Construction Industry Whistleblowing Systems

Modern Slavery 

Most responsible construction firms have in place strict employment checks for new starters.  It is important however not to be complacent, documents can be forged, processes corrupted and even legitimate workers can be subjugated.  The ubiquity of agency staff and self-employment provides opportunity for perpetrators of modern slavery.  

Wages are easily redirected or accounts seized from vulnerable people.  It is also important to hold your suppliers to the same high standards you have implemented, as less reputable firms may turn a blind eye to labour abuses in order to be more competitive. 

It is vitally important that you have in place appropriate policies, practices, training and reporting to prevent labour abuse and modern slavery entering your workforce or supply chain. 

Health and Safety Breaches 

Health and Safety is clearly a vitally important subject to the construction industry due to the high-risk nature of some of the work which takes place.  Accordingly, organisations commit a great deal of effort to ensure that policies and procedures are in good shape and that they are updated regularly. Activities typically include risk assessments, effective training and provision of appropriate personal protective equipment. Unfortunately, incidents do still occur.  

A small number of incidents may be unavoidable, however some will result from breaches of Health and Safety arrangements.  Breaches are primarily the result of complacency, it is therefore important to ensure that on-boarding training is in place and refreshed throughout the period of employment.   

It is also important that you have appropriate reporting mechanisms in place.  The reporting of an incident presents an opportunity to prevent the incident reoccurring, whether that be refreshing policies and procedures, refreshing training or disciplinary action.   

Fraud, Bribery, Theft and Corruption 

The prevalence of short-term contracts amongst unskilled and semi-skilled workers makes oversight difficult and minimises the consequences of being caught. Typically, individuals suspected of acquisitive crime will simply be let-go without substantive investigation or formal disciplinary action. This allows the individual to simply move on with no record of the concern.

The vastly complex supply chains required by the construction industry also represent a fertile space for procurement fraud. Offers of kickbacks are common and attractive, resulting in inefficient and sometimes ineffective procurement and can cause substantial reputational damage. Bid rigging causes similar issues and ultimately inflated pricing. Disputes are also common arising from supplier low-balling practices.

Inventory theft is also a common way for workers to supplement their income. Stock is removed covertly, perhaps through over specification or written off as damaged, and sold on by the worker for personal gain.

Due to the complex movements of large amounts of money through small transactions, financial fraud also represents significant risk to construction firms through skimming and lapping schemes.

Bullying, Harassment, Racism and Discrimination

‘Banter’ is an important part of workplace culture and can build moral and camaraderie. When it goes too far however it can have the opposite effect and can be very damaging to workplace culture and productivity.

It is important to know the difference between teasing a new starter and bullying an individual which can cause real harm or detriment. Typically, behaviour becomes unacceptable when it takes place over an extended period, when it causes distress to the recipient(s). Unacceptable behaviour should be clearly set out in your Code of Conduct and your training.

In addition, it is important to provide means of reporting inappropriate behaviour in the workplace.