Professional Ethics in Construction and Engineering
Description
A comprehensive and incisive how-to guide that walks readers through the implementation of robust ethical standards in everyday construction management and decision-making
Recent and high-profile incidents--including the 2017 Grenfell Tower tragedy and the Lakanal House fire in 2009--have been attributed to failures in the building construction, design, and certification industries. Some commentators have suggested that, while professional construction organizations are bound by codes of ethics, such codes may be downplayed or sometimes even ignored in the day-to-day activities of construction professionals.
Professional Ethics in Construction and Engineering is a practical and industry-aligned guide on ethical practice in construction management. The book addresses how existing ethical standards should be applied in daily practice and offers case studies and examples to illustrate their effective implementation. The author also provides a toolkit that can be employed by frontline managers facing common ethical dilemmas.
Readers will find:
* Thorough discussions of how problematic and dangerous ethical situations arise and how they should be addressed
* In-depth explorations of conflicts between legal and moral expectations, as well as mismatches between clients' business goals and the duties of contracting organizations
* Playbooks for how impactful decisions should be made and how to uphold ethical standards and values
* Comprehensive review of existing ethical standards and the legal requirements binding construction professionals found in organizations like RICS, RIBA, and the CIOB
A must-read document for construction management practitioners, Professional Ethics in Construction and Engineering will also be invaluable to construction clients, contractors, surveyors, and architects, as well as students of construction-related disciplines at undergraduate and postgraduate level.
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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.
Content
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
1
Introduction
Professional ethics in construction and engineering
Consider ethics, as well as religion as supplements to law in the government of man.
Thomas Jefferson (1807)
1.1 Introduction to the Book
The above powerful and unequivocal quotation from the former President of the USA reinforces the importance of ethics in the society and world we live in. It is perhaps the same quotation which has provided the focus for this book in an attempt to encourage construction practitioners to take a more proactive ethical stance in project management, change current working practices in the construction industry and improve project outcomes. Accordingly, the main focus of the book is to explore the role of ethics in construction management. In this regard, the overarching aim of the book is to create a factual client 'how to do it' guide or 'toolkit' for procuring more successful project outcomes. It is intended that this practical guide for construction practitioners can develop into a common due diligence framework on how to initiate, procure and manage construction projects and developments with ethical considerations at their heart. From this perspective, it will raise awareness of best practice and instil improvements in construction management with ethical compliance at the epicentre of project teams. It will seek to address the significant institutional risk that lies in the lack of a clear and consistent approach to ethics in projects and guidelines which are seldom universal and therein open to different interpretations. Such an approach will constitute a viable tool in ensuring effective, appropriate and successful interfaces of ethical standards and principles, via codes of conduct, in pursuit of improvements to construction management practices. Furthermore, it is also intended to provide an important insight into the influence of professional ethics in the success of construction projects and redevelopment programmes.
Despite the fact that few would disagree with the importance, values and principles of ethics, the practice of professional ethics has however traditionally not been an area for widespread reflection, consideration and focus within the construction industry. Cases have emerged over the last few years questioning the morality of the industry and the direction of its moral compass, bringing increased scrutiny upon it. In 2009 tender practices within the industry, associated with bid rigging or collusive tendering came under scrutiny by Competition and Markets Authority, resulting in multimillion-pound fines against over 100 main contracting organisations. The 2017 Taylor Review of modern working practices raised serious concerns about payment practices in the UK construction industry, especially the morality of supply chain management practices which have been seen to impose payment terms of up to 120 days onto sub-contracting organisations. In 2018, the collapse of Carillon led society to question the ethical practice of the industry. In addition, Dame Judith Hackett's independent review of Building Regulations and Fire Safety in 2018, following the Grenfell Tower disaster raised major questions about contractors' use of 'value engineering' to reduce costs as the expense of safety and once again led to society questioning the morality of the construction industry. Whilst events such as these continue to occur, bringing widespread negative publicity and reputational damage for the industry, rebuilding the confidence and trust of the general public remains a major priority. Farmer (2016) adopted medical metaphors, describing the construction industry as a sick and dying patient in urgent need of treatment if it was to survive.
