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SCHOOL OF ARCHITECTURE, BUILDING AND

DESIGN
BACHELOR OF QUANTITY SURVEYING

PROFESSIONAL PRACTICE 1 (QSB 60604)


NOVEMBER 2018

PROFESSIONAL ETHICS

ANG JIE NING 0328130


TAN JER RICK 0327403
WONG WEN NEE 0327653
WONG ZHI JUN 0327810
YAP YUEN THONG 0326557
YONG KANG SENG 0331857
YONG MAY SIA 0327724
YONG SHI QI 0327539
YOONG AI TENG 0328347

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Professional Ethics

TABLE OF CONTENT
1.0 Profession and Occupation
1.1 Definition of Occupation and Profession 4
1.2 Key Differences between Occupation and Profession 5
1.2.1 Code of Conduct 5
1.2.2 Training 5
1.2.3 Regulated by Statute 5
1.2.4 Higher Education 6
1.2.5 Basis of Pay 6
1.2.6 Degree of Independence 6
1.2.7 Status 6
1.3 Are Quantity Surveying, Construction Management and
Contracting considered as a profession?
1.3.1 Quantity Surveying 7
1.3.2 Construction Management 8
1.3.3 Contracting 8

2.0 RICS Code of Ethics 9 - 17

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3.0 BQSM Code of Ethics


3.1 Code of Professional Conduct
3.1.1 Provision 26 – Conduct of Registered Quantity Surveyor 18
3.1.2 Provision 29 – Reputation, etc. of a Registered Person
Not to Be Injured 18
3.1.3 Provision 30 – Advertising and Soliciting Prohibited 18
3.1.4 Provision 32 – Fairness in Construing and Administering
Contracts 19
3.1.5 Provision 33 – Restriction on Entering Professional
Partnership 19
3.1.6 Provision 34 – A Registered Quantity Surveyor as
Consulting Quantity Surveying Not to Intervene in or
Take Over the Practice of Another 19
3.1.7 Provision 35 – Acting in Dual Capacity 20
3.1.8 Provision 35A – Complaints Against Registered
Quantity Surveyor 20
3.1.9 Provision 35B – Lodgement of Complaint 20
3.1.10 Provision 35G – Order of the Board 20

3.2 Conditions of Engagement


3.2.1 Clause 28 21
3.2.2 Steps to Follow 21
3.2.3 Memorandum of Agreement (MOA) 22
3.2.4 Duty of Care 23
3.2.5 Standard Expectation of Quantity Surveyor 24

4.0 References 25 - 26

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1.0 PROFESSION AND OCCUPATION

1.1 Definition of Occupation and Profession

Many thinks that the term “occupation” and “profession” can be used interchangeably, but in
fact there is a slight difference between them.

Occupation refers to the kind of activity undertaken by a person for monetary compensation.
It is divided into the following categories:

• Business: When someone is engaged in any exchange, trade or production activities,


he is stated to be doing business.
• Employment: The occupation in which a person works for others and receives a set
and ordinary profits is employment.
• Profession: The occupation wherein a person renders services to others, through
making use of his knowledge and skills is a profession.

Profession is an activity which requires specialized training and a high degree of knowledge
in a specific field. It is normally obtained through studies at university, specialized training
or internship. A profession can become an occupation when a person is paid for his
particular knowledge and skills.

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1.2 Key Differences between Occupation and Profession

Basic for comparison Occupation Profession


1.Code of conduct X ✔

2.Training X ✔

3.Regulated by statute X ✔

4.Higher Education X ✔

5. Basis of pay Produce Skill and Knowledge

6.Degree of independence No independence Completely independent

7.Status Low High

1.2.1 Code of Conduct


Profession must follow a certain code of conduct and ethical code which is fixed rules
outlining the social norms, spiritual guidelines and obligations of, and right practices for
an individual which is set by a particular body.

1.2.2 Training
Training is not compulsory for occupation, whereas, profession requires training for
specialization in a particular field. Once a compulsory academic training is completed, a
specialized training is needed. It provides an opportunity for constant growth in the
profession. Experience and extra courses can add levels of skill and knowledge of a
professional.

1.2.3 Regulated by Statute


Generally, a profession is normally regulated by a professional body statute while an
occupation is not.

