Definition

A conflict of interest arises when a surveyor's personal interests, or their duty to one client, conflicts with their duty to another. The RICS Conflicts of Interest global professional statement (1st edition, 2017, effective 1 January 2018) provides a mandatory framework for identifying and managing such conflicts. It sets out three categories: own interest conflicts (the member's interests conflict with a client's); party conflicts (duties to two or more clients conflict); and confidential information conflicts (information held for one client could benefit or harm another).

Why this matters for Conflict Avoidance, Management and Dispute Resolution

  • Unmanaged conflicts of interest are a frequent source of professional complaints and a trigger for disputes between clients and their advisers.
  • In dispute resolution contexts — acting as mediator, adjudicator, arbitrator or expert witness — impartiality is fundamental; a conflict disqualifies the surveyor from the role unless all parties consent.
  • The statement is mandatory; non-compliance is a professional conduct breach under the RICS Rules of Conduct.
  • APC assessors test whether candidates can articulate the three categories of conflict and explain how they would manage each in practice.

Key principles

Identifying conflicts

Firms must run conflict checks at the point of engagement and whenever there is a material change in scope. The check must extend to the firm as a whole — including colleagues in different teams or offices who may be acting for an opposing party or holding relevant confidential information.

The three categories

Own interest conflicts arise where the member has a personal financial or other interest in the outcome. Party conflicts arise where the member acts for two clients whose interests conflict. Confidential information conflicts arise where information from one client could benefit or harm another. Some conflicts can be managed with safeguards; others — particularly severe party conflicts — require the firm to decline or withdraw from one or both instructions.

Disclosure and consent

Where a conflict can be managed, the surveyor must disclose it fully to all affected parties, obtain their informed written consent, and put in place appropriate safeguards such as information barriers — for example, ethical walls between different teams. The disclosure must be clear enough for the client to make an informed decision.

Conflicts in dispute resolution appointments

A surveyor appointed as mediator, adjudicator, arbitrator or expert witness must declare any conflict before accepting the appointment. Even an apparent conflict — a prior professional relationship with one party — should be disclosed and the parties given the opportunity to object. Failure to disclose is a serious professional conduct breach that can result in the appointment being set aside and the surveyor being referred to RICS for disciplinary action.

Relevant RICS guidance and legislation

  • RICS Conflicts of Interest global professional statement (1st edition, 2017, effective 1 January 2018) — mandatory framework for all members and regulated firms.
  • RICS Rules of Conduct (effective 2 February 2022) — members must act with integrity and in clients' best interests, which includes proactive conflict management.
  • Arbitration Act 1996 — an arbitrator's failure to disclose a conflict can constitute a serious irregularity justifying challenge of the award.

Ethics and Rules of Conduct angle

Conflict of interest management sits at the heart of the RICS obligations of honesty and integrity, competence and service. A surveyor who fails to identify or disclose a conflict places their own convenience above the interests of the client — a fundamental breach of professional ethics. The Rules of Conduct require proactive disclosure, not passive waiting. In dispute resolution appointments, an undisclosed conflict undermines the entire process and erodes public confidence in the profession.

APC-style Q&As

Q (Level 1)What are the three categories of conflict of interest under the RICS global professional statement?

The three categories are: own interest conflicts (the member's personal interests conflict with a client's); party conflicts (duties to two or more clients conflict); and confidential information conflicts (information held for one client could benefit or harm another).

Q (Level 1)When must a conflict of interest check be carried out?

A conflict check must be carried out at the point of engagement and repeated whenever there is a material change in the scope of work or new parties become involved. The check must cover the firm as a whole, not just the individual surveyor.

Q (Level 2)You are asked to act as mediator in a dispute between two property companies. You realise you acted as valuer for one of them two years ago on an unrelated matter. What do you do?

I would disclose the prior relationship to both parties immediately, explaining its nature and duration. I would invite both to confirm in writing whether they consent to my appointment notwithstanding that relationship. If either party objects, I would decline. I would also assess whether the prior work has left me with any confidential information that could be relevant to the current dispute before deciding whether to accept.

Q (Level 2)Can a party conflict ever be managed so that you can continue to act for both clients?

In some cases, yes — but only with full disclosure to both clients, their informed written consent, and appropriate safeguards such as information barriers. However, the RICS statement makes clear that some party conflicts are so fundamental they cannot be managed, and in those cases the firm must decline or withdraw from one or both instructions. The test is whether a reasonable and objective observer would be satisfied that the conflict has been properly managed.

Q (Level 3)You are acting as expert witness for an employer in an adjudication when you discover that a partner in your firm is separately advising the contractor on a related matter. How do you handle this?

(example) This is a serious party conflict that must be addressed immediately. I would report it to my firm's conflicts partner and seek advice on whether it can be managed or requires withdrawal from one or both instructions. The conflict between my firm's duties to the employer and to the contractor is a structural problem that cannot be resolved simply by my recusing myself from internal discussions. Unless a robust information barrier can be established and both clients consent, the firm would likely need to withdraw from one instruction. I would document every step taken and notify the adjudicator if there was any risk that the conflict could affect the integrity of my evidence.