Ethics Section Chapter 9 Ethical

Problems of Engineers in Private Practice

Engineers in private practices may face ethical problems, in addition to those
described in Chapters 7 and 8
The frequent interaction with clients, suppliers, contractors, subcontractors, and
government agencies occasionally leads to conflicts of interest, or ethical
dilemmas

Advertising for Engineering Work:

Engineer in private practice may not be known to the many corporations seeking
engineering services, and may feel the need to advertise
Every province has some restrictions on advertising engineering services
This is to ensure fairness and honesty in competitive evaluation of professional
qualifications and experience
Advertising is advertise in all types of mediums, and it seems to be obviously
demeaning and unprofessional to have engineering services to be advertised the
same way as soap, or chewing gum
However, advertising that communicates facts and data about the experience and
expertise of an engineering in private practice is fair and unobjectionable
In the past, the business card form of advertising was the only acceptable
advertising method, and the back pages of many engineering publications
continue to be filled with these advertisements
Most code of ethics state that the engineer shall not advertise their professional
services in a language that boasts about themselves, and will in no way be
derogatory to the dignity of the profession
In Ontario, they are able to advertise in a professional and dignified manner
factually, without expression
This advertising also cannot directly, or indirectly, criticize another licensed
engineer
Also, the association forbids any engineer to use their seal in any form of
advertising, including business heads and letter heads
However, the associations decorative logo, may be used on business cards and
letterhead, but this is only to signify membership in the Association

Engineering Competence:
The client is paying for competence when the engineer is hired to work on the
clients project
An engineer who attempts an assignment that is beyond their level of competence
is guilty of unethical conduct, and could be guilty of unprofessional conduct or
incompetence
This doesnt mean that the engineer has to be a world-class expert in every phase
of the project proposal before accepting in, but they should be sufficiently familiar
 with the subject to know that they can become competent through study or
research in a reasonable period of time without delaying the project
Essentially, the clients project must not be put at risk because of the engineers
lack of competence

Use of the Engineers Seal:

Each provincial Act provides licensed engineers the opportunity to use a seal for
the province that theyre in
The seal is usually an inked rubber stamp indicate that the person named on the
stamp is licensed in that province
The term seal and stamp are interchangeable
The Act, or regulation, typically requires that all final drawings, specifications,
plans, reports, and other documents involving the practice of professional
engineering, when these are given, must be dated and bear the signature and seal
of the professional engineer
Using this seal is not optional, and is a standard requirement by the act
Most documents state that they were prepared, or checked and approved, by the
person who sealed them
This seal has legal significance, since it indicates that the person who sealed the
documents accepts responsibility and accuracy of the documents
Also, it indirectly applies that the person who sealed the documents has direct
knowledge of the project, or when they are checking the documents for another
engineering, they indirectly have knowledge of the project to which the
documents are related
If an engineer signs and seals a document to which do not have thorough
knowledge may be guilty of professional misconduct, and may be liable for fraud
or negligence if this results in someone suffering damages

Checking Engineering Documents:

The term checked and approved usually means that the documents were prepared
by someone under the direct supervision of the person who signed and sealed
them
However, some provinces say that you can seal the work of others, only if a
thorough review of the work, and the engineer who seals these documents accepts
full responsibility
o You dont have to supervise them in doing this work in this case
As such, if you have performed a sufficient review and analysis of the work, and
that you are willing to accept full responsibility for it, then you can use your seal
for the work in most provinces
However, for some large scale projects, a proper review would need a complete
duplication of the analysis
Therefore, if the work was completely redone by you, it would be appropriate for
you to assume responsibility for it
Its very important to avoid situations where an engineer would be led into a trap
 o Example: Its common for an unlicensed person to ask an engineer to seal
documents to aid the person in practicing without a license or to avoid the
cost of a full engineering analysis on the work
Regardless of this, it is a case of professional misconduct when you assume
responsibility for work that is beyond your area of expertise, or for work that you
havent thoroughly reviewed for accuracy

Preparation and Approval:

If an engineer has prepared a document or drawing, and another engineer must
approve it, both of their seals should appear on it whenever possible
If this isnt possible, then only the approving engineer should seal it, indicating
that they will take full responsibility for the document or drawing
If final drawings cover more than one engineering discipline, its typically
recommended that the drawings are sealed by the approving engineer, who is
usually the chief engineering or project leader and by the design engineer for
each discipline

Preliminary Documents:
Preliminary documents, drawings, or specifications are usually not sealed, but are
clearly marked preliminary, or not for construction
Only the final drawings are sealed
Also, an engineer should not seal a document if it contains no engineering content
Sometimes, preliminary documents may need to be sealed. If this is the case, the
keywords preliminary or not for construction should be included prominently

