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Further Government Action To Eliminate Modern Slavery
FRI 08 MARCH 2013
Prime Minister, Minister for Finance and Deregulation
Canberra
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In brief: A new framework proposing a national best practice approach for governments for traditional contracting in infrastructure procurement has been issued. Partner Emma Warren (view CV) and Lawyer Fiona Borrelli report.
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Enews from Australian Construction Industry Forum
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Building Industry Bulletin, Issue 36, June 2013
 
  
Ethics is fashionable.  More than ever before, businesses are becoming more ethical with 93% of larger U.S. companies on the Standard & Poor 500 having a corporate ethics policy[1].  More employees find corporate codes useful in encouraging favourable ethical behaviour[2] and helping them apply the code frequently on the job.
 
  
You’ve been duped.  Few feelings are worse than the embarrassment of signing an agreement you thought was valuable for your company, but quickly festered into fraud. And your company is left with the expense and media exposure of what a third party did to deceive.
 
  
In November 2006 Siemens suffered a dawn raid. Several employees had created phony consultants' contracts, false bills and shell firms to pay massive bribes to win contracts. As UK employees in a different division, we could not believe any part of Siemens could be involved in bribery and corruption. Unfortunately we were wrong.
 
  
Staying ethical and surviving is an increasing threat to organizations for many reasons. No wonder companies worldwide are still cautious in accounting for various growth strategies as the economic conditions continue to stagnant in many parts of the world. In this environment, the pressure to grow profits conflicts with ethical business conduct, stressing all levels of the organization, particularly those managing third-party relationships.
 
  
Remember this: Edward Snowden Worked for a Third-Party Vendor.  While it remains uncertain what exactly Mr. Snowden shared with other nations, we do know this: he wasn’t authorized to disclose classified information.  Some may believe he is a hero, others believe he is a villain.  It is clear, though, that his employer, consulting firm Booz Allen, is the recipient of unwanted publicity.  The company is one of the more prominent government contractors supplying personnel to the intelligence community.
 
  
Within hours of the confession, Monu had pulled his legal team together to cooperate with investigators and begin the process of making difficult decisions to help ensure the survival of the business.
Although his memory is as fresh as if it happened yesterday, Monu’s perspective and hindsight dig deeper still with answers to questions like these:
What was it like to do contracts after the event?
What were the major challenges and what could have been done differently?
What measures helped you deal with the crisis?
 
  
Much of the basic work of a lawyer can now be undertaken far cheaper and on an outsourced basis, forcing a re-think of many services. Technology is also undermining tasks such as contract development and drafting. Compound that with demands for increasingly global intelligence plus the general disquiet over the level of fees and salaries, and you have irresistible pressure for change.
 
  
When you buy pens and paper you can purchase the cheapest and move on. But when you buy highly complex, developmental bomb sniffing or motion sensor technology, you must fully understand the market’s ability to meet your needs. 
 
  
To avoid this problem, a new strategy of incorporating CoCs into business contracts has developed. But the question is, does the contractual form actually remedy the deficiencies of the codes? And if not, is it still helpful to use contracts in this context?
 
  
A “prime contract” is a contract between a service provider and a customer to provide a service to the customer.  The “prime” is the service provider responsible for delivering all contracted services to the customer.
 
  
I was travelling on a train that crashed at high speed! Screeching brakes, impact, bumpy ride and ballast flying off the windows. Minutes passed with startled confusion until firefighters arrived. I watched as they quickly separated 1,000 pounds of dead cow from the front of the engine.  Oddly enough, it made me think about how firefighters and Contract Managers face the same plight.
 
  
Outline the content of the new ISO 55000 series of asset mamangement standard
 
  
ISO 55000 series of asset management standards