RICS preferred UK PI Broker PROFESSIONAL INDEMNITY INSURANCE FOR START-UP SURVEYING FIRMS PROPOSAL FORM Guidance Notes 1. Please provide CVs for all the Partner(s) / Director(s) / Principal(s) of the Firm. 2. Please ensure this proposal form is completed in ink by a Partner, Director, Principal or Officer of the Firm. Where a question is not relevant to your firm please reply NA. It is imperative that full consultation within the Firm has taken place, prior to submission of this form. 3. A number of questions require YES or NO answers. Please mark the box that DOES apply. 4. Should there be insufficient space to answer any questions please attach further information. Please ensure that any additional information submitted is signed, dates, and makes clear reference to the question(s) to which it refers on the proposal form. If a supplement attaches to this proposal form please mark here 5. Completion of this proposal form does not automatically bind the Firm or Insurers to effect a Contract of Insurance. 6. Wherever the word Partner appears herein, this is deemed to read Partner(s), Director(s) or Principal(s). 7. Wherever the word Employee appears herein, this is deemed to read Any person who is or has been under a contract of service for or on behalf of the Firm. 8. Should the Firm require any advice as to what may constitute material information then the Firm must seek that advice before returning this form. 9. Should you require any advice as to what may constitute material information then the Firm must seek that advice before returning this form. 10. Please send your completed proposal form to Howden Windsor by either emailing to rics@howdenwindsor.com, or by posting to The Surveyors Team, Howden Windsor, 71 Fenchurch Street, London EC3M 4BS or fax to 020 7133 1500. 11. A copy of this proposal form should be retained for your own records. 12. Any information provided on this form, which may include sensitive data (e.g. medical history, criminal convictions, age), will be processed by Howden Insurance Brokers Limited in compliance with the Data Protection Act 1998 and will only be used for the purposes of providing insurance cover and handling claims arising. In the course of our duty as insurance brokers we may be required to provide such data to limited third parties including Insurers and/or circumstance required by law. - 1 -
1 Name and Address Details 1.1 Name of Firm Establishment Date 1.2 Principal Address and Location of all other offices Telephone Number Website Address Email Address Name of person responsible for completing proposal form Please provide a brief description of the services your Firm intends to provide 2 Partners / Directors and Consultants 2.1 Please complete the table below giving details of your Firm s Partners or Directors Name in full of all Partners/Directors Age Qualifications Date Qualification obtained Please complete the table below for all Consultants and qualified staff Names in full of all Consultants and qualified staff Age Qualifications Date Qualification obtained 2.2 If cover is required for any Partner or Director in respect of his/her liability arising from any previous business, please complete the following Name of Partner / Director Name of previous Firm Date left previous Firm - 2 -
3 Fee Income 3.1 Please state for the whole Firm the estimated total annual gross fees in the forthcoming two financial years Year Year UK USA / Canada Elsewhere Total 3.2 In respect of work undertaken outside the UK, are contracts subject to UK law? If YES please give details Country Estimated start date Description of contract Estimated total contract value Approximate completion date Professional services provided 3.3 If any of the fees declared in question 3.1 are likely to be paid by your Firm to any independent and/or sub-consultants please provide the following: Name of Firm / Individual Professional Discipline Estimated fees to be paid 3.4 Will you require sub-consultants to carry Professional Indemnity Insurance for a limit not less than the amount of cover requested by this proposal? N.B. If this is not a requirement and you would like them to be indemnified under your policy for work done on behalf of your Firm, special arrangements must be made with insurers. In such cases a copy of the individual s CV will be required. 3.5 Please refer to page 9 if you require further information / guidance on the definitions below. Please provide an estimated split of gross fees for the forthcoming year. Gross fee splits by sector/activity RESIDENTIAL Estate Agency Property Management Development Appraisals Landlord & Tenant Advisory Structural Surveying Valuations 1) Lending Purposes 2) For Homebuyers Reports 3) Probate / Matrimonial Auctioneering COMMERCIAL Estate Agency Property Management Development Appraisals Landlord & Tenant Advisory Investment & Portfolio Consultancy Structural Surveying Valuations 1) For Lending Purposes 2) For Asset / Balance Sheet Facilities Management Auctioneering SUBTOTAL FOR THIS SECTION Estimated percentage of total fee income - 3 -