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1.2.4 Higher Education


A professional has to undergo higher education unlike a person engaged in an occupation.
As a professional, higher studies and qualified exam has to be completed by the person.

1.2.5 Basis of pay


Occupation gets paid for what he produces, however, profession is paid according to his
knowledge and skills. Normally, there is a limit of how much people can make in
occupation, whereas, profession gets higher salary based on how well prepared they are.

1.2.6 Degree of independence


Professional is independent because their work will not be affected by external force. But
there is a lack of independence in profession since the person need to follow the code of
conduct and usually have higher responsibility compare to occupation.

1.2.7 Status
Normally, Professionals have higher status in the society and are respected by others
compare to the occupation.

In conclusion, Occupation is a broader term which also includes profession. Occupation is an


activity that occupies a person time and energy to earn his livelihood. Profession refers to an
occupation that needs training to use their skills and expertise to be highly respected and
recognize by society.

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1.3 Are Quantity Surveying, Construction Management and Contracting


considered as a profession?

1.3.1 Quantity Surveying

Quantity Surveying can be considered as a profession. QS are able to prepare Bills of Quantities
that give out the pricing, quantities and materials required on a project. They also forecast the
material cost of a building even before it is built. Tender documents, contracts and other
documentation can only be prepared by QS who has extensive knowledge in this profession.

QS also helps contractors to prepare interim valuation which is a detailed documentation that
serves to receive payment before the work is done. Besides, QS is governed by professional
bodies such as RICS and RISM in Malaysia that govern and regulates the professional Quantity
Surveyors. Other than that, QS has to follow the code of conduct such as statutory duty, ethical
conduct, professional conduct etc. Some quantity surveyors are also trained in cost control
techniques to ensure projects are carried out in a certain way to save money and to ensure cost
certainty whereas some quantity surveyors are specialized in contracts management.

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1.3.2 Construction Management


In my opinion, Construction management is a profession. Construction management is a
professional service that manage the planning, design and construction of a project from the
beginning which is the pre-design stage until the end which is the closeout.

Construction management can control the project’s time, cost, quality and safety record.
Construction management is compatible with all project delivery systems which includes the
design-bid-build, design-build, etc.

A construction manager (CM) will ensure that the scope of work is skillfully adhered to and the
project is successfully delivered for all types of project, no matter large, small, international or
domestic.

Construction Manager, a profession which collaborates with and provides the oversight to the
owner, architect, general contractor etc. to complete the project on time, within budget and to
reach the client’s expected standard of quality. They do not perform the actual construction tasks
but act as advisors for the owner, overseeing the construction contracts. The CM is paid by
assuring that the project progresses smoothly and achieves the client’s business objectives.

1.3.3 Contracting
In my opinion, Contracting is also a profession. General contracting is a supervisory work that is
performed by the General Contractor (GC). They are responsible in managing and building a
project that is designed. They oversee the important renovation and building projects. Besides,
they also manage and hire subcontractors and other labours in the construction projects.

GC acts as the supervisor of the entire project where he ensures that the subcontractors are doing
their job and are being paid for their job correctly and in a timely manner. The General
Contractor is the main person that contacts with the client.

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2.0 RICS CODE OF ETHICS

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3.0 BQSM CODE OF ETHICS

3.1 Code of Professional Conduct


3.1.1 Provision 26 – Conduct of registered Quantity Surveyor

This provision is essential because it explains on the conduct a registered QS must have within
the industry. The QS professionals have obligation to act in the interest of the general public, to
do their work as guided by the code of Professional conduct that decided by the board. For
instance, a registered QS did his work with honesty, this create a bond of trust within QS and
client. This benefits to our profession as it will uphold the dignity, standing, recognition and
reputation of the QS profession.

3.1.2 Provision 29 – Reputation, etc. of a Registered Person Not to Be Injured

As a Registered Quantity Surveyor should not cause wilful act which is committed and knowing
that such act would cause injury to another Registered Quantity Surveyor. Any statement that is
made either in writing or orally will affect the reputation and prospect of business of a registered
person. Registered Quantity Surveyor shall adhere ethnical principles and standards to display
the highest standards of professional excellence. For instance, if a statement that indicate a
registered person did something dishonest, this action will hurt their reputation. The employer
will also hesitant whether to employ them.

