The possible ethical pitfalls are plentiful in an industry that already has a reputation for a less than perfect reputation. The issue begins in an underlying ethical egoism to win contracts. This means that competitors (contractors) have a high level of self-interest and a low level of concern for the interests of others. (Northouse, 2013) This is inherent due to a very competitive process in acquiring contracts to build projects. Most often it results in a low bid scenario where the lowest price offered wins the contract and that opens the door for “cheating” through techniques like bid shopping.
The evaluation of an ethical dilemma with respect to its end result is known as a teleological approach. (Northouse, 2013) Many times this is the only way to evaluate these situations. Another perspective is through a value-based theory which looks at the leader’s character more than their individual actions. This is difficult in construction due to the uniqueness of many situations and the vast presence of grey-areas. Just because I wouldn’t cheat in a game of cards does not necessarily mean that I would know whether or not to accept a gift basket or football tickets from a sub-contractor trying to win an upcoming job.
Of the five principles for ethical leadership, a construction manager must keep respect for others and justice close at all times. With respecting others “Persons must be treated as having their own… goals and never treated as a means to another’s personal goals.” (Beauchamp, 1988) This goes a long way in construction because it points out directly the conflict in bid shopping. For example a sub-contractor might be so motivated to get a job that they call the general contractor and ask what price the current winner is bidding so they can come in under it. If the general contractor caves in and reveals this information they are using both sub-contractors to achieve a smaller budget instead of respecting the goals of the first subcontractor who was currently, fairly winning. This situation is also very closely tied to ideals of fair play and justice.
Beauchamp, T.L., & Bowie, N.E., (1988) Ethical Theory and Business (3rd Ed.). Englewood Cliffs, NJ: Prentice Hall.
Northouse, P. G. (2013). Leadership: Theory and Practice (6th edition). Thousand Oaks, California: Sage Publications.