The contractor's consultancy offer
You are the client's project monitor on a £6m refurbishment of a listed hotel. The contractor is three weeks behind and has submitted a £420,000 interim payment application. Its commercial manager tells you the fire-door certificates are 'coming next week' but asks you to approve the payment now. He offers you a £7,500 'consultancy fee' through a friend's company and two hospitality tickets for a major sporting event, saying 'everyone does this; it keeps the job moving'. You know the funder will release the next tranche only if the payment is certified, and the contractor has already paid two subcontractors late. Your employer's gift and hospitality register has no entry for the tickets. The commercial manager asks you to keep the arrangement confidential.
1. Identify the ethical and legal issues raised by the contractor's offer.
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The £7,500 payment through a friend's company is a secret commission intended to influence my certification; the hospitality tickets are an inducement. Together they raise bribery under the Bribery Act 2010, breach Rule 1 (honesty and integrity) and Rule 5 (public interest). I am also in a conflict between the contractor's interests and my duty to the client and funder. Approving £420,000 without the fire-door certificates would be certifying without evidence and could cause loss to the funder and safety risk in a listed hotel. The request for confidentiality and the phrase 'everyone does this' are red flags, not reassurance. The fact that the contractor is behind and has paid subcontractors late increases the pressure but does not justify approving a weak application. The gift and hospitality register has no entry, so accepting the tickets would also breach my employer's procedures.
2. What should you do immediately?
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I would refuse the payment and the tickets clearly, without ambiguity, and not accept any 'consultancy' arrangement. I would record the offer in writing, including date, time, amount and the request for confidentiality, and report it to my employer's compliance or ethics lead. I would assess the £420,000 application only against the contract and the evidence; without the fire-door certificates and other required documentation, I would not certify it. I would tell the contractor that the missing certificates must be provided and that the certification decision will be based on evidence. I would avoid lone meetings with the commercial manager and keep the client and funder informed of any delay caused by missing information. I would consider whether the offer should be reported to the police or another authority, and take advice before doing so. I would not let the funder's tranche timetable override the evidence.
3. What reporting obligations arise, and how should you manage the relationship with the contractor?
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I would report internally first, because my employer needs to protect the client and manage the contract. Depending on the firm's policy and the seriousness, the client and funder may need to be told that an improper offer was made. Bribery is a criminal offence, so I would consider reporting to the police or the National Crime Agency and take legal advice; I would also consider whether RICS needs to be informed if the conduct affects professional standards. I would not make a SAR unless there is suspicion of money laundering, but I would not ignore the bribery risk. For the relationship, I would keep all communications formal, have another colleague present at meetings, and continue to certify only on documented evidence. I would not allow the contractor to think the offer is still open. If the contractor retaliates or the firm tries to suppress the report, I would escalate further.