RICS Modus, Global edition - October 2013

The o

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You know The drill Opportunities for surveyors in oil p20growing pains Do biofuels do more harm than good? p30 local warming Life with the Renewable Heat Incentive p34

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a tanker collision blocks the persian gulf.

oil doubles in price. What happens next?

MODUS_Oct13_P1_Cover.v4.indd 1 10/09/2013 09:49

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NO 3110.13 //

OILING THE WHEELSMoney may make the world go around, but without a plentiful supply of oil, things

would grind to a halt pretty quickly. It’s what we use to get around, it’s what we

use to move materials from their source to their point of use, and it’s present (one

way or another) in almost every mouthful of food that we eat. So in this issue of

Modus, we’re exploring our relationship with the black gold: the opportunities

that it presents for us professionally; where in the world we are still fi nding it; and

the challenge that we face in weaning ourselves on to other, more environmentally

benign, power sources. And in our cover story, we ask how we would all be affected

if a ‘black swan’ event, such as a tanker collision at the mouth of the Persian Gulf,

led to a sudden and prolonged rise in the price of oil. It’s all fuel for thought…

OLIVER PARSONS EDITOR

10.13 // MODUS 03

Regulars04_FEEDBACKYour views on Modus and more

06_INTELLIGENCEGlobal news, plus opinions, reviews and reactions

29_LAW ADVICEThe fi ner legal points of the UK government’s Green Deal

41_BUSINESS ADVICEHow to use your expertise to create press coverage

Features14_OIL AT $200 A BARRELWhat would happen if an unexpected event led to a massive rise in the price of oil? 20_WHERE NEXT?A look at the surprising places that a career in the oil industry could take chartered surveyors

26_BLACK GOLDGlobal data on oil reserves, production and consumption

30_THE OIL FARMJust a decade ago, biofuels seemed a perfect answer to our energy problems. Now the world is not so sure. Why?

34_TURN UP THE HEATThe Renewable Heat Incentive helps rural businesses to switch from oil-fi red heating systems. We take a look at how it works

Information43_RICS NEWSNews, updates and a message from the RICS President

49_EVENTSTraining and conference dates

51_RECRUITMENTCareers advice and the latest job opportunities from across the industry

58_THE MEASUREHow far can you cycle, swim and walk on the energy equivalent of one barrel of oil?

Contents

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14

20

MODUS_Oct13_P3-5_Cont and Letters.V2.indd 3 10/09/2013 10:01

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.

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

IN SYMPATHYI was shocked and saddened to hear of the death of RICS member Chris Edwards at such a comparatively young age. Chris was a lovely man: he served RICS, and before that the ISVA, in senior capacities and his expertise, charm and hard work brought great credit to our professional organisation. I’m sure that the many members of the Manchester branches of RICS and ISVA who came into contact with Chris would like to join with me in extending our condolences to his family.Peter Cunliff e FRICS, Sale

If you would like to inform us of a colleague or peer’s passing, email [email protected], including membership number if known, or call +44 (0)870 333 1600.

THE SIZE OF ITThere was a reference on the news recently that houses under construction in the UK are too small to be an acceptable home. Sometimes, we see published the average selling price of a newly built house – which, at the moment, is about £170,000 in the UK. However, the size of this average house is never included, and I suggest that it should be. In the Daily Mail recently, I read that the owner of an expensive house in London has asked permission to extend the basement by 900 sq m, which the newspaper says is the equivalent of about eight average homes – implying the average house is 112.5 sq m.

One of the UK’s largest builders, Persimmon, announced today in its half-year report that the average selling price has increased in the past six months by 5% to £179,199. However, no indication is given for the size of the house.

Could RICS make a recommendation to the Ministry of Housing that builders include the size of the properties built in their fi nancial statements? And that the average selling price in the UK should include the size of the property? Local planning committees must have a big infl uence in this matter by setting the density of houses per acre that can be developed. Obviously, they are under pressure to allow the highest possible density, which may lead to many houses being far too small.John Doel FRICS, Lymington

@j_bmilburn @modusmag great article this month, ‘turning offi ces into homes’ how practical is it and would developers be open to it? #doitdiff erently

@doodlings Excellent article by Graham Warren in @modusmag ‘Rural planning rules destroying communities’ Deserves wider circulation @RICSWales #RICS

@jonsawyerigloo Interesting piece on the growth in pop up retail in this month’s @modusmag #rics Good to see pop up becoming more mainstream

@RICSnews // @modusmagnews // @modusmag

Feedback //

The MODUS team //FOR SUNDAYEditor Oliver Parsons // Art Director Christie Ferdinando

// Contributing Editor Brendon Hooper // Deputy Editor

Samantha Whitaker // Junior Designer Isabella Fernandes

// Creative Director Matt Beaven // Account Director

Stephanie Hill // Commercial Director Karen Jenner //

Commercial Manager – Display Lucie Inns // Advertisement

Manager Victoria Cunningham // Commercial Manager

– Recruitment Charlotte Turner // Recruitment Sales

Executive Angus Sharpe // Managing Director Toby

Smeeton // Repro F1 Colour // Printers Woodford Litho //

Cover Jörn Kaspuhl // Published by Sunday, 207 Union

Street, London SE1 0LN sundaypublishing.com

FOR RICSEditorial board Jaclyn Dunstan and Mark Goodwin

RICS, Parliament Square, London SW1P 3AD

89,820 average net circulation 1 July 2012 – 30 June 2013

COMING SOON:IN THE NOVEMBER ISSUE OF MODUS

Getting there: We look at the future of sustainable urban transit systems and how they will aff ect the development of our cities

Poundbury at 20: Two decades on, Prince Charles’ new urbanist experiment has come of age. How successful has it been?

Big city blues: What factors make a city ‘sprawl’, and can it be stopped? We examine the lessons learned in Liverpool, London and Budapest

PLUS, are you engaged in work in extremely hot, cold or otherwise potentially dangerous conditions? If so, we’d like to hear from you for our forthcoming ‘extremes’ issue. Email [email protected].

Mitsubishi L200 range from £14,499+VAT3

1. 5 year/125,000 mile warranty (whichever comes first) is applicable to new Mitsubishi L200 retail and small business sales and selected Contract Hire agreements. 5 year/125,000 mile warranty excludes NI & Channel Islands, Terms and Conditions apply. Please see www.mitsubishi-cars.co.uk for more details. 2. The 0% APR Representative Finance plan is through Finance Mitsubishi, 116 Cockfosters Road, Barnet, EN4 0DY and is subject to status to customers aged 18 and over. Finance Mitsubishi is part of Lloyds TSB Asset Finance. 0% APR Representative Finance rate is better than rates available from high street lenders and requires a 50% deposit, other offers are available – ask for details. Indemnities may be required. Offer is only applicable in the UK (excludes NI, Channel Islands & I.O.M), subject to availability, whilst stocks last and may be amended or withdrawn at any time. Offer available between 1st October and 31st December 2013. 3. List price shown excludes VAT, VED and First Registration Fee and is for an L200 Single Cab 2.5 DI-D 4Work. Metallic paint extra. Vehicle shown is an L200 Warrior with optional accessories.

L200L200L200

The L200 is built for a tough fi nancial environment – that’s why it comes with Britain’s best and longest one tonne pick-up warranty as standard; so there’s no need to worry about unforeseen costs. It also comes with Super Select 4WD. So unlike any other pick-up, you can drive in 2WD or 4WD on tarmac – which is perfect for towing. And because times are tough, it’s also available with a 3 year fi xed price service plan and a range of fi nance options, including Contract Hire.

Put it through its pacesVisit mitsubishi-cars.co.uk to fi nd your nearest dealer MitsubishiUKMitsubishiUK MitsubishiTV

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M33454 L200 WarriorAgriculture Modus 274x202.indd 1 06/09/2013 15:02

JOIN THE DEBATE

:REACTIONS AND RESPONSES FROM PREVIOUS ISSUESDo you have an editorial comment about this issue of Modus? Please email [email protected].

MODUS_Oct13_P3-5_Cont and Letters.V2.indd 4 10/09/2013 10:01

Mitsubishi L200 range from £14,499+VAT3

1. 5 year/125,000 mile warranty (whichever comes first) is applicable to new Mitsubishi L200 retail and small business sales and selected Contract Hire agreements. 5 year/125,000 mile warranty excludes NI & Channel Islands, Terms and Conditions apply. Please see www.mitsubishi-cars.co.uk for more details. 2. The 0% APR Representative Finance plan is through Finance Mitsubishi, 116 Cockfosters Road, Barnet, EN4 0DY and is subject to status to customers aged 18 and over. Finance Mitsubishi is part of Lloyds TSB Asset Finance. 0% APR Representative Finance rate is better than rates available from high street lenders and requires a 50% deposit, other offers are available – ask for details. Indemnities may be required. Offer is only applicable in the UK (excludes NI, Channel Islands & I.O.M), subject to availability, whilst stocks last and may be amended or withdrawn at any time. Offer available between 1st October and 31st December 2013. 3. List price shown excludes VAT, VED and First Registration Fee and is for an L200 Single Cab 2.5 DI-D 4Work. Metallic paint extra. Vehicle shown is an L200 Warrior with optional accessories.

L200L200L200

The L200 is built for a tough fi nancial environment – that’s why it comes with Britain’s best and longest one tonne pick-up warranty as standard; so there’s no need to worry about unforeseen costs. It also comes with Super Select 4WD. So unlike any other pick-up, you can drive in 2WD or 4WD on tarmac – which is perfect for towing. And because times are tough, it’s also available with a 3 year fi xed price service plan and a range of fi nance options, including Contract Hire.

Put it through its pacesVisit mitsubishi-cars.co.uk to fi nd your nearest dealer MitsubishiUKMitsubishiUK MitsubishiTV

2

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Intelligence :news :reviews :opinions :reactions

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01.11 // MODUS 09

From chocolate and margarine to chewing gum and lipstick, palm oil is found in a wide array of supermarket products. What’s more, this wonder oil, produced from oil palms grown in the tropics, is now finding its way into petrol tanks too, as a biofuel. As the highest-yielding vegetable oil crop, palm requires less than half the land of other crops, such as soya bean or rapeseed, to produce the same amount of oil. This makes it cheap, and in many countries, including Nigeria, Thailand and Brazil, palm oil trade has the potential to contribute significantly to economic growth. However, the environmental cost can be devastating. In Indonesia and Malaysia, where around 85% of the world’s palm oil is produced, thousands of hectares of wildlife-rich rainforest have already been hacked away to make room for plantations – particularly on the island of Borneo, the only remaining habitat of orangutans. But to feed the ever-growing demand for palm oil – predicted to double by 2030 – widespread deforestation is set to continue, displacing many thousands of endangered species and indigenous communities in its wake.

:palm oil plantations BorNeo

MODUS_Oct13_P6-7_News opener.v2.indd 7 10/09/2013 10:06

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Debate

IS FRACKING FOR SHALE GAS THE ANSWER TO THE UK’S FUTURE ENERGY REQUIREMENTS?

YESFrancis Egan chief executive of Cuadrilla, an independent oil and gas exploration and production company in the UK

Natural gas has been an essential part of the UK’s energy supply since the 1960s. Just 15 years ago, all our gas needs could be supplied from the North Sea, but with the decline in production, we now import around 50% of our gas, and over the next 10-20 years, we will import increasingly more. Although the government is committed to growing the use of non-fossil fuels, there will still be a need for gas for many decades.

So where will it come from? Most likely from increasingly remote areas, transported to the UK over long distances in liquefi ed form via gas tankers. This is expensive, potentially insecure and certainly emission-intensive. However, there is an alternative. The natural gas believed to exist within the Bowland Shale Formation presents a huge opportunity to significantly reduce our gas import requirements, and provide a major contribution to our economy. Even if just 10% of the Bowland Shale gas can be extracted, it could meet the UK’s current gas demand for more than 40 years, and at today’s gas prices, this recoverable 10% would have a market value of almost £1tn. What’s more, local communities will benefi t fi nancially , and the Institute of Directors predicted that shale gas development could create 74,000 new jobs.

There are scare stories about fracking, based on what’s alleged to have occurred elsewhere, but here we have a robust regulatory framework, and the engineering, environmental, and health and safety expertise, to develop our shale gas resources in a safe and responsible way. The UK has the opportunity to become a world leader in shale gas, setting the standard for safety and environmental responsibility, and making our gas resources an essential part of a diverse energy mix. Let’s seize that opportunity.

NODavid Hughes geoscientist and president of research consultancy Global Sustainability Research Inc

Following the British Geological Survey report on in-place gas resources of 38tn cubic metres in the Bowland Shale, chancellor George Osborne declared a 50% tax break for shale gas development. ‘I want Britain to be a leader of the shale gas revolution,’ he said. But he would be well advised to understand the shale gas experience in the US, and the prospects for the UK, before declaring energy salvation.

Firstly, there’s currently no shale gas production in the UK, so the proportion of the purported shale gas resource that could be recovered at an affordable price is uncertain. The most-likely estimate of the amount that might be recovered from Bowland Shale is perhaps 1.19tr cubic metres, which represents just 12-15 years of UK consumption. Then, if well productivity corresponds to the Barnett Shale in the US, which is of comparable size, 30,000 or more wells will need to be drilled. What’s more, average well declines over the fi rst three years in the fi ve largest US shale plays range from 77-89%, showing that a treadmill of drilling is required to maintain production.

Higher population densities and different land tenure regulatory regimes will complicate access to the thousands of drilling locations required, and the high levels of environmental opposition to fracking will further hinder development. This opposition includes concerns about water use, groundwater contamination, industrial footprint, induced earthquakes and greenhouse gas emissions.

Shale gas is no panacea for the UK’s energy woes. If it can be developed at scale in Europe, it will take much longer than in the US, and it won’t be cheap – either economically or environmentally – as some major companies, such as Shell, have been fi nding out with writedowns on US shale assets.

DRILLING DOWNEnvironmental activists outside the Houses of Parliament campaign against hydraulic fracturing (fracking), a technique used to extract shale gas

‘The UK could become a world leader in shale gas production’

‘Shale gas is no panacea for the UK’s energy woes’

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01.11 // MODUS 09

Intelligence //

10.13 // MODUS 09

ConstructionSYDNEY HARBOUR DESIGNS REVISEDPlans for the A$1bn (£588m) redevelopment of Sydney Harbour have been resubmitted after public concerns were raised about the ‘blandness’ of the original building designs. Funded via a public-private partnership, and developed by the Darling Harbour Live consortium, which includes Lend Lease, the plan is for a world-class exhibition, convention and entertainment precinct. In addition, a new residential neighbourhood will be constructed nearby for high-tech businesses, shops, apartments and student accommodation.

:ONE BIG QUESTION IS FULL-TIME STUDY OR AN APPRENTICESHIP THE MOST EFFICIENT PATHWAY INTO SURVEYING?

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

London Nothing beats experience. Surveying is a practical profession, and training for it cannot be achieved in a university. The way forward is the way back: paid pupilage with day-release and correspondence courses, exams and then the Assessment of Professional Competence.

Michael Tibbatts MRICS, Tibbatts & Company Ltd

Oxford My three-year undergraduate course exposed me to many diff erent areas of the industry, and I refi ned vital social and life skills to become a mature and reliable employee. Also, many students undertake placements and internships to apply what they’ve learned.

Devon Without exception, I’ve found that at least the fi rst couple of years of employment are needed to teach graduates how to do the job. I also fi nd that those who train on the job naturally learn how to behave like a professional – which cannot be taught by academic study.

Timothy Garratt FRICS, Rendells

Christopher Green (student member)

AN ALTERNATIVE TO GDP? GLOBAL BUILT ENVIRONMENT ASSET WEALTH

ConstructionSECTOR NEEDS NEW TALENT From next year, the UK construction sector will see strong growth, according to the Construction Products Association (CPA). The CPA predicts that construction output will grow 2.2% in 2014, 4.5% in 2015, 5% in 2016 and 4.7% in 2017. But tied to this is the importance of attracting and retaining skilled workers, warns the National House Building Council (NHBC). ‘As the home-building industry shows the fi rst signs of growth after several years, we’re hearing increasing alarm about the availability of the right people with the right skills,’ said Mike Quinton, NHBC’s chief executive. However, a NHBC Home Building Skills report found that 50% of homebuilders and 80% of housing associations have taken on an apprentice this year, which is positive news.

CommercialA RISE IN RISK APPETITECommercial property businesses in the UK are increasingly looking to expand their operations, according to the latest RICS Commercial Market Survey. What’s more, a recent Deloitte survey has also found that the chief fi nancial offi cers (CFOs) of large businesses are now more willing to take on expansion strategies. The Q2 2013 CFO survey, which gauged the views of 135 CFOs, showed that their expectations for hiring, investment and discretionary spending have returned to levels last seen in early 2011. Furthermore, 45% of CFOs believe now is a good time to take risk on to their balance sheets.

