ENGINEERING ETHICS:

THE BIG NOTE – A HARTMAN PRODUCTION

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UNIT 1 – INTRODUCTION TO ETHICS:

WHAT A PROFESSIONAL ENGINEER IS:
To be a professional engineer, there are several pieces of criteria that must be met:

- Specialized knowledge - Ethical conduct

- Good judgement - Duty to protect the public interests
- Leadership

A profession is a self-selected and self-disciplined group of individuals who hold themselves out to the
public as possessing a special skill derived from training and education, who are also prepared to
exercise that skill in the interests of others.

There are plenty of famous Canadian engineers, and Canada is credited with some pretty impressive
inventions such as the telephone, several sub-fields of machine learning, and more. Canada is also
plagued with some very famous engineering disasters, such as the Quebec bridge collapse of 1907.

Engineering itself is often defined as the application of mathematics and science to creative and practical
uses. The professional engineers of Ontario (PEO) define professional engineering as any act of planning,
designing, composing, evaluating, advising, reporting, directing, or supervising that requires the
application of engineering principles and concerns the safeguarding of life, health, property, economic
interests, the public welfare, or the environment, or the managing of any such act. It’s important to note
that engineers must be licensed.

There are 9 different engineering disciplines:

- Civil Engineering - Mining Engineering

- Environmental Engineering - Biomedical Engineering
- Chemical and Biochemical Engineering - Electrical and Computer Engineering
- Mechanical and Materials Engineering - Software Engineering (as of 2008)
- Metallurgical Engineering

The lines are blurred often when it comes to software engineering, as many unqualified people claim to
be software engineers. This is usually overlooked, except when it comes to safety critical software
systems. A system is considered safety critical if it meets the following 3 criteria:

1. The software is used in a product that already falls within the practice of engineering
2. The use of the software poses a risk to life, health, property, or the public welfare
 3. The design or analysis requires the application of engineering principles within the software or
requires the application of the principles of engineering in its development

The professional engineers of Ontario (PEO) is a group that aims to regulate and advance the practice of
engineering to protect the public interests. They want to be the trusted leader in professional self-
regulation. PEO has 5 core values:

1. Accountability 4. Professionalism
2. Respect 5. Teamwork
3. Integrity

The professional engineers act specifies that only licensed persons may provide professional engineering
services. It defines the authority of PEO to regulate the practice of professional engineering. This
involved the establishment of the PEO council which has the authority to issue licenses and prepare
regulations (subject to review by the Attorney General and approval in law by the Lieutenant Governor).

There are 2 primary regulations to be aware of:

- Regulation 941 (with a focus on sections 72 and 77)

- Regulation 260

Regulation 941 contains the details of electing council members within the PEOs authority and
requirements to obtain licences. It also establishes, maintains, and develops the standards of knowledge
and skill among members, qualifications and practice for professional engineering, and professional
ethics. Section 72 of this regulation touches on misconduct and section 77 outlines the code of ethics.

Engineers owe duty to society and the public as they are guardians of public safety. Engineers also have
a duty to employers, employees, clients, colleagues, the engineering profession, and themselves. In
return, engineers get a high social status, respect, financial reward, and self-governance. The paramount
duty of engineers is to public welfare, and this stands above duties to clients or employers.

Engineers Canada is a group that upholds the honour, integrity, and interests of the engineering
profession by supporting consistent high standards in the regulation of engineering, encouraging the
growth of the profession in Canada, and inspiring public confidence. They have 10 core purposes:

1. Accrediting undergraduate engineering programs.

2. Facilitating and fostering working relationships between and among the regulators.
3. Providing services and tools that enable the assessment of engineering qualifications, foster
excellence in engineering practice and regulation, and facilitate mobility of practitioners within
Canada.
4. Offering national programs.
5. Advocating to the federal government.
6. Actively monitoring, researching, and advising on changes and advances that impact the
Canadian regulatory environment and the engineering profession.
7. Managing risks and opportunities associated with mobility of work and practitioners
internationally.
8. Fostering recognition of the value and contribution of the profession to society and sparking
interest in the next generation of professionals.
 9. Promoting diversity and inclusivity in the profession that reflects Canadian society.
10. Protecting any word(s), mark, design, slogan, or logo, or any literary, or other work, as the case
may be, pertaining to the engineering profession or to its objects.

The Ontario Society of Professional Engineers is yet another group with the purpose of advocacy where
members volunteer to join. Their primary role is to develop and advocate engineering solutions for
public policy in energy, engineering labour market, environment and climate change, infrastructure,
research and innovation, ring of fire (Northern Ontario), women in engineering, equity, diversity, and
inclusion.

INTRODUCTION TO ETHICS AND MORALITY:

The knowledge of ethics helps to solve real life ethical challenges with the goal of moral autonomy.
Engineers should develop a consistent way of thinking and acting rationally about ethical issues, be
empowered when confronting moral issues, and use independent moral thinking, tolerance, and duty of
care. To do this, we must first understand ethical philosophy and the history of engineering. Then we
must learn the engineering code of ethics and understand how to apply it. Lastly, we must develop good
leadership character to inform our decisions.

The ethical engineer has proficiency in recognizing moral problems and issues, using standard ethical
language, critically assessing arguments on opposing sides of moral issues, developing alternate
responses, and mitigating risks and uncertainties linked to moral decisions.

Some common ethical dilemmas are:

- Confidentiality - Intellectual property

- Conflicts of interest - Disagreement on moral reasoning and
- The spirit vs the letter of agreements interpretation
- Fiduciary (trustee) duty or responsibility

For example, in a professional setting, when does a gift become a bribe. The application of moral
principles can be vague, leading to many dilemmas.

There are four ethical theories for moral reasoning:

1. Aristotle’s virtue-based ethics 3. Locke’s right-based ethics

2. Kant’s duty-based ethics 4. Mill’s utility-based ethics

Aristotle lived from 384-322 BC and believed that happiness results from developing
virtues or qualities of character. He thought that virtues are a “golden mean”
between two extreme qualities or vices. For example, he saw courage as the golden
mean between rashness and cowardice. He proposed humans develop dispositions
on their own, which involve emotions, moral habits, and overall character.

