4 A general contractor is developing a proposal for the construction of a medical clinic. Since the contract will be executed prior to the completion of design, the contract will be negotiated on a cost-plusfixed-

fee basis with a guaranteed maximum price. There is significant site work required for the project, and the contractor has decided to ask five subcontractors for quotations for the site work bid package.

The contractor’s estimator received the five quotations and upon review determined that the preferred subcontractor did not submit the lowest price. The estimator then contacted the preferred site work subcontractor, told them that their price was 10 percent higher than the lowest quotation received, and asked the subcontractor if they would like to lower their price by 10 percent in order to receive the subcontract.

 Were the actions of the general contractor’s estimator ethical?

 If you were the subcontractor who was contacted, what would be your reaction?