Another ethical principle of the construction industry intervenes in fraud. Illegal or vague operating methods should not be accepted from subcontractors, customers or other parties, not to mention yourself.
Fraud and misrepresentation are clear examples of fraud. Fraud can appear as illegal and suspicious arrangements proposed by the other party, for example related to invoicing and records, tax evasion, undeclared work or bribery.
As an ethical principle of the construction industry, the circulation of fraud is defined as follows:
Turn the swindle from afar
Do not take or make an assignment that violates the law or is in conflict with the general understanding of law.
In the member survey of ethical principles conducted by the construction industry, as many as 68 percent of the respondents felt that there are no situations in projects where the contracting party proposes illegal or suspicious arrangements. A quarter of the respondents thought the phenomenon was rare, and less than 2 percent answered that these situations occur often or in all projects.
The numbers may seem surprising considering how generally there are unorganized operators in the construction industry, who tend to go where the fence is lowest. On the other hand, the set of questions described a situation where the contracting party actively proposes suspicious practices.
The open feedback mentioned, for example, cases where the consumer customer demands payment for the work performed in the dark. One of the respondents said that he had heard that the parish official suggested to the contractor that he accept part of the bill in cash, which, according to the respondent, did not happen.
However, often the fraudulent behavior of various actors is indirect and more difficult to detect.
In the free feedback, it was stated that contracts may be made with subcontractors, with whom things are okay only for a short time or for a while. It was also pointed out that there are still many companies on the market that do not pay overtime or other compensation in accordance with TES. An exceptionally low contract price should always be a warning sign and lead to thorough reasons for the offer and the offeror and, if necessary, rejection.
Bad guys can be hard to identify
In 2019, a national income register is coming into use, which will enable new and even more effective means of weeding out shady operators. Currently, for example, the Reliable Partner service maintained by Suomen Tilaajavastuu and the Construction Quality RALA help to find companies that handle their affairs responsibly. RT has founded both Tilaajavastuu and RALA together with other organizations in the real estate and construction industry.
In the member survey, almost three out of four respondents stated that they pay a lot of attention to the ethics and responsibility of their partners. Despite the good will, separating the wheat from the chaff is not always easy, but requires systematic and persistent work. This is also clear from the accompanying interview with Fira's production director Jari Koivu.
See also:
- Firan's Jari Koivu: "We don't want to have anything to do with lawbreakers"
- Ethical principles of the construction industry
More information
Merja Vuoripuro, Construction Industry RT ry
tel. 040 587 2642, merja.vuoripuro@rt.fi
Sari Puurtinen, Juuriharja Consulting Group Oy
tel. 040 676 3772, sari.puurtinen@juuriharja.fi
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