Example Case Study (1)

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Conflict of Interest in Curb & Gutter Project Engineer A, a civil engineer, was awarded a design contract for several kilometres of curb and gutter, including extension of the existing storm sewer. The contract involved four stages: designing the modifications, preparing construction specifications, evaluating the contractors’ bids, and providing field inspection services during the construction. Engineer A undertook the design and prepared the contract documents. When advertised for bids, Engineer A told the Clerk he had a financial interest in one of five construction companies in the area that would bid on the construction. The Clerk asked the mayor to convene a meeting of Council. The Council found the process was irregular, but agreed to it (after some debate). Engineer B was hired to review the bids. Engineer A’s construction company was the successful bidder and the company proceeded to construct the curb, gutters and sewer extension that Engineer A had designed. Engineer B provided the field inspection services during the construction. Engineer A received no further design or construction contracts from the community.

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Law and Ethics

Transcript of Example Case Study (1)

Page 1: Example Case Study (1)

Conflict of Interest in Curb & Gutter Project

Engineer A, a civil engineer, was awarded a design contract for several kilometres of curb and gutter, including extension of the existing storm sewer. The contract involved four stages: designing the modifications, preparing construction specifications, evaluating the contractors’ bids, and providing field inspection services during the construction. Engineer A undertook the design and prepared the contract documents.

When advertised for bids, Engineer A told the Clerk he had a financial interest in one of five construction companies in the area that would bid on the construction.

The Clerk asked the mayor to convene a meeting of Council. The Council found the process was irregular, but agreed to it (after some debate). Engineer B was hired to review the bids. Engineer A’s construction company was the successful bidder and the company proceeded to construct the curb, gutters and sewer extension that Engineer A had designed. Engineer B provided the field inspection services during the construction.

Engineer A received no further design or construction contracts from the community.

Page 2: Example Case Study (1)

Provide a one sentence answer to the following 4 questions

Question 1: Did Engineer A have a conflict of interest in this case and why (was this ethical)? – 2 marks

Question 2: Was his conduct professional (Consider the golden rule of Moderation – Aristotle)? – 3 marks

Question 3: What would your answer be if Engineer A did not disclose his interest in the construction company – 2 marks

Question 4: Did the Community have the right to disqualify Engineer A from any further work and why – 3 marks

Question 5: Is this a real or made-up situation (yes or no) – 0 marks

Answer 1: A Conflict of Interest did not exist as Engineer A disclosed the conflict before the tender was issued

Answer 2:The conduct was not professional as the golden rule seeks a balance while in this case Engineer A should have understood that this disclosure would cause the Community additional cost to hire a second engineer even though the original contract was to over see the construction by Engineer A.

Answer 3:A Conflict exists and is unprofessional and likely criminal

Answer 4:Yes they did – although personal bias should not factor into the decision Council can disqualify any bidder if they have experienced problems with them in the past – poor product, sloppy job...