a related matter, and those duties pull in different directions.
- An own interest conflict arises where the surveyor’s duty to the client clashes with the interests of the surveyor, the firm or someone in it.
- A confidential information conflict arises where a duty to share information with one client clashes with a duty to keep it confidential for another.
What surveyors had to do
The statement does not ban every conflict outright. A surveyor may only act where there is a conflict, or a significant risk of one, if all of the following apply:
- everyone affected has given informed consent in advance
- acting is lawful
- it is in the interests of all those affected
- it will not prevent the surveyor from giving competent and diligent advice
Surveyors must keep records of their decisions, of the consent given and of the steps taken to manage any conflict. Firms must have effective systems to identify and manage conflicts, suited to their size and the work they do.
What it means for clients
- Expect a conflict check before an instruction is accepted. It is a sign of a well run firm, not bureaucracy.
- Tell the surveyor who else is involved, such as the other party, their agent or a contractor, so that the check is complete.
- Read any request for consent carefully. Informed consent means you understand what you are agreeing to. Ask questions if you do not.
- Ask about fee arrangements if a fee depends on an outcome. These are not banned, but they must be assessed for conflicts.
Where it matters most
In building surveying, independence is central to the work. A surveyor advising a landlord or a tenant on the condition of a building, or administering a contract fairly between employer and contractor, must be free of interests that could colour the advice. The new statement puts that on a formal footing.
We are Regulated by RICS and apply these requirements to every instruction. Find out more about our Building Surveys and Contract Administration services, or see our condition survey of a 74 property portfolio.