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PROFFESSIONAL ETHICS | QSB 60604
1.0 Profession and Occupation

1.1 Differences between Profession and Occupation.

The terms profession and occupation are often interchangeable, but albeit
being similar, there are distinguishable differences between them.

According to Professions Australia, a unified voice and representation of over
20 professional associations, a profession is a disciplined group of individuals
who conforms to a set of high ethical standards whom are to the public, hold
some qualification and practised their possessed substantial knowledge and
skills in the interest of others. An occupation, on the other hand, refers to the
economic activity undertaken by an individual usually for monetary
compensation for the hard work earned.

One distinct characteristics that set apart profession from occupation is the
need of regulation by a professional body. A professional should pursue the
certification from the exam conducted by its relevant professional body to be
qualified as a professional.

Most of the professions have their own codes of ethics and it serves to
provide a framework at the arriving of good ethical decision. Unlike
profession, occupation is not governed by a body nor are they bounded by a
code of conduct.

A professional is being paid for his substantial skills and knowledge, for
instance doctors providing medical treatments to the public or lawyer
providing legal advice to their Clients. On the flip side, when an individual is
remunerated for their service, usually not of substantial knowledge or
specialized education will be known as an occupation such as drivers or
waiters.

For professional are expected by public for their possessed specialized
knowledge and capability, there is a need to undergo training higher
education.
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Hence, a training on their specialization in a specific area of interest is very
much needed. Looking at occupation where relatively lower degree of
responsibilities is anticipated from their provided service to the public.

All in all, we can say that occupation is a much broader term which includes
profession for a profession can be an occupation but not all occupation is
profession.

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1.2 Quantity Surveying, Construction Manager and Contract

Administrator
A ‘professional’ may be described as a person who is skilled, holds special
qualifications and conforms to high standard of performance and work ethics.
He normally belongs to a regulatory body which prescribes common rules of
conduct and standards of practice.

Quantity Surveying
Quantity surveying is considered as a profession. A Quantity Surveyor (QS) is
a construction professional who is trained to estimate and advise on the costs
of a construction project as well as manage all relevant contractual
documents. Also, they have to ensure that the production and construction
cost are managed efficiently.

To earn the qualification of a professional title, a freshly graduated QS has to
first register with the Board of Quantity Surveyors (BQSM) which is under the
The Quantity Surveyors Act 1967. BQSM acts as an institution to attend to all
matters of professional conduct and practice in effort to maintain the
standards of the title.

Students must enrol in a degree in quantity surveying accredited by BQSM
before applying to be a Registered Graduate Quantity Surveyor. After at least
2 years of working experience, only then he is eligible to apply to be a
Registered QS. The individual must meet the Board’s annual continuing
professional development requirements (CPD) in order to maintain his status
as a Registered QS.

Only Registered QS can provide professional QS services and charge
professional fees (Act 487 of 1967). The list of Registered Provisional QS,
Registered Professional QS and Registered Consultant QS as well as the list
of accredited institutions is published and maintained by BQSM. All members
of BQSM must adhere to the QS Rules which specifies the Code of
Professional Conduct to ensure the highest standards of professional
excellence.
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The quality for a Private Practice Surveyor is maintained by the RICS’s
Chartered Membership MRICS & FRICS. In Australia, the Australian Institute
of Quantity Surveyors (AIQS) is the body for the QS profession.

Construction Management
Construction management (CM) is also a profession. A CM provides
professional project management and technical expertise to run construction
projects from the starting to ending phase, with in-depth knowledge and ability
to apply resources wherever needed during the timeline of a construction
project. A CM manage the timeline and profitability of the whole operation,
maintaining the value against schedule.
Similar to QS, students indulging in CM should procure a degree in CM with
accreditation by the Chartered Institute Of Building (CIOB). CIOB’s
accreditation is the acknowledgement for the teaching institute, signifying that
it reaches the highest standards of governance, quality assurance and
resource management.
As for professional development, CIOB is the most relevant professional body
for management career in construction with a range of training, where such
professional development is essential to keep this role up to date with
profound legislation and technical information.
It offers a professional development programme to be entitled as a Chartered

Member (MCIOB) after the completion of programme. You may also become
chartered with an alternative body such as the Royal Institution of Chartered
Surveyors (RICS) or obtain other professional certification such as Certified
Construction Project Manager (CCPM) which is recognized locally and is a
register maintained by Construction Industry Development Board (CIDB).
In conclusion, it meets the criteria to be classified a profession as it is
accredited by a few of the most recognized professional regulatory bodies.

