How can you avoid conflicts of interest in construction?

1 Identify potential conflicts

The first step to avoid conflicts of interest in construction is to identify and disclose any potential or actual conflicts that may affect your involvement in a project. This may include having a direct or indirect relationship with the owner, client, architect, engineer, or other contractor or subcontractor; having a financial interest in the project or its outcome; receiving or offering any gifts, favors, or incentives that may influence your decisions or actions; or having any personal or professional biases or preferences that may affect your objectivity or impartiality. You should disclose any potential or actual conflicts to your employer, client, or project manager as soon as possible and seek their guidance on how to resolve or manage them.

2 Follow ethical standards

The second step to avoid conflicts of interest in construction is to follow the ethical standards and codes of conduct of your profession, industry, and organization. These standards and codes may provide specific rules and principles on how to avoid, prevent, or handle conflicts of interest in construction, as well as how to report and address any violations or breaches. You should familiarize yourself with the ethical standards and codes of conduct that apply to your role and project and adhere to them at all times. You should also respect the ethical standards and codes of conduct of other parties involved in the project and report any suspected or observed misconduct or wrongdoing.

3 Maintain transparency and accountability

The third step to avoid conflicts of interest in construction is to maintain transparency and accountability throughout the project. This means that you should communicate openly and honestly with all parties involved in the project and disclose any relevant information, documents, or data that may affect the project's scope, quality, cost, schedule, or performance. You should also document and record any decisions, actions, or transactions that may raise questions or concerns about your integrity or professionalism. You should also seek feedback and input from other parties involved in the project and accept responsibility for your work and outcomes.

4 Avoid favoritism and nepotism

The fourth step to avoid conflicts of interest in construction is to avoid favoritism and nepotism in your dealings with other parties involved in the project. Favoritism and nepotism refer to giving preferential treatment or unfair advantages to someone based on their personal or family relationship, friendship, affiliation, or loyalty, rather than their merit, qualifications, or performance. Favoritism and nepotism can undermine the fairness, competitiveness, and quality of the project and create resentment, distrust, and conflict among other parties involved. Therefore, you should avoid hiring, contracting, recommending, or endorsing anyone based on their personal or family relationship, friendship, affiliation, or loyalty, and instead base your decisions on objective and transparent criteria and processes.

5 Seek independent advice or mediation

The fifth step to avoid conflicts of interest in construction is to seek independent advice or mediation if you are unsure or unable to resolve or manage a conflict of interest on your own. You may consult with a professional association, a legal counsel, an ethics committee, or a third-party mediator to help you identify, assess, and address a conflict of interest in construction. These independent sources may provide you with guidance, advice, or recommendations on how to avoid, prevent, or handle a conflict of interest in construction, as well as how to mitigate any negative impacts or consequences. You should follow their advice or recommendations and cooperate with any investigations or inquiries that may arise from a conflict of interest in construction.

6 Review and update your policies and procedures

The sixth step to avoid conflicts of interest in construction is to review and update your policies and procedures on a regular basis to ensure that they are effective, relevant, and compliant with the current standards and regulations. You should review and update your policies and procedures on conflicts of interest in construction at least once a year or whenever there are any changes or developments in your profession, industry, or organization that may affect them. You should also train and educate yourself and your staff on your policies and procedures on conflicts of interest in construction and ensure that they are understood and followed by everyone involved in your projects.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?