60

Click here to load reader

RICS Modus, Global edition — Dec–Jan 2011

  • Upload
    rics

  • View
    238

  • Download
    6

Embed Size (px)

DESCRIPTION

#RICSModus, Dec–Jan 2011 — the ENERGY issue.

Citation preview

Page 1: RICS Modus, Global edition — Dec–Jan 2011

THE ENERGY ISSUE

rics.org/modus

CLEAN TECH Assessing the potential of seven renewables p14GO NUCLEAR Opportunities in a multibillion-pound market p30 VILLAGE GREEN The German exemplar of self-sufficiency p36

MOD

US 12.11 // 01.12 R

ICS.OR

G /MO

DU

STH

E ENERGY ISSU

E

12.11 // 01.12

MODUS_Dec_p01_Cover.indd 1 25/11/2011 10:09

Page 2: RICS Modus, Global edition — Dec–Jan 2011

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

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

Live-in Security Guardians

Don’t just lock it, Ad Hoc it™

020 7354 5458 www.adhoc.euCall for a quote

Modus_Oct_P2_AdHoc_ad.indd 1 23/11/11 13:29:45

Page 3: RICS Modus, Global edition — Dec–Jan 2011

FUELLING THE DEBATE

NOMA BARRenowned Israel-born illustrator and designer Noma has published two books and illustrated more than 60 covers for magazines such as Time Out, The Economist, Wallpaper* – and now Modus.

JAMES MURRAYThe founding editor of BusinessGreen, James is a leading commentator on the low-carbon economy. He was voted number eight in Press Gazette’s top 50 environmental journalists in the UK.

BENJAMIN GERULLBenjamin is an architectural and fine art landscape photographer who lives and works in Munich, Germany. He photographed the eco village of Wildpoldsried in Bavaria for this issue.

12.11 // 01.12 MODUS 03

Regulars

04FEEDBACKYour letters, and the latest Modus poll

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

29LAW ADVICEThe new rules on creating alternative business structures

41BUSINESS ADVICEHow the new EU late payment directive will benefit SMEs

Features

14RENEWABLE ENERGY Which technology has the most potential?

2210 MINUTES WITH…Gary Sloan MRICS of Gardiner & Theobald

24GREEN DEALWhat the plans mean for the profession

30POWER SURGELooking at the opportunities for working in nuclear

36ECO VILLAGEWhy Wildpoldsried in Germany is a model for energy efficiency

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

51EVENTSExhibition, training and conference dates for your diary

55RECRUITMENTThe latest job opportunities from across the industry

58THE MEASUREEnergy generation and consumption

Energy presents a huge global challenge. Increasing demand on finite fuel supplies,

coupled with ambitious climate change targets, demand a rebalance in the energy

mix and a rethink of the part that nuclear power and renewable technologies can play.

But there are opportunities, too: this issue, we assess the potential of seven of the

most common renewables (page 14), consider the opportunities offered by the UK’s

multibillion-pound nuclear programme (page 30), and ask whether the Green Deal can

provide the solution to our inefficient housing stock (page 24). Elsewhere, we head

to the remote Scottish island of Jura to meet a surveyor involved in a dam storage

hydro project (page 22), and to Germany to visit the energy self-sufficient village of

Wildpoldsried, a shining example of sustainability and localism in action (page 36).

VICTORIA BROOKES EDITOR

Information

Contributors//

Contents//:12.11 // 01.12

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

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

Live-in Security Guardians

Don’t just lock it, Ad Hoc it™

020 7354 5458 www.adhoc.euCall for a quote

MODUS_Dec_p03-4_Content & Letters.indd 4 23/11/2011 11:58

Page 4: RICS Modus, Global edition — Dec–Jan 2011

FOR SUNDAYEditor Victoria Brookes // Art Director Christie Ferdinando

// Contributing Editor Brendon Hooper // Art Editor

Lauren Webb // Sub Editor Samantha Whitaker // Creative

Director Matt Beaven // Account Director Stephanie Hill //

Commercial Director Karen Jenner // Commercial Manager

Lucie Inns // Senior Sales Executive Faith Ellis // Recruitment

Sales Managers Grace Healy and Dorlisa Purkiss // Managing

Director Toby Smeeton // Repro F1 Colour // Printers

Woodford Litho and Ancient House Press // Cover Noma Bar

Published by Sunday, Studio 2, Enterprise House,

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

FOR RICSEditorial board Ian Fussey and Jaclyn Dunstan

RICS, Parliament Square, London SW1P 3AD

Feedback//

diplomatic treaty between 17 countries. In 1960, the 11th General Conference on Weights and Measures adopted the name International System of Units (Système International d’Unités or SI) for the recommended practical system of units of measurement. SI consists of seven independent base units: the metre (m), the kilogram (kg), the second (s), the ampere (A), the kelvin (K), the mole (mol) and the candela (cd). There is also a standard set of prefi xes: micro- (µ-), meaning millionth; milli- (m-), meaning thousandth; kilo- (k-), meaning thousand; mega- (M-), meaning million.’

LEADING THE WAYCan I applaud Modus for focusing on minerals and waste in your latest issue [November]. As a chartered environmental surveyor in private practice, and a graduate of the RICS-accredited Mineral Estate Management degree at Sheffield Hallam University in 1996, it is important to remember that

04 r ics.org

our profession has been the leader in environmental and sustainability matters for many years. It can even be argued that chartered surveyors are the original environmental professionals. Therefore I am very enthusiastic about RICS’ current work to help shape a sustainable future in all areas of professional practice – and this, in my opinion, will help attract the next generation to our profession.David Inman MRICS, Blackburn

The MODUS team//

JOIN THE DEBATE

:YOUR VIEWS ON RICS AND RECENT ISSUES OF MODUS

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

92,028 average net circulation 1st July 2010 – 20th June 2011

THE MODUS POLL :WHICH RENEWABLE ENERGY TECHNOLOGY DO YOU THINK HAS THE MOST POTENTIAL?Total votes: 812

Visit rics.org/modus now to vote in our next poll: ‘What do you think is most responsible for high street decline?

MISMEASUREMENT?The statement [in the Measure, September] that Myanmar, Liberia and the US are the only countries not having the metric system of measurement fi rst adopted by France in 1799 prompts me to ask (yet again) what happened to the Système International (SI), the system adopted by Britain if I remember correctly in February 1971, an amendment to the 5th Edition Standard Method of Measurement being issued accordingly (albeit entitled 5th Edition Metric).

The construction and engineering industries still reflect the SI system, a principal feature being measurement to the base one thousand (i.e. no centimetre, decimetre and dekametre; only millimetre, metre and kilometre). The centimetre is in almost universal use elsewhere, and is taught in schools. I sometimes feel that whenever I raise this issue I am not believed, most seemingly not having even heard of SI. Some years ago I wrote to RICS with this same query, which gave rise to a telephone call from someone who off ered a far from convincing and waffl ing answer, lacking in any precision. I would have at least expected a profession that is signifi cantly concerned with measurement to have the answer!Michael Hawkyard FRICS

According to our research, the Système International is the modern form of the metric system. The UK Metric Association (ukma.org.uk) says: ‘The development of the metric system was made truly international in 1875 by the signing of the Convention du Mètre, a

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

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

That’s why we are committed

to being as flexible as possible in

agreeing and signing a deal that

works for everyone.

That’s what partnership is all about.

WWW.KFCDEVELOPMENT.CO.UKFind out more online at

or call us today on 01483 717 188 if you know a site

that fits our requirements.

SIGN ABOVE

B2B_FLEXIBILITY_MODUS.indd 1 26/09/2011 13:08

Geothermal

10.7%

Tidal

23.8%

Hydro

7.3%Wind

13.4%

Solar

27.3%

GET IN TOUCH //:ONLINErics.org/modustwitter.com/RICSnewstwitter.com/modusmag

:[email protected]

Energy from waste

13.3%

Biomass

4.2%

MODUS_Dec_p03-4_Content & Letters.indd 5 23/11/2011 11:58

Page 5: RICS Modus, Global edition — Dec–Jan 2011

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

That’s why we are committed

to being as flexible as possible in

agreeing and signing a deal that

works for everyone.

That’s what partnership is all about.

WWW.KFCDEVELOPMENT.CO.UKFind out more online at

or call us today on 01483 717 188 if you know a site

that fits our requirements.

SIGN ABOVE

B2B_FLEXIBILITY_MODUS.indd 1 26/09/2011 13:08MODUS_Dec_p03-4_Content & Letters.indd 6 23/11/2011 12:00

Page 6: RICS Modus, Global edition — Dec–Jan 2011

Intelligence// :NEWS :REVIEWS :OPINIONS :REACTIONS

Imag

e Bu

sine

ss W

ire

MODUS_Dec_p06-7_Intel_opener.indd 6 23/11/2011 12:05

Page 7: RICS Modus, Global edition — Dec–Jan 2011

The colossal 19.9MW Gemasolar plant in southern Spain generates 110 GWh per year, enough electricity for around 25,000 households in the region, and now its developers have figured out a way to provide continuous solar energy, even at night. The plant’s owner, Torresol Energy, recently supplied its first uninterrupted day of electricity to the network using a new thermal transfer technology involving molten salt. A collection of 2,650 heliostats (moving mirrors) direct the sun’s energy to a receiver at the top of a 140m-high tower, which then transmits it to molten salt compounds circulating within the receiver. The heat collected by the salts, which are capable of reaching temperatures above 500ºC, boils water to produce steam, which drives turbines to generate electricity. The power is sent through a high-tension line to the substation of Villanueva del Rey, where it is injected into the grid. Incredibly, solar energy stored in the salt compounds can be used for power production for up to 15 hours after sunset. Torresol Energy eventually hopes to supply 24-hour electricity through an entire summer, and achieve a higher annual capacity factor than even a nuclear power plant. It is estimated that generating electricity this way will reduce atmospheric CO2 emissions by more than 30,000 tonnes a year.

:GEMASOLAR ANDALUSIA, SPAIN

MODUS_Dec_p06-7_Intel_opener.indd 7 23/11/2011 12:05

Page 8: RICS Modus, Global edition — Dec–Jan 2011

08 r ics.org

Intelligence//

08 r ics.org

Opinion

NUCLEAR POWER IS A VITAL PART OF THE ENERGY MIX

Since September, property and construction fi rms have been providing feedback to help develop a standard for Green Deal installers. The British Standards Institution and the Department for Energy and Climate Change asked fi rms to comment on a draft of the publicly available specifi cation,

known as PAS 2030, which addresses issues such as installation controls, inspections, handover and corrective action procedures. All Green Deal installers will have to be certifi ed, and feedback from the industry has been crucial in providing best practice guidance. The full PAS will be published in January.

The number of European companies considering global expansion is up for the second year in a row, according to research from Cushman & Wakefi eld. The European Cities Monitor 2011, a survey of 501 companies in nine countries, shows that Shanghai remains the favourite destination for

companies thinking of setting up an offi ce abroad, with 40 fi rms anticipating expansion there in the next fi ve years. Rio de Janeiro, São Paulo, Buenos Aires and Sydney also remain popular expansion destinations, and London continues to be the best city to locate a business, according to the survey.

UK // GREEN STANDARD Europe // EXPANSION UP

Over 20 years since Britain privatised its electricity sector, there is a growing climate of confusion and concern as to how the UK will meet strict EU

climate change targets and keep the lights on at affordable prices. For the fi rst time since the 1970s, a failure to deliver a sustainable energy policy will have deep political and economic implications.

A balanced mix of energy is the best way to maximise security of supply and stabilise prices. Until the middle of the last decade, the UK was powered by a combination of coal, nuclear, oil and gas power plants. Weather-dependent renewable sources were, and still are, small but growing contributors. Tony Blair saddled the UK with the most ambitious and onerous renewable growth and carbon reduction targets of any EU state, leading to the swift deployment of huge public subsidies to support the construction of vast onshore and offshore wind farms in a herculean attempt to meet them. The EU states the UK must produce around 33% of its electricity from renewable sources by 2020; it is currently managing less than 7%.

New nuclear power stations are vital. But political indecision over the past 20 years means new plants won’t be commissioned until the early 2020s, and won’t make a net contribution to the electricity supply until the mid to late 2020s. Nuclear plants are initially expensive to build but, importantly, they have a much longer lifespan than other conventional power stations. They are zero carbon and are able to produce comparatively low-cost baseload electricity. They also insulate the UK from international fossil fuel prices, which is important when

the UK is set to become more, not less, dependent on imported fuel, particularly gas.

Britain’s post-war love-hate relationship with nuclear power is a tale of blinkered decision-making and broken dreams. The ill-fated decision to choose gas-cooled reactors in the 1960s and 70s – because they were designed in Britain – over the more effi cient and reliable US-designed water-cooled reactors led to chronic delays and multibillion pound overspends in today’s money. The industry never regained its early confi dence. Hopefully, developers in the future will learn from these past mistakes.

New nuclear plants are key to the UK achieving its targets, but they are already behind schedule. The government must do everything in its power to ensure their smooth and speedy delivery. Failure to do this will expose the UK to high energy prices and will dictate politics for a generation. The stakes could not be higher.

TONY LODGE is a research fellow at the Centre for Policy Studies and author of various books on UK energy policy. cps.org.uk

Tony Lodge Political and energy analyst

ATOMIC AGEHeysham 2 in Lancashire is one of the UK’s 19 nuclear reactors. Operational since 1988, it is due to be closed in 2023

Imag

es C

orbi

s, S

cagl

iola

Bra

kkee

, Rot

terd

am, R

ay-u

s cor

pFOR MORE on the UK’s nuclear new build programme, see p30

MODUS_Dec_P08-13_Intel.indd 8 23/11/2011 13:22

Page 9: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

:ONE BIG QUESTION WHICH RENEWABLE ENERGY TECHNOLOGY DO YOU THINK HAS THE MOST POTENTIAL?

12.11 // 01.12 // MODUS 09

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

Nigeria Deciding on the most suitable renewable energy depends on four factors: the payback period, the type of technology, its architectural value in the location and the availability of sources.

Portugal Great potential exists for the development of off shore wind power in the UK, but I think we need to develop a European super-grid that allows integration of diff erent renewables across the region.

South Wales Someone should develop a commercial sea water source heat pump as there is an unlimited amount of stored energy in the coast around the UK. It all sounds too easy. What’s the catch?

Andrew C Osakwe MRICS, Ejik-Donene & Partners

John Rowlands MRICS, CBRE

Robert John Fisher MRICS, Robert Fisher Limited

West Midlands The mistake is that we don’t provide suffi cient diversity and become overly reliant on one form of technology, as we have with carbon fuels. We should try to reduce energy use in general.

Lancashire Wind power would be great if it could be effi ciently harnessed on individual properties to provide their own energy needs, without the eyesore of the huge turbines needed today.

Ian Parker, Beckwater Ltd

Tim Jones MRICS, Tim Jones Management Consultancy Ltd

16%The percentage of the UK’s electricity generated from

nuclear power in 2009. In 1997, the fi gure was 26%

UKWIN WITH BIMThe UK’s largest contractor, Laing O’Rourke, has said that building information modelling (BIM) was key to winning the contract to build London’s Cheesegrater (122 Leadenhall Street). ‘The developers said we demonstrated a discipline on the process that they’d never seen before,’ said James Eaton, head of cost management. Following research that showed only one in 10 QS fi rms are regularly using BIM, RICS has advised the profession to adopt the technology to remain competitive.

NetherlandsBEYOND ROOFING

Oil giant BP may not have the greenest reputation, but its new Rotterdam offi ce showcases its safety and sustainability credentials. Designer Group A has constructed a vast green roof to insulate and protect the building from explosion risks at a nearby refi nery. Passive design principles and a highly insulated façade reduce energy use in winter, while shade screens minimise heat gain in summer.

KoreaHIGH COSTS

Construction has begun on the Yongsan Landmark Tower in Seoul, predicted to become the world’s most expensive building. Although only 100 storeys tall, the cost of the land and the building is predicted to reach more than KRW4tn (£2.2bn). Designed by Studio Daniel Libeskind and built by Samsung Corporation, the tower will be fi tted with the fastest lifts in the world, while GPS surveying technology will ensure its height is accurate to 25mm.

MODUS_Dec_P08-13_Intel.indd 9 23/11/2011 13:22

Page 10: RICS Modus, Global edition — Dec–Jan 2011

08 r ics.org

LOFT AMBITIONInsulation is one of a number of energy-effi ciency improvements that will be available under the Green Deal

Opinion

A CAUTIOUS WELCOME TO THE GREEN DEALMartin Russell-Croucher MRICS Director of Sustainability

Now the Energy Act is a reality, the countdown to the introduction of the Green Deal begins. The government scheme is an innovative way to fund

energy effi ciency improvements in existing properties by attaching the upfront cost of the installation to the energy meter in a form of hire purchase/surcharge arrangement. Repayments are added to the bill and because of the ‘golden rule’, where repayments are less than the savings from the reduction in energy used, the bill payer should see no difference in the total bill, and may even see a reduction.

RICS supports the policy as, hopefully, it will improve the energy effi ciency of some of the oldest building stock in the EU. It also solves the landlord/tenant problem, where the landlord fi nances improvement measures but the tenant benefi ts from decreased bills, as the repayments are attached to the meter and, therefore, to the bill payer.

So how will this affect the surveying profession? When the scheme kicks into action in October 2012, the fi rst step will be to obtain a property report by an accredited Green Deal Advisor. Unlike the Energy Performance Certifi cate regime, this would be more like a building survey, and is essential in order to recommend the most appropriate measures. However, the costs of becoming an accredited advisor will probably start at around £1,500 for those who are already energy assessors – more for those who start from scratch – plus ongoing UKAS requirements.

