construction ethics training program to identify and deter unethical practices enter
TRANSCRIPT
Construction Ethics
Training Program to Identify and Deter Unethical Practices
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Introduction
Program Purpose Ethical Transgressions Defined Program Format Overview Ethical Problems Identified Module
Intro/Define/Quiz Program Quiz Completion
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Program Purpose
The purpose of this training program is to identify the top 15 industry defined ethical transgressions and learn how to avoid and eliminate them.
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Ethical Transgression
Ethical Transgression-A violation of a law, command, or duty
as it pertains to ones ethics or morals.
The action of going beyond or overstepping some ethical boundary or limit
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Program Format Overview
Module Introduction Introduction of Construction Ethical
Transgression Construction Ethical Transgression
Defined Module Quiz Program Quiz
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Ethical Transgressions
The following research was conducted by Barbara Jackson of the California Polytechnic State University. In her study, she used a survey for contractors that identified the top 15 construction ethical transgressions. For this program, we will be using her findings to target which transgressions to define and try to eliminate. These include…
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And the Winners are…
Improper or Questionable Bidding
Misrepresentation of Work Poor Quality Control Technical Incompetence Abuse of Company
Resources Alcohol/Drug Use Failure to recognize or
resolve subcontractor concerns
Abuse of Client Resources
Conflict of Interest, Improper Political/Community Involvement
Mishandling Sensitive Information
Failure to Protect Public Health, Safety, or Welfare
Discrimination, Favoritism, or Harassment
Misrepresentation of Financial Status or Records
Failure to Protect the Environment
Improper Relations with Clients, Contractors, etc.
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Module 1
Engineers Uphold and Advance the…
…Integrity…
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Issue Overview
Improper or Questionable BiddingFrequency Rank- 1st
Seriousness Rank- 2nd
Key Form(s) of Violations• Low Bid Disclosure• “Idea” Shopping
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Improper/Questionable Bidding
Bid Shopping- The practice of a general contractor who, before the
award of the prime contract, discloses to interested subcontractors the current low sub-bids on certain subcontracts in an effort to obtain lower sub-bids
Forms of ViolationLow Bid Disclosure“Idea” Shopping
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Improper/Questionable Bidding Low Bid Disclosure
Probably the most common type of bid shopping, this method is employed by companies with the main purpose of driving down the cost
Subcontractors lose outQuality of work is driven downStrains contractor/subcontractor
relationships
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Improper/Questionable Bidding Idea Shopping
Taking different subcontractors ideas for construction and giving them to the subcontractor whom they would like to work with
Strains contractor/subcontractor relationships
Possibility of stolen “intellectual” property resulting in law suit
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Improper/Questionable Bidding Solutions
Reverse Auctions• This method allows subcontractors to bid
work on a real time website allowing all involved to see bids
• This method levels playing field and lowers cost for contractors
Contractor uses “One bid = Lowest bid” policy, guaranteeing no bid shopping and subs. only get one bid
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Issue Overview
Misrepresentation of Completed Work or Value of Work Frequency Rank- 2nd
Seriousness Rank- 15th
Key Form(s) of Violations• Completion of work claims• Improper material installed
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Misrepresentation of Completed Work or Value of Work
Completion of Work Claims Most commonly occurs as front-end loading
a schedule Subcontractors claim more work is done
than actually is completed in order to increase cash flow
Consequences• Straining of Contractor/Subcontractor
Relationships• Subcontractors can leave job with money for work
that is not completed• Project cash flow from owner can be disrupted NEXT
Misrepresentation of Completed Work or Value of Work
Improper Material InstalledValue of work is inconsistent with
construction documentsBuilding is not built to owners
specificationsConsequences
• Lawsuits from Owner/Architect/GC etc.• Project quality decreased• Safety hazards may result
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Misrepresentation of Completed Work or Value of Work
Solutions CM/GC accurately charts work progress and
pays accordingly Subcontractors accurately report labor hours
and material costs, if not a penalty is issued to them
GC/Subcontractors install materials properly and accurately to the contract documents
Owner/Architect/CM site tours to verify work completed and material accuracy
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Issue Overview
Poor Quality Control or Quality of Work Frequency Rank- 3rd
Seriousness Rank- 4th
Key Form(s) of Violations• Workmanship Monitoring• Workmanship Methods of
Installation/Materials Used
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Poor Quality Control or Quality of Work Workmanship Monitoring
Responsibility of all personnel on site Conflicts can develop between trades
increasing cost of the project and delaying the schedule
Consequences• Lawsuits• Poor quality to owner• Bad reputation• Safety Risks
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Poor Quality Control or Quality of Work Workmanship Methods of
Installation/Materials Used Coordination conflicts can develop between
trades Value is not consistent with construction
documents Consequences
• Safety Hazards• Budget Overruns • Schedule Delays• Lawsuits• Owner dissatisfaction
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Poor Quality Control or Quality of Work
SolutionsDevelop a series of quality control
documents for frequently overlooked construction processes
Develop an on site quality reporting system for subcontractors (whistle blowing)
Give rewards for superior quality work
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Issue Overview
Mishandling Sensitive Information Frequency Rank- 10th
Seriousness Rank- 12th
Key Form(s) of Violations• Disclosing Bid Information• Disclosing Owner’s Proprietary
Information
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Mishandling Sensitive Information Disclosing Bid Information
Directly related to bid shopping Illegally reporting project data to gain a
competitive advantage or to work with a given contractor
Consequences• Strained contractor/subcontractor relationships• Quality driven down• Contractors/subcontractors lose profit margin
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Mishandling Sensitive Information Disclosing Owner’s Proprietary Information
Financial information of owner given to others
Classified information leaked to the public on government jobs
Consequences• Lawsuit• Firing of Contractor/Subcontractor• Security Risks• Bad Reputation
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Mishandling Sensitive Information
SolutionsDo not offer job/project to parties that
disclose informationRemove responsible party from jobPublicly take responsibility for
mishandling of information
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Issue Overview
Misrepresentation of Financial Status or Records Frequency Rank- 13th
Seriousness Rank- 8th
Key Form(s) of Violations• Public Companies Accounting Practices• Falsifying Company Worth
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Misrepresentation of Financial Status or Records Public Company Accounting Practices
Falsely reporting the companies financial position
Insider Trading Consequences
• Jail Time• Lawsuits• Investor loss of money• Bankruptcy• Folding of the company
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Misrepresentation of Financial Status or Records Falsifying Company Worth
Done so company can get extra bonding capacity
Companies lie about how much work they have taken on or how much the company is actually worth
Consequences• Lawsuits• Fines• Bankruptcy• Folding of the Company
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Misrepresentation of Financial Status or Records Solutions
Government Regulation• Sarbanes-Oxley Act
Act honestly and report numbers that are true. Remember, these laws are created to protect investors as well as companies. Overextending your bonding capacity can bankrupt your company if a project goes bad
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Module 1 Quiz
The following five questions are used to review the previous quiz material.
