Ethical Issues In Contractors Tendering Practices Construction Essay

Ethical Issues In Contractors Tendering Practices Construction Essay Ethics examine the morality of human conduct; it studies the basic principles of moral behaviour and is concern with the right or wrong of human behaviour. Every rational human being has an idea of what it is for something to be right or wrong, although sometimes it is difficult to evaluate what is wrong or right depending on the circumstance of such action (Etim, 1999). Business ethics is therefore a collection of moral principles or a set of values dealing with what is right or wrong, good or bad in business transactions. Such sets of values are being shared within the business community as well as the society as a whole. Moral ideas are considered to be inappropriate for everyday business dealings and some actions are disregarded due to the strong desire to make profit. Some have argued that ethics and business do not mix, and that the two are in direct conflict with each other. In fact, it has been said that companies that are truly ethical are going out of existence. Construction contracts can be obtained by negotiation or by competitive tendering (Shash, 1993; Ashworth, 2001). In competitive tendering, an owner invites a selected number of contractors to compete for the project. This method of tendering is considered as the most common means by which building and engineering contracting firms obtain works, and the dominant mechanism for allocating construction contracts (Ward, 1979; Yusif and Odeyinka, 2000; Ashworth, 2001; Hiyassat, 2001; Harris and McCaffer, 2001; Shen et al, 2004). The business of tendering for construction contracts has a large ethical component. Ethical principles in tendering are formally prescribed in the codes of conduct related to tendering process. The codes are designed to delegate responsibilities to both competing contractors and the client and to minimize the potentials for unethical practices. This work intends to examine cover pricing, collusive tendering and rate loading among other unethical practices which construction contractors sometimes engage in during tendering. Cover pricing in construction tendering Fu, Drew and Lo (2004) observe that contractors tendering behaviour is subject to their winning intent. It is however known that winning may not be the only objective in tendering. Although the tendering codes stipulates that tenderers shall only bid where they intend to carry out the work if successful, some contractors for some reasons sometime decide to submit tenders based on cover-price. Cover prices are tender prices which have been provided at rates specifically designed to lose the tender but which may appear to be competitive. Despite attempts to prevent this practice, several instances of cover pricing sometimes called non-serious tenders have been reported. When a contractor with a reasonable workload receives a set of tender documents from a reputable client and consulting organizations, the contractor has to decide what to do: first whether to do nothing, to return the tender documents or to submit a tender. A tender may be submitted in one of three ways: by obtaining a cover price, by preparing a tender based on accurate estimate, and by preparing a tender based on approximate estimate. The option to do nothing is not considered suitable due to the potential harm such a course of action might cause to the reputation of the contractor with the client, consultants and their business contacts. Also the option of returning the tender documents may be perceived by the contractor as unsatisfactory because it might mean exclusion from future tender list, although this should not be the case according to the code of procedure for tendering. Some reasons for the issuing of cover price by contractors to include: little interest in the contract; lack of resources to competently complete the work; shortage of time to compile tender; desire to remain considered for future contracts; and little chance of winning due to the large number competing contractors for the same contract. It is reported in Skitmore and Runeson (1999) that clients often give the perception that a failure to tender will prejudice a contracting firm in the future tendering exercise, and the consequence of this is the so called cover price which cannot easily be distinguished from a genuine competitive tender. Also, Runeson (1988) remarks that some tenders are based on cover prices not intended to win the contract and therefore above the expected price, and submitted to recover deposit moneys or to keep faith with the client or consultants. However, Lowe and Parvar (2004) provide a different perspective to cover pricing. They submit that tendering options available to a contractor are simply acceptance or rejection of the tendering opportunity, although, rejection does not mean that the contractor does not submit a tender. Unsatisfactory past experience with a particular client or consultants regarding personality or payment, high cost of tendering and inadequate information often resulted in inflation of the tender price (cover price) rather than a refusal to tender. Cover price can ruin the competitiveness of a tendering process and can also lead to collusion among tendering contractors. However, despite its unethical nature and illegality in some countries, there are some arguments in its favour. The shortage of time to compile a bona fide tender could compel a contractor to submit tenders based on cover price. The recognition of this fact may have prompted the Nigerian Institute of Quantity Surveyors (NIQS) in its Code of Procedure for Competitive Tender to state that: time allowed for completion of tender should relate to the scope of project. Adequate tendering time allows tenderers to obtain competitive quotations and thus, ensure the return of most competitive prices with least mistakes (Clause 4.2.1) Lowe and Parvar (2004) believe that only few contractors will actually decline an invitation to tender. However, it appears that contractors react differently to the perceived fear that the option of returning tender documents might exclude them from clientsà ¢Ã¢â€š ¬Ã¢â€ž ¢ future tender process The report of a survey of some Nigerian building contractors indicate that when they receive a set of tender documents at a time their firms have a reasonable workload, they return the tender documents to the clients or their representatives with an apology for their firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ inability to tender. Only a few contractors admit to engaging in the practice of cover pricing. Contractors who admit to using cover pricing in tendering reveal that their action is mostly driven by little or no interest in the contract under consideration and the desire to remain considered for future contracts and tendering process. Some contractors cited other reasons such as the personality of the cl ient, risk and unpredictability of the construction period as well as heavy workload as some reasons why cover pricing may be an option for their firms. Whether or not a cover price is provided with good intention, the fact remains that it results in lessening real competition of tenders. Collusion in Tendering Chen et al (2005) submit that one purpose of the standard tendering procedures is to reduce potential for collusion and manipulation of pricing. According to Ray et al (1999), collusion is a method of pricing control by contractors to substantially lessen competition. Collusive tendering occurs where several contractors have been invited to tender and the contractors agree among themselves either not to tender, or to tender in such a manner as not to be competitive with the other contractors. It has the effect of substantially lessening competition. The main reasons for this practice among contractors are that it provides: an even distribution of construction work for all the contractors involved a means of entering what is an apparently bona fide tender a means for discussion and agreement over illicit profit making such as amounts for cover price, and unsuccessful tendering fee. The practice, or possibilities for the practice of collusion is a factor among several other issues related to ethical tendering, and it is contrary to the ideals of competition. It only benefits those parties to the agreement at the expense of those outside, including clients and other contractors. Sheldon cited in Ray et al (1999), while examining collusion in the UK, holds that collusion agreement are seen as an attractive means of maintaining a steady flow of work and achieving higher, risk-adjusted, discounted profit. The tender codes of some countries clearly prohibit unethical practices such as collusion on tenders, inflation of prices to compensate unsuccessful tenderers or any such secret arrangements. The very fact that tendering contractors communicate with each other can be taken to be a form of collusive behaviour under competitive tendering process. Though, little evidence of collusive tendering seems to be available in Nigeria construction industry, it is pertinent for industry practitioners and clients to be aware of the possibility of such unethical practice. Rate loading Usually, a construction tender is priced in such a way that the prices of each item comprise the cost of that item plus a uniform percentage allowed as profit and overheads. This is not always the case. Contractors may mark up the bill items by different percentages to create some element of rate-loading in order to create a favourable cash flow. Two aspects of rate loading are front-end loading and claims loading. Construction contracts only become self-financing towards the completion of the project. Therefore contractors are required to engage a considerable amount of their own capital in the execution of the work, at least in the early stage. In an attempt to minimize the involvement of their capital and make the project self-financing at an early stage, they resort to price manipulations. Items which the contractor expects to be executed early in the project have prices which contain a disproportionately large content of overheads and profits and items to be executed in the later stage of the project have their prices reduced accordingly to maintain competitiveness (Fellows et al, 2002). This pricing strategy in construction tenders is referred to as front-end loading. Due to the time-value of money, the situation further benefit contractors but place a cash flow burden and greater risk on clients. There is also the practice of claims loading where contractors insert higher profit margin into unit rates related to those work items which they expect to be increased through variation orders during the execution of the contract (Xu and Tiong, 2002). Conclusion Unethical tendering practices such as cover pricing, collusive tendering and rate loading have the potential of reducing real competition and eroding the benefits of competitive tendering. They can also place enormous financial burden on client. Construction consultants therefore have a duty to carefully examine tenders for construction contracts to identify any such practice and possibly caution or sanction contractors who may have engage in these practices.

Hirschi Social Control Theory Essay

I agree with Hirchi’s Theory to a certain extent only. This is because I believe it is not applicable to all people and to all situations. Yes, it may be true that when a person, as early as his childhood, conforms to fit into groups and find his place, he will probably be a person who is responsible and law-abiding. While we still have our own self-interests and individuality, we all want to feel we belong and mould our beliefs and involvements to form attachments. Also, as stated by Hirchi’s Theory, conformity is formed by four variables which we develop through our interactions with family and school, the four being: attachment, commitment, involvement and belief. For me, attachment and conformity to different social groups in the society does not guarantee a person for him to be less ready in committing a crime. Yes, a human being’s personality is partly formed by the environment where he is in—may be the attachment and conformity with his environment helps in molding a righteous and morally-upright personality. But in humanism, a human being has the absolute control to his life. He has free will and it is up to him how he will react to the stimuli created by his environment. In addition, psychologically, the formation of personality is still debatable whether it is nature or nurture. Nature says that a human being’s personality is genetic and on the other hand, nurture says that personality is molded by his environment. I think that some criminals can still be counseled psychologically targeting areas where in he has not yet matured and where he is still fixated—some of these may be the lack of attachment to social groups.

