Professional Ethics in Construction and Engineering

Jason Challender, PhD, is Director of Estates and Facilities at the University of Salford and a member of its senior leadership team. He is also a Visiting Professor of the University of Bolton. He is a Fellow and Board Director of the Royal Institution of Chartered Surveyors and a board member of the North West Construction Hub. He has over thirty years’ client-side experience in the United Kingdom construction industry.

Author Biography xii

Foreword xiii

Acknowledgement xv

List of Figures xvi

List of Tables xviii

List of Appendices xix

List of Abbreviations xx

1 Introduction 1

1.1 Introduction to the Book 1

1.2 Structure of the Book 5

1.3 Summary 7

References 7

2 Application of Ethics in the Context of the Construction Industry 9

2.1 Introduction 9

2.2 The Importance and Significance of the Global Construction Industry 9

2.3 Ethical Challenges for the Built Environment 10

2.4 The Bespoke Nature of the Construction Industry 11

2.5 The Fragmented Nature of the Construction Industry 12

2.6 The Role of Construction Professionals in Managing Construction Projects 13

2.7 Different Perspectives on Ethics 19

2.8 Decision Making from an Ethical Standpoint 20

2.9 The Life Cycle of Buildings 22

2.10 Summary 27

References 29

3 The Significance and Relevance of Ethics 31

3.1 Introduction to the Chapter 31

3.2 What Are Professional Ethics? 31

3.3 A Brief Historical and Theoretical Perspective on Ethics 34

3.4 Historical Theories as Frameworks for Ethics 36

3.5 Concept and Purpose of Ethics 37

3.6 A Context to the Discussion and Perception around Business Ethics 38

3.7 Goals of Professional Ethics 39

3.8 The Importance of Professional Ethics for the Construction Industry 40

3.9 Ethical Principles and Codes for Construction Professionals 42

3.10 How Should Construction Professionals Recognise Unethical Practices? 44

3.11 The Need for Construction Professionals to Uphold Ethical and Cultural Values When Procuring Projects 45

3.12 Summary 46

References 47

4 Ethical Dilemmas for Construction Practitioners 49

4.1 Introduction 49

4.2 The Construction Industry’s Ethical Dilemma 50

4.3 Ethical Principles and Values 51

4.4 Factors Affecting Ethical Dilemmas 52

4.5 The Need for Construction Professionals to Uphold Cultural Values When Procuring Projects 53

4.6 Maintaining a Duty of Care in Tendering Processes 54

4.7 Corporate Hospitality and Gifts 55

4.8 Regulation and Governance of Professional Ethics 57

4.9 Whistle Blowing 58

4.10 Ethical Dilemmas around Self-Deception 60

4.11 Practical Examples of Ethical Dilemmas 61

4.12 Ethical Dilemmas that Apply to Different Roles 64

4.13 Summary 68

References 70

5 Types and Examples of Unethical Conduct and Corruption 71

5.1 Introduction 71

5.2 How Should Construction Professionals Recognise Unethical Conduct and Practices? 72

5.3 Examples of Acts of Unethical Behaviour and Corruption 72

5.4 Misuse of Power 74

5.5 Corruption 76

5.6 Fraud 82

5.7 Bribery 84

5.8 Conflicts of Interest 86

5.9 Ethics and Negligence Linked to the Design and Construction of Buildings 89

5.10 Global Corruption in the Construction Industry 93

5.11 Effect of Unethical Practices and Corruption 96

5.12 Remedies for Unethical Behaviours and Corruption 98

5.13 Summary 98

References 99

6 Regulation and Governance of Ethical Standards and Expectations 101

6.1 Introduction 101

6.2 The Problem of Maintaining Standards around Professional Ethics 101

6.3 Financial Regulations, Governance Policies and Delegated Authority 102

6.4 Ethical Governance at Tender and Appointment Stages 105

6.5 Summary 109

References 110

7 Ethical Project Controls in Construction Management 111

7.1 Introduction to the Chapter 111

7.2 Project Controls 111

7.3 The Importance of Project/Programme Boards 111

7.4 Gateway Processes for Project Approval and Business Cases 113

