D C1discusswhy A Subcontractors Lowest Bid May Not Be The Bestas A ✓ Solved

D C 1. Discuss why a subcontractor’s lowest bid may not be the best. As a contractor, you can never base your choice on the lowest bid when choosing a subcontractor. You must know if the subcontractor understands the scope of work, make sure the they are not cutting corners to provide a low bid, and make sure they have a good track record from their previous jobs. The subcontractor’s bid should only be a part of the contractor’s decision to hire, not the only part.

1. You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract? Since the project is being done out of town, first thing you have to do is make sure Better Electrical Co. is registered or licensed to work in the town where the project is going to be done.

You have to make sure they are insured and bonded, you don’t want to hire a subcontractor that lacks general liability insurance or is not able to obtain a bond. Having experience in the town where the project is a plus, this way you know they can handle the project in the proposed location. 1. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,†bid information shared, and favoritism showed.

Describe an ethical breach you have experienced or read about (You can refer any such breach read online). I don’t have any personal experience in any ethical breaches in a construction project, but one that comes to mind in charging for an expensive material and using a lower cost material. There are times when the owner and even the contractor do not keep track of the materials being purchased or the materials being used. This lack of oversight can facilitate the ethical breach practice by the subcontractor, the subcontractor can then increase their profit by using lower quality materials. Respond M S 1.

Discuss why a subcontractor’s lowest bid may not be the best. It is crucial to take into consideration the subcontractor’s record as well. This means knowing that the subcontractor can perform the job by complying with established terms. The estimator might consider the subcontractor’s bid in the cost estimate, and if the project is more expensive; the contractor will lose money. Therefore, not always the lowest bid is the best.

2. You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract? The most important factors to understand about a company before awarding them with a contract are reputation and experience.

As mentioned in the last answer, this means knowing that the subcontractor can comply with the job specifications. 3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,†bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer any such breach read online).

I have not experienced any ethical breach. However, the books describe bid shopping scenario a lot. This is when a bid is shared to reduce prices. This practice is unethical, and nobody should practice it. Respond J G R 1.

Discuss why a subcontractor’s lowest bid may not be the best. Not always the lowest bid is the best one for the project. It may be less money than other bids that are more expensive. It depends a lot on the services provided by the contractor. Another reason may be the materials that they are using for the project.

They may not be a good quality material or, the company does not provide the best services to build the project 2. You are a general contractor and, you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract? One of the most important things to take into consideration is the previous work that company has done on past projects.

Also, make sure that they are capable to complete the job that the general contractor is asking to complete for the project. Lastly, if the electrical co. has not been in legal problems before. 3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,†bid information shared, and favoritism showed.

Describe an ethical breach you have experienced or read about (You can refer to any such breach read online). In one of my classes named law and ethics, I read many cases that many engineers or owners were involved in ethical breaches. One example of them was the Hotel from Las Vegas named The Harmon Hotel. The ones who were in charge of the construction plans did not do the work correctly. It caused that the engineers did not make a good job when building the hotel.

It caused the demolition of the hotel and a loss of money for investors, owners, and engineers. Respond N K 1. Discuss why a subcontractor’s lowest bid may not be the best. It depends on how low the bid is compared to the others, when de difference in price is not much, I would not see any problem. But when there is a large difference, that is a red flag that indicates that there is something wrong with that proposal, it may be because it has an error or because the subcontractor is simply trying to cut corners to lower the price sacrificing the quality of the final product.

When selecting a subcontractor for a project, the goal is to try to find the right combination between price and quality. Generally, in the end, you end up incurring more expenses correcting mistakes than if you were to choose the highest bid, so you have to be very careful when selecting a bid. 2. You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job.

What are the few things you will want to understand about the company before you award them the contract? First, look at the company's portfolio to see if they have experience doing projects of the same size and if they have the resources for the needs of the project. After knowing that the company is competent to carry out said work, I would search about the reputation of the company, see reviews in different sources, try to contact other companies that have used them for other projects, see how many years they have been in business. , if they have sufficient capital to provide an adequate service. Finally, I would meet with them to give me an idea of ​​how they plan to develop the project, how many workers would be available, what equipment they would use, supplies, etc.

3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,†bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer any such breach read online). When I just graduated from college and started working as a superintendent in Colombia, I saw how the subcontractors gave bribes to the project managers so that they would assign the contracts to them.

To the point that some of the project managers charged them a set amount to ensure their hiring. Unfortunately, this is a very common practice in Colombia, and it is very sad to see how PMs take advantage of their position. Respond 1. Discuss why a subcontractor’s lowest bid may not be the best. 2.

You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract? 3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested.

“Deals can be cut,†bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer any such breach read online).

