Ethical and Risk Aspects of Deep Foundation Subcontracts

"In the last decade, the construction industry has witnessed significant changes in the project delivery systems and contractual relationships between the general contractors (GC) and Deep Foundation Specialty Contractors. The Deep Foundation industry, especially including industry specialty subcontractors, have experienced a significant increase in requests that project risks be transferred through contract documents to subcontractors and suppliers with a decrease in margins for the industry. GCs regularly revise their form subcontracts to take into account recent experiences/contractual trends and newly issued judicial precedent, an exercise that is less frequently undertaken by subcontractors and suppliers. These contradictory trends are at the base of the ethical analysis of subcontracts that comprises the subject matter of this paper. Using contracts as a risk management tool in order to mitigate the general contractor’s risks in the context of dynamic changes in the legislative environment will also be addressed. Furthermore, another possibility for risk mitigation for the industry is to actively promote the introduction of the latest technical developments into the contract documents.CONTRACTS’ ETHICSFor thousands of years, ethics have been a constant presence in our lives and have been debated by different branches of philosophy. In modern times, ethics in business started to be an imperative for the success of a globalized economy.“Ethics are standards by which one should act based on values. Values are code beliefs such as duty, honor, and integrity that motivate attitudes and actions.” (Rumbaugh 2004). Some of these values and actions have been carved in legislation in general and in business legislation in particular. More and more, unethical business practices (e.g., corruption) are identified as the root cause of poverty, underdevelopment, and war around the world. In the context of contract ethics, three aspects are of interest:•,Ethics of contract construction•,Ethics of contracting processes•,Ethics of risk allocation in contracts"