Locke lived from 1632-1704 and created the study of “rights”. He believed individuals
have a right to be free with equal rights to life, health, liberty, and fruits of their
labor. He believed that people deserve respect, and everyone has a duty to not
infringe on the rights of others.
Kant lived from 1724-1804 and he believed the most basic good is “good will”. He
believed we should strive to develp “good will” which invovled bing honest, keeping
promises, obeying the law, being fair, etc…. He said that each person has a duty to
act in a way that is acceptable. Deontology is an ethical approach based on Kant’s
philosophy and is centered on rules and professional duties.

Mill lived from 1806-1873 and proposed the best act is the one with the highest net
benefits. He suggested that when given a choice, we should pick the option that
yields the greatest good for the greatest number of people. Essentially, we should
maximize utiltiy while minimizing suffering. This philosophy is often used in
engineering and general society.

Each philosophy has its own benefits and shortcomings, and it’s important to
consider all when making a decision. Important ethical dilemmas have different solutions when applying
the different philosophies above, making it very challenging to evaluate the actual best result.

Some internal ethical tools that can be used to help make a decision are questions you can ask yourself
when evaluating different options:

- How do I feel about this?

- What would I think about it if it happened to someone else?
- Would my family be proud of me?
- How will my boss/client react?
- Could I explain this to a judge?
- What would major news outlets say?
- How would I feel if this went viral on social media?

The Rest’s model of ethical decision making is as follows:

1. Interpret the situation (requires an awareness that the situation has an ethical component)
2. Decide what is morally right (thinking through to the ideal action)
3. Choose between moral values and other values (balancing ethics with other commitments)
4. Implement a plan of action (having the character and strength to act)

Ethics is the study of right and wrong, good and evil, obligations and rights, and social and political
ideals. Justice/equity is concerned with whether or not a decision is fair, regardless of whether or not it’s
right or ethical. Justice ensures decisions are not only ethical/right but also fair.

Equality is giving everyone the same thing, but equity is giving everyone the same opportunity. To
achieve equity, policies and procedures may result in an unequal distribution of resources.

Kohlberg was another philosopher of sorts, that introduced the levels of moral development. He
identified levels and stages of moral development to explain behaviours seen as children mature into
adults. This became known as Kohlberg’s Ethics of Justice.

- Pre-conventional (birth to ~9 years old) 3. Conformity

1. Obedience 4. Law-and-order
2. Self-interest - Post-conventional (~20+ years old)
- Conventional (~10-20 years old) 5. Social contract orientation
 6. Universal human ethics

These levels and stages can be used to understand how different groups of people think about moral
dilemmas. For example, consider Heinz’s dilemma:

A woman was near death from a special kind of cancer. There was one drug that the doctors thought
might save her. It was a form of radium that a druggist in the same town had recently discovered. The
drug was expensive to make, but the druggist was charging ten times what the drug cost him to
produce. He paid $200 for the radium and charged $2,000 for a small dose of the drug. The sick
woman's husband, Heinz, went to everyone he knew to borrow the money, but he could only collect
about $ 1,000. He told the druggist that his wife was dying and asked him to sell it cheaper or let him
pay later. But the druggist said: "No, I discovered the drug and I'm going to make money from it." Heinz
got desperate and broke into the man's store to steal the drug-for his wife. Should Heinz have broken
into the laboratory to steal the drug for his wife? Why or why not?

Using Kohlberg’s Ethics of Justice we can create the below chart analyzing the situation:

A problem with this model is that it is androcentric (and likely Western-centric). Kohlberg initially
studied only male children and adults in the USA, but later studies of female children and adults showed
differences in behaviour. Kohlberg interpreted this as females tending to stop development at the 3 rd
stage (conformity). Carol Gilligan argued women are fundamentally different than men psychologically,
and this explains the discrepancy.
UNIT 2 – THE LAW:
DISCIPLINARY POWERS AND PROCEDURES:
It is punishable by law to practice professional engineering without the proper license, and even to use a
term or title that would lead others to believe you are licensed. Fines for such offenses are in the
thousands of dollars, and you can face jail time as well.

Associations will aid the court in collecting evidence that an individual has broken the law in relation to
practicing professional engineering. There is usually a dedicated member in the association who people
can reach out to if they find someone pretending to hold the proper license, and also if someone
licensed breaks the law. The licensing Act specifies six causes for disciplinary action:

1. Professional misconduct
2. Incompetence
3. Negligence
4. Breach of the code of ethics
5. Physical or mental incapacity
6. Conviction of a serious offence

Professional misconduct is the main type of complaint made to associations. The acts can not define
every possible form of professional misconduct, so usually they contain very general clauses to cover
more niche cases. A common clause would state the professional misconduct includes anything that
would reasonably be regarded as disgraceful, dishonorable, or unprofessional.

Incompetence is a lack of knowledge, skill, or judgment that demonstrates the member is unfit to carry
out duties as a professional. You must practise within the limits of competence is judge your own
competence as you progress to more difficult tasks.

Negligence in most acts means carelessness, and generally refers to carrying out work that is below the
accepted standard or lacking adequate thoroughness. Negligence can also refer to a blatant disregard
for public welfare. Negligence is particularly important when it involves a failure to safeguard life,
health, or property. There’s a fine line between negligence and incompetence.

Breaching the code of ethics is different depending on the province’s specific code of ethics. In Ontario,
the code of ethics describes ideal professional misconduct, with a separate definition of professional
misconduct identifying the lower limit of acceptable behaviour.

Physical or mental incapacity is considered a special case of incompetence and is fairly rare. If deemed
physically or mentally incapable, the practitioner will not be allowed to practice.

Conviction of an offence includes being found guilty under other laws, and disciplinary action is taken in
such events. If a practitioner is convicted of an offence and the nature of the offence affects the person’s
suitability to practice, then the person can be found guilty of professional misconduct. Proof of the
conviction must be provided to the discipline committee. Generally the offense must demonstrate
questionable ethics on behalf of the offender to warrant disciplinary action from the committee.

