Ethics Case StudiesEthics Case Studies

cs 28 - Construction Observationcs 28 - Construction Observationcs 07 - Neighbor’s Housecs 07 - Neighbor’s Housecs 11 - Employee Rights cs 11 - Employee Rights cs 12 - 2 Clients / 1 Projectcs 12 - 2 Clients / 1 Projectcs 18 - Cash Flow Bindcs 18 - Cash Flow Bind

cs 07 - Neighbor’s Housecs 07 - Neighbor’s HouseSet upSet up

Client = John & Suzie NormalClient = John & Suzie Normal Architect = Domicile PlusArchitect = Domicile Plus Site – Lot at cul-de-sac in an exclusive Site – Lot at cul-de-sac in an exclusive

subdivisionsubdivision Developer = Mr. TractDeveloper = Mr. Tract Neighbors = The BellushisNeighbors = The Bellushis Lawyer = Mr. TortLawyer = Mr. Tort

cs 7 – Neighbor’s Housecs 7 – Neighbor’s House

What is the responsibility of the Domicile + What is the responsibility of the Domicile + architects to their architects to their originaloriginal client? client?

What is the firm’s responsibility of the What is the firm’s responsibility of the Domicile + architects to their Domicile + architects to their newnew client? client?

What is the firm’s responsibility of Domicile What is the firm’s responsibility of Domicile + to themselves regarding their design?+ to themselves regarding their design?

What is the firm’s responsibility of the new What is the firm’s responsibility of the new architect, Mr. Clean, to all parties?architect, Mr. Clean, to all parties?

cs 28 - Construction Observationcs 28 - Construction ObservationSetupSetup

Client = Contractor/developerClient = Contractor/developer Architect = Young FirmArchitect = Young Firm Site – Condo on sloping siteSite – Condo on sloping site Sevivce: Drawings onlySevivce: Drawings only Limited site info shows a buried Limited site info shows a buried

storm/sanitary sewer; no exact locationstorm/sanitary sewer; no exact location

cs 28 - Construction Observationcs 28 - Construction Observation

Should the architect tell the potential Should the architect tell the potential investor about the construction history?investor about the construction history?

What are the obligations of the architect What are the obligations of the architect to is original client?to is original client?

What obligation does the architect have What obligation does the architect have to report to the city building inspector the to report to the city building inspector the changes?changes?

Should the architect agree to provide the Should the architect agree to provide the observation services?observation services?

cs 11 - Employee Rights cs 11 - Employee Rights SetupSetup

Firm A is busy; needs help-tempFirm A is busy; needs help-temp Firm B is temporarily slow; work will startFirm B is temporarily slow; work will start Firm B principal contacts friend who is Firm B principal contacts friend who is

principal at Firm A about lending a worker principal at Firm A about lending a worker for 6 monthsfor 6 months

cs 11 - Employee Rights cs 11 - Employee Rights

Should Firm A offer a permanent position to the Should Firm A offer a permanent position to the employee?employee?

Should Firm A advise the employee that it would like to Should Firm A advise the employee that it would like to have her join the firm, but indicate it feels a commitment have her join the firm, but indicate it feels a commitment to honoring its agreement with Firm B? and therefore to honoring its agreement with Firm B? and therefore return her to Firm A and advertise for new staffreturn her to Firm A and advertise for new staff

Does the employe have any responsibility to Firm B?Does the employe have any responsibility to Firm B? Does Firm B have any obligation to honor the employee’s Does Firm B have any obligation to honor the employee’s

wishes?wishes? If the employee returns to Firm B and then quits shortly If the employee returns to Firm B and then quits shortly

after her return and seeks to be hired by Firm A, what after her return and seeks to be hired by Firm A, what should be the position of Firm A?should be the position of Firm A?

cs12 - 2 Clients / 1 Projectcs12 - 2 Clients / 1 ProjectSetupSetup

You are architect for a shopping centerYou are architect for a shopping center Good client with more work – core and Good client with more work – core and

shellshell Tenant improvement is additional serviceTenant improvement is additional service

cs12 - 2 Clients / 1 Projectcs12 - 2 Clients / 1 Project

Do you tell the shell-and-core work client that Do you tell the shell-and-core work client that you are obligaed to pursue the application for you are obligaed to pursue the application for the tenant client and risk losing this client?the tenant client and risk losing this client?

