Referral fee to buyer

bitblit · Feb 21, 2015

What are the legal and ethical obligations when the referrer becomes the buyer after the referral is made and verbally agreed upon? I have a proposal for engineering services and product delivery to a company but hasn't yet been submitted. After the introduction, my referrer was offered and accepted a position with said company with direct authority to contract selection. So basically, my referrer is now my buyer. My gut reaction is this is at least an ethical issue due to conflict of interest. Is there a legal precedence here?

MacGyverS2000 · Feb 21, 2015

Ethics and legality unfortunately, do not meet nearly as often a they should.

Dan - Owner

http://www.Hi-TecDesigns.com

Ron · Feb 21, 2015

Were you aware that referrer was to be offered a position where he would become buyer when he referred you?
Did you ask referrer for the referral?

If you can answer no to both questions, you have at most a disclosable issue, but not unethical. Since you are in aerospace, there could be some impropriety that those of us in public consulting wouldn't consider.

Disclose the issue to all involved and if you are allowed to move forward, go for it.

Ron · Feb 21, 2015

Just noticed the word "fee" in the OP title. If you paid a fee for the referral, then you have two ethical considerations...first, in my opinion it is unethical for engineers to pay for referrals. Secondly, the referrer/now buyer must recuse himself from the decision for selection if you put a proposal in.

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Referral fee to buyer

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