Ch8 Test Bank

CHAPTER 8 SECTION 1: CONTINUOUS PROBABILITY DISTRIBUTIONS MULTIPLE CHOICE 1. Which of the following represents a difference between continuous and discrete random variables? a. Continuous random variables assume an uncountable number of values, and discrete random variables do not. b. The probability for any individual value of a continuous random variable is zero, but for discrete random variables it is not. c. Probability for continuous random variables means finding the area under a curve, while for discrete random variables it means summing individual probabilities. d. All of these choices are true. ANS:DPTS:1REF:SECTION 8. 1 2.Which of the following is always true for all probability density functions of continuous random variables? a. The probability at any single point is zero. b. They contain an uncountable number of possible values. c. The total area under the density function f(x) equals 1. d. All of these choices are true. ANS:DPTS:1REF:SECTION 8. 1 3. Suppose f(x) = 0. 25 . What range of possible values can X take on and still have the density function be legitimate? a. [0, 4] b. [4, 8] c. [? 2, +2] d. All of these choices are true. ANS:DPTS:1REF:SECTION 8. 1 4. The probability density function, f(x), for any continuous random variable X, represents: a. ll possible values that X will assume within some interval a ? x ? b. b. the probability that X takes on a specific value x. c. the height of the density function at x. d. None of these choices. ANS:CPTS:1REF:SECTION 8. 1 5. Which of the following is true about f(x) when X has a uniform distribution over the interval [a, b]? a. The values of f(x) are different for various values of the random variable X. b. f(x) equals one for each possible value of X. c. f(x) equals one divided by the length of the interval from a to b. d. None of these choices. ANS:CPTS:1REF:SECTION 8. 1 6.The probability density function f(x) for a uniform random variable X defined over the interval [2, 10] is a. 0. 125 b. 8 c. 6 d . None of these choices. ANS:APTS:1REF:SECTION 8. 1 7. If the random variable X has a uniform distribution between 40 and 50, then P(35 ? X ? 45) is: a. 1. 0 b. 0. 5 c. 0. 1 d. undefined. ANS:BPTS:1REF:SECTION 8. 1 8. The probability density function f(x) of a random variable X that has a uniform distribution between a and b is a. (b + a)/2 b. 1/b ? 1/a c. (a ? b)/2 d. None of these choices. ANS:DPTS:1REF:SECTION 8. 1 9. Which of the following does not represent a continuous uniform random variable? . f(x) = 1/2 for x between ? 1 and 1, inclusive. b. f(x) = 10 for x between 0 and 1/10, inclusive. c. f(x) = 1/3 for x = 4, 5, 6. d. None of these choices represents a continuous uniform random variable. ANS:CPTS:1REF:SECTION 8. 1 10. Suppose f(x) = 1/4 over the range a ? x ? b, and suppose P(X > 4) = 1/2. What are the values for a and b? a. 0 and 4 b. 2 and 6 c. Can be any range of x values whose length (b ? a) equals 4. d. Cannot answer with the information given. ANS:BPTS:1REF:SECTION 8. 1 11. What is the shape of the probability density function for a uniform random variable on the interval [a, b]? a.A rectangle whose X values go from a to b. b. A straight line whose height is 1/(b ? a) over the range [a, b]. c. A continuous probability density function with the same value of f(x) from a to b. d. All of these choices are true. ANS:DPTS:1REF:SECTION 8. 1 TRUE/FALSE 12. A continuous probability distribution represents a random variable having an infinite number of outcomes which may assume any number of values within an interval. ANS:TPTS:1REF:SECTION 8. 1 13. Continuous probability distributions describe probabilities associated with random variables that are able to assume any finite number of values along an interval.ANS:FPTS:1REF:SECTION 8. 1 14. A continuous random variable is one that can assume an uncountable number of values. ANS:TPTS:1REF:SECTION 8. 1 15. Since there is an infinite number of values a continuous random variable can assume, the probability of each individual value is virtually 0. ANS:TPTS:1REF:SECTION 8. 1 16. A continuous random variable X has a uniform distribution between 10 and 20 (inclusive), then the probability that X falls between 12 and 15 is 0. 30. ANS:TPTS:1REF:SECTION 8. 