Mr Ethics

JUNE 9, 2014

Dear Mr. Ethics, The lead project designer wants us to turn over all documents related to a change order request we have submitted. The designer even wants our original bid sheets and profit calculations and bids from our subs. The architect thinks the change order work was accounted for in our bid and we have enough profit margin in the project to cover it.

Change Orders 100

Change Orders Bidding Documentation Profitability 100

Mr Ethics

JULY 17, 2014

Dear Mr. Ethics, The project architect and I recently prepared a project punchlist. The owner did not participate in the punchlist walkthrough due to a death in the family. She authorized us to proceed in her absence. I think the architect was distracted that day because he did not write some things that to me were clear punchlist items (like raised carpet; droopy copping).

US 100

US Site 100

Mr Ethics

AUGUST 20, 2014

Dear Mr. Ethics, An employee recently told me about a video that that is on YouTube. The video shows some of our workers sitting on the roof of a condo project we have in lawn chairs, drinking beer and lighting off bottle rockets. If I caught these employees in the act they all would be fired. Since this is on YouTube I do not think I can take any action because I did not witness it live.

OSHA 100

OSHA Site 100

Mr Ethics

SEPTEMBER 23, 2014

Dear Mr. Ethics, One of my employees just reported to me that he overheard another employee speaking angrily and disrespectfully to one of our clients. This is a violation of our ethics code. While I am upset at the person who spoke improperly to a client, I am more upset by the tattletale. I can’t stand rats and I want to punish that person more than the other.

100

100

Mr Ethics

OCTOBER 28, 2014

Dear Mr. Ethics: We have submitted a feasibility study regarding revenue projections of a parking garage to be built at a sports facility. The project owner thinks are projections are too low because we based our study on scheduled events and not possible, non-booked events such as ice shows; kid shows; etc. Our study will be the basis for municipal bonds to be sold to fund the garage’s construction.

Feasibility 100

Feasibility Guidelines Schedule Income 100

Mr Ethics

JANUARY 27, 2015

Dear Mr. Ethics, We are involved in one of those government projects that provide us with a monetary reimbursement for every disadvantaged business we hire. We are now being threatened with project termination because we did something good. The owner of one of disadvantaged businesses died suddenly. The heirs were going to shut down the company so we stepped in to keep the employees working by paying them directly.

US 100

US 100

Mr Ethics

FEBRUARY 24, 2015

Dear Mr. Ethics, We have been contracted to reconstruct a landmark theater that was recently destroyed by fire. The theater was originally designed by a student of Frank Lloyd Wrights who obtained a level of notoriety of their own. The theater owner has found the original plans and has given them to use to use to reconstruct the theater. One of my partners remembers hearing about a lawsuit involving a project architect’s and contractor’s use of someone else’s drawings.

Plans 100

Plans Claims Drawings Documentation 100

Mr Ethics

MARCH 26, 2015

Dear Mr. Ethics, We just inspected a pier that has been converted into a nightclub. The owner noticed sagging in the western most corner of the night club that extends about 80 feet in the water. Our investigation revealed severe undermining of that section of the pier due to the complete rotting of 4 pilings that are supposed to support that area of the pier.

Contract 100

Contract Inspections Safety 100

Mr Ethics

MAY 21, 2015

Dear Mr. Ethics, I just came from a project meeting where the owner said he wants to upgrade the windows we will be installing on a four story condo project. The owner gave me a change order with the cost he wants to pay for the upgrade. He indicated that he and the architect researched the windows and think the change order reflects a fair price for the upgrade.

Change Orders 100

Change Orders Profitability 100

Mr Ethics

JUNE 19, 2015

Dear Mr. Ethics, My partners are telling me we should be forming limited liability corporations for every project we do. They tell me that these “L.L.C.’s” will legally protect our personal assets and the assets of our regular company. They say our only risk is the assets that are in the L.L.C. for the project. Basically, if something goes wrong, we can walk away without much worry.

Legal 100

Legal Liability Drawings Claims 100

Mr Ethics

JULY 28, 2015

Dear Mr. Ethics, I consider myself an ethical person. Doing the right thing has always come easy. I am now faced with a situation where I am uncertain what to do. The construction manager on a project I am running has confided in me that he anticipates taking a new job in a few weeks. He is trying to clear out some outstanding change orders before that time.

Change Orders 100

Change Orders Negotiation Management Construction 100

Mr Ethics

OCTOBER 28, 2015

Dear Mr. Ethics, I have recently graduated from engineering college. I was hired by a great mechanical engineering firm. I regularly attend project presentations with the senior staff. One particular senior member is a great guy who probably knows more than I ever will. My problem is that when we do our presentations he never corrects the potential client when they refer to him as a PE.

Engineering 100

Engineering Industrial 100

Mr Ethics

NOVEMBER 30, 2015

Dear Mr. Ethics, We are the architect of record for a hospital, new construction project. Our contract calls for us to be the initial decision maker for any contractor disputes that arise on the project including any claims that allege errors and omissions against us. The general contractor wants that provision stricken from the project agreements because they believe that we should not be ruling on our own potential errors or omissions.