You must answer all five questions correctly to advance to the second module.
GOOD LUCK!
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Question #1
The current outlook for your project is $300,000 over budget and you are looking for ways to trim budget. Your purchasing landscaping and the lowest bid came exactly what you have budgeted for. What is the most ethical action you can take to benefit everyone?
a) Purchase materials yourself and higher cheap labor to install
b) Resend the request for bid proposal with the lowest bid attached asking for lower bids
c) Contact all subcontractors and tell them all bids were too high and that an online auction for the contract will take place
d) Do nothing
Question #1
The current outlook for your project is $300,000 over budget and you are looking for ways to trim budget. Your purchasing landscaping and the lowest bid came exactly what you have budgeted for. What is the most ethical action you can take to benefit everyone?
a) Purchase materials yourself and higher cheap labor to installb) Resend the request for bid proposal with the lowest bid attached
asking for lower bidsc) Contact all subcontractors and tell them all bids were too high
and that an online auction for the contract will take placed) Do nothing
CORRECT! Providing a level playing field for all parties involved while still doing everything necessary to
control the budget is the right ethical solution.
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Question #1
The current outlook for your project is $300,000 over budget and you are looking for ways to trim budget. Your purchasing landscaping and the lowest bid came exactly what you have budgeted for. What is the most ethical action you can take to benefit everyone?
a) Purchase materials yourself and higher cheap labor to install
b) Resend the request for bid proposal with the lowest bid attached asking for lower bids
c) Contact all subcontractors and tell them all bids were too high and that an online auction for the contract will take place
d) Do nothing
WRONG
Review: Improper o
r Questio
nable Bidding
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Question #2
Your filling out payment applications for your mechanical contractor. You notice on the sheet he claims 50% of ductwork is installed and wants paid for it. However you have just been on site and only the first floor of five has ductwork installed. You should…
a) Pay the subcontractor what he requestsb) Contact the subcontractor and ask for justification of his
value. Decide on the correct value and pay accordinglyc) Suspend payment to the contractor until the following
month for deliberately trying to deceive youd) Make the subcontractor work around the clock until he has
the value completed that he claims
Question #2
Your filling out payment applications for your mechanical contractor. You notice on the sheet he claims 50% of ductwork is installed and wants paid for it. However you have just been on site and only the first floor of five has ductwork installed. You should…
a) Pay the subcontractor what he requestsb) Contact the subcontractor and ask for justification of his value.
Decide on the correct value and pay accordinglyc) Suspend payment to the contractor until the following month for
deliberately trying to deceive youd) Make the subcontractor work around the clock until he has the
value completed that he claims
CORRECT! Asking the sub for justification allows for the proper payment amount to be reached and does not
misrepresent any information to the owner. This is the most ethical and fair by far.
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Question #2
Your filling out payment applications for your mechanical contractor. You notice on the sheet he claims 50% of ductwork is installed and wants paid for it. However you have just been on site and only the first floor of five has ductwork installed. You should…
a) Pay the subcontractor what he requestsb) Contact the subcontractor and ask for justification of his
value. Decide on the correct value and pay accordinglyc) Suspend payment to the contractor until the following
month for deliberately trying to deceive youd) Make the subcontractor work around the clock until he has
the value completed that he claims
WRONG
Review: Misrepresentatio
n of Completed
W
ork or Value of W
ork
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Question #3
Mold is a growing problem in the industry. You are the site superintendent currently monitoring installation of the building’s brick façade. A satisfactory action to take to ensure that proper quality control is taking place would be to…
a) Walk around the site so workers feel the presence and perform properly
b) Create a document that quantifies the quality of installation and have foreman sign off on it
c) Delegate quality control to foremand) Have architect conduct daily site visits
Question #3
Mold is a growing problem in the industry. You are the site superintendent currently monitoring installation of the building’s brick façade. A satisfactory action to take to ensure that proper quality control is taking place would be to…
a) Walk around the site so workers feel the presence and perform properly
b) Create a document that quantifies the quality of installation and have foreman sign off on it
c) Delegate quality control to foremand) Have architect conduct daily site visits
CORRECT! The development of quality control documents will help quantify the quality of work conducted.
