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PART I

 

A construction project has completed the bidding process. Your construction firm is the apparent low bidder. The owner awards the contract to your firm. As you prepare your subcontractor agreements, you receive a phone call from a new subcontractor. This contractor offers a price on the carpet work that is lower than the original subcontractor you had selected. You were in the process of writing the agreement with the original subcontractor when the new contractor called. No subcontractor agreements have been signed. What do you do? Do you accept the new subcontractor’s price? If so, do you rewrite the agreement contract? Or do you finish writing the agreement for the original contractor and disregard the phone call? Explain your reasoning. Why did you choose to accept or decline the offer from the new carpet subcontractor? What are the ethical implications of each choice?

 

 

 

PART II

 

Within a construction company there are estimators who review construction drawings and specifications manuals. Upon this review, they will determine the price or cost to construct the building. There are many skills that an estimator must have to complete the work accurately. An estimator’s job is not only to determine the cost of construction but also to include a level of profit. What skill sets are required to be an estimator? As part of an estimate, define the following terms:

 

•Retainage

 

•Allowances

 

•Depreciation

 

•Unit prices

 

Provide an example of each term.

 

Please supply references in APA format for both parts.

 

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