THE CONCEPTS OF PROFESSIONALISM

APEGGA MISSION:
To serve society and protect the public by regulating, enhancing and providing
leadership in the practice of the professions of engineering, geology, and
geophysics.

APEGGA gives you:

a career
an identity
status
a reputation
responsibility
protection

Professionalism and professional conduct are defined in terms of a

profession and a professional.

Profession: an occupation characterized by:

high levels of technical competence
degree of responsibility inherent in its practice
requires the application of mature judgment where decisions are made
that may affect many people.

Professional: a person recognized to have high levels of technical competence

and the following set of attitudes:
willingness to assume responsibility
interest in economic and social aspects of the profession
integrity
credibility
expanding and developing your expertise
self-regulation through APEGGA
protecting the health and safety of the public

Professional Conduct:
competence, responsibility and trustworthiness
acquiring and maintaining technical expertise
application of expertise for others
act maturely with good judgment to benefit society
use self-regulation to gain societal trust
Professionalism: a quality control system characterized by service to others
where the quality is controlled by the profession.
QUALITY CONTROL SYSTEMS

Self-Regulation is the most important part of the professional quality control

system.

Formal Administration: an Act passed by the government (APEGGA)

(ex. Governmental, Professional Associations)
government sets entry standards, ethical practice, and enforces
the administration can be transferred to the professional association to
give them the legal right to license, and punish those who practice and
determine themselves what ethical and competent mean.
Membership in the professional association is mandatory and you must
pay a yearly fee for a license to practice.

Informal Administration: services are NOT controlled by the government

(ex. Employers, Unions, Voluntary Associations or Societies)
The organization itself is in control

PROFESSIONALISM IN OCCUPATIONS

The impact of the occupations services and level of trust or responsibility gained
by the professionals.

Level of responsibility can be judged on the score of the following components:

Impact of the Service (10)
Knowledge (10)
Frequency of Reasoned Judgments (10)
Supervision Received (10-X)

PROFESSIONALISM IN THE INDIVIDUAL

Characteristics of a professional are:

competent
desire for Autonomy (desire to choose independently)
committed to the Profession
ethical
commitment to Collegial Standards (certification, ethical practice,
regulation, control)
honest, trustworthy and principled
skillful, paid
 loyal employee with high rank and high quality

CANADIAN PROFESSIONAL ENGINEERING PRACTICE AND

ETHICS BOOK

CHAPTER 2: Regulation of the Engineering Profession

Associations use their own provincial Professional Engineering Act to set up and
govern:
Regulations: rules set up to support the Act
(ex. Qualifications for admission, professional conduct)

By-laws: rules to administer the Association

(ex. Methods for electing members, financial statements, committees)

Code of Ethics: rules of personal conduct to guide engineers.

Engineers regulate their profession by electing the majority of members to the

Association Council (which also contains members appointed by the provincial
government) and by voting on the regulations and by-laws passed by the council.

The Association admits applicants into the profession by registering them as

members and granting them their license to practice after they meet the following
requirements:
Citizenship (Canadian or permanent resident)
Age (18)
Education (must graduate from a recognized / accredited university)
Examinations (PPE)
Experience (evaluated on nature, duration, currency, quality)
Character

ENGINEERS SEAL

The engineers seal means that documents have been prepared or approved by
the person that sealed them.

The engineer who prepared them or supervised their preparation should seal
them, not the one who checked them. Alberta engineers are now permitted to
stamp the work of others, provided that they thoroughly review the work and
except full responsibility for the work.
ENGINEERING CODE OF ETHICS

Each code defines the duties of the engineer to the public, employer, fellow
engineers, to the profession, and to yourself.

The purpose of the code is to protect the public from bad engineers.

CANADIAN COUNCIL OF PROFESSIONAL ENGINEERS (CCPE)

Coordinates the profession on a National level using the following committees:

Canadian Eng. Accreditation Board (university accreditation)
Canadian Eng. Human Resources Board (collect data for profession)
Canadian Eng. Qualifications Board (qualifications to enter profession)
Canadian Eng. Public Awareness Board (raise awareness)
CHAPTER 6: Engineering Ethics

ETHICAL THEORIES

Mills Utilitarianism: the best choice in a moral dilemma is that which produces
the maximum benefit for the greatest number of people. (democracy)

Kants Formalism (Duty Ethics): each person has a duty to act ethically.
Happiness is the result of good will: the desire to individually do your duty and
follow all the rules.

Lockes Rights Ethics: everyone has rights. The right to life, human dignity
and liberty which must be recognized by others and not stomped on.

Aristotles Virtue Ethics: choosing the happy medium.

CODE OF ETHICS

A decision that gives a benefit to you, it is a conflict of interest. Your decisions

must not only be ethical, but must be seen by others as ethical.

The codes are statements of general principals, followed by instructions for

specific conduct, and emphasize the duties that an engineer has to:

Society: this is the most important!!!! Engineers have a duty to

protect the safety, health and welfare of society.

Employers: to act fairly and loyally and to keep business confidential.

You must also disclose any conflict of interest that may arise.

Clients

Colleagues: act with courtesy and good will

Employees and Subordinates: recognize the rights of others.

Engineering Profession: Maintain dignity and prestige.

 Oneself: payment, work conditions, strive for excellence and maintain
competence.

CHAPTER 7: Ethical Problems of Engineers in Industry

The employer clearly does not have the authority to direct an engineer to break
the law. The engineer should advise the employer that the action is illegal and
refuse to do it.

The employer cannot direct an engineer to violate the code of ethics. The
engineer should advise the employer of the section of code and decline to take
action.

The employer cannot ask an engineer to do something that contravenes the

engineers conscience or moral code. The engineer must:
Gather all relevant information
Define the ethical problem
Attempt to see the problem from the employers point of view
Generate and examine alternative courses of action
Consider personal consequences

ETHICAL PROBLEMS IN THE INDUSTRY (CASE STUDIES)

1. ACCEPTING A BETTER JOB OFFER???

Already accepted a job, a better job is offered 2 weeks later

Take the better job

Tell the first job that she is taking the better job but offer to pay for recruitment
fees. (compromise it acknowledges ethical duty, maximizes benefits)
Keep the original job.

2. SEEKING EMPLOYMENT ELSEWHERE???

Worked for same company for 3 years, all trained but bored

If training took one year, you should work there at least 1-2 years after
training so the company can realize its investment.
3. EXTRA PART-TIME EMPOYMENT ON THE SIDE???

Inform the main employer to see if it is OK

Employee must show fairness and loyalty to the employer.
No conflict of interest (no competing on same contracts)
Part-time work should not reduce employees efficiency for main job

4. SHOULD ENGINEERS JOIN LABOUR UNIONS???

Yes, as long as the engineers are no managers in the company.

It might be better to inform management of their dissatisfaction with their
salaries, and negotiate individually or as a group. Then seek legal advice.

5. FALSE ENGINEERING DATA IN ADVERTISING???

The welfare of the general public is the most important.

Inform the engineering manager.

Decide to work for change within the company, be the whistleblower, or quit.

6. DISCLOSING CONFIDENTIAL COMPANY INFORMATION???

You know that something is dangerous, but you hear of a competitor that is going
to use it

Tell your employer first and determine the best way to tell Company B.
You must tell Company B about your findings and potential problems to
save the public.

