The University of Western

Ontario

ES 4498G
Engineering Ethics,
Sustainable Development and
the Law
February 1, 2010

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Last Class
Professional and ethical issues for engineers in
management
Introduction to the issues

Adherence to the Act

Hiring and dismissal
Reviewing work and evaluating competence
Discrimination in engineering employment
Managing intellectual property

Discussion of case studies

Andrews Chapter 13

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Discussion Question 3
Who owns and uses pirated
software or music?
If so, would you do so in a business
environment?
What are the ethical issues
involved?

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Todays Class
Ethical issues for engineers in private
practice and consulting positions
Introduction to issues
Case studies Andrews Chapter 14

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Engineers in Private Practice and Consulting

Offering engineering services directly to the
public
Typically takes the role of advisor to a client
Consulting activities:

Engineering advice
Expert testimony
Feasibility studies
Detailed or specialized designs
Project management

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Engineers in Private Practice and Consulting

Certificate of Authorization required in Ontario
5 years post-graduate experience
Liability insurance, or notification to every client
Can be held by a company, but an engineer must be designated
as the P. Eng. who assumes responsibility for, and supervises,
the firm's professional engineering services.

In Ontario, title Consulting Engineer requires:

Certificate of Authorization
5 years post-licensure experience (in addition to 4 years prelicensure)
Primarily engaged in the independent practice of professional
engineering in Ontario for the last two years, with a CofA

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The Client-Consultant Relationship

Often a three-way relationship involving
supervision of a project on the owners
behalf
Client (owner) Contractor (designer/builder) Consultant (engineer)

Spectrum of relationships (D.G Johnson):

Independent Model
Balanced Model
Agent Model

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Advertising
Regulations made under the Act:
Professional and dignified
Factual and does not exaggerate
Does not directly or indirectly criticize another
engineer or employer
Must not use seal in advertising

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Advertising
PEO Guideline to Professional Practice:
Advertising may be considered inappropriate if it:
claims a greater degree or extent of responsibility for a specified
project or projects than is the fact;
fails to give appropriate indications of cooperation by associated
firm or individuals involved in specified projects;
implies, by word or picture, engineering responsibility for
proprietary product or equipment design;
denigrates or belittles another professionals projects, firms or
individuals;
exaggerates claims as to the performance of the project; or
illustrates portions of the project for which the advertiser has no
responsibility, without appropriate disclaimer, thus implying greater
responsibility than is factual.

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Competence
Competence is gained through education and
experience it is the asset that clients are paying for
Disciplinary action may occur for practicing outside your
competence
Can take on projects outside your competence,
provided:
Can become competent through study or research within a
reasonable period of time (does not delay project)
Can hire an experienced consultant without delaying the project

Know, maintain and expand your competence

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Use of the Engineers Seal

Issued to every member upon

licensure
An inked, rubber stamp
Every holder of a licence. . . who
provides to the public a service that is
within the practice of professional
engineering shall sign, date and affix
the holder's seal to every final
drawing, specification, plan, report or
other document prepared or checked
by the holder as part of the service
before it is issued.

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Relying on Work of Others

Often must rely on work prepared by others,

especially in larger projects
Must apply due diligence

Necessity
Applicability
Credibility
Quality of documentation
Corroboration
Limitations
Age
Integrity

By sealing a document that includes information

from others, you assume professional
responsibility for it

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Checking Documents
Simple checking vs. approving
If you will be sealing the work, you must
check details carefully
Sealing documents prepared by
unlicensed people may be seen as
violating the Act

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Preparation and Approval

If one engineer prepares and another
approves, include both stamps
If not possible, approving engineer should
seal
If drawings cover multiple disciplines, one
approving seal and qualified seals from
each of the design engineers

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Sealing of Documents
Preliminary documents, drawings, etc.
should not be sealed should be marked
preliminary or not for construction
Work with no engineering content should
not be sealed
Shop drawings (e.g. steel connections) do
not need to be sealed if they follow
standard practices and do not require
engineering judgment

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Sealing of Documents
Engineer responsible for project as a
whole and should seal major reports,
specifications and drawings
Individual drawings in bound reports need
not be sealed, provided report is sealed
Must control seal and drawings bearing it
seal prints when released for
fabrication/construction, keep master
documents unsealed

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Sealing of Documents

Soft documents computer software, CAD drawings,

etc.
PEO policy on matters related to electronic documents is
provided in the Guideline for the Use of a Professional
Engineers Seal.
Difficult to detect alterations and maintain control
Professional engineers are allowed to scan or otherwise create
electronic facsimiles of their seals and signatures and to apply these
to electronic documents. Professional engineers doing so should
consider use of appropriate security measures, since an electronic
drawing with a seal and signature could be changed without the
engineer's knowledge and a third party would still expect that the
engineer is responsible for the entire content of the document.

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Sealing of Documents

PEO policy on matters related to electronic

documents is provided in the Guideline for the
Use of a Professional Engineers Seal. See the
Publications Section of the PEO website for
more details.