Reports:
Individual pages of a report or drawings included in a report dont have to be
sealed only in the case when the report as a whole has been signed, sealed and
dated

Sealing of Detail Drawings:

The engineer generally has responsibility for a project as a whole, and their seal
must appear on the major reports, specs, or drawings that describe the project
Usually, the engineer isnt expected to seal every detail drawing
However, the drawings must be prepared under the engineers control and
supervision, and they assume responsibility for them, whether theyre sealed or
not

Sealing of Masters and Prints:

Master drawings must be complete and unambiguous, since they are usually the
major reference for describing the concepts and the details of the structure,
machine, process, or whatever is being designed
The appropriate time to seal a drawing is when its approved and released for
fabrication or construction
Modifications to final drawings have to be controlled and documented
 This control is helped by sealing just the prints (copies of the master), and not the
master drawing
In this way, the prints can be checked for modifications when sealed

Sealing of Soft Drawings:

It is very easy to make unauthorized changes on computer drawings and these are
difficult to detect
There has to be some form of control to prevent unauthorized copy or
modification to computer files
As such, for final drawings, these are password protected, or they are put on
storage media in secure locations
Seals are applied by hand only on the prints, and not electronically on the file
itself
These hard copies would then become master prints

Confidentiality:
The engineer has a clear obligation, under the code of ethics, to keep the affairs of
the client confidential
In some cases, a client may request to sign a NDA to prevent the engineer from
disclosing the clients affairs to any 3rd party, unless they are authorized to do so
by the client
Engineers in private practice may encounter a potential conflict of interest when
accepting work from a new client, who is a competitor of a former client
As such, an engineer should not accept a contract which would require the
disclosure of the former clients affairs, whether it be technical, business or
personal
This proprietary information, or trade secrets, could cause financial loss to the
former client if disclosed
Under the code of ethics, this requires the engineer to keep the former clients
trade secrets undisclosed, and it may not be advisable to accept work from the
new client, even if there wasnt an NDA signed

Conflict of Interest:
Engineer in private practice may occasionally encounter conflicts of interest
A conflict of interest occurs when a professional has an interest that interferes
with the services owed to the client
o Example: If an engineer recommends that a client purchase goods or
services from a company in which the engineer has partial ownership and
the client is not fully aware of this, the engineer has created a serious
conflict of interest and is contrary to the code of ethics
Another example could be when the engineer suggests that the client adopts a
course of action, where the main benefit is to reduce the engineers workload
If there isnt a similar reduction in the fees owed to the engineer, the engineer has
a conflict of interest, and this must be disclosed fully to the client
 If there are any conflicts, or potential conflicts of interest, the engineer must make
a full disclosure to the client of the engineers personal interest, whatever it may
be
Even if the client agrees that the conflict of interest is insignificant in the end,
they are at least informed, and are making a fully informed choice

Reviewing the work of another engineer:

When reviewing the working of another engineer, the welfare of the client or the
general public must come before the personal wishes of the engineer
It also must be emphasized that an engineer should be informed when their work
is being reviewed, but it isnt necessary to seek or obtain the engineers
permission to review their work

Design Calculations:
A client may request that an engineer submit calculations that were done to
support a recommendation
This results to a review of the engineers work, but it is done with the full
knowledge and cooperation of the engineer
Client has an ethical right to review these calculations and make a copy for
permanent record
Occasionally, the computation techniques, or data on which the computation is
made may be proprietary, and the engineer may not wish to divulge them
In this case, the conditions for reviewing the calcs should be negotiated before
hand, and the extent of disclosure should be discussed in advance
Usually, this is done by providing the data to the client, but the client must be sure
to keep the data confidential

Negligence and Civil Liability:

A breach of contract is a failure to complete the obligations specified in a contract
Negligence is a failure to exercise due care in the performance of engineering
Although its possible to obtain protection of your personal assets due to breach of
contract by purchasing liability insurance, this will not help you avoid disciplinary
action for negligence, incompetence, or professional misconduct

Case Study 9.1 Approval of Engineering Plans by Town Council

Summary:
Edward Beck is a consulting engineer in a small town
He has been elected to sit on the town council as a councillor and is a part-time
job
He has also been hired by a developer to draw up plans for the street layout and
water and sewage facilities for a new residential subdivision in the town
This developer submitted plans to the town council, which includes Becks
drawings and specifications
Later, in a town council meeting, Beck votes to approve these plans
 However, during this discussion, Beck did not publicly state his relationship with
the developer, and doesnt conceal it either
His signature and seal are on some of the plans that were submitted to the council
Everyone knows that he is the only engineer in town who does this type of work,
and he is certain that they would prefer to see local people hired for this project

Question:
Has Beck acted in an unethical manner when approving this project?