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Contract Administration
Contract administration is not a profession. A contract administrator (CA) is a
individual appointed by a Client to administer the contract between the Client
and the Contractor.

The CA is responsible for administering the terms of the building contract
between the parties. He will act as an impartial agent between the Employer
and the Contractor. The CA can be undertaken by several possible
professionals. Traditionally, the role is filled by the Architect but has recently
progressed to be commonly undertaken by quantity surveyors in Malaysia.

The appointment of the CA has to comply with RICS rules such as conforming
to terms and conditions of appointment, fees, etc. Their roles include general
administration, records, site inspections, cost savings, interim valuations, LAD
and many more contractual related responsibility.

Although Contract Administration may be of a specialised work with the
expertise in contractual laws and in the adoption of more formal and
structured contract management procedures, however, it does not have a
professional body as a regulatory professional body and the contracting jobs
can be undertaken by any other related professionals. Hence, it does not
have a distinguished independent body. Therefore, it is not a profession.

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3.0 BQSM Code of Ethics

3.1 Ten Important Provisions under the Quantity Surveyors
(Amendments) Rules 2016, Part IV Code of Professional Conduct.

Professions strive only when the public retains confidence in them and this is
achievable through intact work integrity, where the professional behave
ethically and maintain their professionalism in their field.
RICS believes that “behaving ethically is at the heart of what it means to be a
professional”. It suggest that ethical standards should be prioritised as it
distinguishes professionals from others. Under the Quantity Surveyors
(Amendment) Rules 2016, provisions on the expectancy of the professional
standard of a registered Quantity Surveyor is listed under Part IV Code of
Professional Conduct.

Provision 1: Clause 26. Conduct of a registered Quantity Surveyor.

In Clause 26 (1), the conduct of a registered Quantity Surveyor (QS), a QS
shall at all times carry himself with dignity and maintain his professional
stance in all working manners. In Clause 26 (1A) QS owe his Client a duty of
reasonable care, skill and diligence, as such said professional is usually hired
for their skills and substantial knowledge. For Clause 26(2), 26(3) and 26(4), it
necessitates the need to adhere to the Code of Conduct especially when
dealing with speaks and acts that might bring disgrace or injure the integrity of
the Board. A professional QS should always portray himmselves in a manner
that promotes the profession in a positive way. For example, he shall always
communicate politely in a professional setting in the delivery of his services
and avoid vulgar language.

Provision 2: Clause 26A. Public Interest.
In clause 26A, public interest, a registered quantity surveyor shall
acknowledge that he has an obligation to consider public interest, in the
conduct of his professional business. He should make certain that the public
confidence in the integrity of the profession is maintained by delivering the
highest standard of ethical behavior during the conduct of his business. This
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means that he has the professional responsibility to provide viable advice to
his Clients to ensure the tender process is transparent. This includes not
withholding any data that may be in the interest of the Client, local authorities
or the public. For example, open tender method should be used for public
projects to discourage biased choice of Contractor and to ensure the best
price is obtained. Public accountability for management of public funds in the
construction of buildings and infrastructure shall be the prime concern for
ethical professionals. (Mohamad, 2015)

Provision 3: Clause 27. Discharge of Duties.
In Clause 27(1) a registered QS is obliged to responsibly perform a duty to his
Client with utter honesty and to “act with integrity”, one of the five standards
set by the RICS for their expectancy of member’s behaviour. Whereas in
Clause 27(2) it is important to know that unless he has the approval from their
Client, the registered QS and his colleagues shall not accept any form of
payment from parties apart from their Client for services rendered.

