Construction Industry Ethics

1. Introduction

How we conduct ourselves professionally can influence the success of our careers. Your instructor, Dr. Ken Sands, reviews the importance of knowing industry ethical standards and how an awareness of common issues will help you make better decisions.

2. Legalities of Ethics

Ethical behavior and legal behavior are not necessarily in line with one another. As you proceed through the course, learn to make distinctions between what the law allows and what is ethically right.

3. Morals

Ken explains the difference between ethics and morals, noting ethical guidelines set the standards for how decisions are made.

4. Codes of Ethics Guidelines

Companies often provide ethics policies for employees, but what are those policies based on? Get familiar with the various associations that help determine general ethics guidelines like the Construction Industry Ethics and Compliance Initiative (CIECI).

5. CMAA Codes of Ethics: Ethical Practice Tenets

Discover the Construction Management Association of America (CMAA) and their five Ethical Practice tenets, which guide managers and companies on how to create honest, inclusive, and safe work environments.

6. CMAA Codes of Ethics: Professional Excellence Tenets

Ken reviews the CMAA’s Professional Excellence tenets, which cover best business practices on-site.

7. CMAA Codes of Ethics: Responsibility to the Public Tenets

Learn the Responsibility to the Public tenets, which cover risk mitigation and risk control on-site. Plus: why construction professionals must follow safety rules to protect their team and the public.

8. CMAA Codes of Ethics: Client-Centered Practice Tenet

Ken reviews the Client-Centered Practice tenets, which prioritize the client’s or owner’s interests to ensure their satisfaction and protect your reputation.

9. Business, Environmental, and Professional Ethics

The construction industry covers several sectors in which ethics are involved, including business, environmental, and professional. Learn how each sector relies on different organizations to outline ethical practices.

10. Ethical Issues from Design to Construction

There are always opportunities to make ethical decisions on a project, from the design phase through construction. Ken points out certain phase-specific scenarios that professionals encounter like having to flag issues in site plans.

11. Bid Shopping

Bid shopping occurs when the general contractor shares a subcontractor’s bidding price with others to try to get the lowest possible price on a bid. Ken explains why this is unethical and shares a story of how bid shopping damaged one project.

12. Bid Peddling

Bid peddling is when a subcontractor submits a bid to a general contractor after the bidding has taken place. Ken explains the ethical ramifications of bid peddling and how it can damage relationships.

13. Bid Rigging

Bid rigging is when a general contractor and a subcontractor set a fixed price for a bid, unbeknownst to the other subcontractors or the owner. Learn about the negative implications of bid rigging and how it violates ethical code.

14. Biased Bidding Evaluation System

There is often a set of qualifications subcontractors must have in order to bid on a project, like capital worth. Learn about the issues of a general contractor establishing a biased bidding evaluation system and how these biases can be avoided.

15. Overcharging and Price Gouging

Overcharging and price gouging often occur when homeowners aren’t savvy about costs. Ken reviews the ethical principles contractors should uphold and emphasizes the value of being client-focused.

16. Front-End Loading in Contract Administration

Front-end loading is when a contractor requests payment at the beginning of a project, rather than when the services are completed. Learn the logistical and ethical issues of front-end loading and how to negotiate around front loading so both parties–owner and contractor–are satisfied.

17. Handling of Project Changes in Contract Administration

Ken reviews how to address change orders without inflating prices, emphasizing how to maintain harmony between all parties.

18. Falsification of Experience in Contract Administration

Ken explains why falsifying your qualifications can jeopardize your professional reputation and a project’s success.

19. Use of Unqualified Subs/Workers in Contract Administration

What happens when contractors employ subcontractors who aren’t qualified? Ken explains why this is unethical and in breach of contract.

20. Use of Specialist Knowledge to Mislead Clients in Contract Administration

Ken reviews the ethical implications of using specialist knowledge—like monetary values, availability of materials, and labor costs—to deceive the owner and how to be more transparent.

21. Cutting Corners in Contract Administration

Cutting corners is never a long-term solution. Learn the ethical implications of cutting corners.

22. Project Abandonment in Contract Administration

Project abandonment often occurs when financial returns are insufficient or relationships are in crisis. In this lesson, you’ll learn alternatives to project abandonment and how to approach complications in a more ethical way.

23. Project Delivery Method

Learn how a project’s delivery method affects its ethics, particularly with regards to the relationships involved.

24. Financial Ethics in Construction

Most ethical issues arise during the pre-construction and bidding phases. Ken explains what primes the construction industry for ethical issues and how it’s working to solve them.

25. Corporate Culture

Ken explains the importance of setting high ethical standards, so everyone is on the same page about professionalism and is held accountable for their actions.

26. Superiors Committing Ethical Violations

Ken explains what to do if your superior asks you to commit an ethical violation.

27. Learning Ethical Culture as New Employee

There is always a learning period when joining a new company. In this lesson, Ken reviews best practices for becoming familiar with a company’s ethical culture.

28. Progress in Construction Industry Ethics

Learn how the construction industry is working to improve its ethical standards, from changing corporate culture to implementing government policies.

29. Conclusion

Your ethical decisions affect you and those around you. Ken explains why thinking of yourself as part of a team can guide you toward ethical leadership that benefits everyone.