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- Herausgeber: John Wiley & Sons
- Kategorie: Wissenschaft und neue Technologien
- Sprache: Englisch
Professional Ethics in Construction and Engineering 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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Professional Ethics in Construction and Engineering
Jason Challender
This edition first published 2022
© 2022 John Wiley & Sons Ltd
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Library of Congress Cataloging-in-Publication DataNames: Challender, Jason, author.Title: Professional ethics in construction and engineering / JasonChallender.Description: Hoboken, NJ : John Wiley & Sons, 2022. | Includesbibliographical references and index.Identifiers: LCCN 2021061395 (print) | LCCN 2021061396 (ebook) | ISBN9781119832096 (hardback) | ISBN 9781119828822 (epdf) | ISBN 9781119832102 (epub) | ISBN 9781119832119 (obook)Subjects: LCSH: Construction industry--Moral and ethical aspects. |Construction industry--Employees--Professional ethics. | Building--Moraland ethical aspects.Classification: LCC TH159 .C44 2022 (print) | LCC TH159 (ebook) | DDC 624--dc23/eng/20220125 LC record available at https://lccn.loc.gov/2021061395LC ebook record available at https://lccn.loc.gov/2021061396
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For Tracy
Contents
Cover
Title page
Copyright
Dedication
Author Biography
Foreword
Acknowledgement
List of Figures
List of Tables
List of Appendices
List of Abbreviations
1 Introduction
1.1 Introduction to the Book
1.2 Structure of the Book
1.3 Summary
References
2 Application of Ethics in the Context of the Construction Industry
2.1 Introduction
2.2 The Importance and Significance of the Global Construction Industry
2.3 Ethical Challenges for the Built Environment
2.4 The Bespoke Nature of the Construction Industry
2.5 The Fragmented Nature of the Construction Industry
2.6 The Role of Construction Professionals in Managing Construction Projects
2.7 Different Perspectives on Ethics
2.8 Decision Making from an Ethical Standpoint
2.9 The Life Cycle of Buildings
2.10 Summary
References
3 The Significance and Relevance of Ethics
3.1 Introduction to the Chapter
3.2 What Are Professional Ethics?
3.3 A Brief Historical and Theoretical Perspective on Ethics
3.4 Historical Theories as Frameworks for Ethics
3.5 Concept and Purpose of Ethics
3.6 A Context to the Discussion and Perception around Business Ethics
3.7 Goals of Professional Ethics
3.8 The Importance of Professional Ethics for the Construction Industry
3.9 Ethical Principles and Codes for Construction Professionals
3.10 How Should Construction Professionals Recognise Unethical Practices?
3.11 The Need for Construction Professionals to Uphold Ethical and Cultural Values When Procuring Projects
3.12 Summary
References
4 Ethical Dilemmas for Construction Practitioners
4.1 Introduction
4.2 The Construction Industry’s Ethical Dilemma
4.3 Ethical Principles and Values
4.4 Factors Affecting Ethical Dilemmas
4.5 The Need for Construction Professionals to Uphold Cultural Values When Procuring Projects
4.6 Maintaining a Duty of Care in Tendering Processes
4.7 Corporate Hospitality and Gifts
4.8 Regulation and Governance of Professional Ethics
4.9 Whistle Blowing
4.10 Ethical Dilemmas around Self-Deception
4.11 Practical Examples of Ethical Dilemmas
4.12 Ethical Dilemmas that Apply to Different Roles
4.13 Summary
References
5 Types and Examples of Unethical Conduct and Corruption
5.1 Introduction
5.2 How Should Construction Professionals Recognise Unethical Conduct and Practices?
5.3 Examples of Acts of Unethical Behaviour and Corruption
5.4 Misuse of Power
5.5 Corruption
5.6 Fraud
5.7 Bribery
5.8 Conflicts of Interest
5.9 Ethics and Negligence Linked to the Design and Construction of Buildings
5.10 Global Corruption in the Construction Industry
5.11 Effect of Unethical Practices and Corruption
5.12 Remedies for Unethical Behaviours and Corruption
5.13 Summary
References
6 Regulation and Governance of Ethical Standards and Expectations
6.1 Introduction
6.2 The Problem of Maintaining Standards around Professional Ethics
6.3 Financial Regulations, Governance Policies and Delegated Authority
6.4 Ethical Governance at Tender and Appointment Stages
6.5 Summary
References
7 Ethical Project Controls in Construction Management
7.1 Introduction to the Chapter
7.2 Project Controls
7.3 The Importance of Project/Programme Boards
7.4 Gateway Processes for Project Approval and Business Cases
7.5 Summary
8 Developing an Ethics Toolkit, as a Practical Guide for Managing Projects
8.1 Introduction to the Chapter
8.2 Planning and Devising the Toolkit
8.3 Feedback and Evaluation of the Toolkit from the Perspectives of Construction Professionals
