Ethical Principles in the Construction Industry - Essay Example

Single Professional in the Construction Industry Ethics simply pertains to what is right. If one is unethical, he is therefore wrong. The crusade to establish rules to govern what is right and what is wrong is common in almost all disciplines and this is generally done through the group or association of the concerned members. Hence, there is the American Bar Association, the American Institute of Certified Public Accountants, or the Screen Actors Guild, among others. In the field of construction, there are different organizations for architects, engineers and other professionals and these bodies have developed their own codes of conduct for ethical standards. Interestingly, there are apparent moves on the part of contractors to promote ethical codes in their own backyard. Considering this innovation, it is being entertained if creating a single professional code under the umbrella of the construction industry is feasible and practical. (Society of Construction Law Hong Kong. Events by Other Organizations. 7th May 2008, [internet]). As a matter of fact, there have been initiatives to the effect of adopting a single ethical code for unorganized groups working within the coverage of construction law. (Franklin, Kim. Ethical gauntlet thrown down in pursuit of construction code. Architects' Journal. EMAP Architecture. 2004. [internet]). On the question of feasibility, it is believed that there are no hindrances or hitches in consolidating the various standards of conduct among the different callings or disciplines with the end in view of covering the professional relationships between all concerned parties in construction projects. This will be a matter of crafting the papers which will address all the ethical concerns of persons or entities in the construction industry and which will guide all those involved in every project. However, in the meantime, the consolidated version does not have to encroach on the ethical code of each individual organization. In short, the new code will be something like an amalgamation of the individual codes which will be applicable in the inter-actions and inter-relations of the covenanting parties in construction undertakings. As to whether the plan for a single ethical code is practical or not, it is opined that it will be so, the reason being that any party who needs clarification or is in doubt may readily refer to only one set of deliberated and agreed standards, that is, the new single code of ethics. Whatever it will be, the more important consideration is that the so-called seven principles of public office may be covered in the new single convention as the main guiding icons for construction professionals, practitioners and other participants, thus: honesty, fairness, integrity, objectivity, reliability, accountability and leadership. (Seven principles of public office. Standards - Related Information. www.parliament.uk. [internet]). Putting all these virtues together in one array of dictums in the building industry for the players to observe, follow and obey under pain of reasonable sanctions will greatly instil good behaviour and wholesome attitude. In the process, performance will be enhanced and the positive results will naturally redound to the benefit of the stakeholders. Honesty has very significant repercussions in construction projects. One example is in the case of bribery, a form of dishonesty. If a contractor makes illegal special deals with environment regulators, he puts at stake the welfare of the people. This becomes relevantly true today owing to the current global sentiments over climate phenomena. Other classes of dishonesty in the construction industry are fraudulent claims, kickbacks or illegal and immoral commissions, and forgery of pertinent documents, among others. The exercise of fairness among the players in the construction industry necessarily boosts morale among its key players who will thereby work harder and more effectively. On the other hand, if a contractor, for instance, is biased in favour of a sub-contractor, the other sub-contractors will get sour and will be discouraged and will possibly not cooperate. Integrity and reliability can be established if honesty and fairness are first addressed, coupled with the complements of hard work and dedication to one's specific calling. Hence, the clientele will naturally perceive an honest and fair contractor as one who can be trusted, particularly if he accomplishes with vigour and is focused to the given project with the required objectivity. Leadership qualities are always expected of construction industry players because their responsibilities pertain to usually humongous undertakings. The development and building of structures and edifices are not ordinary engagements. These have to be studied in closely monitored details and have to be prepared with great caution and meticulous attention. One error can cause gargantuan devastation including loss of lives and properties. With that, construction people must also be prepared to account for their duties while being grossly prudent in the accomplishment of their tasks. It has to be importantly observed that construction covenants are usually long term and this circumstance makes more imperative the need for a single code of ethics in the industry with impact and which will convey the cohesiveness of a strong and united force in the protracted run. Sub-Contractors: Victims of Raw Deal or Achilles' Heel Sub-contractors have a major role in the building world. The principal contractors, particularly in huge projects, sometimes no longer have the time and the needed attention to accomplish the works in certain segments of a contracted project. As a matter of fact, there are also instances when the main contractor does not have the necessary manpower supply in specific areas of the undertaking and has to resort to the hiring of outside help. Expertise is also sometimes wanting that sub-contractors in the persons of experienced tradesmen like tile-setters have to be taken in. (A Report on Employment Trends in the Construction Industry: London, Middlesex, Elgin, Oxford, Huron and Lambton. [internet]). The engagement of the services of sub-contractors has two sides of the coin. It can be a boon or a bane or that it has advantages as well as disadvantages. Also, there are times when sub-contractors get raw deals from the parties seeking their services, that is, they (the sub-contractors) are the factors in the success of the project and yet they are not aptly compensated