The Construction Industry

1. The Construction Industry Professionalism & Ethics in Construction Trevor Maiseroulle

2. Definition • Professional – • 1. Following an occupation as a means of livelihood, • 2. Engaged in one of the learned professions, law/medicine, ? Construction? . • 3. A person who is an expert at their work.

3. Professionalism • American Institute of Constructors - CPC • an identifiable body of knowledge, (available through education) • a code of professional ethics, (offered by the profession) • a learned society, (demonstrated through examination). “ Implementing professional certification based on education and rigorously applied examinations will jointly raise the levels of construction education and professionalism”

4. Rationale for Construction Professional • A high level of entry enhances the reputation and quality of the profession. • The overall image of the construction industry is enhanced. • Construction in the form of professional services is reinforced to our customer/client as value added. • Meets employee aspirations for achieving individual professional status. • The status and recognition of learned professionals is transferred to young people and their parents. • A structured professional development program is created for incoming pre-professionals. • Crafts people have an opportunity to achieve professional status. • Construction education can focus on preparing students to successfully meet national entry requirements. • Contractor selection opportunities can be based on qualification and performance measures in addition to price. • An overall improvement in the pool of qualified constructors

5. ETHICS/MORALS/LAW • Ethics – • the body of moral principles or values held by or governing a culture, group or individual. A rule of conduct. • The discipline of dealing with what is good or bad and with moral duty and obligation • Ethics refers to well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics, for example, refers to those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. And, ethical standards include standards relating to rights, such as the right to life, the right to freedom from injury, and the right to privacy.

6. ETHICS/MORALS/LAW • Moral • Of or relating to principles of right or wrong behavior • Moral relates to conformity to established codes or accepted notions of what is right or wrong • Ethical relates to the issues of rightness, fairness or equity.

7. ETHICS/MORALS/LAW • Law • A binding custom or practice. A rule of conduct or action prescribed or recognized as binding or enforced by a controlling authority.

8. 2004 National Ethics Survey • Top management kept promises = 82% • Top mgmt. Observed misconduct = 22% • Common misconduct • Abusive behavior • Misreporting hours • Withholding needed information • 44% of non-mgmt employees do not report misconduct

9. Ethics in the Construction Industry • Code of Ethics • Contractual Obligation • Reality of Industry • Image of construction • Low-price mentality • Competition • Thin profit margins • Nature of employee

10. Codes of Ethics • American Institute of Constructors • A member shall have full regard to the public interest in fulfilling his or her responsibilities to the employer or client. • A member shall not engage in any deceptive practice, or in any practice which creates an unfair advantage for the member or another. • A member shall not maliciously or recklessly injure or attempt to injure, whether directly or indirectly, the professional reputation of others. • A member shall ensure that when providing a service which includes advice, such advice shall be fair and unbiased. • A member shall not divulge to any person, firm, or company, information of a confidential nature acquired during the course of professional activities. • A member shall carry out responsibilities in accordance with current professional practice, so far as it lies within his or her power. • A member shall keep informed of new thought and development in the construction process appropriate to the type and level of his or her responsibilities and shall support research and the educational processes associated with the construction profession.

11. Code of Ethics • Associated Builders and Contractors As a member of the Associated Builders and Contractors, Inc., I will strive to observe the following principles in the conduct of my business: • Maintain a standard of performance with the Owner's best interest and my obligations. • Quote only realistic prices and completion dates and perform accordingly. • Cooperate to the fullest extent with the Architect and other agents of the owner toward fulfillment of a common goal. • Solicit quotations only from firms with whom I am willing to do business. • Make all payments promptly within the terms of the contract. • Observe and foster the highest standards of safety and working conditions for my employees. • Establish realistic wage schedules for my employees commensurate with their ability and their industry so that they may enjoy the dignity to which they are entitled. • Actively participate in the training of skilled tradesmen for the future welfare of the Merit Shop industry.

12. Code of Ethics • Universally common ethical precepts • Do unto others as you would have them do unto you. • Respect Life • Truthfulness and Honesty • Accept Responsibility for Your Actions • Unity of Mankind • Unselfishness and Service to Humanity • Respect and Tolerance • Courage

13. FMI – ETHICAL SURVEY • http://www.fminet.com/information_resources/articles/m_c/leadership/EthicalPracticeSurvey.pdf

14. Ethical Questions • Your superintendent tells you that the last batch of concrete did not technically meet the strict requirements of the specifications. You know that what is in place is okay. What do you do?

15. Ethical Question • You are working for an owner who consistently cuts every proposed change order by 10-15%. Your project manager decides to pad each change order for negotiation purposes. What do you do?

16. Ethical Question • Is it appropriate for a general contractor to solicit a lower bid from a subcontractor by revealing the bid amount from the subcontractor’s competitor?

17. Ethical Question • Is it appropriate for a contractor to front-load the schedule of values, or the unit price line items in a contract in order to maintain a positive cash flow?

18. Ethical Question • Is it appropriate for an owner, contractor, or subcontractor to delay payment to their contracting partners and suppliers in order to gain interest on the delayed payment amount?