7.5 Summary 114

8 Developing an Ethics Toolkit, as a Practical Guide for Managing Projects 117

8.1 Introduction to the Chapter 117

8.2 Planning and Devising the Toolkit 118

8.3 Feedback and Evaluation of the Toolkit from the Perspectives of Construction Professionals 119

8.4 Ensuring and Monitoring Performance Throughout the Life of Projects: General Project Directory and Checklist 119

8.5 The Documentation that Construction Professionals Need to Consider at  Pre-Construction Stages 120

8.6 Managing Documentation and Processes Following Appointment of Contractors 121

8.7 The Documentation and Processes that Construction Professionals Need to Consider in the Construction Phases of Projects 123

8.8 The Documentation and Processes that Construction Professionals Need to Consider in the Post-Construction Phases of Projects 126

8.9 Summary and Usefulness of the Toolkit 131

Reference 131

9 Ethical Selection and Appointment Processes for the Construction Industry 133

9.1 Introduction to the Chapter 133

9.2 The Importance of the Contractor Selection Process 134

9.3 Articulation of the Problem of Selecting Contracting Partners from the Perspective of Construction Professionals 135

9.4 A Historical Perspective of the Problem 136

9.5 Risk Considerations 137

9.6 Benchmarking 138

9.7 Pre-Qualification Models and Methodologies 144

9.8 Designing a New Way for Construction Professionals to Select Their Contracting Partners 146

9.9 The Quality of Pre-Qualification Processes and Their Influence on Project Success 148

9.10 Conclusions 149

9.11 Summary 151

References 152

10 Codes of Conduct for Professional Ethics 157

10.1 Introduction to the Chapter 157

10.2 Ethical Principles for Construction Professionals 158

10.3 Codes of Conduct to Regulate Professional Ethics 158

10.4 Maintaining High Standards of Professional Conduct and Competence 160

10.5 Governance and Enforcement of Professional Ethics through Codes of Conduct 161

10.6 Misconduct and the Reputation of Professions 163

10.7 Embedding Ethical Codes, Behaviours and Standards into Organisational Culture 163

10.8 Strategies for Improving Codes of Ethics Implementation in Construction Organisations 165

10.9 Developing a Model Code of Conduct 168

10.10 Chartered Management Institute (CMI) Codes of Ethics Checklist 168

10.11 The Royal Institution of Chartered Surveyors (RICS) Codes of Conduct 170

10.12 The Royal Institution of British Architects Codes of Conduct 174

10.13 The Chartered Institute of Building (CIOB) Codes of Conduct 174

10.14 Summary 176

References 178

11 Implications in Practice for Ethics in the Construction Industry 179

11.1 Introduction 179

11.2 Reputation and Image Implications for the Construction Industry on Unethical Practices 180

11.3 The Effects on Construction Project Performance Brought About by Unethical Practices 181

11.4 Upholding Ethical Practices 184

11.5 Remedies for Unethical Behaviours and Practices in the Construction Industry 185

11.6 Summary 188

References 189

12 Summary of Key Points, Reflections, Overview and Closing Remarks 191

12.1 Introduction 191

12.2 Summary of the Key Issues Raised Throughout the Book 191

12.3 Final Reflections, Overview and Closing Remarks 202

Appendix A Anti Bribery Policy 205

Appendix B Counter Fraud and Response Policy 211

Appendix C Criminal Finances Act Policy 221

Appendix D Template for the Gateway 1 Project Proposal 227

Appendix E Template for the Gateway 3 Business Case Process Business Case 229

Appendix F Example of a Contractor Competency Questionnaire 243

Appendix G Example of a Project Execution Plan (PEP) 249

Appendix H Example of a Health and Safety Contractor’s Handbook 271

Appendix I RICS Regulations and Guidance Notes 279

Appendix J RICS Frequently Asked Questions Document Linked to Their Global Professional and Ethical Standards 283

Glossary of Terms 287

Index 289