Social Objectives in Contract Design

The process of designing contracts is critical and incorporates numerous parameters, including sustainability, costs, and legal obligations. When contracting, organizations need to consider the competitive advantage of the local society over other bidders from the external environment ( Curry, 2016). However, critics cite the demerits of utilizing local contracting at the expense of external with rationales like the local contractors' future limitations in the outside world. This paper discusses the advantages and disadvantages of including social objectives in the contract design, focusing on green contracting. Green contracting is one that promotes a less adverse impact on the environment. The appropriate criteria regarded in attaining green contractors include high proposal evaluation scores for contractors with commodities and projects of minimal harmful products. They should also be equipped with operations that maximize the recycling of waste and proper waste disposal. First, it is advantageous to consider social objectives in the contract design to retain financial benefits to the immediate community. This advantage is also shared by school board members of Toledo Public Schools, who prefer locals to be awarded contracts, resulting in the taxpayers' funds being utilized in the same locality (Curry, 2016). Given that the contractors are working in their own homes, there is also a great possibility of safeguarding the environment more than strangers during the operations' execution. Besides, including social objectives in a contract design improves the living standards of the community. When contracts are given to locality, natives gain the opportunity to work and earn a living. The workers who own and value their well-made society cannot be tempted to vandalize it in waste disposal and recycling. Besides, the local employees' earned money can be utilized in improving individual lifestyles (Curry, 2016). However, including social objectives in the contract design can also hurt the environment. Some local contractors place lower bids, and if awarded contracts, they may have inadequate funds to manage environmental hazards. Also, local contractors in society may not be competent enough to execute projects, thus leading to unsustainable practices (Curry, 2016). Besides, when the locals are prioritized in contracts, they lack a market in the outside world as the external community may react in revenge. As explained by Kevin Smith, parochial stops others from absorbing their own contractors elsewhere. 

Reference 

Curry, W. S. (2016).  Government contracting: Promises and perils. Routledge.