On the 2nd of July 2025, I had the opportunity to participate as a speaker in the webinar organised by RICS, entitled “Valuer Registration: Red Book Compliance”. The session was held within the scope of the Valuer Registration programme, which aims to ensure that registered valuers comply with the requirements of the Red Book Global Standards. The event also featured contributions from fellow professionals João Garcia Barreto, MRICS, and José Covas, MRICS.
I was responsible for presenting and commenting on VPS 1, 2, 3, and 6 — the so-called Valuation Technical and Performance Standards. These standards form the technical core of the Red Book and structure all stages of the valuation process, from the moment of instruction through to the delivery of the final report. They are mandatory for all RICS members and are designed to ensure that valuation practice is conducted with transparency, technical rigour, and in compliance with the International Valuation Standards ( IVS).
The VPS — or Valuation Technical and Performance Standards — play a structuring role in the valuation process. They guide the work of the certified valuer, helping to clearly define the assumptions, methods, and limitations of the valuer’s engagement, and ensuring that the final report aligns with the terms agreed upon with the client. These are not mere recommendations — the Red Book explicitly states that the VPS are mandatory and must be fully applied, unless there is a properly justified reason for departure, which is rare and must be appropriately documented.
VPS 1 addresses Terms of Engagement — more specifically, the definition of the scope of work. This standard requires the valuer to clearly identify the client, the asset to be valued, the legal interest, the purpose of the valuation, the basis of value, the valuation date, the assumptions and special assumptions adopted, the due diligence to be undertaken, the sources of information to be used, the format of the report, the limits of liability, and the fee basis. It must also include a reference to the complaints procedure (where the valuer is subject to RICS regulation), as well as consideration of ESG factors whenever relevant to value. This formalisation is not only a technical requirement but also a legal safeguard for both parties.
As I had the opportunity to explain during the webinar, VPS 1 can be seen as the contractual foundation of the valuation: it is the document that defines what will be done, under what conditions, and with what objectives. Its proper drafting is essential to avoid ambiguity and to ensure that the valuation meets the requirements of traceability and professional accountability.
In the following articles, I will go into further detail on VPS 1, 2, 3, and 6, analysing their requirements, the most common errors in their application, and the ways in which they contribute to enhancing the credibility and quality of our work as valuers. The aim is to foster a culture of rigour and responsibility, to strengthen the standing of the profession, and to ensure the confidence of our clients, regulators, and users of valuation reports.