8.4 Ensuring and Monitoring Performance Throughout the Life of Projects: General Project Directory and Checklist
8.5 The Documentation that Construction Professionals Need to Consider at Pre-Construction Stages
8.6 Managing Documentation and Processes Following Appointment of Contractors
8.7 The Documentation and Processes that Construction Professionals Need to Consider in the Construction Phases of Projects
8.8 The Documentation and Processes that Construction Professionals Need to Consider in the Post-Construction Phases of Projects
8.9 Summary and Usefulness of the Toolkit
Reference
9 Ethical Selection and Appointment Processes for the Construction Industry
9.1 Introduction to the Chapter
9.2 The Importance of the Contractor Selection Process
9.3 Articulation of the Problem of Selecting Contracting Partners from the Perspective of Construction Professionals
9.4 A Historical Perspective of the Problem
9.5 Risk Considerations
9.6 Benchmarking
9.7 Pre-Qualification Models and Methodologies
9.8 Designing a New Way for Construction Professionals to Select Their Contracting Partners
9.9 The Quality of Pre-Qualification Processes and Their Influence on Project Success
9.10 Conclusions
10 Codes of Conduct for Professional Ethics
10.1 Introduction to the Chapter
10.2 Ethical Principles for Construction Professionals
10.3 Codes of Conduct to Regulate Professional Ethics
10.4 Maintaining High Standards of Professional Conduct and Competence
10.5 Governance and Enforcement of Professional Ethics through Codes of Conduct
10.6 Misconduct and the Reputation of Professions
10.7 Embedding Ethical Codes, Behaviours and Standards into Organisational Culture
10.8 Strategies for Improving Codes of Ethics Implementation in Construction Organisations
10.9 Developing a Model Code of Conduct
10.10 Chartered Management Institute (CMI) Codes of Ethics Checklist
10.11 The Royal Institution of Chartered Surveyors (RICS) Codes of Conduct
10.12 The Royal Institution of British Architects Codes of Conduct
10.13 The Chartered Institute of Building (CIOB) Codes of Conduct
10.14 Summary
References
11 Implications in Practice for Ethics in the Construction Industry
11.1 Introduction
11.2 Reputation and Image Implications for the Construction Industry on Unethical Practices
11.3 The Effects on Construction Project Performance Brought About by Unethical Practices
11.4 Upholding Ethical Practices
11.5 Remedies for Unethical Behaviours and Practices in the Construction Industry
11.6 Summary
References
12 Summary of Key Points, Reflections, Overview and Closing Remarks
12.1 Introduction
12.2 Summary of the Key Issues Raised Throughout the Book
12.3 Final Reflections, Overview and Closing Remarks
Appendix A Anti Bribery Policy
Appendix B Counter Fraud and Response Policy
Appendix C Criminal Finances Act Policy
Appendix D Template for the Gateway 1 Project Proposal
Appendix E Template for the Gateway 3 Business Case Process Business Case
Appendix F Example of a Contractor Competency Questionnaire
Appendix G Example of a Project Execution Plan (PEP)
Appendix H Example of a Health and Safety Contractor’s Handbook
Appendix I RICS Regulations and Guidance Notes
Appendix J RICS Frequently Asked Questions Document Linked to Their Global Professional and Ethical Standards
Glossary of Terms
Index
End User License Agreement
List of Illustrations
Chapter 2
Figure 2.1 The iron triangle of...
Figure 2.2 The components, parts and...
Figure 2.3 Operational and capital costs...
Figure 2.4 Life cycle analysis over...
Chapter 5
Figure 5.1 Examples of unethical and...
Figure 5.2 Examples of corrupt construction...
Figure 5.3 Photograph of Grenfell Tower...
Figure 5.4 Photograph of Ronan Point...
Figure 5.5 Examples of adverse extreme...
Figure 5.6 Examples of extreme negative...
Chapter 6
Figure 6.1 The three main areas...
Figure 6.2 An OJEU flowchart showing...
Chapter 7
Figure 7.1 Chart illustrating TS: Capitalize...
Figure 7.2 Flowchart to illustrate Gateway...
Chapter 8
Figure 8.1 General project checklist...
Figure 8.3 Typically, tasks and activities...
Figure 8.4 Example of a project...
Chapter 9
Figure 9.1 Performance criteria and sub...
Chapter 10
Figure 10.1 Model of ethical climate...
Figure 10.2 Areas of implementation of...
Figure 10.3 Enablers for implementation and...
Figure 10.4 The Seven Nolan Principles...
Figure 10.5 The Code of Ethics...
Figure 10.6 The nine RICS ethical...
Figure 10.7 Decision tree for proceeding...
Figure 10.8 Rules relating to the...
Chapter 11
Figure 11.1 Adverse events resulting from...
Figure 11.2 Extreme events resulting from...
List of Tables
Chapter 2
Table 2.1 The role and responsibilities of main contractors
Table 2.2 A model for ethical investigation
Chapter 3
Table 3.1 Other historical perspectives...
Table 3.2 Top 11 most...
Chapter 5
Table 5.1 Category and frequency...