Do your tell the tenant client that you feel that Do your tell the tenant client that you feel that such a sign would be undesirable from the point such a sign would be undesirable from the point of view of the overall project appearance and of view of the overall project appearance and decline to pursue the application?decline to pursue the application?

Do you share your delemma with both clients? Do you share your delemma with both clients? If so, on what basis do you pursue a resolution?If so, on what basis do you pursue a resolution?

Do you have any ethical obligations to either Do you have any ethical obligations to either client?client?

EthicsEthics

►Registration Statutes & RegulationsRegistration Statutes & Regulations►Professional Conduct RulesProfessional Conduct Rules►AIA Code of EthicsAIA Code of Ethics►Antitrust ConcernsAntitrust Concerns

GeneralGeneral

► A combination of laws, statues and codes A combination of laws, statues and codes regulate and influence the behavior of regulate and influence the behavior of practicing architects. Some are practicing architects. Some are mandatedmandated and others are and others are voluntaryvoluntary. .

► MandatedMandated controls are included in the controls are included in the state state licensing statuteslicensing statutes for the practice of for the practice of architecture as well as federal antitrust architecture as well as federal antitrust statutes that set rules for how businesses statutes that set rules for how businesses compete.compete.

General, cont.General, cont.

► On the On the voluntaryvoluntary side, architects electing side, architects electing to join to join professionalprofessional societiessocieties must subscribe must subscribe to rules of conduct and ethics established to rules of conduct and ethics established and administered by those societies.and administered by those societies.

► Architects play roles in establishing and Architects play roles in establishing and administrating some legal and professional administrating some legal and professional ethical regulations. ethical regulations. They participate in professional degree They participate in professional degree

programs, serve on registration boards, establish programs, serve on registration boards, establish codes of ethics and adjudicate professional codes of ethics and adjudicate professional misconduct.misconduct.

REGISTRATION STATUTES & REGISTRATION STATUTES & REGULATIONSREGULATIONS

► The authority to enact legislation protecting The authority to enact legislation protecting public health, safety and welfare – including the public health, safety and welfare – including the authority to regulate professions – is exercised authority to regulate professions – is exercised primarily primarily by the statesby the states..

► The Bill of Rights reserves to the states all The Bill of Rights reserves to the states all powers not specifically granted by the powers not specifically granted by the Constitution to the federal government. Constitution to the federal government. Protecting public health, safety and welfare is Protecting public health, safety and welfare is one of these reserved powers. Thus the one of these reserved powers. Thus the regulation of most aspects of design and regulation of most aspects of design and construction falls to the states under the Bill of construction falls to the states under the Bill of Rights.Rights.

REGISTRATION STATUTES & REGISTRATION STATUTES & REGULATIONS, cont.REGULATIONS, cont.

► States enact legislation governing the States enact legislation governing the registration of architects and a more registration of architects and a more detailed set of administrative rules and detailed set of administrative rules and regulations, these typically include:regulations, these typically include: Define the practice of architecture and limit it to Define the practice of architecture and limit it to

those who are registered as architects within that those who are registered as architects within that jurisdictionjurisdiction

Restrict the use of the title Restrict the use of the title architectarchitect to those who to those who are licensed as architectsare licensed as architects

Establish requirements for entry to the professionEstablish requirements for entry to the profession

REGISTRATION STATUTES & REGISTRATION STATUTES & REGULATIONS, cont.REGULATIONS, cont.

Empower a registration board to establish Empower a registration board to establish rules and regulationsrules and regulations

Indicate how architects registered in other Indicate how architects registered in other jurisdictions may become registered to jurisdictions may become registered to practice in the jurisdictionpractice in the jurisdiction

Define professional conduct and Define professional conduct and misconductmisconduct

Outline penalties for those who practice Outline penalties for those who practice architecture illegally within the jurisdictionarchitecture illegally within the jurisdiction

PROFESSIONAL CONDUCT PROFESSIONAL CONDUCT RULESRULES

► These rules deal with the governing of These rules deal with the governing of architectural practice and include:architectural practice and include: The use of the architect’s sealThe use of the architect’s seal Conflict of interestConflict of interest Disclosure of financial interest in projects and Disclosure of financial interest in projects and

other aspects of professional behaviorother aspects of professional behavior► Each jurisdiction’s regulations include:Each jurisdiction’s regulations include:

Provisions for filling complaintsProvisions for filling complaints Investigating the allegations made in the Investigating the allegations made in the

complaintscomplaints Hearing both sides of the issueHearing both sides of the issue Administering penaltiesAdministering penalties

►A jurisdiction designates an A jurisdiction designates an administrative agency that typically administrative agency that typically has the power to admonish, censure, has the power to admonish, censure, suspend or revoke an architect’s suspend or revoke an architect’s registration to practice in that registration to practice in that jurisdiction.jurisdiction.