Most complaints against licensed engineers come from building officials, government inspectors, or
other practitioners. However, any member of the public can make a complaint. A serious complaint
usually sets in motion a three-stage disciplinary process, where anyone involved in one stage cannot be
involved in other stages:

1. Gathering evidence
2. Investigation and review of the complaint
3. The discipline hearing

THE CANADIAN LEGAL SYSTEM:

In deciding cases, the courts apply legal principles established in previous court decisions that involved
similar or analogous fact situations. This is called the theory of precedent. The courts also dispense
equitable relief and thus there is flexibility in the court's decision-making process. At times, to slavishly
follow precedent would not reflect society's values, hence a court can exercise its equitable discretion to
reach a policy decision that may represent a departure from case precedents. The theory of precedent is
of major importance and is the basis of predictability in the legal system.

A major source of law is "judge-made law", which is court decisions establishing legal principles. In
addition to the common law or judge-made law, an extremely important source of law is legislation
which is statutes enacted by elected legislatures. A statute is a codification of the law as the legislature
determines at the time of enactment. It may be codification of existing common law or the enactment of
new law.

The Canadian Constitution divides legislative powers between the federal government and provinces,
specifying exclusive areas like trade, taxation, and property rights. The Canadian Charter of Rights and
Freedoms, a part of the Constitution Act of 1982, plays a transformative role in the legal landscape,
establishing fundamental rights and freedoms and empowering courts to invalidate statutes infringing
on these rights.

The Canadian legal system comprises the Supreme

Court of Canada, provincial Courts of Appeal, and the
Federal Court of Canada. Canadian courts often
prioritize English case precedents over U.S. common
law. This system distinguishes between public law,
governing interactions between the government and
individuals or organizations, and private law,
concerning private entities. Quebec's legal system is
unique, based on civil law, unlike the common-law
system in other Canadian provinces. Professionals
working in Quebec are advised to seek local legal
counsel.

The independence of the judiciary in Canada underpins the rule of law, ensuring equality before the law.
This system supports business by enforcing legal agreements and providing predictable dispute
resolutions.
LEGAL TERMINOLOGY:
Below is some basic terminology to be aware of:

- Litigation – A lawsuit.
- Plaintiff – In civil litigation, the party bringing the action or making the claim in the lawsuit. In
criminal matters, the “plaintiff” is usually the Crown.
- Defendant – The party defending the action, or the party against whom the claim has been
made. In criminal matters, the “defendant” is called the “accused”.
- Appellant – The party appealing the decision of a lower court, in either civil litigation or criminal
matters.
- Respondent – The party seeking to uphold a decision of the lower Court that is being appealed.
The term applies in both civil litigation and criminal matters.
- Privity of contract – Describes the legal relationship between parties to a contract.
- Creditor – A party to whom an amount is owing.
- Debtor – A party that owes an amount to a creditor.
- Indemnification – A promise to directly compensate or reimburse another party for a loss or cost
incurred. An indemnification, or “indemnity”, is similar to a guarantee; the essential difference is
that indemnity rights can be exercised directly.

ENVIRONMENTAL LAW:
Primary Legislation is handled by the Canadian Environmental Protection Act (CEPA 1999) with the goal
to prevent pollution, protect environment & human health. This places obligation on corporate officers
to take ‘reasonable measures’ to ensure compliance.

Legislation related to nuclear, energy, and water projects are outlined in the Environmental Assessment
Act (2012) which outlines requirements for major projects to be under federal jurisdiction.

The Environmental Enforcement Act (EEA 2010) consolidates enforcement regimes for protection of
flora, fauna, particular geographic areas; and enforcing the Canadian Environmental Protection Act
(CEPA).

The Indian Act governs in matters pertaining to Indian status, bands, and Indian reserves. Section 88 of
the Indian Act includes provincial laws generally applied on Reserves. This section states that licensed
engineers must follow PE Act, only license holders may hold themselves out to be licensed, and a
company (registered federally or provincially) which provides engineering services must be licensed.
Section 81 of this act outlines regulation of construction, water treatment facilities etc…. In this section
it also states an individual providing engineering services does not necessarily need to be licensed.

CEPA has the vision of environmentally sustainable economic development. Below are the key guiding
principles of CEPA:

- Sustainable Development: Protects a clean, healthy environment and a strong, healthy economy
that meets the needs of the present generation without compromising the ability of future
generations to meet their own needs.
- Pollution Prevention: Shifts the focus away from managing pollution to preventing pollution.
Pollution prevention is “the use of processes, practices, materials, products, substances or
 energy that avoid or minimize the creation of pollutants and waste and reduce the overall risk to
the environment or human health.”
- Virtual Elimination: Requires the virtual elimination of releases of persistent substances, bio-
accumulative, toxic (according to CEPA 1999 Section 64) and primarily the result of human
activities.
- Ecosystem approach: Based on natural geographic units rather than political boundaries, the
ecosystem approach recognizes the interrelationships between land, air, water, wildlife, and
human activities. It also considers environmental, social, and economic elements that affect the
environment as a whole.
- Precautionary Principle: The government’s protective actions are guided by the precautionary
principle which states that “where there are threats of serious or irreversible damage, lack of
full scientific certainty shall not be used as a reason for postponing cost-effective measures to
prevent environmental degradation”.
- Intergovernmental Cooperation: Reflects that all governments have the authority to protect the
environment and directs the federal government to endeavour to act in cooperation with
governments in Canada to ensure that federal actions are complementary to and avoid
duplication with other governments.
- National Standards: Reinforces the role of national leadership to achieve ecosystem health and
sustainable development by providing for the creation of science-based, national environmental
standards.
- Polluter Pays Principle: Embodies the principle that users and producers of pollutants and
wastes should bear the responsibility for their actions. Companies or people that pollute should
pay the costs they impose on society.
- Science-based decision-making: Emphasizes the integral role of science and traditional
aboriginal knowledge (where available) in decision-making and that social, economic, and
technical issues are to be considered in the risk management process.

Some other acts are the Transportation of Dangerous Goods Act, the Fisheries Act, and the Canada
Shipping Act. Water governance policy & legislation is shared with the United States.