UK Spain Italy Germany Japan US

China India France South Korea Russia

39.735.4

18.3

11.810.4

7.87.4 6.0 5.95.95.5

Source: EC Harris’ Global Built Asset Wealth Index 2013

(US$ trillion)

A new neighbourhood in Chelmsford will feature around 3,600 new homes, as well as other amenities

MODUS_Oct13_P08-13_Intel_v4.F1.indd 9 12/09/2013 12:26

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App of the month

SUN SURVEYOR LITEWhat is it? A free smartphone or tablet app that predicts and visualises the sun’s position throughout the day.Who’s it aimed at? Anyone from architects and real estate professionals to fi lmmakers or photographers who need to know the exact location of the sun at a certain time of day. It would be particularly useful for deciding the optimal positions for solar panels, or calculating the direction of sunlight or shadows cast on buildings.

Search ‘Sun Surveyor Lite’ on your device’s app store.

Commercial‘BIG BOX’ MARKET GROWS Occupier demand for Grade-A distribution units – also known as the ‘big box’ market – has increased sharply in the UK, especially among retailers, says analysis from Jones Lang LaSalle (JLL). In the fi rst half of 2013, take-up of fl oorspace in Grade-A distribution units of 9,300m2 and larger was double that of the same period in 2012. However, at the end of June, availability had dropped to the lowest level since 2005. ‘There’s been only one instance of speculative development in the UK since 2008, but it does seem the market may be reaching a turning point, with IM Properties and Lancashire County Developments both constructing new units,’ said Jon Sleeman, director of industrial and logistics research at JLL. Download the report at bit.ly/JLL_BigBox.

Oil prices and the ‘forward guidance’ announced by the new governor of the Bank of England, Mark Carney,

in early August may, at fi rst glance, appear to have little in common. However, one of the conditions – or ‘knockouts’ – that could result in the Bank’s Monetary Policy Committee rowing back on its commitment

to keep the base interest rate at 0.5% is if infl ation heads signifi cantly above the 2% target over the next 18 to 24 months.

Typically, the Bank tends to take a more sanguine view of this eventuality: after all, monetary policy is already being set precisely to hit this medium-term infl ation target. The August Infl ation Report shows, for example, that by the end of 2014, Consumer Price Index (CPI) inflation should be around 2.2%, and that it will hit the 2% target during the course of 2015.

As usual, there are any number of risks to this forecast, but perhaps one of the most signifi cant dangers is a potential rise in commodity prices. The current infl ation projection is partly based on the assumption that energy costs will edge lower. Yet, interestingly, since the start of July, oil prices have been moving in the other direction, with Brent crude climbing to above US$110 (£70) a barrel.

Part of this move may relate to a lessening of macro risks as the economic news fl ow around the globe has improved – even the eurozone appears to be over the worst. However, alongside this, there is enough evidence to suggest that the physical oil market is quite tight, with instability in

the Middle East and Africa adding to the upward pressure. And, while some of the oil supply disruptions, such as the extended maintenance programmes in the North Sea, might quite rightly be viewed as temporary, others look rather more problematic – for example, the ongoing payment dispute between Iraq and Kurdistan, the security situation in Libya and the issues that surround the resumption of oil production in South Sudan.

The extent to which this could potentially feed through to the CPI numbers, and exert a deflationary influence over the wider economy, is purely a matter of conjecture. However, it’s interesting that one of the areas that showed an increase in the July infl ation data was petrol and diesel. In all probability, we doubt that energy prices will spike in such a way as to force Mark Carney to retreat from his focus on keeping monetary policy ultra-accommodating for the foreseeable future. That said, the uncertainty over the current and future supply of oil means that this possibility should not be completely dismissed, particularly if the emerging economies of the world begin at some point to regain some momentum.

Simon Rubinsohn, RICS Chief Economist

Intelligence //

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Column

RELIABLE OIL PRICE IS KEY TO RECOVERY

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We Like

SKYTRANWhat’s that?It could be the world’s fi rst magnetically levitating mass transit system, if the proposal for a network in Tel Aviv, Israel goes ahead. Designed to reduce traffi c congestion, skyTran is a point-to-point service of personal ‘pods’ that travel to specifi c destinations via a user’s smartphone request.Sounds very ‘space-age’...It is – the system has been co-developed with NASA engineers, and architectural consultancy Jenkins/Gales & Martinez has been appointed to advise on the technology. The pods, which are made from lightweight composite materials, run, in part, on solar energy along a guideway 6m above ground, which is built using modular construction methods to reduce build time and cost. A full-scale test network is currently under construction in California.

Watch a video of the concept at bit.ly/skyTran.

02.13 // MODUS 11

ResidentialUK INSTITUTIONS INVEST IN HOUSING SCHEMEAt Newington Butts, South London, institutional investment will be used to build a large-scale residential rental development for the fi rst time in the UK. The offi ce of the Mayor of London has encouraged institutions, such as insurance companies and pension funds, to invest in residential construction in order to kick-start projects, and this 44-storey scheme will use investment via M3 Capital Partners. Developed by Mace and Essential Living, the development will feature 462 units, 188 of which will be aff ordable. Work will begin on the site early next year and is scheduled for completion in 2017.

LandFRACKING GUIDANCE FOR LANDOWNERS The government has announced a package of benefi ts to help kick-start the UK’s shale gas industry, which include cutting tax on the profi ts from producing gas via hydraulic fracturing (fracking) to just 30%. Also, communities near extraction sites will be paid at least £100,000 per well, and will receive a percentage of revenues when extraction commences. However, so far, no specifi c incentives are planned for landowners. ‘If approached by a fracking company, landowners should engage a professional to represent their land interests,’ advises Christopher Smith FRICS, partner at Knight Frank. ‘Issues will include the access arrangements, use of land for the drill head and associated equipment, and pipelines for water, gas or oil.’ Read the guidance at: bit.ly/UK_shale_gas.

CommercialPRICE REPORT FOR LOGISTICS SPACE China has the world’s three least expensive markets for logistics space: Wuhan, Shenyang and Chengdu, fi nds DTZ’s Global Occupancy Costs Logistics 2013 report. By contrast, other Asian markets, such as Hong Kong and Singapore, rank in the fi ve most expensive locations. In Europe, London Heathrow remains the most expensive market globally, while secondary cities including Marseille and Antwerp are beginning to off er more aff ordable space. The fi ve-year outlook for Europe is for a 1.4% annual average increase in occupancy costs. However, there are marked diff erences between individual markets.

This volume highlights the role of solar power in a low-carbon and sustainable energy system, particularly in city regions.ISBN: 978-3868592733 RRP £30

Explores the concept of a ‘black swan’: a highly improbable event that has a massive impact and is often inappropriately rationalised afterwards.ISBN: 978-0141034591 RRP £9.99

This book considers the mix of technology, politics, psychology and economics required for the world to give up its oil dependency. ISBN: 978-1781250457 RRP £9.99

A straightforward guide to oil, from its history and chemistry to refi ning and transportation, plus how prices are determined in global wholesale markets.ISBN: 978-0982039205 RRP £19.95

BOOKS

10.13 // MODUS 11

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Top officeTurner & Townsend has been appointed to project manage the construction of a £20m offi ce building in the Dalmarnock area of Glasgow. Located on vacant land on the banks of the River Clyde, the fi ve-storey Grade-A offi ce will provide space for around 900 people.

Oil mergeCostain will launch a new oil and gas production and exploration services business after acquiring engineering fi rm EPC Off shore for £9.6m. The fi rm plans to form Costain Upstream by merging EPC Off shore with its existing oil and gas support services business, Clerk Maxwell.

Cautious marketSince the beginning of the year, slower economic growth in India has led to a decline in offi ce expansion, says a report by Cushman & Wakefi eld. As companies have become more cautious, offi ce markets in India registered a 15% decline on total net absorption across the top eight cities in the fi rst half of 2013, compared to the same period in 2012.

Talent driveAs part of a response to sustained higher activity in the industry, e.surv chartered surveyors has recruited 53 new building surveying graduates, and provided each with a Mini Cooper as part of their remuneration package. The graduates will now undertake a year-long development programme with a subsequent placement as a qualifi ed valuer.

Insight

WHY GREEN CITIES ARE WEALTHIER AND HEALTHIERClaire Bonham-Carter AECOM

This year, 110 cities around the world responded to the Carbon Disclosure Project (CDP) global cities survey. The

results provide strong evidence that climate-change action strategies are helping to increase resiliency, improve the health of citizens and support long-term economic competitiveness. As a goal for a policy directive, greenhouse-gas (GHG) reduction can be a hard sell for city mayors, despite signifi cant evidence that our climate is changing – 88 of the cities cited temperature increase and heatwaves as a climate-change impact that’s being felt right now. However, a story about improving health and increasing economic competitiveness is much more compelling.

The analysis that AECOM carried out for CDP compared the economic output of cities per tonne of GHG emitted to show which regions are, essentially, creating wealth most efficiently. The results showed that the European cities reporting produced more than double the amount of GDP per tonne of GHG emitted compared to North American cities – evidence that decreasing emissions does not make a city economically less competitive. In fact, the CDP Wealthier, Healthier Cities report,

based on the survey results, fi nds that 91% of the reporting cities think climate-change action presents an economic opportunity – for example, through the development of new industries, investment in infrastructure or increased attention to environmental concerns. As cities plan and implement strategies to combat climate-change risks, they not only ensure the protection of citizens, but also create a safer place for businesses. The improved health of citizens is another unlikely benefit of climate-change action: of the various mitigation activities reported, 55% directly or indirectly encourage cycling and walking, which leads to fi tter people and an improvement in air quality.

The survey data and report can be used by cities as a positive message to their constituencies regarding climate-action planning. It can also help with private investment in cities by encouraging companies to relocate to places that provide an attractive, healthy environment for their workers as well as being resilient to future climate change.

CLAIRE BONHAM-CARTER is AECOM’s director of sustainable development. cdpcities2013.net

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WORK TOGETHERDayle Bayliss MRICS, Dayle Bayliss Associates ‘I built my consultancy on the basis of partnership working, and it’s the foundation behind everything we do. You can’t possibly know and be amazing at everything – but by asking advice and working with others, you can build a team that can satisfy your clients’ needs and bring their ideas to life.’

What’s your business tip? Email [email protected].

12 r ics.org

GEOGRAPHICAL SPLIT: THE UK’S OIL AND GAS INDUSTRY WORKFORCE

Central North Sea 43.68% Multiple sectors 25.92% Northern North Sea 13.95%

Southern North Sea 10.4% West of Shetland 4.61% Morecombe Bay 1.44%


01.11 // MODUS 09

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What if //

MODUS_Oct13_P14-19_$200 a barrel_v5.indd 14 10/09/2013 14:18

reliable access to Petrol and diesel underPins every facet of the global economy. so what would

haPPen if a catastroPhe caused oil Prices to double? Katie PucKett investigates

illustration by Jörn Kaspuhl

The world aT$200 per barrel


What if //

In 2012, the UK consumed 1, 468, 000 barrels of oil every day, according to BP. So what would happen if the price of those barrels – currently just above the US$110 (£70) mark – were to suddenly double, or even triple? This scenario is not beyond the realms of possibility. Oil prices peaked at US$145

in July 2008, and given the scale of our oil dependency, surely it merits serious consideration. Although hydraulic fracturing (fracking) may appear to have averted an imminent peak in the oil supply, the majority of proven reserves, and many supply lines, remain located in some of the world’s most volatile regions.

Oil plays a role in practically every aspect of modern life – meaning that a major price rise would certainly have far-reaching repercussions. A study by US economist James Hamilton found that spikes in oil prices preceded 10 of the 11 recessions experienced in the US since the Second World War. And in 2007 and 2008, UK households struggled as 5% infl ation drove up the cost of transport, energy and consumer goods, while record oil prices were a key factor in the food price crisis that sparked riots across the world. A dramatic rise in oil price would likely affect business decisions across the fi elds of land, construction and property, from the economic viability of property development, food crops and major infrastructure renewal, to how we build and heat our homes. So what would the world look like at US$200 a barrel?

Nassim Nicholas Taleb’s ‘black swan theory’ cautions us not to underestimate the role of unforeseeable but catastrophic events in shaping history. A sudden doubling in the price of oil may seem far-fetched, but then so did the prospect of an aeroplane crashing into the World Trade Center in New York on 11 September, 2001. Taleb’s book inspired the Foresight + Innovation team at Arup to develop a set of ‘wild cards’ to help clients plan for the unthinkable. One such scenario is a rise in oil prices all the way to US$300, following a tanker collision in the Strait of Hormuz blocking the only shipping route in and out of the Persian Gulf, triggering a chain reaction of civil unrest throughout the

region. ‘The fi rst thing to say about oil is that it’s extremely complex to analyse the impact of a price rise,’ says Josef Hargrave, senior Foresight + Innovation consultant. ‘It’s not necessarily a question of oil, but of mobility. Farming uses quite a bit of fuel for tractors, but the more interesting point is the impact it would have on shipping costs, as global food systems are very dependent on products travelling large distances. As a result, the price of meat could become sky-high, for example, which might change what people can afford to eat.’ Neither can oil be considered in isolation, Hargrave points out. While few countries actually burn it to power their electricity grids, the price of alternative fuels, such as gas, tends to mirror oil trends. So in a US$200-a-barrel world, we can expect the cost of gas to rise, too.

Farming, particularly, would be profoundly affected. ‘Agriculture is a very resource-intensive industry, particularly in the West,’ says Professor Bob Rees, head of the Carbon Management Centre at SRUC (Scotland’s Rural College), part of the Centre of Excellence for UK Farming. ‘In the UK, it’s very dependent on inputs of energy to support production, and you can see a clear relationship between the price of oil and the price of agricultural commodities, such as grain.’ And it’s not just tractors – grain dryers and other agricultural machinery also run on red diesel: ‘Pretty much everything that goes over the land requires something to drive it,’ says Andrew Wraith, head of agribusiness at Savills. ‘If you look back 10 or 12 years, oil prices have really hit the cost base. In 2000, red diesel was 9-10p per litre, and now

‘It’s not necessarily a question of oil, but of mobility. Farming uses quite a bit of fuel, but the more interesting point is the impact it would have on shipping costs and global food systems’


10.13 // MODUS 17

OIL AND LAND VALUESIAN BAILEY head of rural research at Savills

‘If oil prices go up, infl ation goes up – and so will land values. According to our research, land prices track oil pretty closely – there’s a 0.7 correlation. Agriculture is energy hungry, and oil is fairly key, so if oil prices go up, farming marginal land could become unviable. As a result, people might only farm the best land, where high returns are possible to cover the higher costs of fertiliser and fuel, and it’s likely that the overall supply of commodities such as grain would fall, pushing up the global commodity price. This would have a knock-on eff ect on feed prices – and if it becomes more expensive to feed livestock, food prices would probably also increase. Furthermore, there could be a rise in the demand for biofuels, meaning that food and fuel would have to compete for land. However, biofuel from crops such as oil seed rape are only commercially viable at the moment because they are so highly subsidised. If you take that away, they become more expensive than oil, and the renewable fuel you produce is not enough to off set the fuel you’ve put in.’

OIL AND CONSTRUCTION COSTSJOHN GRAHAM MRICS partner at EC Harris

‘Oil is used in the manufacture of many construction materials and, at the moment, I don’t think there are many alternatives. Substituting asphalt or plastics for other materials is not as simple as steel versus concrete, so further oil-price increases will inevitably lead to an increase in construction costs, too, which could aff ect the amount of infrastructure and highways works undertaken by local authorities and utility companies. Furthermore, importing materials to the UK could become much more expensive as transport costs rise, while countries where fuel consumption is much lower will become even more competitive – which could both potentially have a negative impact on our own exports. However, it would take quite a signifi cant increase in the cost of transporting construction materials from overseas to off set the considerably higher labour and construction costs in the UK compared to regions such as Eastern Europe and Asia – which, again, makes the UK less competitive in the global marketplace.’

OIL AND THE PROPERTY SECTORJON LOVELL global real estate sustainability leader at Deloitte

‘We’re already seeing the impact of future price projections on the mindsets of commercial occupiers. We calculated that one of our global retailer clients will spend £400m more on energy over a 10-year period, for example – taking into account future price rises and carbon taxes. When you put it in those terms, the CFO suddenly realises that it represents a major hit on the bottom line, and companies start asking what they can do within their portfolios and supply chains to hedge against anticipated price increases. Energy performance will become increasingly central to real estate value: already, ineffi cient properties are being subjected to an accelerated form of depreciation, and a sharp increase in oil prices would only amplify that eff ect. One of the principal responses to the global energy issue has to be improved effi ciency: it’s estimated that we lose or waste 89 of every 100 units of energy that enter the system, which means our system is only 11% effi cient. You would only have to turn that effi ciency dial up a few notches to make a signifi cant impact.’

it’s nearer 65p. Before, it wasn’t an insignifi cant cost, but it wasn’t the invoice you dreaded on a farm. Now, it’s a signifi cant and worrying cost of any crop.’ This has already driven greater fuel effi ciency in farm vehicles and more effi cient forms of cultivation, and farmers have begun to invest in sources of renewable energy – for example, installing solar panels to dry crops. Wraith suggests that a further rise in oil prices could accelerate this trend.

