Kojamo has a zero tolerance policy concerning the grey economy, and the operating models we use to combat the grey economy exceed the legislative requirements in many respects. We emphasise the importance of choosing responsible business partners to prevent potential problems from arising.
“We do not accept any vagueness or obscurity in the background information of companies when we are selecting a new partner,” says Pasi Kujansuu, Director of the Property Services unit. “Each partner must be in full compliance with the Contractor’s Obligations Act, and we also closely investigate the background of each potential partner company and its key personnel. We also contact the previous customers of potential new partners to find out what their experiences have been. We try to identify the most cost-effective and reliable partner.”
As finding new partners can sometimes be a long process, we aim to build long-term relationships with reliable partners. Suppliers and their supply chains are required to be committed to combating the grey economy and operating responsibly and with high quality in line with the relevant legislation and Kojamo’s own principles.
When cooperation has begun, the contractual relationship is continuously monitored in many ways based on our auditing models. For example, we monitor that ordering and invoicing practices are in line with what was agreed.
We take immediate action in response to potential problems – no matter how small – and immediately suspend our relationship with the supplier until the problem has been addressed.
The careful selection of partners means that we rarely encounter problems involving the grey economy. We take immediate action in response to potential problems – no matter how small – and immediately suspend our relationship with the supplier until the problem has been addressed. Our system continuously monitors our partners’ information pertaining to the Contractor’s Obligations Act. If the system notifies us of any discrepancies or issues, we contact the partner in question without delay. In most cases, the partner quickly resolves the issue and operations can continue without disruption.
Kujansuu says the prevention of the grey economy in Finland has developed in a good direction. The strong application of the Contractor’s Obligations Act has provided construction contractors with concrete and effective tools. Digital services have made contractors’ monitoring activities more effective.
“The construction sector obligation to inform the tax authorities has also been significant. These issues are now very well managed, especially among the major players. Nevertheless, it is also important for us to engage in our own monitoring activities at construction sites,” Kujansuu points out. “Our contracts stipulate that subcontracting must always be separately agreed upon. Using chains of subcontractors is not allowed.”
The exceptional circumstances created by COVID-19 have not had much of an impact on Kojamo’s supply chains or construction sites.
“It was important that we did not stop ordering work as the pandemic spread, and we have made every effort to keep our operations going. Had we slowed down, it would likely have had serious effects on society,” Kujansuu adds.