3.1.3 Provision 30 – Advertising and Soliciting Prohibited

An advertisement is typically a public promotion of services. It contains notice and circular,


report or other documents and spoken announcement or forms that provided by or from the
authority of registered members which aim to develop Registered Quantity Surveyor’s practice.
Untrue, untruthful, out-of-date data or deceptive statement of facts, specific solicitation of
instructions and offer of payment or any consideration in form of money or a promise shall be
forbidden. Unjustifiable outcome expectations will be encounter as the advertisement contain
wrong information and misleading facts. Besides that, instructions which set by the Board allow
the Registered Quantity surveyor to advertise regarding with his profession in any way.

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3.1.4 Provision 32 – Fairness in Construing and Administering Contracts

This clause is one of the essential clauses as Registered Quantity Surveyor plays a key role in
administering the contracts and may be chosen as contract administrator. It is significant that
Registered Quantity Surveyor has to act fairly and unbiased in the process of managing and
construing the contracts eternally with the provisions of the contract. Additionally, Registered
Quantity Surveyor shall not be bias and prejudice in decision making when they face the arising
questions in the contract. Thus, this clause will eventually assist the Registered Quantity
Surveyor to settle the matter which will prevent disputes occurs and ensure the progress of
project proceed effectively.

3.1.5 Provision 33 – Restriction on Entering Professional Partnership

There are restrictions on entering professional partnership which includes deliberately be a part
of obtaining the Board approval to practice as a Consulting QS Practice. On the other words,
involve in granting practice is unlawful. The Board can withdraw an approval granted from any
company if QS assists or hide the existence of a fact. Other than that, Registered QS must not
involve himself or herself from allowing or inflicting any firm or relevance authority to practice
as a Consulting QS firm before getting approved by the Board, or by the means of the usage of
the name of the authority of the Board.

3.1.6 Provision 34 – A Registered Quantity Surveyor Practicing as Consulting Quantity


Surveying Not to Intervene in or Take Over the Practice of Another

This provision state that one quality surveyor shall respect others by not perform work extending
over another quantity surveyor as a consulting quantity surveying who had appointed by client.
For instance, one should not intentionally or unintentionally intervene another quantity
surveyor’s work by providing his point of view to the same client on the same project except on
the consent of that quantity surveyor. The reason is it may create unnecessary troubles such as
bring tension to other quantity surveyor, affect the relationship between each other, or even cause
the delay of project. Therefore, this provision is crucial as it highlighted not to interfere or take
over the practice of another.

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3.1.7 Provision 35 – Acting in Dual Capacity

Provision 35 stated that quantity surveyor should not provide his professional capacity to the
client and contractor at the same time, on the same project unless he got the instruction from the
client to do so. This is because the interest from both parties are different, hence it is very
important for the quantity surveyor to keep the client’s information private and confidential in
order to protect his rights.

3.1.8 Provision 35A – Complaints Against Registered Quantity Surveyor

Under provision 35A, if a qualified quantity surveyor gets wrong, anyone can file a complaint in
Board of Quantity Surveyors Malaysia (BQSM). The complaint shall be made in written form by
providing personal details of the complainant, the facts of complaint with supporting evidences,
signature of the complainant and information of counsel (optional) in order for BQSM to take
legal action. If there is missing of information, the complaint will be rejected by the Registrar.

3.1.9 Provision 35B – Lodgement of Complaint

As stated under provision 35B, the complaint will be lodged with the Registrar. Once the
Registrar receive the complaint, he will stamp the date of its receipt on the document and
determine whether to accept or reject the complaint. If the complaint is accepted, the complaint
will be sent to the Board for its action, in contrast, if the complaint is rejected, Registrar will
inform the complainant through letter of rejection.

3.1.10 Provision 35G – Order of the Board

If the Registered Quantity Surveyor or the Complainant neglects to attend the hearing before the
Disciplinary Committee at a point when a complaint is lodged against the QS or the firm and the
hearing date is settled, the said committee may continue to further investigate the complaint in
the case of the absences of the Quantity Surveyor or complainant on condition that the notice of
hearing has been devotedly served to both parties involved. The investigations shall proceed
without telling either party and from subsequently, base an assurance and request.

