Clarity on Corruption How and Why Does Corruption Occur in Our Industry? What Can We Do to Prevent It?
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Construction Journal Clarity on corruption How and why does corruption occur in our industry? What can we do to prevent it? PG. 10 What would you do? Fitter infrastructure Good conduct November/December 2018 Responses to ethical How can the infrastructure Guiding APC candidates on rics.org/journals dilemmas in construction industry transform itself? the ethics competency PG. 14 PG. 20 PG. 26 RICS CONSTRUCTION ADVERTISING JOURNAL GET COMPLIANT OurCOMPLIANT 240+ full contracting members are audited to Ourexacting 240+ standards full contracting and adhere members to strict are membershipaudited to exacting requirements standards and industryand adhere guidelines. to strict membership requirements and industry guidelines. NEW! SSIP accredited membership NEW! applicationSSIP accredited and audit membership process. application and audit process. NASC: Regulated. Qualified. Expert. SSIP ACCREDITEDNASC: Regulated.Professional. Qualified. Expert. Safe. Professional. Safe. SSIPThe NASC membership ACCREDITED audit and application www.nasc.org.uk Theprocess NASC is membership now accredited audit to SSIP.and application www.nasc.org.uk processwww.nasc.org.uk is now accredited to SSIP. www.nasc.org.uk CCPPD CPD IS LIVE: TwO DAY MANDATORY CPD COURSES CPDPRIOR IS TOLIVE: RENE TwwO ALDAY OF MANDATORY SCAFFOLDING CPD CARDS COURSES PRIOR“HSE welcomes TO RENE the introductionwAL OFof this SCAFFOLDING into the CISRS scheme... CARDS it will have a positive “HSEeffect, welcomes particularly the for introduction those who of may this not into have the receivedCISRS scheme... any formal it will training have afor positive years.” effect,Ray Cooke, particularly Head of for Construction those who maySector not Safety have receivedUnit, HSE any formal training for years.” RayFor further Cooke, information Head go to: of Construction Sector Safety Unit, HSE Forwww.cisrs.org.uk further information go to: www.cisrs.org.uk To advertise contact Chris Cairns +44(0)20 7871 0927 or [email protected] CISRS - PS - Emma.indd 1 23/01/2018 11:46 2 NOVEMBER/ DECEMBER 2018 CISRS - PS - Emma.indd 1 23/01/2018 11:46 CONTENTS RICS CONSTRUCTION JOURNAL Front cover: contents © iStock 4 CONTACTS Doing what’s right For Tim Fry the question is not why be ethical – it’s why would CONSTRUCTION JOURNAL you not? Editor: Steph Fairbairn 5 E [email protected] Update The Construction Journal is the journal of the Project 7 Management and Quantity Surveying & Construction Professional Groups Standards update Advisory group: 8 Helen Brydson (Faithful+Gould), Gerard Clohessy (Arcadis), Virtues between the vices David Cohen (Amicus), Christopher Green (J. Murphy & Sons The great thinkers can help us Limited), Andrew McSmythurs (McSmythurs Consulting Ltd), gain both understanding and David Reynolds (Bloomsbury Project Management), Rachel perspective on ethics, affirms 18 Titley (Arcadis), Tim Fry (Project Management Professional Dr Andrew Knight Don’t hold back Group Chairman), Alan Muse (RICS), Steven Thompson (RICS), Anil Sawhney (RICS) Chris Green assesses the impact 9 of payment retention in the Our stance on ethics light of Carillion’s collapse, and Construction Journal is available on annual subscription. All The RICS is committed to considers some alternatives enquiries from non-RICS members for institutional or company providing the most relevant subscriptions should be directed to: guidance on ethics and conflicts 20 of interest, says Peter Bolton King Infrastructure’s infrastructure E [email protected] Proquest – Online Institutional Access The infrastructure sector has T +44 (0)1223 215512 for online subscriptions 10 work to do to transform itself, say Being clear on transparency Alan Muse and Anil Sawhney Published by: Royal Institution of Chartered Surveyors, Kathryn Higgs, Director Parliament Square, London SW1P 3AD of Business Integrity at 22 T +44 (0)24 7686 8555 W www.rics.org Transparency International, Elemental approach ISSN: ISSN 1752-8720 (Print) ISSN 1759-3360 (Online) offers some insights on Joe Martin discusses using BCIS corruption in our industry data to produce an elemental Editorial and production manager: Toni Gill order of cost estimate at the Sub-editor: Matthew Griffiths 13 earliest stage of a project Guiding light Designer: Will Williams The co-founders of the Global 26 Advertising: Chris Cairns T +44 (0)20 7871 0927 Infrastructure Anti-Corruption Good conduct E [email protected] Centre, Catherine and Neill Susan Hanley details what APC Design by: Redactive Media Group Printed by: Page Bros Stansbury, outline the tools and candidates need to know about guidance it offers the competency Ethics, Rules of Conduct and professionalism 14 What would you do? 29 A group of construction Beyond a bribe professionals discuss appropriate RICS members must be proactive courses of action