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
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).