ETHICS IN THE CONSTRUCTION INDUSTRY

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INTRODUCTION

In the construction industry, quality, time and cost have been recognised as being the most cardinal elements in client satisfaction. However, in an attempt to enhance client satisfaction in the construction industry, a number of factors have been identified as being supreme in accomplishing the above captioned fundamental issues. Among the focal issues that have been identified by construction professionals are ethics and professionalism. However, this context will define and address the ethics in the construction industry, with particular attention to the roles and responsibilities of a quantity surveyor and outlining their influence on quality and cost of construction projects.

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ETHICS IN THE CONSTRUCTION INDUSTRY

Microsoft Encarta dictionary (2009) defines ethics as a system of moral principles governing the appropriate conduct for a person or group. The same source encompasses the understanding of the viewpoint by defining a moral as giving guidance on how to behave decently and honorably. However, the definition of professional ethics recommended by the working party is: giving of ones best to ensure that clients interests are properly cared for, but then again in doing so the wider public interest is also recognised and respected. This is taken from Howard L.Fs professional ethics and the rules of conduct of the Royal institution of chartered surveyors. As the number of occupations and specialists increase and the working environment become morally sensitive, the adoption of moral principles, and the enforcement of standards become concerns of increasing importance to society. This is because when mistakes in moral behaviour occur, the trustworthiness of the entire profession is compromised. The problem that faces any occupation community is one of ethical quality control. However, it regulates itself effectively in order to justify its sovereignty, while ensuring that the clients of its members and society as a whole benefit from the occupations and the individual specialists actions, rather than becoming their victims (Brien, 1998). The Council for the Built Environment is an organization whose primary functions is to promote and protect the interests of the public, through ethical standards being applied in terms of a sustainable built and natural environment. One such primary feature of this
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collection of Acts is the necessity for each professional body to draw up a code of conduct for its professional membership. This document is commonly referred to as a code of ethics (Meyers, 1987). In order to clearly understand ethics in the construction industry, it is good practice to look at the following guide to professional ethics in the quantity surveying profession. This actually cover a number of important professional ethics issues, these must be uphold and acted in an ethical and responsible manner. Organisations develop ethics into their own specific code. But clients, employees, peers and so forth judge against the codes. Some of the activities are already subject to statute, while others are mentioned in the rules of conduct. Moreover, all professionals must act according to the law of their respective country of origin as well as the set down codes. In order to understand ethics in the construction industry, one needs to have a view of what is unethical. The following are the things which are unethical in the construction industry; bribery, unfair conduct, collusion, fraud and so forth.
2.1 Inducements

Accepting the direct or indirect offer, payment, solicitation, bribes or inducements goes against the standards expected of a RICS member. The giving or receiving of gifts of low value for purely advertising or marketing purposes may be acceptable i.e., Christmas cards or gifts and indeed it is common practice in some professions. Hospitality received in the course of a business meeting, and which can be reciprocated, may also be acceptable, for instance, a working lunch or an invitation to a sporting or musical event. But anything where professional opinion or judgement or fair dealing might be adversely affected, it is unlikely to be acceptable (chipondes hand out, 2011) The quantity surveyors role of giving advice at the tendering stage is one delicate thing that requires one to have a negative attitude towards inducement. In addition, the factor of quality is intimidated in that there is no competition among the stakeholders which is actually a vital component in enhancing quality in construction projects.
2.2 Health and safety

The management of health and safety matters as any other critical business activity is cardinal; this involves setting targets for improvement and measuring, appraising and reporting on performance (chipondes hand out, 2011). A quantity surveyor can also act as a project manager; hence the aspect of health and safety is important in the sense that the occurrence of either an accident or outbreak of a disease on site may intimidate the cost in
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that construction work can either be suspended by local authority or workers themselves suing the firm for such tragedies.
2.3Fair competition

Avoid all actions which are anti-competitive. Do not use market power or information in a way which may restrict competition. Making sure business practices avoid price fixing or other collusion with competitors and do not unduly limit selection or pricing available to clients. It is however the responsibility of everyone to act openly, fairly and respectfully at all times. Harassment on the grounds of race, religion, colour, nationality, disability, ethnic origin, sex or marital status is inconsistent with the status of a RICS member. It is also illegal. It is a requirement to make sure that recruitment policy and methods of gaining new clients are of a high standard. For instance, recruiting specialist staff from a competitor to undermine their effectiveness (i.e. poaching) is unethical. Or using your position in an organisation to promote the interests of your family over others of equal or greater competency is inconsistent with the standing of a RICS member (chipondes hand out, 2011).
2.4Money laundering

If you become unwittingly involved with a money launderer you may commit an offence even if you are merely suspicious of your clients activities. There does not have to be reasonable grounds for your suspicions. You need to put procedures in place to minimise the risk of committing a crime.
2.5Disclosure of confidential company information

Avoid unauthorised disclosure of confidential and sometimes price-sensitive information about your own firm, clients or suppliers. Trade secrets belong to the organisation concerned and the careless, reckless or negligent handling of intellectual property can cause considerable harm. This may result in Prosecution. In addition, Insider trading places a person with special knowledge gained through their position at an advantage over others. The disclosure of information gained through your work to another person, other than in the necessary course of business, may be detrimental to the organisation. Therefore a quantity surveyor as a RICS member is not to take advantage of insider knowledge during the tendering stage.
2.6Accountability