PROFESSIONAL ENGINEERING ACT - ONTARIO REGULATION 941:

SECTION 72 (MISCONDUCT):
(1) In this section, “harassment” means engaging in a course of vexatious comment or conduct that
is known or ought reasonably to be known as unwelcome and that might reasonably be
regarded as interfering in a professional engineering relationship; (“harcèlement”)
“negligence” means an act or an omission in the carrying out of the work of a practitioner that
constitutes a failure to maintain the standards that a reasonable and prudent practitioner would
maintain in the circumstances. (“négligence”) R.R.O. 1990, Reg. 941, s. 72 (1); O. Reg. 657/00, s.
1 (1).
(2) For the purposes of the Act and this Regulation, “professional misconduct” means,
a. negligence,
b. failure to make reasonable provision for the safeguarding of life, health or property of a
person who may be affected by the work for which the practitioner is responsible,
c. failure to act to correct or report a situation that the practitioner believes may endanger
the safety or the welfare of the public,
d. failure to make responsible provision for complying with applicable statutes,
regulations, standards, codes, by-laws and rules in connection with work being
undertaken by or under the responsibility of the practitioner,
e. signing, dating, or sealing an engineering document, or failing to do one or more of
them, in contravention of section 53,
f. failure of a practitioner to present clearly to the practitioner’s employer the
consequences to be expected from a deviation proposed in work, if the professional
engineering judgment of the practitioner is overruled by non-technical authority in cases
where the practitioner is responsible for the technical adequacy of professional
engineering work,
g. breach of the Act or regulations, other than an action that is solely a breach of the code
of ethics,
h. undertaking work the practitioner is not competent to perform by virtue of the
practitioner’s training and experience,
i. failure to make prompt, voluntary and complete disclosure of an interest, direct or
indirect, that might in any way be, or be construed as, prejudicial to the professional
judgment of the practitioner in rendering service to the public, to an employer or to a
client, and in particular, without limiting the generality of the foregoing, carrying out any
of the following acts without making such a prior disclosure:
i. Accepting compensation in any form for a particular service from more than one
party.
ii. Submitting a tender or acting as a contractor in respect of work upon which the
practitioner may be performing as a professional engineer.
iii. Participating in the supply of material or equipment to be used by the employer
or client of the practitioner.
iv. Contracting in the practitioner’s own right to perform professional engineering
services for other than the practitioner’s employer.
v. Expressing opinions or making statements concerning matters within the
practice of professional engineering of public interest where the opinions or
statements are inspired or paid for by other interests,
j. conduct or an act relevant to the practice of professional engineering that, having
regard to all the circumstances, would reasonably be regarded by the engineering
profession as disgraceful, dishonourable, or unprofessional,
k. failure by a practitioner to abide by the terms, conditions or limitations of the
practitioner’s licence, provisional licence, limited licence, temporary licence or
certificate,
l. failure to supply documents or information requested by an investigator acting under
section 33 of the Act,
m. permitting, counselling, or assisting a person who is not a practitioner to engage in the
practice of professional engineering except as provided for in the Act or the regulations,
n. harassment. R.R.O. 1990, Reg. 941, s. 72 (2); O. Reg. 657/00, s. 1 (2); O. Reg. 13/03, s.
19; O. Reg. 837/21, s. 6.
SECTION 77 (CODE OF ETHICS):
The following is the Code of Ethics of the Association:

(1) It is the duty of a practitioner to the public, to the practitioner’s employer, to the practitioner’s
clients, to other members of the practitioner’s profession, and to the practitioner to act at all
times with,
i. fairness and loyalty to the practitioner’s associates, employer, clients, subordinates, and
employees,
ii. fidelity to public needs,
iii. devotion to high ideals of personal honour and professional integrity,
iv. knowledge of developments in the area of professional engineering relevant to any
services that are undertaken, and
v. competence in the performance of any professional engineering services that are
undertaken.
(2) A practitioner shall,
i. regard the practitioner’s duty to public welfare as paramount,
ii. endeavour at all times to enhance the public regard for the practitioner’s profession by
extending the public knowledge thereof and discouraging untrue, unfair or exaggerated
statements with respect to professional engineering,
iii. not express publicly, or while the practitioner is serving as a witness before a court,
commission or other tribunal, opinions on professional engineering matters that are not
founded on adequate knowledge and honest conviction,
iv. endeavour to keep the practitioner’s licence, temporary licence, provisional licence,
limited licence or certificate of authorization, as the case may be, permanently displayed
in the practitioner’s place of business.
(3) A practitioner shall act in professional engineering matters for the practitioner’s employer as a
faithful agent or trustee and shall regard as confidential information obtained by the
practitioner as to the business affairs, technical methods or processes of an employer and avoid
or disclose a conflict of interest that might influence the practitioner’s actions or judgment.
(4) A practitioner must disclose immediately to the practitioner’s client any interest, direct or
indirect, that might be construed as prejudicial in any way to the professional judgment of the
practitioner in rendering service to the client.
(5) A practitioner who is an employee-engineer and is contracting in the practitioner’s own name to
perform professional engineering work for other than the practitioner’s employer, must provide
the practitioner’s client with a written statement of the nature of the practitioner’s status as an
employee and the attendant limitations on the practitioner’s services to the client, must satisfy
the practitioner that the work will not conflict with the practitioner’s duty to the practitioner’s
employer, and must inform the practitioner’s employer of the work.
(6) A practitioner must co-operate in working with other professionals engaged on a project.
(7) A practitioner shall,
i. act towards other practitioners with courtesy and good faith,
ii. not accept an engagement to review the work of another practitioner for the same
employer except with the knowledge of the other practitioner or except where the
connection of the other practitioner with the work has been terminated,
iii. not maliciously injure the reputation or business of another practitioner,
 iv. not attempt to gain an advantage over other practitioners by paying or accepting a
commission in securing professional engineering work, and
v. give proper credit for engineering work, uphold the principle of adequate compensation
for engineering work, provide opportunity for professional development and
advancement of the practitioner’s associates and subordinates, and extend the
effectiveness of the profession through the interchange of engineering information and
experience.
(8) A practitioner shall maintain the honour and integrity of the practitioner’s profession and
without fear or favour expose before the proper tribunals unprofessional, dishonest or unethical
conduct by any other practitioner. R.R.O. 1990, Reg. 941, s. 77; O. Reg. 48/92, s. 1; O. Reg.
13/03, s. 21; O. Reg. 71/15, s. 24.
UNIT 3 – PEO LICENCING AND DISCIPLINE:
LEADERSHIP WHEEL:
In each dimension of the leadership wheel is a feature that
supports or complements the other features.