for their good performance or they are not rewarded with what is due them for what they deserve. In some incidents, a construction project is in the brink of collapse due to lapses on the part of the main contractor and sub-contractors come to the rescue and turn out to be the saving grace. On another note, there are likewise instances when sub-contractors, especially unscrupulous ones, become the root cause of serious problems which the contractor encounters in his specific construction venture. This happens when, for instance, the sub-contractor aims for windfall profits and utilizes materials which are sub-standard or under specifications even if the price for the sub-contracting is relatively fair and reasonable. As a matter of course, the contractor will get embarrassed to the client or employer and will face the risk of litigation for breach of contract in the event that the poor quality materials are uncovered. In a way, the sub-contractors evolve to be the Achilles heel of the contractor. At this juncture, it may be worth to observe that contractors and sub-contractors generally will negotiate in such a way as to maximize their earnings. (Construction Management. Construction Contracts and Delivery Methods. New Hampshire Department of Education. [internet]). That is the very essence of life and survival. Nevertheless, if the element of greed is asserted in the implementation of a construction covenant, a sacrifice in work quality will have to be part of the whole caboodle. That will be the beginning of the problem. The worst scenario involving sub-contractors is when they receive unfair treatment and yet the principal contractor does not meet the expectations of the client precisely because the sub-contractors have to make adjustments in the sub-contracted jobs. Under this framework, the sub-contractors are both raw deal recipients and Achilles' heels. For instance, X Company is contracted by Y Company to build a four-storey building at the agreed consideration of $1,000,000. X Company sub-contracts out the electrical installation to Z Company for $200,000 although the suggested budget for the specified sub-contracted job is $300,000. Z Company is thus compelled to use sub-standard materials in order to save on cost, finish the installation and make a little money. Y Company, the client or employer, is not satisfied as it discovers the poor quality of the supplies utilized contrary to the supposed specifications. Here, Y Company, the sub-contractor becomes both the culprit and the victim. It has to be significantly noted that, universally, as far as concerning court suits for breach of contract, the contractor and the sub-contractor are jointly and severally liable in most jurisdictions. This means that the liability of one is the same as of the other and both of them can be made primarily liable alternatively and not in a subsidiary capacity. As in the illustration above, if Y Company files a case against X Company and Z Company and its (Y Company's) complaint prospers, say, for $100,000, it can have the judgment executed either against X Company or Y Company or both at the same time until it (Y Company) gets the full amount as resolved by the court. Hence, X Company cannot just tell Y Company to first run after the assets of Z Company, the sub-contractor. In the same manner, if Y Company goes to Z Company for execution, the latter cannot put up the excuse that Y Company should first exhaust the remedy against X Company, the contractor. Analyzing the foregoing situations, it can only be thus concluded that in any project undertaking, the bottom line for decency and success is still each party being fair and honest to the other parties and, of course, to the stakeholders. In short, it is simply and basically a matter of wholesome human behaviour. How and When Partnerships Work It is claimed that jobs on covenanted projects can better be fulfilled if the contractor partners with some other contractors or other parties whereby both pool their interests and resources. In that set-up, the best of results can allegedly be achieved in the enterprise of building and construction as desirable levels in the quality of work are attained. (Bennett, John and Sarah Peace. Partnering in the Construction Industry. ELSEVIER. [internet]). This view may be correct under good economic conditions and situations when establishments continue to maintain professionalism and is thereby consistent in levels of efficiency owing to the stable and predictable level of the supply of funds. In this kind of a scenario, the main contractor that comprises the partnership will always expect the partnered entity to deliver and perform according to the standards set forth in the project agreement, or even possibly way above the same, in order to impress the client and have the prospects of getting some more additional building or development contracts. However, such a perception might not always work out that way. During hard economic times, things can be different. Each and the other will always want to feel secure of its assets and resources as finances continue to appear fragile and volatile. Under that circumstance, for example, the complementing partner will not easily gamble and take risks. It will have to carefully assess the chances of success. In the course of exercising utmost prudence, it has to tighten the belts and possibly sacrifice the degree of excellence in certain aspects of the project. It will be something like each member of the partnership is each to his own in order to survive past the economic woes. References (All sources were from the Web / Internet) A Report on Employment Trends in the Construction Industry: London, Middlesex, Elgin, Oxford, Huron and Lambton. [internet] Accessed January 11, 2010. Available at: Bennett, John and Sarah Peace. Partnering in the Construction Industry. ELSEVIER. [internet] Accessed January 12, 2010. Available at: ). Construction Management. Construction Contracts and Delivery Methods. New Hampshire Department of Education. [internet] Accessed January 12, 2010. Available at: Franklin, Kim. Ethical gauntlet thrown down in pursuit of construction code. Architects' Journal. EMAP Architecture. 2004. [internet] Accessed January 11, 2010. Available at: Seven principles of public office. Standards - Related Information. www.parliament.uk. [internet] Accessed January 11, 2010. Available at: Society of Construction Law Hong Kong. Events by Other Organizations. 7th May 2008, [internet]. Accessed January 11, 2010. Available at: < http://www.scl.hk/other_org.htm> Read More