How To Start A Quantity Surveying Consultancy

Starting your own Quantity Surveying (QS) consultancy can be daunting. Yet with the right planning, structure, and mindset, you can build a profitable business that offers flexibility and long-term success. In this article we cover the following steps, from creating a business plan to meeting RICS requirements.

Step 1: Creating a Business Plan

A solid business plan is essential for keeping you focused and profitable. It should include:

Services & Clients: Define whether you’ll specialise in commercial management, traditional QS services, or dispute resolution. Identify key client types, such as contractors, developers, or private clients.
Pricing Strategy: Decide between day rates, hourly rates, or fixed fees. Research current market rates, ensuring your costs and profit margins are clear.
SWOT Analysis: Be realistic about strengths, weaknesses, opportunities, and threats.
Cash Flow Forecast: Map out expected income and expenses for at least 12 months.
Risk Management: Plan for late payments, contract gaps, and other financial challenges.

Step 2: Registering Your Business

Choose a legal structure that suits your goals:

Sole trader: Quick to set up but offers no liability protection.
Limited company (Ltd): Offers liability protection and appears more professional.
Limited Liability Partnership (LLP): Flexible if you have multiple partners.

Most QS consultancies opt for a limited company. You’ll need to:

Register with Companies House.
Pick a company name and appoint at least one director.
Register for Corporation Tax.
And consider VAT registration if you exceed the current threshold (£90,000 as of today).

Open a dedicated business bank account to keep finances separate.

Step 3: Meeting RICS Firm Requirements

If you want to be RICS-regulated:

Have at least one RICS-qualified person.
Hold professional indemnity insurance (PII) at RICS’ required level.
Implement a written complaints handling procedure with an Alternative Dispute Resolution (ADR) process.
Keep client money secure if you handle it, and ensure staff are trained.
Submit annual returns and be prepared for compliance checks.

Step 4: Getting Professional Indemnity Insurance

PII is mandatory for RICS-regulated firms and highly recommended for all QS consultancies to protect against claims of negligence or misconduct. Coverage levels depend on your turnover. You might also need:

Public Liability Insurance
Employers’ Liability Insurance if you hire staff or have multiple directors

Step 5: Setting Up Business Finances

Financial management is critical. You’ll need:

A business bank account for company transactions.
And, accounting software (for example, QuickBooks) to handle invoices, expenses, and tax.

Keep detailed records and budget for tax to avoid year-end surprises. Hiring an accountant can save time and money, ensuring you claim the right tax reliefs and stay compliant.

Step 6: Staff Training & CPD (Metroun Learning)

RICS-regulated firms must ensure staff, including directors, are properly trained. You’re also required to complete annual CPD. Metroun Learning offers relevant courses with tests and certificates, helping you maintain compliance. Visit metroun.co.uk for details.

Step 7: Ongoing Compliance

After launching, maintain compliance by:

Submitting an annual RICS return (if regulated).
Filing annual accounts and confirmation statements with Companies House.
Paying corporation tax and VAT on time.
Keeping financial records for at least six years.

If you employ staff, register for PAYE, provide lawful contracts, and observe health and safety regulations.

Step 8: Planning for Growth

Once stable, consider expansion. Before hiring or adding services:

Ensure a steady pipeline of work.
Understand tax and employment responsibilities.
Keep meeting RICS ethical and professional standards.

Growth is exciting, but a solid foundation keeps your business strong in the long run.

Conclusion

Launching a QS consultancy involves more than just finding clients. You must structure your business correctly, secure the right insurance, and comply with RICS requirements from day one. By planning thoroughly and staying organised, you’ll set yourself up for lasting success.

Introducing Metroun Learning

Metroun Learning is an online education platform, specific to Quantity Surveyors which can satisfy all your formal CPD needs. We offer over 45 hours of formal CPD, with new courses added each month. Although all courses amass to 45 hours of formal CPD, each individual course has been engineered so it can be completed during your lunch break. This can save you time, money & reduce your carbon footprint. Metroun Learning will not only satisfy your formal CPD needs, but you’ll also gain access to: