Compliance is Addressing a Problem Before it Becomes an Issue
Updated: Dec 28, 2022
Construction companies at a minimum should elect or designate a Compliance Officer, usually a Fraud Examiner with a background in finance to act as a "go-between" for contractors on the project and the owner/management team. The Compliance Officer/Fraud Examiner should not only conduct initial investigations but also conduct regular ongoing reviews as well.
It's a widely accepted principle that continuous monitoring to include unannounced visits is a simple way to decrease the likelihood of fraud. Your Compliance Officer should have the power to conduct periodic audits and be able to review payrolls, invoices, and contracts.
Duties of the Compliance Officer should include:
Making sure due diligence screening becomes a requirement for any company or subcontractor you choose to do business with.
Manage due diligence efforts, create internal controls where needed and to conduct regular, ongoing reviews.
The compliance officer should be empowered to analyze payroll, invoices and contracts, and should have access to everyone on the job site.
The Compliance officer should make both announced and unannounced job site visits to ensure fraud prevention measures to include material and theft controls which have been recommended are in fact implemented.
Jerry at Ipsen Due Diligence offers these services to construction companies and developers looking to have someone on the ground who keeps "their" best interests at heart.