Table 5.2 Lessons learnt from...
Table 5.3 Ranking of unethical...
Table 5.4 Top 17 construction...
Table 5.5 Bottom 17 construction...
Chapter 8
Table 8.1 Example of a...
Table 8.2 Project handover/test...
Table 8.3 Fire safety project...
Table 8.4 Lessons learnt proforma...
Guide
Cover
Title page
Copyright
Dedication
Table of Contents
Author Biography
Foreword
Acknowledgement
List of Figures
List of Tables
List of Appendices
List of Abbreviations
Begin Reading
Appendix A Anti Bribery Policy
Appendix B Counter Fraud and Response Policy
Appendix C Criminal Finances Act Policy
Appendix D Template for the Gateway 1 Project Proposal
Appendix E Template for the Gateway 3 Business Case Process Business Case
Appendix F Example of a Contractor Competency Questionnaire
Appendix G Example of a Project Execution Plan (PEP)
Appendix H Example of a Health and Safety Contractor’s Handbook
Appendix I RICS Regulations and Guidance Notes
Appendix J RICS Frequently Asked Questions Document Linked to Their Global Professional and Ethical Standards
Glossary of Terms
Index
End User License Agreement
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Author Biography
Dr Jason Challender, MSc FRICS FAPM FHEA
Jason Challender has acquired 32-years ‘client side’ experience in the UK construction industry and procured numerous successful major construction programmes during this time. He is Director of Estates and Facilities at the University of Salford, member of its Senior Leadership Team and responsible for overseeing a large department of approximately 350 estates- and construction-related staff. Jason is also a Visiting Professor at the University of Bolton and an established author with 11 academic journals and 5 books published in recent years, all of which have been dedicated to his studies around the construction industry. Furthermore, he has previously participated as a book reviewer for Wiley. He has also attended many national construction and institutional conferences as a guest speaker over the years and is a Fellow and Regional Board Director of the Royal Institution of Chartered Surveyors and Board Director of the North West construction Hub.
Foreword
The subject of professional ethics has become increasingly topical and important in the construction and engineering industries over recent years on a national and global level. This has largely been predicated on high profile global cases that have come to light where unethical practices, standards and behaviours have been identified and widely publicised. These have involved breaches of governance and codes of conduct and aspects of corruption in more extreme cases, which has led to reputational damage for the organisations involved and a general loss of public confidence in the construction and engineering industries. Given that construction and engineering activities operate almost wholly in the public eye, it is inevitably scrutinised significantly more than other sectors of the economy, which present real challenges for those responsible for evidencing consistent, ethical practices across complex and sometimes challenging supply networks. Put simple, as a direct consequence of these inherent difficulties, I strongly believe that there is an absolute imperative for long term transformational change and the construction and engineering industries are at a critical juncture in this regard.
With his vast experience in the construction industry across 32 years, the author is very well placed to address the dilemmas and challenges around professional ethics and the book does provide a thorough articulation and analysis of the practical and pragmatic ways and means to approach the application of ethical standards. To contextualise the scale of the problem whilst offering best practice solutions, the author has covered many different areas including ethical dilemmas, regulation and governance, professional codes of conduct and corporate social responsibility. The book draws on case studies from the authors experience alongside hypothetical practical examples to describe certain ethical dilemmas and suggested best practices in many different scenarios. In addition, the author has also developed an ethics toolkit, as a practical guide for managing projects. It is hoped that this will encourage more ethical behaviours and standards and discourage breaches in immoral and illegal practices. The result is a professionally focused textbook aimed at vocational learners (at both undergraduate and postgraduate taught levels) and practitioners in construction, engineering, architecture, and the wider built environment.
This book is not the first to outline some of the ethical shortcomings in the construction and engineering industries, but I believe does offer what many have been waiting for. I hope this book offers the inspiration for more moral and responsible and ethical professional practices, in the overall pursuit of building more confidence and trust in the construction and engineering industries. In this sense, if it creates a new perspective of understanding and dialogue around professional ethics, then it will have served its purpose.
Dr Abdul Salam Darwish BSc MSCCITM PhD PGCE DTQM DEPMP DMM DBMSchool of Civil Engineering and Built Environment, University of Bolton
Acknowledgement
The author would like to thank his family, Margaret, Kristin and Bobby for their encouragement during the book.
He would also like to acknowledge Dr Peter Farrell, Reader at the University of Bolton, whose long-term mentoring and has enabled the author to achieve all his career and academic successes. This book would not have been possible without his encouragement and proactive continued support.
