Exercise I

Question No. 1
What do you understand by the term “Professional Ethics” in general and as applied to
construction engineering in particular. Discuss in detail the principles and amplify your
response with cases in Addis Ababa.
The term “Professional Ethics” refers to the ethical principles and standards that govern the
behavior and decisions of professionals in their specific fields. These principles and standards are
established to ensure that professionals act with integrity, honesty, and accountability while
providing services to their clients, customers, the public or stakeholders. It is typically codified in
a code of ethics, which is a document that outlines the specific rules and principles that members
of a profession are expected to follow. A code of ethics is usually a written document produced by
a professional association, occupational regulatory body, or other professional body with the stated
aim of guiding the practitioners who are members, protecting service users and safeguarding the
reputation of the profession. Professional ethics cover a wide range of professions, including
medicine, law, engineering, accounting, teaching, and others. Each profession has its own set of
ethical standards that are designed to guide the behavior of its members. It is also a shared process
of critical reflection upon our obligation as professionals. Ethical codes communicate a
profession’s distinctive responsibilities and relationships, both among practitioners and between
practitioners and society. The main objectives of professional ethics are protection of the public,
promotion of professional values, maintenance of professional standards, prevention of unethical
behavior and accountability. It is important to ensure responsible and ethical behavior, promote
trust and credibility, encourage ethical decision-making, foster a positive work environment and
promote social responsibility. Therefore, professional ethics is essential for the safety and well-
being of the public.
Engineering ethics are principles and guidelines engineers follow to ensure their decision-making
is aligned with their obligations to the public, their clients, and the industry. Construction
Engineers have a special responsibility to uphold professional ethics because their work can have
a significant impact on public health and safety. Trust is required between engineers and the public,
which is why it’s crucial for understanding the importance of acting ethically. The ethics that
matter in engineering are promotes safety, enhances quality, improves public opinion, safeguards
the company’s interests, fosters sustainability, protects other engineers and secures company
assets.

1
Construction professionals should be familiar with these principles and practicing them on daily
basis as they serve as guidance to avoid potential gray areas when one makes a decision. All the
construction professionals would face a situation that involves almost always moral and ethical
decisions. For example, if a construction engineer designs a building that is not up to code, the
building could collapse and injure or kill people. As a result, construction engineers are expected
to adhere to a higher standard of ethical conduct than other professionals

Practices of professional ethics in Addis Ababa- The construction industry in Addis Ababa,
Ethiopia, is characterized by a number of professional ethics issues. These issues can have a
significant impact on the quality, safety, and cost of construction projects. There are several high
profile cases of professional ethics violations in the construction industry in Addis Ababa in recent
years. Some of the most cases include:
• The collapse of several buildings in the city centre, which killed many people. The collapse
was the result of under quality construction practices and a failure to follow safety codes.
• The demolishing of residents and commercial centres of Addis Ababa to make way of
development are carried out without adequate notice or compensation, many residents are
left homeless.
• Corruption is one of the most common ethical issues in the construction industry in Addis
Ababa. This can include bribery, kickbacks, and other forms of corrupt practices.
Corruption can lead to a number of problems, including substandard construction, inflated
costs, and delays.
• Conflict of interest is another ethical issue that can affect construction projects in Addis
Ababa. This can occur when a construction professional has a personal or financial interest
in a project that could influence their decision-making. Conflict of interest can lead to a
number of problems, including unfair bidding practices, conflicts of interest, and nepotism.
• Negligence is also a common ethical issue in the construction industry in Addis Ababa.
This can occur when a construction professional fails to exercise the proper care and skill
in their work. Negligence can lead to a number of problems, including accidents, injuries,
and deaths.
• Falsification of documents is another ethical issue that can occur in the construction
industry in Addis Ababa. This can involve falsifying inspection reports, invoices, or other
documents. Falsification of documents can lead to a number of problems, including fraud,
legal liability, and damage to reputation.
• Failure to follow safety procedures is also a common ethical issue in the construction
industry in Addis Ababa. This can lead to a number of problems, including accidents,
injuries, and deaths.

