Case Study - What would you do? An ethics scenario.

A newly licensed condominium manager (manager), holding a general license has been working tirelessly all winter to obtain quotations for several projects that the board of directors would like to finish this year and that need to get started in early spring.

The largest project involves replacement of a large on-grade portion of the common element asphalt roadway. The manager has assembled 3 quotations to date and the average cost is close to $200,000. The corporation will not be using a consultant for this project. While on site conducting a site inspection, the manager runs into the president of the board of directors, and another director, who is always involved in every large project. During the informal discussion, the other director mentions that he is friends with a few of the directors that serve on the board of directors at the condominium next door. That director advises the manager and president that Level Paving did the exact same type of project at the corporation next door the last summer and the board was very happy. He instructs the manager to reach out to Level Paving and obtain a 4th quotation. The president doesn't say a word.

The manager contacts Level Paving and meets with the owner the following week. When they meet, the owner tells the manager that he wants them to look at a specific area of the road that is at the back of the complex and which abuts the neighboring condominium. When they arrive, the owner shows the manager that the sub-base in that area is full of clay and not stable and should be replaced. He lets the manager know that the other corporation had the same problem the previous year and it was discovered after the project got started. He tells the manager that the extra cost to repair the base was approximately $30,000, however he had to "charge a little extra for the board member that recommended him, if you know what I mean". The manager says he doesn't and asks the owner to clarify. The owner than says that he is good friends with the director from the manager's corporation that recommended him for this project and that he showed the director the area in question the previous weekend and says he is "on board, if you know what I mean". He also tells the manager that he paved the driveway of the owner of the condominium management company that the manager works for two years ago and knows the owner very well. The contractor doesn't provide any further clarification to the manager. When they are prepared to leave, the contractor asks the manager to go out for an early dinner at one of the very nice, and expensive steak houses around the corner to discuss the project in greater detail. The manager is at a loss of what to do, especially since the restaurant has amazing reviews.

The condominium manager has obtained 3 quotations and submits them on Friday to the board of directors as part of their management report for the board meeting to be held on Tuesday. At the meeting, the director that is friends with the owner of Level Paving presents the quote from Level Paving and it is lower than the other 3 and does not mention anything about the supposed faulty base materials.

Questions:

1. What ethical, or potential ethical issues can you identify in the above scenario?
2. Would you address your concerns with your supervisor?
3. Should you, and how would you, address your concerns with the board of directors?
4. Do you believe the owner of Level Paving has done anything wrong? Use your ethical issues above to describe why
5. Do you believe the owner the other director has done anything wrong? Use your ethical issues above to describe why.

Thank you!!