Discuss two ethical challenges faced by the construction industry. In your discussion state why they are ethical challenges? Unethical challenges present in every industry and root of a project, which leads to unsuccessful of a project and delays in a projects completion. It is more common in the construction business to contract a part or entire project through a contracting company.
There are several ethical challenges that can arise from the contracting a project through a third party contractor. The most common unethical conduct evidenced by the contractors are covering the price, bid cutting, poor documentation, late and short payments, subcontractors’ lack of safety ethics, unfair treatment of contractors in final account negotiations, and un-obeying of government policy.
According to the annual report Amundsen, (2000), contractors often cover the price of the contracts to maximize their revenue and net income and it is more common in construction world. The main reason behind covering prices of a contract is to profit the company. This is one ethical challenges that most companies face because the proper detailed of the material used, the number of people working on the project, the equipment used and many more to induce the prices of the project and increase the net income of the project.
The second unethical challenges that the construction companies face is through the contractors by poor documentation. According to Fan et al, (2001), poor documentation is the main aspect of an unsuccessful of a project, which leads to multiple of misjudgment and unlawful acts. By not keeping track of each phase of a project properly, one cannot recheck the findings of the project.
In this case, contractors are responsible for the full blame of not providing or meeting the deadline of a project, which leads to multiples of issues. Dislocating the papers in to different places will as well stretch the completion of a project. Hence, there are multiples of unethical challenges that construction companies face today due to contracting or subcontracting a part of a project. There are several common reasons behind these unethical acts such as price hiding, poor documentation, bid cutting and many more.
Amundsen, Inge; Tone Sissener and Tina Soreide (2000), Research on Corruption: A Policy Oriented Survey. Chr. Michelsen Institute (CMI) &
Norwegian Institute of International Affairs, Oslo/Bergen. Fan, L., Ho, C. and Ng, V. (2001), “A study of quantity surveyors ethical behaviour”, Journal of Construction Management and Economics, Vol. 19 No. 1, pp. 19-36.