Appointment Agreements

Section 1

Purpose

An appointment agreement is the formal contract between the QS and the client. It defines rights, obligations, fee arrangements, liability positions, and the mechanism for resolving disputes. For RICS-regulated firms, obtaining a written appointment before commencing services is a mandatory requirement under the Rules of Conduct.

The RICS Standard Form of Consultant's Appointment (May 2022, England and Wales) is the recommended form for most QS commissions, replacing the 2019 edition.

Section 2

Key Principles

Rule of Conduct 4 (Firms — Terms of Engagement) requires that terms of engagement are agreed in writing before or promptly after commencing services.
The RICS Standard Form (2022) is suitable for construction project-related commissions of any size. The Short Form may be used for simpler commissions; the Short Form for Designated Services covers specialist services.
Key clauses to understand: Clause 3 (Consultant's obligations and requisite standard), Clause 5 (Limitations of liability — including aggregate cap and net contribution), Clause 9 (Payment and remuneration), Clause 12 (Insurance), Clause 16 (Dispute resolution).
The Appendix to the Standard Form records the key commercial details: client, consultant, project, fee, PII level, liability cap, and payment terms. Completing this accurately is critical.
Consumer clients (individuals acting outside their trade or business) trigger additional obligations under the Consumer Rights Act 2015 and Unfair Contract Terms Act 1977.
Collateral warranties (Clause 6) may be required by funders or tenants — understand when and how to provide them, and ensure they fall within PII coverage.

Section 3

Practical Application

Step 1

Select the appropriate form of appointment for the commission type and complexity (Standard, Short Form, or Short Form for Designated Services).

Step 2

Complete the Appendix in full — do not leave fields blank. Record: parties, project, fee, payment terms, PII level, liability cap, and choice of governing law.

Step 3

Attach the Schedule of Services (scope of services agreed under GN-PA-04).

Step 4

Review the draft with the client. Highlight the liability cap, net contribution clause, and dispute resolution mechanism — these are often the subject of negotiation.

Step 5

Ensure the appointment is executed by authorised signatories. For companies, check whether execution as a deed is required (e.g., for collateral warranties).

Step 6

File a signed copy of the appointment before commencing substantive work.

3a. Complaints Handling Procedure (CHP) — Your Obligation at Appointment Stage

Under RICS Rule of Conduct 7 (Firms), all RICS-regulated firms that offer surveying services to the public must have a written Complaints Handling Procedure that meets an agreed RICS minimum standard.

The RICS Standard Form of Consultant's Appointment Explanatory Notes (May 2022), Section 4.34, confirms this obligation directly in the context of the Standard Appointment:

The CHP must be communicated to the client at the point of engagement — not retrospectively. It should either be appended to the appointment documentation or referenced within it, with a copy made available on request.

Your CHP must meet the following RICS minimum requirements:

• Be in writing and available to all clients on request.

• Provide a clear two-stage process: (1) internal review by the firm, then (2) escalation to an independent redress/ADR provider if unresolved.

• Identify a named complaints handler within the firm (typically a director or senior manager).

• Confirm the timeframes for acknowledging a complaint (typically within 5 working days) and issuing a full written response (typically within 28 days at Stage 1).

• Reference a RICS-approved independent redress scheme as the Stage 2 escalation route — the RICS Dispute Resolution Service (DRS) is available for this purpose.

• Confirm that records of all complaints received and their outcomes are maintained for a minimum of six years.

A baseline CHP template meeting these requirements has been prepared for use alongside this guidance note. See: CHP — Complaints Handling Procedure Template.

Step 7

Attach or reference your firm's CHP within the appointment documentation before the appointment is executed.

Step 8

Confirm that the client has been made aware of the CHP and their right to request a copy at any time.

Section 4

Common Mistakes to Avoid

Commencing work without a signed appointment — this is a Rules of Conduct breach and leaves the firm commercially exposed.
Leaving the Appendix incomplete, particularly the liability cap or PII limit fields.
Accepting bespoke client appointment forms without legal review — client forms often contain onerous liability and warranty provisions.
Agreeing to unlimited liability, which may exceed PII coverage and expose directors personally.
Not checking that collateral warranties, if required, are consistent with the primary appointment terms.
Failing to provide the client with a copy of the firm's CHP at the point of engagement — this is a regulatory requirement under RICS Rule of Conduct 7, not a recommendation.

Section 5

APC Competency & Quick Reference

This topic is relevant to: Contract Practice (Level 1–2), Client Care (Level 1–2), Business Development (Level 1–2), RICS Rules of Conduct.

What is the RICS Standard Form of Consultant's Appointment 2022 and when is it used?

It is the RICS-recommended form of contract for engaging consultants on construction project-related commissions. The 2022 edition replaced the 2019 edition and introduced an updated Neighbourly Matters Scope of Services. It is suitable for commissions of any scale alongside the relevant RICS Scope of Services.

Which key clause limits the QS's financial liability in the Standard Appointment?

Clause 5 covers Limitations of Liability. It includes Clause 5.1 (aggregate cap), Clause 5.2 (net contribution), and Clause 5.3 (expiry of liability — typically 6 years for simple contracts or 12 years for deeds).

What is required by RICS Rules of Conduct regarding terms of engagement?

RICS Rule of Conduct 4 requires written terms of engagement before commencing services (or promptly afterwards). The terms must cover scope, fee, and liability as a minimum.

What is the RICS requirement regarding a Complaints Handling Procedure at appointment stage?

Under RICS Rule of Conduct 7, all regulated firms must have a written CHP meeting RICS minimum standards. The RICS Standard Form Explanatory Notes (May 2022, Section 4.34) confirm the firm has a duty to inform the client of their right to make complaints via the written CHP. The CHP must be communicated at the point of engagement and provided to clients on request.

Section 6

Pre-Appointment Checklist

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Appropriate form of appointment selected (Standard / Short Form / Designated Services)

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Appendix completed in full — parties, project, fee, payment terms confirmed

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PII level and liability cap recorded in the Appendix

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Schedule of Services attached to the appointment

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Consumer client obligations considered (if applicable)

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Collateral warranty requirements identified and addressed

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CHP appended to or referenced in the appointment documentation

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Client informed of their right to receive a copy of the CHP on request

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Appointment reviewed by authorised signatory on both sides

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Signed copy of appointment filed before commencing substantive work

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Dispute resolution mechanism noted (adjudication / arbitration / litigation)

Section 7

CPD Learning Outcomes

Identify and complete the RICS Standard Form of Consultant's Appointment 2022 correctly for a QS commission.
Understand the key liability clauses (aggregate cap, net contribution, expiry) and how they interact with PII.
Apply the RICS CHP requirement at appointment stage in compliance with Rule of Conduct 7 and the RICS Explanatory Notes (May 2022), Section 4.34.

Section 8