A conflict of interest is a personal, financial, or professional interest that could affect, or appear to affect, independent judgment.
Definition
A conflict of interest arises when a person's or firm's interests could interfere with objective professional judgment, or reasonably appear to do so. The conflict may involve financial interests, relationships, prior work, access to information, or competing duties. Whether it must be disclosed, managed, or disqualifies a firm depends on the facts and applicable law, contract, procurement rules, and policies. Owners use conflict checks before pursuing work, forming teams, and accepting assignments, especially when public clients or related parties are involved. A conflict does not automatically mean wrongdoing or that a firm cannot proceed; the required response depends on the situation and governing requirements. It is also not the same as a technical disagreement or ordinary business competition. Documenting the review and any agreed safeguards helps the firm and client understand how the issue was addressed.
How owners use it
- Screen prospective assignments and team members for relevant financial, relationship, or prior-work interests.
- Document disclosures and any mitigation or disqualification decisions under applicable requirements.
- If a firm identifies one prior relationship before a proposal deadline, it records the facts and checks the solicitation and client rules before deciding whether to disclose or proceed.
- Revisit conflict checks when project scope, team membership, or client relationships change.