2
These are just a few of the professional ethics issues that can affect construction projects in Addis
Ababa. It is important for all construction professionals to be aware of these issues and to take
steps to avoid them. There are a number of things that construction professionals can do to promote
ethical practice, including:

✓ Educating themselves about the Ethiopian Code of Ethics for Construction Professionals
✓ Identifying and reporting ethical violations
✓ Refusing to engage in unethical behavior
✓ Supporting organizations that promote ethical practice

By taking these steps, construction professionals can help to ensure that construction projects in
Addis Ababa are conducted in an ethical and responsible manner.

3
Question No. 2
In a form of matrix, list and discuss the role of each party in a construction industry at
different stages in construction.

Stage of Party Role Discussion

Construction
• Defines project requirements The client is the owner of the
Client • Define project scope project and has the ultimate
• Develops project budget authority over the project's
• Selects a project manager scope, objectives, and
Feasibility budget.
Study • Provide professional advice on Consultants are hired by the
Consultant design, engineering, and other client to provide professional
aspects of the project advice on design,
engineering, and other
aspects of the project.
• Provides input on design The main duties of the client
• Reviews and approves design on all construction projects
documents are to ensure that suitable
management arrangements
are made for the project
Design Client Select & appoint a
competent and
resourced Principal
Designer.
• Develop architectural
drawings Architects & Engineers are
Consultant • Develop engineering drawings responsible for the design
and specifications of the building or
• Preparation of tender structure's systems, such as
documents the structural, mechanical,
• Ensuring compliance with and electrical systems.
building codes and regulations

• Issues procurement The client is responsible to

Client documents, select a quality-based
Procurement
• Evaluates bids contractor.
• Awards a contractor.

4
 • preparation of technical The consultant is
Consultant documents for responsible for the
procurement/tenders preparation of tender
documents.
Contractor • Preparing bid price Understanding the tender
• Preparing a tender submission documents Contractors must
• Provide a quotation for the carefully read and
project and prepare a
understand all of the tender
construction methodology
documents, including the
drawings, specifications, and
conditions of contract.

• Manages construction The role and responsibilities

activities of the client are particularly
Client • Insure the safety of workers crucial in ensuring the
involved in the construction overall safety and successful
execution of the project.
Construction • Ensuring job site is safe The Consultant helps
and all work is being develop a schedule,
performed correctly oversee
• Monitoring job site performance/execution,
quality requirements. attend meetings and
Consultant • Tracking daily activities manage the flow of
against the project information – both to the
schedule. field from the office, as
• Documenting unknowns well as from the office
or unexpected delays. to the field, just like
• Making sure design Project Managers.
details are built properly.
• Determining means,
methods and
constructability.
• Overseeing field workers
and onsite subcontractors.
• Hiring and firing field
crews as needed.

5
 • Execute the construction work The contractor is responsible
according to the plans and for the physical execution of
specifications the construction project. The
Contractor • Preparing construction plans principal contractor
and schedules coordinates and manages all
• Managing subcontractors and construction activities.
tradespeople
• Ensuring compliance with
safety regulations and building
codes
• Quality control and
inspections
• Managing project
documentation and records

Commissionin Client • Provides feedback on the The client is responsible for

g project, makes any necessary inspecting the completed
changes, and takes ownership work and providing
of the project. feedback to the contractor.
Consultant • Acceptance of Works Commissioning
• Commissioning of systems documentation is defined
• resolution of final account and prepared in advance of
• Checking the functionality of the commissioning phase.
any work
Contractor • Complete construction work The contractor is responsible
and ensure that all systems are for completing the
functioning properly construction work and
• Carries out commissioning ensuring that all systems are
activities, trains end users, and functioning properly before
hands over the project to the handing over the project to
client. the client.
• Maintain the building or The client is responsible for
Client structure in good working maintaining the building or
order structure in good working
Maintenance order.
• Provide warranty services Contractors may provide
Contractor warranty services to the
client for a period of time
after the project is
completed.

6
Question No. 3
Sketch and discuss alternative administrative structures (at least two) of a medium level
consultancy firms indicating the required competency in general or specific engagements.

