Gifts, bribes and kickbacks in the construction industry
Contents |
[edit] Introduction
A gift is an object, treat or sum of money given when appropriate as a token of thanks, celebration or appreciation, and with no expectation of a reciprocated reward: nothing is expected in return.
A bribe can involve giving a financial or other advantage in expectation of the recipient performing their function improperly and in a way that benefits the donor. Bribes attempt to curry favour and are regarded as unethical and are sometimes illegal. Bribes may be given to ‘grease the wheels of industry’ and often create conflicts of interest.
Recipients can determine whether something is a gift or bribe if they know what the expectation or purpose is. Where bribes are given, the value is usually irrelevant. What is important is the intent, and whether there is transparency.
In the UK, it is illegal to offer, promise, give, request, agree, receive or accept bribes – businesses can be protected by an anti-bribery policy, especially of they feel their employees may be exposed to bribes.
For more information see: Bribery Act.
[edit] An example
A buyer in a construction company may be given a lavish, no-expenses-spared day out at a sporting fixture by Company A. As a result, they subsequently offer Company A the contract to supply office lighting on a major office refurbishment.
The Bribery Act 2010 does not prohibit hospitality. However, even if the decision was made in earnest and Company A was indeed the most suitable supplier, the fact that the relationship existed may create the appearance of a conflict of interest. This may be partially overcome by showing full transparency in all such eventualities.
Generally, gifts should not be given during the tendering process, when negotiations are taking place or when a contract is being renewed. Thanking long-term customers is a common sentiment but it too can be perceived as a bribe. Companies must therefore be confident of why they are giving a gift and its timing.
Anti-bribery policies should include:
- The business’s approach to reducing and controlling the risks of bribery.
- Rules about accepting gifts, hospitality or donations.
- Guidance on how to conduct company business, e.g negotiating contracts.
- Rules on avoiding or stopping conflicts of interest.
[edit] Kickback
A kickback can be regarded as a backward bribe. For example, while a bribe may induce a party to be dishonest (i.e an inducement that is offered in advance of a state of affairs), a kickback occurs when a party gets money or some other reward after a state of affairs has materialised. An example would be a government official who approves a project and subsequently is rewarded by the project owner.
[edit] Related articles on Designing Buildings
Featured articles and news
Open industry engagement survey seeks responses
Institutions and the importance of engagement.
National Retrofit Hub unveils new guide
Digital Building Logbooks and Retrofit: An Introduction.
Top 50 firms awarded 52bn of projects in the last year
New engineering data shows.
Enhancing construction site reporting efficiency
Through digitisation and the digital revolution.
Noise in the built environment
BSRIA guide TG 20/2021.
17,000 people suffer conditions as a result of exposure to excessive noise at work.
Turning down the noise: Auditory health
A pervasive risk with far-reaching consequences.
Getting the most out of heat pumps and heating
How heat pumps work and how they work best.
Plumbing and heating for successful retrofit and renovation
Low temperature underfloor systems and heat pumps.
Cost-of-living crisis and home improvement plans
Starting on the right footing and top tips for projects.
Delays on construction projects
Types, mitigation and the acceleration of works.
From Chaucer to Fawlty Towers.
Electrotechnical excellence, now open for entries.
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.