In Clause 27(3), a registered QS shall not offer or accept commission where
the Board deems illicit. For example, a tenderer trying to bid for a project
might attempt to bribe or ‘form a good relationship’ with the project CQS,
intentionally renders gifts and commissions in the hopes of winning the tender
illicitly. It is important for all QS to know their stance and not to succumb to
such bribery as this is not only against the Code of Professional Conduct but
also a wrong in the Bribery Act (2009). On the other hand, the registered QS
should decide if the Contractor’s gift is to express his utter appreciation as
well as nurse a good relationship without the intention of bribery. This can be
decided based on the value, only gifts of prominent value shall be deemed
unethical to accept.

Clause 27(4), unless the Board approves in writing, a CQS shall not hold the
position of a director or substantial shareholder for any construction firms.
Clause 27(5) further states that when approval has been obtained in
accordance with Clause 27(4), the CQS has to make known to his Client of
his position in the event where both firms are involved in the same project.
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This is to avoid the conflict of interest which arises when the CQS is in
position to provide unfair advice to the benefit of the Contractor firm where he
could profit from.

Provision 4: Clause 28. Conditions of engagement and scale of charges.
Clause 28(1) states that a registered QS is responsible for disclosing the
terms and conditions of the Memorandum of Agreement which is constituted
of the Articles of Agreement, General Conditions of Engagement and
Schedule of Fees to the Client preceding his acceptance of appointment.

The MOA is a legal written document describing a cooperative relationship
between the Client and the CQS which serves as an agreement upon
prevailing term and conditions.

Clause 28(2) states that the appointment of a registered QS must be made
known to the Board within 30 days upon receiving written confirmation from
the Client. The written confirmation can either be the Letter of Appointment or
the signed MOA.

Provision 5: Clause 29. Reputation, etc. of a reputation person not to be
injured.
Referring to Clause 29, concerning the reputation of a registered QS, he shall
not maliciously, whether intentional or otherwise, injure or an attempt to injure
the professional reputation of another registered QS.

Both personal and professional reputation are important. A Contractor’s
reputation determines his probability of being invited to tender. Similarly, a
QS’ reputation forms the basis of trust and opinion his client has for him. Not
only that, it also extends to influence his future prospects of appointment. A
good profession reputation earns him a good impression of a future job
opportunity while a ruined one does otherwise.

An ethical, registered QS, shall be aware of the impact of his statements,
directly or indirectly, that might impute others image. If Clause 29 is violated,
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legal actions could be charged against the author of defamatory words, under
defamation. Defamation, a tort law, is a civil wrong that compromises the
reputation of someone. It arises when a statement is made to lower a man’s
reputation in the eyes of public and causes him to be avoided or shunned.
We, as professionals, must uphold the reputation of our profession not only by
being ethical but also respecting the integrity of other professionals and avoid
tainting their public image by making malicious comments.

Provision 6: Clause 30. Advertising and soliciting prohibited.
In Clause 30 (a), (b), and (c), a registered QS shall not obtain or attempt to
obtain his professional employment by means of soliciting or paying a
monetary or other inducement which may suggest an improper obligation in
order to secure any work. In efforts of promoting trust in the QS profession, all
members shall refrain from bribing a third party to endorse his employment as
it would impair the impartiality of the Clients’ choice of firm. The ethical
standards requires all members to act in a way that promotes trust in the
profession which implies that advertising or soliciting is unprofessional and
does not live up to the ethical standards set by the Board.

Provision 7: Clause 32. Fairness in construing and administering

contracts.
For QS owes a duty to their Client to always provide a high standard of
service, this applies to not only calculation but also to contract administration,
a field seen to be ventured in by a lot of practising QS now.

As the contract administrator, a registered QS is obliged to Clause 32,
fairness in construing the administering contracts, whereby he shall at all
times construe and administer with fairness and provisions of a contract on
works appointed to him and always act in an unbiased manner in solving
disputes of the contract. As nurtured by the RICS, a registered QS shall
always act with integrity and form impartial opinions that aligns with his
professional judgements when administering work.

