IEM PI Section B-Question 10

IEM Professional Interview

Section B - Questions on Regulation s on Professional Conduct

Question No. 10:

Essay 10: Code of Ethics (Appointment)

Most projects are awarded on competitive bidding basis. Supposing you had been the designated engineer of one of the bidders that was not awarded with the letter of intent by the Client. You are then approached by the ‘winner’ to join the Consultant Team. Should you accept the second appointment? If yes, describe the situations, which might be seen as conflict of interests. If no, describe the reasons and/ or clear cut situations why you should decline the second appointment.

(The following write-up was prepared (written) by Mr. BAY prior to his sitting for PI on Feb 2014. It is shared here for reference of other candidates.)

Introduction

We, as engineers, do not injure directly or indirectly the prospect of another engineer. In the same time, we shall be faithful and honest with our client and employer. In discharging our duty and carrying our works, we shall bear in mind that fair and honest dealing with all parties is essential principle. If there is conflict of interest of oneself with others, we shall act with integrity and fair toward others.

For the scenario which I was approached by the “winner” to join his consultant team, I presume the invitation to bid and the project are of design and build contract. I was the engineer of another contractor who has not successful bidding the contract. Upon announcement of the “winner”, the “winner” offers the appointment as their engineer to us.

In my view of points, I may accept the invitation because of the following reasons and with the following conditions.

Completion of duty and responsibility to current employer

For design and build contract, which both contractor and consultant are working together to bid the project, contractor is the leader and appoint his consultant. The letter of appointment is often issued after successful bidding of the project. For ethical practise in the construction industry, the original engineer working together with contractor shall be appointed. In other words, no letter of appointment is issued or no official appointment of engineer will be carried out if the bidding is not successful.

During the bidding process, engineer shall be faithful and honest to his employer. He applies his best knowledge, skills and efforts in assisting his employer to bid the contract. Upon successful bidding and with the official appointment, he works together with his employer to ensure successful implementation.

If fail in the bidding stage, engineer’s duty and responsibility to original employer has completed. Hence, I may consider the invitation of the “winner” subject to condition in the following paragraphs.  

No improper termination of consultant of “winner”

For construction industry, it is only considered ethical and appropriate to appoint consultant who have assisted the contractor during the bidding works once successful in the bidding process. However, there is always some bad “apples”. Errant people may like make use of another’s efforts.

Therefore, I shall communicate and check the reasons of termination of the consultant of the “winner”. I shall consider accepting new appointment if there is no errant happening in the termination of services of another engineer. If the works have started, I shall only take over if there is written consent by the engineer and formal notification by “winner” that the services of other engineer have been terminated and no arrear is due.

In other words, I shall only accept the appointment of “winner” after receipt of release letter of the engineer.

No fee reduction or discount

In order to prevent unethical practises by errant players in the industry, there shall not be fee reduction or similar like discount, for acceptance of appointment as new engineer to the “winner”. Engineering consultancy services (ECP) are professional services to design and advice the client for reliable, valued and front end engineering works. It is unavoidable for clients to bargain for cheaper price but engineers shall not compete with one another by slashing their fee. The act will downgrade the technical competency of engineers in the long term and make the profession an unattractive one.  

In my view of points, it is good if the scale of fee recommended by BEM to be adhered to.

No disclosure of business information and copyright with current employer

All works, done with current employer, could be considered property and business information of current employer. Though we fail to bid, we shall not or simply disclose the information to the “winner”. This is because current employer could still compete and bid for other project with current information, which are works of both current employer and us. Furthermore, I will possibly his engineer too. If I disclose the information to the “winner”, it is conflict of interest.  

Rights to review, redesign, use and not to apply the design of original engineer of the “winner”

Engineer bears his responsibility with him to grave. Though the design of other engineer is well prepared and done, the engineer who take over the jobs shall monitor and ensure successful implementation and construction. He therefore need to review, check and possible redesign if not all but still there could be substantial part needed to be checked.

By accepting the invitation or appointment of the “winner”, it is merely change of responsible engineers to monitor, supervise and handle the project. The new engineer shall still discharge his duty and responsibility to “winner”.

Hence, engineers shall not accept wrongful offer by “winner” with the all kind of reasons to substitute engineer and try to appoint a cheaper one.   

Conclusion

As an ethical and responsible engineer, we shall take care the interest of our employer and ensure duty and professional services rendered to him are completed. We shall avoid conflict of interests by not assisting two clients who are opposite competing sides at the same time. If it is unavoidable, we shall inform both of them and let them to make decision or we choose one.  

In the same time, we do not attempt to take over the business prospect of another engineer unless the engineer consents and there is no unethical and errant practise in replacing the original engineer.