.
CHAPTER 8: Ethical Problems of Engineers in Management

Unlicensed Personnel: using them to carry out professional engineering

work.

Misuse of Engineering Title

Reviewing Work and Evaluating Competence: engineers should not

undertake or be assigned work that is not within the competence level of the
engineer.

Work Reviewed for Accuracy: engineers have other engineers check their
work only with their knowledge.

Work Review to Assess Competence: engineers have reviews as long as

they are informed that it is happening.

Discrimination in Engineering Employment

Computer Problems: security, infringement of copyrights, incorrect

transmission, errors and bugs, software piracy

ETHICAL PROBLEMS OF MANAGEMENT (CASE STUDIES)

1. UNLICENSED ENGINEER PRACTISING IN A NEW PROVINCE???

If you have a valid license from another province, you need to apply for a new
one right away in the new province. Without, a valid license in the province you
are working in, your work should be supervised by another engineer.

2. OFFENSIVE LANGUAGE TO THE VP AT THE COMPANY PICNIC???

You cant fire someone for an alternation at a social event. There must be a
record of continual insolence and insubordination. You should refuse to fire him
in writing, and give him a reprimand instead.

3. CONFLICT OF INTEREST???

You are on a committee that is deciding to revise specifications. These revisions

will help out your company, and the committee chairs company but will make it
hard on competitors.
You must tell the committee of the conflict of interest.

4. ERRORS IN ENGINEERING PLANS OR SPECS.???

You notice errors in design when your role is supposed to be in manufacturing.

You should phone the client and tell him about it, and then follow up with a letter
and then proceed with the fabrication after you get written conformation from the
client. If the errors may cause harm to the public, you must report it.

5. KEEP PRELIMINARY DATA SECRET UNTIL AFTER SHAREHOLDERS

MEETING???

It is ethical to keep preliminary results secret until the final results are known for
certainty.

6. ACCOUNTABILITY IN A NEW JOB WHERE PREVIOUS MANAGEMENT

HAS TAKEN NO ACTION AND NOW YOU ARE ACCOUNTABLE

You are always responsible to act with professional integrity and high ideals.

First, tell the person who is committing the misconduct. Include the
benefits of dealing with the situations, and the consequences of not
dealing.
Then, suggest that together you discuss the matter with senior
management or the Association.
Finally, if you have no choice, go alone to senior management or get
advice from the Association.
CHAPTER 9: Ethical Problems of Engineers in Private Practice

THE CLIENT CONSULTANT RELATIONSHIP:

The consultant (engineer) is usually hired to monitor an engineering project like

the construction of something. This creates a relationship between the
contractor (designer or builder), the consultant (engineer), and the client (owner).

Independent Model: The client explains the problem, and hands all decision
making over to the consultant. Bad because the client cant make any choices.

Balanced Model: The consultant makes recommendations and provides the

engineering advice but the client chooses the path to follow. This is the middle of
the spectrum.

Agent Model: The consultant takes orders from the client. This doesnt use any
of the engineers knowledge.

ADVERTISING ENGINEERING SERVICES

Engineers can only advertise through factual representation without

exaggeration.

You cannot use the engineers seal or associations seal in any form of
advertising.

USE OF THE ENGINEERS SEAL

The Act requires that all final drawings, specifications, plans, reports and other
documents involving the practice of professional engineering, must be dated,
signed, and sealed.

It is not optional to use the seal

Most documents state that they were prepared or checked and approved by
the person who sealed them.

The seal is legal because it indicates that the person accepts responsibility for
the accuracy of the documents and implies that the person has a thorough
knowledge of the project to which the documents relate.

Do not seal anything that you are not willing to accept full responsibility for.

CHECKING ENGINEERING DOCUMENTS

Checked: the documents were prepared by someone under the direct

supervision of the person who signed and sealed them.

You can seal the work of others (not under direct supervision), provided that you
thoroughly review the work and are willing to accept full responsibility.

Do not assume responsibility for work that is beyond your area of expertise, or for
work that you have not thoroughly reviewed for accuracy.

PREPARATION AND APPROVAL

If one engineer prepared the drawing, and another engineer must approve it,
then both seals should appear on it. Otherwise, only the approving engineer
should seal it.

If final drawings cover more than one discipline, then they should be sealed by
the approving engineer (chief) and by the design engineer for each discipline.

DETAILED DRAWINGS

The engineer generally has responsibility for a project as a whole, and the
engineers seal must appear on major reports, specifications, or drawings that
describe the project. You are not expected to seal every drawing, but they all
must be prepared under the engineers control and supervision and you assume
responsibility for all of them whether they are sealed or not.

MASTERS AND PRINTS

The master drawings must be complete since they are the major reference for
design and construction / fabrication.
The time to seal a drawing is when it is approved and released for fabrication or
construction.

You seal the copies, not the master. That way, the prints can be checked for
modifications when sealed.

ETHICAL ISSUES

Confidentiality: The engineer has a clear obligation, under the code of ethics,
to keep affairs of the client confidential.

Conflict of Interest: Where the engineer has an interest that interferes with the
service owed to the client. The engineer must disclose any personal interest
that there may be.

Reviewing the Work of Another Engineer: The engineer should be informed

when his work is being reviewed, but it is not necessary to receive permission to
do so. The welfare of the client or the general public must come before the
personal wishes of the engineer.

Supplanting: Convincing the client to fire their engineer and hire you instead is
unethical.

Breach of Contract: (civil liability) a failure to complete the obligations specified

in a contract. You can get protection for this (liability insurance).

Negligence: (civil liability) a failure to exercise due care in the performance of

engineering. There is NO protection for this.

ETHICAL PROBLEMS OF ENGINEERS IN PRIVATE PRACTICE (CASE

STUDIES)

1. WORKING AND VOTING ON PLANS FOR A STREET?????

You cannot vote on whether a project should be accepted if you are involved in
bidding on the project. You must disclose your involvement, and abstain from
voting and participating in the decision making process.

2. ENDORSING A PRODUCT ON TV???

It is seen as unprofessional and a conflict of interest.

3. LEGAL SETTLEMENT AND BEING PAID ON THE OUTCOME???

As an expert witness, you are giving your professional opinions. The amount you
make (contingency) will be dependent upon the outcome of the case. Getting
paid this way is a conflict of interest since there is personal benefit based on the
outcome. You should accept a flat rate fee.

4. ORIGINAL SEALED DRAWINGS CHANGED, INSPECTION???

You dont sign and seal the originalonly the copies so that modifications are
evident. If the project isnt to original specifications, the calculations must be
done from scratch and nothing is to be done until they are complete.

5. REDUCING YOUR FEE IF THE OBJECT HAS ALREADY BEEN

DESIGNED FOR SOMEONE ELSE BEFORE???

Establishing fair and reasonable fees depends on:

Level of knowledge and qualifications required
Difficulty and scope of the assignment
Responsibility that the engineer must assume
Urgency with which the work must be completed
Time required

You should not lower your price to produce a similar design for Client B, but if
Client A wanted a second building that was the same as the first, then a small
deal could be made.
CHAPTER 10: The Engineers Duty to Society and the Environment

DUTY TO SOCIETY:

You must put the greater good of society ahead of personal gain.

