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PROFESSIONAL PRACTICE 1 QSB 60604

SCHOOL OF ARCHITECTURE, BUILDING & DESIGN


BACHELOR OF QUANTITY SURVEYING (HONOURS)

PROFESSIONAL PRACTICE 1
[QSB 60604]

Assignment: Professional Ethics


March 2018 Semester

Lecturer: SR ANG FUEY LIN


SR LOO SEONG KING

Daphne Tan Li Wen 0329055


Eric Wee Hiong Kiet 0329601
Foo Van Jean 0330017
Foo Zhi Fung 0320226
Loh Wei Ting 0328314
Melvin Tan 0324938
Ong Chia Hong 0318458
Satesh 0321419

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TABLE OF CONTENT
Introduction Page 1

1.0 Profession and Occupation

(a) Key differences between a profession and an Page 2-Page 3


occupation.

Page 4-Page 6
(b) Quantity surveying, Construction Management and
Contracting

2.0 RICS Code of Ethics

Certificates of Group Members Page 7 –Page14

3.0 BQSM Code of Ethics

(a) Ten provisions under the Quantity Surveyors (Amendment) Page 15 – Page 19
Rules 2016, Part IV Code of Professional Conduct.

(b) Professional duty of care and standard expected of Page 20- Page 21
Quantity Surveyors.

Conclusion Page 22

Bibliography of References Page 23- Page 24

Peer Evaluation

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Introduction

In the beginning of this report, the definition of occupation and profession will be examined.
A profession is recognized through the education background, standards of practice, specific
skills and knowledge and is competent to perform the duty assigned. The discussion is then
followed by various roles in construction industry including Quantity Surveying,
Construction Management and Contracting, justifying each appropriateness to be considered
as a profession. One of the mandatory competencies as a professional practitioner is
professional ethics as a standard of service expect from the general public, distinguishing
professionals from others in the industry. Therefore, statutory bodies including The Royal
Institution of Chartered Surveyors (RICS) and Board of Quantity Surveyors Malaysia
(BQSM) are formed to safeguard the public interest through imposing strict regulations and
ethical standards on all of its members. The code of conduct articulates the core values to be
demonstrated by their members and also serve as guidelines to embody “best practice”.

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1.0 Profession and Occupation

(a) It has been suggested that a profession may be distinguished from an occupation.
Elaborate on the key differences after researching into this area.

Definition of Profession and Occupation

Profession - According to Cambridge Dictionary, profession can be defined as any type of


job that requires extensive training or a particular set of skills, which are usually respected by
the society since it involves a certain level of education. A people who is a profession that
provides personalised services can be known as professionals, since it is guided by a certain
rules and regulation, set up by the respective regulatory body. The closest example for a
profession are Quantity Surveyor, Architect, Project Manager, Engineers and so on.

Occupation - Occupation can be defined as the kind of economic activity undertaken by an


individual daily for earning income. As compared to profession, occupation is only paid for
their services, but not paid for their knowledge. The closest examples for occupation are
drivers, technician, cleaners, clerks, police, etc

Key differences between Profession and Occupation

1. A profession requires extensive training and specialized knowledge. On the other


hand, an occupation does not require any extensive training.

2. Unlike occupation, the profession guided by a certain rules and regulation, set up by
the respective regulatory body.

3. A professional is independent, for example his work is not influenced by any external
force. Meanwhile, there is a lack of independence for occupation because the person
performing the occupation has to follow the commands of his supervisors.

4. A training is a must for a profession to undergo because it requires a certain set of


skills and knowledges whilst occupation may not be required to.

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5. Generally, the profession is regulated by a particular or respective professional body


statute whilst an occupation is not.

6. An profession gets paid according to his knowledge and expertise, while an


occupation gets paid for what he produces.

7. The profession can also be known as occupation when the person is paid for utilising
his skills and expertise.

8. As for profession, they will normally be correlated in a certain responsibilities.


Whilst, an occupation does not necessarily equipped with such responsibilities.

9. The salary in the profession is relatively higher than in occupation.

10. The professionals are respected by the society and have a higher status in the society
as compared to the occupation since it involves a higher level of education.

Summary of comparison between Profession and Occupation

Profession Occupation

Training Compulsory Not Necessary

Basis of pay Skill and Knowledge Product and Services

Education Higher requirements Lower requirements

Code of conduct Yes No

Degree of independence Completely independent Less independent

Salary Generally higher Varies from low to high

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(b) Is quantity surveying, construction management and contracting considered professions?


Explain and justify your views for each.

Quantity surveying

A Quantity Surveyor (Q.S.) is responsible in building cost planning, cost control, and
contracts management, throughout the entire life cycle of the project from inception to post-
completion. The main task is to provide financial advice and cash flow data of a construction
project. To do so, a professional quantity surveyor must acquire comprehensive knowledge of
construction and its methods, construction laws, accounting, as well as working knowledge of
design and technical aspects of various engineering disciplines in the building industry.

