Construction firm was the low price bidder on plan

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Reference no: EM131375347

Your construction firm was the low price bidder on a plan to build three new runways at an airport. After winning the contract, you assured the airport commissioner that your work would far exceed the minimum quality specs in the contract. However, a test of the batch of concrete for the second runway shows that it’s not as strong as the concrete you’ve been using. It does exceed the specs in the contract, but barely. Throwing the concrete away would eat up most of the profit expected from the job and also delay the airport in using the runway. There are various options. You could proceed with the project and be quiet about it, or perhaps call the commissioner and ask for quick approval. Alternatively, you could proceed but later admit what happened. With or without approval, you could offer a special warranty. Explain what you would do. What, if anything, would you say to your employees about your decision.

Reference no: EM131375347

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