List of Figures
Figure 2.1 The iron triangle of cost, time, quality and scope
Figure 2.2 The components, parts and relationship between WLC and LCC
Figure 2.3 Operational and capital costs of a building
Figure 2.4 Life cycle analysis over the life of a building and varying levels of uncertaint
Figure 5.1 Examples of unethical and illegal practices on building projects in Malaysia
Figure 5.2 Examples of corrupt construction related activities (adapted from GIACC 2008)
Figure 5.3 Photograph of Grenfell Tower, London following the devastating fire in 2017
Figure 5.4 Photograph of Ronan Point tower block, London following its partial collapse in 1968
Figure 5.5 Examples of adverse extreme events resulting from corruption
Figure 5.6 Examples of extreme negative events resulting from corruption
Figure 6.1 The three main areas of ethical risks
Figure 6.2 An OJEU flowchart showing timelines
Figure 7.1 Chart illustrating an example of a client approval process across a hierarchy of different project/programme boards
Figure 7.2 Flowchart to illustrate Gateway approval process
Figure 8.1 General project checklist
Figure 8.2 Ethical and legal compliance requirements checklist for contractors, prior to commencing on site
Figure 8.3 Typically, tasks and activities involve hazards for contractors which may need to be authorised by a Permit to Work
Figure 8.4 Example of a project dashboard template
Figure 9.1 Performance criteria and sub-criteria
Figure 10.1 Model of ethical climate, culture and codes (adapted from Lui et al. 2004)
Figure 10.2 Areas of implementation of ethical codes (adapted from Svensson et al. 2009)
Figure 10.3 Enablers for implementation and embedding of codes of ethics (adapted from Svensson et al. 2009)
Figure 10.4 The Seven Nolan Principles
Figure 10.5 The Code of Ethics Checklist
Figure 10.6 The nine RICS ethical principles (adapted from RICS 2010)
Figure 10.7 Decision tree for proceeding or not proceeding with certain courses of action (adapted from RICS 2010)
Figure 10.8 Rules relating to the CIOB codes of conduct
List of Tables
Table 2.1 The role and responsibilities of main contractors
Table 2.2 A model for ethical investigation
Table 3.1 Other historical perspectives and schools of thought around ethics
Table 3.2 Top 11 most frequent unethical practices
Table 5.1 Category and frequency of unethical conduct (adapted from Vee and Skitmore 2003)
Table 5.2 Lessons learnt from previous cases of bribery (adapted from Global Infrastructure Anti-Corruption Centre 2008)
Table 5.3 Ranking of unethical conduct by construction players (adapted from Abdul-Rahman et al. 2007)
Table 5.4 Top 17 construction perception index (CPI) scores and rankings by country
Table 5.5 Bottom 17 construction perception index (CPI) scores and rankings by country
Table 8.1 Example of a cost plan
Table 8.2 Project handover/test certification checklist
Table 8.3 Fire safety project completion checklist
Table 8.4 Lessons learnt proforma
List of Appendices
Appendix A Anti-Bribery Policy
Appendix B Counter Fraud and Response Policy
Appendix C Criminal Finances Act Policy
Appendix D Template for the Gateway 1 Project Proposal
Appendix E Template for the Gateway 3 Business Case Process Business Case
Appendix F Example of a Contractor Competency Questionnaire
Appendix G Example of a Project Execution Plan (PEP)
Appendix H Example of a Health and Safety Contractor’s Handbook
Appendix I RICS Regulations and Guidance Notes
Appendix J RICS Frequently Asked Questions document linked to their Global Professional and Ethical Standards
List of Abbreviations
ARCOM
Association of Researchers in Construction Management
AoC
Association of Colleges
BIM
Building Information Modelling
BIS
Department for Business, Innovation and Skills
CDM
Construction, Design and Management (Regulations)
CE
Constructing Excellence
CIAT
Chartered Institute of Architectural Technologists
CIC
Construction Industry Council
CIOB
Chartered Institute of Building
CMI
Chartered Management Institute
DfE
Department for Education
DV
Dependent Variable
EU
European Union
FE
Further Education
GDP
Gross Domestic Product
GOF
Goodness of Fit Indices
HE
Higher Education
HEFCE
Higher Education Funding Council for England
HESA
Higher Education Statistics Agency
HR
Human Relations
ICE
Institution of Civil Engineers
IV
Independent Variable
JCT
Joint Contracts Tribunal
KPIs
Key Performance Indicators
LCCI
London Chamber of Commerce and Industry
NAO
National Audit Office
NBS
National Building Contract
NEC3
New Engineering Contract
NHBC
National House Building Council
OJEU
Official Journal of the European Union
ONS
Office for National Statistics
PCFA
Principal Component Factor Analysis
RIBA
Royal Institute of British Architects
RICS
Royal Institution of Chartered Surveyors
SEM
Structural Equation Modelling
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 and regulation around ethical practices.
To form the basis of a practical toolkit for guidance and teaching of ethics in the built environment.
The book is mainly intended for construction management practitioners and clients but could suit a wide target audience including under- and postgraduate students and academics. For its target audience it will provide a summary of best practice and guidance in upholding ethical values, principles and standards from initiation to post-handover across many different projects. For professional practitioners, the book will explore how ethical management can be a complimentary project skill and whether such skills can be proven to reduce risk in projects. Accordingly, it will provide the ‘voice’ of professional and institutional clients and present their recommendations and mechanisms for the creation of a common standardised ethical protocol. Furthermore, it will also consider whether this approach might compliment other developments in project management such as project team integrated working.
