To decide whether ‘contingency fee’ practice may be allowed or not, the potential gains should be weighed against the potential losses. Hence, this again calls for contextual reasoning based on ethical theories, which provide a framework for assessing morally relevant issues of the problem.
NSPE has addressed this issue as follows: “An engineer shall not request, propose, or accept a professional commission on a contingent basis under circumstances in which his professional judgement may be compromised, or when a contingency provision is used as a device for promoting or securing a professional commission.”
Contingency fee is dependent on some specific conditions beyond normal, satisfactory performance in work. • A client may hire a consultant engineer to find methods of cost saving on an ongoing project to save a minimum of 10%. If consultant saves 10%, he will get his fee; otherwise no fee will be paid. The fee can…
Consulting engineers, in the absence of competitive bidding can be selected only based on their reputation and proven qualification. But younger, competent engineers may be disadvantaged by this method.
Competitive bidding was prohibited for quite some time due to the following reasons: Consulting jobs, unlike industrial and construction work, are not suitable for precise cost estimates and hence precise bids. Here competitive bidding, would encourage cutting safety and quality, in case of lower bids and padding/over designing in the case of higher bids. Later,…
• Generally consumer products can be advertised suppressing the negative aspects and even some exaggeration is allowed. • But advertisement of professional services like engineering services is governed by strict norms. NSPE forbids the following: “the use of statements containing a material misrepresentation of fact or omitting a material fact necessary to keep the statement from being…
Example 1: A consulting firm played actually a very minor role in a well-known project Situation 1: Its brochure claims that it played a major role Situation 2: It makes no claim but only shows the picture of the project Situation 3: It shows the picture along with a footnote in fine print the true details about its role…
Before 1976, advertising was thought to be ‘unprofessional’, in U.S.A. The state felt that work should be won through reputation as engineer and not through advertisement. But in 1976, Supreme Court ruled that Ban on professional advertising is an improper restraint It reduces public awareness of available professional services They keep prices…
1. Advertising 2. Competitive bidding 3. Contingency fees 4. Safety and client needs
• Consulting engineers work in private practice. • They earn by getting their fee for services rendered. • They have greater freedom in decision making compared to salaried employees. • But they also have a need to earn a living.