Authors Recommended Solution:

This situation in small towns having only a few engineers occurs often, and a
conflict of interest cant be avoided
Engineers shouldnt be disqualified from projects because they are performing a
public service as members of town councils
However, in this case, its not enough that everyone knows that Beck has a
business relationship with the developer
He should have made a clear statement of his involvement with the project, and
his relationship with the developer
Since this is a conflict of interest, he shouldnt have been allowed to vote, because
of course, it would serve in his best interests
Since he participated in a formal vote, without disclosing this conflict of interest,
Beck has exposed himself to the possibility of a complaint to the association, and
possible disciplinary action

Case Study 9.2 Advertising Products for Engineering Services

Summary:
Alonzo Firenze is a consulting engineer to the Acme Amphibious Transporter
Company and they manufacture small amphibious recreational vehicles with a
moulded practice hull
Each vehicle is driven by 8 low-pressure balloon tires and can manoeuvre quickly
and safely on land and water
When preparing for a television campaign to increase sales of the vehicle, the
television producer suggest that Firenze appears on camera to endorse the safety
aspects of the vehicle as an engineer and safety expert
Television producer points out that Firenze has conducted extensive tests, studies,
and surveys on the vehicle, and can speak with authority
Also, Firenze is very photogenic, and wants exposure to the general public

Question:
Is it unethical for Firenze to appear in the TV commercial and make a statement to
endorse the recreational vehicle?

Authors Recommended Solution:

 Though participation in a TV news or documentary program on vehicle safety is
considered to be suitable professional activity, endorsing a product in a TV
commercial will be seen to be unprofessional, and would lower the public esteem
of the engineering profession
As such, this is clearly unethical
The key purpose for commercials are to increase sales
Also, with the history of commercial advertisements, they have a sad history of
half-truths and appeals to emotion, rather than logic
An engineer who publicly praises a product that was manufactured by a
corporation that hired him has a clear conflict of interest
o He is obviously persuading the general public to buy the vehicle for the
company that he works for, increasing the sales of the company
This endorsement would also appear to be rehearsed, since the product is being
advertised by an employee of the same company that manufactures these vehicles
Also, Firenze wants to appear on the commercial for the personal exposure he will
receive
This isnt a proper format for advertising for engineering services
As such, he should not participate in the commercial, and should seek other
methods to better expose himself to the public and to the profession

Cast Study 9.3 Contingency Fee Arrangements

Summary:
As an engineer in private practice, youre considering whether to offer your
services on a contingency basis
What this means is that you will be paid a percentage of some outcome, and
depending on what outcome that is, what youll be paid is related to that outcome
Two clients wish to retain you
Client A wants to retain you to act as an expert witness in a lawsuit against a third
party
This lawsuit, if successfully, should result in a very large sum as a settlement
Client B has shown an interest in retaining you so that you could recommend
changes to the energy usage of a manufacturing process
After an initial study of the problem, you believe that the energy savings could be
immense
You also believe that Client B would be more responsive if fees were contingent
on the savings

Question:
Is it ethical to offer services on a contingency basis to either of these clients, with the
understanding that you would be paid a percentage of the legal settlement, or a
percentage of the value of the energy savings?

Authors Recommended Solution:

These cases are similar, but are distinctively different
 For Client A, youre acting as an expert witness
An expert witness is allowed to express opinions, whereas a non-expert witness is
confined to their testimony of known facts
Therefore, an engineer testifying as an expert witness must have stay neutral
toward the outcome of the case
However, as a recipient of a percentage of the potential settlement for Client A,
you would have a conflict of interest and your testimony would be suspect
o Youre supposed to stay impartial (neutral), but youll be receiving part of
the settlement if Client A wins
Therefore, its unethical to accept this on a contingency basis
You should bill Client A for the time and expenses or on a flat-rate basis, so that
reimbursement is independent of the outcome of this case
For Client B, this is somewhat different, since there isnt a need for impartiality
The bias you provide toward reducing energy consumption could be very
beneficial to the client
Also, you have a duty to yourself to charge an adequate fees
Therefore, the proposal to base the fee on a contingency isnt unethical here
However, there might be some perception of unethical behaviour, unless these
savings results can be measured accurately, and impartially, and can be achieved
without degrading the clients products or services
o You could be telling the client that there will be savings, even though there
wont be so you can get money
As such, even though this method of setting a fee is ethical, there are risks
associated to it