In the UK, intensive farming is heavily reliant on nitrogen-based fertilisers, which are produced using large amounts of natural gas, so their price tends to rise in direct proportion to energy. Further price increases would hit production levels and make the food that is produced more expensive. What’s more, rising oil prices would also make biofuel crops more profi table, resulting in a ‘double-whammy’ on both food prices and supply, explains Rees. ‘In the US, they’ve built large refi neries to produce biodiesel, which have a large demand for grain. So you have competition between feeding people and feeding the refi neries.’

But there is a lot that farmers could do to use energy and fertilisers more efficiently, which would also reduce greenhouse gas emissions, argues Rees. Organic farming, for example, relies on planting nitrogen-fi xing crops, such as peas and beans, in alternate years, rather than artifi cial fertilisers. Rees’ research is intended to help the industry move to lower-carbon forms of production, but in the short term, farming remains largely unprepared for another oil price shock: ‘There are things that we can do to become less dependent, but it is going to take some time. Part of the problem is that we’ve been used to low energy prices and there hasn’t been an incentive to do anything.’

THE RIPPLE EFFECTIf the price of oil were to suddenly soar, higher food prices would be only one of the extra costs facing UK households. The impact would also be felt immediately at the petrol pump, while an extended rise could have profound consequences for property values and commercial and residential development. ‘If it’s more diffi cult for people to get to their place of work, businesses may be forced to operate in a more dispersed way,’ suggests Johnny Dunford MRICS, Global Commercial Property Director at RICS. ‘Or it may have the opposite effect, and force people to live closer to their place of work.’ >>


18 r ics.org

What if //

OIL PRICES (1990-2012)

There are many different varieties and grades of crude oil, so benchmarks are used as a reference point in oil pricing:

West Texas Intermediate (WTI) is a light, sweet crude used as a US benchmark

Brent is a sweet, light North Sea crude generally accepted to be the world benchmark, but more specifically for Europe

Dubai is a heavy, sour crude used as a benchmark for an Asia price

‘Sweet’ crude has a sulphur content of less than 0.5%; more than 0.5% is said to be ‘sour’.

Where people must travel, there are still few viable alternatives to oil, argues Phil Armstrong FRICS, partner heading transport, industrial and energy, including renewables, at Gardiner & Theobald. ‘It’s becoming more expensive to drive, but it’s still the only way to get from A to B in most places. You can get the train to work, but you still have to get to the station first. There’s an assumption that increased fuel prices will get people off the roads, but trains still run on diesel because it costs a fortune to electrify the line, and the network’s already creaking under the strain.’

Personal mobility is just the tip of the iceberg. The internet may liberate some of us from the commute to work, but we still need food in our local shops, and most freight still travels by road in diesel-powered lorries. ‘We’ve been using the internal combustion engine for 200 years, and we haven’t really come up with anything different,’ Armstrong points out. Fuel cell technology remains immature, while most electric cars are still limited to a maximum range of around 100 miles before they need a lengthy recharge. And as for aviation, although biofuels were approved for commercial use in 2011, there are still many technical and supply issues to resolve.

Even if alternatives to fossil fuels were sufficiently advanced, it would take a lot of oil to make the transition. Many construction materials are derived from oil, including asphalt, plastics and paints, while products such as glass, ceramics and steel consume large amounts of energy in their manufacture. Aggregates for cement and concrete must be excavated using diesel-powered machinery, and bricks are baked in high-energy kilns. ‘And you can’t build anything without breaking the ground,’ says Simon Storer, an independent construction consultant. In a US$200- or even US$300-barrel world, building anything would be a lot

more expensive, but, he adds, ‘infrastructure is probably the most capital- and energy-intensive of all the construction sectors.’ However, although a sudden spike in oil price would certainly focus government minds on decarbonising the UK’s infrastructure, by then it may be too late: ‘Major infrastructure projects usually take far too long to implement, so we tend to always do what we needed yesterday, not what we need for tomorrow,’ says Storer. ‘By the time High Speed 2 is completed in 2025, is it still going to be the right thing? It’s almost retrospective in that respect.’

Meanwhile, the consequences for the UK’s own energy-hungry manufacturing industry could be disastrous. With labour costs and regulatory overheads already much higher than rival producers in Eastern Europe or Asia, the industry would face an even greater struggle to remain competitive if fuel costs were to double. ‘Manufacturers in the UK are already very efficient – they have to be, because their bottom line is impacted by taxes and levies, such as the EU Emissions Trading Scheme,’ explains Storer. ‘Heavy-side products can be imported from elsewhere, but it’s not as easy as importing

‘We import a lot of products, so perhaps we could start to boost our domestic manufacturing industry to create more products at home, as other countries in the euro have done’

Sources: guardian.co.uk, BP Statistical

Review of World Energy 20131990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$120

$110

$100

$90

$80

$70

$60

$50

$40

$30

$20

$10

$0

September 2001The 9/11 terrorist

attacks cause oil

prices to plummet

to below US$20 per

barrel – but they

quickly recover

when no further

attacks occur and

crude oil deliveries

continue unabated

2000 Speculative buying

and tensions in the

Middle East push oil

prices to a 10-year

high, leading to fuel

protests and panic

buying throughout

Europe. Some petrol

stations in the UK

are forced to ration

fuel purchases

1997-8 The onset of the

financial crisis in

Asia sharply reduces

oil prices, as global

consumption falls

significantly short

of production

1990Iraq invades

Kuwait, halting

the production

of several million

barrels per day of

oil. However, OPEC

member countries

not involved decide

to increase their oil

supplies in order

to make up for the

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prices stabilise

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10.13 // MODUS 19

smaller, lighter materials. The cost of shipping raw materials would be a problem, and we’d be up against other countries such as China, which are sucking in imports.’ So perhaps manufacturers would just relocate elsewhere? ‘Very few major manufacturers are owned by UK companies now, so the decision wouldn’t be taken in London,’ Storer explains. ‘We’d have to compete with other places, such as South America, the Middle East and Asia.’

On the other hand, the UK government could offer tax incentives to help kick-start an industrial renaissance, suggests Sarah Davidson FRICS, head of corporate R&D at Gleeds. ‘The attractiveness of the UK very much depends on the tax regime. We import a lot of products, so perhaps we could start to boost our domestic manufacturing industry to create more products at home, as other countries in the euro have done before. We need to look after UK plc to ensure we can do business on a level playing field in a global context.’ The government could also attract oil companies to base their headquarters in the UK, capitalising on the domestic oil industry centred on Aberdeen, and spreading the benefits more widely. ‘If the UK were a more attractive place in which to do business, would these companies really want to put their headquarters in countries like Angola?’ asks Davidson.

One undeniably positive angle on a US$200-a-barrel world is that global carbon emissions would surely drop, perhaps saving us from an even worse fate in the longer term. But given the scale of our dependency on oil right now, the immediate reality would be very painful indeed. Is it too unlikely to contemplate seriously? Or is our vulnerability so glaring that we cannot afford not to do more to wean ourselves off? Because, as EC Harris partner John Graham MRICS points out: ‘It doesn’t matter how much oil costs – it will run out eventually.’

:where are oil prices headed?Just a few years ago, many believed that ‘peak oil’ was nigh – the point from which global production would enter terminal decline and prices would soar as suppliers struggled to meet the growing demand. However, those fears have receded somewhat with the development of technologies such as fracking, which has opened up vast, previously unexploitable reservoirs of fossil-fuel energy. ‘If you look at long-term trends, the emergence of new technology always tends to keep oil prices in check,’ says Han Pin Hsi, global head of commodities research at Standard Chartered Bank. Deepwater drilling was extremely challenging 10 or 15 years ago, Hsi points out, but now it’s quite common, and the cost has dropped. ‘And with shale oil, we’re only talking about the US at this time – imagine the potential if the environmental issues were resolved, and fracking was extended to Europe and Asia. Over the longer term, we’re not expecting a significant rise in oil prices – in fact, we actually expect them to decline.’

Neither is demand expected to drive up prices. A drop in the West due to the recession and improved vehicle efficiency has offset the continuing growth in oil consumption from emerging economies. But also, the growth of emerging economies, such as China, Brazil and India, has slowed significantly, notes Simon Rubinsohn, Chief Economist at RICS: ‘Their growth will continue, but they won’t perform as well as they did over the previous decade,’ he says. ‘The idea that a surge in demand for energy would alone cause significant price increases is questionable. In fact, at the moment, I see little that’s going to be driving prices up,’ he adds. But predicting the future has never been an exact science, and there still remain plenty of unknowns.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

April 2010The Deepwater

Horizon oil rig

explosion in the Gulf

of Mexico causes

the biggest offshore

spill in US history

February 2011Oil prices soar due

to fear that unrest

in Libya could

spread elsewhere

October 2009The weak US dollar

and optimism over

global economic

recovery causes

oil prices to rise

December 2008Oil prices plummet

during 2009 as the

global recession

begins to bite

July 2008As the tensions

between Iran and

the West increase,

oil prices peak

July 2006Rapidly increasing

demand from

the emerging

economies such

as China and India

boost oil prices

August 2005Oil prices reach a

new record high

when Hurricane

Katrina destroys

pipelines and oil

rigs in the Gulf of

Mexico, forcing

the US to tap into

emergency reserves


20 r ics.org

oil: Where next?WHere Will We find Our Oil and gas Over tHe next decades? and WHat rOle can surveyOrs play in Helping tO unlOck neW reserves?Words by Roxane McMeeken

Oil has been described as a ‘sunset industry’: the future, we’re frequently told, will be powered by wind and waves, solar farms and geothermal

energy. But actually, the oil industry is in the midst of a boom, with record-high oil prices giving rise to a worldwide push to extract previously untouched reserves using cutting-edge technology. This means that oil will continue to be the world’s primary power source for decades to come, say industry insiders – however, the sector’s focus is shifting. Oil and gas companies are digging for fuel in new places, digging deeper in traditional locations and energetically pursuing the promise of ‘unconventional fuel’, such as shale gas. And all this activity has sparked a recruitment drive, including a high demand for RICS members.

A glance at the investment intentions of oil and gas companies hardly paints a picture of an industry in its dying days. Ernst & Young surveyed more than 1,600 of the sector’s executives worldwide for its May-October 2013 Global Capital Confidence Barometer report, and found that capital investment by the world’s oil and gas firms is due to rise by 8-10% in 2013. Although the price of gas >>

MODUS_Oct13_P20-25_Where next.v3.indd 20 10/09/2013 10:38

Oil and gas //

Oil workers on a derrick in Salym, Russia – one of many areas in Siberia currently being explored for their shale oil potential

Imag

e Ge

tty


has been in a long-term slump, the buoyancy of oil prices is also fuelling widespread investment in gas firms – which energy forecasts suggest is justified, as oil and gas will continue to be in demand for the foreseeable future. The US Energy Information Administration (EIA) projects world energy consumption will increase by 56% by 2040, with demand driven by emerging markets: according to the EIA, non-OECD countries will increase their consumption over the period by 90%, led by the fast-growing mega populations of India and China.

Most significant of the EIA’s forecasts is how the world’s rocketing demand for energy

22 r ics.org

Oil and gas //

Arctic oil What’s the potential? According to Ernst & Young, the Arctic could provide up to 20% of the world’s recoverable oil, and the large size of the fields in the Arctic makes them economical to develop. What’s the catch? The costs of setting up the infrastructure in such a remote location will be huge, and freezing temperatures and darkness for long periods present technical challenges. Also, if something goes wrong, spills have more severe implications as oil takes longer to disperse in very cold water, and as numerous countries own parts of the Arctic, cooperation could be difficult.Will it work? The rewards are so high that capital investment will definitely be found, but it will be a number of years before we see significant production.

will be supplied. Although it acknowledges that renewables and nuclear will play a growing role, EIA predicts that by 2040, fossil fuels will continue to supply 80% of demand. So where will the oil and gas come from? As the traditional sources become exhausted, the industry is being forced to turn to sources that are either technically or politically challenging – which it can currently afford to do because of the higher price of oil. The result is the creation of ‘new reserves’ – or newly viable sites – both in traditional oil and gas regions, and in brand-new regions for the industry, such as the deepwater sites in Brazil. The most talked-about hotspots, globally, are the deepwater sites in the South Atlantic, offshore reserves in Alaska, Greenland and Russia, and unconventional fuel in North America, such as shale gas oil.

The industry is also booming in the UK, where, on top of the high oil price, a more favourable tax regime introduced in the 2012 Budget is further encouraging investment. In the North Sea, more difficult-to-reach sites are being tackled, such as the Mariner and Bressay fields, which Norwegian oil company Statoil is spending billions of

A fleet of offshore oil drilling ships sink

exploration holes in the Beaufort Sea, canada, on the far edge of the Arctic

imag

e Co

rbis


10.13 // MODUS 23

Oil and gas //

RecRuitment dRiveAll this activity means that oil companies are looking for staff. Ernst & Young found that in April 2013, 54% of oil and gas companies planned to recruit in the next 12 months and, interestingly for RICS members, surveying skills are in particular demand. ‘The oil and gas business is essentially a massive construction project, so for surveyors with construction, project and commercial management experience, it’s a great playground,’ says Bill Sutherland MRICS, operations manager at Rider Hunt International.

Although the sector is seeking a wide range of surveying competencies, quantity surveyors are perhaps most in demand. ‘QSs are being sought out as they possess a number of the skills we need for constructing and running oil rigs, such as cost engineering, contracts engineering, preparing budgets and estimates, contracts management and claims management,’ explains Sutherland. Their expertise is needed for dismantling rigs as well, adds Esson: ‘Cost control is particularly important when you’re decommissioning, as neither the operator of the installation nor the taxpayer are getting any return for the work, so it needs to be done as economically as possible.’ And while you could argue that non-chartered surveyors can carry out some of these functions, Sutherland prefers to hire accredited professionals: ‘If someone’s chartered, you know they’ve reached a certain standard and they work to a code of ethics set by RICS, whereas non-professionals might not,’ he says.

Geomatics surveyors are increasingly sought-after, too. Richard Wylde FRICS is a global geodetic adviser at ExxonMobil: ‘There’s huge demand for the acquisition of spatial data, the positioning of which is done mainly through GPS,’ he says. ‘However, the majority of mapping is still required in local 2D geographic coordinate reference systems, so there’s a need for surveyors with geodetic knowledge to transform the >>

pounds developing. Meanwhile, basins to the West of Shetland, which were previously deemed too slow and expensive to exploit, are now of interest. Norman McLennan FRICS, global head of supply at Sasol Petroleum International, believes that this is very big news indeed: ‘The developments to the West of Shetland could be equal to a whole new North Sea,’ he says.

Mostly, these developments are being made possible by new technology, such as deepwater drilling and horizontal drilling. ‘We can now drill deeper and further, and no longer straight downwards only,’ explains Stephen Mckinlay, oil and gas management lead for Mott MacDonald’s cost consultancy business. ‘Also, we can use remotely operated vehicles, so we don’t have to send divers down and can now go into fields that we’ve known about since the 1960s, but that have always been too difficult to work.’ There are also decommissioning projects throughout the oil and gas world. According to Roger Esson, managing director of Aberdeen-based Walker Technical Resources, around £30bn will be spent in the North Sea alone on decommissioning over the next 30 years.

‘The oil and gas business is essentially a massive construction project, so for surveyors with construction, project and commercial management experience, it’s a great playground’

Deepwater oil What’s the potential? From the Arctic to Brazil, new technology is allowing us to drill deeper than ever before in offshore locations. ‘Deepwater oil has huge potential worldwide,’ says Norman McLennan FRICS, global head of supply at Sasol Petroleum International. ‘In the UK, the fields to the west of Shetland have enough oil and gas to last for decades.’ What’s the catch? Getting the infrastructure in place to access deepwater oil and gas is difficult and very expensive – which, says McLennan, will make it hard to channel capital investment into projects. Will it work? The exploration companies will make investment possible by working in consortiums, allowing them to spread risk between them – for example, the deepwater project at the Rosebank field in the Faroe-Shetland Channel, where Chevron has teamed up with Dong Energy, OMV and Statoil.


Oil and gas //

GPS data – and not many people have this knowledge.’ And as the oil industry increasingly looks to new locations or revisits existing sites that were mapped decades ago, the demand for geomatics experts grows.

As well as oil rigs, pipelines also require the expertise of surveyors. For 1,400-strong Canadian consultancy Focus, surveying pipelines is a major part of the business, and the firm now informs the construction, maintenance and improvement of pipelines throughout western Canada by capturing data via field visits or GIS (geographic information system) technology. The business is growing fast – in 2012, Focus hired 300 people and it still needs more. Steve Vickers MRICS, manager of laser scanning at Focus, says: ‘We had one position open for eight months in Canada. In the end, we recruited someone from Spain, and we’re currently recruiting from Portugal.’