This will help eliminate poor quality as well as arguments over responsibility for poor workmanship
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Question #3
Mold is a growing problem in the industry. You are the site superintendent currently monitoring installation of the building’s brick façade. A satisfactory action to take to ensure that proper quality control is taking place would be to…
a) Walk around the site so workers feel the presence and perform properly
b) Create a document that quantifies the quality of installation and have foreman sign off on it
c) Delegate quality control to foremand) Have architect conduct daily site visits
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WRONG
Review: Poor Q
uality Contro
l or Q
uality of
W
ork
Question #4
You are in charge of your projects finances. In a scope meeting with three subcontractors, you accidentally disclosed the bid of one of the contractors on a document. You should…
a) Apologize to the subcontractor and take complete responsibility for the error
b) Disclose the remaining bids to the other subcontractors
c) Select that contractor because you feel badd) Eliminate that contractor from the award process
Question #4
You are in charge of your projects finances. In a scope meeting with three subcontractors, you accidentally disclosed the bid of one of the contractors on a document. You should…
a) Apologize to the subcontractor and take complete responsibility for the error
b) Disclose the remaining bids to the other subcontractorsc) Select that contractor because you feel badd) Eliminate that contractor from the award process
CORRECT! The proper ethical move is to take responsibility for the error. This will show
professionalism and build a better relationship with the given subcontractors
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Question #4
You are in charge of your projects finances. In a scope meeting with three subcontractors, you accidentally disclosed the bid of one of the contractors on a document. You should…
a) Apologize to the subcontractor and take complete responsibility for the error
b) Disclose the remaining bids to the other subcontractors
c) Select that contractor because you feel badd) Eliminate that contractor from the award process
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WRONG
Review: Mishandling Sensitiv
e Inform
ation
Question #5
Your company is currently bonded to do $25 million dollars worth of work. Currently you are doing $22 million, but you are submitting a proposal for a $7 million job, putting you $4 million over your bonding capacity. This may result in…
a) Bankruptcyb) Folding of the companyc) Lawsuitsd) All of the Above
Question #5
Your company is currently bonded to do $25 million dollars worth of work. Currently you are doing $22 million, but you are submitting a proposal for a $7 million job, putting you $4 million over your bonding capacity. This may result in…
a) Bankruptcyb) Folding of the companyc) Lawsuitsd) All of the Above
CORRECT! All of the above are possible results of your company doing more work than it is
bonded for. The ethical practice is to not falsify your company financial records
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Question #5
Your company is currently bonded to do $25 million dollars worth of work. Currently you are doing $22 million, but you are submitting a proposal for a $7 million job, putting you $4 million over your bonding capacity. This may result in…
a) Bankruptcyb) Folding of the companyc) Lawsuitsd) All of the Above
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WRONG
Review: Misrepresentatio
n of Financial
Status or R
ecords
Quiz Results
All Questions Answered Correctly???
Yes
No
Module 2
…Honor…
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Issue Overview
Failure to Protect the Environment Frequency Rank- 14th
Seriousness Rank- 10th
Key Form(s) of Violations• Waste Control
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Failure to Protect the Environment
Waste ControlEnvironmental areas for protection:
• Soil• Air Quality• Water• Animal & Plant Life
Control and manage waste products caused by the project
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Failure to Protect the Environment Waste control
Problems• Waste enters soil, air, and water polluting and
damaging the environment• Waste is not properly managed and builds up• Recycling is not conducted wasting valuable
materials• Consequences
• Lawsuits
• Large Fines
• Site Shutdown
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Failure to Protect the Environment
SolutionsSetup areas for recyclingConduct good quality control to help
stop pollution of the site and environment
If accidents occur, contact health officials immediately to clean up the site as quickly as possible
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Issue Overview
Failure to Protect Public Health, Safety, or Welfare Frequency Rank- 11th
Seriousness Rank- 3rd
Key Form(s) of Violations• Site Safety
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Failure to Protect Public Health, Safety, or Welfare
Site SafetyPollution of air can cause toxins to be
breathed in by the publicContamination of water may cause
people to become illObjects falling from construction can
cause injury/death to the public and damage public property
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Failure to Protect Public Health, Safety, or Welfare Consequence
Injury/Death to publicLawsuitsFinesProject shutdownBad reputationJail timeGuilty conscience
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Failure to Protect Public Health, Safety, or Welfare Solutions
Always have safety talks with people on site Develop and maintain the proper site safety
regulatory devices (i.e. Site fencing, safety nets, etc.)
Review MSDS sheets to control potentially toxic materials
Have site safety inspections conducted regularly
In the even of an accident, contact the proper authorities immediately to help control the situation
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Issue Overview
Technical Incompetence or Misrepresentation of Competence Frequency Rank- 4th
Seriousness Rank- 9th
Key Form(s) of Violations• Falsifying Trade Skills
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Technical Incompetence or Misrepresentation of Competence
Falsifying Trade Skills Sometimes done so subcontractors can
maintain a sufficient workforce Individuals misrepresent their skills to earn a
job Consequences
• Poor quality of workmanship• Safety hazards• Lawsuits• Delay in schedule• Budget Overruns
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Technical Incompetence or Misrepresentation of Competence
Solutions Ask subcontractors about their employee
screening process Maintain a proper quality control program to
monitor employee workmanship Training programs Trade Program Verification
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Issue Overview
Failure to Reconcile Employee or Subcontractor Concerns Frequency Rank- 7th
Seriousness Rank- 11th
Key Form(s) of Violations• Change orders• HR Issues
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Failure to Reconcile Employee or Subcontractor Concerns
Change OrdersContractors cut change order pricesSubcontractors inflate pricesOwners disputes change ordersConsequences
• Lawsuits• Increase of project costs• Strain of project relationships• Strikes
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Failure to Reconcile Employee or Subcontractor Concerns
HR Issues Not addressing employee claims of
harassment, discrimination, etc. Unequal rights among employees Consequences
• Poor employee performance• Employee dissatisfied• Loss of Employee• Lawsuit• Bad company reputation
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Failure to Reconcile Employee or Subcontractor Concerns
Solutions Perform change orders according to the
book Do not inflate or deflate pricing just because
of reputation of claimer, look at each change order on an individual basis
Address all employees equally Develop a set course of action for all
employee claims
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Issue Overview
Conflict of Interest, Improper Political/Community InvolvementFrequency Rank- 9th
Seriousness Rank- 7th
Key Form(s) of Violations• Platform Abuse• Community/Project Location
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Conflict of Interest, Improper Political/Community Involvement
Platform Abuse Politicians/councilman use community
projects as examples of what they bring to the community
Misuse of community funds Project program elements are cut/added
based on politic in charge Consequences
• Community outrage• Project funding termination• Bad company reputation• Political turmoil
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Conflict of Interest, Improper Political/Community Involvement
Community/Project LocationExample: Strip Club in the middle of
small community-minded townProtestorsConsequences
• Community outrage• Bad company reputation• Project delayed from protestors• Safety Hazards
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Conflict of Interest, Improper Political/Community Involvement
Solutions Distance the project from political personnel
as much as possible If work is abundant, do not take the project Maintain site security and safety Identify your company as the builder of a
building
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Module 2 Quiz
The following five questions are used to review the previous quiz material.
You must answer all five questions correctly to advance to the third module.
GOOD LUCK!