Organizational Structures in general

An organizational structure is a system for accomplishing and connecting the activities that
occur within a work organization. People rely on structures to know what work they should do,
how their work supports or relies on other employees, and how these work activities fulfill the
purpose of the organization itself. An administrative organizational structure is also a typically
hierarchical arrangement of lines of authority. It determines how the roles, power, and
responsibilities are assigned, and how the work process flows among different management levels.
There are many benefits to creating an organizational structure that aligns with the company’s
operations, goals and objectives. Clearly disseminate this information to employees that provides
accountability, clarifies expectations, documents criteria for promotion, designates decision-
making authority, creates efficiency and fosters collaboration.
The organizational structure of the company is important for determining how the business
functions. Someone alternative organizational structures are discussed as follows.

Traditional Hierarchy
A traditional hierarchical organizational structure has centralized decision-making and a rigid
structure of controls, authorizations and approvals at the executive level. It is the company
structure that is most people will find most familiar. It's a typical command and control pyramid
structure, with information and decisions flowing top-down. This structure is efficient because
everything is decided centrally and little coordination is necessary. It is suitable for stable
business environments and highly regulated businesses where particular outcomes are required.
When markets change rapidly, the hierarchically organized business can't adapt quickly because
the working level has no authority to make changes. If the business environment is unpredictable,
an alternative structure with more flexibility can mean better performance.

Departmental
Departmental units with centralized decision-making can act more autonomously than in a pure
hierarchy. A typical basis for such organization is by function, such as departments for finance,
customer service, operations and marketing. Other possibilities include geographical, product -
related or market-based departments. Department-centered organizations are more flexible than
hierarchies because they make decisions closer to the working level, but upper management must
coordinate the work between the departments.

7
Matrix
A matrix organization combines the advantages of the hierarchy and departmentalized structure.
Employees report to a department boss for work-related matters and to a corporate boss for
discipline, salary, promotions and company-wide policies. The employees can make work-
related decisions with their department manager, quickly responding to customers and the
markets. The company keeps the control and coordination functions it needs at the upper
management level. Such an organizational structure lets you retain tight control of business
outcomes while introducing some ability to react to market changes.

Project/Team
A project-based organizational structure places most of the decision-making at the working level.
Work is organized around teams that receive specific and time-limited objectives. If you need to
introduce a new product, it becomes a project for a team. If sales are below target, a team receives
the job of increasing sales to projected levels. The projects making up the company organization
exactly reflect what is happening in the company's markets. The projects change as the business
requirements change. You have reduced control but a high customer and market focus. This type
of organizational structure performs better than other types in a rapidly changing business
environment.

8
 1. Spring Consulting Architects & Engineers
Spring Consulting Architects and Engineers is a Category- I Ethiopian based firm offering a range
of services in Engineering, Architectural and related services. The firm was established in 2009
and currently its head office is located in Addis Ababa, around Gurd Shola in front of Century
Mall, at Mercy Plaza Building 10th floor. The consulting office primary objectives is providing
multi-disciplinary consulting services to the public as well as the private firms engaged in the
development of various types of economic and social buildings and infrastructures. The Firm has
the capacity to undertake such tasks as engineering services including design, supervision and
contract administration of building and infrastructure works. It also provides services including
surveying, structural and environmental studies.
The organizational chart is below for further details.

General Manager

Secretary

Design Team Tender & Administrative/ Construction

Leader Procurement Team Supervision Team
Supportive Staff Team
Architects
Specification &
Accountant Contract
Qty Surveyor
Administrator
Structural
Engineers
Cost Estimator Driver Project
Coordinator
Electrical
Engineers
Cleaner Resident
Sanitary Engineer
Engineers
Runner
Assi. Resident
CAD/ Engineer
Draftsman

Per time
Mechanical,
Geotechnical,
Highway
Engineers&
9
Surveyors
 Spring Consulting Architects & Engineers Administrative Structure
2. Jdaw Consulting Architects and Engineers
Jdaw consulting arctitects and engineers a multidisciplinary company established in April 2000
providing professional services in wide range of civil engineering works government, non-
government, private sector customers. Its head office is located in Addis Ababa, Bole sub city
around Wello Sefer at Mina Building 8th floor. The services provided by JDAW consist of
Schematic Design, Design Development, Construction Documents preparations, Construction
Administration and supervision, Building Design, Interior Design, Landscape Design, Road and
Bridge Design.
The organizational chart is below for further details.

