Provide same service for competing clients 1

[photoengineer]

As a consultant, is there anything unethical about providing the same engineering service (as a professional engineer) to two clients that work in competition to one another?

I do not have any proprietary data from the client that I am currently working with. They have not provided training for the work that I do or otherwise invested in my professional skills. I can't think of a good reason why I shouldn't provide the same service to another client.

However, I'm not thinking that they would be very pleased if they found out I was also working for a competitior.

Thoughts?

 

[FeX32]

If they pursue your service there is nothing unethical about it. Unless you prefer one or leak info from one to another.



Fe

 

[lacajun]

The large engineering firms provide the same services to competing companies.

 

[patprimmer]

I would think if your anti trust or trade practices laws are anywhere near like ours in Aus, you are obliged to deal fairy and equally with all people, especially if they are competitors. Here it is illegal to supply one but boycott the other on the grounds that it reduces competition in the market place. There are exceptions for exclusive contracts and confidentiality and where one contract helps you develop IP with the client, but basically if two people ask o buy the same product, you are obliged to supply them both at the same competitive price unless there are justifiable differences due to volume, quality/guarantee payment terms or credit risk.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

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[IRstuff]

"However, I'm not thinking that they would be very pleased if they found out I was also working for a competitior."

Then, they should so stipulate in their contract, i.e., demand your exclusivity, for which you should be compensated accordingly.

I would also be concerned whether either of them is particularly litigious, since they can certainly wrap your business around the axle by claiming (suing) that you've passed proprietary information to their competition, which difficult to disprove.

TTFN

FAQ731-376
Chinese prisoner wins Nobel Peace Prize

 

[maddocks]

Disclosure is almost always the best option if they are competing in a bid situation....

 

[zdas04]

I think that every single one of my clients is in direct competition with another of my clients (some with several).

The only area where I have to be careful is work that is covered under an NDA. Once I was developing something for a client under an NDA and another client had a very similar problem. I went to the first client and asked if he was interested in splitting the cost of my time with another company (that he is in direct competition with) and after kicking it around with the lawyers, we modified the NDA and I billed half of my time to each client. Everyone was happy, but it only worked out because I talked to client 1 BEFORE mentioning this new technology to client 2. Otherwise I'd probably still be in court.

I don't see any problem with working for competitors as long as you keep everyone's secrets secret.

David

 

[patprimmer]

Spot on David

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[jmw]

Just take the money.

The whole concept of buffer selling is based on being able to show that the competitors of a potential client already use your product/services.

Look at any company website that posts a client list or project list and they will show competing clients in their list.



JMW

http://www.ViscoAnalyser.com

 

[patprimmer]

David

I would have billed 60% of my time to each client. That way they get a 40% discount but you get a 20% bonus. That sounds like a pretty fair way to split the savings to me.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[JohnRBaker]

We sell our software and services to companies who compete with each other all the time. For example, both GE and Pratt & Whitney use our software to design engines, as does Rolls Royce and a few other engine makers. The same holds true for automobiles (GM, Mercedes, Fiat, Chrysler, Nissan, Ford, etc.) and golf clubs (Callaway, Adams, Cleveland, etc.) and a dozen other situations. You just have to understand that no matter who the customer is, information learned about that customer due to your dealings with them must be respected as being confidential and whether you signed an explicit non-disclosure or not, that information is not to be shared with anyone unless specifically (in writing) allowed by the customer.

John R. Baker, P.E.
Product 'Evangelist'
Product Design Solutions
Siemens PLM Software Inc.
Industry Sector
Cypress, CA

http://www.siemens.com/plm

http://www.plmworld.com/museum/

To an Engineer, the glass is twice as big as it needs to be.

 

[zdas04]

Pat,
I probably could have swung that if I'd thought of it. Maybe next time.

David