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Question #1
Being the site supervisor, you are walking around your project site. You notice oil spilled into the soil from the mason’s mixing machine. The mason foreman says that grade level will be five feet higher and no one will ever see it. What should you do?
a) Make the foreman move the machine and cover the spill with soil
b) Just ignore it and stay on trackc) Throw oil dry to soak it upd) Make the subcontractor remove the contaminated
soil and replace it with new soil
Question #1
Being the site supervisor, you are walking around your project site. You notice oil spilled into the soil from the mason’s mixing machine. The mason foreman says that grade level will be five feet higher and no one will ever see it. What should you do?
a) Make the foreman move the machine and cover the spill with soilb) Just ignore it and stay on trackc) Throw oil dry to soak it upd) Make the subcontractor remove the contaminated soil and
replace it with new soil
CORRECT! Protecting the environment is an ethical issue people violate regularly. By maintaining the
environment and regulating the site, protection of the environment should be a guaranteed by product of the project.
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Question #1
Being the site supervisor, you are walking around your project site. You notice oil spilled into the soil from the mason’s mixing machine. The mason foreman says that grade level will be five feet higher and no one will ever see it. What should you do?
a) Make the foreman move the machine and cover the spill with soil
b) Just ignore it and stay on trackc) Throw oil dry to soak it upd) Make the subcontractor remove the contaminated
soil and replace it with new soil
NEXT
WRONG
Review: Failure to
Protect the Enviro
nment
Question #2
Being the field engineer on the new power plant outside of Pittsburgh, one of your responsibilities is to maintain site safety. You notice a strong odor coming from the chemical a subcontractor is using to seal the structure. Soon the entire site smells and you notice employees becoming ill. You should…
a) Ignore it, being outside the air will ventilate the siteb) Call OSHA and proper authorities and evacuate the
sitec) Rent gigantic fans to help ventilate the sited) Alert the surrounding communities of the poisonous
gas
Question #2
Being the field engineer on the new power plant outside of Pittsburgh, one of your responsibilities is to maintain site safety. You notice a strong odor coming from the chemical a subcontractor is using to seal the structure. Soon the entire site smells and you notice employees becoming ill. You should…
a) Ignore it, being outside the air will ventilate the siteb) Call OSHA and proper authorities and evacuate the sitec) Rent gigantic fans to help ventilate the sited) Alert the surrounding communities of the poisonous gas
CORRECT! Contacting the proper authorities and evacuating the site looks out for the safety of the
employees as well as lets the proper authorities alert the public if necessary, ensuring their safety and health
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Question #2
Being the field engineer on the new power plant outside of Pittsburgh, one of your responsibilities is to maintain site safety. You notice a strong odor coming from the chemical a subcontractor is using to seal the structure. Soon the entire site smells and you notice employees becoming ill. You should…
a) Ignore it, being outside the air will ventilate the siteb) Call OSHA and proper authorities and evacuate the
sitec) Rent gigantic fans to help ventilate the sited) Alert the surrounding communities of the poisonous
gas
WRONG
Review: Failure to
Protect Public Health
,
Safety, o
r Welfa
re
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Question #3
During site tours you notice that the quality of drywall finishing in a particular room is poor. You ask the foreman about who completed the work, and he said he had a crew doing each room. Upon talking to the crew, you realize that one member is specifically being singled out for the work. You should…
a) Contact the subcontractor to verify qualifications for employee
b) Ignore the room and hope it passes site inspectionsc) Rip down all the drywall and make the employee
redo the room in front of you d) None of these are correct
Question #3
During site tours you notice that the quality of drywall finishing in a particular room is poor. You ask the foreman about who completed the work, and he said he had a crew doing each room. Upon talking to the crew, you realize that one member is specifically being singled out for the work. You should…
a) Contact the subcontractor to verify qualifications for employeeb) Ignore the room and hope it passes site inspectionsc) Rip down all the drywall and make the employee redo the room
in front of you d) None of these are correct
CORRECT! Verifying the employees credentials is a perfectly acceptable answer to the ethical problem.
This will prove you are performing quality control properly and only letting competent personnel on site.
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Question #3
During site tours you notice that the quality of drywall finishing in a particular room is poor. You ask the foreman about who completed the work, and he said he had a crew doing each room. Upon talking to the crew, you realize that one member is specifically being singled out for the work. You should…
a) Contact the subcontractor to verify qualifications for employee
b) Ignore the room and hope it passes site inspectionsc) Rip down all the drywall and make the employee
redo the room in front of you d) None of these are correct
WRONG
Review: Technical In
competence or
M
isrepresentation of C
ompetence
NEXT
Question #4
You are processing change orders, you notice that the subcontractor has inflated the cost of his service by what you determine to be 20%. You are passing this along to the owner, so do you…
a) Pass the change order as is directly to the ownerb) Write the change order for the proper value of the
work and materialsc) Reduce the markup to a more reasonable inflation
rated) Do not process the change order and make the
subcontractor pay the cost out of pocket as punishment for acting unethically
Question #4
You are processing change orders, you notice that the subcontractor has inflated the cost of his service by what you determine to be 20%. You are passing this along to the owner, so do you…
a) Pass the change order as is directly to the ownerb) Write the change order for the proper value of the work and
materialsc) Reduce the markup to a more reasonable inflation rated) Do not process the change order and make the subcontractor
pay the cost out of pocket as punishment for acting unethically
CORRECT! By acting ethically and sticking with the facts of the change order, no party is being cheated out of
money and no legal action can be taken against your company.
