Article on issues addressing a contracting issue - Essay Example

In this paper the study of Akintan & Morledge will be discussed with its potential use in the defense sector. In the particular sector the challenges for those involved in contracts can be many. By improving the relationship between contractors and sub-contractors in the above industry the risks related to the industry’s contracts would be significantly limited. For Akintan & Morledge (2013) the current structure of ‘traditional construction procurement’ (Akintan & Morledge 2013 p.1) favors main contractors.

Sub-contractors, in opposition, are left with no particular power to intervene in the construction process, even if the development of construction projects is quite demanding and the non-involvement of sub-contractors increases the risks for failures (Akintan & Morledge 2013, p.1). After highlighting the particular problem Akintan & Morledge (2013, p.2) present the benefits that the effective collaboration between contractors and sub-contractors would have in the construction industry. These benefits could also refer to other industries where a similar problem, i.e. poor collaboration between contractors and sub-contractors, appears.

At the next level, Akintan & Morledge (2013) try to analyze the potential causes for the conflicts developed between contractors and sub-contractors. Emphasis is given to the key criterion on which contractors tend to choose their sub-contractors: price (Akintan & Morledge 2013, p.3). Building a business relationship only on this criterion can result to many risks as no room is allowed for trust and communication to be developed (Akintan & Morledge 2013). Other practices of contractors that increase the chances for conflicts between them and sub-contractors are the following: a) too strict contracting terms, b) most of risks related to the contract are transferred to sub-contractors and c) the use of ‘professional stereotypes’ (Akintan & Morledge 2013, p.3); in the context of