This wheel will frequently be used to analyze different

leaders in the course. When analyzing a leader, it’s
important to think about not only which strengths they
have, but also which weaknesses they have.

Practically no leader will have all characteristics, but the

more they have the better.

THE QUEBEC BRIDGE DISASTER:

Discussion Questions:

- What causes can you identify for the 1st bridge collapse?
o Revision to the original design to save time and costs
o Not giving enough weight to concerns raised by the workers
o Work continues after it was ordered to stop
- What leadership attribute deficiencies can you identify?
o Theodore Cooper – Lack of humility and temperance
- How has the engineering profession improved in your opinion since the 1900's?
o The use of technology has made it much easier to design and evaluate new designs
o More rigorous and thorough safety precautions taken
- Where is there still room for improvement?
o There is always room for improvement

SOFTWARE ENGINEERING TITLE:

Discussion Questions:

- Who are the key stakeholders here, and what are the main arguments?
o Association of Profession Engineers and Geoscientists of Alberta (APEGA) is suing tech
companies for using the title “software engineer” without proper licences.
o Tech companies are arguing that this is simply causing the tech companies and talent to
leave Alberta (and primarily go to the states) because they can’t stay competitive
without offering those job titles.
- The solution to this issue may not be 'binary' - what creative solutions can you imagine?
o The companies could simply change the titles they are using to better suit the role. If
they aren’t doing software engineering work then they don’t need to hire software
engineers. If they are doing software engineering work then they need the proper
licences and should be hiring qualified software engineers.
TYPES OF LICENSES:
A full license allows an engineer to offer services as an employee. A certificate of authorization is
essential if offering services directly to the public.

A limited license (LEL) is given to practitioners without an Engineering degree. This is given to
practitioners if they have a minimum 3-year degree/diploma in engineering technology or science, plus 8
years of specialized experience, and has developed competence in a certain area of professional
engineering. Practitioners with an LEL are limited to practicing only the services specified in the LEL. This
type of license is appropriate for technologists or scientists who are considered to be within the practice
of professional engineering by PEO. A holder of an LEL is allowed to work without supervision by a
professional engineer but cannot engage in independent practice.

A provisional license is given to those who satisfied the requirements for academic record and PEO
licensing (including 36 months minimum work outside of Canada) except for the minimum 12 months of
verifiable and acceptable engineering experience in Canada or in a Canadian jurisdiction, and is working
to gain it. Holders of this license must work under supervisors of a professional engineer who signs and
seals documents.

A non-resident or temporary license is issued on a project basis for a maximum period of 12 months. It
may also be issued in a disciplinary case. Professional engineers licensed in other jurisdictions may also
hold this license. A holder may decide to not obtain a full license but intend to provide engineering
services for projects in Ontario. Holders of temporary licenses must collaborate with a professional
engineer, and the collaborator must ensure that work done by temporary license holders comply with
Canadian and Ontario codes. Both practitioners should apply their seals with notes indicating their
responsibilities.

Engineering corporations are legal entities that can also be licensed. They must obtain a permit called
the Certificate of Authorization (CoA) in most Canadian jurisdictions. The primary purpose of this license
is to protect the public against incompetence, negligence, and misconduct. To obtain a CoA the
corporation must have 1 professional engineer supervising, liability insurance, and participation in
competency programs. Moonlighting without CoA is illegal in Ontario.

A consulting engineer requires a minimum of 5 years of engineering experience including 2 years of

independent work to obtain a license. Licensed consulting engineers must display technical competence,
business, and leadership skills.

A professional engineer’s seal assures the recipient that work meets the standards of professionalism
expected of competent, experienced individuals who take personal responsibility. They are not usually
required for drafts and internal documents. Use of the seal implies intimate knowledge and control of
the document. The seal is property of PEO and must be returned upon retiring or resigning from the
profession.

A certificate of authorization is essential if offering professional engineering services to the public. All
certificates of authority must name a PE who assumes responsibility. They are not required for
employees providing internal services. Corporations with a CoA must carry professional liability
insurance or disclose to clientsType equation here . the absence of it.
Consulting engineers may help design, inspect, test, and quality control for companies. They are also
often used in feasibility studies, business cases, project management, and process improvement. They
may develop inventions, file patents, and create industrial designs. Ideally consulting engineers guide
and protect the interests of the client through technical advice. They offer solutions with defined
benefits, risks, and implications. The client must make and own decisions, however. If a consulting
engineer is not licensed with a certificate of authority, then they cannot provide professional
engineering services but still provide management consulting services.

DISCIPLINE OF PRACTITIONERS:
It is an offence for an unlicensed person to practice engineering or geoscience, use an “engineer” title to
give the wrong impression that person is licensed, or use a professional seal.

Currently, there are more complaints about unlicensed practitioners than against licensed members.
Most unlicensed practitioners are unaware they are breaking the law, and can be prosecuted by courts.
Fines for unlawful use of title are $10,000 for the first offence and $25,000 for the second offence. Fine
for practicing without a license is $25,000 for the first offence and $50,000 for the second offence. You
can also get jail time in some instances.

There are 6 causes for disciplinary actions against licensed practitioners:

1. Professional misconduct
2. Incompetence
3. Negligence
4. Breach of Code of Conduct
5. Physical or Mental Incapacity
6. Convictions of Serious Offence

Complaints about licensed practitioners usually come from building officials, government inspectors,
and other practitioners.