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Question #4
You are processing change orders, you notice that the subcontractor has inflated the cost of his service by what you determine to be 20%. You are passing this along to the owner, so do you…
a) Pass the change order as is directly to the ownerb) Write the change order for the proper value of the
work and materialsc) Reduce the markup to a more reasonable inflation
rated) Do not process the change order and make the
subcontractor pay the cost out of pocket as punishment for acting unethically
WRONG
Review: Failure to
Reconcile Employee or
Subcontra
ctor Concerns
NEXT
Question #5
Your company has a bid request for a project that would involve a building that would house adult entertainment in a rural based community. The community is openly protesting. As president of your company you should…
a) Submit a bid for the project and take no other actionb) Meet with the public and political officials to see if a
compromise can be reached first before biddingc) Do not consider the projectd) Block off a larger area of the site and do not put
company signs on the project so no one will know who is responsible for building the project
Question #5
Your company has a bid request for a project that would involve a building that would house adult entertainment in a rural based community. The community is openly protesting. As president of your company you should…
a) Submit a bid for the project and take no other actionb) Meet with the public and political officials to see if a compromise
can be reached first before biddingc) Do not consider the projectd) Block off a larger area of the site and do not put company signs
on the project so no one will know who is responsible for building the project
CORRECT! Building the project is not unethical. But to make sure there are no political problems and
community disruptions, meetings should be held prior to decide if the building’s program is unethical
NEXT
Question #5
Your company has a bid request for a project that would involve a building that would house adult entertainment in a rural based community. The community is openly protesting. As president of your company you should…
a) Submit a bid for the project and take no other actionb) Meet with the public and political officials to see if a
compromise can be reached first before biddingc) Do not consider the projectd) Block off a larger area of the site and do not put
company signs on the project so no one will know who is responsible for building the project
WRONG
Review: Conflic
ts of Interest, I
mproper
Politic
al/Community In
volvement
NEXT
Quiz Results
All Questions Answered Correctly???
Yes
No
Module 3
…and Dignity
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Issue Overview
Abuse of Company Resources Frequency Rank- 5th
Seriousness Rank- 14th
Key Form(s) of Violations• Overusing of Expense Account
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Abuse of Company Resources
Overusing of expense accountPurchasing/Taking office supplies
home from projectPurchasing personal meals/beveragesUsing vehicle for personal use/gas
cardPurchasing tools for personal use
from project
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Abuse of Company Resources
SolutionsDevelop miscellaneous project
expense reportImplement accounting practices for
personal equipmentBe Honest!
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Issue Overview
Alcohol and Drug Abuse Frequency Rank- 6th
Seriousness Rank- 1st
Key Form(s) of Violations• Use prior/during work hours
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Alcohol and Drug Abuse
Use prior/during work hoursRecognizing the problem
• Drinking on the job• Using drugs on site• Smelling of alcohol or different drugs• Loss of motor skills• Poor work habits• Constant breaks
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Alcohol and Drug Abuse
ConsequencesTerminationHealth risk to yourself and employeesDeathPossible jail timeFinesPoor work quality
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Alcohol and Drug Abuse
SolutionsDevelop a drug testing program for
your employeesMonitor site early and oftenDisplay anti-drug materialDON’T DO DRUGS
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Issue Overview
Abuse of Client Resources Frequency Rank- 8th
Seriousness Rank- 5th
Key Form(s) of Violations• Excessive Change Orders
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Abuse of Client Resources
Excessive Change Orders Asking for money and time to gain profit and
schedule cushion• Done to earn extra money for contractors• Extends deadline on project• Higher markups on change orders for bad
relationships between contractors/owners/architects
Consequences• Bad reputation• Lawsuits• Project deadlock
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Abuse of Client Resources
Solutions Act honestly Fill out the correct values for your change
orders Establish a good working relationship with
the owner Create a log of all materials and labor times
accurately Treat each change order as if you were the
owner
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Issue Overview
Discrimination, Favoritism, or Harassment Frequency Rank- 12th
Seriousness Rank- 13th
Key Form(s) of Violations• Racial/Gender Discrimination• Sexual Harassment
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Discrimination, Favoritism, or Harassment Racial/Gender Discrimination
Forms of:• Ethnic slurs• Stereotypes• Prejudices
HR Nightmare Consequences
• Lawsuits• Bad Reputation• Hostile Workforce
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Discrimination, Favoritism, or Harassment Sexual Harassment
Happens in most industry Forms of:
• Inappropriate contact• Inappropriate comments• Unsuitable emails, etc.
HR Nightmare Consequences
• Lawsuit• Bad Reputation• Loss of Employees
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Discrimination, Favoritism, or Harassment Solutions
Treat everyone equallyTreat everyone like you would treat
your motherDevelop an HR program that will train
against these unethical actsMaintain a whistleblower program
within HR in the even that a transgression occurs
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Issue Overview
Improper Relations with Clients, Contractors, etc. Frequency Rank- 15th
Seriousness Rank- 6th
Key Form(s) of Violations• Nepotism• Accepting Bribes/Gifts
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Improper Relations with Clients, Contractors, etc. Nepotism
-patronage bestowed or favoritism shown on the basis of family or friend relationship, as in business and politics
Results in contractors awarding jobs to family and friends instead of the deserving bidder
Consequences• Strained relationship with potential
clients/contractors• Bad reputation• Decreased productivity
NEXT
Improper Relations with Clients, Contractors, etc. Accepting Bribes/Gifts
Monetary donations to receive projects
Gifts for holidays from local subcontractors
Consequences• Jail time• Decline of available work force• Guilty conscience
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Improper Relations with Clients, Contractors, etc. Solutions
Do not accept gifts from clients, contractors, etc.
Hire based on qualifications and competence, not personal relationships
If hiring for a project or job and a family or friend applies, ask an uninterested third party to assist in the hiring process
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Module 3 Quiz
The following five questions are used to review the previous quiz material.
You must answer all five questions correctly to advance to the Final examination portion of the program
GOOD LUCK!
