civil101

1. QuestionOne
a) EngineerMark,a proprietorof a large engineeringfirmthatdesignsmachineryforconstruction
companiesisrequestedbyDavidConstructionCompanytodesignaparticularcompactorto be usedin
road constructions.EngineerMark'sfirmdoesnot possess the expertisetodesignthatparticularkindof
compactor andtherefore requestsandpaysanotherfirmwhichismore advancedtoprepare contract
designdrawingsforthe particularcompactorto be includedaspart of EngineerMark's contract
documentbiddingpackage.EngineerMark reviewsthe contractdrawingsandsignsandsealsthose
drawingsaspart of the overall designdrawings.
i.Was itethical forEngineerMark to payanotherfirmto prepare contract drawingstobe includedas
part of EngineerMark'scontract package?
ii.Was itethical forEngineerMark to signand seal those drawings?
[10 marks]
SOLUTION
REFERENCES
SectionII.2.a.
Engineersshall undertake assignmentsonlywhenqualifiedbyeducationexperienceinthe specific
technical fieldsinvolved.
SectionII.2.b.
Engineersshall notaffix theirsignaturestoanyplansor documentsdealingwithsubjectmatterinwhich
theylackcompetence,nortoany planor documentnotpreparedundertheirdirectionandcontrol.
SectionII.2.c.
Engineersmayacceptassignmentsandassume responsibilityforcoordinationof anentire projectand
signand seal the engineeringdocumentsforthe entire project,providedthateachtechnical segmentis
signedandsealedonlybythe qualifiedengineerswho preparedthe segment.
SectionIII.5.a.
Engineersshall notacceptfinancial orotherconsiderations,includingfree engineeringdesigns,from
material orequipmentsuppliersforspecifyingtheirproduct.
SectionIII.9.

2. Engineersshall give creditforengineeringworktothose towhomcreditis due,andwill recognize the
proprietaryinterestsof others.
Discussion:
In today'sever-complex professional environment,anengineercannotbe expectedtomasterthe entire
range of professionalcompetencieswhichare includedwithinthe definitionof the practice of
engineeringanymore.Itappearsthatin the yearsahead,engineering,justasmedicine,law andthe
otherprofessions,willbecome more specializedandsub-specialized.Everyprofessional mustrecognize
the limitationsof hisowncompetence andtake appropriate stepsindealingswithclientstoassure that
the clientrecognizesthose limitationsinaccordance withthe Code.
More and more,engineerswillbe placedinsituationswheretheywillbe requiredtorelyuponthe
expertiseof materialmen,equipmentsuppliers,andotherswhoprovide muchof the substance and
hardware that will be usedandincorporatedintothe projects,products,facilitiesandsystemsthat
engineersdesign.Forexample,inthe designof majorplantsforthe manufacture of highlysophisticated
computercomponents,itisunlikelythataprofessionalengineerwithexpertise infieldsrelatedto
structural engineeringcouldbe expectedtomasterthe intricaciesof electrical andelectronics
engineeringequipment,components,etc.
At the same time,we donot wishto suggestthata professional engineerwhoiscalledupontoserve in
the role of leadprofessional inthe designof afacility,system, buildingorstructure containinghighly
specializedsystemsorequipmentshouldbe permittedtoavoidresponsibilityforthe overall designof
that facility,system,buildingorstructure.Asthe Code clearlystatesinSectionIII.9.,"engineersshall
accept responsibilityfortheirprofessional activities..."
It wouldappearthata reasonable balance needstobe struckbetweenthe increasingspecializationand
subspecializationwithinthe professionof engineeringandthe ethical obligationof engineerstoassume
full responsibilityforthe resultsof theirprofessional activities.
Most state engineeringregistrationstatutesorrulesof professional conductemphasize the view thatit
isunprofessional foranengineertoattemptto practice ina fieldof engineeringinwhichthe engineeris
not proficient.The pointisalsoclearlyarticulatedinthe NSPECode of Ethics.We assertedthatthe intent
of SectionII.2.of the Code isto limitindividual engineersfromundertakingassignmentsorpositionsof
authorityandresponsibilitywhere they lackcompetenceorexperience.We concludedbystatingthat
we didnot believethe Code'sintentwastoprohibitengineers,whose workissubjecttoreview and
oversightbyseniorengineers,fromacceptingnew anddifferenttasksandduties,therebygrowing
professionally."Todecide otherwise,we said,"wouldbe toignore the practical realitiesof engineering
and impose inflexiblepractice requirementsonthe profession."
.Underthe factsin the presentcase,we donot believe itwouldbe inappropriateforEngineerA to
requestandpay a manufacturertoprepare contract drawingswhichwouldbe includedaspartof the
engineer'scontractdocuments.Presumably,the component manufacturerhascompetentengineerson
staff whoare expertandknowledgeable concerningthe industrial equipmentinquestion.Itwouldseem