The two environmental problems that have accompanied the industrialization of

our society:

Proliferation of Machine-Made Hazards: Using highways, aircraft,

nuclear power, toxic chemicals more often make it more dangerous.

Degradation of the Environment: The lifestyle of industrialized nations

requires a high energy usage to maintain it. The consumption of fossil
fuels and the careless disposal of waste has deteriorated the environment.

o Waste Disposal
o Air Pollution
SO2 from coal combustion (London), NOx cars (LA), CO
Photochemical oxidants (sun) ozone, PAN Peroxyacetyl
nitrate
o Acid Rain
pH<5.0, harmful to fish at 4.5
o Water Pollution
Disease-causing bacteria
Organic waste decaying in the water
Fertilizers
Toxic materials (DDT, PCB)
Acidification
Waste heat
Agriculture wind carries pesticides, salt, fertilizers and
nitrogen to the water.
o Global Warming and Ozone Depletion (Greenhouse Effect)
CO2, CH4, NO2, O3, Chlorofluorocarbons
o Energy Conservation and Nuclear Power
 o Exponential Population Growth

The good of society is determined on a utilitarian basis creating the maximum

good, for the maximum number of people.

Before reporting an incident to the Association:

Informal Resolution: First, the engineer should try to resolve problems

informally and internally in an open and professional manner.

Confidentiality: If it is necessary to report a situation, never report it to the

public or media. Always report it to the Association or proper regulatory body.

Retaliation: You cannot be fired for reporting a situation. You can file a
lawsuit to recover lost wages and costs.
CHAPTER 11: Engineering Case Histories

1. THE QUEBEC BRIDGE DISASTER

Opened in 1919, the longest cantilever span in the world.

Bridge was redesigned with a larger span and the dead weight calculations were
not re-done.

Then, there was a material failure in a bearing casting that temporarily supported
the central span while it was being transported and lifted into place.

Lessons Learned:
You have to have enough money to pay all the people to do their jobs
properly for large projects before you start them. (Mr. Cooper was not paid nearly
enough to do the extra work to re-design nor was he really competent)
Hire capable competent professionals (not old or sick that cant visit the construction
site)
Clearly define duties, authorization and responsibility of professional
personnel.
Discuss all design decisions and technical problems openly and listen
receptively. (For 3 weeks, the chief engineer tried to contact Cooper about the strange
bending of some steel parts and recommended some changes be madeCooper didnt
listen)
Review details, especially engineering design calculations. (Cooper did not re-do
the calculations for dead weight after he changed the length of the structure.)
Monitor work on the site adequately. (Cooper was too old and sick to monitor any of
the building or fabrication)
Ensure that communication is rapid and accurate. (It took 3 weeks for the chief
engineer to reach Cooper with his concerns)
Provide adequate support staff for good money.

2. THE VANCOUVER SECOND NARROWS BRIDGE DISASTER

June 1958, two spans of the cantilever bridge collapsed.

It was caused by the faulty design and eventual collapse of a temporary tower
supporting the partially completed bridge.

The additional time and material needed to reconstruct the damaged portions of
the bridge.

Lessons Learned:
Consulting engineers should recommend allowable stresses for temporary
construction support structures.
The contractor should be required to submit all construction plans and
calculations for approval prior to construction.
3. THE WESTRAY MINE DISASTER

May 9th, 1992, mine blew up and killed 26 miners.

The floor, roof, and sides of the road should have been cleared and treated with
stonedust and proper ventilation procedures should have been followed despite
delayed production.

Lessons Learned:

Production demands resulted in the violation of basic and fundamental safe

mining practices.
Management ignored or encouraged many hazardous and illegal practices
including 12-hour work shifts, improper storage of fuel, refueling vehicles
underground, using non-flameproof equipment.
The methane gas from the coal needed to be properly ventilated out of the
mine.
Proper permits and changes to the mine plans were not approved by the
proper authorities.
Written orders to stonedust and to clean up the mine were not followed.

4. THE LODGEPOLE WELL BLOWOUT

October 17th, 1992, a sour gas Amoco well blew out and they could not get it
back under control.

The initial kick occurred primarily because drilling practices during the taking of
cores were not followed, and this combined with the marginally adequate mud
density used, permitted the entry of reservoir fluids into the wellbore.

They lost control of the well, and then it started on fire from some Muskeg that
was burning underground.
There were also some equipment failures that attributed to not being ale to
circulate the kick out quick enough

Lessons Learned:

Amoco did not apply the necessary degree of caution while carrying out
operations.
Needed to be fully prepared in the event of a fluid influx.

5. THE BRE-X MINING FRAUD

The samples had been salted adding minerals like gold where none exist.

Lessons Learned:

The chief geologist had a responsibility to show due diligence in safeguarding

the core samples and ensuring that the gold assay was properly done. That
the gold content, based on the samples, was accurately calculated and that
the double-checks were made to confirm the results.

This emphasizes the critical dependence of the mining and resource

industries on professionals with high ethical standards.

6. THE CHALLENGER SPACE SHUTTLE EXPLOSION

On January 28, 1986, the accident was caused by hot gases blowing past one of
the seals in the rocket boosters. The seal had been unable to do its job properly
because of the unusually low temperature in Florida on the day of the launch.

The manufacturer of the boosters, had this information but had decided to go
ahead with the launch anyway.

Lessons Learned:

In an enormously large organization, it is easy for decision making to fall

through the cracks.

It is very easy for engineers to fall into the comforting belief that they are
following a conservative course, when in fact they are deviating into
dangerous territory.

Disasters are easy to create safety comes hard.

7. THE DC-10 PASSENGER AIRCRAT DISASTER

In 1972, a cargo door latch failed and the door blew out of a DC-10 over Windsor,
ON and the explosive decompression of the cargo compartment caused part of
the cabin floor to collapse.

This opened a large hole in the bottom of the fuselage and severed most of the
hydraulic lines which caused the loss of control of the rudder and ailerons.
Everyone landed safely that day.

In 1974, another DC-10 over Paris, lost its cargo door. The decompression of
the cargo compartment again caused the cabin floor to collapse; control of the
ailerons and rudder were lost, and the plane crashed, killing 346 people.

Lessons Learned:

The FAA failed in its role of safety watchdog. It certified the cargo door
design in spite of the failure during the ground test. Then after the near-
disaster over Windsor, they merely advised the airlines to follow the
manufacturers service bulletin rather than issuing a directive that would have
required all DC-10s to be retrofitted.

8. TOXIC POLLUTION: LOVE CANAL, MINAMATA, BHOPAL, SUDBURY

Improper disposal of toxic or environmentally harmful waste.

Love Canal, New York Dioxin

In 1953, Hooker Chemical Corporation dumped over 18,000 tons of chemical
waste, including dioxins until the canal was flat land again.
Then, they donated the land to the Board of Education but said nothing about
the chemicals buried there.
Eventually, the chemicals were discovered in 1976 and the area was
evacuated and treated.
Total cost of the cleanup was $250 million and Hooker wasnt liable for any of
it because of their contract when they donated the land.

