|
The next step is to start looking for areas of vulnerability. Here's a list of prevention measures whistle-blower Noelle Tarabulski recommends:
1. When hiring, review résumés for evidence of job-hopping. Try to avoid it in construction and accounts payable positions.
2. Do driver's license and criminal record checks on all applicants.
3. In interviews, discuss issues of ethics, and ask the candidate to discuss anything experienced in the past.
4. Do not let superintendents manage money.
5. Variances above $500 should require sign-off of the owner or president.
6. Review variance purchase orders weekly.
7. Estimator cannot change original budget once submitted to accounting.
8. Where site conditions call for special measures, require digital photos documenting the need.
9. When moving dirt, be sure all loads are ticketed and digital photos are taken before and after.
10. Require two people from the firm to be involved in all movement of large quantities of dirt.
11. Concrete and foundation variances must be accounted for with photos, tickets and a take-off by an estimator.
12. Have clear control over vendor input into the accounting system to avoid dummy vendors.
13. Have random, unannounced internal audits done occasionally by outside accountants.
14. Have a written supplier bill of rights and encourage trades and suppliers to report unusual demands directly to owner.
15. Set up either a full purchase-order-and-variance system or invoice-over-budget system.
Advertisement
Related Stories
Hamlet Homes' Mike Brodsky on Finding Successors and Letting Go
A transition that involved a national executive search, an employee buyout, and Builder 20 group mentorship to save the deal
Time-Machine Lessons
We ask custom builders: If you could redo your first house or revisit the first years of running your business, what would you do differently?
Back Story: Green Gables Opens Up Every Aspect of its Design/Build Process to Clients
"You never want to get to the next phase and realize somebody's not happy."