Discipline of licensed practitioners is a 3-stage process:

- Stage 1: Gather evidence

- Stage 2: Investigation and Review of Complaint
- Stage 3: Formal Disciplinary Hearing Open to Public

There are several disciplinary penalties, and the severity is determined on a case-by-case basis:

- Revoke licence of practitioner (or Cert. of Authorization)

- Suspend licence (up to 2 years)
- Limit practitioner’s professional work by imposing restrictions
- Reprimanding, admonishing or counselling practitioner
- Publishing findings and penalty in Gazette, with or without names
- Payment for costs of investigation/hearing
- Demonstrate knowledge – course of study or/and written exams
- Impose a fine ($5,000 -$15,000)
UNIT 4 – TORT LAW, LIABILITY, AND IP:
TORT LAW, LIABILITY, AND SAFETY:
The term “tort” generally refers to a private or civil wrong or injury, one that involves negligence and
that may arise independently of contract. Torts are best understood by looking at some examples, and
by examining the principles the courts apply to determine if tort liability exists.

Tort law always involves private parties, not the crown. It is a form of civil law.

A contract is not required for tort liability. You don’t sign a contract with a taxi driver but if they crash
they can be liable in tort is the service is performed negligently.

Tort liability and liability for breach of contract can both occur, depending on the circumstances and the
terms of the contract. This is referred to as “concurrent liability in tort and contract”.

The fundamental purpose of tort law is to compensate victims of torts. In order to ensure that funds are
available to provide compensation to tort victims, engineers involved in providing design services to the
public should obtain appropriate professional liability insurance coverage. For engineers engaged as
employees in the manufacturing industries, product liability insurance may provide appropriate
protection. Advice should be taken on the appropriate form of insurance coverage from experienced risk
managers and insurance brokers.

In order to satisfy the court that compensation should be made, the plaintiff in a tort action must
substantiate that:

a) the defendant owed the plaintiff a duty of care

b) the defendant breached that duty by his or her conduct
c) the defendant's conduct caused the injury to the plaintiff

When tort principles are applied to a particular situation, reasonableness plays a major role.

A significant factor in a tort action is the establishment of the standard of care required of the
defendant. The court must apply some standard to determine whether the engineer's conduct was
negligent. The standard applied is based on the premise that engineers have a duty to use the
reasonable care and skill of engineers of ordinary competence. The "reasonable care" is measured by
applicable professional standards of the engineering profession at the time the services are performed.

Our legislators have sometimes found the application of the concept of fault inadequate for the purpose
of compensating injured parties. In products liability cases in the United States, a manufacturer may be
strictly liable for any damage that results from the use of the product even though the manufacturer
was not negligent in producing it. Canadian products-liability law has not yet adopted this "strict
liability" concept, but the law appears to be developing in that direction.

Our courts have long recognized the concept that the employer is vicariously liable for the negligent
performance of an employee. If an employee commits a tort in the course of employment, the employer
will be vicariously liable for the damage caused.

Tort liability can apply vicariously to the employer, and the employee will also be personally liable for
the tort the employee has committed. To protect its employee engineers, therefore, a corporation
providing engineering services should ensure that its professional liability insurance policy extends to
cover the liability of both the corporation and its employee engineers.

At times, torts concur to produce the same damage. It is possible for more than one party to be liable in
such a tort action. The defendants are said to be "concurrent tortfeasors."

Risk of injury is inherent in some products. A manufacturer must warn the consumer of any dangerous
potential of the product by appropriate labelling.

IP AND COMMERCIAL SOFTWARE:

INTELLECTUAL PROPERTY (IP)
The purpose of intellectual property (IP) is to encourage creativity by protecting rights of creative
people, provide an orderly way to exchange, improve creative ideas. The Canadian Intellectual Property
Office (CIPO) has a mission to contribute to Canada's innovation and economic success.

The CIPO/PTO maintain IP databases and provide guidance on IP rights protection. The World IP office
includes the Patent Cooperation Treaty that will file one application for protection in 153 countries, the
Madrid International Trademark System that will apply for protection in up to 122 countries, and the
Hague International Design System that will register up to 100 industrial designs in 90 countries.

Registered Canadian IP includes:

- Trademarks (protected for 10 years, renewable indefinitely for 10-year periods)

o Logos o Designs o Names

o Slogans o Symbols

- Patents (protected for 20 years, non-renewable)

o To patent an invention it must be something new (first of its kind in the world),
something useful, and something inventive (it must show ingenuity or creativity that
wouldn’t be obvious in your area of specialty)
- Copyrights (protected for the creator’s lifetime +70 years)

o Original written material o Paintings

o Computer programs o Artwork
o Music

o When you own the copyright, you control how your work is used in order to protect its
value. Others must buy or otherwise obtain your permission to use your work
o Generally, an original work is automatically protected by copyright the moment you
create it. By registering your copyright, you receive a certificate issued by the CIPO that
can be used in court as evidence that you own it
- Industrial designs & Integrated circuit topographies
o Registered design, appearance, and configuration of the shape, appearance, pattern,
and ornamentation
It does not include trade secrets. No legal protection is given for these other than within employment
contracts such as non-disclosure agreements.

COMMERCIAL SOFTWARE:
Engineers use software for calculations, modeling, and optimization analysis. It’s also used to provide
information as a basis for judgments and decisions.

Professional engineers are responsible for accuracy, completeness, and acceptability of all aspects of
services they provide, including information obtained using software.

All software must be purchased with suitable licenses. Piracy includes misconduct, breach of contract;
and no documents.

Protection of IP ensures critical programs and information are backed up securely. Control access
ensures controlled access to data and cyber security.

When using commercial software, choose the right software and understand its function. To do this,
define business, functional, and quality requirements. Also define architecture, hardware, and fit with
other systems. Apply engineering principles, models, algorithms, assumptions, limitations. Lastly,
consider expected user inputs, system outputs, and how they will be used.

It’s important to obtain training and support. Commercial providers must be able to explain their
software, and if not sufficient, read documentation and join user forums.

Don’t forget to test and verify inputs/outputs with standard data. This includes integration with any
other systems.

System and software configuration issues often cause problems, so be sure to pay close attention when
managing configurations.

Record which data produces what result for each software version. Verify the output data to be assured
it is reasonably correct. Also perform overall verification by analysing to what extent the software
consistently produces correct output and comparing analysis results to real (test) data whenever
possible.