Gross fee splits by sector/activity CONSTRUCTION Architectural and Design Contract Administration Project Management where total contract value exceeds 2m Project Management where total contract value is less than 2m Project Co-ordination where total contract value exceeds 2m Project Co-ordination where total contract value is less than 2m Cost Estimation / QS CDM / Health & Safety Building Surveying Planning Other (please specify) RURAL Estate Agency Valuations 1) For Lending Purposes 2) Other (please specify) Auctioneering Estate / Property Management Landlord & Tenant Advisory Investment & Portfolio Consultancy Other (please specify) MISCELLANEOUS LPA Receivership Rating Rent Reviews Furniture and Art Auctioneering* 1 Asbestos & Hazardous Materials Surveys Energy Performance Certificates* 2 Financial Services Plant and Machinery Auctioneering Land Surveying 1) Residential 2) Commercial Setting Out Compulsory Purchase Dispute Resolution, Expert Witness and Adjudication Other (please specify) TOTAL Estimated percentage of total fee income *1 Does the average value of items auctioned exceed 50,000? *2 If you intend to provide EPCs will PI cover be provided by a recognised Accreditor? 3.6 Please advise the estimated geographical spread of your business in the forthcoming year Scotland % East Anglia % North West England % South West England % North East England % London/South East England % Midlands % Others (please specify) % Wales % % Northern Ireland % % Total 100% - 4 -
3.7 Please state the 3 largest contracts awarded to the firm where construction is expected to start within the next 12 months Start Date Approximate completion date Description of contract Estimated total contract value Estimated fee Extent of service to be provided 4 Survey and Valuation Work 4.1 What is your estimated largest and average valuation size for: Largest Average Purpose (i.e. valuation for lending purposes or accounting purposes) Residential Commercial 4.2 Will you always re-inspect for re-evaluations or re-assignments of existing surveys? If NO, what is the maximum period for which you will deem your valuation / survey to be current before such re-inspection is required? Please specify: 4.3 What, if any, internal Quality Assurance Standards will be in place to confirm / support the accuracy of any valuation survey? Please advise nature and period of use: 4.4 Will you operate any form of manual or computer cross referral of valuations of similar / identical properties? If YES please specify: YES NO 4.5 Will you abide by the RICS Manual of Valuation Guidance Notes and the Statement of Asset Valuation Practice issued by RICS in preparing valuations? If NO please explain the circumstances in which the above is not abided by 4.6 Will all practitioners carrying out valuations be registered with the RICS Valuer Registration Scheme 5 Associated Companies 5.1 Will your Firm or any Partner have, or have they had, in the past six years, a financial interest in any other firm or organisation (other than as a shareholder in a Publicly Quoted Company)? If YES give full details of the nature of the association or interest together with the name and the nature of the business of the firm or organisation. - 5 -
6 Consortium / Joint Venture 6.1 Will your Firm or any Partner be a member of a consortium / joint venture or be engaged with any other firm or person in a Single Project Partnership? 6.2 Has the Firm or any Partner previously been a member of a consortium or a joint venture or engaged with any other firm or person in a Single Project Partnership? (If the answer to either of the above is YES, please give the names of other members / partners and their capacities in the consortium / joint venture) N.B. Special arrangements must be made with underwriters if coverage is required for work done whilst a member of a consortium or joint venture. In such cases a copy of the consortium agreement will be required. 7 Risk Management and Internal Control Procedures 7.1 a) Has any Firm suffered any loss during the past ten years through the fraud or dishonesty of any Director, Partner or Employee? b) Has any Director, Partner or Employee ever been the subject of an investigation or disciplinary proceedings by the Royal Institution of Chartered Surveyors? 7.2 Will your Firm insist on satisfactory written references from former employees for the three years immediately preceding the engagement of any employee responsible for money, accounts or goods? 7.3 Will any Director, Partner or Employee be authorised to sign cheques on their sole signature in respect of the Firm s or Clients accounts? If YES please state name, position and limit 7.4 Will cash-in-hand, petty cash, counterfoils and bank statements be checked independently of the employee responsible? 7.5 Will the Firm have any management systems in place relating to: a) Quality b) Health and Safety c) Environment If YES please provide details (i.e. ISO 9001, ISO 14001, OHSAS 18001) 7.6 Will a diary system be used to ensure deadlines are met and critical dates are not missed? 7.7 If not a sole practitioner, will work undertaken by staff be regularly reviewed by a principal or qualified manager? 7.8 Will working papers including records of all contracts, letters of engagement, client meetings and telephone calls be retained for at least 5 years? 7.9 Will a formal review of working procedures be undertaken at least annually? 7.10 Will written procedures or checklists be used for professional / technical services provided? - 6 -
