Procurement and Ethics
Ethics are refereed to as the codes of conduct that are followed in any household or organization to enhance good behaviour and unify people so that they can achieve a common objective. Ethics are either specific to an organization or used by the general public. “The behaviour of professionals is therefore controlled by ethics which is maintained and updated by a professional association and understood by those in training as a requirement of qualification (Ashworth & Hogg, 2007, 44). ” o Scenario 1 I am the quantity surveyor whose task is to produce a tender documentation for a project-traditional procurement route, lump sum.
I have advised the client and have chosen a tenderer with the lowest bid. The problem that arises is that I have discovered that I had made an error on the bill of quantities that would raise the amount to ? 20,000 to the contact sum and I am the only person aware off the mistake. It is much easier to correct a problem at the beginning when you realize it than ignoring or solving it. This is so because when an error is discovered later and it has negatively impacted on the business, huge losses can be
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This will not only affect the business that can lose clients but also the person in charge who will not be trusted and can lose their jobs. According to the royal Institution of Chartered Surveyors (RICS) core values it clearly states that its members should always be honest. That is clients trust them know they will not be deliberately misled. In this Scenario, as the quantity surveyor employed by the client, it is my duty to tell the client the truth because this will bestow trust in me to the extent that they will he/she will consider me in the next assignment they.
Addressing the situation upon discovery will save on time as we will be able to discuss on the way forward and make adjustments where necessary so that the client can negotiate with the tenderer on new terms hoping they will understand as opposed top keeping quiet and complicating things when it is too late to amend them. Telling the truth also makes people concentrate in their work other than when they are dishonest, they will always be thinking that maybe the client has found out now they are wondering what will happen plus formulating questions and answers that they ca respond to when asked.
Being open and transparent-sharing full facts with clients and making them as plain as possible this way, I will be able to tell them things as they are and the impact of the changes as they will be acquired to pay the extra amount but in a way that is calm and that they will understand. RICS also says that its members should be accountable for their own actions and not blame others for their down falls. I will be accountable if I make it I am responsible enough to admit that I made an error in the quantity of block work bill which has resulted in the changes in price.
By being accountable, honest, open and transparent, I will set a good example for my other colleagues and this will save us a huge amount of time. Moreover, I will uphold the levels of competence consistent with my class of membership as stated in the CIOB (Chattered institute of building) code of conduct. Moreover, it states that members should act with integrity at all times, uphold and enhance dignity and the reputation of the institution.
The way I will handle the situation not only portrays the way I act but also how the company I work for will be viewed by others so my main goal will be to ensure that I keep a good image of the company by treating the clients well as I would like our company to be treated by others. o Scenario 2 I am a Professional quantity surveyor as well as the commercial director of a medium- sized regional contractor. The problem arises when my client; a local property developer for many years usually changes his mind about the required work on several occasions and this has brought bout huge losses and expenses on my part.
The client does not want to pay for the losses, threatening that if forced; he would no longer be our client. The client’s quantity surveyor also thinks I should give in to the client’s demands. The aim of any business is to continue making profit as well as expand and maintain its client base. When in such a situation a person is torn between maintaining a client because of assured business with them and keeping them but at the expense of your business; it is wise to look at the benefits and costs that will come with each decision as well as the ethics in place.
“Keeping the client will not only bring more losses to the business but also pose a threat to the business (Menzel, 2006). ” This is because the client will make it a habit and will always get away with it and the person who losses will be the business. The threat will occur in that other clients will see that the client is being favoured and will therefore act in the same way thus it will be difficult to stop such behaviour which will be drugging the business into financial turmoil. It is therefore my duty to protect my business from such threats and act according to the laws in place.
In the CIOB’s code of conduct number 13, it says, that “Members shall keep themselves informed of current thinking and developments appropriate to the type and level of their responsibility. They should be able to provide evidence that they have undertaken sufficient study and personal development to fulfil their professional obligations in accordance with the current guidelines for Continuing Professional Development (CPD). Through this, I can sue the client so that they honour the contract and make the payments as I have proof that the client has incurred the costs as a result of their actions.
I will also not listen to what the client’s quantity surveyor is saying as he is only acting to please the client and that is not good for any business. I always believe in doing what is right and no matter how much I may be convinced to side with a particular party so as to make them and others happy at my own expense. People who give in certain instances will only benefit for a while and will be left to carry their own cross when things go wrong as their advisors will not be there. Moreover, I presume that my action as a professional quantity surveyor will enable him to see and learn from my actions and become better at his job.
If they do not change, then they ought not to be in this business. o Scenario 3 A professional quantity surveyor recently employed by a national retail chain to oversee the development of several new shops. Each of the projects will be completed by a different contractor working in a different part of the country. The problem in this scenario is that my new employer is making me to use an unfamiliar customised contract to recruit the contractors and this contract solely sides with the benefits accruing to the client and nothing on the contractor’s rights and privileges.
Since I am unable to quit my job because of the harsh economic situation that will make it difficult for me to get a new job, and according to CIOB code of conduct number 12 which say that, “Members shall not maliciously or recklessly injure or attempt to injure whether directly or indirectly, the professional reputation, prospects or business of others. ” my next option will be to confront my employer to use another contract by saying that I do not think they contactors are conversant with that type of contract hence they will need something that they will understand.
This will be a difficult task because I will be dealing with my superior but I have to do it as I will be held accountable if I choose to go with what he says. The ethics of leadership are based on the age-old principle that privileges must be matched with responsibility to be led (Wyburd, 1998,87) In addition, just as stated in RICS code of conduct, “I should have the courage to make a stand and be prepared to act if I suspect a risk of malpractice of any sort. ” My aim will be defending the rights of the contractors so that their will not be humiliated in their profession.
If he does not agree, I will quote CIOB code number 8 which says that, “Members shall only use the distinguishing letters of membership and appropriate description prescribed in Bye-Laws 21 and 22 and in accordance with Professional Conduct Regulation. ” So that he knows that although he is in control, rules have to be adhered to. Moreover, if he chooses to employ people in such a way, the long term effects is that employees will move jobs to go to their competitors as they are sure they will be working under better terms.
Thus he would not have acted with integrity as he will be putting his own gains above the welfare of others whom he has a professional responsibility over. Conclusion Ethics are very important in any work place as they help people and businesses to find solutions to problems they regularly face so that the organizations can be more productive and profitable. “When the principles of ethics are not properly understood, even attempts to be ethical can be bad for the business (Malachowski, 2001, 13)” Therefore, people need to be aware of the ethics in place so that they can serve the purposes they are meant for.
References Ashworth, A. & Hogg, K. (2007). Willis’s Practice and Procedure for the Quantity Surveyor, 12th Ed. Blackwell Publishing p. 44-55 Malachowski, A. R. (2001) Business Ethics: Critical Perspectives on Business and Management. Taylor & Francis, 2001 Menzel, D. C. (2006) Ethics Management for Public Administrators: Building Organizations of Integrity. M. E. Sharpe Pinnington, A. , Macklin, R. & Campbell, T. (2007). Human Resource Management: Ethics and Employment. Oxford University Press, Wyburd, G. (1998). Competitive and Ethical? How Business Can Strike a Balance Kogan Page Publishers,