Lastly, when using commercial software never forget validation. Check to what extent the outputs meet
business and customer requirements for functionality and quality.
UNIT 5 – CONTRACT LAW AND PROCUREMENT CONTRACTS:
INTRODUCTION TO CONTRACT LAW:
A contract is an agreement or promise between two parties. Parties have chosen or negotiated terms
and conditions to define the nature of the agreement.

For example, contracts are needed for property purchases, hire of services or things, assignment of
power, etc…. Courts cannot help with a bad business agreement, and they will not impose more
favorable terms.

Honesty is central to the rule of law in Canada. In 2014, the Supreme Court of Canada made a landmark
decision identifying the principle of good faith that recognizes a common-law duty to perform contracts
honestly, not to lie or mislead the other party. Other legal jurisdictions also established this duty of good
faith in contract law much earlier.

Fiduciaries have unilateral power over a beneficiary. The fiduciary duty is a heightened duty to care for
interest of a party in priority to one’s own interests. In other words, it is the duty to not act against the
interest of the other party. Fiduciaries have an obligation in circumstances involving relationships of
trust with a beneficiary. Examples include avoiding conflicts of interest, and not competing with others
by taking profits for personal gain.

Contractual relationships are created by mutual intent, where parties make particular promises to each
other. A contractual relationship is not necessarily fiduciary, and contracting parties normally have
balanced power.

Engineers who are the director of a corporation are required to act honestly and in good faith with a
view to the best interests of the corporation. Out legal system emphasizes the importance of honesty
and integrity. Fraud is a criminal offence, punishable on conviction of up to 10 years.

The purpose of contract law is to regulate the formation and enforcement of contracts. It is heavily
based on English legal tradition such as common/case law. Provinces codify particular rules such as sales
and consumer contracts.

ESSENTIAL ELEMENTS OF CONTRACT LAW:

There are 5 essential elements of contract law:

1. Offer and Acceptance

 Made by one party and accepted by another
 Agreements are generally arrived at by choice or negotiation
 Specific and agreed-upon goods or services
2. Mutual Intent
 There must be mutual intent to enter into a contract (needs to be probed)
 Parties can make or alter contracts by mutual agreement: choice
 Providing amendment fits within essential elements of offer
3. Consideration: Value Exchange
 Must be benefits to and obligations on all parties
  Parties may assign rights to another, unless contract-limited
4. Capacity
 Contracting parties must be able to keep promises they made
 Age of majority, sound mind, not incarcerated, etc.
5. Lawful Purpose
 Some contracts may be void, voidable or unenforceable
 Must not contradict ‘public order’ (ethics), or criminal law

Equitable estoppel is a legal principle where a party to a contract makes a gratuitous promise (i.e., a
promise without consideration) that they later seek to retract, potentially leaving the other party at a
disadvantage. The principle is meant to prevent unjust outcomes that could result if a party were
allowed to withdraw such a promise after the other party has relied upon it to their detriment.

LEGAL PROHIBITIONS:
Fraud is involved with property and land titles, indebtedness, leasehold, and owner interests. To avoid
fraud, it is required to employ services of a qualified lawyer to do due diligence and discover any
outstanding claims or fraud.

There are two types of false statements:

1. Fraudulent: deceived party can cancel the contract, claim compensation for reasonable costs,
and sue for damages
2. Innocent: deceived party may cancel contract, can claim only for direct costs

Duress includes intimidation, threatening or actual violence, coercion, jail, etc…. It also includes
economic duress, which is the unreasonable enforcement of others to pay.

Under influence is a term to describe one party ‘dominating’ another.

Mistakes are when parties reached an agreement, but a mistake was made. Common mistakes are
contract provisions which were agreed upon but documented inaccurately. One (or both) party can/may
apply to court for ‘order of rectification’ to fix common mistakes.

Unilateral mistakes happen if party #1 made an error in contract and party #2 insists party #1 follow the
contract. In this event, party #1 may reply with a lawsuit. Parties must not knowingly take advantage of
each other, and offerees cannot accept an offer known to be made by mistake that affects the
fundamental terms of a contract.

CONTRACT INTERPRETATION:
Contracts are interpreted according to the ‘most reasonable meaning’. Strict interpretations can be
called ‘true construction’ where the precise wording is examined and assumed to be the correct
interpretation. Liberal interpretations examine the intent of the contract.

The Contra Proferentem rule is used when ambiguous provisions are interpreted against the party that
drafted them in contract.
The Parol Evidence rule can be used when evidence outside the contract or extrinsic is not part of the
contract. This happens when terms are agreed up, but not documented. For example, verbal
agreements that occurred before the contract was written, and the agreement is not in contract. The
law cannot enforce what’s not agreed, so write it in a contract.

Reasonably implied terms do not have to be specified in writing. Examples include:

- Contractors must deliver in compliance with standards & codes

- Material and work is according to proper standard
- Materials are ‘fit for intended purpose’
- Work is carried out in ‘proper and workmanlike way’
- Work is completed within a reasonable time, no undue delay

When words have a customary or special meaning within a technical field, special meaning takes
precedence over ordinary meaning.

CLAUSES:
Bonus clauses prescribe an amount in a contract as a reward/bonus for timely completion or excellent
performance.

Penalty or “liquidated damages” clauses prescribe an amount in a contract as penalty for violation of
contractual obligations (e.g. delays, poor outcomes). The penalty must be a reasonable pre-estimate of
the amount the damage will actually cost, otherwise the court will not uphold such provisions.

Exemption clauses limit the extent of liability associated with a breach of contract. Parties decide which
‘express terms’ they wish to accept and are expected to do ‘due diligence’ and exercise ‘reasonable
competence’.