7.11 If not a sole practitioner, will work undertaken by staff be regularly reviewed by a principal or qualified manager? 7.12 Will contracts or terms of engagement, including any changes be evidenced in writing stating the work to be undertaken and the extent of the Firm s responsibility? 7.13 Will a Principal be responsible for allocating all new instructions / contracts? In respect of Property Management 7.14 Will deposit cheques always be required? 7.15 Will it be made clear as to who is responsible for issuing notices? 7.16 Will there be procedures in place for obtaining references for prospective tenants? 8 Previous Applications for Insurance 8.1 Has an Insurer ever: a) Declined to insure any Partner, Principle or Director? b) Imposed special terms? c) Cancelled or voided insurance? If any answer is YES please give full details YES YES YES NO NO NO 9 New Policy Arrangements 9.1 Please specify the limit of indemnity you require quotations for and the level of excess you are prepared to carry. If you would like quotes for variable limits and various excesses please state below Limit(s) of indemnity Excess 9.2 If you have any specific requirements with regard to your Professional Indemnity insurance please state these in the space provided below - 7 -
10 Claims 10 Please list, in respect of the current Partners / Directors of the Firm for the last 10 years: a) All claims made against them And b) All circumstances or events disclosed to insurers If none, please check the box Date Claimant Details of project and an outline of allegations Amount of Claim Settlement amount and date Defence costs DISCLOSURE It is essential that when you are seeking a quotation, taking out or renewing an insurance, that you disclose all material facts to Insurers. A material fact is one that is likely to influence the judgement of an Insurer in fixing the premium or in determining whether to accept the risk. If you have any doubt about facts considered material you should disclose them. Failure to disclose a material fact could prejudice your rights to indemnity in the event of a claim or cause insurers to void your policy. DECLARATION Please read the declaration carefully and insert a signature and date when required. I/We declare that the statements made and particulars given in the Proposal are true and I/We have not misstated or suppressed any material fact. I/We undertake to inform Insurers of any material alteration to these facts occurring before completion of the contract of insurance Signature of Partner/Director Date Howden Windsor is a trading name of Howden Insurance Brokers Limited, a subsidiary of Howden Broking Group Limited, part of the Hyperion Insurance Group. Howden Insurance Brokers Limited is authorised and regulated by the Financial Services Authority: Firm reference number 312584. Registered in England and Wales under company registration number 203500. Registered office: 16 Eastcheap, London EC3M 1BD. - 8 -
SPECIAL NOTICE PLEASE MAKE SURE THAT EACH HEADING BELOW IS UNDERSTOOD BEFORE COMPLETING QUESTION 3.5 RESIDENTIAL Estate agency Acting as agents for clients wishing to acquire or sell residential property. Marketing or allocation (as appropriate) and agreement of terms on behalf of landlords for the letting of residential property. Property Management The management of residential property including collection of rents and the calculation and collection of service charges. Development Appraisals Advising on all aspects of a proposed residential development, including suitable uses, planning situation and requirements, financial aspects, implementation etc. Landlord and Tenant Advisory Advising landlords and tenants on matters including lease renewals, leaseholder enfranchisement, service charges etc. Structural Surveying Investigating and assessing the construction and condition of a residential property including the production of RICS Home Condition reports. Valuations Lending purposes The inspection, reporting on, and valuation of residential property as security for a loan. For Homebuyers Reports As defined by the RICS. Probate/Matrimonial The inspection, reporting on and valuation of residential property for all purposes other than lending and for general accounting purposes. Auctioneering Sale by public auction of all types of residential property. COMMERCIAL Agency Acting as agents for clients wishing to acquire or sell commercial property. Marketing or allocation (as appropriate) and agreement of terms on behalf of landlords for the letting of commercial property. Property Management The management of commercial property, including collection of rents and the calculation and collection of service charges; the specific duties are agreed with the client. Development Appraisals Advising on all aspects of proposed development, including suitable uses, planning situation and requirements, financial aspects, implementation etc. Landlord and Tenant advisory Advising landlords and tenants on matters including lease renewals and dilapidations. Investment and portfolio consultancy The assessment and provision of advice to property investors as to suitability of proposed investments and the terms upon which property acquisitions and disposals should be effected in order to meet the client s objectives. - 9 -
