Cable Contractor - Aishwarya - Anand - Solanki

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Problem Statement:

Chandran, a qualified electrical contractor was facing a financial as well as an ethical


dilemma over a contract of placing underground cables.
Analysis:

 Chandran secured a “cable contract for replacing faulty cable” and the time allotted
to him to complete the project was 21 days.
 The bidding process was conducted by NTNL and the lowest bid was given the
contract. Chandran secured that bid.
 The crisis started on the fourth day when Chandran realised the unusual hardness of
the soil because of the debris dumped careless over the ground.
 He was left with no choice but to use tractor driven drill machines which would lead
to an additional cost of 8% to his overall project cost and no provision was made to
deal with this unexpected cost hike.
 He managed to get 1.1 KV cable at a competitive price rate from M/S Nav Bharat
Cables Ltd. But to add to his despair due to a strike the company that promised to
supply cables to Chandran backed out and refused to provide cable on the pretext
that 18% was completely based on the assumption that new machines would be
used for manufacturing.
 Now, he was told by all the suppliers that the he would be required to pay a
premium of 12 % on the cost price if he wants the cable on an urgent basis.
 No profit and only loss were visible to Chandran.
 Chandran was blackmailed by Anand that failing to complete his work before the
stipulated deadline may lead to legal proceedings.
 Chandran was then thrown into an ethical dilemma by Raju who suggested him to
handover the project to Damodar who was solely an influential though corrupt
personality.
 Chandran was a man of principles and duping someone was against his ethics.

Recommendations:

 Chandran should have planned a budget keeping in mind all the possibilities and
forecasting in advance so that the magnitude of the problem could have been
reduced. Therefore, there was a lack of planning.
 He could have been less stringent ethically.

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