Minamata Bay, Japan Mercury Poisoning

In 1932, the Chisso Company, a nitrogen fertilizer company began producing
acetaldehyde. Mercury was needed as a catalyst.
During the production process, a portion of the mercury was lost washed
into the Bay with the waste water.
The organic mercury was absorbed by the shell fish, and eventually eaten by
people.
 By 1962, it was estimated that about 2900 people had contracted Minimata
disease.

Bhopal, India Methyl Isocyanate

In 1984, a poisonous cloud of methyl isocyanate gas escaped from the Union
Carbide plant killing thousands of people up to 6 km away.
The incident happened when a worker was cleaning a pipe with water and the
water mixed with the chemicals and over pressured the tanks causing them to
release the gas.

Sudbury, Ontario Sulphur Dioxide

Nickel that is mined in Ontario is in the form of sulphied ore, and cannot be
directly converted into metallic form. It must first be smelted burned to
remove the sulphur which is done in huge open roasts which emitted huge
toxic clouds of sulphur dioxide.
Sulphur Dioxide when dissolved in water, became acid rain.
This devastated the area around the plant; trees are stunted and sparse,
lakes have no fish, no bird life.
Since then, about 3000 hectares have been reclaimed.

Lessons Learned:
Each of these incidents involves ignorance, carelessness, or incompetence,
and most involve an arrogant lack of ethical action.
Consequences of negligence can be terrifying.

9. NUCLEAR SAFETY

Three Mile Island

March 28, 1979, a routine maintenance operation, a pressure valve stuck open,
allowing radioactive water to escape from the system for more than 2 hours
leaving the reactor core partially uncooled.

More than 1/3 of the reactor core had melted and fallen to the bottom of the
reactor vessel. Thank goodness, the molten mass did not burn through the
bottom of the reactor to penetrate the ground water table. (in a cynical version of
this story, the molten mass continues to burn through the interior of the earth until
it emerges in China (The China Syndrome).

It was not a disaster for the public, but the unit was destroyed and the clean-up
cost nearly $1 billion.
Chernobyl

April 26, 1986, reactor number 4, exploded releasing a huge cloud of radioactive
plutonium, cesium, and uranium dioxide into the atmosphere.

Accident occurred during a low-power test. Because of the design, during lower
power, the water in the core decreases.

To date, the number of related deaths is between 7,000-10,000. They waited

days, even weeks to admit that it had exploded and they took even longer to
evacuate the people.
Lessons Learned:

The possibility of disaster might be very small, but it is not zero.

Such responsibility should never be treated casually.
CHAPTER 12: Product Safety, Quality and Liability

NEGLIGENCE AND LIABILITY

Engineers are liable for negligent, incompetent, or careless acts that result in
damages to others, including the employer.

Engineers are required to use reasonable care, established practices, and well-
tested engineering principles.

Negligence: an act or omission that constitutes a failure to maintain the

standards that a reasonable and prudent practitioner would maintain in the
circumstances.

WITH A CONTRACT:
Negligence, incompetence or carelessness may be a basis for a lawsuit over
breach of contract.
It is good practice to consider all reasonable ways in which an agreement
may go wrong, foresee damages, and include clauses that specify bonuses
for good results or limits to liability.

WITHOUT A CONTRACT: (driving)

May result in legal liability based on tort law (injuries or damages).
To win a claim under tort law, the plaintiff must prove:
o that the defendant had a duty of care to the plaintiff
o that the defendant breached that duty
o that the loss or damage was a direct result of the defendants breach of
duty.

Liability insurance is a wise investment. It is essential for manufacturers that

employ engineers because of:
Vicarious Liability: the engineers employer is liable for any loss or damage
that results from a tort caused by an employee. The engineer is protected
financially, but not from disciplinary action by the Association.

PRODUCT WARRANTIES

WARRANTY: applies to goods and products

Express Warranties: promises that the product has a certain quality or it

will perform for a certain period of time.

Implied Warranties: unstated promises that exist as a matter of common

sense. A certain amount of quality or function that is expected.
STRICT LIABILITY

Product defects and consumer safety, the focus is on the product itself and no
questions of negligence arise.

A manufacturer may be strictly liable for any damage that results from the use of
his product, even though the manufacturer was not negligent in producing it.

GUARANTEE : applies to services and agreements

ADVICE TO DESIGN ENGINEERS TO AVOID PRODUCT LIABILITIES

Formal Design Reviews: conceptual, feasibility, and final.

Codes and Standards: adhere to all government, industry and company
standards and codes.
State-of-the-art Design Methods: make choices that lean toward safety.
Formal Hazard Analysis: identify hazards, try to prevent or eliminate, action
plan, remedial action.
Formal Failure Analysis: Failure Modes and Effects Analysis (FMEA) and
Fault Tree Analysis (FTA).
Design Records: Keep good design records to shoe planning for safety

ADVICE TO MANUFACTURERS

Quality Assurance and Testing: ISO 9000

Instruction, Warning and Danger Signs: If dangers do exist, plan for
proper signs to give warnings of danger.
Instruction Manuals: Any product that is dangerous should come with a
service or instruction manual.
 Warranties, Disclaimers and other Published Material: Review all
information with the design engineer and by a products liability lawyer.
Consumer Complaints: Investigate claims quickly to fix problems early.
Customer Records: Have good records in case of a recall.

OBTAINING CANADIAN STANDARDS

Check with the Standards Council of Canada (SCC). They promote efficient and
effective standardization in Canada.

The SCC manages the National Standards System (NSS). The NSS write
standards, certify products, test products and register quality systems of
companies (ISO 9000).

The SCC coordinates the Canadian contribution to ISO (International

Organization for standards, and IEC (International Electrotechnical Commission)

ISO 9000 QUALITY MANAGEMENT AND QUALITY ASSURANCE

STANDARDS

It is a standard for effective management of a manufacturing corporation in order

to maximize the quality of the manufactured products.

A key part of the process involves the development of a Quality Manual that
documents the four key aspects of the certification process:
quality policies for every aspect of the corporations operations
quality assurance procedures
quality process procedures
quality proof

ISO 14000 ENVIRONMENTAL MANAGEMENT SYSTEMS

The process requires the company to examine every function of its operations
with the goal of identifying activities with a significant environmental impact, and
committing the company to preventing pollution in all of its many forms.
CHAPTER 14: Disciplinary Powers and Procedures

DEFINITION OF PROFESSIONAL MISCONDUCT

Each Association has the power to prosecute people who unlawfully practice
professional engineering and to discipline licensed engineers who are guilty of
professional misconduct or incompetence.

The provincial Acts typically identify 6 causes for disciplinary action:

Professional Misconduct: Any conduct detrimental to the best interests

of the public or that harms or tends to harm the standing of the profession
generally as unprofessional conduct. (or an act that would reasonably be
regarded as unprofessional)

Incompetence: a lack of knowledge, skill, judgment, or disregard for the

welfare of the public that demonstrates the member is unfit to carry out the
responsibilities of a professional engineer.

Negligence: carelessness or carrying out work that is below the accepted

standard of care or performance.

Breach of the Code of Ethics:

Physical or Mental Incapacity: this is included as a definition of

incompetence.