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Question #1
It’s late in the projects schedule and ultimately the last day for six subcontractors on site. As a gesture of good faith, you ask the respective foreman out for a drink after the work day. The drink turns into a bottle and you have to pay for the bill. You…
a) Pull out your own personal credit card and pick up the drinks
b) Charge the drinks to the credit card for the project c) Use the company credit cardd) Jump into your truck and drive away
Question #1
It’s late in the projects schedule and ultimately the last day for six subcontractors on site. As a gesture of good faith, you ask the respective foreman out for a drink after the work day. The drink turns into a bottle and you have to pay for the bill. You…
a) Pull out your own personal credit card and pick up the drinksb) Charge the drinks to the credit card for the project c) Use the company credit cardd) Jump into your truck and drive away
CORRECT! Check your companies policy on project costs first, but most likely they do not
cover alcohol consumption for foreman. A good relationship was developed with
the subs. but it was not a necessary project cost
NEXT
Question #1
It’s late in the projects schedule and ultimately the last day for six subcontractors on site. As a gesture of good faith, you ask the respective foreman out for a drink after the work day. The drink turns into a bottle and you have to pay for the bill. You…
a) Pull out your own personal credit card and pick up the drinks
b) Charge the drinks to the credit card for the project c) Use the company credit cardd) Jump into your truck and drive away
NEXT
WRONG
Review: Abuse of C
ompany Resources
Question #2
On your daily site tour, you walk by a steamfitter and you notice he smells of alcohol. The appropriate thing for you to do as superintendent is…
a) Get the worker a cup of coffee and advise him to sober up
b) Call the police and have him arrestedc) Tell the worker to move to a quieter area and sleep it
offd) Remove the worker from the jobsite immediately,
contact his foreman, and have a drug/alcohol test conducted
Question #2
On your daily site tour, you walk by a steamfitter and you notice he smells of alcohol. The appropriate thing for you to do as superintendent is…
a) Get the worker a cup of coffee and advise him to sober upb) Call the police and have him arrestedc) Tell the worker to move to a quieter area and sleep it offd) Remove the worker from the jobsite immediately, contact his
foreman, and have a drug/alcohol test conducted
CORRECT! Insuring the safety of the worker and surrounding workers is the most
important t ask. After this is accomplished, explain to the worker how unethical and irresponsible their behavior is, and follow the appropriate steps outlined by the company
NEXT
Question #2
On your daily site tour, you walk by a steamfitter and you notice he smells of alcohol. The appropriate thing for you to do as superintendent is…
a) Get the worker a cup of coffee and advise him to sober up
b) Call the police and have him arrestedc) Tell the worker to move to a quieter area and sleep it
offd) Remove the worker from the jobsite immediately,
contact his foreman, and have a drug/alcohol test conducted
WRONG
Review: Alcohol a
nd Drug Abuse
NEXT
Question #3
The construction documents for the project you are currently working on are terrible, go figure. Your behind in schedule and budget and need to make up time and money. The project is only $5 million but your subcontractors have submitted 36 change orders totaling roughly $800,000, which you know is overpriced. As PM you should…
a) Sign every change order without review to gain budget and schedule cushion and pass them to the owner
b) Hold meetings with subcontractors to review each change order and develop the real value of each order
c) Call the architect and tell him his documents stink and that he must pay for everything
d) Call an administrative assistant and let them handle the paperwork
Question #3
The construction documents for the project you are currently working on are terrible, go figure. Your behind in schedule and budget and need to make up time and money. The project is only $5 million but your subcontractors have submitted 36 change orders totaling roughly $800,000, which you know is overpriced. As PM you should…
a) Sign every change order without review to gain budget and schedule cushion and pass them to the owner
b) Hold meetings with subcontractors to review each change order and develop the real value of each order
c) Call the architect and tell him his documents stink and that he must pay for everything
d) Call an administrative assistant and let them handle the paperwork
CORRECT! Handling the paperwork in the appropriate manner is the ethical thing to do. This helps avoid legal
battles and is the best thing to do to avoid liability
NEXT
Question #3
The construction documents for the project you are currently working on are terrible, go figure. Your behind in schedule and budget and need to make up time and money. The project is only $5 million but your subcontractors have submitted 36 change orders totaling roughly $800,000, which you know is overpriced. As PM you should…
a) Sign every change order without review to gain budget and schedule cushion and pass them to the owner
b) Hold meetings with subcontractors to review each change order and develop the real value of each order
c) Call the architect and tell him his documents stink and that he must pay for everything
d) Call an administrative assistant and let them handle the paperwork
WRONG
Review: Abuse of C
lient Resources
NEXT
Question #4
Hiring is your primary job for your new company. You need to hire a new field engineer within the next week. You look at the demographics of the company and realize that only 3% of the company are African Americans. When you hire someone you…
a) Hire an African American to increase the diversity of the company
b) Hire a Caucasian to maintain the current numbersc) Do not hire anyoned) Hire the most qualified and suitable person for the
job
Question #4
Hiring is your primary job for your new company. You need to hire a new field engineer within the next week. You look at the demographics of the company and realize that only 3% of the company are African Americans. When you hire someone you…
a) Hire an African American to increase the diversity of the companyb) Hire a Caucasian to maintain the current numbersc) Do not hire anyoned) Hire the most qualified and suitable person for the job
CORRECT! Hiring based on ethnicity, race, religion, etc. is not morally right. The qualifications and
competence of the new employee and his/her ability to complete the job are the most important aspects to focus on
NEXT
Question #4
Hiring is your primary job for your new company. You need to hire a new field engineer within the next week. You look at the demographics of the company and realize that only 3% of the company are African Americans. When you hire someone you…
a) Hire an African American to increase the diversity of the company
b) Hire a Caucasian to maintain the current numbersc) Do not hire anyoned) Hire the most qualified and suitable person for the job
WRONG
Review: Discrim
ination, F
avoritism, o
r
Harassment
NEXT
Question #5
Having a successful career, you have retired and sworn off construction forever. With the money from the gigantic retirement fund you have, you decide to build a house. Four contractors submit a bid, one who is a cousin of your spouse. You should hire..
a) Your spouses cousin because they are relatedb) Hire the contractor that offers the best value to youc) Search for more bidsd) Divorce your spouse and go with who you want
Question #5
Having a successful career, you have retired and sworn off construction forever. With the money from the gigantic retirement fund you have, you decide to build a house. Four contractors submit a bid, one who is a cousin of your spouse. You should hire..
a) Your spouses cousin because they are relatedb) Hire the contractor that offers the best value to youc) Search for more bidsd) Divorce your spouse and go with who you want
CORRECT! Hiring just because of a relationship is a form of nepotism which un-evens the playing field.
For the most bang for your buck you should hire the contractor that will give you the best value for what you want. This is ethical and no one is cheated.