General Manager

Technical
Manager

Executive
Secretary

Design Construction Administrative/

Contract Supervision
Administration Department Supportive Staff
Department
& Preparation Team
Department
Resident
Casher
CAD Architectural Engineer
Contract Engineers Team
Administrator Team
Structural Site Engineers
Treasurer
Specification Laboratory Engineers
& Qty Technicians Team
Surveyor Team Office
Team Electrical Engineers Case Executive
Engineers
Highway &
Team
Cost Surveyors
Estimation Drivers
Team Sanitary
Engineers
Team
10
Question No. 4
Sketch and discuss alternative administrative structures of Grade I General contractors (at
least one local and one international contractors) engaged in numerous projects in Ethiopia.

1. FE CONSTRUCTION PLC
FE Construction PLCis a Building Contractor and an Ethiopian construction company with a total
capability across the spectrum of building and civil engineering construction works, including
Design and Supervision works (turnkey project). Currently its head office is located in Addis
Ababa, Lemi Kura sub city, Woreda 10. It is a full service general construction firm established in
2000EC. It is specializing in building & related works construction. Its service range is typically
throughout Ethiopia. Occasionally, it ventures even further depending on the type of work and the
client.
Staff: - The Construction Company is engineering driven and believes that management is about
getting the right people for the particular task.
Human Resource key Management Staff and Organizational Structure

The work force consists of project managers, project coordinators, site superintendents,
engineers, technicians, accountants, and administrators. All employees work full time. The
employees at FE Construction are well educated. In 2023, 12 percent had masters of Science
degree, 55 percent had bachelor degree, and the rest had university diploma, certificates, and
College graduates. The company is very aware of the importance of training and education and
provides about 30Hrs of training per employee each year. In the end of last budgeted year June
30, 2015 E.C, the company spent 75,000Birr on employee training on Kaizen based stock
management system for all projects and head office logistic officials and project store keepers,
computer based construction site management for head office engineers, Project planning and
monitoring technique for project office engineers. Although not a stated policy, the company will
consider paying the tuition of employees pursuing a degree or masters in a work-related subject
at recognized institution.
The organizational administrative style of FE construction is typically somewhat matrix-based,
meaning that there is a shared responsibility for project management between the project engineers
and the contractor. This approach can be effective in ensuring that both parties are working towards
the same goals and that there is clear communication and accountability. The matrix-based
organizational structure can be effective in FE construction because it allows for a balance of
expertise and experience. The project engineers bring their technical expertise to the table, while
the contractor brings their experience in construction methods and logistics.

11
 The organizational chart is below for further details.

General Manager

Chief Executive ICT

Secretary

Internal Auditor Legal Advisor

Construction Contract Plant & Equipment Finance Human Resource

Operation Administration Department Department Department
Department Department
Production & plant Disbursement Human
Building Bid Management & Accounting Resource
Construction Preparation Department Administration
Program Equipment
Coordination Planning & Operation Procurement Safety, Health
Monitoring & Supply & Environment
Road Construction Equipment
Program Payment Maintenance
Coordination Follow-up
&
Water Collection
Construction Design
Program Department
Coordination

