Legal and Ethical Considerations - Research Paper Example

The document is significant because both the contractor and the client are protected in terms of legal and ethical issues. Contracts provide terms and conditions that are either verbal or written (Susan and Katherine, 2000). In this context, we review how conflicts arise due to disagreements between the client and the contractor whereby part of the crucial details has been omitted in the contract documents and; therefore, this eventually affects the progress of the intended project.

In the project, that is intended to help the community and the hospital by the provision of water supply whereby a water reservoir is to built, the contractor and the management team of the BAMC disagree on the ongoing project of reservoir construction. The disagreement occurred because the location of the reservoir is situated on hard granite rocks that require expertise and heavy machinery to blast the rocks before construction is commenced. . Some of the mutual solutions that the contractor and the management team decided include the relocation of the reservoir site.

The reservoir is supposed to help the community and the hospital; therefore, the location should be at a central location. On the other side, if the entire location is composed of the hard rocks, then the management personnel of BAMC should reconsider the compensation of the contractors because the rocky place will require heavy machinery for blasting the rocks and this may be quite costly to the contractors. For a consensus to be achieved, both parties need to comply to the need of the other so that no party feels oppressed.

A matter of vast concern to contractors is how they can make stability between quality and security against expenditure. Contractors want to plan a product that is of high quality but the business administrators want to maintain a low cost in the expense of quality product. At the end of this, various issues, which include business, official, and ethical issues, arise (Creswell, 2002). The business matters evolve around what organizations must do in order to compete in the business sector.

The officially authorized and moral issues centers around what the organization should do. The contractor has a legal responsibility to grant safe services and products. However, the contractor is legally responsible only for contractual indemnity and not for any additional destruction that the client may incur. Although if the contractor commits fraud deliberately, then he or she may be criminally accountable for the fraud committed. There are various challenges that are facing