Conviction of an Offense: Disciplinary action against a member who is

guilty of an offense that is relevant to the members suitability to practice.
DISCIPLINARY PROCESS

When a complaint of negligence, incompetence, or professional misconduct is

made against a licensed professional engineer, it sets in motion a 3-stage
process of:
Gathering Information
Evaluating the Complaint
Conducting a Formal Hearing that Renders Judgment

Stipulated Order: A simpler form of disciplinary hearing for less serious cases.
The decision of guilt or innocence is decided by one representative and the result
has no appeal process. Both parties agree to the outcome.

If a member or licensee should be found guilty, the Discipline Committee can:

suspend or revoke your license
impose restriction on your license
require the member to be counseled or reprimanded
make you pay cost of investigation or hearing
make you write exams or take courses
impose up to a $10,000 fine
CHAPTER 15: Maintaining Professional Competence

Engineers have the privilege of self-regulation, a privilege accompanied by a

corresponding duty to maintain competence and avoid professional
obsolescence.

The process requires engineers (and engineering corporations) to maintain

competence by:

engineering practice or employment

formal education (University or Association courses)
informal education (short courses or seminars)
publications
participation in engineering societies
benchmarking (comparing your practices against best practices)
CHAPTER 16: Engineering Societies

The major purpose of engineering societies is to encourage research into new

theories or methods, to collect and classify this new information, and to
disseminate it to members so that it can be put to good use.

The difference between an association and a society is that the Association

regulates professional behavior, and the Societies disseminate engineering
information. So you should be a member of both.

Societies have been established by groups of engineers whose common

interests are based on:
discipline
product
facility
evaluation
function
environment
language
geographical area
 THE CONCEPTS OF PROFESSIONALISM

PROFESSION:
A learned calling with specialized knowledge.

Performs services with advanced knowledge, skill and judgment in which

the public trusts.
Has public obligation and performs services in the general public interest.

Is bound by an ethical code in its relationship with the public, clients,

employees and colleagues.
Accepts responsibility to regulate professional members and professional
services provided to clients and the public.

Engineering is a profession that is self-governing and has the authority to

discipline members who fail to comply with proper standards of practice and
conduct.

The engineering profession is:

highly organized
minimum standards of admission
regulate the activities of their members (skilled practice and ethical conduct)
promote the advancement of knowledge

Professionals depend on the confidence of:

the client or employer
the public
EXCELLENCE:

A shared commitment with your peers to strive for excellence.

ETHICS:

Ethics deals with voluntary actions taken by an individual with sufficient

knowledge of options available.

The CODE OF ETHICS shapes the practice in two important ways:

provides a commonest of values which offers a reliable professional
product to the public.
professional relationship of trust with the public is fundamental

APEGGA CODE OF ETHICS

Professional Engineers shall recognize that professional ethics is founded upon

integrity, competence, dignity, and devotion to service.

1. P. Eng. shall hold paramount, the health, safety and welfare of the public
and environment.

They have an obligation to report conditions which present an

immediate threat to safety, health, welfare, or the environment.

It should first be reported to the professionals involved, then to

corporate or regulatory authorities.

2. P.Eng. shall undertake only work that they are competent to perform by
their training and experience.

Professional members should ensure, to the best of their ability, that

statements on engineering matters attributed to them properly reflect
their professional opinion.

Stamping and Signing Documents:

Professionals shall only stamp and sign documents that they have
prepared or that have been prepared under their direct supervision and
control.
 When work is prepared by others, they shall only stamp and sign after
having thoroughly reviewed the work and accepted responsibility for it.

Engineers who apply their seals or stamps to reports, plans or other

documents are stating that they understand and are in agreement with
these documents.

The absence of a seal or stamp does not necessarily indicate that a

professional member has not reviewed the document, not does it
relieve the member from professional or legal responsibility if it can be
shown that he or she was involved with the work.

3. P. Eng. shall conduct themselves with integrity, honesty, fairness and

objectivity in their professional activities.

A clients or employers interests should be held in high regard. However,

the following duties take precedence
o duty to protect public safety
o duty to the professions under the Code of Ethics
o duty to act fairly to all parties when administering a contract on
behalf of a client or employer.

Professionals should keep confidential all information that is acquired in

the course of their professional duties and that concerns the business
affairs of present or past clients/employees.

4. P.Eng. shall comply with applicable statutes, regulations and by-laws in

their professional practice.

Professionals should maintain adequate knowledge of the law relating to

their area of practice.

Responsible environmental management, computer software, and

discrimination are a few of the subjects covered under this Rule.

5. P.Eng. shall uphold and enhance the honor, dignity, and reputation of
their professions, and the ability to serve the public interest.
 Advertisements, proposals, and presentations should be factual, clear,
and dignified.

A professional should be careful to give due credit to others.

Only review the work of another professional when they have been
informed, unless there is a confidentiality agreement to the client.

Help E.I.Ts.

APEGGA CODE OF ETHICS

1. P. Eng. shall hold paramount, the health, safety and welfare of the public
and environment.

2. P.Eng. shall undertake only work that they are competent to perform by
their training and experience.

3. P. Eng. shall conduct themselves with integrity, honesty, fairness and

objectivity in their professional activities.

4. P.Eng. shall comply with applicable statutes, regulations and by-laws in

their professional practice.

5. P.Eng. shall uphold and enhance the honor, dignity, and reputation of
their professions, and the ability to serve the public interest.
 COPYRIGHTS

Right to copy

Only the owner of the work is allowed to reproduce the work, or permit others to
copy it.

Plagiarism is copying someone elses work and claiming it as your own.

Fair Dealing: Use or reproduction of work for private study, research, criticism,
review or news reporting.

Copyrights apply to:

Literary works: books, poems, pamphlets, computer programs
Dramatic works: films, videos, plays, scripts
Musical works: compositions (words and music)
Artistic works: paintings, drawings, maps, photos, sculptures, architects

Also to:
Performers performances: actors, musicians, dancers
Communication Signals: broadcasters
Sound Recordings:

Copyright is restricted to the expression in a fixed manner (text, recording,

drawing) of an idea; it does not extend to the idea itself.
Facts, ideas and news are all considered public property.

Copyright does apply to:

Song
Novel
Play
Magazine article
Computer program
Video Cassettes Movies

Copyright does NOT apply to:

Song title
Plot idea
Play of Hamlet
Facts in an article
Name of a computer program
Making a copy of a musical tape (royalties have been paid already)
Copies for educational institutions (can keep radio and news tapes for 1 year)
Non-profit libraries, archives and museums
When you create a work, you automatically have copyright protection provided
that at the time of creation you were a Canadian Citizen or a resident in a country
that participates in Copyright rules.

Authorship: The person that creates the work.

Ownership: If you are the creator of the work, you own the copyright. If you
create a work while employed, the copyright belongs to the employer. You can
legally transfer your rights to someone else, then they own the copyright.

Duration: Copyright (intellectual property) lasts for the life of the author + 50
years.

Moral Rights: Even if you sell your copyright, you still retain moral rights.
This means that no one, including the person who owns the copyright, can
distort, mutilate or modify your work. (change the ending, use for a commercial etc.)
Moral rights exist for the same length as the copyright.
You cannot sell or transfer your moral rights, but you can waive them.