Following the wider corporate trend of focusing on the core competencies, oil companies are using surveyors in new ways – especially for peripheral elements of their projects, which can extend way beyond energy infrastructure. Tim Goodson MRICS, senior consultant at Aecom, says that the majors are outsourcing a raft of competencies that surveyors are perfectly placed to handle, such as real estate management, programme management and value management. ‘Oil sector projects can involve masterplanning and large-scale residential projects, which means building surveyors and project managers are needed.’ The same goes for the roads, water treatment centres and even airports that may need to be built alongside oil rigs. Sam Preece, Aecom’s oil and gas business development director, adds that oil giants are outsourcing elements of risk management, too: ‘They’re asking companies such as Aecom to deliver risk management services to help them improve certainty and manage the flow of activity,’ he says.

Such is the demand for surveyors in the oil industry that there are not enough to go around. McLennan says this is not only down to the current growth in the sector, but also the ageing profile of its workforce: ‘Many people are in their 50s, so there’s a lack of resource in less senior roles, and a huge amount of staff only have 10 years or so left of working life.’ Sutherland adds that the skills shortage is partly a factor of the downturn of the past five years: ‘Before now, we had a long period of lower oil prices and declining activity, so there was less recruitment. In fact, for university leavers, oil is probably still not seen as attractive because we’re not recruiting enough.’

As a result, surveyors have their pick of both jobs and salaries. ‘The rates of pay are 25-100% more than for the same types of

role in construction,’ says Sutherland. And if you are willing to work in a high-risk location, you could earn even more: ‘In somewhere like Nigeria, for example, you could be looking at three times an average construction salary.’ Pay in oil and gas is on the rise, too. A 2013 salary guide published by recruitment agents Hays found that the average pay packet in the sector increased 8.5% compared to 2012. According to the guide, the average day rate for an intermediate-level employee in Northern Europe is £317, while senior staffers earn an average of £465 and managers £549.

But don’t expect a career in oil to be easy. You could find yourself working in a politically unstable country, such as Iraq, or facing major technical challenges. Wylde’s work in the northeast Caspian Sea is a case in point: here, the oil reservoirs are very deep,

Shale oil What’s the potential? The US currently produces around 7.5m barrels of crude oil a day (July 2013 estimate), and shale oil (also called tight oil) represents 27% of the nation’s oil production, according to geoscientist David Hughes, president of Global Sustainability Research Inc. The Energy Information Administration forecasts that shale oil production via hydraulic fracturing (fracking) in the US will peak in 2020 at 2.8m barrels a day – which would then represent 38% of total US production. What’s the catch? In the US, only two out of 21 areas producing shale oil – Eagle Ford in Texas and Bakken in North Dakota and Montana – account for 80% of the country’s total production. ‘This shows that high-productivity plays are rare,’ says Hughes. Moreover, the productivity of these two sites will decline rapidly: ‘The sweet spots are drilled first and then the attention turns to the more difficult areas, which require so much effort to work that the economic case rapidly goes downhill.’ Will it work? Despite the environmental concerns, it’s likely that shale will really take off worldwide. ‘Shale will certainly be important in the short term but it’s not a long-term solution,’ says Hughes.

‘Renewables and nuclear will play a growing role,

but by 2040, 80% of energy

demand will still be supplied by

fossil fuels’

24 r ics.org

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e Al

amy


Tar sandsWhat’s the potential? The vast majority of tar sands oil is imported into the US from Canada. According to geoscientist David Hughes, the fuel accounted for 24% of US oil imports in 2011 and more than half of Canadian oil production. ‘Tar sands are very low risk and we know exactly where they are,’ explains Hughes. What’s the catch? ‘It takes a great deal of investment and energy to mine and upgrade tar sands (also called oil sands) to turn it into synthetic oil,’ says Hughes. And the deeper you go, the higher the financial and environmental costs: with the upgrading process, even surface mineable resources require the oil price to be around US$100 per barrel in order to be financially justified, but actually, 80% of tar sand deposits are too deep to mine, and require even more energy- intensive methods to recover. Will it work? According to Hughes, tar sands provide high-cost, low-net- energy oil. And so, as the easier-to-reach resources are exhausted, we’ll see lower and lower profits, with an increasingly high level of environmental damage.

highly pressurised and have a high hydrogen sulphide content. What’s more, the water depth is quite shallow and subject to very rigid environmental protection because it contains the main breeding grounds for sturgeon, whose eggs are harvested and sold worldwide as caviar. ‘You’re not even allowed to pour a bottle of Evian water into the Caspian, so you have to be extremely careful,’ Wylde explains. Work can also be further complicated by changes in the wind direction, which can alter the water level by up to a metre, while the local climate means the lake is frozen for a third of the year, as well as being subjected to temperatures below -40oC in winter and above 40oC in summer.

Finally, few in the sector work close to their homes. ‘To have a long-term career in oil and gas, you have to be prepared to be internationally mobile and potentially work

away from home for many years,’ explains McLennan. However, most oil and gas surveyors believe that the challenges are worthwhile: ‘Working in this sector is hugely varied,’ says Sutherland. ‘You get to work in some fabulous places around the world, as well as some pretty grotty ones. My guys could be investigating a claim in Monaco one day, and then looking at a shipyard in Korea the next.’ But above all, the sector is dynamic. ‘It’s a really interesting place to work,’ says Wylde. ‘A lot is about to happen in the industry, and right now there is a golden opportunity for surveyors to get involved.’ Spurred along by new locations and a flurry of innovation, it seems the sun has far from set on the oil and gas sector.

10.13 // MODUS 25

syncrude aurora tar sand mine in alberta, Canada, which produces high-quality crude oil by mining, extracting and upgrading the bitumen contained in the vast athabasca deposit

Are you Working in the

oil And gAs sector?

We’d like to hear your views. Email editor@

ricsmodus.com


black gold ESSENTIAL FIGURES ON THE WORLD’S FAVOURITE FUEL

26 r ics.org

Includes crude oil, shale oil, oil sands and natural gas liquids (NGLs). Excludes liquid fuels from other sources such as biomass and coal derivatives*Proved reserves of oil are generally taken to be quantities that geological and engineering information indicates with reasonable certainty can be recovered in the future from

known reservoirs under existing economic and operating conditions. Reserves include gas condensate and natural gas liquids (NGLs), as well as crude oil.Source: BP Statistical Review of World Energy 2013

Share of Proved oil reServeS(Billion barrels, end of 2012)*

global Production (Million barrels per day, 2012)

global conSumPtion (Million barrels per day, 2012)

toP five oil reServeS (Billion barrels)

toP five ProducerS (Million barrels per day)

toP five conSumerS(Million barrels per day)

298 266 174 157 150

Venezuela

Canada

Saudi Ara

biaIra

n Ira

q

11.5 10.6 8.9 4.2 3.7

18.6 10.2 4.7 3.7 3.2

Saudi Ara

bia

US

US

Japan

Russia

China

China

India

Canada

Europe & Eurasia 140.8


North America 220.2

North America 15.5

North America 23.1

Asia Pacific 41.5

Asia Pacific 8.3

Africa 130.3

Africa 9.4

Africa 3.5

Middle East 807.7

Middle East 28.3

Middle East 8.4

South & Central America 6.5




World total

1,668.9

World total

89.8

OPEC controls

73% of the world’s oil reserves

Russia

Asia Pacific 29.8

World total

86.1

MODUS_Oct13_P26_Oil infoG.v4.indd 26 10/09/2013 11:46

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“ I always have my eye on the ball.”

AlanNHBC Building Control Surveyor and football coach

The trusted partner of The homebuilding indusTry

To find out more about the services we offer, visit www.nhbc.co.uk or call

0844 633 1000

It’s reassuring that people like Alan are

there at kick-off, working with your design

and technical teams and supporting you

in developing cost effective solutions to

comply with the Building Regulations.

As a football coach Alan knows the

value of teamwork to overcome the

challenges you face.

G313 08/13

G313_Modus Sept - PP - Alan football coach - RHP_v1.indd 1 30/08/2013 15:57MODUS_Oct13_P34-38_RHI_v3.indd 39 10/09/2013 12:47

The College of Estate Management (CEM) is the leading provider of supported distance learning for real estate and construction professionals.

We offer a range of Diplomas and Degrees at undergraduate and postgraduate level which are accredited or recognised by RICS.

Our supported distance learning gives you the fl exibility to fi t study around your life. Using our Virtual Learning Environment you’ll have everything you need (at your fi ngertips) to gain a respected qualifi cation.

learn today, lead tomorrow

www.cem.ac.uk

To fi nd out more call 0800 019 9697 or email [email protected]

“ My qualifi cation has enhanced my depth of knowledge and skills within the industry. I believe, due to the knowledge I have gained from this course, I have been able to deliver innovative solutions to client problems and, more so, to think outside the box and recognise the bigger picture.

CEM has a long standing relationship with the RICS and this complimented perfectly with my long term goals.

In terms of work opportunities, my qualifi cation has given me the opportunity to work internationally and within major client organisations.”

Ronald LewisMBA Real Estate and Construction Management, Associate Director, Faithful+Gould

Advance your careerwith a RICS Accredited course

24521-Modus-FullPage-160813.indd 1 20/08/2013 09:57MODUS_Oct13_P28-29_Law advice.indd 28 10/09/2013 11:49

10.13 // MODUS 29

Energy-effi ciency improvements to a property without the need for up-front payment. On the face of it, the UK’s government-backed Green Deal is an incredibly powerful incentive – but as usual, getting the best out of it depends entirely on the gritty details. Here are a few that landlords and tenants should know before they move forward.

PAY AS YOU SAVEFor fi nance to be available, the proposed energy-effi ciency improvements need to pay for themselves through resulting savings on gas and electricity bills. Both owners and occupiers can take out Green Deal fi nance, but it should be noted that the charge is attached to the property’s energy bill, rather than to the party taking out the plan – meaning that it effectively binds the property and any successors in title to the party who accepted the funding.

Since the scheme started in January, it’s probably fair to say that reaction and take-up has been underwhelming. Statistics released in June revealed that fewer than 250 households had taken up the Green Deal, and only four had signed fi nance agreements (fi gures for commercial take-up have not been released, but we can assume they’ve not been stellar). Updated fi gures in July – 270 households and 36 signed fi nance agreements – showed some progress, but did not alter the overall picture of the level of success.

Furthermore, the European Commission (EC) announced on 21 February that it will refer the UK to the European Court of Justice (ECJ) over the reduced VAT rate for the supply and installation of energy-saving materials.

If the ECJ fi nds for the EC, the UK will have to increase the VAT rate from 5% to 20%, which is likely to make many potential Green Deal plans uneconomic.

INVESTMENT PROPERTYThe fact that the Green Deal binds the property and successors in title is likely to

cause concern to owners of investment property in terms of attractiveness to potential purchasers and funders. Before taking on Green Deal fi nance, a property owner would need to be confi dent that a future purchaser, and any funder, would be happy to inherit this liability. And, when considering properties that an owner intends to let to occupiers – including the vast majority of commercial property – the fact that the landlord will currently be liable for void periods when Green Deal interest cannot be

re-charged via service charges is a huge consideration. At present, the Green Deal continues to be payable even if no gas or electricity is being consumed at the premises – however, an alternative approach for dealing with this situation is being considered.

Depending on the terms of the lease, landlords may be able to refuse to consent to alterations proposed by a tenant under the Green Deal. However, from 1 April 2016 at the latest, landlords of private rented property will not be able to refuse consent, whatever the terms of the lease. Currently, there is no similar proposal in place for commercial property, meaning that the terms of the lease – and existing statutory provisions regarding alterations and improvements generally – will prevail. In many commercial properties, such as a modern shopping centre or offi ce building, matters of practicality and reality will often prevent tenants from carrying out qualifying improvements and, therefore, burdening the property with Green Deal fi nance – for example, where the tenant does not pay the utility bill. However, in many cases, there will remain a risk that a tenant could potentially improve energy effi ciency through their own works, unless the lease expressly prohibits this.

As yet, the Green Deal is still in its very early days, with modest take-up nationally. However, as more landlords and tenants take advantage, a market position between both parties will inevitably develop. Another uncertain area is how the attachment of finance schemes to properties will affect investor behaviour. It’s not unlikely, for example, that some landlords will begin to include absolute prohibitions in their leases to tenants carrying out energy-effi ciency works, in order to ensure that these do not encumber the property in the future.

NATHAN REES is a partner and SOPHIE WILKINSON is an associate at law fi rm Shoosmiths. shoosmiths.co.uk

THE FACT THAT THE GREEN DEAL BINDS THE PROPERTY AND SUCCESSORS IN TITLE WILL CAUSE CONCERN

Illus

trat

ion

Borja

Bon

aque

Law advice //

The Green Deal:

THE STORY SO FARWords by Nathan Rees and Sophie Wilkinson

The College of Estate Management (CEM) is the leading provider of supported distance learning for real estate and construction professionals.

We offer a range of Diplomas and Degrees at undergraduate and postgraduate level which are accredited or recognised by RICS.

Our supported distance learning gives you the fl exibility to fi t study around your life. Using our Virtual Learning Environment you’ll have everything you need (at your fi ngertips) to gain a respected qualifi cation.

learn today, lead tomorrow

www.cem.ac.uk

To fi nd out more call 0800 019 9697 or email [email protected]

“ My qualifi cation has enhanced my depth of knowledge and skills within the industry. I believe, due to the knowledge I have gained from this course, I have been able to deliver innovative solutions to client problems and, more so, to think outside the box and recognise the bigger picture.

CEM has a long standing relationship with the RICS and this complimented perfectly with my long term goals.

In terms of work opportunities, my qualifi cation has given me the opportunity to work internationally and within major client organisations.”

Ronald LewisMBA Real Estate and Construction Management, Associate Director, Faithful+Gould

Advance your careerwith a RICS Accredited course

24521-Modus-FullPage-160813.indd 1 20/08/2013 09:57 MODUS_Oct13_P28-29_Law advice.F1.indd 29 12/09/2013 12:28

30 r ics.org

biofuels 101Biofuels fall into two main

categories: bioethanol, which is made by fermenting sugar

or starch crops; and biodiesel, produced from vegetable oils

derived from oilseed rape, palm or soya beans. It’s estimated

that around 1% of the world’s arable crops are used in the

production of biofuels: about 5.7% of global grain production

(3.7% netting out byproducts) and 10% of global vegetable oil.

Biofuels are usually blended with conventional transport

fuels, and Europe, the US and Brazil consume around 80%

of the total global output

In 1925, Henry Ford told a New York Times reporter: ‘The fuel of the future is going to come from fruit like that sumac out by the road, or from apples, weeds, sawdust – almost anything.’ Today, with an

estimated 1% of arable crops being used for biofuel production, it looks like he had a point. But, as biofuels stand accused of jeopardising food production and natural ecosystems, could Ford have foreseen the controversy that would dog the industry?

If the past decade has seen a boom in biofuels, the industry may now be experiencing something of a backlash. July 2013 saw the European Parliament announce a cap of 5.5% on the contribution that biofuels can make towards the EU’s target of 10% renewable transport fuels by 2020. Traditionally, the EU has taken an enthusiastic stance on biofuels: in 2011, for example, an estimated €9.3bn-€10.7bn (£8bn-£9.2bn) was spent on biofuel subsidies. But a combination of scientific research and lobbying by non-governmental organisations, following the growing

evidence that demand for biofuel crops leads to direct and indirect land-use changes, has prompted the EU to reduce its reliance on first-generation biofuels. Instead, the proposed amendments to the Renewable Energy and Fuel Quality Directives aim to encourage the development of next-generation cellulosic biofuels, which are produced from waste, agricultural residues and even algae.

With the exception of sugarcane grown for bioethanol in Brazil, which is widely regarded as producing the most efficient conversion of crop to energy, the conversion rate of most biofuels is modest, explains Mark Griffiths MRICS, senior associate at Carter Jonas: ‘The reality is that you have to grow a huge acreage in order to make a significant contribution to substituting for petroleum,’ he says. Furthermore, for biofuels to be carbon-neutral, the crops they’re made from must consume the same amount of carbon dioxide as the resulting fuel releases. But critics, such as chemist Hartmut Michel, a Nobel laureate, argue that the amount of energy produced is only marginally more than the amount invested in the production of biofuels – once you take into account fertilisers, crop harvesting, transportation and processing. Even if the next generation of biofuels is more efficient, Michel calculates the current standard will only double – and it would still take all the agricultural land in Germany to produce enough biofuels to replace just 20% of the country’s fuel consumption.

