January/February 2018

On Ethics: You Be The Judge
Where Does the Time Go?

The hours a PE spent working on a project leads to an ethical crux.

What Do You Think?

Would it be ethical for Hardy to charge her time for Xeriscape Inc. to the budget of Yellowwood Corp.? Was it ethical for Xavier to direct Hardy to charge her time for Xeriscape to the budget of Yellowwood?

What the Board of Ethical Review Said

The ethical obligations of professional engineers clearly go beyond merely the technical aspects of engineering practice. Those obligations extend to the professional and business aspects of engineering. Over the years, the Board of Ethical Review has considered many cases that reinforce this basic and essential point.

In this case, the Board is troubled by the invoicing practices of Wolfram Engineering. Based on the facts, there does not appear to be any justification for assigning engineering services charges attributable to work on behalf of Xeriscape to the budget of Yellowwood. Without further justification under the facts present, the Board can only assume that these charges are at a minimum a misrepresentation and could constitute fraudulent activity. It is wholly immaterial that these charges do not involve a governmental agency, or that the budgets involved do not relate to any public funds, or that it is not anticipated that the additional charges will cause Wolfram Engineering to exceed its budget with Yellowwood. Such practices are unacceptable regardless of whether they involve private clients or public agencies.

Hardy should express her strong concerns to Xavier, and if Xavier insists that she attribute her time on engineering services for Xeriscape to Yellowwood and that view is sustained within the management of Wolfram Engineering, the Board believes the guidance in BER Case 11-8 applies to these facts: If Hardy is not convinced that Xavier is operating in an ethical and legal manner, she should disassociate from Wolfram Engineering, that is resign, in order to remove her name from possible unethical and illegal actions by Wolfram Engineering. Further, Hardy must bring her concerns to the proper authorities, such as the state attorney’s office.

Conclusion

It would be unethical for Hardy to charge her time for Xeriscape to the budget of Yellowwood. It was unethical for Xavier to direct Hardy to charge her time for Xeriscape to the budget of Yellowwood.

NSPE Code References

Section II.1.d.: Engineers shall not permit the use of their name or associate in business ventures with any person or firm that they believe is engaged in fraudulent or dishonest enterprise.

Section II.3.a.: Engineers shall be objective and truthful in professional reports, statements, or testimony. They shall include all relevant and pertinent information in such reports, statements, or testimony, which should bear the date indicating when it was current.

Section II.4.: Engineers shall act for each employer or client as faithful agents or trustees.

Section II.5.: Engineers shall avoid deceptive acts.

For more information, see Case No. 14-6.