AIC Construction Ethics & Professional Practice 2 — Questions and Answers
Question 1: Under the AIC's ethical standards, how should a constructor handle confidential project information obtained from a previous client?
- Use it freely if the previous contract has ended
- Disclose it only to competitors who are bidding on similar work
- Keep it strictly confidential and never use it to the detriment of the former client (Correct answer)
- Share it with the new client if it would benefit the current project
Correct answer: Keep it strictly confidential and never use it to the detriment of the former client
Constructors are ethically obligated to maintain confidentiality of client information indefinitely, not just during the project.
Question 2: A constructor realizes mid-project that the cost will significantly exceed the original estimate. The ethical course of action is to:
- Absorb the overrun to preserve client goodwill without disclosure
- Notify the client immediately with updated cost projections and cause analysis (Correct answer)
- Complete the project and bill the overage as change orders after completion
- Reduce material quality to stay within budget without informing the owner
Correct answer: Notify the client immediately with updated cost projections and cause analysis
Transparency and timely disclosure of cost overruns is an ethical obligation; clients must be informed promptly so they can make informed decisions.
Question 3: Which of the following best describes 'fee splitting' and why it is considered unethical in construction?
- Dividing a contract fee among multiple partners, which reduces transparency
- Paying undisclosed referral fees to secure work, which creates hidden conflicts of interest (Correct answer)
- Sharing profit with subcontractors, which undermines competitive bidding
- Charging different clients different rates for the same service
Correct answer: Paying undisclosed referral fees to secure work, which creates hidden conflicts of interest
Undisclosed fee splitting creates hidden conflicts of interest and violates the principle of transparency owed to clients.
Question 4: AIC members are expected to pursue continuing education primarily because:
- It is required by federal law for all contractors
- Ongoing learning maintains the competence necessary to serve clients and the public responsibly (Correct answer)
- It generates networking opportunities that lead to new contracts
- It is the only way to maintain state contractor licensing
Correct answer: Ongoing learning maintains the competence necessary to serve clients and the public responsibly
The AIC expects members to pursue continuing education to maintain and expand the competence required to practice responsibly and ethically.
Question 5: In construction professional practice, 'bid shopping' after award is generally considered unethical because it:
- Violates federal procurement regulations in all jurisdictions
- Undermines subcontractor trust and the integrity of the competitive bidding process (Correct answer)
- Is prohibited by the AIC certification agreement
- Increases project cost by creating additional administrative burden
Correct answer: Undermines subcontractor trust and the integrity of the competitive bidding process
Bid shopping after award breaks the implicit trust of the competitive process and discourages subcontractors from submitting their best prices.
Question 6: A constructor who provides false information on a project progress report to the owner is violating which fundamental ethical principle?
- Sustainability
- Honesty and integrity (Correct answer)
- Professional competence
- Community responsibility
Correct answer: Honesty and integrity
Providing false information directly violates the core ethical principle of honesty and integrity that underpins all professional relationships.
Question 7: What does the AIC's concept of 'stewardship' in professional practice primarily refer to?
- Managing the owner's budget with strict cost controls
- Responsible use of resources, including financial, human, and environmental resources (Correct answer)
- Maintaining accurate project documentation for audit purposes
- Delegating tasks appropriately to qualified subcontractors
Correct answer: Responsible use of resources, including financial, human, and environmental resources
Stewardship in AIC professional practice encompasses responsible management of all resources — financial, human, material, and environmental — entrusted to the constructor.
AIC Construction Ethics & Professional Practice 2
Under the AIC's ethical standards, how should a constructor handle confidential project information obtained from a previous client?