Customer Relationship Management and Business Law

Freshman (College 1st year) ・Business ・APA ・5 Sources

The process of maintaining the contractor-customer relationship urges all the parties to comply with the accepted terms and conditions of that any contract. Moreover, they must document and consent to the changes that may appear in the process of execution (Barrett, 2000). Hence, the sides are free of the obligatory agreements after full execution of the contractor's project, ensured by a proper review and pay from the client. This paper provides an in-depth analysis of contractor-customer relationship control, basing the study on various questions related to the subject. Description of the ethical issues that can result in contracting. Business contracts require that the parties involved observe an ethical framework that facilitates effective fulfillment of contractual obligations. Contractors should apply moral imperatives during the procurement process (Smith et al., 2003). However, the selfish desire for money has increased the rate of corruption raising an ethical dilemma in many organizations. Adverse impacts of such unethical issues, especially to customers, may result to delivery of poor quality products and services with high prices than expected. Hence the need to analysis the various ethical issues emerging in contracting.

Firstly, there can be conflict of interest that can result in legal consequences and poor ethical foundation. The managers should refrain from contracts directly or indirectly conflict with needs of customers. Most of them sign contracts with family members and business partners with the aim of increasing the contract price without a legally accepted consideration. The unfair competition is the other ethical issue that leads to under-pricing and poor quality of the executed project. Further, bribery and fraud is unethical element that has reduced the transparency and accountability of the assigned contracts. As a result, the contract may be performed by unqualified personnel and deliver or delay the completion leading to a poor relationship between the contractor and the customer (Smith et al., 2003).

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Analyze and discuss the strengths and weaknesses of the dispute process

When solving most disputes in contracts, the preferable approach is the negotiation process which, like any other conflict solution techniques, has strengths and weaknesses. The strengths include being flexible, reduces delays, cheap, it is a voluntary process and rebuilds and preserves the relationship between the contractor and the customer. It is preservative because it enhances communication between the two parties who can effectively understand each other’s differences. Moreover, negotiation is speedy and facilitates confidentiality since there is no publication of the matters discussed in coming up with a lasting dispute solution (Yasamis et al., 2002). Negotiation is flexible in that it allows resolution of both legal and non-legal issues that concern the parties and fosters a climate of openness.

On the other side, the weakness of this process include the power imbalances between the parties leads to a weak party agreeing to commitments that he/she cannot execute. Also, if they are not willing to continue with the negotiation, they cannot reach an agreement as the process does not compel them to continue until the end.

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Describe the importance of the communication process in the contractor-customer relationship.

The communication process is used to manage the connection between the contractor and the customer. Effective communication leads to proper and faster execution of contract obligations. It ensures coordination and cooperation whereby the contractor can fully understand what he/she should do to ensure completion of the project while the customer can be in a position to know the payments to make and the exact time (Torbica and Stroh, 2001). As a result, the completion, examination and payment processes become a cheap exercise to accomplish without any conflicts arising among the parties. Additionally, proper communication builds a positive attitude that gives an opportunity for the parties to seek clarification on all issues regarding the contract. Therefore, managers should develop and implement communication strategies that aid in proper message delivery to and flow to build better relations in contracting. Additionally, good communication creates a positive attitude that gives an opportunity for the parties to seek clarification on all issues concerning the contract.

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A description of the risks and responsibilities in the contractor-customer relationship

Contracting can expose an organization or the customer to risks that can lead to financial reputation harm. The risks may arise from situations such as breach of contract, data loss, fraud and error and breach of confidentiality. The most common risks in the contractor-customer relationship include strategic and reputation risks, geographical, compliance and transaction risks. Therefore, the management should ensure that they mitigate these risks by establishing policies that guide in handling dangers that relate to third party relationships. Hence, they can execute their contractual obligations through avoidance of the various occupational and process risks that hamper delivery of quality projects. The customers also can have confidence and trust that there will be on time completion of the contracts as per the agreed terms and conditions (Maloney, 2002).

The contract obliges the contractor with the responsibility of ensuring timely completion of the project and delivery of quality work that is free of defects. They should work carefully and act in the best interest of the customer and follow the established regulations and guidelines. Furthermore, they should keep the client informed before, during and after completion of the project. On the other hand, customers should, make the payments on time, ensure the contractor has the key competencies and resources for efficient execution of the contracts and confirm the registration and excellent standards of the contractor.


In conclusion, managing contractor-customer relationship is a function that requires parties involved to observe the ethical standards to build positive attitudes and trust. There is need to understand all the strengths of the dispute process and neutralize and overcome the challenges associated with the process. Moreover, it is advisable to use effective communication during the contract process to ensure a clear understanding of each party’s responsibilities and the risks that may arise.

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Barrett, P. (2000). Systems and relationships for construction quality: International Journal of Quality & Reliability Management. Vol. 17, 4/5, pp. 377-392.

Maloney, W.F. (2002). Construction product/service and customer satisfaction. Journal of Construction Engineering and Management, pp. 522-529.

Smith, A., Vuuren, L. V., &Visser, D. (2003). Client-Consultant Ethical Relationship Considerations within Management Consulting: SA Journal of Industrial Psychology, 29 (1), 83-92.

Torbica Z.M. and Stroh R.C. (2001). Customer Satisfaction in Home Building. Journal of Construction Engineering and Management. Jan/Feb, pp. 82-86.

Yasamis, F., Arditi, D. and Mohammadi, J. (2002). Assessing contractor quality performance: Construction Management and Economics, volume 20, pp. 211-223.

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