Besides, Q.S profession is statutorily regulated under Board of Quantity Surveyors


Malaysia(BQSM). After pursue of undergraduate course, significant period of practical
experience is compulsory before aspirants are recognised as professionals. A clear path is set
by the professional body for student to register himself as a graduate Q.S. and advance from a
provisional Q.S to a professional Q.S then finally as a consultant Q.S. Q.S. are also bound to
a code of conduct or ethics specific to the distinct profession. Clients rely upon the Q.S’s
expertise for proper work done, and he/she shall maintain strong code of ethics against
exploiting their clients.

One of the nature of this profession - autonomy and accountability when handling projects is
achieved through the standardisation and formalisation of skills and knowledge. Q.S are to
hold themselves ultimately accountable for all financial-related matters in a building project.
Great responsibility comes with high risk hence continuous professional development is seek
through the career path as a well-recognised Q.S.

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Construction management

Construction manager plans, coordinates and oversee construction projects from beginning
till completion of building. It is also their responsibility to ensure that all aspects of works are
code compliant and conform to schedules. Whilst license is not required for construction
managerial role in Malaysia, knowledge training is essential for managers to effectively
execute best practice via sophisticated software tools to run large, complex projects (capital
projects). Thus certification is valuable to demonstrate the construction manager’s knowledge
and experience.

A further inquiry into the professional’s liabilities enables better justification toward the job
scope of a construction manager. Generally, professional’s liabilities are the legal obligation
with their errors and/or negligence during the course of practice of work. In construction
management, some of the key liabilities include: design errors, construction inspection,
quality control, health and safety of site, coordination, timeliness, defects etc. Professional
work that entails poor conduct of codes, inadequate skill or even carelessness may cause
serious financial damage to the client.

Construction management is a core competency within construction industry. If a building


project is large and complex, it is necessary for greater oversight, risk management and
bureaucratic procedures by specialized personnel in bringing the successful delivery of a
project. While some may recognise the professional nature of this role, that recognition is yet
to be acknowledged widely enough, and therefore not protected. Such is the objectives set out
by the Association of Construction Project Managers Malaysia (ACPM) - to elicit formal
recognition for the profession of Construction Management from the public and private
sectors in Malaysia.

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Contracting

Contracting is the process of formation, analysis and execution of contracts by parties of a


building project to optimize the operational and financial value with the risk being kept to a
minimal level. It provides legal coverage for all aspects of the construction contract from
tendering stage, ongoing construction activities to post-termination.

For capital projects that involve multiple contracts and parties, it is essential to appoint
contract managers to oversee the assessment of contracts and be in charge of administration
from pre-contract phase to completion phase. This is important to the client, contractor and
consultants not only to determine that the work is proceeding in conformity with the
agreements, but also because it allows a final opportunity to detect any inaccuracies,
ambiguities or inconsistencies in the design and build process.

Similarly a contract manager should master good negotiating, problem-solving and


communication skills as well as possessing a good knowledge of construction activities and
methodology. Along with the high legal awareness of the construction industry which is
useful in offering solutions when dispute arises. It can be argued that it is in the areas of
contract administration, being a core element of multi-level businesses and projects, that most
contracting personnel and management seek to raise the standards of professional practices.

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C1

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C2

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C3

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C4

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C5

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C6

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C7

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C8

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3.0 BQSM Code of Ethics

(a)Ten provisions under the Quantity Surveyors (Amendment) Rules 2016, Part IV Code of
Professional Conduct

1. Clause 26.Conduct of registered Quantity Surveyors

Clause 26.1(A) states that Quantity Surveyors have a duty to maintain professional
knowledge and skill at a level which ensures that they deliver an efficient and effective
service to the highest standard. Q.S.shall continue their professional and ethical development
throughout their careers hence strengthening the value of Q.S profession amongst various
parties of consultants.

QS shall act with integrity and be objective at all times to uphold their profession with good
reputation. Acts that will affect personal or Board reputation shall be refrained, common
misconduct of practice are expanding the services provided to deceive client in paying more
than necessary.

2. Clause 26a. Public Interest

A QS shall exhibit trustworthiness in serving the public when conducting his duty, as a true
professional will always place the public good before mere financial reward. For example, a
QS shall not recommend a contractor simply because of his low tender sum without adequate
consideration on structural or public safety in order to to win a project, especially when the
contractor selection is driven by price-data-only paradigm or personal relationship instead of
the contractor’s capability and past records in similar projects.

In the event of the client’s objective is contrary to the public interest, the Q.S. shall
reconsider the job and openly discuss with the Client, or even to the extent of informing the
statutory board if the consequences may affect the public. Characteristic of acting in public
interest will not only help to build a strong foundation for the career as a professional but also
foster public confidence and trust.