Questions have been raised about the take-up of the Green Deal. Despite being heavily subsidised by energy companies, take-up of cavity wall and loft insulation is extremely low. A report by Affi nity Sutton showed that

even when the energy effi ciency was offered as a free upgrade to their tenants, the initial response rate was less than 5%, with 23% dropout before completion of works. There are also concerns about the small number of measures that will meet the golden rule without additional subsidies, and whether there will be suffi cient trained installers for the amount of work generated.

So, should surveyors start preparing for the Green Deal? My feeling is to proceed with caution, as I suspect that it will be a slow-burn start. In order to meet the carbon reductions the government has mandated in the Climate Change Act – a 34% reduction by 2020 and a whopping 80% reduction by 2050 – they may have to put a lot more carrots and sticks in place to encourage take-up.

Martin Russell-Croucher MRICS is Director of Sustainability and Special Projects at RICS.

10 r ics.org10 r ics.org

UKPYLON REVOLUTION

The T-Pylon has been named the winner of an international competition organised by RIBA, the Department for Energy and Climate Change and the National Grid to create the next generation of British electricity pylons. Copenhagen-based Bystrup, which designed the modest structure, says the T-Pylon will be two-thirds the height and weight of existing 50m, 30-tonne structures, and will now work with National Grid engineers to develop a production model.

TOP 10 US cities with the most Energy Star buildings

1. Los Angeles (510) (US$117.9m cost savings)2. Washington D.C. (301) (US$74.2m)3. San Francisco (248) (US$75.1m)4. Chicago (232) (US$62.7m)5. New York City (211) (US$86.6m)

6. Atlanta (201) (US$38.7m)7. Houston (175) (US$62.9m)8. Sacramento (168) (US$19.1m)9. Detroit (151) (US$18.7m)10. Dallas/ Fort Worth (148) (US$35.2m)

MODUS_Dec_P08-13_Intel. F1.indd 10 25/11/2011 10:03

Page 11: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

UKWEST END GROWTHA scheme to help boost a developing area of London’s Oxford Street has been submitted for planning permission. Designed by Allford Hall Monaghan Morris and developed by Derwent London in collaboration with Crossrail, the 25,000m sq scheme, 1 Oxford Street, would be built above the new Tottenham Court Road Crossrail and Tube station and feature two buildings with offi ce and retail space and a theatre. ‘This is an important step in the much-needed revitalisation of the eastern end of Oxford Street and the long-term growth of Fitzrovia and Soho,’ said John Burns, chief executive of Derwent London.

Books :REVIEWS

Advice on how to build a home that will save money and energy and minimise greenhouse gas emissions.18896 // £16.99

Order from ricsbooks.com

Drawing on a wide range of expertise, an insight on how companies can best position themselves for the growth in the clean-tech industry.19024 // £29.99

This third edition includes new chapters on topics such as the importance of sustainability in the built environment.18890 // £29.99

Answers key questions, including how to begin thinking and designing ecologically and the diff erence between ‘green design’ and ‘sustainable design’.18748 // £55

12.11 // 01.12 // MODUS 11

RIS

ING

FALL

ING

Spai

n H

ouse

pric

es a

re 1

5%

belo

w th

eir p

eak,

and

mon

thly

m

ortg

age

appr

oval

s at

60,

000

(RIC

S Gl

obal

Rea

l Est

ate

Wee

kly)

US

With

GD

P gr

owth

hig

her t

han

expe

cted

at 2

.5%

in Q

3, fe

ars

of

a re

cess

ion

rela

pse

have

eas

ed(R

ICS

Glob

al R

eal E

stat

e W

eekl

y)

5,000The number of UK construction

jobs the nuclear programme could create, according to energy

minister Charles Hendry

1.1%The percentage growth in the UK construction

sector during the second quarter of 2011 (Offi ce for National Statistics)

KuwaitGULF HUB

Kuwait’s international airport handles more than seven million passengers a year – and by 2020 this fi gure could triple, as the country becomes an increasingly important hub for the Gulf region. Architecture fi rm Foster + Partners has unveiled its design for a new terminal that will increase capacity to around 13m passengers a year upon completion in 2017, with plans for further expansion to accommodate up to 25m passengers a year. Spanning 1.2km, three symmetrical ‘wings’ will cover a 25m-high central atrium housing three levels. The project aims to become the world’s fi rst LEED Gold rated terminal.

MODUS_Dec_P08-13_Intel.indd 11 23/11/2011 13:22

Page 12: RICS Modus, Global edition — Dec–Jan 2011

08 r ics.org

NEWS BITES

FM starChris Stoddart of Cushman & Wakefield has won Facilities Manager of the Year at the British Institute of Facilities Management Awards 2011. Stoddart formerly worked for Arnage Projects and Cyril Sweett, and has been general manager of the 46-storey Heron Tower in London’s Bishopsgate since mid-2010.

Biomass islandA new biomass plant with the potential to power 300,000 homes will be built on the island of Anglesey in Wales. Up to 600 construction workers will build the plant on the Anglesey Aluminium Metals site near Holyhead, and around 100 staff will be employed once it is operational.

Sunshine exportGreece is hoping to export solar energy to German renewable energy companies as one way of kick-starting investment in its recession-hit economy. Plans are being made to develop around 200km sq of solar power parks especially for exporting renewable energy.

Green potentialJones Lang LaSalle has co-developed an assessment tool to help property managers view their properties’ investment potential for renewable energy technology. Called RESPRO, the tool will enable the firm to advise clients on the impacts of installing renewable energy systems on site. An initial assessment will take place across a mixed portfolio of 489 UK office, leisure, retail and industrial properties.

12 r ics.org

Opinion

THE VALUATION OF GREEN ENERGY IS A TRICKY BUSINESSCharles Cowap MRICS Harper Adams University College

Valuers all face the challenge of renewable energy generation. Energy and carbon continue to dominate the

news, and recent reports suggest the US$150 barrel of oil is not far away. Renewable energy has, previously, looked like a good investment, supported by government incentives, such as the Feed-in Tariff (FIT) with a guaranteed, index-linked payment. But are there hidden risks? In September, Proven Energy, a supplier of small and medium-sized wind turbines, went into administration after 21 years due to failures in one of its models. And in October, the government announced a halving of the FIT for solar photovoltaics commissioned after 12 December.

Despite the apparent novelty and certainty of the sector, there are also traditional risks to consider, including covenant risk (how reliable are the suppliers and maintenance contracts?); government stability (should we place complete faith in current support regimes?); and technological and environmental risk (what if the wind doesn’t blow or the sun doesn’t shine?). There is also potential

liability for obsolete equipment at the end of current leases or contracts to consider.

New RICS guidance concludes that the valuation of renewable energy installations is challenging. Each site is virtually unique and there is a paucity of market evidence. Particular attention must be paid to: detailed instructions; physical, financial and other data; meticulous recording and evaluation of information; careful selection, justification, application and adaptation of methods; clear analysis of data; and comprehensive reporting.

Valuations will have to be demonstrably soundly based and clearly explained, which will serve the best interests of clients, practitioners and others, providing them with the valuation advice they need while ensuring the challenging conditions in which this advice is provided are fully appreciated. Clients and valuers can then proceed with the appropriate level of confidence.

CHARLES COWAP is principal author of the RICS paper Valuation of renewable energy installations, which is due for publication in March. rics.org/rural

USSUNNY DELIGHTA solar power initiative for schools in California has been launched to help the state save more than US$1.5bn in energy costs over the next 30 years. The California Solar Schools programme helps education institutions take advantage of local solar subsidies to partly fund the installation of solar panels. Over the next year, around 90 solar arrays will be installed as part of the programme. One school, the San Ramon Valley Unified School District, is predicted to save up to $2m in energy costs.

88,000The number of electricity

pylons in the UK

Imag

e so

larc

entu

ry.c

o.uk

UKSOLAR BRIDGE

On completion of its redevelopment in 2012, Blackfriars will become the world’s largest solar bridge, London’s largest solar array and the first railway station to span the River Thames. More than 4,400 solar panels are being installed above the new station, currently under construction by Balfour Beatty, which should generate around half the station’s energy needs and reduce its annual carbon emissions by around 500 tonnes.

MODUS_Dec_P08-13_Intel.indd 12 23/11/2011 13:22

Page 13: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

www.anchormaninsurance.co.uk 01837 55777

In-house underwriting

Instant telephone quotations

Block run-off policies up to six years

Pre-completed proposal forms

Immediate cover

PROFESSIONAL

INSURANCEINDEMNITY

2 EXCLUSIVE

RICS COMPLIANT

SCHEMESNOT AVAILABLE

ANYWHERE ELSE

Best wishes for the festive season and a prosperous

New Year, from all the team at Pexhurst

www.pexhurst.co.uk

Pex_adFestive2011_135x190 2.indd 1 25/10/2011 10:27

10.11 // MODUS 13

MODUS_Dec_P08-13_Intel.indd 13 23/11/2011 13:22

Page 14: RICS Modus, Global edition — Dec–Jan 2011

THE UK’S RENEWABLES INDUSTRY HIT

A RECORD HIGH THIS YEAR, PROVIDING 10% OF ITS

ELECTRICITY. BY 2020 THAT FIGURE WILL

BE 35%

14 rics.org

SO WHAT ARE THE TECHNOLOGIES CHANGING THE FACE OF THE ENERGY SECTOR? JAMES MURRAY OF BUSINESSGREEN ASSESSES SEVEN POPULAR GREEN POWER GENERATORS

AND THE ROLE THEY ARE PLAYING IN NEW PROJECTS

PROVIDING PROVIDING PROVIDING PROVIDING PROVIDING PROVIDING PROVIDING PROVIDING

BE 35% Illustrations by Gaku Nakagawa

THE UK’S THE UK’S THE UK’S THE UK’S THE UK’S THE UK’S THE UK’S

MODUS_Dec_P14-21_Renewable energy.F1.indd 14 25/11/2011 09:43

Page 15: RICS Modus, Global edition — Dec–Jan 2011

Solar – you do realise we live in the UK?Yes, despite the weather, solar power is a viable source of green electricity, and is not reliant on bright sunshine or cloudless days. Of course, countries with warmer climates have greater potential, but the UK is currently experiencing a boom in solar installations, largely inspired by the government’s Feed-in Tariff (FIT) scheme. Unfortunately, though, the boom is unlikely to last, as the government has proposed deep cuts to the incentive scheme designed to ensure it does not exceed its budget.

How does solar work?There are two main types: photovoltaic (PV) panels, which convert sunlight directly into electricity, and solar thermal systems, which use the sun’s rays to heat liquid. Both are typically deployed on buildings, though the UK does have a few large ground-mounted arrays, notably Sunstroom Energy’s 5MW installation in Malmesbury, Wiltshire. But don’t expect many more – the government decided these large installations were sucking up too much of its FIT subsidy and slashed the support levels in August.

So what’s happening with the FIT now?After cutting the tariffs for large solar farms, the government has now proposed halving the support for smaller installations. Under the new proposals, which are being consulted on, households or businesses installing panels with less than 4kW of capacity will be paid 21p per kWh as opposed to the 43p per kWh previously on offer. The changes mean the returns will fall from around 8-12% to just 4.5%. The solar industry is furious at the scale and pace of the changes, and is predicting a contraction of demand and major job losses.

Sounds worrying?It is. At the beginning of November, solar companies were given just six weeks to

SOLAR POWERadopt the changes, and developers are concerned about the signal this will send to investors. However, the government maintains that urgent cuts are needed as a result of the scheme’s popularity, which had put it on track to exceed its budget two years ahead of schedule – a scenario that would have left energy bill payers having to cover the additional costs.

So is this the end of solar in the UK?The sector will take a major blow, but it’s not the end. Returns of 4.5% are still well above interest rates, so some households and businesses will continue to install the technology. The cost of panels is coming down all the time, too, with some experts predicting they will be cost competitive with the grid by the second half of the decade.

What about solar heating?There are around 150,000 solar heating installations in the UK. The Solar Trade Association reckons the average system costs around £4,000 and will provide 50-65% of a household’s water heating needs. Solar hot water systems up to 200kWth are eligible for 8.5p per kWh payments under the Renewable Heat Incentive.

VERDICT: You need a suitable location (preferably a south-facing roof), but solar PV can deliver good returns – even if the FIT cuts mean they are not as good as they once were.

ISABEL BOIRA-SEGARRA EC Harris

‘Even before I began my initial engineering degree, it was always with a view to eventually specialising in renewable energy. I fi nd the sector personally fulfi lling as there’s a real sense that what we do is making a contribution towards building a more sustainable world for future generations.

‘A normal day will include meeting clients to advise on how they can overcome some of the challenges they face, organising delivery teams, writing proposals and reviewing reports. I recently completed work on a due diligence review for a fund interested in investing in a UK solar PV developer, and am currently discussing a new proposition with a variety of clients who want to know how they can implement PV solutions into their existing real estate portfolio. EC Harris will bring together several partners to provide the consultancy skills, the hardware and the fi nance needed to ensure the project is commercially viable.’ Im

age

Corb

is

MODUS_Dec_P14-21_Renewable energy.F1.indd 15 25/11/2011 09:45

Page 16: RICS Modus, Global edition — Dec–Jan 2011

16 rics.org

Power generated from water, we presume?That pretty much covers it, though there are three different types. First, there is large-scale hydro such as the giant Hoover Dam in the US or China’s controversial dams on the Yangtze River. Then there is pumped hydro, which uses a dam between two reservoirs to store energy, generating electricity when operators require it, before pumping the water back to the top lake when there is less demand. Finally, there is small-scale or run-of-river hydro, which works like an old-fashioned water mill.

Does the UK have space for more dams?Not really. According to a recent government study, the majority of sites suitable for plants with a capacity of more than 5MW have already been exploited. However, there is plenty of potential for small-scale facilities, with estimates suggesting hundreds of prospective sites could provide over a gigawatt of capacity. The UK’s increasing reliance on volatile renewable energy sources means grid managers are calling for more energy storage capacity, and energy giant SSE is responding by pursuing plans for a new pumped hydro project in Scotland.

What are the advantages?People have been harnessing hydropower since the first water mills, making it a mature technology. This is reflected in relatively low costs, with large plants generating electricity for as little as £42 per MWh. Run-of-river systems are more costly at £67 to £215 per MWh, but they qualify for FIT incentives and can offer reliable and relatively cost-effective energy. Even the Queen is apparently convinced – a hydropower system was installed at Romney Weir on the River Thames near Windsor Castle earlier this year, providing enough power for 400 homes and a third of the castle’s needs.

There must be a downside?Hydropower is perfect in the right place, but there are relatively few suitable locations – and they tend to be in mountainous, rural locations, which can make securing planning permission and grid connections more difficult.

VERDICT: An e�ective renewable energy source, but only if you have access to the right location.

HYDROWPOWER

MODUS_Dec_P14-21_Renewable energy.F1.indd 16 25/11/2011 09:44

Page 17: RICS Modus, Global edition — Dec–Jan 2011

Biomass – that’s just burning wood, right?Not exactly. It can mean firing anything from purposely grown timber to agricultural residues, wood pellets, energy crops and even waste. It’s a very simple technology that provides steady supplies of electricity and heat on a domestic, commercial or industrial scale. In 2010, the UK’s 2.5GW of biomass capacity produced 11.9TWh of electricity – by far the largest contribution of any green energy source – as well as 12.4TWh of heat.

Where does the sector go from here?It’s booming. The government listed biomass among its eight key renewable technologies, forecasting that capacity can reach 6GW by 2020, producing 50TWh of heat and electricity. In the past year, planning permission has been granted to a giant 299MW plant in Anglesey, two more similarly sized plants in Yorkshire and a 350MW facility in Port Talbot.

But where will all the wood come from?That’s the question – critics doubt there is enough feedstock in the UK to support the boom. Biomass will have to be imported, which is great news for UK ports, but raises fears that we may inadvertently fuel more logging around the world. The EU has laid out strict criteria for ensuring biomass is ‘sustainable’ and signed anti-illegal logging deals with some of the world’s largest

timber exporters, which should prevent the clearance of rainforests and other biodiverse areas. But environmentalists remain concerned, particularly if co-firing leads to further increases in demand.

Co-firing – what’s that?Burning biomass alongside fossil fuels. The government estimates it could contribute another 4.2GW of capacity, and subsidies are coming into place in April to encourage investment. Drax, the UK’s largest coal-fired power plant, is also the biggest renewable energy producer, contributing around 6% of total output through its co-firing systems. RWE is also contemplating converting Tilbury power plant to biomass to dodge EU regulations that could force it to close in 2015.

What about smaller-scale applications?Biomass boilers are increasingly popular as they will generate payments under the Renewable Heat Incentive scheme. They are also a natural fit with businesses that generate a lot of organic waste. Waitrose, for example, is building a biomass-powered energy centre on the Isle of Wight that is earmarked to be the first of 150 to be rolled out across the country over the next decade.

VERDICT: A good source of reliable energy, but only if concerns about the sustainability of fuel are addressed.

BIOMASS POWER

MARK BEDFORD MRICS Wardell Armstrong LLP

‘I joined Wardell Armstrong in 1991, dealing with landfill and quarry developments. I went on to lead the waste resource management work and became involved with the Society for the Environment, which raised my awareness of energy matters. It’s a fascinating area to work in. We have power stations closing down, renewable energy and carbon reduction targets to meet, and a greater reliance on imports of gas and oil, which creates numerous opportunities.

