Showing posts with label Ethics. Show all posts
Showing posts with label Ethics. Show all posts

ETHICS IN THE CONSTRUCTION INDUSTRY BASICS AND TUTORIALS

CONSTRUCTION INDUSTRY ETHICS BASIC INFORMATION
What Are The Construction Industry Ethics?


In 2004, FMI, the nation’s largest management-consulting firm for the construction industry, teamed up with CMAA to survey project owners, architects, engineers, construction managers, and contractors to gauge their concerns about ethics in the industry.

The results, culled from 270 responses, might be kept in mind as we traverse the design and construction industries in the chapters that follow.

The key concerns expressed by the respondents to the survey were fourfold:
1. There appeared to be a breakdown in trust and integrity.
2. There was a perceived loss of reputation for the industry.
3. There was a need to provide a code of ethics and standards.
4. There was a need to create a more equitable bidding process.

Concerns were voiced by owners, architects, engineers, and contractors; they all seem to point to a need for fairness on the part of each party to the construction process.

Concerns about architects and engineers included the following:

Owners stated that architects and engineers do whatever makes the owner happy, often at the expense of the contractor.
Architects and engineers need to express fairness when dealing with contractors or making decisions that affect the owner.
Design professionals knowingly issue plans and specifications that are deficient. Concerns about contractors included the following:
Bid shopping, a practice where contractors use one subcontractor’s price to drive down the price of another to achieve the lowest cost, often an unrealistically low price
Change-order games, played by a general contractor who knowingly submits a low bid in the hope of gaining more profit by issuing questionable change orders as construction proceeds
Payment games, the receipt of payment from one owner, which should be used to pay for labor, materials, and equipment for that project, commingled with funds to pay for other projects
Instituting claims that are vague or specious
Engaging subcontractors whose past performance has been unreliable Concerns about owners included the following:
Owners who authorize work but argue about paying for it
Owners who are very late in their payment of contractor requisitions
Owners who pass off responsibility to others when they are the party that should assume responsibility and resolve problems promptly and equitably
Owners who lack ethical behavior, such as advertising bogus low bids to drive down the price of bidding contractors
Little dialogue between owners and contractors about the expectations of both parties

It appears from this study that there is plenty of blame to go around, indicating the need to maintain and enforce ethical business practices by owner, architect, and contractor alike. So with that in mind, we will now begin the design and construction process.
PREVIOUS ARTICLES