D39PZ Procurement and Contracts
Unit 2: Professional Ethics - Tutorial
/The scenarios below present possible situations that could arise in your professional life. You should consider your allocated scenario and, with reference to your personal values and the values and standards of any professional institutions (or other bodies) you think are appropriate, provide a considered response.
Scenario 1
You are the professional employed by the client to produce the tender documentation for a project which is being procured using the traditional procurement route on a lump sum basis.
You:
- have compiled the tender documentation;
- have sent the tender documents to several competing tenderers for pricing;
- have received tender prices back from the tenderers and have reviewed them for any mistakes, errors or qualifications made by a tenderer; and
- have advised the client to award the contract to the cheapest tenderer.
The client has acted on your advice and has formed a contract to construct the works with the recommended tenderer. This tenderer has been appointed as the contractor and their tender price has been adopted as the contract sum.
During the two week tender period given to the tenderers to prepare their prices, no tenderers raised any queries regarding the contents of the tender documents (namely the drawings, specifications, and bills of quantities).
Work on site has been under way for some time. When preparing the next month's interim valuation, you have discovered that the quantity of blockwork in the bill of quantities that you prepared is wrong by some considerable margin. Changing this quantity to the correct amount will add £20,000 to the contract sum. All the blockwork on site is complete. Other than you, no one appears to have noticed your mistake.
What would you do in this situation and why would you do it?
Scenario 2
You are a construction professional and are the commercial director of a medium-sized regional contractor.
You have completed several small residential developments for a local property developer over the last few years. Up until now, this client has been satisfied with your work. You are aware that this client will be undertaking several similar projects in the next few years and you expect to be asked to complete this work for him.
On a project you are currently undertaking for this client, the client has changed his mind about the required work several times and, as a consequence of this, you have incurred unexpected loss and expense. You have notified the client that you intend to submit a claim for loss and expense. You can prove that you have incurred these costs as a consequence of the client's actions and you are, therefore, fully entitled to have them reimbursed under the terms of your contract with the developer.
The client has responded to your notice by telephoning you to suggest that you "forget about the claim if you want to work for him in the future." You have spoken with this client's quantity surveyor who has told you to do what the client says.
What would you do in this situation and why would you do it?
Scenario 3
You are a construction professional who has recently been employed by a national retail chain to oversee the development of several new shops. Each of these projects will be completed by a different contractor, working in a different part of the country.
Your new employer has asked you to procure these projects using the traditional procurement route. Your boss has given you a contract to use to employ each contractor. This contract has been written by the client. It is not one of the many standard forms of contract available to the construction industry. Your new employer is experienced in the use of its customised contract, whereas it will be unfamiliar to each contractor.
On reading through this contract you realise that it is heavily weighted in the client's favour. Many of the rights you would expect a contractor to have, and which are not otherwise provided by common or statue law, are missing. You are particularly concerned about the absence of any right of the contractor to ask for additional time or payment if it is held up or incurs cost as a consequence of the client's actions.
You feel that it is ethically unsound to use this contract because you think it exploits the small, local contractors who will be constructing each new shop. You are considering leaving your new job because of the professional compromises you are being asked to make. However, in the current economic climate you do not think you will find another job easily.
What would you do in this situation and why would you do it?
Appendix A: The RICS Professional and Ethical Standards
The information below is provided by RICS. You should use it to inform your decisions, but should also consider any other professional values you think are relevant (and identify these in your responses).
RICS Professional and Ethical Standards
RICS has a set of central standards/values it expects members to apply in their work. Following this set of standards is one of the key features that defines the professionalism of all chartered and technical surveyors. RICS members are expected to base all their actions and judgements on these Professional and Ethical Standards:
- Take responsibility
Be accountable for all your actions - don't blame others if things go wrong, and if you suspect something isn't right, be prepared to take action.
- Treat others with respect
Treat everyone with courtesy, politeness and respect and consider cultural sensitivities and business practices.
- Always provide a high standard of service
Always ensure your client, or others to whom you have a professional responsibility, receive the best possible advice, support or performance of the terms of engagement you have agreed to.
- Act with integrity
Be honest and straightforward in all that you do.