Another argument is that, despite some byproducts of biofuel production becoming cattle feed, a large acreage of arable production is now going into the energy chain instead of the food chain. ‘The primary difficulty of trying to replace subterranean energy resources such as oil and gas with surface resources is that it’s land-hungry and you have to displace something else,’ explains Griffiths. This displacement, where land is cleared and planted elsewhere to make up for missing food crops, is typically referred to as indirect land-use change (ILUC). The Gallagher Report, published in 2008, >>

The oil

farmBiofuels have answered a market

need for an alternative to petrol and diesel – But how have they affected

gloBal land use? GeorGe bull explores the conflict of food versus fuel

illustration by Vesa sammalisto

MODUS_Oct13_P30-33_Biofuels.v4.indd 30 10/09/2013 11:57

10.13 // MODUS 31

Biofuels //


Latest OECD figures estimate

global demand for biofuels will

more than double by 2020

32 r ics.org

:Valuing unregistered landIn 2012, RICS commissioned a study into how different types of land tenure affect values. Funded by the RICS Research Trust and UN Habitat Global Land Tool Network, staff from Mombasa Polytechnic University College and the University of Nairobi undertook valuation of unregistered land in Kenya. The study found that only 30% of respondents possessed documentary proof of land ownership, while 88% could not ascribe values to their properties. During a one-day workshop, Kenyan valuers were asked what the way forward should be: it was suggested that a policy-based approach was needed to assist in valuing unregistered land, and that this could be the first step towards developing continent-wide standards with the support of the African Union Land Policy Programme. Read the report at rics.org/research.

which considers the impact of biofuel production, found: ‘The displacement of existing agricultural production due to biofuel demand is accelerating land-use change and, if left unchecked, will reduce biodiversity, and may even cause greenhouse gas emissions rather than savings.’ To address this concern, the EU policy amendments originally proposed to make it mandatory for biofuel producers to include emissions from ILUC. However, following protestations from producers that the science around ILUC calculations is still in its infancy, ILUC factors will not be included for now. But considering that the inclusion of ILUC data could mean that some biofuels would no longer meet the criteria for renewable fuels – and would, therefore, lose out on subsidies – this will remain a controversial topic.

Competing for landA report by international non-profit organisation GRAIN, published in February this year, sets out the potential scale of the ILUC problem. In 2008, the EU imported 41% of its biofuel needs – and, even with the 5.5% cap, at current yield levels it would require more than 21m hectares (the entire area of arable land in Italy and Spain) to meet the

2020 target of 10% renewable transport fuel. As a result, the report suggests that an increasing share of biofuel crops will need to come from elsewhere. Cheap palm oil is the obvious substitute: palm oil plantations in the tropics yield four times more biodiesel per hectare than European oilseed crops – but even here, 5.5m hectares would be required to meet the 2020 demand, which is akin to creating 12 new companies the size of the world’s current largest palm oil producer.

However, Julia Tomei, research associate at the UCL Energy Institute, argues that it’s not always easy to establish causal links between biofuels and land-use change. ‘Biofuels have been blamed for land-grabbing, and it’s likely they are part of that picture – particularly in Africa, where the jatropha boom really took off – but they are only one element of a complex commodities picture,’ she explains. ‘Increasingly, biofuels refer to flexible crops, such as sugarcane, palm oil and maize, and these feedstocks have multiple markets.’

For a short time in the mid-2000s, jatropha was the poster-boy for biofuels. Held up as a miracle crop that could be grown on marginal lands, while still being plentiful in oil, it attracted widespread investment. However, it soon materialised that in order to produce high yields, jatropha, like any commodity crop, needed good soil, water and fertilisers – but not before several million hectares of alleged land-grabs had taken place. By December 2012, 130 areas totalling 9m hectares had been seized for jatropha production, according to GRAIN, which also reports that between 2002 and 2012, 17m hectares were bought around the world in 293 reported land-grabs, where the stated intention of the investors was the production of crop biofuels.

However, biofuels aren’t always to blame. In Brazil, large-scale farming of soya bean – a major biodiesel feedstock – has been criticised for its effects on wildlife-rich areas

Biofuels //


10.13 // MODUS 33

such as the Amazon rainforest. But in fact, here the main proponent of land-use change is cattle grazing and logging for high-quality timber, says Braulio Pikman, partner at global sustainability consultancy Environmental Resources Management. As a result, Pikman explains, the main aim now is to increase productivity from existing land used for biofuels: ‘This is partly because economic growth has driven up land prices, but also because most producers want international certificates now, to show they are acting sustainably and not causing deforestation.’

Meanwhile, in the UK, crop biofuels are providing farmers with an additional market for feed crops that they would typically grow as part of their rotation, such as oilseed rape. But just how much of UK arable land is used for growing biofuel crops rather than food? The latest statistics published by Defra indicate that in 2010 around 97,000 hectares were used for biofuels, with 1% of the oilseed rape crop going into biodiesel, and 4% of wheat and 11% of sugar going into bioethanol production. That’s just 1.7% of the total UK arable area.

paying the rentDespite these seemingly modest figures, Jason Beedell MRICS, partner and head of research at Smiths Gore, says there is evidence to suggest that farm rents have been rising for growing wheat and oilseed rape – whether for food or biofuel – or maize for Anaerobic Digestion (AD) plants. ‘This is partly because you’ve got some really good farmers who are looking to expand and are, therefore, competing hard for the land, but also because in places where there is a high concentration of AD plants, people have been renting land to grow crops to fuel the plants.’ In East Anglia, for example, there are a significant number of AD plants that are either already constructed or in the pipeline, explains Richard Means, a farming consultant at Strutt & Parker. ‘One of the larger companies we advise, Pretoria Energy, could require 9,700 hectares of maize when it gets all of its AD plants up and running, while another local business could require anything up to 6,500 hectares. Suddenly, you’re looking at 16,000 hectares for maize production for biofuels in a relatively tight area, which is significant.’

James Mills, combinable crops adviser at the National Farmers Union (NFU), says that

although trends in biofuels have caused conflicts of interest between landowners and tenant farmers, the additional finance stream that biofuels provide helps farmers to ride out volatility in the markets and should be seen as a positive. However, a report published in 2011 by 10 agencies – including the World Bank and the Food and Agriculture Organization of the United Nations (FAO) – urged G20 leaders to eliminate government subsidies for biofuels to help reduce volatility in food prices.

So what does the NFU make of claims that crop biofuels increase the cost of food by keeping commodity prices higher than they might otherwise have been? ‘We refute that biofuels play as large a role in driving up food prices as some groups would attribute to them,’ says Mills. ‘In August, the FAO reported that food inflation prices had fallen over the preceding three months, with a 2% fall in July alone, at the same time as biofuels production has continued. Other factors, such as the drought in the US last year, and Russia’s 2008 ban on grain exports, are the real drivers for market price of raw commodities.’

As competition for land becomes more intense, such claims are likely to be put to the test. The latest OECD figures estimate that global demand for biofuels will more than double to 171.6bn litres by 2020, which could require between 35m and 166m hectares of additional crop land at current production levels. At the same time, it’s estimated that demand for food will increase by 70-100% by 2050. And since people generally tend to eat more meat as the standard of living rises – which requires more grain to feed more cattle, pigs and chickens – it’s clear that there are potentially huge conflicts of interest on the horizon.

But determining the extent to which crop biofuels affect food prices or land-use change is not easy. Global commodity markets are complex, and it’s likely that biofuels are only one factor among many driving competition for land. What is clear, however,

is that first-generation biofuels are politically out of favour with

their biggest importer, so we should expect to see a decisive shift in incentives towards a new wave of more sustainable biofuels produced from non-food sources – although

that transition process may be a challenge.

What’s your vieW

on biofuels? Email editor@

ricsmodus.com or tweet

@modusmag

:biofuel in the uK

neil gladWin friCs rural director at Chesterton humberts‘The uplift in global cereal price has rather swamped the biofuels movement – at least here in the South West, where there is more emphasis on the production of feed to serve the relatively buoyant livestock sectors. That will probably change following a predicted fall in corn prices and a rehike in fuel costs when the US and Russia have a bumper harvest, but for now, biofuels don’t seem to be a particular driver of land price.’

gerard smith mriCs partner at lacy scott & Knight‘I struggle to see evidence in the Suffolk area of Anaerobic Digestion (AD) plants driving up rents for tenant farmers. I do have clients who are looking to build AD plants to take the byproduct from food production and green waste, but none of them are considering turning over their whole arable farm for maize production to feed an AD plant.’

Charles CoWap mriCs principal lecturer at harper adams university‘One of the ecological problems with the crops used in the production of biofuels, such as maize and sugar beet, is that they are harvested later in the year, and therefore involve a lot of soil disturbance and can affect soil compaction if not managed carefully.’


Mark Eves, manager of commercial tulip grower PS & JE Ward, in one of the company’s biomass- heated glasshouses

Turnup The

heaTthE rEnEWablE hEat incEntivE iS

dESignEd to hElP buSinESSES and ProPErty oWnErS to SWitch to loW-carbon hEating SyStEMS.

but What financial rEturnS can itS uSErS ExPEct?

Words by Brendon Hooper Photographs by Victoria Birkinshaw

34 r ics.org

Belmont Nurseries in East Anglia is home to PS & JE Ward, one of the UK’s largest flower-growing businesses, and the only commercially viable tulip grower in the country. But with 21 large glasshouses,

high heating costs were becoming a concern: ‘We must have been spending something like £115,000 per year to heat our glasshouses, using oil burners on medium fuel oil,’ recalls manager Mark Eves. ‘This used to be a relatively cheap fuel 20 years ago, but as oil prices went up, it became a hugely expensive commodity in our business.’ However, last year Belmont’s heating costs were more like £35,000-£40,000. It’s an astonishing drop, and one that stemmed from a decision to replace their 45-year-old oil heating system with a new biomass chip boiler, accredited under the government’s Renewable Heat Incentive (RHI). By doing so, Belmont Nurseries slashed its heating costs, and every three months for the next 20 years, the business will also be paid for the renewable heat it generates.

As part of the UK’s wider commitment to reducing carbon emissions, the RHI was launched in 2011 as a means to increase all UK heating generation from renewable energy sources from around 2% to 12% by 2020. The incentive works by paying a tariffed rate for every eligible unit of renewable heat generated >>

MODUS_Oct13_P34-38_RHI_v3.indd 34 16/09/2013 13:33

Mark Eves, manager of commercial tulip grower PS & JE Ward, in one of

the company’s biomass- heated glasshouses


36 r ics.org


10.13 // MODUS 37

Renewable heat//

by technologies such as biomass boilers, solar thermal systems and ground and water-source heat pumps that have been installed since July 2009. The RHI has been available for non-domestic use by landlords, businesses, farmers, schools and hospitals for more than a year now, and for Belmont Nurseries and hundreds of other commercial enterprises, it has opened up the financial benefits of heating their businesses more sustainably.

However, the government’s anticipated extension of the RHI for domestic use has been subject to continual delays – much to the frustration of landlords and homeowners eager to be part of the scheme. The new launch date is set for early next year, but despite the delays, it’s hoped that the success of the non-domestic RHI is a good indicator of uptake for the extension. Ofgem, which runs the RHI, reports that from November 2011 to March 2013, across England, Scotland and Wales, 1,984 non-domestic applicants were supported, 1,238 renewable heat installations were accredited and around £7.62m in scheme payments were made to accredited participants. Soon thousands of UK households could see the financial benefits of switching to renewable heating systems. And as the growing demand for fossil fuels continues to push up the price of oil and gas, the RHI could be particularly attractive to households in rural areas, which often rely on oil burners for heating. But until the launch, homeowners only have the option to apply for the Renewable Heat Premium Payment, a capital grant that helps cover part of the cost of installing certain renewable technologies.

After Eves had secured a bank loan to help with the capital costs of the biomass boiler, his bank manager suggested he also obtain professional advice on what would be the best set-up for Belmont’s commercial operation. ‘My bank manager was surprised, I think,’ says Eves, ‘because it was perhaps the first time he had seen an eco-project that financially made very good sense – to the point where he thought it was almost too good to be true.’

Eves contacted energy consultant Duncan Brewer, associate director of energy and rural at Savills, who helped them select a wood chip boiler suitable for the scale of their business. ‘There are considerable differences in fuel prices per tonne, and therefore the costs of running,’ says Eves. ‘If you’re not going to have it running for a lot of the year, then one of the cheaper systems is better, but we paid a bit more for a 990kW boiler as it had to be on almost flat-out during the past winter. And, because it was colder than usual, we had to boost the heating for a short time using oil burners.

However, over the year, the biomass boiler produced around 2,300kWh, while the oil burners produced only 112kWh. It’s made a huge difference: we used to have 10 loads of oil deliveries a year – now, a single oil delivery will last for years.’ To reduce fuel costs even further, Belmont Nurseries also uses the woody remnants

of chrysanthemum cuttings as fuel for the boiler.Eves has no doubt that professional advice was vital

to getting the best out of the type of equipment they installed, and its relation to the RHI tariff: ‘The advice from Savills was essential in working out exactly what we could claim for, and Duncan Brewer helped to get us a higher percentage return on the RHI than I’d have found myself,’ he says. Based in Oxford, Brewer provides renewable energy advice to clients and property professionals all over the UK. He finds surveyors to be a key link in the advisory process, and he will often work together with other professionals to ensure RHI equipment meets certification, or to check whether certain technologies are even appropriate to be installed on a client’s premises. ‘People sometimes underestimate the overall costs of installing renewable heating technologies,’ he says. ‘For example, it may cost £30,000 for a biomass boiler, but then, for example, a building has to be constructed next to it to store large amounts of wood chip or pellet fuel. It’s very important to keep the accumulators of a project in mind.’

Biomass boilers are currently the most successful technology used under the non-domestic RHI, finds Brewer. Most landowners can expect 10-15% returns on their projects – even higher if they can produce their own wood chip fuel from their land. Other technologies, he explains, such as ground source heat pumps, are generally better suited to smaller schemes, and can be more favourable when used in very well-insulated modern buildings. ‘Sometimes, where RHI technologies can be installed is very site-specific, and they must be able to integrate with existing heating systems,’ says Brewer. ‘I would say the RHI makes much more financial sense for landowners who mainly rely on oil heating systems, rather than gas, because gas prices are reasonable at present, whereas it’s becoming increasingly more expensive to use oil. But it depends on the client’s circumstances – using renewable heat for commercial spaces such as glasshouses or chicken sheds, for instance, is ideal.’

For those hoping to generate payments under the RHI for domestic buildings next year, a set of fairly stringent criteria have to be met, including having the RHI system installed by a recognised scheme, such as the Microgeneration Certification Scheme, >>

‘We used to have 10 loads of oil deliveries

a year – now, a single oil delivery will last for years’

Top left: Water heated by the biomass boiler is stored for use in this 130,000-litre water tank Top right: Wood chips are the main biomass fuel used, supplemented by the nursery’s waste plant materialBottom: The 990kW biomass boiler, providing an RHI tariff of 5p/kWhth and saving the business £70-80,000 per year


Renewable heat //

:PAID TO PRODUCE MICRO-GENERATION UNDER THE RHISOLAR THERMALWhat is it? Free heat energy from the sun is collected via roof- or ground-mounted solar panels, or tubes to heat water stored in cylinders. Solar thermal technology is ideal for buildings with a large hot-water demand, such as leisure centres or schools.Top benefi t: Sunlight is free, so after the initial installation, hot-water costs continue to reduce. What’s more, solar thermal has one of the highest tariff levels under the RHI.Biggest drawback: Although the system can work all year round, during the winter months it may need a boost from a separate conventional or immersion heater.Current RHI tariff (July 2013): 9.2p/kWhth* (for less than 200kWth)

BIOMASS BOILERSWhat is it? Heating systems that burn wood pellets, chips or logs to provide warmth in a room, or to power central-heating or hot-water systems. The process is considered more sustainable as it burns fuel derived from forest, agricultural or industrial residues, instead of using fossil fuels.Top benefi t: Although the price of wood fuel varies, it is often cheaper than other fuels.Biggest drawback: The on-site storage space required and access for the delivery of large quantities of pellets or chips must be considered. Current RHI tariff (July 2013): 8.6p/kWhth (Tier 1, less than 200kWth); 5p/kWhth (Tier 1, 200kWth or above, up to 1,000kWth); 1p/kWhth (1,000kWth and above)

GROUND SOURCE HEAT PUMPS (GSHPs)What is it? Pipework is buried underground, through which a mixture of water and antifreeze is circulated. Underground heat is absorbed into the fl uid, which then passes through a heat exchanger and pump to be used in the building. Because the sub-surface temperature is fairly constant, the system can be used all year round, and will deliver heat over longer periods than oil burners.Top benefi t: No need for fuel deliveries, and can be used throughout the winter.Biggest drawback: A lot of trench digging and drilling is required to bury the pipework.Current RHI tariff (July 2013): 4.8p/kWhth (less than 100kWth); 3.5p/kWhth (100kWth and above)

BIOGAS INJECTIONWhat is it? Plant and animal matter is anaerobically digested in sealed tanks to produce biogas, which can then be used to generate renewable electricity and heat, or cleaned to produce biomethane for injection into the National Grid.Top benefi t: Almost any biomass can be processed by anaerobic digestion, including food waste, energy crops, crop residues, slurry and manure.Biggest drawback: To gain payments under the RHI, the biogas must not be from landfi ll, and production can only be up to 200kWth.Current RHI tariff (July 2013): 7.3p/kWhth (less than 200 kWth)

* kWhth (kilowatt-hours thermal) – the amount of heat energy given off by a 100%-effi cient 1kW electric heater left on for one hour.

and providing an Energy Performance Certifi cate as part of a Green Deal Assessment. It can be a lengthy process, and together with the continuing delays to the launch, has it put people off? ‘There’s certainly a sense of frustration among our clients who expected to join the scheme this year, only for it to be delayed further,’ says Robert Franklin MRICS, partner and head of building surveying at Robinson & Hall in Bedford. He says the fi rm always informs clients of the RHI’s benefi ts – whether they are advising on refurbishments or new developments – and he believes the advantages of the RHI domestic extension are clear for landlords who are willing to invest for the long term to operate more sustainably and to help attract tenants. ‘But we’re not saying all our clients must get involved,’ Franklin adds. ‘It’s our job to make sure that they get the best advice for their individual situation, and to inform them about the alternatives to heating with oil.’