‘My job is extremely varied. I might be meeting a client to look through renewable energy options one day, and giving a paper at a conference the next. One of the projects I lead is called Renewable Energy Supply Chain Opportunities, which delivers workshops and diagnostics for SMEs to get companies involved in the supply chain markets of low-carbon technologies.

‘Our remit covers bioenergy, which is a rapidly emerging and important area. Boosting the sector by bringing more woods back into management, incentivising energy crops and making better use of biomass and organic waste will be key to meeting the government’s renewable energy targets.

‘There are some great opportunities for everyone from farmers and landowners to small-scale manufacturers of wood-burning stoves and developers of large-scale anaerobic digestion plants.’

Renewable energy//

6GW The forecasted biomass capacity in the UK by 2020, generating 50TWh of heat and electricity

12.11 // 01.12 // MODUS 17

Imag

e Co

rbis

MODUS_Dec_P14-21_Renewable energy.F1.indd 17 25/11/2011 09:45

Page 18: RICS Modus, Global edition — Dec–Jan 2011

That sounds like a good alternative to throwing something away?It is. Experts reckon the UK generates so much waste that it could provide a fifth of its electricity, slashing greenhouse gas emissions and landfill in the process. How does it work? Crudely speaking, the technology turns food, sewage and other waste products into energy. There are four types of technology available: thermal combustion, anaerobic digestion (AD), gasification and pyrolysis. So is it the same as incineration?Some environmentalists fear EfW plants could result in air pollution, and as such are keen to characterise them as incinerators. But in most cases the technology is very different. Incinerators burn waste to produce an ash that can be disposed of in landfill; in contrast, an EfW plant’s primary purpose is to generate energy, and in most cases produces by-products that can be reused as aggregates or fertiliser. They also have to comply with strict pollution rules. Can the UK lead the market?We’re a small player compared to many other European member states. There were around 26 EfW plants operating in the UK in 2009, treating almost four million tonnes of municipal waste and solid recovered fuel.

ENERGY FROM WASTE (EfW)

NICK LEANEY MRICS AARDVARK EM Limited

‘I was working in commercial property in London when I was approached to join Aardvark to provide a coupling between their environmental expertise in energy, waste and water and the real estate sector. I had always had an interest in environmental issues, so it was a relatively easy decision.

‘Recent legislation on waste management and carbon, together with rising energy prices, has made clients more focused on renewable energy. A lot of their decision-making is financially driven rather than philanthropic, and often involves property ownership and tenancy matters, where my background is very useful. Energy security and rapidly increasing prices have placed the focus on localised power generation, so it’s an exciting sector to be in.

‘My work can range from undertaking initial site selection visits, business planning and feasibility studies through to preparing and submitting full planning applications or individual aspects such as preparing Environmental Statements in support of an application.

‘We advised a West Country cheesemaker to produce renewable energy from the waste from the cheesemaking process. The first stage was to obtain planning permission for an effluent treatment plant – the scheme was approved, and recognised as an exemplar project by the Environment Agency. We now have permission to build a 1.4MW AD plant to produce energy to run the whole process on site, effectively providing energy security for the client’s operations into the future and significant energy cost savings. Any surplus energy generated will be sold back to the grid.’

With the exception of AD, the government doesn’t appear to see EfW as contributing a great deal to the low-carbon economy, and is only expecting 260MW of capacity by 2020. However, there could be around 380MW of AD plants in place by then. So are businesses tapping into the market?There are a number of players vying for position. Advanced gasification firm Air Products is poised to build the 49MW Tees Valley Renewable Energy Facility in northeast England, and is in talks to build further plants. The North London Waste Authority is also looking to build a plant that can process 500,000-600,000 tonnes of the area’s waste that can’t be recycled.

Is it expensive? The fact that both electricity and heat can be generated makes it more economically viable than some sources. But there are major barriers to success, not least the need to find sufficient waste streams. Other barriers include long lead times for projects and the risk of planning refusals. Once the plant is up and running, EfW is remarkably cheap. AD, however, costs around £122 per MWh. VERDICT: There is potential to double generation from waste biomass by 2020 and almost treble it by 2030, but the UK is unlikely to catch up with Europe.

Renewable energy//

18 rics.org

MODUS_Dec_P14-21_Renewable energy.F1.indd 18 25/11/2011 09:47

Page 19: RICS Modus, Global edition — Dec–Jan 2011

WIND ENERGY

ROB TATE MRICS West Coast Energy Ltd

‘My key career move was a matter of chance: while I was working in the open-cast mining industry, I met West Coast founder Gerry Jewson, who asked me to join his team. West Coast Energy has already been involved in the planning and development of more than 600MW of capacity in the UK.

‘My skills in finding the best ways to add value to land and managing contentious planning projects were invaluable. The ‘easy’ land has already been developed, and onshore wind projects are not getting any easier. Securing planning approval increasingly involves non-technical skills in creating opportunities for communities to benefit from a development.

‘One of my first projects was the Cefn Croes Wind Farm in Wales, where we installed a 58.5MW wind farm in 2002. It’s interesting how quickly the turbines have become an integral part of the landscape. More recently, I celebrated the opening of a smaller development in North Cornwall, with just three turbines and a capacity of 2.4MW. I’ve now got 40 projects under my belt.’

Judging by the weather, you’d expect the UK to be pretty good at wind energy?You’d be right. The UK is the windiest country in Europe, and experts reckon onshore and offshore turbines could meet its electricity demand several times over. What happens when it’s not blowing?It’s rare that the wind isn’t blowing over an area as large as the UK. But even when output from wind turbines is low, grid operators can balance supply and demand to keep power available.

Will we see the UK covered in turbines?There will be more wind farms, but the countryside is not about to be carpeted. Government estimates show the UK could deploy up to 58.3GW of capacity by 2030, but

the bulk will come from offshore farms, with 32GW of capacity planned by 2020. Despite government support and polling showing that the majority of people like wind turbines, many projects face significant opposition – nearly half of onshore farms in England and Wales are refused planning permission.

How expensive is wind energy?As a rule it’s one of the cheaper forms of renewable energy, although offshore farms typically cost more than double their onshore counterparts. According to government estimates, a turbine with a capacity of less than 5MW costs £104 per MWh, while farms with a capacity of 5MW or more cost £90 per MWh. Offshore wind is still hugely expensive – the huge farms that are expected to be built in deep waters

and harsh conditions over the coming decades could cost as much as £200 per MWh. But plans are being made to halve the cost to a level similar to that of natural gas.

What about smaller turbines?Feed-in Tariff incentives mean small system wind turbines are becoming ever-more attractive. The trick is getting the right location with reliable wind speeds. The planning process currently affects every turbine, regardless of size, but the government is soon to introduce permitted development rights for small wind turbines, which should make it easier to install them. VERDICT: A mature, reliable, and fairly cost-e�ective source, but planning objections pose a major obstacle.

MODUS_Dec_P14-21_Renewable energy.F1.indd 19 25/11/2011 13:26

Page 20: RICS Modus, Global edition — Dec–Jan 2011

We’ve got plenty of coastline, you’d think we’d be pretty good at tidal energy?And you’d be right. Tidal energy, and more generally marine power, is one of the great unheralded success stories of British engineering. There are more than 30 projects either in the water or in planning, and the UK is regarded as a world leader in tidal and wave energy systems. Approval has been granted for a host of projects off the west coast of Scotland that could provide up to 1.6GW of capacity by the early 2020s. And we have two of the world’s top research centres in Cornwall’s Wave Hub and Orkney’s European Marine Energy Centre.

How has the UK established this lead?We’re blessed with some of the greatest tidal ranges in the world, and a heritage in marine engineering honed by the North Sea oil and gas industry. The proposed tidal barrage across the Severn River could have generated 5% of the UK’s electricity on its own, but to the frustration of climate change campaigners and delight of conservationists the government shelved the plan. It has, however, vowed to make marine energy a central part of the low-carbon energy mix, and plans to increase subsidies for projects.

How does the technology work? The sector is immature, and as a result a whole host of different technologies are being explored. Some fi rms are looking at tidal barrages that use the tidal fl ow to drive turbines, while companies such as Marine Current Turbines are deploying systems that look like underwater windmills to generate energy from strong currents. Others, such as Pelamis and Aquamarine Power, are looking at wave generators that use either fl oating buoys or devices fi xed to the seabed to harness the motion of the waves.

TIDAL ENERGY

NICK HARRINGTON MRICSSouth West Regional Development Agency

‘I was a development manager dealing with the mixed-use regeneration, business parks, science parks and tourism and retail projects when the RDA initiated the concept of Wave Hub, which provides shared off shore infrastructure to trial wave energy generation devices.

‘Although I didn’t have any experience of the renewable energy industry, there were many similarities with my previous work, such as gaining stakeholder and public support, construction procurement and fi nancing. I was involved in obtaining the original planning permission and the lease of seabed from The Crown Estate, and also the commercial aspects of the scheme.

‘Wave Hub is a long-term project – the lease is for 25 years for 8km sq of seabed. The fi rst devices should be attached in 2012, but it will be several years before the project is fully utilised. Wave power is currently too expensive to compete with other renewable energies, but with the help of Wave Hub the technology can be improved and refi ned. I handed over responsibility in 2010 but am still involved with the project, and in the future will act as a consultant to similar schemes worldwide.’

What are the pros and cons?Tidal energy is predictable – wave power relies on the wind, but is more reliable than onshore farms. But it’s an early stage technology, and as a result is very expensive. Government projections reckon tidal stream energy will cost £162 to £262 per MWh by 2020. We’re several years from seeing commercial-scale projects in the water.

VERDICT: The UK has a vibrant marine energy industry, but it’s a long way from delivering cost-e� ective electricity.

Imag

e Ge

tty

MODUS_Dec_P14-21_Renewable energy.F1.indd 20 25/11/2011 09:50

Page 21: RICS Modus, Global edition — Dec–Jan 2011

12.11 // 01.12 // MODUS 21

Geothermal – isn’t that only useful in countries like Iceland?It’s true that Iceland is a world leader, using geothermal and hydropower to meet all its energy needs. But the potential is greater than people think, with the US, Australia, Asia and the UK all capable of producing large quantities of geothermal energy.

How does it work?One of the main attractions is that the technology is relatively simple. In essence, you identify an area where ‘hot rocks’ heated by the Earth’s magma crust are close to the surface, drill two wells, then pump water down one to create steam that comes out the other. The steam is used to drive a turbine to create electricity and provide hot water.

Can geothermal really be used in the UK?The UK has one geothermal district heating network in Southampton, and plans are under way for projects near the Eden Project in Cornwall and at a proposed science park in Newcastle. According to the government, geothermal could potentially generate 35TWh of energy, or 10% of current annual electricity demand, by 2050.

Is there a catch?You’re restricted to areas where geothermal is feasible, plus the technology is pretty expensive. According to the government-commissioned Arup report earlier this year,

it currently costs a hefty £132 to £341 per MWh, although costs could fall as low as £63 MWh by 2030 as the industry scales up. The government offers subsidies through its Renewables Obligation mechanism, but most experts believe the level of support is insufficient to justify large investments.

So it’s not going to become a regular feature of surveyors’ work any time soon?No, but there is another form of geothermal that’s becoming popular – the energy stored in the Earth’s top soil can be accessed almost anywhere using ground source heat pumps. The government’s Renewable Heat Incentive means pumps are now cost competitive with conventional boilers and they are becoming increasingly common. For example, Sainsbury’s has indicated that ground source heat pumps will play a major role in its £1bn sustainability programme.

VERDICT: Geothermal has huge potential. Ground source heat pumps are fast entering the mainstream, but deep projects will remain relatively rare.

GEOTHERMAL ENERGY

10% of the UK’s annual electricity demand could be supplied by geothermal energy by 2050

Renewable energy//

MODUS_Dec_P14-21_Renewable energy.F1.indd 21 25/11/2011 09:48

Page 22: RICS Modus, Global edition — Dec–Jan 2011

22 r ics.org

1o minutes with…

Gardiner & Theobald, GlasgowGARY SLOANInterview by Cate Devine Photograph by Martin Hunter

Gary Sloan MRICS has been responsible for the day-to-day financial control of the £6m Inver Hydro Dam project on the remote Scottish island of Jura

MODUS_Dec_P22-23_Profile.indd 22 23/11/2011 12:10

Page 23: RICS Modus, Global edition — Dec–Jan 2011

12.11 // 01.12 // MODUS 23

Profile//

My decision to become a quantity surveyor came from a desire to be out of the office as much as possible, not stuck at a computer 12 hours a day. That desire has probably gone to the extreme now, as the Inver Hydro Dam project on Jura – one of Scotland’s largest standalone private hydro projects – is the most exposed and problematic site I’ve worked on. First, there’s the logistical challenge of a seven-hour trip from our office in Glasgow, which requires lots of forward planning as there are several elements in each journey, and four contractors need to be present for each site visit. Then, of course, there’s the weather. Working 2.5km up the Paps of Jura on the west side of the island, the first big thing that hits you is the weather. When it’s not wet, it’s windy – if not blowing a gale. It’s challenging to say the least.

I’ve been with Gardiner & Theobald for 30 years, having first worked there for two six-month periods while studying for my BSc in quantity surveying at Glasgow College of Technology. One of my first projects was working on the Broadgate development in the City of London during the late 1980s. I’ve also worked for a number of years on the Glasgow Harbour Project on the banks of the River Clyde. The Inver Hydro project is not our first venture into renewables,

but it’s our first time on hydropower. It’s a privately owned and operated 2MW dam storage hydroelectric generation station, which will raise the loch level by 3m to provide a new head of water to operate two 1MW turbines, which will work towards the purpose of making Jura – and its famous distillery – self-sufficient, and also to feed excess energy into the Scottish & Southern Energy Network.

While the mountainous terrain of the Inver estate is certainly an asset on a hydro project, it’s also provided a unique challenge for us. We needed two generators, 6km of cabling to take power to the grid connection, enough 1,200mm, diameter ductile iron and HDPE [high-density polyethylene] pipes to take water the 2.5km from the reservoir to the turbines, and to source expert welding to keep everything in place. As Jura is a designated National Scenic Area with many Sites of Special Scientific Interest, protection of the peat, flora and fauna was vital and painstaking, too. On the mainland this wouldn’t be as much of an issue, but in this peat you can easily end up sinking beneath the top surface. It’s very boggy and fragile. We quickly worked out that it was better to take the welding kit up to the top of the hill and work down, rather than the other way around, as the pipe gets longer and heavier each time another piece is welded on.

I’ve been responsible for the day- to-day financial control, preparing monthly valuations and cost reports for the client. We expect to complete on target and within budget in February or March 2012 – so my regular visits to Jura will be coming to an end soon. But we’re already pitching for our next hydro project…

‘The Inver Hydro Dam project on Jura is the most exposed and problematic site I’ve worked on’

MODUS_Dec_P22-23_Profile.indd 23 25/11/2011 10:14

Page 24: RICS Modus, Global edition — Dec–Jan 2011

T

c

T

c

T

c

DEAL OR NO DEAL?THE GREEN DEAL IS HERALDED AS THE SAVIOUR

OF THE UK’S INEFFICIENT HOUSING STOCK – BUT WILL IT PROVE TO BE A WHITE ELEPHANT?

FIVE RICS MEMBERS SHARE THEIR VIEWS

From late 2012, the Green Deal will offer consumers energy-efficiency home improvements at no upfront cost, with payments recouped

through a charge in installments on their energy bill. Key to the proposals is the ‘golden rule’ – that the expected financial savings must be equal to or greater than the cost of the retrofit – but homeowners will have the ultimate responsibility for reducing consumption after the measures have been installed. Green Deal providers will offer up to £10,000 to finance work undertaken by an accredited installer, based on the recommendations of an accredited adviser. Extra financial support for vulnerable households will be available through a new Energy Company Obligation (ECO).

Modus asked five RICS members involved in consultations on the Green Deal with the Department of Energy and Climate Change (DECC) for the insiders’ view.

Will the Green Deal work?Neil Hanney FRICS, principal lecturer and low-carbon consultant at Sheffield Hallam University: ‘I don’t think it will meet its objectives in producing the savings in carbon emissions it’s expected to. The public’s inertia is such that there needs to be a “stick” method to make homeowners improve the energy efficiency of their homes.’ Trevor Mole FRICS, managing director of multidisciplinary consultancy Property Tectonics: ‘For the Green Deal to work, it has to be a win-win situation for everyone, but at the moment it’s throwing up more questions than answers. Nobody’s ever done this before – it’s a huge task.’

‘In theory, the Green Deal proposes to tackle the financial barriers to energy-efficient retrofit in all rented non-domestic buildings. In practice, we see it as primarily directed at small and medium-sized owners and occupiers, since it is difficult to see how it could compete with the terms of finance open to larger properties. Other potential drawbacks arise from the fact that the financial matters the Green Deal is meant to tackle are not generally the

principal barriers to energy-efficient retrofit – there is the disruption that occurs when a property is improved, the problem of historic leases that pay little regard to sustainability, and the fact that landlords and tenants seldom exchange data on resource use.

‘The Green Deal needs to be seen as one of an array of measures rather than a silver bullet. For the majority of our members, minimum non-domestic building energy performance standards, intended to be introduced by 1 April 2018, could act as a more effective driver, since such provisions tap into helpful market drivers concerning fear of obsolescence. However, minimum standards need to be introduced with fair warning and clarity on the detail – something we have yet to see from government – and in a way that doesn’t place an undue burden on smaller owners and occupiers.’bpf.org.uk

Liz Peace Chief executive, British Property Federation

Opinion

‘IT WON’T BE A SILVER BULLET’

24 rics.org

T

c

Illustrations by Spencer Wilson

MODUS_Dec_P24-29_Green Deal+Law.V1.F1.indd 24 25/11/2011 10:00

Page 25: RICS Modus, Global edition — Dec–Jan 2011

T

c

T

c

T

c

Green Deal//

12.11 // 01.12 // MODUS 25

Inte

rvie

ws

Cher

ry M

asle

n

improvement in the energy effi ciency of the existing housing stock. Instead, it just might provide enough incentive for the residential sector to achieve this by a combination of means. My worry is that all the different strands of the Green Deal will not fi t together. In this case, the public won’t take part because the sums just don’t add up.’

