Most Projects Are Awarded On Competitive Bidding Basis

Most projects are awarded on competitive bidding basis.
Supposing you had been the designated

engineer of one of the bidders that was not awarded with the letter of intent by the Client. You are then
approached by the ‘winner’ to join the Consultant Team. Should you accept the second appointment? If
yes, describe the situations, which might be seen as conflict of interests. If no, describe the reasons and/
or clear cut situations why you should decline the second appointment.
(The following write-up was prepared (written) by Mr. BAY prior to his sitting for PI on Feb 2014. It is
shared here for reference of other candidates.)
Introduction
We, as engineers, do not injure directly or indirectly the prospect of another engineer. In the same time,
we shall be faithful and honest with our client and employer. In discharging our duty and carrying our
works, we shall bear in mind that fair and honest dealing with all parties is essential principle. If there is
conflict of interest of oneself with others, we shall act with integrity and fair toward others.
For the scenario which I was approached by the “winner” to join his consultant team, I presume the
invitation to bid and the project are of design and build contract. I was the engineer of another
contractor who has not successful bidding the contract. Upon announcement of the “winner”, the
“winner” offers the appointment as their engineer to us.
In my view of points, I may accept the invitation because of the following reasons and with the following
conditions.
Completion of duty and responsibility to current employer
For design and build contract, which both contractor and consultant are working together to bid the
project, contractor is the leader and appoint his consultant. The letter of appointment is often issued
after successful bidding of the project. For ethical practise in the construction industry, the original
engineer working together with contractor shall be appointed. In other words, no letter of appointment
is issued or no official appointment of engineer will be carried out if the bidding is not successful.
During the bidding process, engineer shall be faithful and honest to his employer. He applies his best
knowledge, skills and efforts in assisting his employer to bid the contract. Upon successful bidding and
with the official appointment, he works together with his employer to ensure successful
implementation.
If fail in the bidding stage, engineer’s duty and responsibility to original employer has completed. Hence,
I may consider the invitation of the “winner” subject to condition in the following paragraphs.
No improper termination of consultant of “winner”
For construction industry, it is only considered ethical and appropriate to appoint consultant who have
assisted the contractor during the bidding works once successful in the bidding process. However, there
is always some bad “apples”. Errant people may like make use of another’s efforts.
Therefore, I shall communicate and check the reasons of termination of the consultant of the “winner”. I
shall consider accepting new appointment if there is no errant happening in the termination of services
of another engineer. If the works have started, I shall only take over if there is written consent by the
engineer and formal notification by “winner” that the services of other engineer have been terminated
and no arrear is due.
In other words, I shall only accept the appointment of “winner” after receipt of release letter of the
engineer.
No fee reduction or discount
In order to prevent unethical practises by errant players in the industry, there shall not be fee reduction
or similar like discount, for acceptance of appointment as new engineer to the “winner”. Engineering
consultancy services (ECP) are professional services to design and advice the client for reliable, valued
and front end engineering works. It is unavoidable for clients to bargain for cheaper price but engineers
shall not compete with one another by slashing their fee. The act will downgrade the technical
competency of engineers in the long term and make the profession an unattractive one.
In my view of points, it is good if the scale of fee recommended by BEM to be adhered to.
No disclosure of business information and copyright with current employer
All works, done with current employer, could be considered property and business information of
current employer. Though we fail to bid, we shall not or simply disclose the information to the “winner”.
This is because current employer could still compete and bid for other project with current information,
which are works of both current employer and us. Furthermore, I will possibly his engineer too. If I
disclose the information to the “winner”, it is conflict of interest.
Rights to review, redesign, use and not to apply the design of original engineer of the “winner”
Engineer bears his responsibility with him to grave. Though the design of other engineer is well prepared
and done, the engineer who take over the jobs shall monitor and ensure successful implementation and
construction. He therefore need to review, check and possible redesign if not all but still there could be
substantial part needed to be checked.
By accepting the invitation or appointment of the “winner”, it is merely change of responsible engineers
to monitor, supervise and handle the project. The new engineer shall still discharge his duty and
responsibility to “winner”.
Hence, engineers shall not accept wrongful offer by “winner” with the all kind of reasons to substitute
engineer and try to appoint a cheaper one.
Conclusion
As an ethical and responsible engineer, we shall take care the interest of our employer and ensure duty
and professional services rendered to him are completed. We shall avoid conflict of interests by not
assisting two clients who are opposite competing sides at the same time. If it is unavoidable, we shall
inform both of them and let them to make decision or we choose one.
In the same time, we do not attempt to take over the business prospect of another engineer unless the
engineer consents and there is no unethical and errant practise in replacing the original engineer.

Most Projects Are Awarded On Competitive Bidding Basis

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Most Projects Are Awarded On Competitive Bidding Basis

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Most projects are awarded on competitive bidding basis.

Supposing you had been the designated

Completion of duty and responsibility to current employer

No improper termination of consultant of “winner”

No fee reduction or discount

No disclosure of business information and copyright with current employer

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