NEXT
Question #5
Having a successful career, you have retired and sworn off construction forever. With the money from the gigantic retirement fund you have, you decide to build a house. Four contractors submit a bid, one who is a cousin of your spouse. You should hire..
a) Your spouses cousin because they are relatedb) Hire the contractor that offers the best value to youc) Search for more bidsd) Divorce your spouse and go with who you wantWRONG
Review: Improper R
elations with
Clients,
Contra
ctors, etc.
NEXT
Quiz Results
All Questions Answered Correctly???
Yes
No
Module Completion
Congratulations on the completion of the learning modules and quizzes!
Now, let’s see how much you remember and take the dreaded…..
FINAL EXAMINATION
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Final Exam
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You must answer 13 out of 15 to successfully complete the
course
Question #1
A form of Bid Shopping is which of the following?
a) Low Bid Disclosure
b) Idea Shopping
c) Change Orders
d) Both A & B
Question #1
A form of Bid Shopping is which of the following?
a) Low Bid Disclosureb) Idea Shoppingc) Change Ordersd) Both A & B
CORRECT!
NEXT
Question #1
A form of Bid Shopping is which of the following?
a) Low Bid Disclosure
b) Idea Shopping
c) Change Orders
d) Both A & B
WRONG
Review: Improper o
r Questio
nable Bidding
NEXT
Question #2
Which of the following is a consequence of misrepresenting the value of completed work?
a) Straining of Contractor/Subcontractor Relationships
b) Subcontractors can leave job with money for work that is not completed
c) Project cash flow from owner can be disrupted
d) All of the above
Question #2
Which of the following is a consequence of misrepresenting the value of completed work?
a) Straining of Contractor/Subcontractor Relationshipsb) Subcontractors can leave job with money for work
that is not completedc) Project cash flow from owner can be disruptedd) All of the above
CORRECT!
NEXT
Question #2
Which of the following is a consequence of misrepresenting the value of completed work?
a) Straining of Contractor/Subcontractor Relationships
b) Subcontractors can leave job with money for work that is not completed
c) Project cash flow from owner can be disrupted
d) All of the above
WRONG
Review: Misrepresentatio
n of Completed
W
ork or Value of W
ork
NEXT
Question #3
The best way to curb poor quality control and quality of work is?
a) Constantly walk around the site so workers feel your presence and perform
b) Develop a series of quality control documents for frequently overlooked construction processes
c) Ask subcontractors about their employee screening process
d) Delegate quality control to foreman
Question #3
The best way to curb poor quality control and quality of work is?
a) Constantly walk around the site so workers feel your presence and perform
b) Develop a series of quality control documents for frequently overlooked construction processes
c) Ask subcontractors about their employee screening process
d) Delegate quality control to foreman
CORRECT!
NEXT
Question #3
The best way to curb poor quality control and quality of work is?
a) Constantly walk around the site so workers feel your presence and perform
b) Develop a series of quality control documents for frequently overlooked construction processes
c) Ask subcontractors about their employee screening process
d) Delegate quality control to foreman
NEXT
WRONG
Review: Poor Q
uality Contro
l or Q
uality of
W
ork
Question #4
A key violation of mishandling sensitive information is which of the following?
a) Holding a Press Conference for the Ceremonial Ground Breaking
b) Displaying Prevailing Wage Rates
c) Disclosing Owners Proprietary Information
d) None of the Above
Question #4
A key violation of mishandling sensitive information is which of the following?
a) Holding a Press Conference for the Ceremonial Ground Breaking
b) Displaying Prevailing Wage Ratesc) Disclosing Owners Proprietary Informationd) None of the Above
CORRECT!
NEXT
Question #4
A key violation of mishandling sensitive information is which of the following?
a) Holding a Press Conference for the Ceremonial Ground Breaking
b) Displaying Prevailing Wage Rates
c) Disclosing Owners Proprietary Information
d) None of the Above
NEXT
WRONG
Review: Mishandling Sensitiv
e Inform
ation
Question #5
Which of the following is a reason that companies misrepresent their financial status?
a) To boost their ego
b) So they can buy a yacht
c) So they can be ranked higher in ENR
d) Earn bonding capacity
Question #5
Which of the following is a reason that companies misrepresent their financial status?
a) To boost their egob) So they can buy a yachtc) So they can be ranked higher in ENRd) Earn bonding capacity
CORRECT!
NEXT
Question #5
Which of the following is a reason that companies misrepresent their financial status?
a) To boost their ego
b) So they can buy a yacht
c) So they can be ranked higher in ENR
d) Earn bonding capacity
NEXT
WRONG
Review: Misrepresentatio
n of Financial
Status or R
ecords
Question #6
Which of the following is a problem associated with the ethical transgression “Failure to Protect the Environment?”
a) Waste enters soil, air, and water polluting and damaging the environment
b) Waste is not properly managed and builds up
c) Recycling is not conducted wasting valuable materials
d) All of the Above
Question #6
Which of the following is a problem associated with the ethical transgression “Failure to Protect the Environment?”
a) Waste enters soil, air, and water polluting and damaging the environment
b) Waste is not properly managed and builds upc) Recycling is not conducted wasting valuable
materialsd) All of the Above
CORRECT!
NEXT
Question #6
Which of the following is a problem associated with the ethical transgression “Failure to Protect the Environment?”
a) Waste enters soil, air, and water polluting and damaging the environment
b) Waste is not properly managed and builds up
c) Recycling is not conducted wasting valuable materials
d) All of the Above
WRONG
NEXT
Review: Failure to
Protect the Enviro
nment
Question #7
The best way to protect the Public’s health, safety, and welfare is to
a) Rope off your job site with barbed wireb) Have site safety inspections conducted
regularlyc) Higher armed security guardsd) Do not build the project during the day
Question #7
The best way to protect the Public’s health, safety, and welfare is to
a) Rope off your job site with barbed wireb) Have site safety inspections conducted
regularlyc) Higher armed security guardsd) Do not build the project during the day
CORRECT!
