---
title: Conflicts of Interest in the Design Profession: What You Need to Know by DESIGNPRO Insurance Group
---

# Conflicts of Interest in the Design Profession: What You Need to Know

## from DESIGNPRO Insurance Group

## Conflicts of Interest in the Design Profession: What You Need to Know

- Posted on Thursday, February 1, 2024

“Rule of Thumb” regarding conflicts of interest—in any place in our world, including the design and construction industry, avoid even the appearance of impropriety. This rule is probably the best and most universal rule. A conflict of interest occurs when an individual's personal interests, such as family, friendships, financial, or social factors could compromise a person’s judgment, decisions, or actions in the workplace. Conflicts of interest are a clash that most often occurs between requirements and interests. Various types of conflicts of interest can occur because of the nature of relationships versus rules of organizations.

Consider these two well thought-out professional association rules for the design professions.

Conflicts of interest occur in every way in our business world—in medicine, law, government, and the design professions too.

**CONFLICTS OF INTEREST 101 – WHAT THEY ARE AND HOW TO AVOID THEM?**
[https://www.qualitygurus.com/c...](https://www.qualitygurus.com/conflict-of-interest-101-what-they-are-and-how-to-avoid-them/)

To understand it better, let's split this topic into three broad categories of conflict of interest: actual, potential, and perceived.

**1. Actual Conflict of Interest**
Actual conflicts of interest are those where a person or business has an immediate personal stake in the outcome of decision making. This means that they are directly impacted financially by the decisions made.
Examples of actual conflicts of interest include:
a. An attorney who represents both sides of a case;
b. A law firm where the partner works both for a client and for themselves;
c. A government official who lobbies on behalf of a company that they regulate;
d. A journalist who writes positively about companies whose stock they invested in;
e. A purchasing manager who purchases supplies from vendors which their family owns; or
f. A financial advisor who knowingly advises customers to buy investments that aren't in their best interests.

**2. Potential Conflicts of Interest**
Potential conflict of interest occurs when a person does not have any direct financial impact from the outcome of a decision but could be affected indirectly as a result of what happens.
Examples of potential conflicts of interest may include:
a. A judge who does not recuse himself from cases involving parties which they personally support;
b. An attorney who was formerly employed by one side but now represents the opposing side; or
c. A quality manager of the company who audits products manufactured by their previous company.

**3. Perceived Conflict of Interest**
Perceived conflicts of interest arise when people believe a possible conflict exists even though it might not exist. In some cases, these perceptions can become so strong that they actually affect how people act.
Examples of perceived conflicts of interest may include:
a. A person who thinks there is corruption at work simply because they cannot understand why certain decisions were made; or
b. A person who believes they are being cheated just based upon rumors heard through gossip.

**EXAMPLES OF “CONFLICTS OF INTERESTS” ETHICAL DECISIONS**

At the expense of taking up too much space in this risk management article, copied below is an excerpt from the alphabetical list of ethical decisions by the engineering Board of Ethical Review (“BER”) through 2020 (only “A” through the letter “C”). Without question, it can be seen in this list from the National Society of Professional’s Engineers Ethics Reference Guide that the topic of “conflicts of interest” in ethical cases outnumber the other topics by the BER.

Professional engineers (and architects) often find themselves involved with and representing multiple organizational interests in their professional activities, and this can give rise to organizational conflicts of interest. Conflicts of interest are the most prevalent ethical concerns facing engineering practitioners. Over the years, the BER has considered numerous cases involving engineers who have interests in conflict with the interests of clients, employees, or other engineers. At one time, the NSPE Code of Ethics specifically prohibited engineers from becoming involved in cases or situations in which a conflict of interest was present. BER Case 20-3.

* * *

_ **About the Author of this Risk Management Building Block Article**
As a risk manager for the last 18 years for the design profession, Eric has experience in professional liability insurance and claims, architecture, engineering, land use, law, and a unique background in the construction industry. Prior to risk management, he has 25 years of experience in the practice of architecture/engineering, and as an adjunct professor teaching professional practice courses at the undergraduate and graduate levels for the last 35 years at Kent State University’s College of Architecture & Environmental Design.
As a Fellow of the American Institute of Architects and AIA National Ethics Council 2021 Chair, he has demonstrated his impact on architectural profession. He has presented numerous loss prevention and continuing educational programs to design professionals since 2000 on topics of ethics, contracts, and professional practice in various venues across the United States and Canada. He is a former member and chair of his city’s Board of Zoning & Building Appeals for 24 years, and is a licensed architect, attorney, and property & casualty insurance professional.
His educational background includes a JD from Southwestern University School of Law, Los Angeles; Master of Science in Architecture from University of Cincinnati; and BA in psychology/architecture from Miami University, Oxford, Ohio.
The above comments are based upon DesignPro Insurance Group’s experience with Risk Management Loss Prevention activities and should not be construed to represent a determination of legal issues but are offered for general guidance with respect to your own risk management and loss prevention. The above comments do not replace your need for you to rely on your counsel for advice and a legal review, since every project and circumstance differs from every other set of facts.
Disclaimer: The viewpoints expressed in this article are those of the author(s) and are not necessarily approved by, reflective of or edited by other individuals, groups, or institutions. This article is an expression by the author(s) to generate discussion and interest in this topic._

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