Liability 100

Liability Utah Agreement Claims 100

Mr Ethics

JANUARY 27, 2016

Dear Mr. Ethics, Our heavy highway construction department has been underperforming for years. The managing board has decided to remove the management team of that department. What we can’t decide upon is whether to provide those individuals with severance packages or not. Some believe providing a severance package to an underperforming team is unethical.

Management 100

Management US Construction 100

Mr Ethics

MARCH 22, 2016

Dear Mr. Ethics, One of our competitors recently let go its regional president of the West Coast construction office. The reason for the change is reported to be because the president and the company board of directors did not see eye to eye on future development. My boss thinks this is a good opportunity for us to tell potential clients that the president was let go because the company is in financial trouble and its long term viability of the company is not good.

Bidding 100

Bidding Contract Office US 100

Mr Ethics

APRIL 21, 2016

Dear Mr. Ethics, Our company owner instituted a program when the market tanked a few years ago. The program called for each project manager to meet with our regular developers and potential clients at least once a month. These meetings could include luncheons as well as meeting for cocktails. The program was a success in getting us opportunities and actual projects.

US 100

US Project Management Contract Management 100

Mr Ethics

JUNE 29, 2016

Dear Mr. Ethics, I am going to leave my current employer for a cross town rival. Before I give my two (2) week notice I want to take my paid two (2) week vacation. I am pretty sure my company will let me go once I give my notice because of the competition between the two (2) companies. I have about four (4) weeks before I need to start my new job. I told my new employer my plan and he is fine with it.

Employment 100

Employment Bidding Plans 100

Mr Ethics

JULY 26, 2016

Dear Mr. Ethics, I saw one of my project foremen using the company pick-up truck to haul cut fire wood. My foreman said he has a side firewood cutting and deliver business. We are allowed to use company trucks for personal use but not on side businesses. The side businesses contemplated by the company are industry related like home remodeling, painting, and handyman services.

Accidents 100

Accidents Remodeling Project Management Management 100

Mr Ethics

AUGUST 24, 2016

Dear Mr. Ethics, What should we consider when entering a project contract with a code of conduct provision? Regards, Ethically Aware. Dear Ethically, Obviously knowing the obligations created by the code of conduct is paramount. Those terms and conditions will set how you should act and what you need to do outside of complying with the code. If you are performing services on a project and the code requires you to admit to any errors or work defects performed by you; you could run afoul of your p

Liability 100

Liability Insurance Agreement Claims 100

Mr Ethics

SEPTEMBER 27, 2016

Dear Mr. Ethics, My company regularly gives to a political action committee run by a construction association. The purpose of the PAC is to promote construction issues to our state legislature and governor. We always give in accord with the laws governing political contributions. The PAC association has asked us to host at our company facilities a political round table where construction industry and government elected officials will discuss construction issues in our state.

Legal 100

Legal Bidding Contract US 100

Mr Ethics

OCTOBER 25, 2016

Dear Mr. Ethics, We are going through a code of ethics violation complaint investigation in our office. One of our estimators told us that another estimators discussed a bid with a competitor at a local association meeting. As our investigation progressed we could not find any support for the complaint. We advised the accusing estimator we were unable to find any evidence to support the claim and were going to discontinue the investigation.

Estimating 100

Estimating Bidding Claims Contract 100

Mr Ethics

MARCH 22, 2017

Dear Mr. Ethics, My company does a lot of public works projects. For the last three years the State’s Director of Construction has asked me to donate to his kids’ little league teams and buy Girl Scout cookies. I am glad to do both but I recently saw a newspaper article about a service provider being sued by the state for bribing government officials.

Compensation 100

Compensation Legal Organization Construction 100

Mr Ethics

JULY 10, 2017

Dear Mr. Ethics, We recently submitted a bid for the construction of a new bridge. In accord with the bid documents all bids were to be evaluated on a point system. The public owner was to evaluate each bid according to its conformance with plans and specifications. Another team was going to assess the aesthetic aspects of the proposed bid design. At the bid opening we were advised that was decided to combine the evaluation teams.

Bidding 100

Bidding Legal Documentation Consulting 100

Mr Ethics

APRIL 23, 2014

Dear Mr. Ethics, There seems to be a growing trend in the construction industry whereby project owners are placing all risk on the design professional or contractor. Owners are assuming less and less risk exposure through contract provisions that assign risk away from them. Additionally, we are being asked to carry higher limits of liability on our insurance policies while also assuming an indemnification obligation that protects the owner from claims even if the owner is the cause of the claim.

Risk 100

Risk Claims Insurance Liability 100

Mr Ethics

APRIL 23, 2014

Dear Mr. Ethics, When we submitted our bid to the project owner we accidentally included a copy of our final bid sheet. We discovered our error when the project owner called to advise us that we are the lowest bidder but they want to discuss lowering our number because of the bid sheet. We have told the owner that it is not right but their reply has been “you opened the door.

