The Bribery Act: Implications for major capital projects

Much has been written and discussed about the new Bribery Act. The implications of failure to meet its requirements are by now well understood by most clients. The Act talks about the existence of 'adequate procedures' as a mitigating factor to non-compliance. However the effort required to implement these adequate procedures may not be being carried out in conjunction with an integrated fraud management strategy, our research suggests.

The Association of Certified Fraud Examiners estimates that 5% of costs arise from fraudulent activities. On a major construction project this could amount to many millions of pounds. There is therefore a commercial opportunity to drive down these costs by implementing adequate procedures. 

The most effective way to reduce these costs is to undertake measures to deter fraudulent activity. The active detection of fraud is often difficult as by its very nature it involves some form of deception.

Ways to deter fraud are:

• to put in place an effective 'tone from the top'
• to publicise the measures that your organisation is taking to identify and deal with fraudulent activity
• to create a culture in which individuals feel empowered to speak up when they suspect something is wrong

It is often difficult to see the effect of money spent on fraud management and putting in place adequate procedures. However the returns can be enormous.

For more information call +44 (0)20 8898 6447
or send your enquiry.