- Act in a way that promotes trust in the profession
Act in a manner, both in your professional life and private life, to promote you, your firm or the organisation you work for in a professional and positive way.
Appendix B: The CIOB “Rules and Regulations of Professional Competence and Conduct
The text below is extracted from the CIOB Rules and Regulations of Professional Competence and Conduct and defines this institution’s expectation of ethical practice.
Rules
1.Members shall, in fulfilling their professional responsibilities and the duties which they undertake, have full regard to the public interest.
2. Members shall demonstrate a level of competence consistent with their class of membership.
3. Members shall at all times act with integrity so as to uphold and enhance the dignity, standing and reputation of the Institute.
4. Members undertaking work in a country other than their own shall observe these Rules and Regulations so far as they are applicable.
5. Members shall discharge their duties with complete fidelity and probity. In particular they shall:
5.1not divulge to any person, firm or company any information of a confidential nature relating to the business activities or processes of their employer or client acquired during the course of their work;
5.2not, without the permission of their employer or client, render any service, with or without remuneration, which conflicts with the interests of their employer or client;
5.3ensure, when providing an advisory service, that the advice given is fair and unbiased;
5.4ensure, when undertaking any other construction related activity, that all such work is in accordance with good practice and current standards and complies with all statutory and contractual requirements;
5.5at no time improperly offer or accept gifts or favours which would be interpreted by the Institute as exerting an influence to obtain preferential treatment.
6. Members shall not undertake work for which they knowingly lack sufficient professional or technical competence, or the adequate resources to meet their obligations.
7. Members who are not competent to undertake part or all of a particular advisory service shall either decline to give advice or secure appropriate competent assistance.
8. Members shall only use the distinguishing letters of membership and appropriate description prescribed in Bye-Laws 21 and 22 and in accordance with Professional Conduct Regulation 1.
9. Corporate members only are permitted to use the logo approved by the Council for use by members in connection with their advisory service, in accordance with Professional Conduct Regulation 2 and the guidelines published by the Institute from time to time.
10. Members providing an advisory service are required to obtain professional indemnity insurance to cover the full liability of any advisory service offered and to abide by Professional Conduct Regulation 3.
11. Members undertaking any other construction related activity are required to maintain insurances and indemnify their client against the risks for which insurance is commonly effected arising out of the works in respect of workmen, third parties and adjoining properties.
12. Members shall not maliciously or recklessly injure or attempt to injure, whether directly or indirectly, the professional reputation, prospects or business of others.
13. Members shall keep themselves informed of current thinking and developments appropriate to the type and level of their responsibility. They should be able to provide evidence that they have undertaken sufficient study and personal development to fulfil their professional obligations in accordance with the current guidelines for Continuing Professional Development (CPD).
14. Members shall only advertise their services in accordance with the conditions set out in Professional Conduct Regulation 4. Within this framework they are permitted to make their experience and availability known to individuals and organisations where it is believed that an opportunity may exist for their services.
15. Members shall at all times have comprehensive knowledge of, and due regard for, legislation in respect of Health, Safety and Welfare as it affects all parts of the building process, from design, construction, maintenance to demolition. Members shall be responsible for ensuring that colleagues and others involved with the building process are aware of and understand their responsibilities under such legislation. In particular members are expected to:
15.1 have competence to undertake risk assessment and to ensure that the outcome from the assessment is followed through into safe systems of working;
15.2 be committed to providing a safe, clean and tidy working environment for all concerned in the building process, and at all times to comply with legislation and best practice;
15.3 provide and encourage all under their control to undertake training and continuing development in Health and Safety matters;
15.4 have a Health and Safety plan for any building activity, to keep the plan current and to ensure that the plan is implemented and adhered to;
15.5 ensure that all records are properly kept, documented and filed for easy access and inspection, and available for audit at all times;
15.6 be prepared and committed to take disciplinary action against any individual or individuals who abuse or ignore any regulations, putting themselves or any others at risk.
16. Members shall not discriminate on the grounds of gender, race or ethnic origin, sexual orientation, marital status, creed, nationality, disability or age and shall seek to eliminate such discrimination by others to promote equal opportunities.
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