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For example, a registered QS’s advice of action shall always be objective and
neutral. In instances where a QS is producing the interim payment and also in
cases to evaluate the variation order and loss and expense claim, a registered
QS is entrusted by his Client to do a fair valuation of work, not favouring any
parties.

Provision 8: Clause 33. Restriction on entering professional partnership.
In Clause 33, restriction on entering professional partnership, a registered QS
shall not obtain, assist in obtaining, contravene or disguise information
regarding the approval of a registration for a Consultancy QS Practice from
the Board by means of fraud or misrepresentation. If known, the registration
granted will be withdrawn under section 7A(3) of the QS Act 1967. Section
7A(3) states that the firm will be granted as Consulting QS Practice only if the
sole proprietor, all the partners in the partnership, or containing persons
among a board of directors are registered QS. Hence, it is illegal for the firm
to attempt to get approval by misrepresenting their qualifications. Therefore, in
line with the professional ethic standard, this clause advises the QS to
demonstrate that they act with integrity by being trustworthy and transparent.
Also, the QS has to be honest to all parties and never try to conceal any
factual information to whom he has the professional responsibility.

Provision 9: Clause 34. A registered Quantity Surveyor practicing as
Consulting Quantity Surveying Practice not to intervene in or take over
the practice of another.
Clause 34 states that a registered QS practicing as a Consultant Quantity
Surveyor (CQS) shall not intervene in or take over the practice of another as
stated in Clause 34(a) through supplant or an attempt to supplant another
CQS whose status is being employed and the appointment has yet to be
terminated. Clause 34 (aa) further mentioned that they are not allowed to
secure such appointed in Clause 34(a) by means of undercutting or through
reduction of fees or any other similar means of actions to replace an already
appointed CQS.

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Through RICS cultivation of treating others with respect, with the courtesy of
respecting others’ works, undercutting your professional fees can be said
equivalent to tenderers undercutting their tender bid in order to obtain a
project;; it is unethical and does not promote healthy competition. Also,
reducing their fees to replace another co-member does not promote trust in
their profession and would ruin their reputation in the eyes of the Client.

Whereas in Clause 34(b), it states that they shall not intervene the work
entrusted to another CQS or take over another co-member’s work with the
same Client on the same project. This aligns with the RICS standard to act
with integrity by not taking advantage of your colleagues and to always
maintain a professional stance when dealing with professional matters.
Nonetheless, it is possible for a registered QS to take over if it complies with
Clause 34(b)(i) where a consent from the other registered QS is obtained or in
Clause 34 (b)(ii) been formally notified that the engagement of the other QS
has been terminated by the Client.

Provision 10: Clause 35. Acting in dual capacity.
In Clause 35, acting in dual capacity, it stated that a registered QS who work
as a consultant QS shall not concurrently represent the Client and a
Contractor on the same project unless on the specific instruction of Client.
This is to avoid a conflict of interest as the QS is placed in a position where he
has to take care of the Client’s best interest as well as attempt to gain profit
for the Contractor. A conflict of interest can cause doubt on the QS’s integrity
as well as have a damaging effect on the consultant firm and the profession
as a whole. For example, a QS Consultant firm is asked to provide a tender
report after the tender process and recommends his own company to the
Client. This would result in a biased manner which would lead to conclude
that the decision or agreement was unfair.

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3.2 Professional Duty of Care and Standard of Quantity Surveyors under
the BQSM Conditions of Engagement under Part IV Code of Professional
Conduct

In the QS (Amendment) Rules 2016, BQSM places an obligation upon the QS
to conduct himself in accordance with the Code of Professional Conduct. The
conditions of engagement is provided for in Clause 28 which was enforced
on 30th January 2016.

The Memorandum of Agreement (MOA) serves as a written agreement of the
professional standard to be expected of the QS to the Client. The MOA is
constituted of the Articles of Agreement, General Conditions of Engagement
and Schedule of Fees. The terms in the MOA are to be agreed upon, with any
amendments made to be initialed, and the final copy signed by both parties.

The obligation of the CQS are provided for in the MOA under Clause 5 of
Section B General Conditions of Engagement.