The books findings are presented to encourage professional practitioners to implement improvement measures through ethical governance mechanisms and initiatives. The introduction of such mechanisms is explained in the book and presented in a simple and effective way for improvements in construction project management practice. Reading this book will hopefully support the development of a deeper understanding of the benefits of having strong ethical leadership for improved outcomes for construction projects. With a better insight to how professional ethics can be instrumental to project success it should provide the potential to embrace the true philosophy of trust, confidence and how these can promote more improved construction management practices. The book is not intended as a holistic course textbook albeit it could be worthy inclusion on a recommended reading list for courses related to construction management. The toolkit for improving professional ethics for construction practitioners could be used as a basis for short-term training or conference proceedings for professional institutions and public sector organisations. Notwithstanding this, it is not intended solely as a practitioner guide. Rather, the book aims to cross this divide and provide useful insight to both academics and practitioners in developing their understanding of the topic area.
Understanding the risks posed for breaches of ethical standards by construction practitioners is a growing area as the tolerance for project failure reduces. Contemporary books to this seek to externalise professional ethics and codes of conduct by rooting them with professional institutions that create and regulate them. This book takes a different perspective and is unique in considering professional ethics as an integral and valuable component part of every construction stage. In doing so it creates a practical baseline for awareness of ethical considerations and therein smoothing the transition between traditional ethics teaching and embedding standard, values and principles in project practice. Accordingly, it is a starting point for standard ethical practices to be developed and integrated within project theory to support and de-risk subsequent project management.
The value proposition of this book is that it will be read, understood and accepted by businesspeople as their main guidance and reference tool for reducing construction-based risk associated with unethical conduct. Accordingly, this is a book written for businesspeople by businesspeople based on sound theory (how to do it) and sound practice (lessons derived from case studies). It is considered unique in that it represents a comprehensive and wide-ranging analysis of best ethical practice in the construction industry as well as other industries and sectors and what can be learnt from them. The book will take established and widely accepted business ethical management practices and models and align them with development/construction issues. From this perspective, it does not seek to adapt established project management systems and processes but simply use ethical best practice models to co-exist alongside them. The book also investigates the area of environmental ethics and corporate social responsibility. These have become more prominent and important over recent years with the advent of cases such as the Deepwater Horizon oil spill which had major financial implications and reputational damage for British Petroleum PLC.
Although the research was undertaken in the UK, and all findings are likely to therefore have best fit with the UK construction industry, the overall knowledge and understanding to be provided by this book will have international relevance. Other countries seeking to develop ethical guides using similar approaches to the UK will be able to utilise the book, with consideration of how the findings fit with their own understanding in practice.
Finally, it is worth acknowledging that the author has gained over 32 years’ experience of construction management from both a practitioner and an academic perspective. From this, the book has drawn on both academia and practice, and it seeks from both these perspectives to prove an important insight into an area which has long been problematic for the construction industry.
1.2 Structure of the Book
The book has been structured into 12 chapters and covers a wide variety of different areas and consideration relevant to professional ethics in the construction industry, namely:
Chapter 1: Introduction
Introduction, justification, aims and objectives, readership and brief description of the areas covered throughout the book.
Chapter 2: Application of ethics in the context of the construction industry
Importance and significance of the construction industry, complexities around the bespoke nature of building projects and the risks associated with the dynamic and fragmented environment.
Chapter 3: The significance and relevance of ethics
Articulation of what ethics are, their origins and history, important to society and how to recognise unethical practices. Different roles and responsibilities of construction professionals and the ethical differentiation and non-alignment that this can create.
Chapter 4: Ethical dilemmas for construction practitioners
Explanation of how dilemmas that can be created, especially where commercial benefits are at stake offers practical guides and recommendations for maintaining ethical principles and practices under different scenarios. Non-adherence of codes of conduct and breaches of rules and regulatory standards and regulation and governance policies and procedures to avoid and address such adversities.
Chapter 5: Types and examples of unethical conduct and corruption
Identification of the various types of unethical and illegal practices from misuse of power to serious fraud. Articulation of what constitutes each type of unethical and illegal practice and how they can occur in a business context. Contains both hypothetical and real-life examples of situations and scenarios where breaches of ethical standards and illegal activity has ensued and measures that can be adopted to reduce unethical and illegal practices across the world.
Chapter 6: Regulation and governance of ethical standards and expectations
Focus on the importance of organisational transparency, regulation, and governance in the pursuit of ethical compliance, including management governance processes and procedures that can reduce the risk of unethical practices and behaviours.
Chapter 7: Ethical project controls in construction management
Articulation of what governance requirements can be instigated by construction professionals on their projects and presentation of some practical control mechanisms for regulatory adherence.