REGISTRATION OF A COPYRIGHT

You do not have to register a copyright to have protection in Canada.

If you choose to register with the copyright office, you receive a certificate which
can be used to your advantage if your work is infringed. It is evidence that it is
your work and you are the owner. In a dispute, you do not have to prove
ownership.

You send the application to the Copyright office and you do not send your work
in. You may need to send a copy to the National Library of Canada but the
Copyright office doesnt review your work at all.

There is no requirement to mark your work under the Copyright Act. You can
mark it like this:

Name, Year ex. Jane Doe, 1986

You can use this format even if you have not registered your work.

The Copyright Office is not responsible for ensuring that your copyright is not
being infringed.this is your job. You have to launch legal action yourself and
the courts are left to decide.

Assignment: As the owner, you may decide give up part or all of your rights to
another party. The assignment may be for the whole term or for just a certain
part of the term.

License: You, as the owner, give someone else permission to use your work for
certain purposes and under certain conditions, but you still retain ownership. You
do not give up your rights.

Royalties: Money paid to the copyright owner as commission for sales of their
work or permission to use them.

Tariffs: Set fees that users must pay for using certain copyright material.

Collectives: an organization that collects royalties on behalf of its members.

 TRADEMARKS

A trade-mark is a word, symbol, or design to distinguish the products or services

of an organization or person from others. It can also represent a reputation.

Ordinary Marks: words or symbols that distinguish your product or service.

(ex. Giddy-Up)

Certification Marks: identify wares or services that meet a defined standard.

They are owned by one person but licensed to others to identify wares or
services, which meet a defined standard. (ex. Woolmark, APEGGA seal)

Distinguishing guise: identifies the unique shape of a product or its package.

(ex. Leggs Egg)

A trade name is the name under which you conduct your business. The trade
name can be registered under the Trade-Marks Act only if it is also used as a
Trade-mark (to identify products or services).

REGISTERING A TRADE-MARK

The Registered Trade-Mark is one that is entered on the Trade-marks register.

You are not required to register your trade-mark, if you use it for a certain length
of time, you can establish ownership by Common Law.
 Registration of your trade-mark gives you the exclusive right to use the mark
across Canada for 15 years, then you have to renew it.

It is recommended that you register your Trade-Mark in case someone else

tries to use it.

If you fail to use the mark for an extended period, your registration may be
cancelled.

You can register a trade-mark by filing an application for registration with the
Trade-marks Office. Your trade-mark must be used in Canada before it
can be registered.

REGISTRATION QUALIFICATIONS

Cannot be primarily your full name or surname (unless you can prove it is already
identified)

You may not register a word that clearly describes a feature of the product or
service (sweet, juicy)

The word cannot be clearly misleading (deceptively misdescriptive) (ex. sugar

sweet if it has no sugar)

You may not register a word that clearly designates the place of origin of the
product or service, or if it misleads the public into thinking that the product
comes from there. (Paris Fashions, Atlantic Cod, but you can use North Pole Bananas
because no one would expect them to come from there)

You can use a disclaimer statement indicating that you are not claiming
exclusive rights for certain words appearing in the trade-mark. In this way,
you can use clearly descriptive words which are unregisterable on their own.
(Ice Cream in Bobs Ice Cream)

Names of products in other languages cannot be registered. (wurst is German

for sausage)

Cannot be registered if it consists or a plant variety denomination.

You cannot use words, symbols, sounds or ideas that are confusingly similar
to a registered trade-mark or a pending mark. (King Dog Food and King Cat Food
would be refused)

You cannot register a trade-mark that resembles certain official symbols

unless you have the consent of the authority in question:
o Official government symbols
o Family coats of arms
o Badges and crests or RCMP
o Emblems and names of Red Cross or UN
 o Flags of other countries
o Symbols of provinces

Before you try to register your trade-mark, do a search and include trade names
as well.

After you have a registered trade-mark, to keep it you must;

Pay the registration fees every 15 years
Use the trade-mark in Canada or it will be expunged

Assignment: to sell or transfer your rights to a trade-mark to another party

Marking Requirements: The Trade-Marks Act does NOT have any

requirements but many owners indicate their registration through the following
marks:

= registered trade-mark
= trade-mark
SM
= service mark

The Trade-Mark Office will prevent anyone else from registering your trade-mark
but it is your responsibility to monitor the marketplace and take legal action if
someone is using your trade-mark.
 PATENTS

A patent is:
A document protecting the rights of the inventor
A repository of useful technical information for the public

The idea is to promote the sharing of technological information while giving you a
monopoly on your creation.

With a patent, the government gives the inventor the right to exclude others from
making or selling your invention.

The invention is protected from the day the patent is granted to a maximum of 20
years after the day you filed your application.

The Patent Office then expects you to provide a full description of your invention
so that all Canadians can benefit from this technology. They allow your
application to be open 18 months from the filing date during the convention
priority date.

Patent applications are made public 18 months after the Canadian Filing Date.

You must obtain a valid patent within 1 year of making the product public.
A Canadian patent is only extended throughout Canada. You must apply for
patent rights in other countries separately.

It is important to keep your invention secret until your first patent application is
filed in order to preserve your rights to file later in most foreign countries.

For an invention to be patented, it must be:

NOVELTY - First in the world
UTILITY - Functional and operative
INGENUITY - Show inventive ingenuity and not be obvious to someone
skilled in that area.

The following items are patentable:

Product (door lock)
A composition (chemical composition like lubricant)
An apparatus (machine to make door locks)
A process (method)
An improvement on any of these

The idea alone is not patentable. It must be reduced to something physical.

You CANNOT patent:

A scientific principle
An abstract theorem
An idea
A method of doing business
A computer program
A medical treatment
In Canada, patents are given to the first inventor to file an application.

If you invent something while working for an employer, on the employers time,
with the employers materials, at the expense of the employer, the invention
rights still belong to you unless you have been hired by the company to invent
patentable inventions.

PATENT APPLICATION

1. Get a Patent Agent

2. Preliminary Search
 You can do a preliminary search in the on-line database or visit the Patent
Office in person.

3. Preparing the Patent Application

A patent application must consist of:

o abstract (brief description)
o specification (claims and boundaries of protection)
o drawings

4. File your Application

5. Request examination
6. Examiner does search and approves or objects.
7. Respond to any objections
8. Patent granted or objected.

CONVENTION PRIORITY

Many countries belong to the Paris Convention for the Protection of Industrial
Property.

This treaty allows you to invoke convention priority which means that your filing
date in one member country will be recognized by all others provided you file in
those countries within the first year.
(ex. if you file in Canada in January 2000, you could file up to one year later in most countries
(January 2001) and still receive the same rights as if you filed in 2000.

PATENT COOPERATION TREATY (PCT)

It provides a standardized international filing procedure for foreign patents, which

is shared by our principal trading partners, including the US, Japan, and most
European countries.
You may file for a patent in as many as 106 member countries through a single
application filed in Canada.
 INDUSTRIAL DESIGN

An Industrial Design is the features of shape, configuration, pattern or ornament

applied to a finished article made by hand, tool or machine. (appealing to the eye)

There is no time limit for filing an application as long as the design has never
been published (made public to anyone).

You must file within 1 year of going public with your design or you will lose your
exclusive rights to the design.

