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Read the case study include an additional reference.I need 400 words by Sunday evening. Please quote the book below that is highlighted in yellow.
Turn to page 150 in your text and read the case study, Let’s Build a Building, Subcontractor Bids.
Once you have read the case study, refer to the three Decision Choices at the end. Would you select option #1, #2, or #3?
Write an essay of 400 words to justify your choice. Your discussion should be organized as follows: 1. Statement of the problem 2. Statement of your view on the topic 3. Justification of your viewpoint from an ethical perspective
Collins, Denis. Business Ethics: How to Design and Manage Ethical Organizations. Wiley, 09/2011. VitalBook file.
Subcontractor Bids
You have chosen the general contractor to build the building and bids have been put out for subcontrac- tors to perform the specific aspects of the work.
Three of your accounting clients bid in a different subcontractor category—dry walling, plumbing, and HVAC (heating, ventilation, and air conditioning). Your clients are the lowest bidders in dry walling and plumbing, but a high bid in HVAC. As is common practice, after the bid deadline subcontractors ask the contractor for the amount of the lowest bid submitted.
The general contractor reviews the client bids with you.
He informs you that the low-bid dry waller does high-quality work, but the low-bid plumber is known for substandard work. The general contractor strongly recommends the plumber with the second lowest bid, whom he has worked with on previous projects. This is problematic because the low-bid plumber has been a very loyal customer over the years and has suggested that he might change accounting firms if not chosen for this building project.
The general contractor has high regard for your HVAC client, but that bid was nearly double the amount of the low-bid HVAC. This is also problematic because the low-bid HVAC, if not chosen, could com- plain to others in the community about your bidding manipulations because he knows he’s the lowest bid.
What would you do? Would you
1. Use a “low-bid hired†rule that would result in your HVAC client not being chosen, and choosing your plumber client who performs substandard work?
2. Use an “all clients hired†rule that would result in the two high-quality dry waller and HVAC clients being chosen, though the HVAC client is at twice the low bid, and choosing your substan- dard plumber client?
3. Use a “high-quality hired†rule that results in choosing two of your three clients—the low-bid dry waller client and high-bid HVAC client, but not the low-bid substandard plumber, thus risk losing the plumber as a loyal client?
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