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3.2 Conditions of Engagement


3.2.1 Clause 28
Clause 28 lay out the following obligations for the CQS:
1. A registered Quantity Surveyor (RQS) shall inform his client in writing of the prevailing
terms and conditions in the Memorandum of Agreement (MOA) between the Client and the
Consulting Quantity Surveyor for Professional Quantity Surveying Services (hereinafter
referred to as the ‘Memorandum of Agreement’) as issued by the Board before accepting
any appointment.
2. The registered Quantity Surveyor shall inform the Board of such appointment by
submitting to the Board a copy of the letter of appointment or Memorandum of Agreement
duly signed between him and his client within thirty days of receipt of a written
confirmation of the appointment as a consulting Quantity Surveyor.

3.2.2 Steps to Follow


A Registered QS are required to follow the following steps before embarking on the project
according to the provision above:
I. Keep client informed of the existence of the Board’s MOA which consist of the Articles of
Agreement, General Conditions of Engagement and the Schedule of Fees.
II. Agree with the Client on the scope of the QS services which will decide the Schedule of
Fees for the project.
III. Acquire a Letter of Appointment prior to the execution of the MOA.
IV. Submit to the Board the particulars on the project as per standard Form
LJBM/CQS/Reg./1/10/2005 – Notification on the Appointment of Registered Consulting
QS to Undertake Quantity Surveying services in Malaysia pursuant to Rule 28 (2) of the
Quantity Surveyor (Amendment) Rules 2004 under the Quantity Surveyors Act 1967,
together with a copy of the Letter of Appointment or the MOA whichever is available
within 30 days.
V. Any minor change made to the MOA either as a deletion, an addition and a revision to the
clauses, must be initialed by both parties.
VI. The MOA must be signed by both parties and stamped; a stamped copy to be retained by
the Consulting QS and the original copy to be kept by the Client.

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3.2.3 Memorandum of Agreement (MOA)

Memorandum of Agreement (MOA) is a written document that shows a cooperative relationship


between two parties who wish to collaborate on a project. MOA describes the terms and details
of the partnership agreement and serves as a legal document. MOA is less formal than a contract,
but more formal than a verbal agreement. It can help to outline terms for nearly all new business
relationship and use to set up the foundation for a partnership by laying out specific objectives,
milestones, or final outcomes. In addition, critical financial details and preferred methods for
resolving disputes can be prepared. MOA provides the details that are required for a contract
despite it is not a substitute for a legal contract. A registered QS should consult with an attorney
on the legal parameters of the agreement.

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3.2.4 Duty of Care

Quantity Surveyor is involved in most phases of construction processes. Therefore, quantity


surveyors are not only owing duty of care to the parties they contract with, but also to the third
parties under tort. According to Part IV Clauses 26 (1), (1A), the duty of care of a QS is
generally the normal reasonable care, skill and diligence under these premises such as uphold the
dignity, reputation and standing of the QS profession.

The services that specified in the Schedule shall be provided by the consulting Quantity
Surveyor. Due to the practice of consulting QS profession in the relation to the project, they shall
perform all acts and matters which are usually performed by the QS. For example, they should
calculate and estimate the material, plant and labour cost in a project. The roles of QS are to
control and manage the finances of any construction project, giving advice on procurement
method, working to keep the project within the budget to ensure the construction cost does not
exceed the total amount that has been estimated.

To be a professional consulting QS, he or she shall not reveal any confidential information that
have been obtained or communicated while carrying out the work, duties and obligation under
the terms of the Memorandum of Agreement. Without the written approval of the Government,
the QS shall not use the previous information that have been obtained or communicated from the
past project. This will maintain the reputation of the QS and even gain the client’s trust and
confidence.

In addition, consulting QS shall avoid attempting to supplant another registered QS who has
already been appointed by an employer or client directly or indirectly. He also shall prevent his
subsidiary or associate participating in any activities that are related to the project other than the
specified professional services unless the government has agreed in writing. According to
BQSM, Clauses 34 (aa) states that a consulting quantity surveyor shall not reduce or undercut
fees in order to secure an appointment.