Structural surveying Investigating and assessing the construction and condition of a commercial or industrial property. The extent of the survey is agreed between the client and the surveyor. The report includes reference to visible defects and guidance as appropriate on maintenance and remedial measures. Valuations Lending purposes The inspection, reporting on, and valuation of commercial property as security for a loan. For Asset/Balance Sheet The inspection, reporting on and valuation of commercial property for all purposes other than lending including general accounting purposes. Facilities management The development, co-ordination and management of an organisation s buildings and services (including their systems, plant, IT equipment, fittings and furniture). Auctioneering Sale by public auction of all types of commercial property. CONSTRUCTION Architectural and Design The design of new buildings and structural alterations, including refurbishment and modernisation programmes where load bearing surfaces are affected. Contract Administration Ensuring contractual duties and responsibilities are met by the contractor during the construction phase of a project. Includes the review of change order requests, preparation of payment certificates and tracking of Letters of Credit and providing support for financing. Project Management Responsibility for the identification, appointment and monitoring of other professionals and/or non professional individuals, firms or companies necessary to the delivery of a contract. Project Co-ordination Overall co-ordination of a team involved in construction or development projects. Cost Estimation/QS The management of cost, time and quality in relation to building and engineering projects. CDM/Health and Safety Providing Planning Supervisor Services under the Construction (Design and Management) Regulations 1994. Providing general advice on Construction Health and Safety, risk assessment etc. Building Surveying Advice relating to the occupation and construction of property, from design to facilities management. Planning Assessing the physical and social impact of built environment taking into account design, build quality, IT, climate, transport, and sources of renewable energy. RURAL Agency Acting as agents for clients wishing to acquire or sell rural property including agricultural and forestry property. Marketing or allocation (as appropriate) and agreement of terms on behalf of landlords for the letting of rural property. - 10 -
Valuations Lending purposes The inspection, reporting on, and valuation of rural property as security for a loan. For other purposes The inspection, reporting on and valuation of rural property for all purposes other than lending including general accounting purposes. Estate/Property Management Collection of rent, arranging repairs and insurance, advising on the development and long-term planning for estates owned by private individuals, institutions and others. Landlord and Tenant Advisory The negotiation of the terms, and establishment and renewal of tenancies of agricultural land and associated buildings. Investment and Portfolio Consultancy The assessment and provision of advice to property investors as to suitability of proposed rural investments and the terms upon which property acquisitions and disposals should be effected in order to meet the client s objectives. Agricultural Auctioneering Sale by public auction of all types of rural land, property, livestock and farm equipment OTHER LPA receivership Acting for banks and private lenders who have secured their loans by a Legal Charge (mortgage) on a property where the terms of the mortgage are not being met. Rating Valuation for rating of all types of property; expert evidence on values; advising as to assessments and rating liability, preparing returns and lodging objections and conducting appeals against and proposals for amendment to valuation lists; advising on rating claims, drainage rates. Rent Reviews Advising on rental levels during the term of a lease. Furniture and Antique auctioneering Sale by public auction of all types of furniture, chattels and antiques Asbestos and hazardous materials surveys Surveys to establish the presence of Asbestos or other substances hazardous to health, risk management and advice on control or disposal. Energy Performance Certificates The provision of Energy Performance Certificates Financial Services The provision of any services including insurance broking that are regulated by the Financial Services Authority. Plant and Machinery auctioneering Sale by public auction of all types of plant and machinery excluding that used for agricultural purposes. Land Surveying Measuring, marking, recovering, and mapping the relative positions or locations of terrain features and real property boundaries. Setting Out Establishing a straight and correct line between two points on a map or between two points on a field establishing the shortest distance. Compulsory Purchase Acting for acquiring authority or owner/occupier affected by compulsory purchase proceedings or the carrying out of public works: dealing/making objections, conduct of possession/relocation negotiations, agreement of compensation for acquisition or depreciation. Dispute resolution, expert witness and adjudication Resolution of disputes between landlords and tenants. Provision of evidence to arbitrators and Tribunals. Advice before and during the conduct of an arbitration, adjudication or mediation to resolve disputes in the construction industry. Advising on procedure and tactics. Acting as advocate and/or expert witness. Howden Windsor is a trading name of Howden Insurance Brokers Limited, a subsidiary of Howden Broking Group Limited, part of the Hyperion Insurance Group. Howden Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority: Firm reference number 312584. Registered in England and Wales under company registration number 203500. Registered office: 16 Eastcheap, London EC3M 1BD. - 11 -