1 17. A continuous random variable X has a uniform distribution between 5 and 15 (inclusive), then the probability that X falls between 10 and 20 is 1. . ANS:FPTS:1REF:SECTION 8. 1 18. A continuous random variable X has a uniform distribution between 5 and 25 (inclusive), then P(X = 15) = 0. 05. ANS:FPTS:1REF:SECTION 8. 1 19. We distinguish between discrete and continuous random variables by noting whether the number of possible values is countable or uncountable. ANS:TPTS:1REF:SECTION 8. 1 20. In practice, we frequently use a continuous distribution to approximate a discrete one when the number of values the variable can assume is countable but very large. ANS:TPTS:1REF:SECTION 8. 1 21. Let X represent weekly income expressed in dollars. Since there is no set upper limit, we cannot identify (and thus cannot count) all the possible values. Consequently, weekly income is regarded as a continuous random variable. ANS:TPTS:1REF:SECTION 8. 1 22. To be a legitimate probability density function, all possible values of f(x) must be non-negative. ANS:TPTS:1REF:SECTION 8. 1 23. To be a legitimate probability density function, all possible values of f(x) must lie between 0 and 1 (inclusive). ANS:FPTS:1REF:SECTION 8. 1 24. The sum of all values of f(x) over the range of [a, b] must equal one. ANS:FPTS:1REF:SECTION 8. 1 25.A probability density function shows the probability for each value of X. ANS:FPTS:1REF:SECTION 8. 1 26. If X is a continuous random variable on the interval [0, 10], then P(X > 5) = P(X ? 5). ANS:TPTS:1REF:SECTION 8. 1 27. If X is a continuous random variable on the interval [0, 10], then P(X = 5) = f(5) = 1/10. ANS:FPTS:1REF:SECTION 8. 1 28. If a point y lies outside the range of the possible values of a ran dom variable X, then f(y) must equal zero. ANS:TPTS:1REF:SECTION 8. 1 COMPLETION 29. A(n) ____________________ random variable is one that assumes an uncountable number of possible values.ANS:continuous PTS:1REF:SECTION 8. 1 30. For a continuous random variable, the probability for each individual value of X is ____________________. ANS: zero 0 PTS:1REF:SECTION 8. 1 31. Probability for continuous random variables is found by finding the ____________________ under a curve. ANS:area PTS:1REF:SECTION 8. 1 32. A(n) ____________________ random variable has a density function that looks like a rectangle and you can use areas of a rectangle to find probabilities for it. ANS:uniform PTS:1REF:SECTION 8. 1 33. Suppose X is a continuous random variable for X between a and b.Then its probability ____________________ function must non-negative for all values of X between a and b. ANS:density PTS:1REF:SECTION 8. 1 34. The total area under f(x) for a continuous random variable must equal _________ ___________. ANS: 1 one PTS:1REF:SECTION 8. 1 35. The probability density function of a uniform random variable on the interval [0, 5] must be ____________________ for 0 ? x ? 5. ANS: 1/5 0. 20 PTS:1REF:SECTION 8. 1 36. To find the probability for a uniform random variable you take the ____________________ times the ____________________ of its corresponding rectangle.ANS: base; height height; base length; width width; length PTS:1REF:SECTION 8. 1 37. You can use a continuous random variable to ____________________ a discrete random variable that takes on a countable, but very large, number of possible values. ANS:approximate PTS:1REF:SECTION 8. 1 SHORT ANSWER 38. A continuous random variable X has the following probability density function: f(x) = 1/4, 0 ? x ? 4 Find the following probabilities: a. P(X ? 1) b. P(X ? 2) c. P(1 ? X ? 2) d. P(X = 3) ANS: a. 0. 25 b. 0. 50 c. 0. 25 d. 0 PTS:1REF:SECTION 8. 1 Waiting TimeThe length of time patients must wait to see a doctor at an emergen cy room in a large hospital has a uniform distribution between 40 minutes and 3 hours. 39. {Waiting Time Narrative} What is the probability density function for this uniform distribution? ANS: f(x) = 1/140, 40 ? x ? 180 (minutes) PTS:1REF:SECTION 8. 1 40. {Waiting Time Narrative} What is the probability that a patient would have to wait between one and two hours? ANS: 0. 43 PTS:1REF:SECTION 8. 1 41. {Waiting Time Narrative} What is the probability that a patient would have to wait exactly one hour? ANS: 0PTS:1REF:SECTION 8. 1 42. {Waiting Time Narrative} What is the probability that a patient would have to wait no more than one hour? ANS: 0. 