The advantage of registering your industrial design is that it gives you exclusive
right to your design for up to 10 years from the date of registration.

Unless you register your design, you can make no legal claim of ownership and
have no legal protection from imitation.

Only the proprietor (creator) of the design may obtain registration unless you
have been hired to develop a design. Then the hirer is the proprietor.
Trade Secret: industrial know-how or valuable information acquired by a
business. It could be a:
formula
pattern
device
compilation of info used to give you an advantage over the competitors

You cannot register:

That dont have visual appeal
Features that are hidden from view or too small to appeal to the eye
A method of construction
An idea
Materials used in construction
Function of an article
Color

DESIGN REGISTRATION

The application will include:

Application forms (description)
At least one drawing or photograph
Fees

The process will include:

Initial processing
Examination
Registration

You do not have to mark your design in order to indicate that it is registered, but
marking it gives you extra protection.
As proprietor, you may take legal action against anyone who infringes on your
design in Canada but you must take action within 3 years of the incident.

D
An assignment occurs when you sell all or part of your rights in the design
permanently to another party.

You can license another user to allow someone else to use your design but
you still retain ownership.

To have your design protected in other countries, you must apply separately in
each country.

You have 6 months to file for convention priority.

(ex. you apply to register in Canada in January 2000, then you have until July 2000 to file in other
Convention countries and receive the same rights as if it were January 2000)

LAW FOR PROFESSIONAL ENGINEERS BOOK

CHAPTER 1: The Canadian Legal System

The legal system of Canada is based on the English common-law system and
the English courts of equity system (judge-made law) and is called
COMMON-LAW.

The Federal Court of Canada has jurisdiction over federal matters such as
patents, trade-marks and copyrights.

Public Law: deals with the rights and obligations of government (criminal and
Constitutional law)

Private Law: deals with the rights and obligations of individuals or private
organizations. (CONTRACT AND TORT LAW)

Terms:
Litigation: lawsuit
 Plaintiff: party bringing the action
Defendant: party defending the action
Appellant: party appealing the decision
Respondent: party seeking to uphold a decision
Privity of contract: legal relationship between parties to a contract
Creditor: party to whom an amount is owing
Debtor: party that owes an amount to creditor
Guarantee: A guarantees B the debt of Comp (when B doesnt get paid,
B goes to Comp first, then to A)
Indemnification: a promise to directly compensate or reimburse
another party for a loss or cost incurred. If A
indemnifies B the debt of Comp (when B doesnt get paid, B
goes directly to A)

CHAPTER 2: Business Organizations

Sole Proprietorship: an individual carries on business by and for himself and

also enjoys the profits and incurs any losses personally.

Partnership: an association of persons who conduct business in common with a

view to profit. Individuals or organizations share profits and losses.

Corporation: an entity unto itself, distinct from its owners (fictitious person).
The corporation itself owns its assets and incurs its own liabilities.
CHAPTER 3: International Considerations

It is extremely important to obtain advice from an appropriately experienced

lawyer in the foreign country or have the advice of a consultant in that country.
It is wise to purchase political risk insurance and to use careful judgment together
with a local influential partner.

Some potential risks of working internationally are:

Political Risk is one of the more obvious risk factors in working

internationally. The Changes in government can lead to significant policy
changes.

Licensing requirements and obtaining necessary permits and approvals

in a foreign country under different legal systems can be time-consuming.

Financial Risks due to currency exchange and controls or restrictions on

the transfer of funds out of the country.

Contract documents and forms used on projects may be different.

CHAPTER 4: Tort Liability

Tort: generally refers to a private or civil wrong or injury, one that involves
negligence and that may arise independently of contract. (car driver and victim)
(which includes financial loss when based on a professionals opinion)

The fundamental purpose of tort law is to compensate victims of torts.

Punishment of negligent wrongdoers IS NOT a purpose of tort law.

Professional liability insurance should provide protection if an engineers

negligence results in damage arising in tort.

In order to satisfy the courts that compensation should be made, the plaintiff in a
tort action must prove that:
The defendant owed the plaintiff a duty of care
The defendant breached that duty by his conduct
The defendants conduct caused the injury to the plaintiff

If any 1 of these 3 aspects is not proven to the satisfaction of the courts, the
plaintiff will not win.
A significant factor in a tort action is the establishment of the standard of care
required of the defendant.

The standard is applied based on the premise that engineers have a duty to use
the reasonable care and skill of engineers of ordinary competence. The
reasonable care is measured by applicable professional standards of the
engineering profession at the time the services were performed.

Strict Liability: manufacturers and employers are held strictly liable when fault
is not necessary if compensation is to be provided. (not yet upheld in Canada)
(ex. All employees make contributions on behalf of employees and if someone is injured,
compensation is provided with no finding of fault.)
(ex. A manufacturer may be strictly liable if for any damages that result from the use of their
product.)

Vicarious Liability: The employer is responsible for damaged caused by its

employees. The employer provides compensation because it is presumed that
the employer is in a better financial position than the employee.

Concurrent Tortfeasors: When more than one party is liable in a tort action.
The defendants together are called concurrent tortfeasors.

Products Liability: The plaintiff must be able to establish that damage has
clearly resulted from appropriate use of a product, and the defendant
manufacturer must then persuade the court that at the time, the manufacturer
could not have foreseen the defective nature of the goods manufactured.
Canada has not yet taken a strict liability approach on products as the US has.

Products liability has developed through principles of both contract law and tort
law. The tort concept of fault has been applied, and implied contractual
warranties that the product is effective and the contract of a sale must also exist.

In products-liability matters, economic losses (in the absence of physical injury)

may, in some circumstances be recoverable.

Standards of Care and Duty to Warn: A manufacturer must warn the

consumer of any dangerous potential of the product by appropriate labeling.

Other Torts:
Tort of defamation: (if the statements that damage the reputation are true, there is
no liability)
o Libel in writing
o Slander verbal
 Occupiers Liability: The occupier of a property must exercise the
required standard of care to ensure the safety of individuals coming onto
that property.
Tort of Nuisance: Designed to alleviate undue interference with the
comfortable and convenient enjoyment of the plaintiffs land.
(ex. insecticide spray drifting onto other land)

CHAPTER 6: Proof

The burden of proof is on the plaintiff to prove the case against the defendant.

Engineers often find themselves making appearances as expert witnesses in

court.

The expert is permitted to express opinions with respect to his or her area of
expertise, and the witness should be cautious and restrict testimony to such
area.

You will be hired by one side and cross-examined by counsel from the other
party.

Preparation is of the utmost importance in litigation. The expert witness should

clearly understand the issues in the lawsuit and be aware of the scope of
questions that can be reasonably expected.
CHAPTER 7-15: Contracts

For a contract to be binding and enforceable, the following elements must be

present:
An offer made and accepted
Mutual intent to enter into the contract
Consideration or offer - (an exchange of promises, each promise representing
something of value.payment of money is not essential)
Capacity to contract - (cant be a minor, drunk, or crazy.enforceable by the drunk if
the other party knew they were intoxicated)
Lawful purpose - Contract wont be enforced if it is unlawful)

An offer is a promise made by one person to another.

Not all contracts are in writing.

