From 2005, industrial accidents have decreased by 35%, while the construction industry indicated a rise of 5.6%. Fatalities also rose to 60% during this period. .
Consider Bid Shopping, Reverse Auctions and Overbilling.
In the construction industry, bid, shopping happens for different reasons. These reasons include the inability of subcontractor to link contractor to bid. Notably, the common law does not allow the contractor to obligate to any contract with subcontractor. In contractor's native bid, subcontractor's tender is used though this does not allow working in reverse. Submitted bid bounds the subcontractors to the contractor unless serious unavoidable circumstances stop him from conducting the work (Sammeck, 2012). These circumstances include loss of key personnel, binding, or severe penalties preventing future business. Another reason leading to occurrence of bid shopping is that contractors need to save time when they are preparing bids. The third reason is future price increases, design omissions, saving money once the project is awarded, underbidding work items, and compensating for craft worker mistakes. Newer contractor are the known for bid shopping because they think they will not get contract due to lack of status since they are new to the market. Bid shopping to companies that are desperate for job, hence underbidding projects so as to keep their workers busy and prevent financial destruction of the company.
Bid shopping, over billing, and reverse auctions are some of the issues that do not seem unethical to people. A survey conducted showed that 94% of people see bid shopping as unethical. In reverse auction 20% of people think it is unethical (Ross, 2012). This is different with bid shopping because in reverse auction very few agreed that it was unethical. Bid shopping because lack of collaboration and trust hence a contentious atmosphere among subcontractors, owners, and contractors.