According to NSPE guidelines, what payment structure is prohibited for engineers?

The prohibition of contingency fees in engineering practice as outlined by the National Society of Professional Engineers (NSPE) is rooted in the ethical imperative to prioritize public welfare and maintain professional integrity. Contingency fees are payment structures where an engineer would receive a fee that is contingent upon the success of their project or a specific outcome. This arrangement can create conflicts of interest, where an engineer might prioritize personal financial gain over professional duty and ethical responsibility.

By prohibiting contingency fees, the NSPE guidelines help ensure that engineers remain impartial, making decisions based on their professional judgment rather than the potential financial outcome. This maintains the integrity of the engineering profession and ensures that public trust is not compromised. In contrast, other payment structures, such as hourly billing, flat fees, and retainer agreements, align with ethical standards by promoting transparency and accountability without the inherent compromises that come with contingency compensation.