I have heard from a couple of contractors lately telling me about invoices that came into their office that they knew little or nothing about. In checking with the guys that picked up the materials, they learned that some of the materials had gone to “side jobs” the guys were doing on nights and weekends. The employees claimed they had simply forgot to bring this to the contractor’s attention.

Now maybe it was an oversight, maybe not, but if you are a construction business owner, there is a lesson to be learned.

Review every invoice that comes into your business and crosscheck it to the job. Don’t rubber stamp anything. It is just too easy for materials to float from one job to another, and the other job may not be yours. Lumber and sheet materials are the most likely candidates.

I firmly believe that if you are employing someone full time, they should not be allowed to moonlight or do side jobs. If you are only giving them part time work, that’s another issue. But in either case, they should not be allowed to use your accounts to purchase materials for their jobs. They should also not be allowed to use your company tools on any job that is not for your company.

It’s not pleasant to consider that someone you trust would try to create additional “income” by something less than an honest means, but it happens and can happen to you. Be diligent and stay on top of it.

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Stacey
Stacey
February 26, 2009 10:39 pm

If you have employees that are doing side jobs with your discount on materials and using your company tools. Do yourself and them a favor and let them go, that way they will have even more time to look for more work and you can hire some one who wants to work for you and be a TEAM player.

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