Against this background, this book will provide further insight into the subject of professional ethics relevant to the construction industry and discuss the key areas of ethical standards, values and behaviours, environmental ethics, cultural change, governance and regulation amongst others. It will articulate, discuss and analyse some of the problems relating to adopting professional ethics and provide possible reasons to explain and understand why unethical practices exist. The potential importance of ethical principles and potential improvement measures to enhance and improve current practice, especially in the context of the UK construction industry, will also be articulated and discussed from different perspectives. Accordingly, in this regard the aim and objectives will be to expand the knowledge and breadth of understanding of professional ethics in the construction industry. Reflections will be presented together with possible recommendations for improvement measures and further research.
The book investigates the current arrangements that exist within the global construction industry, to create a more comprehensive understanding of the problems and dilemmas of unethical conduct. It explores and analyses the overall commitment of organisations and professional bodies to embed professional ethics into all construction stages which could be hindering the overall effectiveness of projects. This is intended to provide a suitable context for paradigm shifts in practice with measures to improve ethical values, principles and leadership as the catalyst for increasing project success.
A deficiency in appropriate and strong construction practitioner leadership to promote ethics in the construction industry has been highly documented by authoritative sources over many years (Boyd and Chinyio 2006; Kamara et al. 2002). The book will seek to address this ongoing ethical dilemma and act as a catalyst for improvements to the construction procurement processes. This is intended to encourage more transparency, honesty, integrity and openness between clients, their appointed consultants and the whole supply chain. This is a deliberate attempt to improve project management practices, which have arguably not been delivering the impact, and benefits in terms of successful project outcomes.
The book is intended to assist academics, construction-related practitioners and clients in their awareness, breadth of knowledge and comprehension of the issues around ethical considerations, with the overarching aim of delivering more successful project outcomes. This is felt to be particularly important as in previous studies into ethics in the built environment, very little attention has been focused on giving practical advice. The book has sought to infill the literature gaps through examination of traditional roles of clients, design consultants, main contractors and subcontractors and through providing guidance through the toolkit on potential improvement measures. Case studies and practical examples have been included to assist the reader on how theoretical perspectives can be applied to real-life construction projects and scenarios which involve ethical dilemmas. The book has also addressed academic calls for greater insight into how leadership around ethics can be created, mobilised and developed and more understanding of the resultant positive effects and impact that can be generated therein (Walker 2009). There will be frequent reference to construction practitioners' views and opinions throughout the book, and these have been sought through qualitative research carried out in 2020 from a small sample of semi-structured interviews.
There have been few books which have been written on the specific subject of incentivising appropriate professional ethics in construction specifically through a practical guide or 'how to do it' toolkit. Those which have been published have largely focused on theoretical studies examining different construction practitioner behaviours and relational analysis of clients with construction teams. Albeit the component elements of professional ethics have been covered previously and therein well-trodden ground, there has been very little to articulate how these can be incorporated into construction procurement strategies. The book, drawing on case studies from the authors' experiences and interviews, takes a different approach to professional ethics in the construction industry by asking some very fundamental questions:
- What is the importance and influence of leadership in influencing the strict compliance and adherence to ethical principles, values and standards?
- What is the extent to which good ethical standards, behaviours and practices can influence the success of construction projects?
- How can professional ethics be best embedded into the procurement of projects?
- What constitutes best practice and what is the extent to which the governance, regulation and practice of ethics can influence the success of construction projects?
In consideration of the above questions the book's objectives are:
- To be the standard reference for businesspeople in understanding how ethics affect projects and therein reducing construction-based risk.
- To explain in straightforward terms with practice-based examples, both real life and hypothetical, where ethical dilemmas may occur and how to steer construction practitioners to make the right business decisions and avoid immoral or illegal practices.
- To use case studies to look at patterns of ethical and unethical construction team behaviours and how these affect successes, failures and key risks on projects.
- To identify valued knowledge, skills, attitudes and behaviours and business practices that construction practitioners can use in their ethical approach to projects.
- To identify a set of clear guidelines, national or international, to support the adherence...
