Definition Of The Ethical Problem - 1613 Words

TABLE OF CONTENTS 1.0 Introduction 1.1 Facts of the Case 2 1.2 Social Context 2-3 2.0 Definition of the Ethical Problem 3 3.0 Possible Solutions 4-5 3.1 Proposed Solution 1 3.2 Proposed Solution 2 3.3 Proposed Solution 3 4.0 Proposed Decision 5-6 4.1 Decision and Justification 4.2 Implementation and Potential Consequences 5.0 References 7 1.0. Introduction 1.1. Facts of the case Renovations, constructions and reconstructions are among the signs of progress and development in rapidly evolving societies. In a†¦show more content†¦The core of this report focuses on one of the typical tactics deployed—the underbidding of contracts to â€Å"outbid† other contractors, the ethical ramifications of utilizing this particular tactic and possible viable solutions to doing away with this practice. 1.2 Social Context The underbidding of contracts to â€Å"outbid† other competing contractors is an open secret amongst contractors—at least to the knowledge of the experienced and high ranking contracting firms. This practice usually stems from the detection of flaws in construction designs, drawings, outlines and cost estimates. Contractors wielding intelligence about the make-up of such poorly structured projects move to profit on these flaws by first underbidding on the contracts to be awarded it then decide to include additional costs to the project via change orders later on in the project. This practice may also be due to the socially regarded norm on cost-effectiveness. Outsourcing corporations and governments often tend to confuse cost-effectiveness for pragmatism and thus may usually be inclined to award contracts to the lowest bidding contractor. Contractors then move to exploit this chance by requesting change orders which in most cases may not be necessary thus bulking on th eir profits. This practice would arguably be much more rampant in government awarded contracts mainly due to bureaucracy and the lack of critical cost