APC competency: design economics vs

commercial management
Candidates on the APC working on the quantity surveying and construction
pathway have a choice between the core competencies of commercial
management of construction (CMC) and design economics and cost planning
(DECP). The RICS guidance on this states:
For the APC, quantity surveyors working in a commercial or contracting
environment will probably choose commercial management of construction to
Level 3. Quantity surveyors working in a consulting environment in either the
public or private sector will probably choose design economics and cost planning
to Level 3.
Candidates need to make sure they choose the competency that most closely
represents the work experience they have.
These competencies cover key skills that candidates will most likely carry out on
a day-to-day basis, and many candidates will carry out tasks that bridge both
these competencies.
These skills are at the heart of what makes a quantity surveyor key to the
successful delivery of a project. By including activities such as reporting and
measuring profitability and value engineering exercises, assessors can then
further explore the Level 3 reasoned advice given as a result of the candidate
having undertaken these tasks.
Whether working in private practice or contracting, quantity surveyors must
demonstrate a thorough understanding of the basis of their costs. Contractors
need to understand the different elements that make up project costs, whereas
those in private practice should be familiar with the sources of cost data used
and how cost planning changes as it proceeds through the various stages.
Take yourself out of your comfort zone
The assessors want to make sure that a candidate is a safe pair of hands and
can operate sufficiently and safely as a chartered surveyor. Once you become
chartered you could move on from your current employer and even set up in
practice for yourself. The assessors need to be sure you would still be able to
provide the level of service expected from a professional chartered surveyor.
With that in mind you need to prepare for some questions that may push beyond
your field and experience.
One of the mistakes candidates often make is to think about their role in
isolation; a good APC candidate who perhaps only has work experience in one
field, be it contracting or private practice, should not be narrow-minded. They
should be able to understand the role of the quantity surveyor in its entirety and
demonstrate an understanding of how the tasks they carry out and the advice
they give affect others within a project.
Assessors are often looking for candidates to understand the bigger picture, so
think about how your actions impact on the project as a whole.
Value engineering

Value engineering is something that is covered under both competencies, and

many candidates include an example of this task in their summary of experience
at Level 2 and/or Level 3.
Activities can often be named as value engineering by candidates when in fact
only a cost-saving exercise has been undertaken; candidates covering value
engineering must also look at aspects such as time, aesthetics, buildability, or
maintenance implications to ensure they are in fact offering value engineering.
They must also ensure they deal with revisions to design in a responsible and
safe manner. When putting forward technical changes these must be done in
conjunction with the design team to ensure the appropriate insurance is in place.
The new guidance note in the Black Book (see hot topics) contains excellent
guidance and examples.
Level 1 sources
Candidates should read the guidance notes in the Black Book, which cover many
aspects of these competencies, including cost reporting, cost analysis and
benchmarking, and be aware that the RICS launched a new guidance note in
March 2016 on commercial management of construction.
Unfortunately many candidates are still coming forward for final assessment
without even being aware of the existence of the Black Book this is their
opportunity to avoid that pitfall.
Candidates can also look to the new rules of measurement (NRM) suite of
documents for guidance on cost planning and cost reporting (available free of
charge to RICS members).
QS&C candidates are fortunate to have the supplemental guidance at the back of
the QS Pathway guide and should use this to aid their revision.
For most candidates the choice between these two competencies should be
straightforward (ie dependent on the type of organisation they work for).
For other candidates, in particular those with more experience or who have
worked in both areas, they do have the option of choosing the competency not
selected as a core as an optional competency at Level 2.
Candidates who are still not sure should ask themselves:

Where does most of my experience lie?

Under which competency have I worked at a more senior level?

Which of the competencies contains the most examples of activities I have

carried out?

Which competency would I be most happy to expand on at final

assessment, including giving reasons for my actions and details of the
options I considered?

At Level 1, where does my base knowledge come from and how up to date
am I on the current issues?

Top tips

Think about tasks you have carried out and why you have carried them
out

Think about the bigger picture, ie why you are carrying out a cash flow
forecast or cost to complete and what it tells you/others

Think about the action you might take as a result of some of these tasks,
ie cost to complete may lead you to investigate unexpected costs

If you are including an example of value engineering, make sure it is not

simply a cost-saving exercise and be ready to demonstrate the added
value

Think about all parties involved, ie how do your actions affect the end
client or the professional quantity surveyor (even if your contract is not
with them)

Make sure that you can justify your actions and reasoning and are not
simply carrying out a task in a particular way because that is the way your
company does it.

Hot topics

GooNRM1 Order of cost estimating and cost planning for capital building
works

NRM3 Order of cost estimating and cost planning for building

maintenance works

Sources of cost data, such as BCIS and Spons

RICS Black Book Please note this is a collective title for a large number
of very important guidance notes. As a RICS member you have free access
to this information and it is a key APC revision element for all built
environment candidates. There may also be elements of interest for other
APC pathways.

Example questions
Dont assume that the questions given here will be asked at an APC assessment.
Assessors will focus on and pose questions on the basis of the candidates
declared competencies, pathway guide requirements, up-to-date developed
knowledge base and the examples provided in their summary of experience, etc.
Level 1

DECP) What are the various stages of cost planning?

DECP) What adjustments may you make to a cost plan?

CMC) How do you prepare a cash flow forecast and what is it used for?

Both) Where would you look for guidance on commercial management

procedures?

Level 2

(DECP) Talk me through the headings within your cost report

(DECP) How did you deal with risk in this cost report?

(Both) Tell me about the value engineering exercise you undertook

(Both) What was the difference in cost between the two construction
methods? What were the other impacts from the change?

Level 3

(CMC) What advice did you give on the basis of your cash flow?

(CMC) What actions did you recommend as a result of the delayed

programme? How did you calculate the cost of this overrun?

(DECP) Tell me about how you valued the risk you identified how did you
deal with the risk in your reporting? What advice did you give in relation to
dealing with the risk?

Useful resources
APC Presentation
This online masterclass discusses key elements of the APC final assessment
interview. Hints and tips at www.delever.com
APC mock interviews
An opportunity for candidates to practise their APC final assessment interview
including presentation and competency-based questioning. It comprises a full
hour interview just like the real thing and constructive feedback from two
assessors, including hints and tips on best practice: www.delever.co.uk/mocks
Supervisor and counsellor APC training/recordings formal CPD
Guidance on how to manage and support candidates to get them through the
APC. Free onetwo hours of formal CPD requirement: www.delever.com
APC Commercial Property Revision Guide
Every forward-thinking APC candidates reference book for APC preparation:
www.delever.co.uk/katetaylor
APC Explained Masterclass
This helps candidates to understand what needs to be done, including a walkthrough of the DeLever APC process timeline and myAPC Diary: www.delever.com
Timeline wallchart
An A2 pictorial view of the APC process. Free copies are available at:
www.delever.com
RICS APC Guides
These should be read at least once every three to four months and fully
understood. Candidates from outside the UK also need to check their regional
websites for any local APC requirements: www.rics.org