Consideration of: Concepts of Professionalism Relying on Work Prepared by Others

1. Consideration of:Concepts of ProfessionalismRelying on Work Prepared by Others Lunchtime Forum Central Alberta Branch December 7, 2004

2. Outline • Concepts of Professionalism • Challenges for Professionalism • Relying on Work Prepared by Others • Due Diligence and Authenticating Documents • Examples

3. Definition of ‘Professional’ “A calling requiring specialized knowledge and often long and intensive preparation including instruction in skills and methods as well as in the scientific, historical, or scholarly principles underlying such skills and methods, maintaining by force or organization or concerned opinion high standards of achievement and conduct, and committing its members to continued study and to a kind of work which has for its prime purpose the rendering of a public service.”* *Webster’s Third New International Dictionary, Unabridged. Merriam-Webster, Inc., 1993.

4. Challenges for the Professional • Maintenance of public trust • Misperception of being elitist • Misperception of being a monopoly • Ability to handle increasing public expectations • Multiple constituents/stakeholders • Increasing specialization and complexity • Relying on work prepared by others

5. Encouraging Professionalism Recognition of challenges and developing appropriate responses • Mentoring and daily demonstration of professional behaviour • Involvement in technical or professional societies • Promotion of professional and corporate responsibility

6. Relying on Work Prepared by Others – Review Process Determine necessity to use work by others Member uses alternate source of information Consider purpose and application of work by others No Complete detailed assessment Continue due diligence Yes Assess reliability and validity of data source Assess applicability for intended use Clarify professional responsibility Member is satisfied that work by others is acceptable. No Yes Document due diligence, assumptions, limitations, any qualifications with authentication, caveats/disclaimers and basis for decision to use work by others.

7. Demonstrating Due Diligence • In order to demonstrate due diligence, the professional member should be able to provide evidence of the following: • Knowledge of duties under the current acts, regulations and codes. • Adequate training to demonstrate skill. • Use of existing procedures to mitigate problems where practicable. • Identification of potential problem areas based on available information and data. • Professional work practices not compromised by schedule or budget constraints. • Qualifications to authentication and necessary caveats or disclaimers. • Sufficient documentation.

8. Professional Member’s Responsibility in Authentication ‘A professional member shall only apply his or her stamp to professional documents he or she has prepared or to professional documents that were prepared under his or her supervision and control. In the case of professional documents prepared by someone else, a professional member shall only apply his or her stamp to the documents after thoroughly reviewing the documents and accepting professional responsibility for them.’* * As per APEGGA’s Practice Standard for Authenticating Professional Documents, April 2002

9. Example 1: Relying upon other Professions • Multidisciplinary projects (e.g., environmental projects) may involve other professions such as P.Chem., P.Biol., P.Ag. • Due diligence requires that professionals shall undertake only work that they are competent to perform by virtue of their training and experience • Outside of their expertise, the opinion of subject matter experts must be solicited and considered • Responsibilities of each discipline expert must be delineated and understood • Review process outlined in ‘Relying on Work Prepared by Others’ as part of Due Diligence exercise

10. Example 1: Relying upon other Professions • P.Eng. with Mechanical Engineering background from oil company hires consultant to do soil sampling & chemical analysis for abandoned property • Results from soil sample indicate high lead concentrations • Consultant P.Chem. notifies P.Eng. that lead concentrations exceed allowable limits for landfilling • P.Eng. disregards P.Chem.’s expert opinion and proceeds to send contaminated soil to landfill • P.Eng. could be held responsible: • Unethical conduct: • ..shall…hold paramount the health, safety, and welfare of the public and have regard for the environment • …shall undertake only work that they are competent to perform by virtue of their training and experience • AEPEA(R) 192 – Disposal of Hazardous Waste

11. Example 1: What should be done? • Determine necessity for relying on others • Consider purpose and application • Complete detailed assessment • Assess Reliability and Validity • Assess Applicability of Information as Intended • Clarify and Demonstrate Professional Responsibility • Determine acceptability of work by others • Exercise and document due diligence

12. Example 2: Relying upon Research Data • P.Eng. relies on loading tables developed by National Research Council • Interpolates between values in table to design quonset, without verifying calculations • Stamps drawings indicating that structure complies with ABC • Stipulated Order from Discipline Committee found P.Eng. guilty of unprofessional conduct for not sufficiently reviewing the structure nor undertaking sufficient calculations to verify structural capability.