CONTRACT DISCHARGE:
Contracts can be discharged under the following conditions:

1. Performance Completed:
 All parties have completed their obligations
 Verify that work was completed according to specification
 Validate whether work meets requirements, and the customer pays for changes
 Ensure that warranty and maintenance requirements will be met
 Parties agree to discharge, and perform ‘administrative close’
2. Express Terms:
 ‘Express term’: condition under which a contract may be terminated
 Contracts may be terminated for non-performance of work, or if a party failed to
substantially comply with other conditions of contract
 However, if requirements are ‘substantially’ performed by one party, the other cannot
unilaterally terminate contract
3. Agreement-Mutual Consent:
 Parties can mutually agree to end a contract
 4. Frustration:
 Contracts may be terminated from changes in circumstances that are deemed beyond
control of parties and cannot be reasonably foreseen
 Government orders a work stoppage
 Facility no longer exists, therefore, work cannot be done
5. Force Majeure:
 ‘Force majeure’ clauses free parties from (some) obligations
 e.g. war, riot and other social strife are not under control of contractors
 Labour disputes, acts of nature, supplier delays etc… are all reasonably predictable
complications, therefore, parties can be held to their obligations
 Prudent to document ‘risk mitigation plans’ in contract

CONTRACT BREACH:
Substantial compliance is when a contractor meets most terms of contract but fails to comply with a
minor aspect. This is not a breach of contract, and the contractor is entitled to be paid contract price,
less the cost of remedying the minor aspect.

A breach is when a party fails to perform an essential requirement.

A fundamental breach is a breach that goes to root of contract and deprives innocent party of all or
substantially all of benefit of contract.

A simple breach is a breach that does not entitle innocent party to treat contract as ended or permit
innocent party to stop performing its part.

Conditions are a vital obligation, and a key clause that must be satisfied. Substantial performance is
expected.

Warranties and guarantees are not a vital obligation but are equivalent to a guarantee. Breaking a
guarantee (e.g. a service agreement) is not a breach. Guarantees are essentially a gratuitous promise
and are unenforceable, unless misleading.

In consumer law, a warranty is a promise made by a manufacturer about a product. Consumers may
demand repairs, replacement, and damages.

Repudiation is when one party refuses to perform an essential requirement. The non-defaulting party
can insist on fulfilment, discharge the contract, or ignore repudiation, in which case, contract continues.

Quantum Meruit refers to the fact that the party performing services may be paid ‘as much as is
reasonably deserved’ for time spent and materials supplied. This is especially applicable if the other
party repudiates the contract.

Damages should be obviously from result of a contract breach or be reasonably foreseen by parties
when contract was made. Otherwise, special circumstances must be disclosed.

With direct damage, the defaulting party must remedy a failure to perform (e.g., cost to rectify breach).
With indirect damage, the non-defaulting party may recoup other loss (e.g., consequential, time loss,
profit loss due to delay).
The duty to mitigate specifies that the injured party must take reasonable steps to reduce their loss.

Some equitable remedies that are enforced through the court are:

- Specific performance: courts may oblige unique tasks to be completed

- Injunction: courts may issue order for a party to stop doing something
- Courts may also ask the defaulting party to pay a specified amount to injured party (financial
judgements)

PROCUREMENT CONTRACTS:
Procurement expenditures are next to salaries/benefits in size. Therefore, effectiveness and savings are
important. They must align activities to mission. They focus on:

- Business/entity needs analysis

- Market research
- Contractor selection methods
- Negotiating
- Contract writing specific to situation
- Tendering process with flexibility in instructions to bidders

Companies must act fairly and apply a competitive tendering process.

The tendering process can be broken down into 5 steps:

1. Plan: Prepare statements of work or terms of reference. Determine the high-level cost and
schedule/approve a preliminary budget.
2. Advertise: Advertise opportunity, including required vendor qualifications. Based on vendor
replies, identify a short list of qualified vendors.
3. Request Formal Proposals: Define bid documents, which include the requirements,
specifications, and process. Invite qualified vendors to submit proposals which meet the
requirements.
4. Evaluate Vendor Proposals: Receive vendor proposals and close the bidding. Conduct technical,
quality, and cost assessment of proposals. Compare it to bid documents previously issued and
select a winning proposal.
5. Sign Contracts: Finalize negotiations and sign a contract with the selected vendor.

CONTRACT A:
“Contract A” is a concept specific to Canadian law, particularly in the context of tendering processes. It
originates from the landmark Supreme Court of Canada decision in the case of “Ron Engineering &
Construction (Eastern) Ltd. v. The Queen in Right of Ontario” (1981). This case established a legal
framework that recognizes two separate contracts in the tendering process: Contract A and Contract B.

Contract A is the contractual relationship that comes into existence between the owner (the party
issuing the tender) and each bidder the moment a bid is submitted in response to a tender call. This
means that when a company or individual submits a bid in response to a tender request, a contractual
relationship is automatically formed between the bidder and the entity that issued the tender. Contract
A outlines the obligations and conditions related to the tendering process itself, such as the bidder’s
commitment to stand by their offer for a certain period, and the owner’s obligation to evaluate all bids
fairly and in accordance with the terms set out in the tender documents.

Contract B, on the other hand, is the contract that is formed between the owner and the successful
bidder when the bid is accepted. This contract involves the actual work, goods, or services that were the
subject of the tender.

The introduction of Contract A in Canadian law serves several purposes:

- It formalizes the tendering process, providing a clear legal framework that governs the actions
and obligations of both the bidders and the tendering authority.
- It protects the integrity of the tendering process by ensuring that both parties adhere to the
rules and conditions set out in the tender documents.
- It provides a legal basis for bidders to seek remedies in cases where they believe the tendering
authority has not evaluated bids fairly or has otherwise breached the terms of Contract A.

OFFER AND ACCEPTANCE:

Irrevocable offers are promises that cannot be withdrawn by the offeror once made, typically used in
tendering processes to ensure stability and reliability in business dealings. For an offer to be irrevocable,
consideration is necessary, meaning something of value must be exchanged. This often involves
submitting bids under seal to make them binding.

Option contracts keep an offer open for a set period, allowing the offeree to accept it at their discretion
without fear of the offer being revoked. Such contracts are particularly valuable in situations requiring
due diligence or negotiation before finalizing a deal, as seen in real estate and business acquisitions.

The law establishes norms for when and how communication of offers and acceptances are considered
effective, including the use of mail and telegrams as established mediums between parties. Unlike
acceptances, revocation of offers is not effective until received by the offeree, underlining the principle
that offers must be freely and knowingly withdrawn.