Case Study 9.4 Adherence to Plans and Control of Sealed Drawings

Summary:
Professional engineer in private practice is hired by a building contractor to
prepare drawings for the forms and scaffolding needed to construct a reinforced
concrete bridge
The forms and scaffolding must sustain the weight of about 1400 tonnes of
concrete, until the concrete is cured
The engineer preps the drawings, signs and seals the original drawings, and gives
this to the contractor
The contract later hires the engineer to inspect the completed structure
The engineer finds that the contractor made several changes to the plans
The engineer isnt sure now if the structure is safe or unsafe
Contractor stated that there isnt anymore time, and the concrete has to be poured
in 48 hours
The engineer feels that there is an obligation to the contractor because of their
previous professional relationship, and hopes that it will continue

Question:
What should the engineer do?
Authors Recommended Solution:
Two issues are at stake here
When the engineer passed the sealed original drawings over to the contractor,
control of the drawings was lost
Changes could have been made to the original and if these changes are unsafe,
this could cause problems for the engineer
As a general rule, prints (copies of the original) are only sealed and signed when
modifications are evident
o That way if there were changes to the original, this doesnt leave the
engineer liable, because those werent the engineers changes
o The engineer keeps the original, or places it in a secure place, and seals the
copies
However, it doesnt look like that any changes were made
Also, the contractor did not construct the forms and scaffolds according to the
plans made by the engineer, and now the engineer has to inform the contractor
that these changes must be evaluated to ensure that its still safe
The engineer should notify the contractor in writing that concrete must not be
poured until the review and re-inspection is complete
Also, the structure may be unsafe and could pose as a hazard to the general public
This analysis should be performed ASAP to meet the 48 hour deadline, but if it
isnt met, the project cannot proceed until all safety concerns have been satisfied
The contractor should have consulted with the engineer about the changes earlier
in the construction, so that the delay could have been avoided

Case Study 9.5 Fee Reduction for Similar Work

Summary:
Susan Johnson is a P.Eng. in a private practice
She is hired by Client A to design a small explosion-proof building for storing
flammable paints, chemical and explosives
The work is carried out by her design office, and copies of the plans are provided
to her client
After construction is complete, she is approached by Client B, and they have seen
the building and has a similar requirement
Client B suggests that the fee should be significantly reduced since the design is
already finished, and only minor changes are needed
As such, this would also save her time in making the full design

Question:
Would it be ethical for Johnson to reduce her fees as suggested? Is this good
business practice?

Authors Recommended Solution:

Establishing fair and reasonable fees depends on 5 things
 o 1. Level of knowledge and qualifications required
o 2. Difficulty and scope of the assignment
o 3. Responsibility that the engineer must assume
o 4. Urgency with which the work must be accomplished
o 5. Time required
Of these 5 factors, only 5th factor is likely to be reduced because a similar project
was successfully completed
The client benefits from receiving a design that has been tested, and is likely more
dependable and easier to construct
The rest of the factors remain unchanged
As such, this is poor business practice to accept a substantial reduction in fee for
providing the drawings for this structure
Also, even if Johnson makes savings on time, its unethical to pass these savings
onto Client B, since the original design was funded by Client A at a full price
Giving a reduced fee to Client B would raise some questions
o If the building fell, would the client ask for the entire sum back, like the
sum that Client A paid for, or the reduced price?
o Also, are savings passed on to the clients customers as a result of prior
experience?
Obviously, the answer is no.
However, if Client A was requesting a second building of a similar design, then it
would be appropriate to pass on some of the savings in terms of time

Case Study 9.6 Alleged Collusion in Fee Setting

Summary:
A large corporation wants to extend its manufacturing facilities and interviews
three consulting engineering firms to design and supervise the construction of the
new plant
Each firm states in its proposal that fees would follow the schedule proposed by
the association
Later, the corporation decides that it could reduce the cost of the project by doing
some initial studies themselves and providing its own engineers to assist in
supervising the construction of this plant
The corporation asks each of the firms to quote on how much its consulting fees
would be reduced if the corporation were to provide this assistance
The three firms meet, discuss the corporations request, and then submit the same
fee reduction amount
The corporation complains to the association and says the engineers colluded in
their bids, and its unethical and illegal conduct

Question:
Is it unethical for the three firms to agree on the fee reduction to be allowed for this
assistance?
Authors Recommended Solution:
Price competition is not a part of the associations contracting procedure, although
fee negotiation is appropriate once a consulting firm has been selected
In this case, the co-operative action by the firms isnt unethical
There wasnt any indication that the corporation wanted competition on a fee
basis
This complaint after the fact appears to reveal a misunderstanding on the part of
the corporation