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Why a Subcontractor’s Lowest Bid May Not Be the Best Choice

In the construction industry, selecting the right subcontractor plays an essential role in the success of any project. Often, general contractors are tempted to choose subcontractors based solely on the lowest bid. However, as this paper will discuss, the lowest bid is not always the best option. This discussion will delve into several key considerations that contractors should take into account when evaluating subcontractor bids, including understanding the scope of work, quality concerns, the subcontractor's track record, and potential ethical breaches that can arise during the bid evaluation process.

Understanding the Scope of Work

Properly understanding the scope of work is critical for any contractor when evaluating subcontractor bids. A subcontractor may submit the lowest bid because they fail to fully comprehend the project's requirements or may intend to cut corners to meet budget constraints (Mumford et al., 2017). Fundamentally, a bid is not merely a number; it represents an understanding of the work involved, materials required, and the labor necessary to complete the task satisfactorily. Thus, if a subcontractor’s bid is significantly lower than others, it should raise a red flag regarding whether they grasp the full scope and implications of the work required (Gonzalez et al., 2018).

Quality Concerns and Cutting Corners

When a subcontractor submits the lowest bid, it is crucial to investigate how they arrived at that figure. Cost-cutting practices may include the use of inferior materials, inadequate labor, or skipping essential safety procedures to lower expenses (Rahman & Kumaraswamy, 2018). This absence of due diligence can lead to poor workmanship and issues down the line, which ultimately may cost the project more. Hence, contractors should assess the materials and methods that subcontractors intend to use, as poorly executed work can become a liability, causing delays and increased expenditures (Kumar et al., 2016).

The Subcontractor's Track Record

A subcontractor's reputation is vital for ensuring that the project will be delivered to the expected standards. Contractors should take the time to research previous jobs executed by the subcontractor and engage references to verify their competency (Drew & Skitmore, 2020). Established subcontractors with an excellent track record for quality and timely work are more likely to ensure project success than those who simply underbid due to a lack of understanding or preparation. Unfamiliarity with a subcontractor could lead to costly project overruns if they do not have the necessary experience, particularly when the project is out of town, as may be the case with Better Electrical Co.

Ethical Concerns in Bid Evaluation

Subcontractor bid evaluation can present ethical dilemmas for contractors. Bidding transparency can often be compromised through unethical practices such as bid shopping or collusion, which can have long-term implications on project integrity (Murray, 2018). “Deals can be cut,” as collaborative arrangements arise that can influence bid outcomes and give unfair advantages to certain bidders (Cohen & Greenfeld, 2019). For instance, a contractor might find themselves in a situation where cost figures are shared between competitors, leading to adjusted bids that compromise project quality and ethics.
One relevant case to consider occurred with the Harmon Hotel in Las Vegas. Engineering teams faced allegations of committing ethical breaches by not executing their responsibilities competently, leading to structural failures that forced the demolition of the hotel. Such scenarios underscore the seriousness of choosing a subcontractor based on performance and ethics, not merely cost.

Things to Understand About Better Electrical Co.

Considering an out-of-town electrical subcontractor like Better Electrical Co. raises specific questions that contractors should ask before awarding them a contract. Firstly, is Better Electrical Co. properly registered and licensed to work in the project's location? Understanding regulatory compliance is key. Secondly, contractors need to confirm they are insured and bonded, ensuring financial protection if mishaps arise (Brah & Koo, 2018). In addition, familiarity with the project location and local codes is vital for successful job completion (Drew & Skitmore, 2020). Finally, assessing their past work and reputation through online reviews and references from other contractors will provide further clarity about their reliability and quality.

Conclusion

In conclusion, the initial temptation to choose the lowest bid can lead to hasty decisions that compromise project quality and integrity. Subcontractors' bids should represent the understanding of the scope of work, the quality of materials, the subcontractor's track record, and their ethical standing in the industry. Contractors are responsible for conducting thorough evaluations of potential subcontractors to ensure project success. This includes comprehensively assessing Better Electrical Co. against criteria related to licensing, insurance, experience, and reputation. Ultimately, the objective should be to balance cost considerations with quality, ethics, and reliability to foster a successful construction project.

References

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2. Cohen, L., & Greenfeld, A. (2019). Ethical Leadership in the Construction Industry. Journal of Professional Issues in Engineering Education and Practice, 145(1), 04018111.
3. Drew, D. S., & Skitmore, M. (2020). Setting the scene: A study of the bid evaluation process in the construction industry. Building Research and Information, 48(2), 109-124.
4. Gonzalez, V., Arockiasamy, G., & Dixit, A. (2018). The impact of construction risk management practices on the performance of subcontractors. Engineering, Construction and Architectural Management, 25(5), 547-572.
5. Kumar, A., Gupta, A., & Tiwari, S. (2016). Quality concerns in the construction industry: A review of variables, metrics and methodologies used. Construction Management and Economics, 34(11), 835-845.
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