What do you see as the biggest challenges or barriers to success?NH: ‘The timescale left. The Green Deal has been discussed for years, but the government appears unaware of the time it takes to do things properly. It’s assumed that the private sector will just solve the problems.’ >>

‘The UK Green Building Council has a bit of history with the Green Deal. In fact, we feel somewhat responsible! We ran a task group on “pay as you save” in 2009 and have been cheerleaders for this innovative fi nance mechanism ever since. The idea of pay as you save – that you fi x a standing charge to a property regardless of the owner, enabling savings on energy bills to fi nance low-energy refurbishment – is at the heart of the Green Deal, and there is agreement across the political spectrum that this is, basically, a good idea.

‘The devil, of course, is in the detail. Will the Green Deal be attractive enough to drive uptake? Will consumers be further incentivised through, for example, tax breaks? How will we ensure independence, impartiality and transparency of advice on fi nance, installation and products? Will the assessments be robust enough to give confi dence on the measures installed achieving the so-called golden rule? What will the interest rates be, and how will that aff ect the overall viability of the scheme? To what extent will expected energy price rises be included in the calculation of the golden rule? How will we ensure access to the Green Deal for SMEs? And how will ECO money [extra fi nancial support for vulnerable households] be allocated between the fuel poor and those living in hard-to-treat properties?

‘That is a long list of questions (there are more) but, despite these challenges, I am confi dent that if government works in partnership with industry, and is genuinely committed to making the Green Deal a success, we can answer these questions and create a step change in the energy effi ciency of our leaky housing stock.’ukgbc.org

John Alker Director of policy and communications, UK Green Building Council (UKGBC)

Opinion

‘THE DEVIL WILL BE IN THE DETAIL’

Paul Cutbill FRICS, head of professional development at Countrywide Surveying Services and chair of the RICS Residential Survey and Valuation Group: ‘There’s defi nitely opportunity for the initiative to work. Already consumers are more aware of energy effi ciency and the benefi ts of the Green Deal. It’s unlikely the government would introduce a scheme that hasn’t been proven in the market. Firms are already marketing Green Deal products and services – if I were a double-glazing or solar panel salesman I would be doing the same – so consumer demand is being created. This will need to continue on a wider scale to ensure the scheme gains maximum exposure.’Robert Corbyn MRICS, director of Low Carbon Energy Assessors: ‘From what I can see, they are in a pretty good position now with the Green Deal. The software needed to update an Energy Performance Certifi cate (EPC) to take into account the Green Deal will be available for training purposes in January, with an updated version issued in April 2012. In my view, in providing energy-effi ciency improvements without any upfront costs, the Green Deal delivers more to the customer than any other government top-down programme there has ever been.’Phil Parnham MRICS, director of training and development consultancy BlueBox Partners: ‘It seems to me the Green Deal adopts a “nudge” approach to public policy. By itself it won’t result in a comprehensive

T

c

MODUS_Dec_P24-29_Green Deal+Law.V1.F1.indd 25 25/11/2011 10:01

Page 26: RICS Modus, Global edition — Dec–Jan 2011

T

c

26 rics.org

TM: ‘I worry about everyone jumping on the bandwagon and offering services without the requisite knowledge, experience and professionalism, leading to poor outcomes.’RC: ‘How customers will get impartial advice from the GDAs. An advisor could work for a utility company or DIY retailer offering Green Deal home improvements, so they are bound to be influenced by what their organisation supplies. The provider may offer a free or low-cost survey, then once they’ve got their foot in the door will put on their sales hat, pushing the products and services they supply rather than the most suitable or cost-effective for the customer.’NH: ‘The lack of clarity over what level of advice we’re expecting the GDAs to give. Are we expecting them just to assess the

TM: ‘Convincing homeowners that they will be better off with the Green Deal. As with the Feed-in Tariff, they will have to see it as an obvious advantage.’PP: ‘There are still serious and significant question marks that need clarification. The enabling legislation is complex, and there is a lot of detail to sort out. One challenge is that all of the Green Deal Advisors (GDAs) will have to be trained and assessed. After what happened during the recession with Domestic Energy Assessors (DEAs) for EPCs, people will approach this with more caution. There were too many DEAs, which meant fees tumbled and some of those who’d trained had to give up. Many will be reluctant to spend more money qualifying for this new role.’RC: ‘GDAs and providers (installers) must all be audited, with thorough checks to ensure actions are taking place and followed up, so that customers obtain a professional service that complies with the Green Deal accreditation requirements. This is crucial if the Green Deal is to be effective.’PC: ‘The timing is not great to introduce a scheme like this because of the current economic climate. Even with the golden rule, which promises that consumers will save more on their bills than they pay for their energy-efficiency measures, people will be careful about spending money.’

What’s your main concern?PC: ‘It’s very important that consumers are well informed and have access to independent advice.’

‘The National Landlords Association (NLA) welcomes and supports the Green Deal. Energy efficiency is an important issue for landlords, but the problem has always been the “split incentive”, as landlords make the capital outlay for improvements and tenants reap the rewards of cheaper bills. The landlord doesn’t get anything, as more energy-efficient properties do not generate higher rents. The Green Deal addresses

Opinion

‘BOTH PARTIES WILL BENEFIT’

this issue: tenants will be warmer and have cheaper utility bills, meaning that hopefully they stay longer in the property, which is good for the landlord in rent generation and reduced void periods. Also, energy-efficient properties reduce problems such as mould, damp, condensation and frozen pipes.

‘The NLA has been working closely with the DECC, and actively promoting the Green Deal to landlord members. Of course, it’s not perfect. One of the problems landlords may face is getting consent from tenants to make improvements. Would the tenant have to move out while the work is done, and would this require compensation? These are issues that will have to be dealt with on a case-by-case basis. However, these problems will surely be overcome, and the NLA is confident the Green Deal will be a success, benefiting landlords, tenants and the environment.’landlords.org.uk

David Cox Policy officer, National Landlords Association

MODUS_Dec_P24-27_Green Deal+Law.V1.indd 26 23/11/2011 12:14

Page 27: RICS Modus, Global edition — Dec–Jan 2011

T

c

T

c

12.11 // 01.12 // MODUS 27

Green Deal//

‘The government may have set a carbon reduction target of 80% by 2050, but the truth is that it will only be achieved through supply and demand. The Green Deal aims to kick-start demand, but we have to give consumers the confi dence to invest, and suppliers the confi dence to develop the right products. Yet even now we lack evidence about which measures work best. As an industry we need to be much more open with our data and adopt a more connected approach. This is why the Building Research Establishment (BRE) has been working with others to gather and analyse retrofi t performance and usage data.

‘Take the gap between theoretical energy-saving calculations for retrofi t measures and actual savings obtained in the home. To date, the diff erence between the two has varied between 20% and 60%, due to factors such as installation or specifi cation error and human behaviour. A lack of data has helped create this gap, so to plug it we are sharing information with, among others, the National Refurbishment Centre, Technology Strategy Board and the DECC.

‘Also, if we accept that for certain dwellings it will be more than suffi cient, and cost-eff ective, to obtain a 40%-60% carbon reduction, fi nding the point of diminishing returns becomes important. So, with our partners in the National Refurbishment Centre, BRE is collecting hundreds of case studies to determine this point for the UK’s many diff erent house types.

‘BRE is also collecting behavioural data to help manufacturers develop heating controls that heat individual rooms rather than the whole house. Consumer confi dence is key to Green Deal’s success and that will be underpinned by good evidence.’bre.co.uk

level of loft insulation, for instance, or do we want them to know that you can’t insulate over a ceiling that has halogen lights without risking them overheating, or to check that lofts have enough ventilation? This is the sort of information and advice a building surveyor could deal with, but not necessarily someone from a different background. It’s crucial to clarify this to be able to train people to be GDAs – we can’t write a test of someone’s competence unless we know what the requirements are.’PP: ‘There are a lot of older, hard-to-heat solid wall properties that will be diffi cult to fi t into the Green Deal. The payback for insulating these is around 30 years. The public will only get involved if it makes fi nancial sense, and in many cases this type of improvement will require some form of subsidy to bring it within the golden rule. Where will the money for that come from?’

Is there enough incentive for homeowners to sign up?NH: ‘Not at all. But I think we now need sticks rather than carrots. Half of lofts have nowhere near enough insulation, for example, despite the campaigns and countless press articles telling homeowners how to top up insulation and how much they could save on heating bills. The problem is that people are reluctant to

spend time clearing lofts of all the stuff they have up there in order to get them properly insulated. What would work is increasing council tax if a home’s EPC is lower than a C – the average household is currently rated D. Of course that’s going to make any government unpopular, so we would need an all-party agreement.’RC: ‘A good incentive is that Citigroup estimates that energy costs could go up 50% by 2020. With no control over imported energy it’s vital we do everything possible to minimise our energy use.’PP: ‘Potentially, but to make the savings on fuel bills suggested by the Green Deal, homeowners will have to use their heating systems properly. If they don’t use their heating programmers, and turn their thermostats down, they’ll see no change in their bills. If they pay £50 a month on the Green Deal and don’t see a corresponding reduction in their electricity bill they’re not going to be happy, which will mean negative publicity for the initiative as a whole.’ >>

Oliver Novakovic Director of Building Futures, Building Research Establishment

Opinion

‘CONSUMER CONFIDENCE IS THE KEY’

MODUS_Dec_P24-27_Green Deal+Law.V1.indd 27 23/11/2011 12:15

Page 28: RICS Modus, Global edition — Dec–Jan 2011

T

c

28 rics.org

Green Deal//

PC: ‘The invest nothing now and pay later is a strong incentive, although some homeowners may need some persuasion before they adopt the initiative. Over the past few years, people have got used to the idea of moving house less often, making them more likely to look at the long-term benefits of energy-efficiency improvements.’

What will the Green Deal mean for RICS members? RC: ‘It should mean more work. Major retailers and utility providers may cream off a large portion of the market, but there is an opportunity for members to offer this service, and to provide impartial advice.’PP: ‘Surveyors need to enhance their skills and knowledge. Even if they are not directly involved in the Green Deal, clients will increasingly want advice on energy efficiency. For example, when organising renovations, surveyors should be able to advise clients on how to link with a Green Deal provider to help finance the project.’TM: ‘It should be good news for surveyors because it will bring in additional work around professional advice, EPCs, surveys, statutory compliance and project management. Householders will need EPCs before and after Green Deal improvements to monitor energy-efficiency performance.’ PC: ‘There’ll be more work for surveyors, but the fees may not be attractive enough to make the training worthwhile. Current fees for EPCs are lower than valuation surveys.’

‘If the government makes the right decisions over the next few months, social housing could be a great launchpad for the Green Deal. There are 1.2 million social homes that require significant work – some up to £17,000 – to reach acceptable standards, which presents opportunities for low-carbon retrofit. Also, the Green Deal in the social sector could counter the dire effect of rising energy prices on fuel poverty for residents who tend to be on very low

Opinion

‘IT WILL NEED ECO SUBSIDY’Martin Wheatley Independent policy adviser to the National Housing Federation

incomes. The scheme could also generate significant employment in the supply chain.

‘The government has recognised that the Green Deal won’t work on some properties without subsidy, because the build type makes them unusually costly or the occupiers are on very low incomes. The Energy Company Obligation (ECO) subsidy will be funded by a levy on bills, paid by rich and poor alike. Recent research for the National Housing Federation shows that most, if not all, Green Deal work in social housing will require subsidy. Therefore it is vital that rules about access give social landlords a fair way in.

‘The government has given mixed signals as to whether it grasps that cutting social landlords out of ECO would be socially unjust. Resolving this uncertainty will open the door to an enormous potential market with huge benefits to some of society’s most vulnerable people.’housing.org.uk

NH: ‘It will be worthwhile for members already trained as EPC assessors, so they can add this to the services they offer. But it should be remembered that some members who were trained as EPC assessors have never had occasion to use it. Therefore I wouldn’t advise anyone who’s not already involved in energy advice to start it as something new. We also have no indication yet of cost or duration of training. As a building surveyor or other experienced chartered surveyor already has all the knowledge they’re likely to need for this work, they may be reluctant to pay for more training and assessment.’ rics.org/greendeal

MODUS_Dec_P24-29_Green Deal+Law.V1.F1.indd 28 25/11/2011 10:01

Page 29: RICS Modus, Global edition — Dec–Jan 2011

T

c

Law advice//

New ways to

OFFER LEGAL SERVICESIllustration by Dale Edwin Murray

Part 5 of the Legal Services Act 2007, which came into force on 6 October 2011, enables alternative business structures (ABSs), which allow external ownership of legal businesses, as well as multidisciplinary practices that provide a range of legal and other services, such as surveying – essentially a ‘one-stop shop’.

ABSs will need to have a licence in order to operate, and will be regulated by licensing authorities designated and overseen by the Legal Services Board. The Solicitors Regulation Authority (SRA) is expected to be one of the fi rst licensing authorities to be designated by the end of the year. (ABSs that provide a range of services and involve members of other professions will also be subject to individual regulation by their own regulators.)

The introduction of ABSs will benefit consumers through increased competition, the development of new services and methods of delivery, and the integration of legal with other related services. For customers, this means that legal services are more accessible, more effi cient and more competitive; for existing law fi rms, it provides an opportunity to develop beyond the traditional image of

lawyers. Critics, however, are concerned about the commoditisation of the legal profession, dubbing the legislation ‘Tesco law’. Under the new rules, supermarkets and banks could offer routine legal services such as small claims, conveyancing, wills and probate, and personal

accident litigation in the same way they currently offer banking and insurance. (Tesco reportedly has no plans to offer consumer legal services, though The Co-operative was among the fi rst businesses to express an interest.)

At the smaller end of the market, the one-stop shop structure offers estate agents and property firms an opportunity to pool resources and provide customers with a seamless service and access to all professionals, including chartered surveyors.

APPLYING FOR ABSThe need to be authorised as an ABS depends on the activities the fi rm intends to conduct, and who will be managing and owning it. Any business wishing to provide services to the public that include reserved legal activities – which include reserved instrument activities (dealing

with the transfer of land or property under specifi c legal provisions) as well as probate activities, the administration of oaths and the conduct of litigation – must be authorised by an approved regulator such as the SRA. Firms with at least one lawyer manager that are intending to have non-lawyer managers or interest holders will also need to be authorised. Applicants must meet certain fundamental requirements defi ned by the SRA, which are set out in rule 6.2 of the Authorisation Rules. The fi rm must be capable of being authorised and must meet the SRA’s requirements in relation to:

Professional indemnity insurance Compensation arrangements Compliance offi cers, including necessary approvals Management and control, including necessary approvals Formation of the fi rm and qualifi cation to superviselegal staff.

Applications will need to be submitted online via a nominated proxy, and include information on the organisation, its business practices, personnel and indemnity insurance. The SRA will consider applications from all firm types, including partnerships, limited companies and limited liability partnerships, and aims to process them within six months, once officially designated. In the meantime, interested firms can complete an expression of interest form at sra.org.uk.

ANN MORGAN is the ABS manager at the Solicitors Regulation Authority. If you are interested in setting up or investing in an ABS, visit rics.org.uk/abs or, for more detailed information and guidelines, visit sra.org.uk.rics.org/abs

12.11 // 01.12 // MODUS 29

THE ONE-STOP SHOP STRUCTURE OFFERS ESTATE AGENTS AND PROPERTY FIRMS AN OPPORTUNITY TO POOL RESOURCES

MODUS_Dec_P24-27_Green Deal+Law.V1.indd 29 23/11/2011 12:15

Page 30: RICS Modus, Global edition — Dec–Jan 2011

MODUS_Dec_P30-33_Nuclear.indd 30 23/11/2011 12:18

Page 31: RICS Modus, Global edition — Dec–Jan 2011

Photography by Greg White

Nuclear power//

12.11 // 01.12 MODUS 31

THE MULTIBILLION-POUND NUCLEAR REVIVAL IS PRESENTING A HEALTHY PIPELINE OF WORK FOR

SURVEYORS, FINDS ROXANE McMEEKEN In the wake of the earthquake and tsunami that destroyed Japan’s Fukushima plant in March, a string of countries are turning their backs on nuclear power. Germany, for example, is to close all of its

17 plants, which produce 28% of its energy, while new build programmes have been scrapped in Switzerland and Italy. In the UK, it’s a different story. Despite a degree of pressure on the British civic nuclear industry, it continues to offer a huge range of opportunities, with some £40bn being spent on new build up to 2025 and at least £49bn on decommissioning under various long-term programmes.

Maja Zeremski MRICS, director of Davis Langdon’s nuclear and fossil fuel power generation division, says the UK has an almost unique need to develop new plants. ‘The UK’s carbon reduction commitments and the simple threat of the lights going out without new facilities being built mean the programme has to happen,’ she says. With 40% of Britain’s power stations due to close within the next decade, replacements are urgently needed.

Neither is prolonging the life of the existing fl eet a realistic option. ‘The cost of extending the lives of ageing power stations, including the in-depth safety studies required, actually outweighs the benefits of retaining them,’ explains Paul Stapleton, head of energy at EC Harris. This is partly because the decommissioning programme to safely close and clean up ageing plants is well under way.