13. Example 2: What should be done? • Determine Necessity of using NRC data • Consider Purpose and Application • Complete Detailed Assessment • Assess Reliability and Validity of data • Assess Applicability of Information as Intended • Clarify and Demonstrate Professional Responsibility • Determine Acceptability of Work by Others for this application • Exercise and Document Due Diligence

14. Example 3: Relying upon P.Eng. from another Canadian jurisdiction • Owner has design for ‘big box’ store, done by BC P.Eng., that he wants to build in Red Deer • Pressure to fast track project • Wants to ‘buy a stamp’ from AB P.Eng. to get development & building permits

15. Example 3: Relying upon P.Eng. from another Canadian jurisdiction • Mobility Agreement allows BC P.Eng. to become registered in APEGGA within 48 hours – best option • If BC P.Eng. cannot be registered, AB P.Eng. must thoroughly review the work sufficiently to satisfy him/herself that design meets requirements • Conduct due diligence to ensure reliability and validity of other professionals’ work • If this is not done, could be found guilty of: • Unethical conduct: • ..shall…hold paramount the health, safety, and welfare of the public and have regard for the environment • …shall undertake only work that they are competent to perform by virtue of their training and experience • …shall conduct themselves with integrity, honesty, fairness and objectivity in their professional activities • Criminal or Civil charges

16. Overseas Outsourcing • Current value of major projects planned for AB is $89.6B* • Trend in outsourcing engineering work to off-shore firms is continuing • If foreign professionals are not licensed in AB, their credentials are not recognized • To rely on work of other professionals, must conduct due diligence • AB professional must thoroughly review the work sufficiently to satisfy him/herself that design meets statutes, regulations, standards, codes, by-laws or other rules associated with the work *As per Alberta Economic Development

17. Example 4: Relying upon Overseas Outsourcing • Foreign based engineering company sets up ‘front’ in AB, with P.Eng. as marketing agent • The agent secures projects and sends work overseas where work is done without supervision of a P.Eng. • Completed documents are returned to agent for authentication and delivery to client

18. Example 4: Relying upon Overseas Outsourcing • Non-resident professionals may become registered with APEGGA as Foreign Licensees – best option • AB professional must thoroughly review the work sufficiently to satisfy him/herself that design meets regulatory requirements • Conduct due diligence to ensure reliability and validity of others’ work • If this is not done, could be found guilty of: • Unethical conduct: • ..shall…hold paramount the health, safety, and welfare of the public and have regard for the environment • …shall undertake only work that they are competent to perform by virtue of their training and experience • …shall conduct themselves with integrity, honesty, fairness and objectivity in their professional activities • Criminal or Civil charges

19. Summary • Challenges to professionalism are increasing - especially demands to rely on work prepared by others. • We must recognize challenges to professionalism to better prepare ourselves to deal with them. • Due diligence involves assessing the validity, reliability, and applicability of relying on work prepared by others. • Effective self-regulation depends upon the vigilance of individuals to ensure that the public is protected. • Self regulation is a privilege – one that can be rescinded if we fail.

20. APEGGA References available online at www.apegga.com • The Concepts of Professionalism V.1.0 - September 2004 • Guideline for Relying on Work Prepared by Others V1.0 - June 2003 • Guideline for Ethical Practice V2.0 - March 2003 • Responsibilities for Engineering Services for Building Projects V1.0 – April 2001 • Practice Standard for Authenticating Professional Documents V2.0 – April 2002 • Practice Standard for the Evaluation of Oil And Gas Reserves for Public Disclosure V1.0 – April 2003 • Strategies for Success in Mentoring - A Handbook for Mentors and Protégés - 2004 • Guideline for Environmental Practice V1.0 - February 2004