N.K. Builders and Contractors - India

N.K. Builders and Contractors was a construction company newly formed by an experienced contractor and a young project manager. The project manager was very knowledgeable of the construction industry but not familiar with the bidding process for contracts; for this he relied heavily on the experience of his partner. The company's first project was a government contract that required the partners to go to the divisional office to apply for the tender, where they found out they were one of 15 interested in the highway project. The bidding process was similar to an auction, the highest bid won. Money generated from the highest bid was shared equally among the remaining contractors, and the higher the bid the more "commission" government officials received. Winning the contract is only the beginning. Once a company receives the project, they are expected to begin work within a month; however, many things can happen between winning and the completing of the contract and he would discover there would be a number of times when it would be necessary to pay various officials to proceed with the project. The project manager was disappointed in the way the company was awarded the project and now must decide if he should quit and lose the money he invested in the company or remain with the business.