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3. Clause 26.1(A) & 26.(4)


Q.S. normally have access to more information regarding price variation, material and
construction cost. If the information is of concern of client or may affect their conduct of
operation, it is the Q.S.’ responsibility to be open and transparent in sharing the appropriate
information and advice base on the client’s needs. For example, broken piles are to be
replaced at a site, the Q.S has to investigate on behalf of the Client to find out whether it is
due to unforeseen soil condition or negligence of engineer or piling contractor. So that the
Client may decide whether they should make payment for extra piles, or decline the claim
due to the other party’s negligence.

4. Clause 27. Discharge of duties

QS shall not accept or offer any remuneration or commission without the consent of his
client, instead, he or she shall carry out their obligations with complete honesty. Times when
the contractor invites the QS for luxury dine and wine session especially around the variation
period, the QS has to reconsider whether to attend the event or be courteous and careful of
what not to accept if he accept the invitation. Nevertheless, sharing the full facts including
potential risk and side effect with the client and make work as transparent and intelligible as
possible is part of QS’ obligation.

As stated in Clause 27.4, without the approval from the Board, a QS shall not set up a
construction company or owns substantial share in other material supply firm as he will likely
to have personal interest which is in conflict with his professional duties to the client.
Otherwise, the QS shall discharge their duties and responsibilities to the client with care,
efficiency and diligence.

5. Clause 29. Reputation

A QS shall always have awareness of upholding the profession reputation, he or she shall act
in a way that promotes positive competition in the field of quantity surveying. Damaging
others reputation to put their own gain as a priority is prohibited such as to secure a job by
spreading false news on social media, or creating deceptive information to deny
responsibility among the consultant team.
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6. Clause 30. Advertising and soliciting prohibited

Similar to most profession, a QS shall not involved in any advertisement or solicitation that
comprise inaccurate or misleading statement of facts. A profession varies from regular
marketing promotion, an explicit comparison between the services offer by other QS firm is
not allowed. According to the guideline determined by the board, QS is allowed to promote
himself in which he may use business card with appropriate information stated such as firm
name and business address. Whilst the best way to promote oneself is through his/her
performance and credibility when exercise his/her professional duty.

QS has to be courteous in receiving offer or gift which may contain appearance of bribery, in
reverse, he is prohibited to offer any gift or remuneration to secure works as this is an
unprofessional behaviour in contrary to the values of BQSM that promotes fair competition.

7. Clause 32. Fairness in construing and administering contracts

As a professional Q.S, integrity and honesty are the core qualities to uphold at all times in the
conduct of their business. The consultant Q.S. should remain fair and neutral in generating
tender reports when evaluating the tenderers’ capabilities and proposals during tender stage.
Neither conflict of interest nor bias comments should be allowed to override the Q.S.’
obligation and judgement.

There is also duty of independent judgement and applying discretion by the Q.S in the
context of handling contract between the Client and a Third Party. The Q.S must act
independently and exhibit a courteous, conscientious, and generally professional manner in
making decisions according to the terms of contract in order to keep the best interest of both
legally-binding parties.

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8. Clause 33. Restriction on entering professional partnership

As a professional, a QS is not allowed to commit fraud or misrepresentation towards


others on their credibility to provide services. For example, it is against the rule where a non-
registered QS may attempt to deceive a client by misleading them to employ or to enter a
contract with him with high charges imposed assuming if they are accredited one or even
with expanded service scope which is untrue.

Besides, a QS shall not conceal any existence facts from the Board that may cause him to
be disqualified by the Board as a registered member. QS is also encouraged not to contravene
the restrictions and to perform any conditions set by the Board. QS shall not let the company
directed by himself or with large shareholding to suffer or to incur losses both before and
after acquiring the approval from the Board.

9 . Clause 34. A registered Quantity Surveyor practicing as Consulting Quantity


Surveying Practice not to intervene in or take over the practice of another

BQSM aims to maintain fair competition among quantity surveyors by setting condition
in taking over former QS job for an ongoing project. Issuance of written confirmation by the
client and former QS are required. On top of that, he has to be officially informed by the
Client that other QS has been terminated in accordance with the provisions of any contract.

To achieve an upright representation of the board, the QS is not suppose to attempt to


supersede another member, partnership or corporation whose appointment with employer has
not been terminated or discharged. Not to mention the act of securing an opportunity among
their competitors by means of undercutting or reduction of fees which is apparently against
the code of conduct.

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10. Clause 35. Acting in dual capacity

Similar to other profession, a Consultant QS shall prevent being involved in two different
roles for the same project regardless for a Client or a contractor unless specific instructions
has given by the employer. Cases when a consultant QS is engaged in another contractor
company tendering for the same project, be it in a direct or indirect manner, he or she may
gain access to confidential materials causing potential unfairness or bias in tendering process.
Another possibility of unfairness towards the client may occur is when the Q.S acts in another
capacity of being an advisor of other party (i.e. interior designer, engineers) in the same
project, his/her stand to serve the Client’s interest would be unclear and contradicting.

