custom-designed home, FD, the prime contractor, realized he was not going to make the big profit that he had anticipated due to the many unique features of the home for which he had not correctly estimated the cost to the owners. The contract was fixed-price with no more than 10% override on the total cost. As time proceeded, FD took the choices of the owners on appliances, finishing work on the floors and walls, and many other features and purchased look-alike substitutes from questionable-quality, internationallybased manufacturers and vendors. After living in the house for only 3 years, the owners were so disappointed with the quality of work that they decided to bring a law suit against FD and his company for breach of contract. However, they needed sound reasons upon which to base their legal claims against FD, were the case to go to court. One of the owners, being an engineer, decided to consult the Code of Ethics for Engineers to gain insight into what may be substantial violations performed during the construction phase. (a) Help the owners by suggesting Code violations and provide a brief logic as to why each one sited from the Code may be a sound basis for legal action. (b) Discuss the applicability to this situation of the Engineer’s Code of Ethics. (c) Suggest other resources that may be of use to the owners as they ponder legal action.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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custom-designed home, FD, the prime contractor, realized
he was not going to make the big profit that he
had anticipated due to the many unique features of
the home for which he had not correctly estimated the
cost to the owners. The contract was fixed-price with
no more than 10% override on the total cost. As time
proceeded, FD took the choices of the owners on appliances,
finishing work on the floors and walls, and
many other features and purchased look-alike substitutes
from questionable-quality, internationallybased
manufacturers and vendors.
After living in the house for only 3 years, the
owners were so disappointed with the quality of
work that they decided to bring a law suit against
FD and his company for breach of contract. However,
they needed sound reasons upon which to
base their legal claims against FD, were the case to
go to court. One of the owners, being an engineer,
decided to consult the Code of Ethics for Engineers
to gain insight into what may be substantial violations
performed during the construction phase.
(a) Help the owners by suggesting Code violations
and provide a brief logic as to why each
one sited from the Code may be a sound basis
for legal action.
(b) Discuss the applicability to this situation of
the Engineer’s Code of Ethics.
(c) Suggest other resources that may be of use to
the owners as they ponder legal action.

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