All business transactions must be accurately and completely accounted for and reported in the records of the firm. This is in line with good accounting practice and corporate procedures
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(Chipondes hand out, 2011). A quantity surveyors role in this respect are; Cost planning during the design stage of a project to ensure that the client obtains the best possible value for his moneys worth. Also Ensuring that the costs are distributed in the most realistic way throughout the various sections or elements of building and that the tender figure is kept within the clients budget. Moreover, the QS prepare final accounts at the end of the project. (Seeley, 1988)
2.7Alcohol and drug abuse

The use of alcohol or drugs may create a safety hazard; it may also be illegal. If you act under the influence of drugs or alcohol you are not in a position to give your best services to your client or firm/employer (Chipondes hand out, 2011).
2.8Whistle blowing

Employers need to make sure there are suitable arrangements for the internal review of decisions, policies and actions in case a member of the organisation raises concerns of unethical behaviour. People should be encouraged to raise matters for review, without being penalised, even if this results in a loss to the firm, a client or another individual, unless it is done with malicious intent. This is now covered by legislation (Chipondes hand out, 2011).
2.9Copyright and ownership of files

The reproduction, distribution or alteration of copyrighted materials (computer software, books, audio and visual tapes, etc.) without the permission of the copyright owner deprives the copyright owner of their rights. And could bring RICS into disgrace. Make sure you are aware of the rules for ownership of files, who are entitled to access them and how long they should be kept. Criminal sanctions may apply. Since the commercial advantage of specialist techniques can be protected by copyright and patent law. It is your responsibility to ensure any advertising material with which you are linked is truthful, accurate and not misleading. Comparisons drawn with competitors and colleagues must be based on fact and avoid innuendo and disparagement. Otherwise it is likely to devalue the profession in the eyes of the public (Chipondes hand out, 2011).
2.10Protection of the environment

Making efforts to avoid pollution and damage to the environment through your own actions and the advice you give. Choponde stated in a lecture on ethics that it is not only the structure that one must build but ones career. Hence it is the role of the QS as a specialist to see to it that such standards are put in place.

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2.11Relations with local communities

RICS Members work in most areas of the world and must recognise that the local community will use their actions to judge members performance, and that of other professionals. It is important RICS members treat the indigenous population of an area fairly and honourably (Chipondes hand out, 2011).
2.12Political and social behaviour

You must act in a socially responsible manner within the country in which you work. You must differentiate between activities carried out in a personal capacity, such as making payments to political or other organisations, and your professional activities as a surveyor. [However, you have the right to make your position known on any matter which affects yourself, employees, clients or (if a company) shareholders.] You must place your duty to your client or employer before your own political and other beliefs or activities. In the event of a perceived or actual conflict, think about declining or withdrawing from the commission in line with this guide (Chipondes hand out, 2011).

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CONCLUSION

Ethics have been defined by Encarta dictionary (2009) as a system of moral principles governing the appropriate conduct for a person or group. It further defines a moral as giving guidance on how to behave decently and honourably. The following are ethics in the construction industry to which every professional is expected to abide by: fair conduct, attention to detail (excellence), consent, Protection of the environment, good Relations with local communities, Political and social behaviour, Health and safety conscious. In addition a quantity surveyor as a professional must be able to carry out the following duties patterning to his career: Preparing approximate estimates in very early stages of the construction process, and giving advice on alternative materials and types of material. Cost planning during the design stage of a project to ensure that the client obtains the best possible value for his moneys worth. Ensures that the costs are distributed in the most realistic way throughout the various sections or elements of building and that the tender figure is kept within the clients budget.

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ETHICS IN THE CONSTRUCTION INDUSTRY

Negotiating rates with contractors on negotiated contracts and dealing with cost reimbursements contracts, design and build, management and other forms of contracts. Advising on the financial and contractual aspects of the contractors claims. Giving cost advice and information at all stages of the contract and preparing cost analyses. However, the above articulated roles and ethics in the quantity surveying profession are cardinal in attaining the quality, time and cost aspects in client satisfaction.

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4.0 REFERENCES

1.Department, R. P. (2000). Professiona Ethics Guidance Notice. 2.Gimmler, D. A. (n.d.). The Discourse Ethics. 3.Marin, L. (2011, March 25). Ethics in the Labour Work of Construction Industry. 4.Seely, I. H. (1988). Building Quantities Explained. London: MACMILLAN EDUCATION LTD. 5.Seely, I. H. (1988). Building Quantities Explained (4th Edition ed.). London: MACMILLAN EDUCATION LTD. 6.Simushi, S. (2010). Standard Method of Measurement (SMM7). The Surveyor Institute of Zambia. 8.Velasquez, M., Andre, C., Shanks, T. S., & Mayer, M. J. (2010). Issues in Ethics. 9.Zulu, E. (2011). Tender Document.

10.Seeley, Ivor. H, (1988), building Quantities explained, 4th Ed, London, MacMillan education .

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Contents
1.0 2.0 INTRODUCTION ........................................................................................................................... 1 ETHICS IN THE CONSTRUCTION INDUSTRY ............................................................................. 1

2.1 Inducements............................................................................................................................. 2 2.2 Health and safety ..................................................................................................................... 2 2.3Fair competition ......................................................................................................................... 3 2.4Money laundering ...................................................................................................................... 3 2.5Disclosure of confidential company information ...................................................................... 3 2.6Accountability ............................................................................................................................ 3 2.7Alcohol and drug abuse ............................................................................................................. 4 2.8Whistle blowing ......................................................................................................................... 4 2.9Copyright and ownership of files ............................................................................................... 4 2.10Protection of the environment ................................................................................................ 4 2.11Relations with local communities ............................................................................................ 5 2.12Political and social behaviour .................................................................................................. 5 3.0 CONCLUSION ............................................................................................................................... 5 4.0 REFERENCES ........................................................................................................................ 7

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