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CENTRAL COLLEGES

CE 513

SITUATION: Contractor A intends to join the bidding for the construction of a five storey building. Other
than contractor A, there are three more contractors namely, B, C, and D joining the bidding process.
Contractors B, C, and D submitted their respective proposals/quotations ahead of the set deadline.
Contractor A connived with one of the members of the Bids and Awards Committee to find out the lowest
bid submitted by the three contractors B, C and D. After getting information, contractor A slashed his
profit for the project to further lower his bid thus winning the project. Explain the ethical issue in above
situation.

Explain:

The ethical issue in this situation is lowest bid procurement. Lowest bid procurement occurs when
a Contractor lowering its bid just to make sure they win the project without meeting the standards and
quality of work. Contractor A slashed its profit just to make sure they won the bidding. Another ethical
issue is unfair treatment to the Contractors, the awards committee let contractor A to connived with them
and get some information about the others competitors bid.

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