The code of ethics and what it means for you – Part 3

Codewords 117: February 2024

The code of ethics (COE) applies to all LBPs regardless of whether they are an employer, a contractor, or working for wages. As an LBP carrying out building or alteration work, you risk having a complaint made against you if you do not behave professionally.

The Building Practitioners Board (the Board) noted in a recent complaint decision (CB26224) that the COE differentiates between LBPs who are in business and those who are employed. Employed LBPs are unlikely to be involved in certain affairs, for example pricing work or running a business, and their obligation is limited to the instructions of their employer.

[Omitted] [2023] BPB CB26224 – Board Decision

The following 7 standards which make up Principle 4 come down to the things most LBPs understand and adhere to, whether they are employed or use as the foundation in their own business.

Behave professionally

When carrying out or supervising building work, you must act professionally and treat the clients and your colleagues with respect.

Act in good faith during dispute resolution

If there is a dispute between you and your client, you should attempt to resolve it and be available to discuss it with them so that all parties can express their views and be heard. You must be respectful and act in a professional manner at all times during the process.

In the Board decision referred to above, the LBP was abusive and threatening towards the clients. The clients were so intimidated that they increased security measures at their home and made a complaint to the police.

You must price work fairly and reasonably

You must not use inappropriate methods to win a contract, including accepting or paying bribes. Do not quote unrealistically low prices just to get the job and then add extras to make up costs once the work is underway.

If any issues arise during the work which will cause additional costs, you need to let the client know and get their agreement before those costs are incurred.

For example, you may find soft ground during foundation excavations that would need an Engineer to investigate. This would lead to additional costs, so you must let the client know so that they can make an informed decision.

Declare and manage actual or potential conflicts of interest appropriately

A conflict of interest exists when you, your whānau, or company have a personal or financial connection which may adversely affect your professional judgement or actions.

This is not to say you cannot do the job, but it is important to declare it to an appropriate person, such as the client, and manage those conflicts appropriately.

For example, an LBP has bought materials from a company owned by his brother, knowing he will receive some perks further down the track. However, the quote he provided to his client said he would buy the materials from the company the client stipulated based on their ethical and sustainability standards. He does not tell the client he has done this. The LBP has left himself open to a complaint to the Board.

Maintain confidentiality of client details unless there is good reason for sharing information

If you become aware of a client’s confidential information, you must take all reasonable steps to keep that information confidential, unless you are legally required or authorised to disclose it.

This could include seeing a private document which the client inadvertently left in plain view.

Acknowledge and respect the cultural norms and values of your clients and colleagues

Make sure you act in a way that is respectful of the cultures and values of your clients and workmates and make an effort not to intentionally cause offence to others.

Conduct your business in a methodical and responsible manner

If you run your own business, make sure you maintain accurate accounts and records. Ensure the way you operate is honest, fair, and professional.

Charging the client for an item a second time because your records are not up to date will not improve their confidence in your business practices.

Summary

The COE upholds the integrity of the licensing regime to protect the public and maintain their confidence in LBPs.

The COE is not designed to catch people out. It is a plain language document that sets out the level of ethical behaviour expected of LBPs.

Further information on the COE is available on MBIE’s LBP website. This includes resources to support your understanding of the COE. The resources include a detailed guidance document, a poster (including in te reo Māori, Chinese (simplified), Hindi, and Samoan) and an online learning module which can be claimed as a skills maintenance point once completed.

Further information about the code of ethics

Code of ethics resources

Quiz

1. Is it ok to provide a low quote just to get the job, with the intention of adding on extras during the work to make up the costs?

1. Yes, I have no work and must keep my employees busy
2. Only if I know the client can afford it
3. No, this is dishonest conduct, and may result in a complaint against you

2. What is a conflict of interest?

1. A disagreement with your client
2. Where a potential personal gain may affect your professional judgement or actions
3. Wondering whether to go to work today or go fishing

3. Is it ok to make fun of your workmate’s culture?

1. No, you must act in a way that is respectful of your workmates’ culture.
2. Yes, it's only fun and we do it all the time
3. It's ok if your workmate is out of earshot.