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Confidentiality
Cannot disclose confidential information
of client without permission
May have to refuse work where a conflict
of interest may arise; failure to do this
may violate confidentiality agreement and
Code of Ethics
In environmental projects, may have to
violate confidentiality to protect public
PEO guideline recommends inclusion of a
clause in confidentiality agreement
covering this situation

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Conflict of Interest
More common for engineers in private
practice
Can be related to confidentiality, financial
interests or as simple as reduced
workload
Actual Potential - Perceived
Must make full disclosure to client or risk
complaint of professional misconduct

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Reviewing Work
May be a sensitive situation
PEO Guideline recommends notification
of the original engineer, even when
relationship with client has been
terminated
Changes should be discussed with
original engineer, acceptance of mutuallyagreed upon changes does not relieve the
original design engineer of responsibility
Client may request submission of
calculations amounts to a review

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Bidding for Engineering Services

Quality-Based Selection (QBS) recommended

Separates the process of selecting the best-qualified
engineer/firm from the process of fee negotiation
Endorsed by FIDIC and ACEC

Competitive bidding not illegal or unethical, but

may result in lower value for the client
Recommended PEO publications:

Adding Value to Engineering Projects through QualificationBased Selection

Guideline for the Selection of a Professional Engineer
Schedule of Fees For Engineering Services

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Bidding for Engineering Services

The qualification-based selection system provides the best
value-for-money in professional engineering services. It
involves the selection of an engineering consultant using the
following qualitative criteria:

technical competence
experience on similar projects
proven performance
availability of dedicated personnel for the duration of the project
ability to perform within time constraints
location and/or local knowledge, where this is of importance to
the project
professional independence and integrity
managerial ability.
From PEO Guideline for the Selection of a Professional Engineer

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Bidding for Engineering Services

With professional services there are
ultimately only two elements which a client is
retaining, i.e. the engineers knowledge and
time. Shortchanging on a professional
engineering fee will result in the substitution
of less skilled engineers or less time put into
the assignment, thus potentially
shortchanging the project
From PEO Guideline for the Selection of a Professional Engineer

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Bidding for Engineering Services

Kickbacks, open or secret
commissions or considerations etc.
are unethical (and likely illegal)
Supplanting intervening in the
client-engineer relationship of a
colleague and convincing the client
to fire the original engineer and hire
the intruding engineer.

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Negligence and Liability

Two main sources of liability: breach of contract and

negligence
Protection may be obtained through incorporation (for
breach of contract) and liability insurance (for negligence)
Not possible to avoid disciplinary action for negligence,
incompetence or professional misconduct
By incorporating their practice, individual engineers can protect
personal assets against an action for damages for breach of
contract. After incorporation, it is the company that is the
contracting party and not the individual. As for protection from
liability for negligence, there is nothing available to engineers
other than careful, thorough engineering and insurance.
(PEO Guideline to Professional Practice)

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Consulting Codes of Ethics

Association of Consulting Engineers
of Canada (ACEC) and the
International Federation of
Consulting Engineers (FIDIC)
Similar considerations to PEO Code
Focus on duty to clients and other
consultants

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Position Paper
Due February 8 by 4pm
Hardcopy to Locker 1-47 outside 2099
Electronically to turnitin.com through
WebCT

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Ontario

Case Studies
Ethical Problems in Private Practice

14.1 Conflict of Interest

14.2 Consulting
14.3 Contingency Fee Arrangements
14.4 Adherence to Plans
14.5 Fee Reduction for Similar Work

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Ethical Problems in Private Practice

Engineering Design approach to ethical cases:
1.
2.
3.
4.
5.
6.

Recognize the Need or Problem

Gather Information and Define the Problem
Generate Alternative Solutions (Synthesis)
Evaluate Alternatives (Analysis)
Decision Making and Optimization
Implementation

Also, consider if the problem is an issue pertinent to

the Code of Ethics (and if so, which part) and
whether engineers must accept greater
responsibility than others

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Case 14.1 Conflict of Interest

In voting to approve this project, has Beck acted

unethically?
Comments on suggested solution:

Should engineers be politicians?

Does it matter that everyone knows?
Should he be involved in the debate? The vote?
Are there specific articles of the Code involved?

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Case 14.2 Consulting

Discuss Epsilons actions, as well as those of

ABC and XYZ.

Workplace safety
Design safety
Appropriateness of payments
Dismissal

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Case 14.3 Contingency Fees

Would it be ethical to offer your services on a

contingency basis to either of these clients, with
the understanding that you would be paid a
percentage of the legal settlement (Client A) or a
percentage of the value of the energy savings
(Client B)?
Comments on the recommended solution:
How do these two cases differ?
Is there guidance in the Code or the definition of
professional misconduct?
What type of fee structure is appropriate for engineers?

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Case 14.4 Adherence to Plans

What should the engineer do?

Comments on recommended solution:
Is the choice of how to proceed clear?
How can you stop the contractor?
Should you charge for the additional work of reviewing
the changes?
How could the situation be avoided?
What are the issues relating to control of the original
drawings?
Review the case history presented in Chapter 8

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Case 14.5 Fee Reduction for Similar Work

Would it be ethical for Johnson to reduce her

fees as suggested? Would it be good business
practice?
Comments on recommended solution:
Does Johnson have a duty to the profession to charge
reasonable fees?
What if the clients refused to pay?
Where should the line be drawn between good
business and good ethics?

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Case 9.6 Alleged Collusion in Fee Setting

Is it unethical for the three consulting firms to

agree on the fee reduction to be allowed for the
assistance?
Comments on recommended solution:
Do you think the corporation misunderstood the
guidelines for the selection procedure?
Are there advantages to competitive bidding?
What do you think the best way to hire an engineer
would be?

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Discussion Question
Manufacturing company establishing
new plant in developing country
Manufacturing line prohibited in
Canada because it creates toxic waste
Laws in developing country do not
prohibit the line
What are the ethical issues involved?

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Next Class
In-Class TEST
Then Conference Week, then:
Topics
Introduction to law for engineers
The Canadian legal system, business organizations,
tort liability

Readings
Marston, Chapters 1, 2, 4
Andrews, Chapter 5