Chapter 8: Developing an ethics toolkit, as a practical guide for managing projects
A practitioner’s toolkit designed specifically for the book, for encouraging best practice and to ensure that critical aspects of projects, including statutory compliance and quality controls are not compromised during the life of projects. In this way, it is intended as a practical guide for managing the processes and procedures linked to each aspect.
Chapter 9: Ethical selection and appointment processes for the construction industry
Highlighting the importance for construction professionals of the ethical processes around selection and appointment of their contracting partners to encapsulate the right level of transparency and sense of impartiality during tendering.
Chapter 10: Codes of conduct for professional ethics
Explanation of codes of conduct in regulating professional ethics, what these comprise and how they are applied to improve practices and behaviours. Articulation of the benefits of having codes of conduct and how they vary between different professional bodies and institutions. Importance of embedding codes of conduct, and ethical behaviours and standards into organisational culture by professional bodies.
Chapter 11: Implications in practice for ethics in the construction industry
Implications for the construction industry from unethical practices, including reputational damage and image considerations for organisations. Effects on construction project performance and brought about by unethical practices, especially focused on those developing countries around the world with construction quality data generated from research studies in Nigeria.
Chapter 12: Summary of key points, reflections, overview and closing remarks
Final chapter to summarise the book with reference to each chapter, extrapolating the key findings and issued raised. Presentation of the author’s reflections and recommendations for the future of the construction industry, taking account of the inherent dilemmas for professional ethics.
1.3 Summary
The main focus of the book is to explore the role of ethics in construction management with the overarching aim to create a factual ‘how to do it’ practical guide or ‘toolkit’ to assist construction professionals procure more successful project outcomes. It will raise awareness of best practice and instil improvements in construction management with ethical compliance at the epicentre of project teams. It is also intended to provide an important insight into the influence of professional ethics in the success of construction projects and redevelopment programmes.
Even though 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. High profile cases such as the Grenfell Tower disaster in 2017 and the collapse of Carillion PLC in 2018 have brought the construction industry into ill repute resulting causing reputational damage and loss of public confidence and trust in some cases. To respond to this issue, 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.
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. 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 will hopefully support the development of a deeper understanding of the benefits of having strong ethical leadership for improved outcomes for construction projects. With a better insight to how professional ethics can be instrumental to project success it should provide the potential to embrace the true philosophy of trust, confidence and how these can promote more improved construction management practices.
References
Boyd, D. and Chinyio, E. (2006).
Understanding the Construction Client
. Oxford: Blackwell Publishing Ltd .
Farmer, M. (2016).
Modernise or Die: The Farmer Review of the UK Construction Labour Market
. London: Construction Leadership Council.
Kamara, J.M., Anumba, C.J., and Evbuomwan, N.F.O. (2002).
Capturing Client Requirements in Construction Projects
. London: Thomas Telford Publishing.
Walker, A. (2009).
Project Management in Construction
, 5th ed. Oxford: Blackwell Publishing Ltd. 150–158.
2 Application of Ethics in the Context of the Construction Industry
The construction industry is one of the most dynamic and complex environments as it is a project-based industry within which individual projects are usually built to clients’ needs and specifications.
Tabassi et al. (2011)
2.1 Introduction
In considering the above quotation, this chapter of the book will articulate and discuss the importance and significance of the construction industry to global economies including the UK, whilst highlighting the complex nature of the sector. Such complexities around the bespoke nature of building projects will be covered alongside the temporary organisational aspects of the project procurement. Risks associated with the dynamic and fragmented environment that encapsulates the construction industry will be identified.
This chapter will also include the roles and responsibilities of different members of project teams including clients, project managers, architects, quantity surveyors, engineers, main contractors and subcontractors. It will consider these different roles from the perspective of ethical considerations and how they vary depending on the individuals. As a consequence of these differing perspectives, dilemmas around ethical decision making will be discussed. Ethical investigation models will be identified which seek to address such dilemmas in assisting construction practitioners in deciding what is right and wrong. Finally, the notion of building life cycles will be forensically analysed and the competing dilemmas of capital costs versus operational costs.
2.2 The Importance and Significance of the Global Construction Industry
The construction sector employs between 2% and 10% of the total workforce in most countries of the world (Rahman and Kumaraswamy 2005). In the UK, construction output in September 2020 accounted for more than £110 billion per annum and contributes 7% of Gross Domestic Product. Approximately a quarter of construction output is public sector and three-quarters is private sector. The construction industry is very diverse and includes elements ranging from the construction of buildings and infrastructure, maintenance, refurbishment to the manufacture and supply of building products and components. New build construction output accounts for approximately 60% of construction output whereas refurbishment and maintenance accounts for the remaining 40%. Government Construction Strategy 2016–2020 outlines that there are three main sectors within the UK construction industry, and these are commercial and social (45%), residential (40%) and infrastructure (15%) (ONS 2020).
