Essay Questions

Essay Questions

Question No. 1:

What would you advice to Mr. Johnny Jones regarding the ramifications associated with being a subcontractor?

Answer:

The most important thing I would like to assure Mr. Johnny Jones is that the prime contractor is not able to terminate the subcontractor without any prior notifications. Moreover, the most important thing that Mr. Johnny must consider is that he must document all the dealings with his prime contractor so to avoid any misunderstandings in future. The government contracts provide statutory protections to not only the prime contractor but also to the subcontractors. The prime contractor is only allowed to closely watch the working standards of subcontractors.

Moreover, the ability of Mr. Johnny to directly protest issues and concerns through the various courts and agencies in not vary much encouraging. Usually suppliers and subcontractors who are involved in the process of protest are not awarded with 'interested party' status mainly because subcontractors and suppliers do not depict direct economic interest. Regarding the concerns of Mr. Johnny about the insolvency of prime contractor, I would like to assure him that the new laws like AIA provides all the rights to subcontractors to get paid in the events of prime contractor insolvency. The prime contractor is subject to tort liability, personal liability and even criminal penalties if the prime contractor gets engage in wrong activities which are against the contract. Subcontractors possess all the necessary rights in this regard.

Question No. 2:

What would you advice to Pacific Gravel regarding the choice of subcontractors?

Answer:

I would advise Pacific Gravel to choose the option of Joe Bob's Construction Company based in Arizona and owned and managed non minorities. I would like to give two reasons for this choice. The first and most apparent reason is that this company submitted the lowest bid. If Pacific Gravel ...