While he’s not anticipating a huge rise in business next year, Franklin feels that the industry needs more positive coverage of the scheme. Brewer agrees:

‘I think the delay hasn’t helped, but clearly the government doesn’t want a boom-and-bust scenario like they had with the Feed-in-Tariff (FIT) subsidy for solar power generation, where everyone piled into it, prices dropped and it became a victim of its own success,’ he says.

To help keep the costs of the scheme under control, some mechanisms are planned to govern the capacity installed – fi rstly on the non-domestic RHI, and perhaps later on the domestic side. If certain energy- generation thresholds are reached, the tariff is reduced, and this is reviewed every three months. ‘Will there be a huge infl ux of people joining the scheme next year?’ asks Brewer. ‘Only time will tell, but I think it’s more likely that it will present lower returns in the early stages. The government could later increase the returns, of course, but let’s hope that the lessons from the FIT situation have been learned so that the domestic and non-domestic RHI will be a success.’ ofgem.gov.ukrhincentive.co.uk

‘People sometimes underestimate the

overall costs of installing renewable heating technologies’

38 r ics.org

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(non

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, Jul

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“ I always have my eye on the ball.”

AlanNHBC Building Control Surveyor and football coach

The trusted partner of The homebuilding indusTry

To find out more about the services we offer, visit www.nhbc.co.uk or call

0844 633 1000

It’s reassuring that people like Alan are

there at kick-off, working with your design

and technical teams and supporting you

in developing cost effective solutions to

comply with the Building Regulations.

As a football coach Alan knows the

value of teamwork to overcome the

challenges you face.

G313_Modus Sept - PP - Alan football coach - RHP_v1.indd 1 30/08/2013 15:57MODUS_Oct13_P34-38_RHI_v3.indd 38 16/09/2013 13:34

To discuss how you can save on empty property rates,

call Ad Hoc on 020 73545458 and quote MD13.

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40 r ics.org

MODUS_Oct13_P40-41_Business advice_v1.indd 40 10/09/2013 12:00

10.13 // MODUS 41

Many property professionals mistakenly think of press coverage as something that only comes from press releases about new appointments and successful projects – which they issue on a pretty sporadic basis, if at all. In fact, there are lots of ways for surveyors to build their reputation and attract business through publicising the work they do and positioning themselves as experts for organisations and households to turn to for advice.

When it comes to building press coverage, most people immediately think of tactics such as press releases, announcements, launches, conducting an opening ceremony, organising a publicity stunt or doing something charitable. However, the key to a successful campaign is to put all that to one side and invest time in thinking about your overall strategy. The more time you spend on this, the more you can plan in advance to create a stream of coverage.

The key elements to clarify are: Who is your business aiming to reach? Consider the type

of business or household, or the seniority or location of person, for example. The more specifi c you are, the more successful your campaign will be. Where are your target audience, and what media do they

use? If you know who and where they are, you can focus on the publications they are most likely to interact with. What needs do they have

that you can meet? What are your points of

differentiation? This is important: if you are going to stand out, you’ll need to create a campaign that highlights areas where you are strong and distinctive.

What are your messages, and what do you want people to do? For example, do you want people to think about your fi rm in a certain way? Or do you want to direct them to your website?

Once you know what you are looking to achieve, only then should you start thinking creatively of ways to generate coverage for each specifi c PR activity. There is plenty of advice in books and online about drafting press releases, but for the majority of chartered surveyors, the best route is to place advice articles in publications that your clients are likely to read, which will position you as an expert and highlight the value of your specialist knowledge. Most trade and business publications and websites, and local and special-interest magazines, carry advice and ‘top tips’ articles. Surveyors are knowledgeable

about an extremely wide variety of subjects that are important to households and businesses, and so are well-placed to provide advice and answer questions – for example, on the practicality of making buildings greener and more environmentally friendly, or how to decide whether or not an extension will add value to a property. Advice articles on current issues in the right publication are guaranteed to grab the attention of potential clients.

To get your article into a publication, it’s a question of studying various titles so you know who they are aimed at and what type of article they like. Next, write a synopsis of your article – or even just your idea for an article – that you think would be of interest to the readership of a specifi c publication, making sure that you don’t pitch an idea they have already recently covered. Then approach the editorial team – usually the features editor, or the editor on smaller magazines – via telephone and email to introduce yourself and pitch your idea. And, as journalists are generally very busy people, make sure you follow up to get a response – and if it’s a ‘no’, understand why, so you can get it right next time.

An article is a powerful marketing tool. Not only does it highlight your expertise to a wide range of people but, with the publication’s permission, you can also reuse it in your own marketing campaign. Add a link to the article on your website, and promote it via social media or email to make sure your contacts and customers know about it. You could even pay for reprints, too – which is far more cost-effective than commissioning a brochure.

As a small fi rm, you may worry that publications only want to hear from the big boys. Not so: you are an expert, and most publications are very happy to accept well-written articles from small practices and sole practitioners, as well as larger fi rms.

TIM PRIZEMAN is director of the public relations agency PRmyBusiness. prmybusiness.co.uk

POSITION YOURSELF AS AN EXPERT AND PLACE ADVICE ARTICLES IN PUBLICATIONS THAT YOUR CLIENTS ARE LIKELY TO READ

Illus

trat

ion

Borja

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aque

Business advice //

How to use your expertise to

GENERATE GOOD PRBy public relations consultant Tim Prizeman

MODUS_Oct13_P40-41_Business advice_v1.indd 41 10/09/2013 12:00

:rics news :diary :benefits :resources

42 r ics.org

Are you running out of time?All practising RICS members must complete and log at least 20 hours of CPD online by 31 December 2013.

If you haven’t already done so, don’t leave it until the last minute – go online now to add your CPD activities at www.rics.org/cpd.

CPD is an essential part of being a professional. This commitment to lifelong learning is vital to maintain professional competence and protect the reputation of the profession with clients, regulators, governments and our many other stakeholders. This is why RICS established a policy in 2013 requiring members to record at least 20 hours of CPD each calendar year, including at least 10 hours of formal, or structured, learning.

To access the new user-friendly, online CPD management system, simply go to rics.org/cpd, where there is also a range of guidance and supporting material to help you.

If you need any help understanding the CPD policy or using the online tool, call RICS Regulation on +44 (0)207 695 1670 or email [email protected].

rics.org/cpd

18685 RICS CPD MODUS ADVERT AUG 2013.indd 1 06/09/2013 16:37MODUS_Oct13_P42-51_Info.indd 42 10/09/2013 12:55

01.11 // MODUS 09

Information :rics news :diary :benefits :resources

RICS is using Building Information Modelling (BIM) on its London headquarters. Chartered land surveyors Severn Partnership has already laser-scanned the building, and is now in the process of delivering a 3D BIM model to RICS. With the UK government’s construction strategy requiring collaborative 3D BIM on all projects by 2016, as well as increasing BIM activity in the private sector, propelled by an industry that’s still trying to understand BIM’s potential on smaller projects and the supply chain, RICS plans to share its experiences with members and the industry. rics.org/bim

BIM at RICS hq uSeful nuMBeRSContaCt CentRe +44 (0)870 333 1600

General enquiriesSubscriptionsLibraryBookshop

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

lIonheaRt +44 (0)24 7646 6696

It’S not juSt aBout the 3d Model, It’S aBout the InfoRMatIon BehInd It and how eveRyone Can ShaRe It and CollaBoRate

Mark King, 3D modelling project manager at Severn Partnership

10.13 // MODUS 43

global construction output is forecast to

increase from uS$8.5tn today to uS$12tn by

2025

$12tn

Are you running out of time?All practising RICS members must complete and log at least 20 hours of CPD online by 31 December 2013.

If you haven’t already done so, don’t leave it until the last minute – go online now to add your CPD activities at www.rics.org/cpd.

CPD is an essential part of being a professional. This commitment to lifelong learning is vital to maintain professional competence and protect the reputation of the profession with clients, regulators, governments and our many other stakeholders. This is why RICS established a policy in 2013 requiring members to record at least 20 hours of CPD each calendar year, including at least 10 hours of formal, or structured, learning.

To access the new user-friendly, online CPD management system, simply go to rics.org/cpd, where there is also a range of guidance and supporting material to help you.

If you need any help understanding the CPD policy or using the online tool, call RICS Regulation on +44 (0)207 695 1670 or email [email protected].

rics.org/cpd

18685 RICS CPD MODUS ADVERT AUG 2013.indd 1 06/09/2013 16:37 MODUS_Oct13_P42-51_Info.indd 43 10/09/2013 13:00

08 r ics.org

facts, stats & surveys

RICS news //

44 r ics.org

Illus

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Osc

ar B

olto

n Gr

een,

Ber

nd S

chiff

erde

cker

Growth in occupier

demand picked up in Hong Kong (from +6)

Number of successive quarters that occupier sentiment in Brazil has

been negative

The net balance of new development starts in the US is at its highest

reading (+27) in five years

5

Housebuilding on the rise in EnglandIn Q2 2013, housing starts in england climbed to their highest level since the same period in 2010. With housing associations still failing to improve their development programme, the improvement was largely driven by the private sector. the new Help to Buy may have

also played a very small part in the improving picture, but given the timing of the scheme’s introduction, its impact will be felt more fully over the balance of the year and into 2014. However, judging by the latest numbers, new housing is only running at just over half the

level of household formation, which points to an increasing shortfall in housing stock. as a result, we remain of the view that the current approach alone will not be sufficient to generate the level of new supply that will be required over the coming years.

Leading property professionals from around the world have been appointed to create the first global standard for measuring property. the International Property Measurement standards coalition has selected 19 real estate experts to join its standards setting committee, which is tasked with the job of drafting and consulting industry on the new global standard measurement methodology. currently, the way property assets are measured can vary considerably from country to country, so the new committee includes experts with first-hand knowledge of 50 countries across five continents. With the implementation of a global standard, properties will be consistently measured, creating a more transparent marketplace and generating greater public trust, stronger investor confidence and increased market stability. the new standard is expected to have a significant impact, and also lead to improvements in valuation and financial reporting consistency across international markets. Watch the video at rics.org/internationalstandards.

for most small and medium-sized enterprises (sMes), the process of finding suitable space to lease, including deciding whether to stay in existing premises, can be complex. However, rIcs Oceania has published new guidance and created an app to help tenants in the region. the Leasa app and guidance will help time-poor sMe commercial office tenants compare and rank different spaces available for lease. It can also calculate and compare occupancy, energy and lighting costs, and show clearly how choosing different space and/or changing other tenancy variables will affect the cost and energy efficiency. In order to deliver these new tools, rIcs Oceania received funding from the australian Government Department of resources, energy and tourism. rics.org/leasa

RICS ‘leaSa’ app

One GLOBaL stanDarD

3+21

MODUS_Oct13_P42-51_Info.indd 44 10/09/2013 13:07

01.11 // MODUS 09

w

10.13 // MODUS 45

The expected supply of distressed assets is

projected to continue rising in India in the

next quarter

In Europe, only Germany and Belgium had positive

occupier sentiment index results

In Australia, office sector rent expectations

sentiment has sunk to a five-year low

Taken from the RICS Q2 Global Commercial Property Survey.

Gain CPD hours by contributing to the next survey:

visit rics.org/contribute.

Michael Newey FRICS RICS President

‘New pathways can help increase our diversity and make us more relevant in an increasingly complex landscape’

It was my first official function as RICS President to host Lord Deighton, a senior minister in HM Treasury (the UK’s finance ministry), at a dinner

to celebrate RICS members’ contribution to infrastructure. As the former chief executive of the London Organising Committee of the Olympic and Paralympic Games, Lord Deighton fully recognised the critical role of chartered surveyors in delivering the physical infrastructure that not only made the Games a huge success, but also ensured the lasting regeneration of a neglected corner of London.

Few things enjoy such a high profile as the Olympics, but profile alone is a crude measure of importance. RICS members are central in delivering the infrastructure we all depend on in our daily lives, and their contribution to bridging the US$57tn global infrastructure gap is crucial. In light of this, RICS launched the new global infrastructure pathway in July, which provides a credible route to qualification for those working in the sector. The market needed a specific route, and we responded to the demand – rather than resist it dogmatically with pompous complacency.

When introducing new pathways, we always take great care to ensure they safeguard our collective status by setting rigorous

standards for qualification. New members in the infrastructure sector have to demonstrate the same personal, professional and business competencies common to all pathways, and compulsory for all candidates. At the same time, new pathways open up opportunities to introduce new competencies into our profession, such as project finance, asset management and Building Information Modelling, which increases our diversity, and makes us more relevant in an increasingly complex landscape.

As with any pathway, qualification is just the beginning. When we qualify, we are judged competent at that particular time, but as time passes we have to adapt our knowledge and skills to a changing world. Regular Modus readers will know that this is why I believe continuing professional development is so important, and that staying on top of the changes around us is what entitles us to continue to claim the status of a professional.

This new infrastructure pathway goes hand in hand with our drive to establish international measurement standards. Easing the flow of international capital by ensuring like-for-like comparisons will make a real difference to meeting the world’s growing and urgent demand for new infrastructure.

Sir John Armitt’s review of infrastructure in the UK calls for an independent commission to develop and monitor the delivery of the country’s infrastructure needs. This would bring

confidence to the industry, help to attract investment and also provide a clear and targeted project pipeline. However, we must also focus on delivery in the here and now. RICS has called on

government to break down obstructions to current infrastructure projects, to enable the efficient delivery of stalled projects, and to make the repair, maintenance and upgrading of the UK’s

current transport and energy network a priority. To build our global competitiveness, projects should be delivered at an Olympics-like pace – on time and on budget. rics.org/infrastructure

InfRaStRuCtuRe: aCt now

PRESIDENT’S COLUMN

2-85

Q3


08 r ics.org

I’m a commercial property surveyor, but I have a bit of a yearning to be an architect. Rather than follow the herd of other boys at school in wanting to be a train driver or spaceman (it was the 1970s), an architect was what I always wanted to be. And for a few years after college, I skirted as an architectural technician before being discovered as a potential surveyor. That experience in a ‘drawing office’ (they call them studios now) stood me in good stead. I ‘get’ buildings. I know how they fit together. And I also think I know about good design.

Some architects I know squirm with uneasiness when I get out my felt-tip pens (the thick black one is the best). One partner at a London boutique firm even banned me from drawing on his plans when, actually, I was showing him some better ideas for his building that worked and were practical. He was concerned about the integrity, the lines and the form, the massing and scale, the taste and smell. But I think surveyors can make great building designers because we know buildings – we manage them, buy them, value them and sell them – so we have an intrinsic ability to know if they work. Arguably more so than those lofty, bow-tie-clad, jumper-wearing architect types.

Surveyors make good observers, too – it’s part of the definition of the title. We absorb our surroundings, pick out the stuff that works and apply it elsewhere. Surely that’s halfway to being an architect? We use words to describe what they demonstrate through their drawings. We also know about ‘place’. Creating a place is not the preserve of an elite few: surveyors can also interpret and make places work, as understanding users and occupiers is second nature to us. We all live, work, shop and play in buildings, and we know what we like – well I do, anyway. I know instinctively if where I am is a good place. Some places even surprise and inspire me – and the fun is working out why. Buildings have the ability to change behaviours and make a difference to peoples’ lives. It’s often said that we might not remember the details of a place or building, but how it made us feel. But, you see, surveyors have feelings, too. And in case you wondered, some of my best friends are architects.

Do surveyors make good building designers? Tell us your view by emailing [email protected].

‘surveyors can make greaT building designers because we know whaT works’

Secret Surveyor

The price of farmland hit yet another record high during the first half of 2013, and has now more than trebled in less than a decade, according to the RICS Rural Land Market Survey H1 2013. during the first six months of this year, the cost of farmland jumped to £7,440 per acre across the uk (a hypothetical estimate by surveyors of the value of pure bare land). This represents a record high for the eighth consecutive period, and means that land is now worth more than three times what it was in the same period in 2004, when an acre cost just over £2,400.