Add to the mix the EU’s requirement for greenhouse gas emissions to be cut by 20% on 1990 levels by 2020, and it becomes clear that the new fleet of power stations must be low-carbon. Most importantly, a critical independent report for government by Mott MacDonald found that nuclear is the cheapest form of low-carbon energy for the UK to develop. ‘While you have whacking great capital costs up front, nuclear power stations have very long lives, low running costs and the fuel you extract is of very high density,’ says the report’s author, chief economist Guy Doyle.

While other countries abandoning nuclear could have a negative impact on the UK >>

MODUS_Dec_P30-33_Nuclear.indd 31 23/11/2011 12:18

Page 32: RICS Modus, Global edition — Dec–Jan 2011

32 rics.org

:NUCLEAR NEW BUILDTHE THIRD GENERATION

The new wave of nuclear reactors will be up and running by 2025, with the fi rst plant due to open in 2017/18. Eight UK sites have been earmarked for new power stations:

Bradwell, Essex Hartlepool, North East England Heysham, Lancashire Hinkley Point, Somerset Oldbury, Gloucestershire Sellafi eld, Cumbria Sizewell, Suff olk Wylfa, Anglesey

The developers EDF, which is 85% owned by the

French government, bought British Energy in January 2009. It plans to build four nuclear power plants, two at Hinkley Point and two at Sizewell, which together would generate 640,00MW. EDF is set to be the fi rst to open a new plant, Hinkley Point C, in 2017/18.

Horizon Nuclear Power, a joint venture between E.ON UK and RWE npower, plans to deliver around 6,000MW to the UK by 2025 from two reactors, in Wylfa and Oldbury.

NuGen is a consortium comprising Spain’s Iberdrola and France’s GDF Suez. The UK’s Scottish and Southern Energy owns 25%, but in September announced it would sell its stake and pull out of the consortium. NuGen is planning two plants in Sellafi eld, which would generate 3,600MW. Im

age M

agno

x

programme – ‘It sends a signal to investors that nuclear is risky, so they may put a higher premium on investing,’ explains Doyle – there is an upside, as developers in the UK will now have better access to technology. ‘Whereas vendors might have been inclined to focus on markets that were perceived as easier – the Middle East, say – now the British market is more important to them. So overall, other countries cooling on nuclear is positive for the UK.’

SAFETY FIRSTWhat about safety concerns following the Fukushima disaster? Stapleton points to the recent report from the UK’s chief nuclear inspector, Dr Mike Weightman, which assesses safety standards in both new build and decommissioning, and sets out the improvements needed. Stapleton believes the relatively small number of changes required is proof of the industry’s robustness. It was ‘very much a rubber stamp’, he says. The sector will be further strengthened through the 38 areas Weightman has identifi ed for review, which include the resilience of infrastructure away from nuclear sites, fl ood studies, emergency response procedures and spent fuel strategies. His call for each operator to produce a report on these areas, to be presented to the European Commission in June 2012, is also ‘very encouraging forsafety standards’, says Zeremski.

Stapleton says the UK’s decommissioning programme, said to be a world-leader, is further evidence of its commitment to safety. And, he adds, the fact that the work is overseen by the Nuclear Decommissioning Authority (NDA), a non-governmental public body set up in 2005, ensures that a controlled, uniform approach is being taken.

The Weightman report looks likely to create new roles for surveyors. ‘We are looking for increased safety consultancy work linked to the implementation of the report,’ says Stapleton. Indeed, part of the logic behind EC Harris’ recent decision to sell to

MODUS_Dec_P30-33_Nuclear.indd 32 23/11/2011 12:18

Page 33: RICS Modus, Global edition — Dec–Jan 2011

Nuclear power//

12.11 // 01.12 MODUS 33

The decommissioned Trawsfynydd power station in Wales (and previous page). Above left and over: Oldbury nuclear power station in Gloucestershire

COST MANAGEMENT, PROJECT MANAGEMENT AND PLANNING SKILLS WILL BE IN DEMAND

Netherlands-based Arcadis was down to the opportunity to work with nuclear safety consultant Vectra Group, which is part of the Dutch giant’s stable.

There is much more work besides. The £49bn decommissioning programme involves the dismantling, removal and management of equipment and plants from the fi rst generation of nuclear power stations dating back to the 1950s – a process that can take more than 100 years per facility. The programme covers at least 17 sites, including 11 obsolete Magnox facilities. All but two of these have already closed, with Oldbury and Wylfa due to shut down by 2014.

Although many contracts are advertised on the Offi cial Journal of the European Union (OJEU), fi rms almost certainly need to be on the public sector approved supplier list, the OGC Buying Solutions Framework. Use of the framework has been stipulated by the NDA, which owns all decommissioning sites but contracts out their management to site licence companies such as Magnox and Sellafi eld, which procure surveyors’ services. However, even if fi rms are not on the OGC framework, winning decommissioning work

may still be possible. ‘Lots of firms with nuclear experience are joining up with fi rms on the framework with less experience – this is going to become an increasingly popular route to winning work,’ explains Zeremski.

The £40bn new build programme offers just as many opportunities, with new reactors to be built at eight sites over the next 14 years by three owner-operators: EDF Energy, Horizon Nuclear Power and NuGen. Each project is huge, costing at least £6bn and taking eight to 12 years, including several in planning. Encouragingly, energy minister Charles Hendry said in October that he expects British firms to win 90% of the work. However, as the programme is in the hands of the private sector, procurement will take various forms. One thing that will facilitate winning contracts, Zeremski believes, is working in both new build and decommissioning, ‘because you understand how the whole cycle works. Cost management, project management, programme management and planning skills will be in huge demand,’ she says.

The new build sector is likely to need advice on procurement, too. Whereas such large projects are traditionally carried out under an EPC contract, where the main contractor takes all the risk, ‘The UK supply chain is highly sophisticated and unlikely to take all that risk,’ according to Zeremski. Instead, a range of procurement strategies are likely to be used, so ‘advising on procurement would be a good place for surveyors to pitch themselves’.

She adds that international opportunities in nuclear abound, too, despite some nations pulling out. She recommends looking at countries in Central and Eastern Europe such as the Czech Republic, Lithuania, Bulgaria, Romania and in particular Poland, which >>

IAN McKIE MRICS is commercial mediator at Franklin & Andrews

‘What do I like most about working in nuclear? In a word, diversity. We are based in Cumbria at Sellafi eld, a 6km sq site housing 1,000 nuclear facilities including redundant plant from early defence work, operating facilities associated with the Magnox reprocessing programme, the Thermal Oxide Reprocessing Plant, the Sellafi eld Mox plant and a range of waste treatment plants.

‘My role in pre- and post-contract administration involves a range of projects and services, from commercial operations through to facilities management and some decommissioning work. There is a diverse cross-section of workstreams in various stages of delivery. For example, over the past 12 months I have been involved with reviewing a colleague’s calculations to support the carbon footprint associated with the street lights on site in an eff ort to determine the environmental and commercial viability of replacing the existing bulbs, developing commercial procedures for the audit of contractors’ costs on reimbursable contracts, and preparing a report on project control procedures.

‘As part of the site management team, you become involved with all the major projects and some of the term and service provision contracts that are in place.’

MODUS_Dec_P30-33_Nuclear.indd 33 23/11/2011 12:18

Page 34: RICS Modus, Global edition — Dec–Jan 2011

This wasn’t in our plansOur friends laugh at us because we do everything together. We never thought losing our jobs would become part of this routine though.Having just found our new home, we thought we were finally on the way to finding a place where we could live the life we wanted.We’re committed to each other with everything we have, it’s just that in three months time that could be nothing at all.

Which is why LionHeart, the registered charity for RICS members and their families, offers a wide range of support and services to help those affected by and dealing with ill-health, disabilities, unemployment and bereavement. From legal advice and financial support to counselling and befriending, we endeavour, with the help of many volunteers, to help make everyday lives a little easier.There are several ways you can easily donate to LionHeart. Personal donations can be made directly via our website. Or if you prefer you can simply include a donation with your annual RICS subscription – a generous, yet affordable way to help us continue to help as many RICS members and their families as possible.

Registered Charity No. 261245Company Registered in England No. 980025

for more information on ways to donate and how we can help, visit lionheart.org.uk or call us today on 0845 6039057 Thank you.

for RICS members and their families

Nuclear power//

34 rics.org

has begun inviting tenders on OJEU and is ‘very serious about two sites’. Most of these countries will spend around £5bn on nuclear power in the coming years, while Zeremski believes Poland will spend around £10bn-15bn per plant. The Middle East also offers signifi cant opportunities.

FUELLING THE FUTUREWith Weightman paving the way for the UK’s new build programme, could anything else threaten it? Industry experts are confi dent that plans will not change signifi cantly. The House of Commons approved a National Policy Statement in July confi rming the eight sites earmarked for new build. The long-awaited Energy Market Reform White Paper the same month has also answered key questions on how the government will ensure producing nuclear power is viable for owner-operators. This will happen principally by guaranteeing the price of energy produced via low-carbon generators.

‘The Feed-in Tariff is the single element that power companies need in order to know they can develop nuclear power,’ explains Doyle. The next step is to put the paper’s ideas – including the price, which he says will need to be around £100 per MWh – into legislation, which is expected to happen over the next two years.

Admittedly, the Generic Design Assessment (GDA), the crucial assessment from the Offi ce for Nuclear Regulation (ONR) and the Environment Agency (EA), of the two proposed reactors, which was due over the summer, has been held up. But the GDA process was lengthened in order to take account of the Weightman report and, encouragingly, in October the ONR and EA announced they would publish interim approvals by the end of the year.

There are fears that Horizon, a joint venture between German-owned companies, could pull out of its UK programme, with anti-nuclear sentiment running high in Germany, but it has denied this will happen. Even if it did, Stapleton believes its proposed plants would ‘remain bankable’, since they are at an advanced stage – the final planning application for Horizon’s fi rst site at Oldbury is due to be submitted in 2013, meaning much of the planning hard work is already done.

‘The general feeling among both operators and the government is that nuclear new build is going to happen, one way or another,’ says Zeremski. And considering the scale of the market, it seems that nuclear is a sector worth committing to.

Read the fi nal Weightman report at hse.gov.uk/nuclear/fukushima/

SIMON CLARKE MRICS is managing director of Cardiff -based Indigo 360

‘When you fi rst walk on to a nuclear site, the facility is pretty imposing. But this is a great environment to work in – it’s one of the safest and most professional, as planning is meticulous and health and safety is paramount.

‘After four years’ working in asbestos and nuclear services, I launched Indigo 360 in 2008, in the teeth of the recession. Having worked in consultancy for most of my career, I decided to cross the boundary into contracting, focusing on construction in hazardous environments.

‘I had previously worked at Berkeley Nuclear Power Station near the Severn Crossing, doing maintenance and asbestos work, and for the past three years Indigo 360 has worked there on the decommissioning process. We’re now bidding for contracts at Sizewell B, Winfrith and Dounreay.

‘To bid for nuclear work we had to become a member of Achilles [a prequalifi cation scheme for nuclear and other sectors], which was quite diffi cult. You have to prove that you have a lot of specialist knowledge and experience of working in the nuclear sector, and health and safety is key.’

Imag

e Mag

nox

MODUS_Dec_P30-33_Nuclear.indd 34 23/11/2011 12:19

Page 35: RICS Modus, Global edition — Dec–Jan 2011

This wasn’t in our plansOur friends laugh at us because we do everything together. We never thought losing our jobs would become part of this routine though.Having just found our new home, we thought we were finally on the way to finding a place where we could live the life we wanted.We’re committed to each other with everything we have, it’s just that in three months time that could be nothing at all.

Which is why LionHeart, the registered charity for RICS members and their families, offers a wide range of support and services to help those affected by and dealing with ill-health, disabilities, unemployment and bereavement. From legal advice and financial support to counselling and befriending, we endeavour, with the help of many volunteers, to help make everyday lives a little easier.There are several ways you can easily donate to LionHeart. Personal donations can be made directly via our website. Or if you prefer you can simply include a donation with your annual RICS subscription – a generous, yet affordable way to help us continue to help as many RICS members and their families as possible.

Registered Charity No. 261245Company Registered in England No. 980025

for more information on ways to donate and how we can help, visit lionheart.org.uk or call us today on 0845 6039057 Thank you.

for RICS members and their families

MODUS_Dec_P30-33_Nuclear.indd 35 23/11/2011 12:19

Page 36: RICS Modus, Global edition — Dec–Jan 2011

IS THIS THEGREENESTPLACE ON EARTH?A SMALL GERMAN VILLAGE HAS BECOME A SHINING EXAMPLE OF COMMUNITY-LED SUSTAINABILITY, FINDS BRENDON HOOPER Photographs by Benjamin Gerull

Eco village //

Rotten potatoes, piled almost two metres high, have been dumped in a farmyard on a cold autumn day. Heaped beside them is a pile of old hay and a mound of compacted maize. They look like three small mountains of animal feed, but this organic matter is not to be eaten. It’s all about to be pulped and fed into two giant domes of biogas digesters, where the mixture will anaerobically ferment to release methane for fuel.

‘These days, the farmer here would rather describe himself as an “energy farmer”,’ says Günter Mögele, a local teacher and member of Wildpoldsried village council. Mögele is referring to farm owner Ignaz Einsiedler, who will use some of the methane to heat and power his farm, while the rest will be pumped downhill to heat the village of Wildpoldsried – which could be described as the greenest place on earth.

Deep in the rolling hillsides of southern Bavaria, close to Germany’s border with Austria, the citizens of Wildpoldsried have enacted a plan over the past 12 years to transform how they use, save and produce energy. The village generates around 320% more electricity than it needs from the production of renewable energy from wind, solar and biogas, reaching annual revenues of around €3.8m (£3.3m). This incredible surplus has been achieved through a

combination of grass-roots community investment and local entrepreneurship, incentives for renewable energy use, and a willing leadership ready to act upon the community’s desire for a more sustainable future. ‘Fourteen years ago we brainstormed a few ideas to make the village greener and more energy self-suffi cient,’ explains Arno Zengerle, mayor of Wildpoldsried. ‘Soon after, a somewhat chaotic but successful renewable energy plan just grew from the conviction of local pioneers.’

LOCALISM IN ACTIONWith the consensus of its small community – Wildpoldsried has a population of just 2,600 – the council realised that action could be swiftly taken to change its energy use for a more sustainable future. So in 1999, it produced a blueprint for how it should aid and encourage the community’s requests for renewable energy schemes. Called WIR-2020, the Wildpoldsried Innovativ Richtungsweisend (Wildpoldsried Innovative Leadership) had three main aims: to increase renewable energy sources and decrease the community’s energy use; to use as much locally sourced wood in the construction of buildings as possible; and to protect groundwater stores by the ecological disposal of waste water. ‘We wanted to >>

36 rics.org

MODUS_Dec_P36-39_Eco Village.indd 36 23/11/2011 13:04

Page 37: RICS Modus, Global edition — Dec–Jan 2011

12.11 // 01.12 MODUS 37

MODUS_Dec_P36-39_Eco Village.indd 37 23/11/2011 13:05

Page 38: RICS Modus, Global edition — Dec–Jan 2011

38 rics.org

Left: A local engineer checks a biogas burner plant in the

village, which provides 100% of heat requirements to the surrounding buildings and a

sports hall.

VILLAGE GREENµ Wildpoldsried produces 320% more energy than it needs, yielding €3.8m (£3.3m) in annual revenues // 5 wind turbines produce 12.5MWh per year // 190 households have solar PV, generating 3.6MWh per year // The village has achieved a 65% reduction in total carbon emissions

see how we could go about saving energy by using our own resources,’ says Zengerle. ‘One way was to use local wood as much as possible – there are many sustainable wood industries in the region that supply construction materials, with waste wood used as fuel for biomass burners. After securing a grant in 2000, we started to develop our wetlands into a natural waste water system. And while this was happening, the community began building the village’s fi rst wind turbines.’

In fact, it was biogas farmer Einsiedler’s brother, Wendelin, who helped to found the fi rst community group that would lead the way in realising renewable energy projects. In the same year the WIR-2020 plan was created, Wendelin Einsiedler – known locally as the ‘Wind Pope’ – and several of his neighbours established a wind energy company to build two 3.5MW turbines on the hilltop above the village, funded by a mixture of equity stakes, local bank loans and a small grant from the Bavarian state.

Two years after the success of the fi rst scheme, 94 investors from the village contributed a minimum of €5,000 (£4,300) each into a second wind energy company to build two more turbines, while a fi fth was installed in 2008 using a similar fundraising method. Current total capacity is up to 12MWh per year, and the projected revenue for 2012, after a third company is started and another two turbines built, is expected to be close to €2m (£1.7m).

It is this varied approach to renewable energy that has made the plan so successful. While the community wind energy groups were being formed, Ignaz Einsiedler applied for a second biogas digester on his farm. Today, three community-funded biogas companies operate four digesters that supply the community’s heating system and produce around 320,000kWh per year.

Down at the new village community centre, which doubles as the local bank and is in the process of being developed into an eco-hotel, warm air fl ows out of ventilators leading to the basement. ‘This warm air is excess heat from the community biofuel burner, and it’s enough to heat the whole building alone,’ says Mögele, who is also the deputy mayor. ‘There are no radiators in the building.’

The council installed its combined head and power (CHP) heating system in 2005 after securing an EU grant, with an intention to heat not just the community centre, but a whole network of buildings. Running on biogas and biomass wood pellets, which are made from sawdust from local mills, the burner will only be supplemented with oil at peak demand during extremely cold winters. ‘For six months of the year, the village only requires 25% of the heat generated by the burner,’ explains Mögele.