Until it is accepted, the offer may be withdrawn by the offeror unless it is made
expressly irrevocable by its terms.

Irrevocable Offers: Bidders submit offers or tenders that have been made
irrevocable for a specific period of time. At any point during that period, the offer
may be accepted and a contract will be formed.

Option Contract: This contract is another means of keeping an offer open for a
certain period of time.
(ex. The party purchasing the option may want do exploration work for a period of time before
deciding to spend a large sum of money on the property)

Equitable Estoppel: A judge can stop the strict terms of a contract from being
followed if it is proven that the terms had changed outside of the agreement.
(often used when extensions to deadlines are agreed upon and then the person tried to go back
to the original written contract.)

Pursuant to contract law, consideration (or a seal) must be present in order to

make a change to a contract enforceable otherwise, it is just a promise not law.
The courts protect the person in the situation where a promise is taken as full
agreement.

Statute of Frauds: Ensures that certain types of contracts must be in writing to

be enforceable.

Rectification: This order can be applied for to rectify a contract because of a

secretarial or recording mistake.

Unilateral Mistake: A mistake made by only one party to a contract. Courts will
decide whether a contractor will be relieved of their mistake.

CHAPTER 16: Tendering Issues Contract A

Law of tendering in Canada gives the principle that there are 2 separate
contracts that arise in the tendering process:

1. Contract A the contract of irrevocability (that deals with the tendering

phase)

2. Contract B the construction contract (applies to the construction phase)

The number of number of tenders submitted is the number of Contract As that

are formed.

The original tender package contents cannot be changed without notifying

everyone or you are in Breach of Contract A.
CHAPTER 17: Contract Interpretation

Parties to a contract sometimes dispute the meaning of part of the contract. Two
different approaches can be taken when interpreting contracts:

Liberal Approach: takes into account the intent of the parties and may
lead to speculation on that intent.

Strict Approach: focuses on the precise words in the agreement and

may rely on dictionary meanings.

Contra Preferentem: When a contract is ambiguous or unclear, it will be

interpreted against the person that wrote it up.

Parol Evidence Rule: When verbal agreements outside of the written contract
are included as rule in a contract. In most cases, if a condition is agreed upon
verbally but is not included in the contract, then the condition is not part of the
contract.

Implied Terms: When the inclusion of obvious terms of a contract have been
overlooked. Where it is reasonable, implied terms may exist in a contract.

CHAPTER 18: Discharge of Contracts

There are several ways to discharge a contract:

Performance: When all parties have completed their respective

obligations, the contract is at an end.

Agreement to Discharge: Parties in a contract are always free to amend

the contract or agree to cancel or terminate the contract upon mutually
agreed terms.

Discharge Pursuant to Express Terms: It is advised to include in a

contract, terms where all parties may terminate the contract if certain
outside events were to occur. (ex. bankruptcy)
 Discharge by Frustration: When changing, unforeseeable
circumstances occur that may radically change the obligations of the
parties.
o Force Majeure: Provides that the time for completion will be
extended in the event of war, riot, flood, labor dispute or other
events that are beyond the control of both parties.

Discharge by Breach of Contract: One party fail to perform obligations.

o Discharge by Repudiation: When the party to a contract

expressly tells the other party that they have no intention of
performing contractual obligations.

CHAPTER 19: Breach of Contract

If a party to a contract fails to perform obligations specified in the contract, then

that party has breached the contract.
The innocent party is entitled to certain remedies, depending on the nature of the
breach and the terms of the contract.
Condition: an obligation that is essential or vital to the contract.
Warranty: an obligation that is NOT essential or vital to the contract.
A Breach of Contract is a cause for discharge only if its effect is to render it
purposeless for the innocent party to proceed further with performance.

Repudiation: When the party to a contract expressly tells the other party that
they have no intention of performing contractual obligations.
REMIDIES
A non-defaulting party is entitled to damages for losses incurred as a result of a
breach of contract.

Direct Damages: Actual calculated difference in the cost of having to choose

one service over the other. (the lowest bid is chosen and then they refuse to do the work,
so the second lowest bid is chosen and the party sues for the monetary difference between the
lowest and second lowest bid.)

Indirect Damages: Are consequential to the breach and might include damages
for lost profits or damages incurred if the contract is not fulfilled.

Liquidated Damages: Are pre-estimated damages if certain events were to

occur that are written into the contract under a Penalty Clause.

Quantum Meruit: When services have been requested and performed, but no
outside agreement was reached between the parties as to what payment would
be provided in return for the services, then the courts can award the person with
as much as is reasonably deserved for time spent and materials supplied.

Substantial Compliance: When a contractor has substantially complied with

the terms of a contract, yet failed to comply with some minor aspect of the
contract. The contractor will be paid the contract price minus the cost of
damages caused by the minor problems.

Specific Performance: When the courts require a party to perform a contractual

obligation like the sale of land or a personal item.

Injunction: A court order that prohibits or restrains a party from performing an

act.
CHAPTER 20: Fundamental Breach

Applies to a contract that contains an exemption clause (where parties limit their
liability if a breach of contract results) and makes the exemption ineffective.

CHAPTER 21: Agreement Between Client and Engineer

A contract between a client and an engineer must include all of the essential
contract elements.

The document will not specify the degree of care that is required of the engineer
in carrying out the services. But, the engineer is liable for incompetence,
carelessness or negligence that results in damages to the client and for not
performing with an ordinary and reasonable degree of care and skill.

CHAPTER 22: Concurrent Liability in Tort and Contract

Unless otherwise stated in a contract, the standard of care expected of an

engineer doing a job, is the same standard of care by which an engineers
performance is measured in tort.

For a breach of contract, there is a limitation period of 6 years from date of the
breach in which to press charges instead of when it is discovered.

In tort, the limitation period in which to press charges starts when the damages
are first detected.

CHAPTER 28: Arbitration and ADR

A lawsuit is not always the best way to resolve a dispute between contracting
parties, especially technical disputes.

Arbitration or Alternative Dispute Resolution (ADR): It is less costly and less

public than litigation.

An engineer that is an arbitrator is expected to act impartially and independently

of the parties to the dispute.

The Arbitration Act deals with the appointment of an arbitrator and sets out a
structure or set of rules to govern the conduct of an arbitration unless the parties
agree that some other structure or rules will apply.
The Act also gives arbitrators the jurisdiction to award prejudgment and post
judgment interests just like the courts have under the Courts of Justice Act.

Partnering: intended to respond to the need for improved attitudes amongst

industry participants to the importance of teamwork on projects.

This cooperative attitude should assist in resolving project disputes at an early

stage.

ONLY LITIGATION and ARBITRATION result in a JUDGMENT THAT IS

BINDING.

Project Neutral (project management overview): The companies appoint a

project neutral, usually an independent professional experienced in the industry
to be aware of developments on the project with a view to offering unbiased
advice and decisions.

Mediation: Resolving disputes through the negotiating process involving a

mediator who is to provide guidance and to facilitate the settlement process, a
go-between in communicating proposed settlements.

There is no judgment; the parties need to work out their differences.

CHAPTER 33: Industrial Property

Industrial Property Rights: Rights that generally relate to patents, trade-marks,

copyrights, and industrial design.