Jenny, a building surveyor, was employed as the project manager of a developer which had a portfolio of commercial buildings and shopping arcades. Jenny was responsible for awarding maintenance contracts and issuing work orders to contractors. Jenny's brother-in-law Michael recently became one of the contractors of the developer. Thinking that Michael was not her immediate family members, Jenny believed that it was not necessary to declare this relationship to her company.
As Jenny is responsible for awarding maintenance contracts, a potential conflict of interest situation arises when her brother-in-law Michael becomes a maintenance contractor of her company. Even though they are yet to have any direct contact at work, Jenny should not overlook the possibility that she may handle procurement matters involving Michael in future.
Although Michael is not her immediate family member, their closely connected relationship is normally considered a situation that is required to be declared. Jenny should observe the company's code of conduct and the Rules of Conduct of the Hong Kong Institute of Surveyors (HKIS) (1.3.1) in handling conflict of interest. (More information about conflict of interest can be found in the "Topic of Interest" section from the article for architects.)
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Recently, the ceiling of a shopping arcade was damaged by the severe typhoon and heavy rain. Urgent repair work had to be carried out before the large-scale summer event held soon in the shopping arcade. As other maintenance contractors were fully engaged as a result of the typhoon, Jenny asked for Michael's assistance.
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Michael assured Jenny that he could complete the job on time, but he had to start working immediately. Michael further suggested that he could provide quotations of other contractors to speed up the procurement process. Jenny agreed with Michael's proposal. The contract was eventually awarded to Michael's company.
Although Jenny has legitimate reasons to expedite the procurement process, she must not rely on Michael to provide other quotations for her to meet the procedural requirements as it defeats the fairness of the quotation exercise. Furthermore, in order to secure the contract, it is very likely that Michael will fabricate quotations with bidding prices higher than his company's quotation price. By submitting bogus quotations to her company with intent to deceive her employer, Jenny may commit Section 9(3) of the Prevention of Bribery Ordinance (POBO) or conspiracy to defraud.
In view of the urgent situation, Jenny may consider seeking her company's consent for engaging Michael's company through a single quotation exercise. During the process, the justifications for engaging Michael's company, such as urgency of the job, availability of other contractors, the fact that the price quoted by Michael is fair and reasonable, etc, should be well documented.
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Barry, Jenny's husband, was a quantity surveyor of a main contractor. He was well acquainted with the subcontractors after years of working together. They often had lavish meals after work and spend holidays overseas together, sometimes at the subcontractors' cost.
It is understandable for Barry to maintain a good working relationship with the subcontractors involved in his official duty. However, as a quantity surveyor, Barry plays a key role in areas such as evaluating the subcontractors' works and payment, as well as negotiating with the subcontractors for account settlement. He should be vigilant to the possible conflict of interest situation with the subcontractors, especially when it involves over-socialisation with or even acceptance of advantages from work contacts, because it may cause others to cast doubts on his integrity and objectivity.
Barry should observe his company's code of conduct and the Rules of Conduct of HKIS (1.3.1 and 1.3.4) on conflict of interest as well as acceptance of advantages and entertainment. He may need to disclose his conflict of interest to his company and client with the subcontractors, and should not receive advantages from any third party who is connected with his work.
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Recently, a subcontractor told Barry privately that his company had to carry out substantial rectification works in another project and therefore encountered a cash flow problem. The subcontractor begged for Barry's assistance to recommend payment for the materials not yet delivered to the site. Otherwise, the subcontractor would go bankrupt.
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Barry worried that the progress of his renovation project would be affected if the subcontractor was closed down. In addition, according to his analysis based on their long-term working relationship, in fact friendship, and past performance, Barry believed that the subcontractor would deliver the materials very soon. Barry therefore agreed to assist. To thank Barry for his assistance, the subcontractor offered to renovate Barry's newly purchased flat at a very low cost.
One month later, the subcontractor suddenly disappeared, leaving the works uncompleted and a group of enraged workers urging the main contractor to settle their outstanding wages.
In spite of their long-term working relationship and trust, Barry should not compromise his professional integrity for the sake of work progress or friendship with the subcontractor. He should act according to the Rules of Conduct of HKIS (1.3) which stipulates that a member of the Institute shall discharge his duties with integrity and in accordance with the highest standard of business ethics.
If Barry accepts the renovation service at a discounted price as a reward to him for recommending the unjustified payment, he and the subcontractor may both breach Section 9 of the POBO. As a member of HKIS, Barry will also violate the Rules of Conduct of HKIS (1.3.4) on acceptance of advantages from a third party who is connected with his professional services provided to clients.
By submitting a document with false information with intent to deceive his employer into making payment, Barry may also commit Section 9(3) of the POBO or conspiracy to defraud.
Barry should exercise his professional judgement when facing ethical dilemmas at work. (More information about ethical decision making can be found in the "Topic of Interest" section.)