This exponential growth in prices has been driven by the ongoing surge in demand from

both farmers and investors since 2008. what’s more, surveyors note that the recent hikes in commodity prices are leading the charge to expand agricultural operations, and that investors increasingly are seeing land as an economic safe haven. ‘looking ahead, it seems that the market is far from finding its level,’ commented rics spokesperson, sue steer. ‘survey respondents expect the trend of rapidly growing prices to continue over the coming year, with a net balance of 46% more surveyors predicting further growth.’ she adds that the recent growth in farmland prices is nothing short of staggering: ‘in less than 10 years, we’ve seen the cost of an acre of farmland grow to such an extent that investors – not just farmers – are now entering the market. if the high demand and relatively tight supply continues, we could see the cost per acre going through the £10,000 barrier in the next few years.’rics.org/land

46 r ics.org

Urban heat iSlanDSRICS has published new research on the environmental impact of rapid urbanisation in China. In Chongqing, the largest directly controlled municipality in China, the rate of urbanisation increased from 35.6% in 2000 to 48.3% in 2007, and is estimated to reach at least 70% by 2020. The report, entitled Urban microclimates and urban heat island in Chongqing, evaluates the consequences of such rapid growth rates on the urban microclimate, and also looks at the impact of the Three Gorges Reservoir construction project, which began in 1993 and completed in 2010. With a rising water level of 175m and water shortage capacity of around 39bn m3, Three Gorges Reservoir was one of the biggest construction projects in the world. The report investigates the extent of the reservoir’s impact on the surrounding micro-environment, particularly in Chongqing. Different research approaches were adopted in order to measure and predict urban air temperature and humidity, which both have a potential impact on the built environment. The research revealed that there is a higher degree of urban warming in Chongqing compared to the global average, and that the city’s urban fabric stores heat and releases it later, creating a profound urban heat island at night. To find out more, search for the report at rics.org/research.

farmlanD priceS treble

RICS news //


01.11 // MODUS 09

07.12 // 08.12 MODUS 4710.13 // MODUS 47

MembershipPositive outlookNearly 12,000 members responded in the two waves of RICS membership surveys this year – our highest number of responses in a decade. The results suggest that, while member satisfaction is stable, approval of how we promote the profession and gain recognition has increased by 13% over two years. Highlights of the survey include: 89% of members continue to feel

pride in their membership 71% feel satisfaction with the

recognition of standards by markets and governments 61% of respondents understand

what RICS is trying to achieve (up 1% year-on-year)

However, as an organisation, we still have work to do. Company size and the age of our members remain key

determinants of satisfaction: trainees and those in larger firms are generally more positive, whereas Fellows, long- standing members and those working in small practices or as sole traders are less so. As a result, RICS will continue to focus on the following areas: Agreeing international standards in

collaboration with partners across our markets around the world Explaining clearly what RICS is

planning to do and achieve Establishing regulation worldwide

that provides competitive advantage for the profession Ensuring end-users demand RICS

standards and qualifications Putting the profession ahead of the

competition with leading-edge training, knowledge and information.

We’re calling for RICS members to help strengthen our surveys. RICS’ market surveys are highly regarded across the industry, widely reported in the press and media worldwide, and have proven to be leading indicators for the property industry. The strength of our surveys is based on member input and their ‘feel’ for the market, based on local knowledge, rather than official views of company research departments. Contributions require just two to three minutes on a regular basis, and will, in most cases, ask for

simple answers (up, down or the same) to a range of straightforward questions about market demand, prices, etc, compared to the previous month or quarter. All participants receive full accreditation in these regularly produced reports, and the time spent completing the surveys and reading the resulting report can count towards your informal CPD (continuing professional development). If you would like to contribute to any of the following surveys, email [email protected]. UK residential market UK construction market

UK commercial property market Global commercial

property market India construction

market China construction

market Hong Kong construction

market Singapore/Malaysia

construction markets rics.org/marketsurveys

Share your local knowledge

SEARCHING FoR A SCHolAR

ConductDisciplinary panel 24 July 2013

clarke & Willcocks ltd, sudbury summary of finding: contrary to Rule 8 of the Rules of Conduct for Firms 2007Penalty: caution/costs

Disciplinary panel 26 July 2013

David perrin, lutonsummary of finding: contrary to Bye-Law B5.2.2(d) of RICS Bye-Laws 2009Penalty: expelled/costs

Disciplinary panel 31 July 2013

peter Heron ltd, Tyne and Wearsummary of finding: contrary to Rules 3 and 8 of the Rules of Conduct for Firms 2007Penalty: caution/costs

For full details, visit rics.org/conductcases.

The search for the 2014-15 Fulbright RICS Scholar Award has begun again. This is the third year that RICS, in collaboration with the world-renowned Fulbright Commission, is offering the opportunity for an academic, or an outstanding UK professional, to pursue research in property, land or the built environment. The annual Fulbright Awards Programme is the only organisation to offer scholarships for academic work in any subject at any accredited US university. And, while the award is for only one year, the benefits do not end there, as the experience opens up many doors and provides unparalleled global networking opportunities.

Applications close on 15 November 2013. Visit rics.org/fulbright to find out more.


08 r ics.org

Advertorial//

Benefitsrics.org/benefitsplus

IHG is delighted to offer RICS members 35% off short breaks. Choose from our main European brands: InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn and Holiday Inn Express.

Where would you like to go? From picturesque Amsterdam to romantic Paris; Brussels, the home of chocolate, or the Spanish capital Madrid, there are so many places in Europe to visit, and more than 500 participating hotels to choose from.

InterContinental The finest city addresses come courtesy of InterContinental hotels. Vibrant, cosmopolitan destinations offer a sanctuary of luxury – from the new InterContinental Westminster in London to stunning resorts such as Berchtesgaden. Key historical events are linked to InterContinental heritage

hotels – for example, The Willard D.C. has been at the centre of political life in Washington since 1818, the Amstel Amsterdam is the very first example of a ‘Grand Hotel’, and the Paris Le Grand in the 9th arrondissement is a stunning example of Napoleon’s love of grandeur. Wherever you travel, there’s always a story to tell.

Crowne PlazaLocated in urban centres, gateway cities and resort destinations, we provide a better experience for meeting planners and attendees. We also know a good night’s sleep only truly begins once you’re able to shut out the world, which is why we have the Crowne Plaza Sleep Advantage programme, including comfortable beds, quiet-zone floors, guaranteed wake-up calls and exclusive aromatherapy products.

Hotel IndigoWe love the fact that we’re different, right down to our local take on design. Hotel Indigo combines the individuality of a boutique hotel with the consistency and reliability of a branded hotel.

Holiday InnOur friendly people love to make guests feel totally comfortable. Whether they arrive in a suit or shorts, business and leisure travellers find Holiday Inn offers great value for money.

Holiday Inn ExpressAs a smart frequent traveller, we realise that nothing is more satisfying than an easy and uncomplicated stopover. That’s why Holiday Inn Express offers a fresh, clean and friendly hotel that’s both efficient and convenient and great value for money.

Book your next weekend away now for stays until 29 December 2013 and enjoy these exclusive discounts: 10% off the best flexible rate for

weekday stays at participating hotels Up to 35% off on weekend stays in the

UK and Europe

Visit ihg.com/rics and select the 35% off button, or telephone 0871 423 4913 quoting ‘954300402’ for weekday stays and ‘exclusive’ for weekend stays with 35% discount. All offers are subject to availability at participating hotels. For full details of terms and conditions, visit ihg.com/rics.

35% off breaks at IHG hotels

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

48 r ics.org

Advertorial //

AS GOOD AS OUR WORD


01.11 // MODUS 0910.13 // MODUS 49

with a choice of 18 breakout sessions that offer guidance on a range of key developments including the effect of new CDM regulations, boundary disputes and high street planning and regeneration. £135 + VAT – full day£80 + VAT – half dayrics.org/southeastcpd

RICS North Rural Conference 201322 October, HexhamDiscover the opportunities that are available in the rural sector, with insights into the advantages of ecosystem services and guidance to help you turn your land into an investment asset. Plus, gain essential updates on the CAP reform and what this means for your clients.£100 + VATrics.org/northrural

BIM at RICS 7 November, LondonFollowing the recent modelling of RICS’ headquarters, Severn Partnership will give a behind-the-scenes look at the Scan4BIM RICS project. rics.org/bim

RICS Telecoms Forum Conference 201312 November, LondonJoin more than 160 delegates, top

practitioners and key industry influencers to discuss current challenges, legal and regulation changes, the economic sustainability of the telecommunications industry and its implications for land, rural and planning surveyors.£245 + VAT rics.org/telecomsconference

RICS Legal Issues in Construction Conference 201313 November, LondonTopics will address issues of concern, such as recent legal developments, termination and insolvency, dispute resolution and international contracts. £220 + VATrics.org/legalissues

RICS North West CPD Day20 November, WarringtonGain six hours’ CPD with a choice of 18 breakout sessions that offer guidance on a range of key developments including the High Speed 2 proposals, navigating NEC3 and JCT contracts and a technical overview of modern materials. £135 + VAT – full day£80 + VAT – half dayrics.org/northwestcpd

RICS Rating Conference28 November, LondonThis conference provides a great opportunity to find out how current property trends, and changing government policy, mechanisms and

your APC on a less formal basis.£130 + VAT rics.org/apcprepday

RICS Scotland Rural Mid-Session Conference14 November, PerthUpdates on the developments in Scotland affecting the rural sector, including the National Planning Framework Strategy, the National Planning Framework for Scotland 2: Action Programme, the latest on the CAP reform to date, and a brief overview of other key changes in planning relevant to the rural economy.£75 + VATrics.org/scotlandrural

WalesRICS Wales Infrastructure Conference24 October, CardiffThis conference looks at the progress to date of the Welsh

government’s Infrastructure Investment Plan for Growth and Jobs, as well as current and planned infrastructure projects, and their scope for creating jobs, stimulating the economy, adding value to public service delivery and providing opportunities for professionals in and beyond Wales. £80 + VATrics.org/walesinfrastructure

RemindeR To remain up to date, all RICS members must undertake a minimum of 20 hours of CPD (continuing professional development) each calendar year – of which at least 10 hours must be formal CPD. You should then record your activity online. It’s very quick and simple: start by logging today at rics.org/cpd.

Eventsreforms, are currently affecting practitioners, valuations and clients. The programme will involve high-level, strategic topics, as well as essential, relevant and practical aspects.£225 + VATrics.org/ratingconference

scotlandRICS APC Prep Day Scotland3 October, StirlingA focused, practical guidance to your route to success when sitting your APC final assessments. Sessions include the critical analysis, presentation skills, a mock interview, ethics guidance and the process behind the APC. The day also focuses on workshops where you will benefit from meeting with APC Doctors to discuss

Book eveNTS oNLINe AT rics.org/conferences For enquiries, call +44 (0)20 7695 1600

RICS CommERCIal PRoPERty ConfEREnCE 13 november, millennium Gloucester Hotel, london

A specialist networking forum that brings together stakeholders

in the commercial real estate sector. Our comprehensive programme has been developed to ensure you are up to date on the latest market trends, risks and opportunities. £235 + VAT (£220 + VAT if booked before 18 October)rics.org/commercialconference

enGlandRICS CPD Series October to January, various locationsThis series of one- hour seminars returns to provide local, low-cost CPD (continuing professional development) that’s tailored to your region. With topics including residential valuations, the Green Deal and local planning funding mechanisms, these seminars will assist in your professional development and help you meet the requirements of the new RICS CPD policy.£30 + VATrics.org/cpdseries

RICS Yorkshire and Humber CPD Day17 October, LeedsGain six hours’ CPD with a choice of 18 breakout sessions that offer guidance on a range of key developments including the effect of new CDM regulations, changes to the Local Development Framework, plus an update on the High Speed 2 proposals.£135 + VAT – full day£80 + VAT – half dayrics.org/yorkshirecpd

RICS South east CPD Day17 October, WinchesterGain six hours’ CPD


EastErnrodney David Cooper AssocRICS1948-2013, Norfolk

LonDonrobert Biggs MRICS1965-2013, LondonPeter Preddy FRICS1954-2013, Halesowen

south EastDouglas Charles Fox FRICS1921-2013, Horshamalan Clifford stripp MRICS1926-2013, Southampton

south WEstDonald Victor Poole MRICS1922-2013, Budleigh Salterton

Derek Joseph Winston FRICS1916-2013, Shaftesbury

East MiDLanDsGeoffrey Dixon Brigham FRICS1927-2013, LeicesterLeonard Charles Drinkell FRICS1927-2013, Colchester

hugh Kinsman Marshall FRICS1925-2013, Sudbury

arthur John tindall FRICS, 1922-2013, Lincoln

WaLEsrichard simon timmons FRICS1950-2013, Holyhead

sCotLanDEric alexander tomney FRICS1950-2013, Glasgow

aMEriCasGeorge Frizzell MRICS, 1928-2013, North America

EuroPEandre Goddard MRICS1931-2013, Villeneuve Les Beziers

Obituaries

Please email obituary notifications to riCs, including membership number if known, to [email protected] or call +44 (0)870 333 1600.

50 r ics.org

RICS news //

Douglas Charles Fox FRICS 1921-2013

Born in London in 1921, Douglas Charles Fox attended St Edward’s

School in Oxford, and in 1939 he became an articled clerk with King & Chasemore of Horsham, West Sussex – a growing land agency practice.

War intervened and, in 1940, Douglas joined the RAF, and in 1945, he worked on the British Bombing Research Mission, flying many times to Germany to report on the results of Bomber Command attacks. After the war, Douglas obtained a job with land agents Humbert & Flint in Lincoln’s Inn Fields and qualified as a member of the Chartered Land Agents’ Society. In 1951, Douglas was invited to return to King & Chasemore to become a partner, and over the following years, he set about extending the firm’s rural management practice in Sussex, Oxford, the West Country, Cumbria, Norfolk and Yorkshire.

When the Chartered Land Agents’ Society amalgamated with RICS in 1970, Douglas immediately became involved with the RICS Sussex Branch, and was elected chairman a year later. It was a period of consolidation of professional bodies, with the Chartered Auctioneers’ and Estate Agents’ Institute also joining forces with RICS.

Douglas was senior partner of King & Chasemore for 10 years, retiring in 1987. In his retirement years, Douglas and his wife Vera went on many cruises and travelled the world more than once. Skiing was also high on the agenda. Douglas died in July 2013, and is survived by his wife, son and three grandchildren.

£1m For LionhEartWilliam Henry Rose, known as Henry, was a happy, enthusiastic and very successful surveyor who lived and breathed property. When he passed away in 2010, Henry left his estate in trust to his wife Jane, with instructions

for significant sums to be left to various charities. However, Jane chose to make the donations immediately, and as a result, LionHeart was the grateful recipient of a legacy worth more than £1m.

‘Henry left money for LionHeart because he was so grateful to have enjoyed such success in his career that he wanted to give something back and leave a legacy that would endure,’ says Jane. ‘Henry cared very much about his colleagues, so leaving money to LionHeart was his way of saying thank you to them, too.’ Davina Goodchild, chief executive of LionHeart, visited Jane to say thank you, and told her more about what the charity does and how it has changed over the years – for example, alongside grants, LionHeart now offers a wide range of services including counselling, befriending, back-to-work support and debt advice.

Like Henry, many kind donors are humble and, because they’re not looking for recognition or gratitude, we only find out about their gifts to LionHeart after their passing. So, if you are about to write your will, or have a will and have allowed for a donation to LionHeart, please do let us know so that we can say thank you.lionheart.org.uk

CaLL LionhEart on +44 (0)24 7646 6696 or email [email protected].


BM_RecAd_87.5x55.5mm_OL_AW2.pdf 1 02/09/2013 14:16

10.13 // MODUS 51

RecruitmentFor recruitment advertising please contact: Angus Sharpe +44 (0)20 7871 2667 [email protected]

The November issue will be published on 28 Oct

Recruitment copy deadline Thursday 9 October

Looking for your next surveying job?Find out who is hiring today. Visit ricsrecruit.com or scan here

After a period of intensive recruitment, our team of 50 Chartered Surveyors now covers the whole of England and Wales, working across our extensive lender and client base.

We’re actively recruiting again for VRS Registered Residential Surveyors, with opportunities in the following postcodes: SE, E, TW, KT, CR, SM, DA and BR.

Big plans for 2014; a company you’ll want to be a part of....

Investing in people...As well as offering a competitive employee benefits and development package, we go the extra mile to keep our staff on the road happy and healthy. Our surveyors enjoy a weekly fruit box delivery, access to a Pilates programme, as well as lots of exciting year-round initiatives, designed by the Shepherd Direct “Great Place to Work” programme.

Investing in technology...We have recently implemented a bespoke iPad solution in-house, which enables our surveyors to complete valuations on site, gathering comparable property details on the spot and sign off to the lender “on the doorstep”, making our process faster, more efficient and truly competitive.

