After spending $400,000 to build your dream home, you recently discovered that after less than one year the foundation is cracking. Further investigation reveals that the contractor used substandard concrete. Is there a role for the public sector in this situation?
Answer: No; public sector doesn’t have any role.
This is the real estate market and the market is free from any sort of government intervention (except in the adverse situation). Public sector, on the other hand, is the government-owned business establishment. Since real estate market has private ownership, the public sector has no business here.
This is an unethical conduct done by the contactor, since $400,000 taken but used inferior materials in construction. The home-owner can get legal protection through court but more importantly this type of situation actually reduces goodwill of the contractor in the market – next time onwards the person may not get business.
After spending $400,000 to build your dream home, you recently discovered that after less than one...