Question

Explain why change orders can result in an issue of ethics in construction. Essay format

Answer 1

Change orders are ways or orders to deal with necessary requirements ,issues and Changes in a project . However, Change Orders can cause issue in ethics in Construction Industry.

Common Causes of Change Orders are due to change in Design Drawings of the Client based on requirements of Site, Change in Government regulations, Mistakes or omissions in Design reports etc.

Common tactic by an unethical Contractor is to bid low on a project, sometimes at or below cost and then plan to make it up via change orders.This way the Contractor has its motive to beat the other bidders who are fairly involved in bidding process with the contract itself is the 'loss leader' and the change orders are the profits.The reason to do this is also they forsee the financial profits resulting from the non scheduled items and excess variation of Quanitites to do Overbilling. This results in Unethical practice.

A good practice to manage Change Orders is to review the project and its scope that will ensure any ambiguities, errors or omissions that might pose problems. Delays due to document revisions are less complicated and less costly to manage at the start of the process, rather than when construction is already well underway.