Bidding 100

Bidding Profitability Legal US 100

Mr Ethics

APRIL 23, 2014

Dear Mr. Ethics, As a contractor is it unethical for us to change the design of the architect in order to correct a design error without first telling the architect? We find it to be easier to make the change and then let the architect know about what we did. We seem to be able to keep the project moving by this approach. We do not have to wait days for a response.

Compensation 100

Compensation Contract US Design 100

Mr Ethics

APRIL 23, 2014

Dear Mr. Ethics, We are bidding a project that is located in a different state than our office. The bid documents and contract requires us to warrant we are licensed in the project state. We are not licensed in that state but will get a license if we are awarded the project. Does our bidding without a license violate any laws or codes of ethics? Regards, Paul.

Bidding 100

Bidding Claims Agreement Contract 100

Mr Ethics

APRIL 23, 2014

Dear Mr. Ethics, We have a subcontractor that has provided us with a bid that left out a couple of key design areas. We asked the subcontractor about this and expressed our concern that their bid amount does not cover this work. The subcontractor vigorously defended its bid and insists that it will complete the entire scope of its work for its bid amount if we award the contract to them.

Bidding 100

Bidding Subcontracting Legal Contract 100

Mr Ethics

APRIL 23, 2014

Dear Mr. Ethics, We use AIA contract documents with all our owners and subs. We always modify the documents to get better terms for us. For example, we insert a “paid when paid” clause; broader indemnification; and a lien waiver provision. We never let the owner or sub know we modified the document. Now one of our younger employees has voiced ethical concerns about not letting the other party know about the changes we make.

Contract 100

Contract Agreement AIA Lien 100

Mr Ethics

MAY 15, 2014

Dear Mr. Ethics, A project owner has asked us to come back to a project we completed 3 years ago. The owner is reporting water leaking in through an area of the roof where the mechanical equipment is located. This is a long term client of ours and they want us to help determine where the leak is coming from. My project manager is uneasy about going to the site since it has been so long since project close out.

Contract 100

Contract US Risk Agreement 100

Mr Ethics

JUNE 9, 2014

Dear Mr. Ethics, The lead project designer wants us to turn over all documents related to a change order request we have submitted. The designer even wants our original bid sheets and profit calculations and bids from our subs. The architect thinks the change order work was accounted for in our bid and we have enough profit margin in the project to cover it.

Change Orders 100

Change Orders Bidding Documentation Profitability 100

Mr Ethics

JULY 17, 2014

Dear Mr. Ethics, The project architect and I recently prepared a project punchlist. The owner did not participate in the punchlist walkthrough due to a death in the family. She authorized us to proceed in her absence. I think the architect was distracted that day because he did not write some things that to me were clear punchlist items (like raised carpet; droopy copping).

US 100

US Site 100

Mr Ethics

AUGUST 20, 2014

Dear Mr. Ethics, An employee recently told me about a video that that is on YouTube. The video shows some of our workers sitting on the roof of a condo project we have in lawn chairs, drinking beer and lighting off bottle rockets. If I caught these employees in the act they all would be fired. Since this is on YouTube I do not think I can take any action because I did not witness it live.

OSHA 100

OSHA Site 100

Mr Ethics

SEPTEMBER 23, 2014

Dear Mr. Ethics, One of my employees just reported to me that he overheard another employee speaking angrily and disrespectfully to one of our clients. This is a violation of our ethics code. While I am upset at the person who spoke improperly to a client, I am more upset by the tattletale. I can’t stand rats and I want to punish that person more than the other.

100

100

Mr Ethics

OCTOBER 28, 2014

Dear Mr. Ethics: We have submitted a feasibility study regarding revenue projections of a parking garage to be built at a sports facility. The project owner thinks are projections are too low because we based our study on scheduled events and not possible, non-booked events such as ice shows; kid shows; etc. Our study will be the basis for municipal bonds to be sold to fund the garage’s construction.

Feasibility 100

Feasibility Guidelines Schedule Income 100

Mr Ethics

JANUARY 27, 2015

Dear Mr. Ethics, We are involved in one of those government projects that provide us with a monetary reimbursement for every disadvantaged business we hire. We are now being threatened with project termination because we did something good. The owner of one of disadvantaged businesses died suddenly. The heirs were going to shut down the company so we stepped in to keep the employees working by paying them directly.

US 100

US 100

Mr Ethics

FEBRUARY 24, 2015

Dear Mr. Ethics, We have been contracted to reconstruct a landmark theater that was recently destroyed by fire. The theater was originally designed by a student of Frank Lloyd Wrights who obtained a level of notoriety of their own. The theater owner has found the original plans and has given them to use to use to reconstruct the theater. One of my partners remembers hearing about a lawsuit involving a project architect’s and contractor’s use of someone else’s drawings.

Plans 100

Plans Claims Drawings Documentation 100