when faced by to avoid falling foul of the Bribery potential ethical dilemmas Act 2010, warns Shy Jackson While every reasonable effort has been made to ensure the accuracy of all content in the journal, RICS will have no responsibility for any errors or omissions in the content. The views expressed in the journal are not necessarily those of RICS. RICS cannot accept any liability for any loss or damage suffered by any person as a result of the content and the opinions expressed in the journal, or by any person acting or refraining to act as a result of the material included in the journal. All rights in the journal, including full copyright or publishing right, content and design, are owned by RICS, except where otherwise described. Any dispute arising out of the journal is subject to the law and jurisdiction of England and Wales. Crown copyright material is reproduced under the Open Government Licence v1.0 for public sector information: www.nationalarchives.gov.uk/ doc/open-government-licence NOVEMBER/ DECEMBER 2018 3 RICS CONSTRUCTION CHAIRMAN’S COLUMN JOURNAL CHAIRMAN'S COLUMN Doing what’s right For Tim Fry the question is not why be ethical – it’s why would you not? not.” Quite right, Oprah. You I believe more firms shouldn’t need to be told how upstream need to take to behave: you should know. responsibility. If they don’t, To do our jobs we need we are simply kicking the can moral authority. No project down the path. One day it will manager will get very far if no bounce back and hurt us. I one believes a word they say. I think clients deserve a more am pleased Stephen R. Covey holistic approach. agrees with me when he says: “Moral authority comes Work to do from following universal The application of standards and timeless principles is covered in this issue by I like to define what I mean by like honesty, integrity, and a discussion of conflicts of a statement and then explain treating people with respect." interest, most importantly how big name requires a critical what I intend to do about it. As he’s the author of The 7 to avoid or mitigate them. The mass, which creates bigger Let’s take the RICS definition Habits of Highly Effective guidance RICS provides – the firms, and these are then Iof ethics, which is the subject People – a rather good book Conflicts of interest global inevitably small in number. of many articles in this issue. about management – and a professional statement and The ethical barriers RICS professionals respected businessman with the Rules of Conduct – is consequently created within demonstrate their a record of success, I am clear and concise. But there these firms to allow them to commitment to ethical inclined to listen to him. are issues out there that I conduct some business are behaviour by adhering to the think we need to consider and extremely open to abuse. We five global professional and Taking responsibility improve on. can put in place all the secure ethical standards. Bearing The last RICS ethical standard For example, how do we files and firewalls, process in mind that successful is “take responsibility”. This actually manage conflicts protocols and procedures businesses are built on is in my view something that of interest? We now refer to that we want, but in the end relationships, and that strong we don’t do enough. Some ethical barriers or information it would only take one person relationships are built on people cite professional barriers, and I understand to leave one key document trust, mutual respect, integrity indemnity insurance as the the need for these. There on a desk and another with and appropriate standards reason for this; others think are a limited number of firms different interests to find of behaviour, applying RICS the subcontractors can with the demonstrable track and read it to make those ethics is clearly the right thing accept responsibility, and record and capability for measures redundant. to do. Why wouldn’t you? some subcontractors then fulfilling certain roles and, The only proper defence is feel obliged to do so to get in a busy market, we need behaving in the manner Oprah Business advantage on to the next tender list. The to respond to client needs describes, by applying the The things that differentiate industry has an obsession promptly and to the best of ethical standards that RICS us from other professionals that we call passing risk down our ability. Thus, the talent provides – and to which you as RICS members are the line, or backing off risk. pool is confined to a certain sign up and adhere. b ethics and standards, so I know, as do you, that risk few organisations. by complying with both you is best managed by those who Relying on a big name are giving yourself, and by have the skills to mitigate or can be a safe option and Tim Fry is the Chair of the RICS association your employer, a remove it. The problems I see many clients, particularly Professional Group Board for Project Management, a member business advantage.