Significant changes in any industry will often result in uncertainty and confusion – but in a fast-moving area such as property, understanding these changes can be vital in order to avoid unwanted cost implications.
Recently, we’ve experienced transactions or negotiations that could have encountered costly delays because of a failure to fully grasp the relationship between the RICS 6th Code and the new 2nd Edition (incorporating IPMS).
As clients are attempting to get to grips with the new terminology and the various IPMS classes, we have seen significant differences in the clarity of instruction and understanding of requirements. In some contracts and appointments, it’s evident that the client doesn’t really know what the latest code of measuring practice is and - more importantly - whether it’s aligned with their actual requirements.
The incorporation of IPMS Residential has thrown up bigger questions about its application and its relationship to planning requirements, Section 106 and overage agreements. But are all stakeholders aware of the code and how it is applied? Recent experience, again, is telling us that answer is not always yes.
We have now measured a considerable number of office buildings and found significant differences in floor areas – sometimes as much as 4-8% - dependent on the age, design and configuration of the buildings.
Bottom line: Like it or not, the application of IPMS clearly impacts the size of your build.
If you would like to have greater clarity on the RICS 2nd Edition, IPMS and the implications for your business, please drop me a line to arrange a meeting.
Or if you would like expand the knowledge of a larger group we can provide CPD’s at your offices.