Two more biogas heat generators in the town, supplied by pipelines from the biogas farms, also boost the heating network. Over six years, the community heating system has grown to pipe heat to 42 local buildings, including the town hall, households, restaurants, commercial companies and a new school. And with better insulated, more heat-effi cient pipes, the council hopes to double this in the coming years.

POWER ONWildpoldsried’s renewable energy growth strategy means that when an opportunity arises to bolster its energy self-suffi ciency, the council will provide encouragement and, if necessary, fi nancial assistance. This has been the case with the village’s wide-scale adoption of solar photovoltaic systems – around a third of households have installed panels on their roofs, providing 3.6MWh per year in total. After Germany introduced its

EXCESS HEAT FROM THE COMMUNITY BIOFUEL BURNER IS ENOUGH TO HEAT THE WHOLE BUILDING ALONE – THERE ARE NO RADIATORS

MODUS_Dec_P36-39_Eco Village.indd 38 23/11/2011 13:05

Page 39: RICS Modus, Global edition — Dec–Jan 2011

12.11 // 01.12 MODUS 39

Eco village //

Erneuerbare Energien Gesetz (Renewable Energy Act) feed-in tariff in 2000, it became much more economically viable for householders and small businesses to install solar panels and be paid for producing electricity by the energy company.

So, helped with credit from the local bank and a local company established specifically to deal and supply solar panels, around 200 households are now producing their own electricity and feeding the surplus back into the grid. The mayor believes that, on the whole, the village has paid off its investment over the years, and for the next 10 years will be mostly earning a profit. These profits are then circulated back into the community, for example to buy new equipment for the school or fire department.

Householders’ energy needs are further reduced by a village-wide application of Passivhaus building principles. Earlier this year, the village council enacted a regulation for all new builds to incorporate energy efficiency measures – so developers must now ensure new homes are ultra-low energy, super-insulated and free from oil heaters. The council also offsets construction costs for all new zero-energy homes with a rebate of €15 (£13) per square metre, while paying half the costs of a thermal survey for retrofitting measures on existing properties. ‘We provide free energy advice, and pay half the €250 [£220] for thermal surveys,’ says Mayor Zengerle. ‘If the householder goes ahead with the energy-efficiency measures, the local bank will pay the other half.’

Since Germany announced a commitment to phase out its reliance on state nuclear energy in the aftermath of the Fukushima nuclear disaster, Mayor Zengerle’s office has been inundated with requests from groups wishing to tour the village and see its energy strategy working up close. Looking to replicate Wildpoldsried’s success, around 100 official groups a year have been coming from as far away as China, Russia, Japan and Brazil, which is why the community centre is being extended to cater for an influx of eco-tourists.

But while they are keen to attract more eco-tourists and renewable energy businesses to the village, they also feel they have only achieved half of their sustainable energy goals. Zengerle hopes that by 2020 the village will be totally free from using oil for heating, and will have a system in place that stores and automatically manages energy via a ‘smart grid’, for times when the regional grid becomes overloaded with renewable power.

The people of Wildpoldsried are a shining example of how small societies can achieve near complete energy sustainability by carrying out, as Zengerle says, ‘not a strict plan as such, just great ideas’.

A third of Wildpoldsried’s homes (previous page) have solar PV arrays. The village has five wind turbines (above) and four biogas digesters (above and bottom left) fed with organic matter (left) – but mayor Arno Zengerle (top right) says they are only halfway to achieving their energy goals

MODUS_Dec_P36-39_Eco Village.indd 39 23/11/2011 13:05

Page 40: RICS Modus, Global edition — Dec–Jan 2011

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

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

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

You need BAFE

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

It’s no good burying your head in the sand

BAFE.... Independent – National – Quality!

rics.org/awards

Call for entries now open!The RICS Awards celebrate excellence in the built environment and showcase the talent of property professionals behind the most ground breaking projects. Entries for the 2012 Awards are now open.

All finalists will enjoy unparalleled public recognition at one of the industry’s most prestigious annual events.

Entry categories include Building Conservation, Community Benefit, Design & Innovation and Regeneration.

Shortlisted entries are entered into the Grand Final with a chance to win the coveted Project of the Year 2012.

Entry to the Awards is free and open to all property professionals.

For more information and to download an entry pack, visit rics.org/callforentries or contact RICS Awards Administrators on 02476 868 400

Closing date: Friday 20 January 2012

40 rics.org

MODUS_Dec_p40-41_Bus_adv.indd 40 23/11/2011 13:07

Page 41: RICS Modus, Global edition — Dec–Jan 2011

New legislation to help

KEEP BUSINESS CASH FLOWING

Business advice//

Late payment is one of the most formidable challenges to the small business sector. Recent research by payment company Bacs shows that SMEs are owed an average of £39,000 each, up 10% on last year, the highest since records began in 2007. According to Bacs, half of all British SMEs are currently experiencing problems with late payment. The worst offenders are large companies, responsible for nearly half (48%) of late payment debt.

In contrast, government and not-for-profi t organisations are among the hastiest payers: just 9% of SMEs have experienced overdue payments from these organisations in the last quarter. This, at least, is good news, and evidence that the government is belatedly attempting to lead by example – which may, in part, be due to the 10-day payment pledge announced by the then business secretary Peter Mandelson in November 2008.

This year has put increased pressure on fi rms’ balance sheets, bringing a European sovereign debt crisis, volatility in the fi nancial markets and a general lack of confi dence

in the UK’s economic recovery – all of which has made fi nance even more difficult for small fi rms with tight balance sheets. This, coupled with the scaling down of HMRC’s Time to Pay tax deferral scheme, means businesses that are experiencing temporary problems in their cash fl ow no longer have a safe

haven to turn to, putting both their company and their suppliers under greater pressure.

Our advice to all businesses, regardless of size, is to ensure you are fully aware of late payment law and that you have a robust credit control procedure in place.

On a brighter note, small fi rms will be heartened to hear that the law relating to late payment is changing. The coalition government announced in September that it will fast-track adoption of the EU late payment directive – so that it can become UK law in 2012, ahead of the 2013 deadline. The new EU regulations set 30 days as standard terms for public and private sector organisations to pay invoices. The main points in the directive include public authorities having to pay suppliers within 30 days of being invoiced. The directive further introduces a cap on the maximum contractual payment period at 60 days, unless other terms are agreed. Firms will also be automatically entitled to claim interest on late payment, and can claim around £35 for recovery costs. The statutory interest rate will rise to at least 7%, bringing it in line with the current

UK standard. In most cases, payment terms beyond 60 days will be termed “grossly unfair” and hence unlawful.

While all this certainly sounds tough and robust, the proof, as always, will be in the pudding. In the past, legislation regarding late payment has been little used. Nevertheless, at the very least, the new limits that the directive introduces will strengthen businesses’ hands when negotiating unfair payment terms.

PROMPT PAYMENTIn terms of credit control, there are a number of actions a fi rm can take to ensure cash fl ow is kept positive. We advise our clients to request that their customers pay by standing order or direct debit, rather than cheque, so you have a nailed-down payment date that can’t be pushed back. Check immediately with your customer that they have received your invoice and ask when you can expect payment. This lets them know you are on the case and are alert to any potential problems. It is critical that they are aware that you are prepared to chase payment hard. That way, they are more likely to pay your invoice before those of other suppliers who are not chasing. It is even worth considering asking for immediate payment on receipt of invoice – after all, if you buy goods at a supermarket, you pay for them there and then, not 30 days later.

Business owners should not automatically assume they must offer payment terms. When cash fl ow is king, it is much more desirable to get the cash quickly, or at the very least on standing order. The other benefi t of standing orders or direct debits is that you don’t waste precious time chasing money – a process that can be onerous and distracting. Especially when that time should be spent winning business and servicing existing customers.

PHILIP GRIFFITHS is a partner at North West-based accountancy fi rm Mitchell Charlesworth, which specialises in advising small business and entrepreneurs. mitchellcharlesworth.co.uk

FIRMS WILL BE ENTITLED TO CLAIM INTEREST ON LATE PAYMENT, AND CAN CLAIM AROUND £35 FOR RECOVERY COSTS

12.11 // 01.12 // MODUS 41

Illustration by Dale Edwin Murray

MODUS_Dec_p40-41_Bus_adv.indd 41 25/11/2011 10:16

Page 42: RICS Modus, Global edition — Dec–Jan 2011

42 r ics.org

Choose the bestin the business

Best in the business

Choose the best in the business

Over 25,000 electrical contractors in the UK are NICEIC registered and annually assessed. It’s the most widely recognised accreditation and demonstrates a commitment to safety and professionalism.

0843 290 3430To find out more click or call

As an NICEIC electrician, you can trust me and my work.

www.niceic.com

Go further with a Masters from the UK’s premier School of the Built EnvironmentFull-time, part-time and distance learning study options available. All assessment is by coursework.

Construction related Programmes:

MSc Quantity Surveying* – For aspiring new entrants

MSc Quantity Surveying (M&E)*

MSc Construction Management*

MSc Project Management in Construction*

MSc Construction Law and Practice* (LLM also available)

Property related Programmes:

MSc Corporate Real Estate and Facilities Management – Think strategically about property investment and building performance

MSc Real Estate Development* – Learn sustainable development appraisal techniques

MSc Real Estate and Property Management* – For aspiring, new, property industry entrants

Design related programmes:

MSc Sustainable Building Design – Explore environmental sustainability and performance in relation to buildings, including the role of digital technologies

MSc Urban Design and Regeneration – Combinesexploration of Urban Design processes and community based Regeneration practice

MSc Digital Architectural Design – Learn to apply state ofthe art, Digital and Media technologies to design

MSc Accessibility and Inclusive Design – How to improvelife for all building users

MSc Building Information Modelling and Integrated Design – Explore the full potential of BIM technologies

APPLY NOW for September or January start. PgCert and PgDip options available. We welcome applications from students without formal qualifications but significant relevant experience.* Professionally accredited

For more information contact: Brian Meichen, Director of Marketing, School of the Built Environment,[email protected] or see www.sobe.salford.ac.uk

MODUS_Dec_P43-53_Info.indd 42 23/11/2011 12:22

Page 43: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

INFORMATIONUSEFUL NUMBERSCONTACT CENTRE+44 (0)870 333 1600

General enquiriesAPC guidanceSubscriptionsPasswordsLibraryBookshop

REGULATION HELPLINE+44 (0)20 7695 1670

CONFIDENTIAL HELPLINE+44 (0)20 7334 3867

DISPUTE RESOLUTION SERVICES+44 (0)20 7334 3806

SWITCHBOARD+44 (0)20 7222 7000

:RICS NEWS :DIARY :BENEFITS :RESOURCES

RICS, in collaboration with Know Edge, has published a research paper exploring a solution to the security of land tenure. It challenges land professionals to radically rethink how land administration services are managed and delivered through crowdsourcing. Crowdsourcing provides an opportunity for land professionals to forge a new relationship with the public to jointly solve the global challenge of security of tenure in a way that is much more inclusive for the disadvantaged and vulnerable.rics.org/land

CROWDSOURCINGINVESTOR APPETITE FOR DISTRESSED ASSETS MAY BE COOLING A LITTLE IN THE FACE OF CONTINUING UNCERTAINTY

Simon Rubinsohn, RICS Chief Economist, on the RICS Global Distressed Property Monitor Q3 2011

12.11 // 01.12 // MODUS 43

MODUS_Dec_P43-53_Info.indd 43 23/11/2011 12:22

Page 44: RICS Modus, Global edition — Dec–Jan 2011

08 r ics.org

RICS news//

44 r ics.org

RICS commissioned the third Global Zero Carbon Capacity Index (ZC2 Index) to measure the progress towards a zero-carbon built environment in a sample of countries. Using data from the International Energy Agency and World Bank, the index takes into account

energy consumption, the share of renewables in the energy supply and the number of policies in place targeted at reducing carbon emissions. Norway has topped the index each time, with Brazil and the UK ranking second and third respectively in the past two years,

followed in 2010 by Australia and China. Russia, Luxembourg and Canada remain in the lowest positions. Finland, Sweden, France, the Slovak Republic, the US and Belgium have shown notable improvement over three years.rics.org/zc2

Towards zero carbon

The battle against climate change and resource depletion will be lost or won in the world’s cities. Cities present huge environmental challenges, but also offer huge opportunities because they create economies of scale in technology deployment and access to capital, both of which are vital if we are to make the existing built environment of our cities sustainable and resource-efficient by 2050.

The top 20 cities in the UK, for example, are responsible for more than 20% of national carbon emissions and 20% of energy consumption, so local action is vital if we are to meet the national target of an 80% reduction on 1990 levels by 2050. Research also shows that more densely populated cities are more carbon and energy efficient, in per capita terms, than less densely populated cities. Increased wealth is also associated with more emissions, and cities that create more waste also tend to produce more carbon emissions.

However, driven by a need to reduce energy costs and deliver green jobs/economic growth, and the increasing issue of fuel poverty, UK cities are beginning to put low-carbon plans into action. Having these in place can make a significant difference to the overall reduction in emissions over time. Worldwide, the cities that are succeeding with their low-carbon plans are those that set ambitious targets within an integrated low-carbon and climate change framework, have innovative financing in place and use partnerships creatively.Professor Tim Dixon, director of the Oxford Institute for Sustainable Development, Oxford Brookes University

Tim Dixon’s analysis of the low carbon transition plans of UK cities will be published by RICS in March at rics.org/research.

RICS has warned consumers to be vigilant when opting to let their roof space for green energy schemes. Many UK companies have been looking to benefit from the government’s Feed-in Tariff scheme by renting roof space from homeowners to host solar panels. Under the scheme, the leasing company can then sell the generated energy to power suppliers for a profit. However, with many leases running for up to 25 years, often without a break clause, homeowners can find themselves tied to agreements that could put them in breach of their mortgage arrangement, discourage prospective buyers and even create structural problems in their property. Furthermore, until next year, installers will not be formally accredited in line with the Green Deal, meaning that installations can be carried out by individuals poorly qualified to properly assess the potential impact. ‘While we wholeheartedly support the use and production of green energy, it is important that consumers are aware of the potential dangers, consult their mortgage provider and seek legal advice,’ said RICS Director David Dalby.

SOLAR ROOF SPACE

LOW-CARBON CITIES

Opinion

MODUS_Dec_P44_Info_F1.indd 42 28/11/2011 12:47

Page 45: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

ver the past decade, those of us working in or connected with the property profession have enjoyed the high times

and the low in equal measure. Today, however, we are operating in a world of economic turbulence. In the UK, some families are suffering a marked drop in living standards, and unemployment is the highest it has been for many years – not since the mid-1970s has there been a worse three-year fall in real incomes.

It is, perhaps, during times of uncertainty that the value of RICS membership takes on a whole new meaning beyond that of chartered professional status. I have often heard surveying described as a ‘people profession’ that opens up opportunities to contribute beyond our day jobs. This is certainly something I have observed during my career, and is undoubtedly the quality that offers comfort to members.

Hard times could befall any of us, but being part of a community such as RICS can provide the strength, support and encouragement needed to overcome personal and professional adversities. As I spend time with groups of members worldwide, I am struck by the sense of camaraderie and affiliation that is not

bound by geographical borders, but instead enhanced by shared values and the best interests of fellow professionals.

LionHeart, the benevolent fund founded in 1899 and run by RICS members as an independent charity, is a symbol of the community spirit that continues to pervade RICS today. Since its inception, the charity has helped thousands of RICS members and their families worldwide, offering welfare advice, counselling, befriending and financial assistance.

It is perhaps no surprise, given the current economic climate, that an increasing number of those supported through the charity’s efforts are facing difficulties due to unemployment. However, LionHeart does much more than hand out cash. It provides expert and dedicated advice to help members and their dependants to help themselves, for example by offering guidance on state support programmes, recruitment and healthcare advice. Already this year the charity has set up schemes dedicated to supporting retired members through the Retirement Fellowship, and helping people back into employment through the Back to Work Scheme.

As an independent organisation, LionHeart receives no statutory funding, and relies purely on the goodwill and generosity of RICS members worldwide to carry out its work. I am a longstanding supporter, and am enormously grateful for everything LionHeart does. I urge as many members as possible to show their support by making a donation when you pay your RICS subscription – after all, we can never be sure that we or those closest to us won’t need the service too one day.

‘RICS members worldwide have a responsibility to support each other during times of difficulty’See Lian Ong FRICS RICS President

PRESIDENT’S COLUMN

O

12.11 // 01.12 // MODUS 45

3/4respondents expect rising levels of distressed assets in the next quarter*

19Number of countries (of 25 surveyed) that reported a rise in investor interest – but the pace of demand fell in nearly half of these*

+29Investor demand picked up dramatically in Malaysia, compared to -13 in Q2*

-3Reversing the trend seen in the last quarter, levels of demand by specialist funds in Russia fell into negative territory*

15More countries expect supply to rise beyond increasing demand from investors in the coming quarter, up from 11 in Q2*

+41France has seen a considerable uptick in the pace of expected foreclosure this quarter, up from +22 in Q2*

Distressed property is under a foreclosure order or being sold by its mortgagee, and usually sells below market value. *Highlights from the Global Distressed Property Monitor Q3 2011. rics.org/economics

MODUS_Dec_P43-53_Info.indd 45 23/11/2011 12:22

Page 46: RICS Modus, Global edition — Dec–Jan 2011

RICS news//

46 r ics.org

PII under the microscope

VALUATION AS A SERVICE IS ONLY VIABLE IF VALUERS ARE ABLE TO OBTAIN PROFESSIONAL INDEMNITY INSURANCE (PII) AT A COMMERCIALLY ACCEPTABLE

COST. RICS’ RECOMMENDATIONS ARE NOW OPEN TO CONSULTATION

The current quantity and real cost of handling alleged negligence claims in the market is sufficiently large that it is having a significant impact on the cost of PII, not just for firms who have received claims but for the market as a whole. There is a growing view that the current position is unsustainable, with a dysfunctional relationship between current valuation fees and current PII costs, which are designed to cover potential unproven past negligence. There is a second dysfunctional relationship based on client requirements over levels and assignment of liability, and the liabilities of valuers and their firms. If no action is taken, valuation for secured lending could potentially become an uninsurable activity – effectively reducing the provision of this service to a limited few, or making this an area of expertise unsupported by insurance. This would lead to a reduction in public protection and an increase in individual risk to professionals.