3. that EngineerA'srequestwouldbe notunlikeasituationwhere anengineerservingasthe prime design
professionalonaprojectretainssub-consultants(e.g.,mechanical,electrical,structural,etc.) todesign
those aspectsof the work forwhichthe consultantdoesnotpossessadequate competence.Thisisa
traditional andcustomarymethodinwhichprofessionalservicesare deliveredwithinthe design
communityandwe believeitwouldbe unwise toattempttoconstrainsuchpractices.
On the otherhand we are of the viewthatit wouldbe inappropriate forEngineerA tosignand seal the
contract drawingspreparedby the manufacturer.EngineerA,byhisownadmission,doesnotpossess
the competence toreviewthe contractdrawingsandsignand seal those drawings.
One mustquestionwhatisthe purpose of EngineerA includingdocumentsanddrawingswhichhe did
not prepare andfor whichhe doesnotpossesscompetence.Asthe Code makesclear,itisunethical for
engineerstoaffix theirsignaturestoanyplanor documentdealingwithasubjectmatterinwhichthey
lack competence,nortoanyplanor documentnotpreparedundertheirdirectionandcontrol.
Under the facts,it isclear thatneitherEngineerA norhisfirmpossessesadequate competenceto
developthe designdrawingsforthe industrial equipment.Moreover,inthe absence of competence
eitherbyEngineerA or hisfirm,itwouldbe impossible forEngineerA orhisfirmto director control the
developmentof those designdrawings."Direction"and"control"are the meansbywhichone party
exercisessupervisionoveranotherparty.Inorderto effectivelyexercise suchsupervision,itisclearthat
the supervisingpartymustbe knowledgeableaboutthe areasbeingsupervised.Here,EngineerA and
hisfirmcannot be saidto be knowledgeableandtherefore itwouldbe inappropriate forEngineerA or
any othermemberof hisfirmto signandseal drawingsforthe designof the industrial equipment.
First,underthe facts,EngineerA receivednothinginexchange fromthe equipmentcomponent
manufacture.Instead,EngineerA paidthe equipmentcomponentmanufacturerafee forall services
rendered.
Second,there isnoevidence thatthe equipmentcomponentmanufacturer'sproductwasevenbeing
specified.Rather,itseemsthe manufacturerwasmerelypreparingagenericdesignforcertain
equipmentandthatanyothervendorof equipmentcomponentscouldalsobidonthe work.There may
be circumstancesinwhichan engineershouldindicate thatthe equipmentcomponentmanufacturer
beingrequestedtoprovide contractdesigndrawingswouldnotbe permittedtobid
Conclusion:
It was ethical forEngineerA topay a manufacturerof equipmentcomponentstoprepare contract
drawingstobe includedaspartof EngineerA'scontract package.
It was unethical forEngineerA tosignand seal those drawings
b) ForeignContractionfirms are awardedmore bidsthanKenyanfirms.Discuss.
[10 marks]

4. Solution
Kenyahasbecome an attractive destinationforforeigncontractorsinrecentyears,especiallythose
fromForeignwhohave baggedmanyroad and constructionjobs.Thisrecentrising numbersof foreign
multi-nationalsinside Kenya’sConstructionindustrieshascausedjittersamongthe local builderswho
are nowpointingfingersatthe governmentaccusingitof favouritismtowardsforeigners.
There isno doubtthat theirpresence inKenyahashada positive impactespeciallythe improved
infrastructure.Thisisinsyncwithour vision2030 whichidentifiesinfrastructure asone of the sectors
that will drive economicgrowth.Howeverthe critical questionremains:“whohasreallyprofited from
foreignintervention?”itisobviousforeigners drivenbytheirownneedforeconomicprosperityandnot
the solidaritywithKenyan government.
Local firmsneedtobe empoweredsuchthattheywill be inapositiontoundertake more mega
infrastructure projectsinthe future ontheirown.Thiscanbe done if structuresare put inplace for
knowledge transferandcapacitybuildingascurrentprojectsare beingimplemented.
Local contractors shouldpetitionthe governmenttoadoptpoliciesadvocatingforthe following:
JOINTVENTURES
The governmenthasinthe recentpast raisedthe demandsonfirmsandtheirpersonnel during
tenderingof projectslikerequiringexperience onbigprojects.Tocounterthisshortcomingforlocal
firms,itcan be made mandatoryforForeignandother firmsbiddingforinfrastructure jobsinthis
countryto enterintolegallybindingjointventures(JVs)withLocal firmsandtosubcontract a higher
percentage of workto local firms.
Thisway,local firmscan gain technical skills,buildexperience andbidcompetitivelyforbigprojectsin
the future.Theywill alsobe ina positiontomaintainthe infrastructure successivelyonce ithasbeen
handedoverto the government.
LABOUR.
The Foreignersshouldmake availabletoKenyans toplevelmanagerial andtechnical jobssointhe future
theycan be in a positiontorun projectsundertakenbylocal firms.Currently,Foreignfirmsofferall their
managerial andtechnical jobstotheirnationals.
Locals are engagedinlowskill activities,whichtheyhave tocompete forwiththe Foreignaswell.The
companiesalsodonothave structuredtrainingprogrammestofacilitate upgradingof skillsand
professionaldevelopmentforworkers.Localshave little ornocontrol overthe construction and
productionprocessesinthose firms.
The Foreignersdeliberatelydonotpassskillstothe localsbecause theyprefertocommunicate intheir
language.The machine operatorscannotordo not speakEnglishorSwahili soitisdifficulttopasson
skillstheyhave tolocal workers.
MATERIALS ANDEQUIPMENT