According to the Government’s Construction 2025 strategy (HM Government 2013), the UK construction industry generates approximately three million jobs which accounts for approximately 10% of total employment and these include construction-related services and manufacturing. These jobs can be categorised as contracting which employs approximately two million people, and made up of 234,000 businesses and services, employing 580,00 people and 30,000 businesses. Furthermore, construction-related products accounts for 310,000 jobs and 18,000 businesses. The construction industry across the world can be regarded as a long-term industry linked to investment, albeit perceived to be a high-cost, high-risk industry by some. The performance of the industry can be seen to be a good indicator of the state and health of the sider economy. Accordingly, when an economy falters, it is common for the construction industry to slow down and when an economy begins to recover from a recession, the construction industry is one of the first industries to start to grow.
2.3 Ethical Challenges for the Built Environment
The issue of poor quality of construction projects and questionable professional ethics has been highlighted in the past especially in those developing countries. With the move over recent years globally to focus on quality-related outcomes rather than primarily cost and time, this has highlighted the need for construction professionals to focus on ethics.
Rahman et al. (2007) argued that the construction industry provides a ‘perfect environment for ethical dilemmas, with its low-price mentality, fierce competition and paper-thin margins’. Transparency International which represents a global coalition against corruption found that 10% on the total global construction expenditure was lost to some form of corruption in 2004, which is staggering and further depletes the reputation of the industry. There have been growing reports over the years that unethical behaviours and practices are still in some areas of the construction industry are still common, and this is taking a toll on the industry’s reputation. FMI undertook a survey which concluded that 63% of construction professionals felt that unethical conduct was still a problem for the industry. This clearly demonstrates that some improvement measures are required. Accordingly, the book will cover such ethical dilemmas and discuss measures, principles and models to curve such practices in the pursuit of a more regulated industry founded on moral values and behaviours. This is intended to act as a catalyst for improvements to construction management practices and improve the reputation of the industry which has suffered from reputational damage in the past. Later chapters of the book in this way will seek to equip practitioners with a practical guide or ‘toolkit’ to take business decisions which do not transgress into those areas of malpractice and unethical conduct. This is a deliberate attempt to promote best practice and regain the confidence and trust of the general public where reputations have been damaged over previous years. Hopefully this will deliver the benefit and impacts in terms of successful project outcomes and greater client satisfaction.
2.4 The Bespoke Nature of the Construction Industry
It is interesting to explore from where the construction industry has emerged as a bespoke project-based industry and there are many different theories around this. As a starting point, it is important to understand what makes the construction industry different and potentially ‘at odds’ from most other industries. In answering this question, it is worth contemplating that the procurement process around construction is very unlike that of most other industries. Those employed are made up of mostly small teams, ranging from construction workers to design consultants, who come together on a temporary basis for the life of a project and then disband to undertake different projects. This creates fragmentation and does not always allow the time for relationships to develop and flourish, which could be in itself a contributory challenge for trust generation. It is also important to reflect upon the ‘end product’ and that construction projects are nearly always bespoke to clients’ requirements. This ‘one off’ or ‘made to measure’ aspect does, however, create risk and uncertainty for all parties. To fully appreciate and understand this context it may be useful to compare the procurement of a new building with the purchase of a new car. When one buys a car the make and model that suits your budget will be agreed alongside any affordable optional extras that are required. One can even ‘test drive’ the same model to ensure that it meets the customers’ expectations in terms of feel and drivability. At this stage, on ordering the vehicle, the customer will know exactly what they will receive on the due delivery date, which is normally a few weeks at most and have an agreed fixed price. In this regard, there is very little risk that the customer will not receive exactly what they have expected when they ordered for the price they have secured. As the car is made in a factory it will be standardised, and quality control is normally very good accordingly. The complete opposite scenario could be argued to prevail when a building is being procured. It normally involves a prolonged period of time for design consultants to formulate a brief with clients, progress the design development and tender the projects to construction contractors. On receipt of tenders, this is where the process probably varies most from the car purchase example. In selecting the most appropriate tender it is important to consider the quality of the tenders rather than just accept the lowest price. Such factors as reputation, track record, resources and demonstration of an understanding of the project are vitally important as the quality, cost, scope and timescale in delivering the final project are normally anything but assured. There are three elements which are widely regarded as critical success factors namely cost, time and quality and these constitute what is commonly referred to as the ‘iron triangle’ which is illustrated in Figure 2.1.
Figure 2.1 The iron triangle of cost, time, quality and scope.
There are several unknown factors in any construction process which could cause the cost of projects to increase, programmes to be delayed and the quality of builds to be compromised. This introduces two aspects which come into play around commerciality and risk and who incurs any additional costs is frequently an area where disputes arise between clients and their consultants and contractors. Furthermore, given that construction works normally incur significant amounts of money the stakes are high in terms of the final bill for clients and the level of profit attained by contractors. It is therefore perhaps not surprising, for reasons of commerciality, that parties to construction contracts have traditionally not relied on trust in dealings with each other especially around financial construction matters.