RICS set up a working group last year to undertake a review of the impact on the property sector due to concerns that have arisen in the UK valuation sector about current risk and pricing in the market, and that these issues may have a long-term structural impact on that sector once the current crisis is over.

MODUS_Dec_P43-53_Info.indd 46 23/11/2011 12:23

Page 47: RICS Modus, Global edition — Dec–Jan 2011

12.11 // 01.12 // MODUS 47

Illus

trat

ion

Adria

n Jo

hnso

n

LEGAL ADVICE RICS has teamed up with legal advisers Field Fisher Waterhouse to provide guidance notes for UK members relating to professional indemnity insurance.

Confetti lettersRICS members are experiencing an increase in receipt of what are often referred to as ‘confetti letters’ – typically vague, unsubstantiated and un-particularised letters sent by lenders, lenders’ lawyers and other agencies to surveyors. They refer to negligent valuations allegedly committed in the past and threaten the issuance of legal proceedings if a settlement sum is not paid by the surveyor by a certain date. The note sets out some principles and guidance that members may wish to take into account on receipt of such letters. Terms and conditionsRICS members are often asked to agree to standard terms and conditions when they are engaged to provide valuation services on behalf of lenders. This note identifies some of the issues to consider in connection with provisions that may appear in lenders’ standard terms and conditions, or that members may wish to include in their contracts. The key issue is to seek to ensure that terms of engagement are clear and specific and that all parties understand the implications of the terms before entering into the relationship. Download the guidance in full at rics.org/regulation.

The group has published a report summarising the implications of the issues surrounding valuations for secured lending purposes in the UK for all stakeholders and setting out recommendations for further work:

RICS should conduct further research and consultation with members and key stakeholders, including insurers, to explore what alternatives, if any, there are to a claims made approach to insurance, and the potential impact of these alternatives on the market, for valuers and for public protection.

To fully understand and engage with potential areas of market failure, RICS should make use of forum(s) for regular dialogue with lenders and other stakeholders.

RICS must ensure that the implications of market practice are fully understood and accepted by other stakeholders including government, financial and professional regulators and consumers – possibly through representatives. We should initiate a comprehensive stakeholder engagement strategy.

RICS should investigate with the Solicitors Regulation Authority the ethics of certain legal practices in claims.

RICS should explore the option of Alternative Dispute Resolution for dealing with valuation claims up to a certain level with all interested parties, by means of further research and a stakeholder consultation exercise.

RICS provides guidance to its regulated firms and members so that they can review current contract terms with insurers and clients in an environment where all parties understand the levels of risk and reward inherent in the current model.

RICS should consult regulators and government agencies with an interest in competition issues to ascertain whether current market practice involves an imbalance that may, in the long term, affect the public interest through a reduction of competition in an already limited market.

Further research is required into the full implications of valuers’ liability to third parties in the event that lenders sell on or securitise their loans.

RICS should provide its members with some non-prescriptive guidance on how to approach quality assurance in the area of valuations.

RICS should discuss and agree with lenders different ways in which valuation quality assurance can be enhanced; for example, valuations over agreed value thresholds or high-risk categories being subject to a review by a second firm. RICS should also monitor the approach currently being investigated in Australia to determine whether there are any lessons to be learned that could be applicable in the UK.

RICS should highlight the information provided to members in the new edition of the RICS Valuation Standards (the Red Book) and look into providing additional advice and guidance on uncertainty in valuations to valuers and to clients of valuation services.

RICS should conduct further research into the evidence base for the use of the bracket in negligence cases and whether this is providing an outcome that adequately protects both firms and clients.

Many issues raised in the report require further research and consultation with stakeholders including members, lenders, insurers and clients in order to develop a position that will provide the desired policy outcome of both client and professional protection, and lender confidence. The consultation is now open and closes on 28 February.

Read the report in full and join in the discussion at rics.org/pii.

1

2

5

6

9

10

11

12

7

83

4

MODUS_Dec_P43-53_Info.indd 47 23/11/2011 12:23

Page 48: RICS Modus, Global edition — Dec–Jan 2011

08 r ics.org48 r ics.org

Advertorial//

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

Benefitsrics.org/benefitsplus

Environmental protection is a serious and complicated worldwide issue. It is becoming more prevalent in the way businesses operate, and many hotels and resorts are now adopting the ‘eco-tourism’ label to aid their economic success, as well as to help improve the quality of life in their local community.

Tropical break Considered one of the most biodiverse regions in the world, Costa Rica is divided into 20 natural parks, eight biological reserves and a series of protected areas that captivate eco-tourism lovers. There is a wide variety of eco-friendly hotels and villas, and the country is becoming a hot spot for local sustainability. However, it’s not easy to be part of this evolving trend,

as businesses must meet the stringent standards of Costa Rica’s highly praised Certification of Sustainable Tourism programme. Criteria include adopting conservation and natural risk reduction measures, handling waste efficiently, having a water and electrical energy conservation programme, and using natural, biodegradable and recyclable products.

WEXAS Travel partner Lapa Rios Eco Lodge is an award-winning eco-village on the Osa Peninsula, recognised by Condé Nast Traveller and Travel & Leisure magazines as one of the world’s best hotels and the top hotel in Central America. Set in a private nature reserve of more than 1,000 acres of Central America’s last remaining lowland tropical rainforest, and overlooking the pristine point

where the Golfo Dulce meets the wild Pacific Ocean, the lodge matches everyone’s idea of paradise. It’s remarkable that such luxury can be a private nature preserve, a reforestation project and a model of eco-tourism and sustainable development.

Special serviceToday’s tourists are seeking more interactivity with the socio-cultural and ecological interests of the local communities. WEXAS Travel offers its members tailor-made itineraries to fulfil eco-tourism experiences worldwide. From the Indian Ocean to Australia, the WEXAS Travel specialists shape the journey around the individual needs of each and every traveller.

WEXAS Travel offers its members an exclusive 11-day luxury Costa Rica itinerary, including the Lapa Rios Eco Lodge. Prices range from £3,195 to £3,995pp, and include international and domestic flights, transfers and excursions with English-speaking guides, and 10 nights’ accommodation (board varies). For more details, call a WEXAS Costa Rica specialist on 020 7838 5966.

RICS Benefits Plus members receive free WEXAS White membership, which includes a host of benefits at no extra cost. Whatever your travel plans, the WEXAS Travel specialists are eager to help you plan and arrange your tailor-made itinerary. To register for your WEXAS White membership at no cost, call 020 7838 5820 or visit wexas.com/rics.

An eco-friendly excursion

MODUS_Dec_P43-53_Info.indd 48 25/11/2011 10:19

Page 49: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 0912.11 // 01.12 // MODUS 49

MembershipThe dilemma: CONFLICT OF INTEREST My firm has a potential conflict of interest but I cannot disclose the specific details of this to all parties without breaking client confidentiality. What do I do?The best way to deal with potential conflicts is openness: you must declare any concerns to all parties, being as clear as you possibly can. Where client confidentiality is a concern, you can still discuss your worries, giving the other side(s) enough information to make a decision about whether they are content for your firm to take the instruction. If you can’t disclose enough information for all parties to make an informed decision, then you must refuse the instruction.

You should consider whether there are ways to manage a possible conflict: can you separate out work that may conflict and just take on neutral work? If you are part of a larger firm, can you create a Chinese wall between those surveyors and staff acting for different clients? Once you have agreed how

a potential conflict will be managed, confirm this with the client(s) in writing. The golden rule for conflicts of interest is to act with integrity. Ask yourself whether you would like to be treated this way if you were the client.

Do referral fees and commissions represent a conflict of interest?Transparency and openness remain the key. For example, if you pay an estate agent a referral fee for recommendations for building surveys, you should make sure the client knows. It goes without saying that any advice you give to your client should be utterly professional and free from any motivation of getting additional referrals. Are you providing a professional service for a professional fee?Eve Salomon, Chair of the RICS Regulatory Board

If you have a dilemma or situation that you would like discussed in this column, email [email protected]. Alternatively, call the confidential regulation helpline on +44 (0)20 7334 3867.

Commercial real estate agency standards (UK) The publication of this guide to best practice in commercial agency coincides with a period of increased emphasis on ethical practice and responsibility in the sector. The guidance ensures clients have a clear understanding of the scope and quality of service they can expect from commercial agents, to help to improve standards in the sector by raising public and professional awareness.

10 DECEMBERManaging the design deliveryThis guidance note sets out important issues in managing the process of delivering design in the context of construction projects. Design delivery is recognised as a key process in providing a link between the interpreted response to the client’s needs and the construction process in order to turn the client’s needs into reality.

Executiewaarde (execution value), foreclosure values and forced sales Written specifically for application in the Netherlands, this guidance aims to assist the valuer in the provision of valuations in circumstances that are similar to market restraints or forced sales. ‘Execution value’ is a term used in the Dutch Civil Code. In Dutch valuation practice, a number of valuation methods have been developed that are based on a forced sale, either by public sale or by a judicially approved private sale.

23 JANUARYFinancial viability in planning This guidance note provides local planning authorities, developers, landowners and chartered surveyors with definitive and objective guidance on evaluating the impact of planning obligations, including affordable housing and other S106 requirements (including application of tariffs and levies), and planning policy on the financial viability of a proposed development. It also provides an effective framework to assess financial viability, regardless of the regulatory regime in place or the stage of the economic cycle at which the evaluation takes place.rics.org/standardsrics.org/standardsconsultations

RAISING STANDARDS

NEW ROUTE TO MEMBERSHIPIn January, RICS is introducing a new route to membership for property professionals who have the expertise required to join without undertaking a period of further study. Applicants will need to have a bachelor’s degree or a degree-equivalent professional qualification recognised by RICS, a minimum of five years’ relevant post-degree experience, and be able to demonstrate all the essential knowledge and skills for professional practice in their chosen field. If you know someone who may be suitable for RICS membership through the professional experience route, direct them to rics.org/experience.

Retain your statusAll members should have received their 2012 subscription renewal notification. Paying your membership fees by the due date helps RICS reduce the time and money spent chasing fees, allowing resources to be used more effectively. Renewals are due on 1 January 2012, and there are a number of ways you can make payment.

Online: the quickest and simplest way to renew is to visit rics.org/renew and make your payment today.

Credit/debit card: complete and return the card mandate in your renewal pack.

Direct Debit: if you have been billed in GBP and have a UK bank account, you can pay by Direct Debit. Visit rics.org/renew or complete and return the mandate in your renewal pack.To find out more about membership renewals, methods of payment and whether you are eligible for a concession, visit rics.org/membershiprenewals or email [email protected].

MODUS_Dec_P43-53_Info.indd 49 23/11/2011 12:23

Page 50: RICS Modus, Global edition — Dec–Jan 2011

50 r ics.org

Advertorial//

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

Benefitsrics.org/benefitsplus

Winter checklistAt this time of year, it’s a good idea to consider how you can protect your home against winter weather damage. Taking precautions to avoid damage from winter weather can help to prevent a claim. Hiscox, the RICS preferred partner for home and contents insurance, has put together a checklist to help you prepare your home for winter:

Clear gutters, down pipes and drains of autumn leaves and debris.

Insulate water tanks, pipes and cisterns, especially in unheated areas such as lofts and outbuildings.

Check for slipped or missing roof tiles, which will help to keep your property watertight and damp free.

Arrange a boiler/central heating service to save on fuel bills and ensure the safety of your family and home.

If you leave your home overnight: Leave the heating on low and, if

possible, open the loft hatch to avoid frozen and burst pipes. This is a good short-term measure if you know your lagging is sub-standard in places.

Consider fitting frost thermostats to prevent pipes from freezing.

Guard against leaks by fitting a device, such as a waterminder, that shuts off the water within minutes or signals an alarm if there is a burst pipe.

Make sure you know where the stopcock is and, if you are leaving the property during winter, inform a neighbour too and make sure they can visit the property.

It’s important to attend to a home emergency immediately to reduce the extent of damage to your home and contents. To find out more, visit hiscox.co.uk/winterweather.

It’s also important to ensure your home is covered. Hiscox Home Insurance automatically includes cover for storm and flood damage and burst pipes (subject to underwriting criteria). RICS Benefits Plus members can receive a 12.5% discount on Hiscox’s standard rates, plus a further 10% off in the first year if you buy online (subject to minimum premiums). Call 0845 365 1734 or visit hiscox.co.uk/rics.

The 10% online discount is applicable in the first year of your policy only and will be taken from your premium before application of the 12.5% saving. The offers only apply to Hiscox 505 Home Insurance, available via specific telephone number and website, and are subject to minimum premiums. Cases that do not meet Hiscox’s underwriting criteria may be referred to a Hiscox recommended specialist insurance broker, where these offers will not apply. Policies are underwritten by Hiscox Underwriting Ltd on behalf of Hiscox Insurance Company Ltd, both of which are authorised and regulated by the Financial Services Authority. The Royal Institution of Chartered Surveyors is an Appointed Representative of Hiscox Underwriting Ltd. Reference to standard policies is based on a typical level of non-high net worth cover as defined by the independent financial research company Defaqto Ltd. For UK residents only.

MODUS_Dec_P43-53_Info.indd 50 23/11/2011 12:24

Page 51: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

ENGLAND

RICS expert witness workshopsVarious dates and locationsThree modules for expert witnesses on expert evidence, law and practice, advanced report writing, witness familiarisation and court skills.£250 + VAT per module (all three modules £650 + VAT)£450 + VAT for assessment dayrics.org/expert witnessworkshop

RICS South East – Reading CPD club: Buildings regulation update15 December, ReadingA review of planned changes and developments in regulations, as well as the approved documents.£16.67 + VATrics.org/southeast

RICS South East – Sussex CPD club: Sustainable buildings21 December, CrawleyAn overview of the way sustainable buildings are assessed and rated.£16.67 + VATrics.org/southeast

Neighbourly disputes roadshowJanuary, various locationsAn insight into handling common

disputes between neighbours, focusing on party walls, boundary disputes and rights of light.£150 + VAT per seminarrics.org/neighbourlydisputes

North East summit20 January, NewcastleExperts from politics, finance and enterprise will provide up-to-date information on developments in policy and practice.£125 + VATrics.org/northeast

RICS South East – Kent CPD club: Working with wildlife21 January, MaidstoneIntroduction to the protected animal and plant species you need to be aware of when planning and delivering your development.£16.67 + VATrics.org/southeast

RICS East of England – Building control CPD24 January, CambridgeOverview of the planning and building control relationship, plus updates to Parts B, P and M.£72 + VATrics.org/east

RICS housing conference 201226 January, LondonThis annual

conference will provide various perspectives on the development and delivery of homes in the social and private rented sectors. £250 + VAT rics.org/housing

RICS Cambridgeshire – Developing land in the new planning environment 30 January, CambridgeAn overview of the changes in the Localism Bill and National Planning Policy Framework, and the impacts for developers and local planning authorities.£17.50 + VATrics.org/east

RICS business valuation conference 31 January, LondonAn analysis of key developments in standards for better business valuations, plus the global economic implications for local commercial markets. £195 + VATrics.org/busvalue2012

RICS contract administration seminarsJanuary to February, various locationsOverview of contract administration and legal implications, plus an introduction to the new guidance note.£150 + VATrics.org/ contractadmin2012

RICS strategic facilities management conference8 February, LondonA detailed analysis of the key elements of

sessions on building conservation, dilapidations, contract administration, neighbourly matters and the changes to planning legislation. Plus drinks reception.rics.org/bsconf2012

WALES

RICS North Wales – Town centres: what future?18 January, St AsaphEdward Hiller of Mostyn Estates will discuss the current problems and possible options facing town centres.£10rics.org/events

RICS Wales public sector procurement conference2 February, CardiffAn investigation into the challenges of ensuring public sector procurement contributes maximum value to the Welsh economy, and how they should be addressed in the future.£96rics.org/events

SCOTLAND

RICS Scotland lunchtime CPD seriesDecember to February, Glasgow and EdinburghPresentations will include the Bribery Act 2010, the role of planning in supporting sustainable growth and architectural ironwork. £26 + VAT per place, per eventrics.org/lunchtime

ASIA

Fit for the future: A grand transformation for property, land and construction28-29 March, BeijingThis conference will explore a range of themes including property investment markets, affordable housing, valuation standards, infrastructure, land resource management and technology.ricsasia.org/ fitforthefuture

Eventsan FM strategy, plus how to add value and improve the efficiency of your organisation.£250 + VATrics.org/ strategicfm2012

RICS building information modelling conference9 February, LondonA cutting-edge conference exploring the adoption of BIM, its impact on workflow, practices and procedures, and how it will reshape the relationships between construction professionals.£195 + VATrics.org/bimconference2012

RICS national building surveying conference 201219 April, LondonRICS’ flagship annual conference for building surveyors, offering up-to-the-minute legal and economic updates, an analysis of new Building Regulations, and breakout

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

MIPIM – CONNECTING PROPERTY PROFESSIONALS 6-9 March, Cannes, France

MIPIM is the leading marketplace for real estate, architects, local

government and investors, providing an opportunity for industry decision-makers to meet and showcase their latest development projects. As a key industry partner, RICS will have an exhibition stand and will host a conference focusing on what makes cities attractive.

