AIC Construction Ethics & Professional Practice 2

Question 1

Under the AIC's ethical standards, how should a constructor handle confidential project information obtained from a previous client?

Accepted Answer

Keep it strictly confidential and never use it to the detriment of the former client

Answer

Use it freely if the previous contract has ended

Answer

Disclose it only to competitors who are bidding on similar work

Answer

Share it with the new client if it would benefit the current project

Question 2

A constructor realizes mid-project that the cost will significantly exceed the original estimate. The ethical course of action is to:

Accepted Answer

Notify the client immediately with updated cost projections and cause analysis

Answer

Absorb the overrun to preserve client goodwill without disclosure

Answer

Complete the project and bill the overage as change orders after completion

Answer

Reduce material quality to stay within budget without informing the owner

Question 3

Which of the following best describes 'fee splitting' and why it is considered unethical in construction?

Accepted Answer

Paying undisclosed referral fees to secure work, which creates hidden conflicts of interest

Answer

Dividing a contract fee among multiple partners, which reduces transparency

Answer

Sharing profit with subcontractors, which undermines competitive bidding

Answer

Charging different clients different rates for the same service

Question 4

AIC members are expected to pursue continuing education primarily because:

Accepted Answer

Ongoing learning maintains the competence necessary to serve clients and the public responsibly

Answer

It is required by federal law for all contractors

Answer

It generates networking opportunities that lead to new contracts

Answer

It is the only way to maintain state contractor licensing

Question 5

In construction professional practice, 'bid shopping' after award is generally considered unethical because it:

Accepted Answer

Undermines subcontractor trust and the integrity of the competitive bidding process

Answer

Violates federal procurement regulations in all jurisdictions

Answer

Is prohibited by the AIC certification agreement

Answer

Increases project cost by creating additional administrative burden

Question 6

A constructor who provides false information on a project progress report to the owner is violating which fundamental ethical principle?

Accepted Answer

Honesty and integrity

Answer

Sustainability

Answer

Professional competence

Answer

Community responsibility

Question 7

What does the AIC's concept of 'stewardship' in professional practice primarily refer to?

Accepted Answer

Responsible use of resources, including financial, human, and environmental resources

Answer

Managing the owner's budget with strict cost controls

Answer

Maintaining accurate project documentation for audit purposes

Answer

Delegating tasks appropriately to qualified subcontractors