Project Closing
FE CONSTRUCTION PLC Administrative Structure

12
 2. China Jiangsu International Economic & Technical Cooperation Group, Ltd.
China Jiangsu International Economic and Technical Cooperation Group, LTD (CJI) was founded
in Dec. 1980 in Jiangsu. CJI’s portfolio encompasses construction engineering and consulting,
project management, real estate development, import/export, and labor supply services. CJI
provides engineering services designs housing engineering, municipal public works, civil air
defense works, protective engineering, and other engineering. CJI has been carrying out
constructions in many African countries including Ethiopia. CJI are undertaking the construction
of Adwa museum center, a Project which commemorates the Victory of Adwa, to be built in the
center of Piassa adjacent to Menelik II Square, comprised of museum, a 2000-seater conference
hall, cinema hall, library, gymnasium, a 600-car capacity parking space, green areas, and
cafeterias. CJI is also constructing a new head office building of the Supreme Court of Oromia.
In the context of Ethiopian construction, CJI's centralized structure has both advantages and
disadvantages. On the one hand, it allows the company to effectively manage its large and complex
projects. On the other hand, it can make it difficult to respond quickly to local market conditions
and customer needs.
Here are some specific examples of how CJI's organizational structure manifests itself in its
Ethiopian construction projects:
• Top-down decision-making: Major project decisions are typically made by senior management
in China, with limited input from local staff. This can sometimes lead to decisions that are not
well-suited to the Ethiopian context.
• Rigid management hierarchy: There is a clear hierarchy of authority within CJI, with strict
reporting relationships. This can make it difficult for local staff to raise concerns or suggest
new ideas.
• Emphasis on standardization: CJI has a strong emphasis on standardization, both in terms of
construction methods and management practices. This can help to ensure consistency and
quality across projects, but it can also stifle innovation.
Despite these challenges, CJI's organizational structure has also been a source of strength in
Ethiopia. The company's centralized decision-making has allowed it to effectively manage large
and complex projects, and its emphasis on standardization has helped to ensure the quality of its
work. Overall, CJI's organizational structure is a mixed bag in the context of Ethiopian
construction. It has both advantages and disadvantages, and the company's ability to succeed in
Ethiopia will depend on its ability to strike a balance between centralized control and local
flexibility.

13
 The organizational chart is below for further details.

Board of Board of CCP Committee

Supervisors Directors

Strategy & Investment

Committee

Finance & Budget

Trade Union
Youth League
Committee

Directors
Board of
Remuneration &
Examination Committee

Audit Committee

CPP Committee Office

(BOD Office)

General Manager
General Manager Office

Human Resource Dept.

Finance Dept.

Planning & Investment General Contracting

Dept. Business Dept.
Functional Departments

Special Institutions

Production & Operation

Dept.

Quality & Safety Dept.

ICT Culture
Overseas Business Dept.

Trade Dept.

Audit Dept.

Discipline Inspection &

Supervision Office

Law Dept. Branch Companies Subsidiary Companies Overseas Branches & Offices

14
Question No. 5
Sketch and discuss a typical public institution engineering department administrative
structure (Client Representative) and comment on: accountability, communication,
effectiveness, manpower,
The main objectives of the Federal prison Commission is to admit and ward prisoners, and provide
them with reformative and rehabilitative service in order to enable them make attitudinal and
behavioral changes, and become law abiding peaceful and productive citizens. FPC is constructing
building facilities like dormitories, Elementary Schools, and TVET Schools, different workshops
that provide various services in order to improve the rights of prisoners and enable them to have
skills to contribute for themselves and society better when they leave the prison. The project office
has organized to control these projects quality and budget. There are six Civil Engineers and one
secretary in the project office. The project office is responsible for overseeing all aspects of the
projects work, from project planning and execution to budget management and quality control. It
is accountable to the institution's Vice Commissioner General of Basic Needs, as well as to the
Commissioner General. Even if, the project office should ensure that the projects are completed
on time, within budget, and to a high standard of quality, the projects were not completed on time
and their initial budgets. The project office is carrying out its work by having a good relationship
with the heads of the FPC, the consulting firm and the contractors.
Project Office Administrative Structure
Commissioner
General of FPC

Vice
Commissioner
General of FPC
Basic Needs

Project
Coordinator

Secretary

Contract Construction
Administration Supervision Team
Team

Contract
Site Engineers
Engineer
15
Office
Engineers
References
1. Albert Lester, Project Management, Planning and Control, Seventh Edition.

2. Joseph Heagney, Fundamentals of Project Management, Fourth Edition.

3. Different Websites

16