For further information, please email Liz Brough, HR Manager at [email protected] send your CV FAO Liz Brough, HR Manager,Shepherd Chartered Surveyors, 3-4 Regan Way, Chetwynd Business Park, Chilwell, NG9 6RZ.

Even bigger plans for 2014; a company you’ll want to be part of.....

89,820 average net circulation 1 July 2012 – 30 June 2013

Residential valuation, HomebuyeR and building suRveyoR

Opportunity for contract surveyors/consultants to joina nationwide firm of surveyors. Opportunities exist in specific postcodes throughout England and Wales.

Please forward your Cv and contact details by email to:[email protected]


This is a great chance to apply your creative thinking ability and experience of working on large scale programmes and a range of exciting projects that will make a positive difference to the way London runs. As well as adding some impressive credentials to your CV, you’ll enjoy the benefi ts and career opportunities you’d expect from a large, expanding organisation that combines public sector resources with a strong entrepreneurial spirit.

A rich heritage. A strong commercial focus. An iconic brand. They all add up to make Transport for London a unique public service – and a great place to develop your career.

We need experienced, high calibre Senior Commercial Managers to lead the delivery of commercial activities across a portfolio of major projects in our Capital Programmes Directorate. This will include leading and developing teams and overseeing all stages of the procurement process. The jobholder will manage a team comprising of procurement, commercial and cost managers who will support the delivery of a

series of projects, these will primarily be focused on high profi le Station Upgrade Project’s, such as Tottenham Court Road and Bank Station.

We need innovative professionals with experience of working on large infrastructure projects (not necessarily in the transport fi eld). Finely honed communication, leadership and relationship building skills will be complemented by a proven track record of achieving targets, delivering value for money and managing risk. At this level of seniority we also expect applying candidates to be MRICS Qualifi ed or equivalent.

Excellent benefi ts include Competitive Salary, 30 days annual leave, performance award, fi nal salary pension scheme, free travel and private medical benefi t. To apply, please visit tfl .gov.uk/jobs ref 007029. Closing date: Monday 21st October 2013.

We aspire to be as diverse as the city we serve, we welcome applications from all sections of the community.

SENIOR COMMERCIAL MANAGERS Competitive Salary and Excellent Benefits

tfl.gov.uk/jobs

Transport for London

To view more jobs online visit ricsrecruit.com

52 r ics.org

Modus_Oct13_P52-57_Recruitment.indd 52 10/09/2013 13:22

10.13 // MODUS 53

Recruitment //

TIPS FOR HOW TO HANDLE A VIDEO INTERVIEWBy Linda Whitney

As if job interviews were not stressful enough, now you face the possibility of doing them on video. Advanced modern technology means that video interviews are now becoming more common, particularly for international recruitment. ‘The simplicity of carrying out video interviews through services such as Skype has had a big impact on international recruitment,’ explains Richard Gelder, director of property and the built environment at Hays. ‘For example, we’ve arranged video interviews for UK surveyors and other construction professionals for positions working on the Christchurch rebuild in New Zealand.’

One of those is Tomos Williams MRICS, a senior quantity surveyor now working in Christchurch, who was interviewed on Skype. ‘For me, interviewing via a 15-inch laptop screen was very strange,’ Williams recalls. ‘If you’re not an experienced Skype user, it can be tricky as you automatically look at the interviewer on the screen, but the position of the camera can mean that you appear to be looking at the fl oor.’ He adds that it’s also diffi cult to convey and interpret body language when you can often only see the interviewer’s head and shoulders.

Williams found the stresses involved with a Skype interview were quite diff erent to those of a face-to-face interview. ‘The separation in physical space off ers a perceived level of comfort and safety, and there are no worries about transport issues or getting lost on your way – but this is off set by worries that your internet may not work or your computer might crash,’ he says.

The key to success, Williams realised, was practice: ‘You have to learn to cope with inevitable delays in sound and picture, and also to direct your eyes at the camera rather than the interviewer.’ Williams advises setting up test sessions with family and friends, and ask for feedback on how you come across on their screens.

John Murphy, principal consultant at ewi, which recruits for international consulting and contracting companies, says: ‘We are increasingly seeing the use of video interviews, as they allow companies to hire the best chartered surveyors regardless of location. They also reduce the time and cost for candidates and clients.’ Murphy also advises candidates do a trial run to ensure all the equipment works properly and they know how to use it.

PREPARING FOR A VIDEO INTERVIEW: Remember that a video interview is still a formal interview.

Be ready to talk about your suitability for the position, and give examples of relevant experience. Dress formally, even if you’re at home. Find a tidy and uncluttered place to set up your equipment: a

messy background can be distracting, and also undermines your claims to be effi cient and organised. Ensure that you know how to use your video-calling software,

and make practice calls to check sound and picture quality. Rehearse looking at the camera to make eye contact with the

interviewer and avoid looking at your own image on the screen. If you are a new user, have a few practice runs to get used to

speaking on video and to the delays in sound.

Careers advice

savills.co.uk

RURAL ESTATE MANAGERLULWORTH, DORSET

Savills is seeking to expand their management team; this post will be based in Lulworth, Dorset and is a great opportunity for the right candidate to run a multi-enterprise business. The Estate Manager will be responsible for day to day running of the residential, commercial and agricultural portfolios and a variety of tourism enterprises. Knowledge of planning matters and financial control are required. Management of forestry and conservation plans, and monitoring of renewable energy projects are other aspects of this position.

The diversity of the role requires applicants to be able to effectively communicate with people of all backgrounds and adapt well to change. You must have good attention to detail skills.

The salary package will reflect the experience of the candidate and the importance of the position.

For a copy of the background information, a Job Description, Employment Package, Skills List and application form please send a request by e-mail to [email protected], or call Julie Smith on 01722-426852. The closing date for completed application forms is Friday 18th October; interview date to be agreed.

Experts in ConstructionProviding specialist recruitment solutions for the construction sector, Randstad CPE o�er specialist tailored recruitment solutions for all stages of the build process, from the initial design and planning, build and project management, to the building services and facilities management.

As experts in our �eld with a long history in the construction market, including Olympic builds, we are best placed to help you with your recruitment needs.

For all your Construction requirements please visit www.randstadcpe.com/construction or call 0800 169 0863.

www.randstadcpe.com/construction

RICS 14th May.pdf 1 5/14/2013 3:38:15 PM


54 r ics.org



Residential Valuation SurveyorsFrom Aberdeen to Yeovil, Aberystwyth to Yarmouth, Valunation, a leading name in the residential surveying marketplace, offers residential valuations, RICS Condition and HomeBuyers Reports, building surveys and other property-related services to businesses and personal customers alike.

Our business is growing, and we’re looking to expand and strengthen our national team of residential valuation surveyors.

Valunation’s culture is that of a private firm, with a corporate attitude and national coverage. We are quality-driven, with a strong tradition of valuing our surveyors as individuals. We place much more emphasis on the quality rather than the quantity of what we deliver.

We have immediate vacancies for experienced, highly motivated individuals in various locations to meet the growth in both private client and lender work. If you are interested in joining us today, we would be delighted to hear from you. We are happy to consider full- or part-time working.

You will be MRICS/FRICS qualified, with a minimum of two years’ post-qualification experience and also an RICS Registered Valuer with recent experience in residential valuation and survey work. We may also consider and cross-train RICS-qualified surveyors looking to move into the residential sector.

Please email your CV, including your RICS membership number, directly to [email protected] or call Paul Lancaster on 07974 090113 for a confidential chat.

We look forward to hearing from you.

Pleasure in the job puts perfection in the work.

AristotleVickery Holman were established in 1848 and cover all aspects of commercial property across the south west peninsula. Due to expansion in our Building Surveying Department we require a Senior Surveyor to develop our professional services within Cornwall.

Senior Building Surveyor The candidate should have:-» A broad range of experience across the discipline» Experience in commercial surveys» A detailed knowledge of Landlord and Tenant issues» A working knowledge of Party Wall » The ability to promote

Please reply in confidence to Katie Gordon [email protected]

www.vickeryholman.com

““

10.13 // MODUS 55

Recruitment //

LONDON/SURREYOurs is a friendly practice established in 1980 with offices in Wimbledon, Weybridge and Guildford.

We provide a variety of services including surveys, valuations, party walls, expert witness and leasehold reform in Greater London and the Home Counties.

We are seeking a surveyor to specialise in building surveys of older properties, and another to specialise in party wall awards.

You could be a potential partner, an experienced surveyor or a sub-contractor.

Please send your CV to: [email protected] or call James Flynn on 01483 451999 with any questions.


56 r ics.org


Residential surveyors required UK wide – permanent, freelance and zero-hours opportunities – outstanding incentivesWhile the market for residential surveyors has been subdued for some time, the recent (and sustained) pick up has created

demand for additional (and returning) residential surveyors in numerous locations UK wide. As a long-established, highly

accredited and well-regarded recruitment consultancy, servicing the sector for more than 15 years, our clients include

independent private practices, larger national organisations and the surveying subsidiaries of wider property groups.

Due to both the shortfall of existing surveyors in the sector and limited uptake of residential posts by newly

qualified entrants, our clients are extremely flexible in their approach to filling vacancies and, as such, will

consider permanent, freelance and zero-hours arrangements, home and office based to suit.

WHO DO WE WANT TO HEAR FROM? Residential surveyors already working in the sector

Residential surveyors who left the sector post 2008 but would like to return with referesher training Semi-retired surveyors (with residential experience) keen to keep active on a part-time/flexible basis Freelance surveyors keen to secure additional fee-sharing instructions RICS-qualified surveyors with relevant (though perhaps not direct) inspection or valuation experience

URGENT VACANCIES (by location and company type) London with particular urgency in the SE, SW, E, EC, W, WC, NW and N postcodes GU, KT, SM and CR postcodes Kent postcodes DA, BR, ME and TN Oxford, Reading, Slough and the closely surrounding postcodes Gloucester, Pembrokeshire, Slough, Reading, Portsmouth/Southampton postcodes Essex postcodes RM, CM, IG and SS Kidderminster Harrow/Middlesex generally Bournemouth Merseyside

REMUNERATION

Subject to location, experience and fee income, permanently employed applicants can expect basic salaries ranging from

£35-£60k plus bonuses (as either a percentage share of fee income after threshold or based on ‘points’ amassed), a

car/allowance and benefits. Zero-hours and freelance surveyors can expect fee-sharing arrangements from 30-60%

depending on the organisation, location and terms (ie PII cover provided or not).

If you would like to discuss, or express your interest in, one of our immediate needs or register your details for future

requirements, please call or email directly in absolute confidence:

Greg Coyle

Head of Property Recruitment

Tel (direct): 020 8514 9116

[email protected]

www.bbltechnical.co.uk


Connells Survey & Valuation is a leading provider of Valuation Panel Management and Chartered Surveying services throughout the United Kingdom.

London all areas – Brighton/Haywards Heath – Guildford –Rayleigh/Chelmsford – Luton – Reading – Aberdeen – Norfolk – Birmingham South – Warwickshire –Croydon – East Midlands.

We are seeking MRICS/FRICS/AssocRICS qualified Surveyors, ideally with recent experience in carrying out Mortgage valuations, Homebuyers reports and Building surveys ideally in the volume residential sector. In some locations we will consider applications from those currently working outside the Residential sector but with the desire and commitment to make a career change. You

will however need a sound understanding of residential building pathology and defect analysis. We are also interested in extending our network of Consultants and Zero hours employed contractors nationwide. If you believe you possess the right skills and share our passion for delivering quality service, then we want to hear from you. Excellent remuneration packages are available for the right individuals.

For further details please contact: Tim Jones on email [email protected]

www.connells.co.uk

As a result of winning a number of major new Lender contracts, combined with significant Private client opportunities, we are now looking to recruit additional experienced Residential Surveyors throughout the country. Our recent recruitment has been highly successful, however new opportunities mean that we have vacancies in the following locations:

Residential Surveyors Competitive Salary + Commission + Company Car (or allowance)

Self employed consultants Zero hours contractors

Legal & General Surveying Services is a leading, blue chip organisation and one of the largest distributors of residential valuation and survey work in the UK. The business is driven by a clear focus on its customers and the ongoing management of quality.The company is a respected employer with a strong reputation.

Legal & General Surveying Services have been in business for over 20 years. They are a wholly owned subsidiary of Legal & General - one of the top FTSE 100 companies and a leading provider of financial services in the UK.

Due to strategic growth of the business, a number of rarely available opportunities now exist to join their prestige team of home based surveyors, undertaking premier fee work in your local region.

Candidates will have a detailed knowledge and experience of residential mortgage valuations, Home Buyers Surveys and allied work, and be able to operate withminimum supervision. An excellent claims record is essential and you must bean RICS registered valuer.

Workloads will be at a busy but manageable level providing a good work /life balance. Full admin backup is provided remotely from the Barnsley head office.

LGSS want to recruit top quality surveyors and offer market leading packages. This includes a high basic salary, outstanding commission package and on target earnings, car /allowance, generous holidays and excellent pension.

Please email your CV in confidence to: [email protected] call our advisor, Jeff Johnson, on 07940 594093 for more information.

(LGSS WILL NOT ACCEPT ANY DIRECT APPLICATIONS OR AGENCY INTRODUCTIONS)

OUTSTANDING OPPORTUNITIES RESIDENTIAL VALUATION - STAFF SURVEYORSLONDON, MIDLANDS & THE SOUTH OF ENGLAND

Call or email Jeff Johnson,for the very latest UK vacancies withall the industry’s leading employers.

T: 0 7 9 4 0 5 9 4 0 9 3 E: j [email protected] www.mlarecru i t .com

LEGAL & GENERAL SURVEYING SERVICES

R E C R U I T M E N T

10.13 // MODUS 57

Recruitment //


1 barrel of oil equivalent =1.7 MWh

cyclist (moderate speed)

53,900km= One-and-a-third times

around the equator (40,075km)

Walking (or gentle jogging)

23,100km= Reykjavik to the

South Pole – the long way, via the North Pole scooter

12,700km= New York to the tip

of South Africa

sWiMMing5,100km

= New York to DublinMotorbike

(800cc)4,350km

= London to Tehran

sMall car(1.0 litre) 3,700km

= Washington DC to Los Angeleslarge car(3.0 litre diesel SUV)

1,540km= Rome to Copenhagen

tipper truck (3 axle, fully loaded)

434km= Paris to Bern

container articulated lorry (loaded)

338km= London to Paris

long-haul jet9km

= 34 seconds of flight time when cruising at 950km/h container ship

e-class (loaded)1km

= two-and-a-half lengths of a ship (Emma Mærsk is 397m long)

source: compiled by Martin Rosser. All distances and calculations are

approximate

58 rics.org

Illustration by ian dutnall

poWer trip How fAr yoU cAn go on tHe eqUIVAlent of A bArrel of oIl

Measure //

MODUS_Oct13_P58_measure.v2.indd 58 13/09/2013 11:10

At e.surv Chartered Surveyors we understand that it takes all kinds of people to make a successful business, and our team is as diverse as our customer base. One thing is consistent, and that is our approach to providing customers with outstanding levels of service.

e.surv Chartered Surveyors is the UK’s largest distributor of valuation instructions. Our business is growing, and as it does we need to employ high caliber, passionate people to grow with us. We are currently recruiting for M/FRICS/Assoc RICS qualified Valuers and Chartered Building Surveyors to work across both our private and lender client-base.

We are looking for additional full and part time professional people throughout the UK.

When you join e.surv you’re guaranteed:

Excellent rewards including a first class salary, pension and holiday entitlement

Help and advice to further your own continuous professional development

A supportive working environment with open and honest communication

We’d love to hear from youSend you CV and covering letter [email protected] call us on 01536 534106

National Operations Centre, Lahnstein House, Gold Street, Kettering, NN16 8AP

Join the UK’s largest distributor of survey and valuation servicesM/FRICS/Assoc RICS qualified Valuers & Chartered Building Surveyors

Part of the LSL Property Services plc Group

Visit www.esurv.co.uk to find out more about us

•

•

•

MODUS_Oct13_P59_E-Surv ad.indd 28 10/09/2013 09:55

Terms and conditions apply. For full terms and conditions see www.hiscox.co.uk/rics. RICS members can also save an extra 10% in the first year of the policy if this is purchased online. The online discount will be taken from your premium before application of the 12.5%saving. Hiscox Underwriting Ltd is authorised and regulated by the Financial Conduct Authority. The Royal Institute of Chartered Surveyors is an Appointed Representative of HiscoxUnderwriting Ltd. For UK residents only. 12208 09/13

as good as our word.for a second opinion, see right.

We came top in the Which? Recommended Provider table for Home Insurance, June 2013.

RICS members save 12.5% on our home insurance rates for the life of the policy (subject to a minimum premium).

Preferred Partner

Hiscox is the proud sponsor of the Building Conservation Award category for the sixth year running

0845 365 1734 hiscox.co.uk/rics

MODUS_Oct13_P60_Hiscox ad.indd 28 10/09/2013 12:02

Documents

RICS Modus, Global edition - October 2013