►New Jersey State Board of ArchitectsNew Jersey State Board of Architects

Common Questions

AIA CODE OF ETHICSAIA CODE OF ETHICS

► 3 Tier Organization3 Tier Organization CanonsCanons are broad principles of conduct. The are broad principles of conduct. The

code’s 5 canons are general statements that code’s 5 canons are general statements that address professional responsibilities to the address professional responsibilities to the discipline, the public, the client, the profession discipline, the public, the client, the profession and professional colleagues.and professional colleagues.

Ethical StandardsEthical Standards are specific goals toward which are specific goals toward which members should aspire in professional practice members should aspire in professional practice and conduct, the 1st ethical standard (E.S. 3.1) and conduct, the 1st ethical standard (E.S. 3.1) under Canon lll Obligations to the Client, reads:under Canon lll Obligations to the Client, reads:

►““Members should serve their clients in a timely and Members should serve their clients in a timely and competent manner”competent manner”

AIA CODE OF ETHICS, AIA CODE OF ETHICS, cont.cont.

Rules of conductRules of conduct implement the canons and implement the canons and ethical standards. The canons and ethical ethical standards. The canons and ethical standards are stated in aspirational terms; the standards are stated in aspirational terms; the rules are mandatory and describe the floor below rules are mandatory and describe the floor below which a member’s actions may not fall. Only a which a member’s actions may not fall. Only a violation of a specific rule of conduct can be the violation of a specific rule of conduct can be the basis for disciplinary action by the AIA. Ethical basis for disciplinary action by the AIA. Ethical Standard 3.1 states (in part):Standard 3.1 states (in part):

►““Members shall not materially alter the scope or Members shall not materially alter the scope or objectives of a project without the client’s consent”objectives of a project without the client’s consent”

Fiduciary RelationshipFiduciary Relationship ► The retention of a professional designer by a The retention of a professional designer by a

client – like the relationship between client – like the relationship between employer and employee and between employer and employee and between partners- creates a partners- creates a fiduciary relationshipfiduciary relationship

► A fiduciary relationship is contrasted with A fiduciary relationship is contrasted with thethe arm’s length relationshiparm’s length relationship. . In a In a commercial setting parties generally deal at commercial setting parties generally deal at “arm’s length”: each party must look out for “arm’s length”: each party must look out for itself. On the other hand, a fiduciary itself. On the other hand, a fiduciary relationship is a close one, and the parties relationship is a close one, and the parties must be able to trust each other.must be able to trust each other.

ANTITRUST CONCERNSANTITRUST CONCERNS►As with all business enterprises, As with all business enterprises,

architects are prohibited under federal architects are prohibited under federal law from combining with others to law from combining with others to engage in activities that engage in activities that restrain trade restrain trade or are otherwise anticompetitiveor are otherwise anticompetitive..

ANTITRUST CONCERNS, cont.ANTITRUST CONCERNS, cont.►Basic PrinciplesBasic Principles

Agreements or other joint conduct Agreements or other joint conduct between 2 or more competitors that between 2 or more competitors that unreasonably restrain trade are unreasonably restrain trade are illegalillegal

Fix or maintain pricesFix or maintain prices;; (price fixing) (price fixing) architects must make independent architects must make independent decisions on fees for their servicesdecisions on fees for their services

ANTITRUST CONCERNS, cont.ANTITRUST CONCERNS, cont. Boycott a competitor or customerBoycott a competitor or customer; ;

an agreement or understanding an agreement or understanding among competing architects not to among competing architects not to deal with another architect or a deal with another architect or a particular client or category of particular client or category of client if the purpose is to limit client if the purpose is to limit customer choicescustomer choices

ANTITRUST CONCERNS, cont.ANTITRUST CONCERNS, cont.

►Allocate business or customersAllocate business or customers;; a a decision among architects to divide or decision among architects to divide or allocate customers or markets is allocate customers or markets is unlawful. Even informal, unwritten unlawful. Even informal, unwritten understandings that architects will understandings that architects will refrain from doing business with one refrain from doing business with one another’s clients violate the law.another’s clients violate the law.