2.5 The Fragmented Nature of the Construction Industry
Despite the scale and importance of the UK construction industry, it is frequently criticised for performing poorly. In this regard it has been accused of being adversarial, wasteful and dominated by single disciples reluctant to innovate and poor at disseminating knowledge. It is also claimed that the industry is fragmented and according to Fewings (2009) there is a general tendency for those employed in the construction industry to ignore best practice owing to this fragmentation within the sector. In the UK this is reflected in the fact that nearly half of all work completed is undertaken by approximately 190,000 small contractors. Some of the workforce in this regard, especially those who undertake smaller jobs are often one-off individuals with limited and potentially insufficient experience. As a consequence of such inexperience there may be cases where their knowledge and awareness of issues relating to regulations, compliance, best practice and ethical considerations is lacking. In the context of the construction industry, which is associated with fragmented, complex and potentially confrontation practices, this can create a dilemma for the sector. It is, therefore, perhaps not surprising that there have been many reported cases in the press of examples of malpractice and contractors breaches regulatory standards and codes of practice. Some of these cases have resulted in litigation proceeding brought about by their clients which has resulted in reputational damage for the industry as a whole. In addition, these practices have frequently led to less than acceptable project outcomes in terms of value for money, delays and poor-quality build standards.
2.6 The Role of Construction Professionals in Managing Construction Projects
In the organisational structure associated with managing construction projects, construction professionals can be employed by clients directly as their employees and commonly referred to as ‘client-side representatives’. Alternatively, they can be appointed by clients as consultants to manage the design and construction of building projects on their behalf. In this scenario they normally would form a client design team which could consist of consultant project managers, architects, quantity surveyors, mechanical and electrical engineers, structural engineers and other specialist consultants (Inuwa et al. 2015 ). It is normally the role of project managers and the overall design team appointed and led by clients who are responsible for developing the requirements of their clients, setting project briefs and managing the overall construction processes. Clients also employ their main contractors directly, and the main contractors under a traditionally procured building projects will employ subcontractors. It is normally the subcontractors who appoint their respective suppliers and specialist sub-subcontractors.
The various aforementioned roles and responsibilities of construction professionals are detailed below.
2.6.1 Construction Clients
Clients normally represent the sponsors of the project and therein have overall responsibility for the cost of the construction works and most of the risks involved. As they will be the ‘end users’ of buildings that are procured it is important for them to ensure that buildings are designed and constructed to meet their detailed and prescriptive brief and functional performance requirements. In this regard, clients need to determine and set down the goals for their projects and the means by which they intend to deliver and achieve them. In this pursuit it is vital that they appoint the right specialist consultants who are experienced and offer expertise for the nature of a particular project. It is also imperative that they ensure that the right balance of resources is deployed in other areas, and this includes budgetary and time considerations to deliver projects safely and to an acceptable quality. For this reason, clients need to be equipped with the tools to lead their projects which calls for informed and methodical approaches with clear responsibilities, roles and decision making.
Having clients at the forefront of projects with all the necessary skills in leadership, knowledge and resources has been highlighted as one of the main ingredients in improving the overall performance of the construction industry (Challender and Whittaker 2019). Furthermore, maintaining the ‘client voice’ in decision making and identifying the brief have become more important in recent years and not simply delegating these responsibilities to others in the professional team. This proactive leadership in the construction process, albeit challenging especially for ‘lay construction clients’, is essential in avoiding poor construction outcomes associated with time, cost and quality implications. In recent years the calls for transformational change through the Farmer Review of the UK Construction Labour Market (Farmer 2016) and the Construction Sector Deal recognise the vital role of clients in striving to ‘turn the tide’ and spearhead such changes. Despite this, the construction industry has been slow to embraced strategies linked to client leadership. Accordingly, the unique role of clients and their preparedness in projects is emerging as a ‘hot’ topic. This is not sufficiently covered by the professional institutions where the focus is on development of industry professionals rather than clients. Previous research within construction projects has mainly revolved around the development of professional teams which is well-trodden ground and has increasingly diminishing returns on risk reduction.
The construction industry is a risk reward venture undertaken by clients alongside their appointed project teams. Notwithstanding this premise, it is clients who ultimately take the biggest risk and if they represent a typical small business, arguable possess the least knowledge of protocols and culture on the construction industry (Challender and Whittaker 2019). Within the structure of a construction project, a series of government-sponsored reports Constructing the Team (Latham 1994), Rethinking Construction (Egan 1998) and Accelerating Change (Egan 2002) have made radical changes to the construction industry, making it more client focused than ever before. A greater sense of team working and integration between clients and the design and construction supply chain has now significantly reduced design and construction risk to, and from, the client. However, through the lens of designers and constructors the client can still be seen as a ‘risk’.
Part of this risk can be characterised as the dynamic shift that a novice client has to undertake to become a ‘Developer’. The client is required not only to take on the role of delivering their own business and operational change but also choose the right resources and create the right environment to successfully and seamlessly deliver a construction project. This is an enormous risk and time consuming to the corporate business putting great strain on its management and physical resources. For many it is a ‘leap into the dark’ – the construction industry having few parallels in manufacturing.
