Blaming the subcontractor. I worked for EPI, a contractor that specialized in the construction of manufacturing plants. EPI does most of its own work but subcontracts for electrical and instrumentation systems.

Engineers at EPI prepare the drawings, estimate the required hardware, and issue subcontracts to the most competitive bidder. The subcontractor, generally a small company, orders the hardware three or four months in advance, because of long lead times. It then completes the construction under the supervision of EPI engineers. Upon reaching the construction site, I found that the installation drawings were wrong, and as a result the subcontractor had not procured some of the hardware. I reported this to George, top boss at the site, who instructed me to correct the drawings and hand over a list of additional hardware items to the subcontractor’s foreman. I was to tell the foreman that these items should have been ordered by the subcontractor. George explained that I must make it appear that the items were included in the initial hardware list, so that EPI could avoid paying the hefty cost (about $70,000) of expedited delivery of these items. In other words, George wanted me to cover up EPI’s mistake and get the subcontractor to pay the additional cost. Hint. First evaluate George’s action and then address the decision his subordinate must make.