NEXT
Question #7
The best way to protect the Public’s health, safety, and welfare is to
a) Rope off your job site with barbed wireb) Have site safety inspections conducted
regularlyc) Higher armed security guardsd) Do not build the project during the dayWRONG
Review: Failure to
Protect Public Health
,
Safety, o
r Welfa
re
NEXT
Question #8
To avoid technical incompetence or the misrepresentation of competence, you should?
a) Ask subcontractors about their employee screening process
b) Maintain a proper quality control program to monitor employee workmanship
c) Training programsd) All of the above
Question #8
To avoid technical incompetence or the misrepresentation of competence, you should?
a) Ask subcontractors about their employee screening process
b) Maintain a proper quality control program to monitor employee workmanship
c) Training programsd) All of the above
CORRECT!
NEXT
Question #8
To avoid technical incompetence or the misrepresentation of competence, you should?
a) Ask subcontractors about their employee screening process
b) Maintain a proper quality control program to monitor employee workmanship
c) Training programsd) All of the aboveWRONG
Review: Technical In
competence or
M
isrepresentation of C
ompetence
NEXT
Question #9
A common form of not reconciling subcontractor or employee concerns is which of the following?
a) HR issuesb) Not providing an amicable work environmentc) Change ordersd) Both A & Ce) All of the Above
Question #9
A common form of not reconciling subcontractor or employee concerns is which of the following?
a) HR issuesb) Not providing an amicable work environmentc) Change ordersd) Both A & Ce) All of the Above
CORRECT!
NEXT
Question #9
A common form of not reconciling subcontractor or employee concerns is which of the following?
a) HR issuesb) Not providing an amicable work environmentc) Change ordersd) Both A & Ce) All of the AboveWRONG
Review: Failure to
Reconcile Employee or
Subcontra
ctor Concerns
NEXT
Question #10
A consequence of having a conflict of interest or improper political and community involvement when developing a project can be
a) Community outrageb) Project funding terminationc) Bad company reputationd) Political turmoile) None of the abovef) All of the above
Question #10
A consequence of having a conflict of interest or improper political and community involvement when developing a project can be
a) Community outrageb) Project funding terminationc) Bad company reputationd) Political turmoile) None of the abovef) All of the above
CORRECT!
NEXT
Question #10
A consequence of having a conflict of interest or improper political and community involvement when developing a project can be
a) Community outrageb) Project funding terminationc) Bad company reputationd) Political turmoile) None of the abovef) All of the above
WRONG
Review: Conflic
ts of Interest, I
mproper
Politic
al/Community In
volvement
NEXT
Question #11
The key form of the ethical transgression of Abuse of Company Resources is?
a) Overusing of expense account
b) Stealing office supplies
c) Only using company vehicle for work activity
d) Using company gas card for trips to the site
Question #11
The key form of the ethical transgression of Abuse of Company Resources is?
a) Overusing of expense account
b) Stealing office supplies
c) Only using company vehicle for work activity
d) Using company gas card for trips to the site
CORRECT!
NEXT
Question #11
The key form of the ethical transgression of Abuse of Company Resources is?
a) Overusing of expense account
b) Stealing office supplies
c) Only using company vehicle for work activity
d) Using company gas card for trips to the site
NEXT
WRONG
Review: Abuse of C
ompany Resources
Question #12
Consequences of Drug and Alcohol abuse in the construction industry are…
a) Possible jail timeb) Finesc) Poor work qualityd) All of the above
Question #12
Consequences of Drug and Alcohol abuse in the construction industry are…
a) Possible jail timeb) Finesc) Poor work qualityd) All of the above
CORRECT!
NEXT
Question #12
Consequences of Drug and Alcohol abuse in the construction industry are…
a) Possible jail timeb) Finesc) Poor work qualityd) All of the above
WRONG
Review: Alcohol a
nd Drug Abuse
NEXT
Question #13
Which of the following are possible solutions to the problem of abusing client resources?
a) Act honestly
b) Fill out the correct values for your change orders
c) Establish a good working relationship with the owner
d) All of the Above
Question #13
Which of the following are possible solutions to the problem of abusing client resources?
a) Act honestlyb) Fill out the correct values for your change
ordersc) Establish a good working relationship with
the ownerd) All of the Above
CORRECT!
NEXT
Question #13
Which of the following are possible solutions to the problem of abusing client resources?
a) Act honestly
b) Fill out the correct values for your change orders
c) Establish a good working relationship with the owner
d) All of the Above
WRONG
Review: Abuse of C
lient Resources
NEXT
Question #14
Which of the following is not a form of discrimination, favoritism, or harassment?
a) Hiring an African American because he was the most qualified for the position
b) Do not hire a female because you think the construction industry is all male
c) Sending an email with a cartoon from playboy in itd) Hire your brother for a job because he is family
Question #14
Which of the following is not a form of discrimination, favoritism, or harassment?
a) Hiring an African American because he was the most qualified for the position
b) Do not hire a female because you think the construction industry is all male
c) Sending an email with a cartoon from playboy in itd) Hire your brother for a job because he is family
CORRECT!
NEXT
Question #14
Which of the following is not a form of discrimination, favoritism, or harassment?
a) Hiring an African American because he was the most qualified for the position
b) Do not hire a female because you think the construction industry is all male
c) Sending an email with a cartoon from playboy in it
d) Hire your brother for a job because he is family
WRONG
Review: Discrim
ination, F
avoritism, o
r
Harassment
NEXT
Question #15
A key form of violations for the ethical transgression of Improper Relations with Clients, Contractors, etc. is?
a) Accepting Bribes/Giftsb) Nepotismc) Buying tools for yourselfd) Both A & Be) All of the Above
Question #15
A key form of violations for the ethical transgression of Improper Relations with Clients, Contractors, etc. is?
a) Accepting Bribes/Giftsb) Nepotismc) Buying tools for yourselfd) Both A & Be) All of the Above
CORRECT!
NEXT
Question #15
A key form of violations for the ethical transgression of Improper Relations with Clients, Contractors, etc. is?
a) Accepting Bribes/Gifts
b) Nepotism
c) Buying tools for yourself
d) Both A & B
e) All of the Above
WRONG
Review: Improper R
elations with
Clients,
Contra
ctors, etc.
NEXT
How did you do?
13 or more Correct?
Yes
No
CONGRATULATIONS!!!!
You have successfully completed the Construction Ethics Program
The Training Program to Identify and Deter Unethical Practices