143 PTS:1REF:SECTION 8. 1 43. The time required to complete a particular assembly operation has a uniform distribution between 25 and 50 minutes. a. What is the probability density function for this uniform distribution? b. What is the probability that the assembly operation will require more than 40 minutes to complete? c. Suppose more time was allowed to complete the operation, and the values of X were extended to the range from 25 to 60 minutes.What would f(x) be in this case? ANS: a. f(x) = 1/25, 25 ? x ? 50 b. 0. 40 c. f(x) = 1/35, 25 ? x ? 60 PTS:1REF:SECTION 8. 1 44. Suppose f(x) equals 1/50 on the interval [0, 50]. a. What is the distribution of X? b. What does the graph of f(x) look like? c. Find P(X ? 25) d. Find P(X ? 25) e. Find P(X = 25) f. Find P(0 < X < 3) g. Find P(? 3 < X < 0) h. Find P(0 < X < 50) ANS: a. X has a uniform distribution on the interval [0, 50]. b. f(x) forms a rectangle of height 1/50 from x = 0 to x = 50. c. 0. 50 d. 0. 50 e. 0 f. 0. 06 g. 0. 06 h. 1. 00PTS:1REF:SECTION 8. 1 Chemistry Test The time it takes a student to finish a chemistry test has a uniform distribution between 50 and 70 minutes. 45. {Chemistry Test Narrative} What is the probability density function for this uniform distribution? ANS: f(x) = 1/20, 50 ? x ? 70 PTS:1REF:SECTION 8. 1 46. {Chemistry Test Narrative} Find the pr obability that a student will take more than 60 minutes to finish the test. ANS: 0. 50 PTS:1REF:SECTION 8. 1 47. {Chemistry Test Narrative} Find the probability that a student will take no less than 55 minutes to finish the test. ANS: 0. 75PTS:1REF:SECTION 8. 1 48. {Chemistry Test Narrative} Find the probability that a student will take exactly one hour to finish the test. ANS: 0 PTS:1REF:SECTION 8. 1 49. {Chemistry Test Narrative} What is the median amount of time it takes a student to finish the test? ANS: 60 minutes PTS:1REF:SECTION 8. 1 50. {Chemistry Test Narrative} What is the mean amount of time it takes a student to finish the test? ANS: 60 minutes PTS:1REF:SECTION 8. 1 Elevator Waiting Time In a shopping mall the waiting time for an elevator is found to be uniformly distributed between 1 and 5 minutes. 1. {Elevator Waiting Time Narrative} What is the probability density function for this uniform distribution? ANS: f(x) = 1/4, 1 ? x ? 5 PTS:1REF:SECTION 8. 1 52. {Elevator Wa iting Time Narrative} What is the probability of waiting no more than 3 minutes? ANS: 0. 50 PTS:1REF:SECTION 8. 1 53. {Elevator Waiting Time Narrative} What is the probability that the elevator arrives in the first minute and a half? ANS: 0. 125 PTS:1REF:SECTION 8. 1 54. {Elevator Waiting Time Narrative} What is the median waiting time for this elevator? ANS: 3 minutes PTS:1REF:SECTION 8. 1

Title VII of Equal Employment Opportunity as the Most Proactive Legal Clause Free Essay Example, 1000 words

In the current era of a pluralistic society, racial discrimination is still one of the major issues within the Hispanics and ethnic minorities in America. Affirmative actions from employers, both, public and private, are important factors to promote a work environment where people enjoy equal rights and opportunity, irrespective of their nativity, color, gender or social status. The Civil Rights Act of 1964 was a huge step to prevent discriminatory practices in the workplace. The law made it a legal offence for employers to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions or privileges or employment, because of such individual's race, color, religion, sex, or national origin (Civil Rights Act). Through the Title VII, the Equal Employment Opportunity Commission (EEOC) was created to enforce the law. In 1998-99, the role and responsibilities of EEOC were expanded and enforce s laws that prohibit discrimination based on race, color, religion, sex, national origin, disability, or age in hiring, promoting, firing, setting wages, testing, training, apprenticeship, and all other terms and conditions of employment. We will write a custom essay sample on Title VII of Equal Employment Opportunity as the Most Proactive Legal Clause or any topic specifically for you Only $17.96 $11.86/page The programs require employers to take initiatives to encourage work practices which include people from different culture, race, religion, gender or nativity.