MODUS_Dec_P43-53_Info.indd 51 23/11/2011 12:24

Page 52: RICS Modus, Global edition — Dec–Jan 2011

MODUS_Dec_P43-53_Info.indd 52 23/11/2011 12:24

Page 53: RICS Modus, Global edition — Dec–Jan 2011

01.11 // MODUS 09

EASTERN

Leslie Collins FRICS1929-2011, Chelmsford

Lester Rumney MRICS1955-2011, Ilford

LONDON

Geoffrey Herbert Bowley FRICS1930-2011, London

Sylvana Maxine Chiappa MRICS1963-2011, London

Mark Onslow Creedy Smith MRICS1957-2011, London

Derek Peter Helliwell FRICS1927-2011, Beckenham

John Richard Yeomans FRICS1943-2011, London

NORTH EAST

Arthur Hubert Fewell FRICS1924-2011, Newcastle Upon Tyne

NORTH WEST

Gordon Coates MRICS1923-2011, Stockport

Brian Green FRICS1927-2011, Altrincham

Gordon Michael Lowden FRICS1920-2011, Ulverston

Kenneth Tweed Milnes FRICS1915-2008, Morecambe

Kenneth Shorrock MRICS1927-2011, Blackburn

SOUTH EAST

Charles Channell FRICS1919-2011, Pinner

John C Coulter MRICS1928-2011, Canterbury

Kenneth William George Dampier FRICS1920-2011, Horsham

Charles Edward Francis FRICS1953-2011, Milton Keynes

David George Rees FRICS1915-2011, Lewes

David Hugh Smith MRICS1928-2011, Chipping Norton

Raymond Frederick Ventris FRICS1925-2011, Walton-On-Thames

SOUTH WEST

Peter William Baillie FRICS1914-2011, Gillingham

Douglas Searl Barton FRICS1950-2011, Truro

Adrian Charles Bawn MRICS1925-2011, Bristol

John Leonard Ferguson MRICS 1945-2011, Sherborne

EAST MIDLANDS

Peter Bernard Chappelow MRICS1965-2011, Kettering

Adrian William Smith MRICS1956-2011, Nottingham

WEST MIDLANDS

Martin Bullock FRICS1948-2011, Coventry

Harold Lester Harrison FRICS1927-2011, Wolverhampton

Norman More FRICS1921-2011, Stratford-Upon-Avon

SCOTLAND

James Terrace Smith MRICS1933-2011, North Berwick

John Thomas Sutherland FRICS1928-2011, Leven

WALES

Adrian Charles Helmore FRICS1957-2011, Aberdare

Keith Lewis MRICS1931-2011, Pontyclun

NORTHERN IRELAND

Annesley John Malley FRICS1944-2011, Londonderry

Peter James Arthur Ritchie Trainee1987-2011, Holywood

MENEA

Stephen Doran MRICS1975-2011, Dubai

ASIA

Mona Woo FRICS1959-2011, Hong Kong

Obituaries Adrian Helmore FRICS 1957-2011

Adrian died suddenly on 3 October, and is a tragic loss to the minerals specialism within RICS. Adrian joined in 1980 and

was a stalwart supporter of RICS Wales and RICS Minerals and Waste Management (MWM). He started his professional life in the UK coal industry and, even after the political turmoil of the 1980s, continued to work in the sector. On becoming FRICS in 1996, he become more involved with MWM and was the last divisional president in 1999. Adrian was pivotal in helping the ‘old’ division transform into the new MWM faculty, with its focus on energy, sustainability, environment and the waste industries. He was the first chairman of the new faculty and maintained his membership of the MWM board until 2006. He was also a regular speaker at RICS events and conferences. In many ways he was a prescient voice for the recognition of coal as a primary source of UK energy, considering the recently developed advanced carbon sequestration methods and proposals for new coal-fired power stations in the UK. It was my personal pleasure to have known Adrian, and he will be sadly missed by the members of MWM, and by the industry as a whole.James Kavanagh MRICS, RICS Land Group Director

12.11 // 01.12 // MODUS 53

DISCIPLINARY PANEL 21 SEPTEMBER 2011

Jacqueline Alpert MRICS, LondonSummary of finding: contrary to Rule 4 of the Rules of Conduct for Members 2007Penalty: reprimand/undertaking/costs

DISCIPLINARY PANEL 28 SEPTEMBER 2011

Rowland Saunders MRICS, NorfolkSummary of finding: contrary to Rule 3 of the Rules of Conduct for Members 2007 x 2Penalty: reprimand

Saunders Associates, NorfolkSummary of finding: contrary to Rule 3 of the Rules of Conduct for Firms 2007 x 2Penalty: reprimand/conditions/costs

DISCIPLINARY PANEL 5 OCTOBER 2011

Mark Jones, Kent Summary of finding: contrary to Bye-law 5.2.2; contrary to Bye-law 5.2.1(d)(i)Penalty: expulsion/costs

DISCIPLINARY PANEL 5 OCTOBER 2011

Thomas Stocks MRICS, BingleySummary of finding: contrary to Rule 8 of the Rules of Conduct for Members 2007Penalty: reprimand

Planning Matters, BingleySummary of finding: contrary to Rule 7 of the Rules of Conduct for Firms 2007/contrary to Rule 14 of the Rules of Conduct for Firms 2007Penalty: reprimand/£250 fine/costs

DISCIPLINARY PANEL 13 OCTOBER 2011

David Pugh FRICS, West Midlands Summary of finding: contrary to Rule 3 of the Rules of Conduct for Members 2007Penalty: caution/costs

DISCIPLINARY PANEL 19 OCTOBER 2011

Antoine Copeland, West MidlandsSummary of finding: contrary to Rule 8 of the Rules of Conduct for Members 2007/Rule 9 of the Rules of Conduct for Members 2007Penalty: expulsion x 2/£400 fine x 2/costs. rics.org/conductcases

Conductrics.org/regulationenews

MODUS_Dec_P43-53_Info.indd 53 23/11/2011 12:24

Page 54: RICS Modus, Global edition — Dec–Jan 2011

Specialists in Remedial Structural Repairsand now EWI Cladding and Render Systems

EWI installations.

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

Department of the Built Environment

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

For further information:

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

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

PostgraduateMSc Project ManagementMSc Construction ManagementMSc Sustainable ConstructionMSc Conservation of Buildings

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

These can be studied full or part-time.Self motivated experienced surveyors wanted to run and develop their own territory under the MAP brand.Why not put our 30 years expertise behind you?Take control of your life and show your quality. Get the rewards you deserve.You will be experienced in Homebuyers and Building Survey reports as well as Valuations and above all you will want to develop a personal business model within our highly professional established structure.Now is the time to take that step you have been dreaming of.We are looking for expertise in North, North West and West London as well as Middlesex, Herts, Sussex, Surrey & Essex.

STILL ON THE VALUER TREADMILL?

TAKE CONTROL OF YOUR LIFE IN 2012.

Email for details: [email protected] [email protected]

www.mapsurveyors.co.uk

54 r ics.org

MODUS_Dec_P55-57_Classified.indd 54 25/11/2011 11:35

Page 55: RICS Modus, Global edition — Dec–Jan 2011

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

92,028 average net circulation 1st July 2010 – 20th June 2011

RECRUITMENTFor recruitment advertising please contact Grace Healy +44 (0)20 7793 2491 [email protected] Dorlisa Purkiss +44 (0) 20 7014 3347 [email protected]

11.11 // MODUS 55

Business services

CHEGWIDDEN & Co Chartered Accountants

Mergers & Acquisitions Department

ARE YOU PLANNING TO SELL YOUR PRACTICE?

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

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

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

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

Advertise in Modus and recruit from a pool of more than 92,000

chartered surveyorsThe February issue will be published on 10 Feb

Recruitment booking deadline Tues 10 Jan

Recruitment copy deadline Tues 17 Jan

now survey, a multi disciplinary firm of Chartered Surveyors, is looking for a residential surveyor to join our increasingly busy team

Chartered Valuation Surveyor, based in Hampshire, to carry out mortgage valuations, Homebuyer Surveys and Building Condition Surveys for lenders and private clients. Excellent PII record, flexibility and the ability to work to tight turnaround times necessary. Please email CVs and covering letters, including salary expectation, to Claire Butt, Partner [email protected]

Employer: Rochford District Council Reference: PT41

Salary: PO6-9 £31,754 to £34,549 (Essential car allowance payable)

Hours: 37 hours per week Working pattern: Flexible hours, full time, permanent position Location: Rochford is 35 miles from London and 5 miles from

Southend-on-Sea

If you’re looking for the next step in your career and hold a recognised building qualification such as MRICS or MBEng

in Building Control then Rochford District Council wants to hear from you.

We are looking for a Senior Building Control Officer to join a local authority that is consistently recognised at national level for

delivering excellent public services.

You will be a key member of a Building Control team that has a track record for delivering a responsive, flexible and high quality

service. The successful candidate will be expected to manage a caseload of applications with the minimum of supervision

and to undertake full plans checks as required. There may be a requirement occasionally to work evenings or weekends to deal

with dangerous structures.

We are looking for candidates who have several years experience of working in building control, you must be happy working

outside in all weathers and hold a full current driving licence and have use of a vehicle.

The closing date for completed applications is 5pm 16 January 2012.

Please apply online at www.rochford.gov.uk

JOB ADVERTISEMENT

SENIOR BUILDING CONTROL OFFICER

MODUS_Dec_P55-57_Classified.indd 55 23/11/2011 12:59

Page 56: RICS Modus, Global edition — Dec–Jan 2011

56 r ics.org

To view more jobs online visit ricsrecruit.com

RESIDENTIAL VALUATION SURVEYORSVarious opportunities exist with a blue chip financial services

organisation, leading residential surveying firms, and premier panel management companies.

A number of the industry’s very best employers are recruiting once again. You must be MRICS and a registered valuer. Local knowledge and a proven track record of undertaking residential mortgage valuations, Homebuyer reports, and preferably building surveys is essential.

FULL TIME PERMANENT POSITIONS. Basics to circa £55k, + commission etc. Most areas of M25/Home Counties. Central London, NW London, Enfield/Winchmore Hill/Lee Valley, Islington /Stoke Newington, Camden, Romford/ Ilford Corridor, NE London, East London, SE London, SW London, Twickenham, Kensington, Putney, Chertsey/Weybridge/Woking, Crawley, Guildford, Greenford, M4 Corridor/Maidenhead, Abingdon, Windsor, Milton Keynes/ Bedford, Luton, Medway/Maidstone, Canterbury/Ashford, Eastbourne, Brighton, Portsmouth, Southampton, Bristol/Bath, Norwich, Northants, Coventry/Warks, Bradford, Dumfries, Aberdeen, Dundee

ZERO HOURS EMPLOYMENT & CONSULTANCY (full and part time). Most areas of M25/Home Counties, South/SW London, Milton Keynes, Luton, St Albans, Canterbury/Dover/Folkestone, E Sussex/West Kent,, Brighton, Cornwall, Cambridgeshire, Ipswich/Suffolk, Peterborough/Stamford, Grimsby, Birmingham, Preston/Fylde Coast, Dundee.

Remuneration packages vary depending on employer and location. For example, we have rarely available permanent positions in London/M25 with a quality blue chip financial services organisation offering £45-50k basic salary, plus outstanding commission scheme, excellent pension scheme etc. Zero Hours employment and consultancy positions are typically on a generous fee share arrangement.

If you feel unsettled or undervalued in your current position, email your CV with contact number to: [email protected] call Jeff Johnson on 07940 594093 in complete confidence. Register now to be kept advised of new opportunities in your location.

Or call Je� Johnson on 07940 594093 in com-

ricsrecruit.com

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

T +44 (0)20 7793 2491E [email protected] +44 (0)20 7014 3347E [email protected]

BUILDING SURVEYING Contracts Manager LondonCompetitive Ref: RICS0037The Contracts Manager role is to strengthen the Contracts team and manage the implementation and delivery of projects on behalf of our clients. Projects vary from minor works up to a value of £1m. this role would suit someone from the Surveying industry who is looking to move to the Main Contractor industry. GENERAL PRACTICEGeneral Practice Surveyor South East LondonNegotiable and Kent£30,390 - £38,070 Ref: RICS0038A leading firm of chartered surveyors and property consultants working in the north east and south east M25 quadrants are looking to recruit an MRICS/FRICS qualified general practice surveyor with at least 2 years post APC experience. Candidates should have proven experience in all aspects of general practice surveying, with particular emphasis in secured lending valuations. COMMERCIALProperty Management/Accounts LondonPart Time Ref: RICS0039We are looking for a versatile, numerate individual who can provide property management and accounts assistance for these properties. This includes overseeing service charge administration and accounts provided by our retained managing agents, accounts reporting and forecasting of individual property business plans for our clients and other general property biased accounts work. Previous property management and service charge accounts experience is essential.

[email protected] 720108

COUNTRY HOUSE AGENT OPPORTUNITY

Halls an established firm of Estate Agents and Chartered Surveyors are looking for an experienced

Country House Agent to run their Worcester residential office

The candidate will have:• At least 10 years e perience• rive and a passion to urther this

leading department• A passion or the countrysideThis is a antastic opportunity or that person wishing to ma e the step up to running a Country ouse Team

Applications in writing with a ull CV to:

BLACKPOOL

General PracticeChartered Surveyor

required by smallProfessional Practice with a

view to early partnership.Wide range of workwith many

long-established clients.Property Management,

commercial agency, L & T etc

Applications with CV to:[email protected]

Fax: 01253 752870

MODUS_Dec_P55-57_Classified.indd 56 25/11/2011 11:39

Page 57: RICS Modus, Global edition — Dec–Jan 2011

09.11 // MODUS 65

ricsrecruit.com

Missing an experienced surveyor or graduate?

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

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

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

MODUS_Dec_P55-57_Classified.indd 57 23/11/2011 12:31

Page 58: RICS Modus, Global edition — Dec–Jan 2011

18.2%

GLOBAL TOTAL PRIMARY ENERGY SUPPLY 2009

3.4%

18.6%**2030 estimate

*geothermal, wind, solar, etc

**includes combustible renewables and waste

Mtoe = Million tonnes of oil equivalent

OIL 32.8%

COAL 27.2%

GAS 20.9%

2009 Mtoe

12,1502030 Mtoe

14,389

TOTAL1973 Mtoe

6,111

BIOFUELS/WASTE 10.2%

HYDRO 2.3%

NUCLEAR 5.8%

OTHER* 0.8%

Total oil consumption 2009 1,000s barrel/day % Change on 2008US 18,686 -4.9%China 8,625 6.7%Japan 4,396 -10.7%India 3,183 3.7%Russia 2,695 -4.8%Saudi Arabia 2,614 9.8%Germany 2,422 -4.0%Brazil 2,405 -0.2%South Korea 2,327 1.5%Canada 2,195 -4.4%World total 84,077 -1.7%

Top net electricity importers 2009 (TWh)

Italy 45Brazil 40US 34Finland 12India 10

Electricity production from fossil fuels 2009 (TWh)

Top net energy exporters 2009 (TWh)

Paraguay 45Canada 34France 26Russia 15Czech Republic 14

Global solar power2009 7.2GW added2010 16GW added

GLOBAL TOTAL

40GW

16%Global final energy consumption from renewable sources in 2010.

306The number of operational wind farms in the UK in 2011 (5,738MW).

OilSaudi Arabia 120Japan 92Iran 52US 50Mexico 46

Coal/peat*China 2,913US 1,893India 617Japan 279Germany 257

GasUS 950Russia 469Japan 285UK 165Italy 147

1973

15,624Mt

2009

28,999Mt

Fossil fuel shares of CO2 emissions

*70%The percentage of coal plants in the EU more than 20 years old, and operating at 32-40% efficiency.

Twh = terawatt hours

SOURCES decc.gov.uk, iea.org, wikipedia.org, worldenergy.org, bp.com

234,439,000Total energy consumed in the UK in 2008 (tonnes of oil equivalent)

436The number of nuclear reactors in the world in 2009.

40% The amount of gas imported in the UK in 2010.

30%Electricity generation to be provided by renewable sources in the UK by 2020.

0.9% 9.9%

1.8%

10.6%

16% 20.4%

24.6%

29.5% 46%

0.1%1973

Illustration by Ian Dutnall

Measure//

POWERING UP ENERGY GENERATION AND CONSUMPTION

58 rics.org

MODUS_Dec_P58_measure.indd 58 23/11/2011 12:25

Page 59: RICS Modus, Global edition — Dec–Jan 2011

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

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

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

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

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

• MBA in Real Estate and Construction Management

• MSc in Real Estate

• Postgraduate Diploma in Adjudication

• Postgraduate Diploma in Arbitration

• Postgraduate Diploma/MSc in Conservation of the Historic Environment

• Postgraduate Diploma/MSc in Facilities Management

• Postgraduate Diploma/MSc in Property Investment

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

• RICS Postgraduate Diploma in Project Management

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

MODUS_Dec_p59 CEM Ad.indd 59 23/11/2011 12:32

Page 60: RICS Modus, Global edition — Dec–Jan 2011

MODUS_Dec_p60 BMI Ad.indd 60 23/11/2011 12:38