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Unreasonable exercise of discretion in project oversight
A senior engineer of an engineering consultant firm recently undertook to oversee a large private housing project. Owing to frequent contact, he got along famously with a contractor who was around his age and shared his interest in golfing.
On one occasion, the contractor treated the senior engineer to a lavish meal in the Country Club and then revealed his hidden agenda. He said that the funds for the housing project were quite short and he wished to have more allowances for contingencies. As the senior engineer could approve claims for additional costs, the contractor tried persuading him to exercise his discretion and add $5,000,000 to the project. As a token of thanks, the contractor promised to treat the engineer to a luxurious overseas golf trip.
Case Analysis
The exercise of discretion in approving claims should be based on an objective assessment of the project's financial requirements. To comply with the Rules of Conduct of the Hong Kong Institution of Engineers, the senior engineer should avoid his professional judgement being clouded by the offer of advantages.
The senior engineer was the agent of the consultant firm (the principal) as he oversaw the housing project. Without the principal's consent, he should not receive an advantage - free golf trip – when dealing with the principal's affairs. The offering of the free golf trip by the contractor as an inducement for senior engineer to misuse his authority in approving extra funds for to the project would contravene Section 9 the Prevention of Bribery Ordinance (POBO). The senior engineer who accepted the offer would also contravene the law.