5. The governmentshouldmake itmandatoryforforeignfirmstouse locallyavailablematerialslike
cement,reinforcementbars,paintetc.fortheirconstructionworks.Thiswill increasethe participation
of local industriesinprojects.Insome pastinstances,the Foreignhave importedthese materialswhich
are exemptedfromtaxesandthereforecheaperthanlocallymanufacturedones.
The same shouldbe done forequipmentandmachinery.A foreign contractorshoulddemonstrate thata
certainmachine orequipmentisnotavailable locallyeitherforbuyingorhire before theyare allowedto
importthe same.
BID EVALUATION
The policythat the lowesttechnicallyqualifiedbiddermustbe awardedthe tendershouldbe revised.
Some foreignfirmshave beenknowntodeliberatelyunderquote forprojectsinordertoensure theyare
awardedtenders.Insucha scenario,the contractor isunable todeliverthe entire projectscope intime
and withinthe requiredqualityspecifications.
Throughfeasibilitystudies,economicevaluationof aprojectbyconsultantsandby studyingprevious
projectsof similarmagnitude inotherpartsof the world,the governmentgetstoknow the approximate
cost of a project.Withthis knowledge,itshouldhave the righttoawardthe tenderto the lowest,most
reasonablypricedandtechnicallyqualifiedbidderandnotjust the lowest.
RESTRICTIONSON BIDDING BY FOREIGN FIRMS
Throughconsultationswithindustryplayers,capsshouldbe putinplace to restrictthe type of projects
that foreignfirmscanbidfor.This criteriashouldbe accordingtoprojectscope,size intermsof money
and the technological aspects.Thiswill reduceunfaircompetitionandprotectlocal firms.
Affirmativeactionbythe governmentduringbidevaluationshouldbe encouraged.The Kenyan
governmentshouldmake sure that10%of the marks are givenfree tolocal contractors.That would
meansthat if the pass markis 75%, thena local contractor needsonly65% as theyhave alreadyearned
10% aheadof the foreigners.
On theirpart,local contractors can increase theircompetitive edge throughthe following:
IMPROVEDSTANDARDS
Local firmsshouldaimtowardsachievingandmaintainingglobalstandardsof operation,technical
know-howandprojectdelivery.Theyshouldadoptmoderntechnologiesthatare inuse globallyto
increase theircompetitiveness.
Theyshouldinvestinthe trainingof theirworkforce throughinstitutionsof higherlearning,conferences
and seminarsandmake sure theirknowledge andskillsare atpar withinternational standards.
Thiswill endearthemnotonlytothe governmentbutthe private sectoraswell whichhasinthe recent
past engagedthe servicesof Foreignfirmstoputup theirstructures.
INTERNATIONALEXPOSURE
Local contractors shouldbe aggressive andbidforinternational projectsinAfricaandespeciallywithin
the East AfricaCommunity(EAC) since governmentsandtrade relationshipshave improved
tremendously.Theycanalsoworkas subcontractorsto the maincontractors inthisprojects.Thiswould

6. provide goodinternational experience whichinsome casesisusuallyarequirementforsome projectsin
Kenya.
JOINTVENTURES
Local firmsshouldembrace JointVenturestoimprove theirchanceswhenbidding.Local firmshave a
probleminvitingeachothertojoininorderto boosttheirchancesat winningtenders.Thishasalways
resultedinthemalwaysfallingshortof the minimumrequirementsduringevaluation.If the locals
combinedfirms,andthisisusuallyallowedforaslongthe legal frameworkisinplace,thenlocal
contractors will getmore work.The jointventure approachwill workverywell withFinancial
Institutions,asthe mainfailure of contractorsisfinancial capability.
FINANCING
Insteadof relyingonloansfromcommercial banks,local contractorscan lookintootherwaysof
acquiringprojectfinancing.Anexampleisinvestmentfirms.Currently,twoinvestmentfirmsinKenya,
i.e.TransCenturyandCentum,are involvedinmegaenergygenerationprojects($130 million50 MW
windpowerplantanda coal poweredpowerplantrespectively) throughpartnershipswithEPC
contractors.With thiskindof partnerships,local contractorscanhave the financial capabilitytobidfor
bigprojectswithouthavingtopayhighinterestlike forcommercial loanswithstrictshortrepayment
schedules.