CIOB News


Chris Blythe


Who should control infrastructure?


CIOB presses for action on corruption Survey reveals that nearly half of respondents think it's common


Following the alarming fi ndings in the CIOB's new survey on corruption in construction (see page 14), the CIOB is to press government and agencies to deliver a more coordinated response to the problem, and urge the industry to put better anti-corruption training in place. Other recommendations include bolstering industry support for the international CoST (Construction Sector Transparency Initiative) scheme to allow it to extend its operations in the UK, and raising awareness of the levels of fraud and corruption through more coordinated data collection.


The CIOB's 2013 survey repeated an exercise last carried out in 2006, before the recession and austerity years, the OFT's cover-pricing investigation and the introduction of the Bribery Act 2010. But it revealed continuing high levels of corruption and fraud in the industry. Nearly half (48%) of the 701 respondents thought that corruption was either


extremely common or fairly common, and 35% said that they had been offered a bribe or incentive on at least one occasion. This fi gure was only 6% lower than 2006. Asked how levels of fraud and


corruption had changed in the past fi ve years, 21% thought they had increased, 30% said they had stayed the same and 25% thought fraud had decreased. But 50% thought that the UK


construction industry wasn't doing


“If the UK is going to live up to its rhetoric of being tough on corruption, government and industry must do more to show proof of progress."


CIOB report


enough to tackle the issue, and 55% thought the government should do more to prevent corrupt business practices. The survey does not attempt to defi ne


corruption, but the CIOB's report on its fi ndings covers a variety of issues, from cartel activity, bid rigging, bribes and invoice infl ation through to the theft of material from sites, the employment of illegal labour, and forging NVQ certifi cates to obtain CSCS cards. The CIOB's report warns that a lack of


data on the issue has led to a sense of complacency. “Our research indicates that bribery and corruption has, in part, risen as a result of the economic downturn. Despite this, measures aimed at tackling corruption, such as the Bribery Act, appear to have had limited effect, with no prosecutions against businesses taking place," said the report. "If the UK is going to live up to its rhetoric of being tough on corruption, the government and industry must do more to show proof of progress.” The survey revealed that only 23% of


respondents were aware of BS 10500, the british Standard Anti-Bribery Management System, which is promoted by the CIOB and British Standards Institute and adopted by Balfour Beatty. And only 52% of the sample reported


that their company had training and procedures in place to prevent bribery and corrupt activity, with 37% saying there were no such procedures.


Institute launches search for worldwide talent


A worldwide search for construction professionals who have progressed innovation and excellence is to be launched under a new international awards scheme run by the CIOB. The Institute is calling on


construction employers, clients and sponsors to nominate individuals who have achieved levels of success that far exceed expectations. As with the Construction Manager of the Year Awards, entries are encouraged from


both CIOB members and non- members. Non-members who reach the fi nal can directly apply for CIOB membership (MCIOB). The rigorous judging process


will involve face-to-face interviews for shortlisted candidates or interviews via video conferencing. Candidates are being sought


in nine different categories, with the winners in each group then competing for the title of “Outstanding Achiever 2014”. The nine categories are:


6 | OCTOBER 2013 | CONSTRUCTION MANAGER


● Procurement and Supply Chain Management ● Building Standards’ Management ● Design Management ● Facilities Management ● Health & Safety Management ● People Management ● Conservation & Adaptation Management ● Business Management ● Young Achiever Award The winning individuals will


be honoured at a gala event scheduled for May 2014.


Sir John Armitt’s report on taking infrastructure


outside politics through the introduction of an infrastructure


commission makes absolute sense. As well as creating a more visible pipeline, insulating infrastructure from the whims of politicians would stop such work ending up as a political football. Because it seems so sensible, it is


also why the idea will probably go no further. Politicians love infrastructure projects and the ability to say what goes where is a key part of the political process; it can win or lose votes. Hence I don’t see politicians giving up control of something so basic. The stalemate around Heathrow’s


third runway is as much about which MPs have seats nearby and their infl uence in the Cabinet, as about whether we need a bigger hub airport. The fact that the Armitt report was


commissioned by the Labour Party does not suggest that if Labour were in offi ce it would give up its power over infrastructure either. Even at a local level, it’s infrastructure


that drives political behaviour. It is not just about getting things built. As we see with Heathrow, it is as much about things not getting built. As for me, my head agrees with


Armitt, delivery of infrastructure could work so much better; but my heart is not with him. Keeping such decision- making with the politicians is about democratic accountability and, to paraphrase Churchill, democracy is not great, but it is the best we’ve got. With the EU having such direct


control over our lives, it is important that our politicians have some responsibility even if they muck it up at times. The real irritation is the faux consultations. This just opens the door for one judicial review after another. Twenty years ago, there were a


handful of judicial reviews a year, now there are thousands. It has become an industry in its own right. Relatively mundane matters have judicial review time added to the programme as a matter of course. It is no wonder that projects cost so much and it is the taxpayer picking up the tab yet again. I don’t know whether it is because


we have made processes so diffi cult that public authorities fi nd it hard to do things properly, or that nowadays people don’t feel that the way to deal with people who do things we don’t like is to vote them out of offi ce. It is unrealistic to have a mini plebiscite on everything. At the moment we have the worst of


all worlds, the unelected of all shapes and sizes telling the elected what to do.


FOR MEMBERS OF THE CIOB OCTOBER 2013


WWW.CONSTRUCTION-MANAGER.CO.UK


Dark side of the industry CIOB survey reveals members’ fears over a fl ourishing corruption culture


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CORRUPTION


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