Q.4 Big firms often undertake sub-contracting to complete large infrastructure projects in a timely manner. You recently joined one such firm as a manager responsible for awarding these contracts. Looking at the past records, you find that all contracts for the past few years have been awarded to a particular firm, X. Your superior has asked you to award an upcoming contract to the same firm. Although, not binding, company procedure maintains that sub-contracting work should be offered after competitive bids. This is to ensure that the firm most suitable for the project in terms of operations and finance gets the contract. When you discuss this with your superior, he insists that hiring of the firm X has been done as per legal norms of the company and no official rule has been violated. You decide to contact the owner of the firm X. After doing so, you realize that he is the nephew of your superior, who is also a shareholder in the company. (a) State the ethical issues involved in the case. (b) Does this form of transaction between two private parties constitute a conflict of interest? Justify. (c) Evaluate the possible ways of awarding contracts in such a situation with their merits and demerits. Also state which method would be more suitable in each situation. (20 Marks) - Civilsdaily

Q.4 Big firms often undertake sub-contracting to complete large infrastructure projects in a timely manner. You recently joined one such firm as a manager responsible for awarding these contracts. Looking at the past records, you find that all contracts for the past few years have been awarded to a particular firm, X. Your superior has asked you to award an upcoming contract to the same firm. Although, not binding, company procedure maintains that sub-contracting work should be offered after competitive bids. This is to ensure that the firm most suitable for the project in terms of operations and finance gets the contract. When you discuss this with your superior, he insists that hiring of the firm X has been done as per legal norms of the company and no official rule has been violated. You decide to contact the owner of the firm X. After doing so, you realize that he is the nephew of your superior, who is also a shareholder in the company. (a) State the ethical issues involved in the case. (b) Does this form of transaction between two private parties constitute a conflict of interest? Justify. (c) Evaluate the possible ways of awarding contracts in such a situation with their merits and demerits. Also state which method would be more suitable in each situation. (20 Marks)

Mentor’s Comments- State some of the ethical issues in the case. Evaluate if a situation of interest is generated due … Continue reading Q.4 Big firms often undertake sub-contracting to complete large infrastructure projects in a timely manner. You recently joined one such firm as a manager responsible for awarding these contracts. Looking at the past records, you find that all contracts for the past few years have been awarded to a particular firm, X. Your superior has asked you to award an upcoming contract to the same firm. Although, not binding, company procedure maintains that sub-contracting work should be offered after competitive bids. This is to ensure that the firm most suitable for the project in terms of operations and finance gets the contract. When you discuss this with your superior, he insists that hiring of the firm X has been done as per legal norms of the company and no official rule has been violated. You decide to contact the owner of the firm X. After doing so, you realize that he is the nephew of your superior, who is also a shareholder in the company. (a) State the ethical issues involved in the case. (b) Does this form of transaction between two private parties constitute a conflict of interest? Justify. (c) Evaluate the possible ways of awarding contracts in such a situation with their merits and demerits. Also state which method would be more suitable in each situation. (20 Marks)