Most standard contracts that involve professionals establishes the conditions
of performance to imply that their engagement is subject to a duty to employ
reasonable skill and care. Clause 5(A) of the MOA states that the CQS
must exercise reasonable skill, care and diligence his services. It is his
obligation to prepare the BQ in accordance with the latest SMM issued
by RISM. With specialised training and skills, the QS is a construction
professional directly engaged by the Client to provide advice on all aspects of
construction costs, financial and contractual administration from initial
estimate to the final account of projects. Hence, the QS is required to exercise
professional duty of care to the Client by undertaking his duties, as mentioned
in Clause 26(1A) of the QS (Amendment) Rules 2016. Failing to do so, the
QS can be deemed to have committed a misconduct which may result in a
claim of professional negligence. In this case, BQSM retains the right to
consider him an unworthy member, thus, removing his membership. (Mohd,
2012)

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Clause 5(B) of the MOA further states that the CQS must not only
provide the services listed in the Schedule of Fees but must also take
into account and act in the way which are customarily practiced by all
professional QS. Professional standard of care is determined by considering
what a professional with similar skills and expertise would do under the same
circumstances. For instance, the MOA specifies that a QS is expected to
provide advice on appropriate contract arrangements and prepare contract
documents. Nevertheless, he should be sure to attend to all matters in the
preliminary, design and contract stage to ensure there is minimum risk in that
form of contract and that it is in the best interest of his Client. Another
example of standard of care expected is if a CQS is providing a cost estimate,
allowance should be made in account for any possible variation to produce a
justifiably accurate estimate as would be done by any other professional QS.

Clause 5(C) of the MOA states that the CQS has a responsibility to
withhold any confidential information about the project and will not use
said information on other projects unless a written approval is obtained.
As a professional, the CQS should understand the importance of Client
confidentiality and shall refrain from using unauthorised information in other
projects. RICS requires its members to act with integrity which means
professionals shall not abuse their access to the information of the project for
their own benefit without the knowledge of the Client. The CQS should also
always promote trust in the profession and always strive to portray the
profession in the best light possible.

Clause 5(D) of the MOA states that the CQS is obliged to make known
any interests the construction or supply contracts of the project to the
Client and obtain a written consent from the Client prior to any
commitment. This is because a conflict of interest exists if the CQS is acting
for both the Client and the Contractor on the same project, unless on the
specific instruction from the Client as depicted in Clause 35 from the QS
(Amendment) Rules 2016. For example, if the CQS issues interim certificates
in favour of a main contractor even though he is aware that the rates were too
high, it is said that the QS did not exercise the standard of care expected from
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BQSM. (Mohd, 2012) These ethical standards suggest that the CQS should
always act with integrity by being transparent and declaring any concerns to
all parties as well as never allowing undue influence to impact his professional
judgements. Nevertheless, conflicts of interest can be managed as long as
both parties are aware of all the facts and is endorsed by both parties in
writing.

Clause 5(E) of the MOA states that the CQS shall not allow his staff or
associates to be involved in activities other than the specified
professional services without consent. The basic and additional services
expected of the CQS is described under Section C Schedule of Fees, Clauses
3 and 4. To uphold RICS’ ethical standards of providing a high standard of
service, the CQS has a professional responsibility to perform based on the
agreed terms of engagement. In the event the Client requests for services that
is beyond the scope of work, the CQS shall communicate the situation to
Client for him to make an informed decision.

Clause 5(F) of the MOA states that the CQS shall obtain written consent
from the Client before commencing his basic and additional services
specified. The CQS shall ensure that the Client is aware of the terms and
conditions of the MOA and confirm the scope of services required before the
issuance of the letter of appointment. The MOA must be signed and stamped
by both parties and any amendment made to the clauses must be initialled.

Upholding ethical principles is what deems professionals reliable.
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PROFFESSIONAL ETHICS | QSB 60604

1.0 Profession and Occupation

1.2 Quantity Surveying, Construction Manager and Contract

It offers a professional development programme to be entitled as a Chartered

3.0 BQSM Code of Ethics

Provision 1: Clause 26. Conduct of a registered Quantity Surveyor.

Provision 7: Clause 32. Fairness in construing and administering

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