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(b) Professional duty of care and standard expected of Quantity Surveyors

In Clause 28(1) of Part IV Code of Professional Conduct, the Conditions of Engagement


states that the QS has to prepare a Memorandum of Agreement(MOA) with the Client before
the appointment of Professional Q.S. Service. The main reason of such procedure is to
maintain and improve the overall standard of this profession as well as inspiring confidence
among the client and the public. Having globally recognized standard is important especially
when interdependent working relationship and indirect competency exist between different
parties in construction industry.

The first two passage under Clause 5 indicates the consulting Q.S engaged by the Client shall
perform reasonable skills, care and diligence. He/she who owes the Client a contractual duty
is to be expected of a competent Q.S. It relates to the Schedule in Section C of MOA, which
further illustrates a Q.S, services and categorizes them into two types - the basic services and
the additional services.
1) Fundamentally, the scope of basic services covers day-to-day job commonly practiced
by the Q.S. from cost estimate at the preliminary stage, preparing Bills of Quantities, tender
documents and contract document, followed by post-contract stage that consists of valuation
and final account.
2) The additional service refers to jobs that are required occasionally such as feasibility
studies, preparing final cost for contract based on provisional Bills of Quantities,
remeasurement, or attendance for arbitration.

Unlike other industry, construction projects normally progress throughout a longer period of
time until its completion date. The consulting Q.S. will be paid according to the proportion of
the services provided within each stage. As the weightage of total fees has shown, Bill of
Quantities plays the most significant part in Q.S.’ professional service. Clause 5(a) of MOA
states that all Bill of Quantities shall be prepared based on the Standard Method of
Measurement 2, a widely recognised methodology used in Malaysia. This rule aims to
provides a fair and accurate system for tendering, as well as avoiding disputes arising from
ambiguities or misinterpretation. Therefore, a consultant Q.S. must possess a deep
understanding of SMM2 and be well versed in preparing Bill of Quantities.

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Exercising discretion is also an integral part of being a Q.S. He/she shall not disclose any
information to the tenderers until the letter of award is issued. Divulging tender details of
competing tenderers does not only affect the Q.S reputation, but also a criminal offence.
Besides particulars of tender documents, certain information such as architectural design and
future developments may be necessarily required by the Q.S. in the course of carrying out
professional service. For instance, the consultant team for MRT stations will know every
future location of MRT stations well in advance. Such proprietary information and
intellectual property rights shall be respected during the contract period.

In order to avoid conflict of interest, the MOA states that the consulting Q.S. shall not
involve in any of the construction or supply contracts which are related to the project that
he/she is providing service for. If one profited from his/her role as Q.S. by communicating
the tender sum and adjusting to win the tender, such act has violated her duty of care and can
be charged with lawsuit. Supply of materials to the project by family members or any who
has a close personal relationship with the Q.S may give rise or even the appearance of a
conflict of interest. Hence the Client must be fully informed prior to the Q.S. engagement in
the related project. The Conflict of interest carry the risk of consequences which may affect
the entire construction industry. Poor workmanship, delayed timeline or even new contractors
with capability may not have opportunities in result of unfair competition.

In Section C of MOA, the schedule of fees is to protect the rights of both parties, ensuring the
Client pays the appropriate amount in exchange of professional service which is up to
standard. The classification of projects varies in scale of work and time required, for the
purpose of charging the percentage fees as well as making clear of scope of work and its
standard, the Client and QS shall take this as reference.

Under the conditions of engagement and scale of charges, the registered Q.S. shall notify the
Board a copy of the letter of appointment or MOA duly signed between both parties within
thirty days of written confirmation of appointment. With the expertise of the Board, it helps
to objectively evaluate the positions of both the Client and QS are in and the chances of
prevailing in a legal action. Thus, enabling the construction project to take off smoothly in
the future

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Conclusion

This report outlines the differences of profession and occupation which emphasize on the
requirement and specialization of a Quantity Surveyor. For a Quantity Surveyor to conduct in
appropriate manner at all times, he must have knowledge of the provision in the Quantity
Surveyor(Amendment) Rules 2016 where he can gather various types of provision to help his
client and himself legally and without any harm towards others. A good Quantity Surveyor
should possess high level of standard and exercise duty of care towards the client.
Professional ethics eventually defines a person through his professional decision and action
towards crucial situation. An individual with good professional ethics are more reliable and
trustworthy which enables them to achieve higher professional standard. Professional ethics
will always be an important quality to cope with challenges and work in a professional
mannerer with other consultant.

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