6 Pacific Builders has a design-build contract for the design and construction of a medical office building. Major subcontractors were selected during the contract procurement process to enable collaboration with designers during design development. The design-build contract was awarded using a negotiated procurement process involving the submission of lump-sum cost proposals. Building performance criteria were specified in the request for proposals and have been incorporated into the design-build contract.

Prior to starting construction of the project, the completed design was submitted to the project owner for review and approval. During procurement of the building envelope materials by the envelope subcontractor, it was determined that the lowest price for the desired materials exceeded the project budget allowance. To stay within the budget, Pacific Builders’ project manager directed the envelope subcontractor to find alternative materials that would meet the budget allowance. In making the decision, the project manager did not discuss the situation with the project designer or project owner.

• Were the actions of the project manager ethical?

• How would you have handled the situation?