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3.2.5 Standard Expectation of Quantity Surveyor


1. QS has to prepare an assumption of cost in the early stages of construction of a project,
giving guidance and assist on different type of materials, components and types of
construction and giving assist with feasibility studies.
2. Value analysis and cost planning is very significant during the design stage of a project to
ensure the client obtains the most ideal value for money, including increasing the value of
property assets, preferably having regard to total costs using life cycle costing techniques.
Tender figures should be kept within the client’s budget and the costs should be distributed
in the most realistic way throughout the various sections or elements of the building.
3. QS has to advice on the most suitable form of building procurement, having regard to the
type of project, quality, speed of construction, apportionment of risk and price certainty.
4. QS needs to prepare the bills of quantities and other contract documents relating to the
project.
5. QS has to study the tenders and priced bills of quantities and reporting the findings.
6. QS will negotiate rates with contractors and deal with cost reimbursement contracts, design
and build, management, etc.
7. Making recommendations and valuing work in progress as to payments to be made to the
contractor, including advising on the financial effect of variations.
8. QS will prepare the final account on completion of the contract works.
9. QS needs to give advice on financial and contractual aspects of contractors’ claims.
10. QS prepares cost analyses, cost reports, cost advice and information at all stages of the
contract to the clients.
11. QS provide advices on technical auditing, valuations for fire insurance, giving advice on
funding, grants, capital allowances and taxation, risk analysis and management, bank
monitoring, project management, building services cost advice and other related matters
including health and safety and quality control.

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4.0 REFERENCES
• Difference Between Occupation and Profession (with Comparison Chart).
Alex- Asmaa- Imodu. Retrieved from: https://keydifferences.com/difference-between-
occupation-and-profession.html

• Difference Between Occupation and Profession. Prabhat S. Retrieved from:


http://www.differencebetween.net/business/difference-between-occupation-and-profession/

• Olivia (2012, January 08). Difference Between Profession and Occupation. Retrieved from:
https://www.differencebetween.com/difference-between-profession-and-vs-occupation/

• Quantity Surveying Division (QS). (n.d.). Retrieved from: https://www.rism.org.my/quantity-


surveying-division-qs/

• CODE OF ETHICS. (n.d.). Retrieved from: http://www.ciqs.org/english/code-of-ethics

• Code of Ethics. CMAA (1st April 2017). Retrieved from: https://www.cmaanet.org/about-


us/code-ethics

• What is General Contracting? – Learn.org. Retrieved from:


https://learn.org/articles/What_is_General_Contracting.html

• What Are The Functions Of A Consultant Quantity Surveyor? Available from: https://www.project-
resource.co.uk/blog/2016/01/what-are-the-functions-of-a-consultant-quantity-surveyor

• BQSM - What is Quantity Surveyors? Available from:


https://www.bqsm.gov.my/index.php/en/faqs/30-bqsm/umum/176-what-is-quantity-surveyors
• Services and Functions of a Consultant Quantity Surveyor - Bhangals Construction Consultants.
Available from: https://www.bhangals.co.uk/articles/services-and-functions-of-a-consultant-
quantity-surveyor/

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• The Work and Skills Base of the Quantity Surveyor. Available from:
https://arrow.dit.ie/cgi/viewcontent.cgi?article=1034&context=beschreoth

• GUIDELINES ON THE APPOINTMENT AND TERMINATION OF SERVICES OF CONSULTING QUANTITY


SURVEYORS. Available from: ,https://www.bqsm.gov.my/bqsm/a_public/IMAGES/pdf/circulars/(1-
2007)%20Guidelines%20On%20Appointment%20And%20Termination%20of%20Services%20of%20C
onsulting%20Quantity%20Surveyor.pdf

• BQSM - Official Portal of Board of Quantity Surveyors Malaysia. (2007). Guidelines On


Advertising and Publicity for Registered Quantity Surveyors. Retrieved from
https://www.bqsm.gov.my/bqsm/a_public/IMAGES/pdf/circulars/(52007)%20Guidelines%2
0On%20Advertising%20and%20Publicity%20for%20Registered%20Quantity%20Surveyors
.pdf [Accessed: 13 November 2018]

• Emma Tyrell (20 April 2002). Pursuing a complaint against your surveyor. Retrieved from:
https://www.theguardian.com/money/2002/apr/20/property.homebuying1 [Accessed: 18
November 2018]

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