![\"Money\"](\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2019\/01\/0cbe2242fc3278afa8df4ddee5e9fb5b.png\")
Do kickbacks and excessive entertainment really exist?<\/h2>\nDo kickbacks and excessive entertainment really exist?<\/h2>\n\"I often hear that kickbacks and excessive entertainment are commonplace in the construction industry, but what's the reality?\"<\/p>\n
People who don\u2019t work in the industry have started asking me this kind of question more often. Every time they do, I can\u2019t help but feel disappointed, thinking to myself, \u201cSo that\u2019s the image people have of the construction industry\u2026\u201d<\/p>\n
Do such acts actually exist?<\/p>\n
Let me get straight to the point. It definitely exists.<\/p>\n
I haven't seen it myself, but I often hear stories like that. It seems there are still many people, especially in regional and rural areas, who resort to such tactics to land jobs.<\/p>\n
It\u2019s not uncommon to hear stories about companies providing excessive entertainment to executives at prime contractors in order to secure work and be allowed to participate in construction projects as subcontractors.<\/p>\n
In fact, just the other day, reports of excessive entertainment expenses by a major general contractor were exposed, sparking a great deal of discussion in the construction industry.<\/p>\n
While the nature of these entertainment expenses\u2014such as visits to hostess clubs and high-end adult entertainment establishments\u2014was quite unscrupulous, excessive entertainment expenses in regional areas are much the same. The reality is that such entertainment often takes the form of nightlife activities like hostess clubs and adult entertainment establishments.<\/p>\n
Unlike entertainment expenses, how exactly are kickbacks\u2014where site supervisors and executives directly pocket the money\u2014actually carried out?<\/p>\n
According to what I\u2019ve heard from industry insiders, they apparently submit site invoices with the amount of kickbacks added as business expenses. In addition, in rural areas, there were apparently transactions where people would bring envelopes containing cash directly to the site and hand them over at the site office.<\/p>\n
After all, even if a subcontractor paid a cash kickback to someone at the general contractor, you\u2019d think the money would be flagged as unaccounted-for funds and its whereabouts investigated\u2014but apparently, such brazen transactions did take place.<\/p>\n
The specific amounts of the kickbacks are reportedly around 500,000 yen for kickbacks to site supervisors, while kickbacks to executives of the general contractor run into the millions.<\/p>\n
Honestly, it's just like something out of a movie or TV show...<\/p>\n
I am absolutely convinced that this kind of misconduct is still taking place today. That\u2019s because I\u2019ve actually been approached about it myself.<\/p>\n
I\u2019m technically a site supervisor for a general contractor. An acquaintance at a civil engineering firm once asked me, \u201cI\u2019ll give you a kickback\u2014could you find a way to pass this job on to us?\u201d<\/p>\n
Of course, I declined the offer, but it still made me realize once again that transactions like this are happening right under my nose, and it scared me a little.<\/p>\n
I\u2019ve also heard that, during bidding processes and the like, people have colluded with city hall officials to use slush funds and win construction contracts through fraudulent means, but I can\u2019t say for certain whether this is true.<\/p>\n
Ultimately, the one thing that can be said across the board is that even if you get a job through underhanded means, it won't last long.<\/p>\n
If a company accepts kickbacks, it will become a habit, and the recipient will continue to demand kickbacks. For subcontractors, too, if they are constantly paying kickbacks or providing excessive entertainment, it will naturally put a strain on their finances.<\/p>\n
Furthermore, if any problems arise, it\u2019s easy to immediately draw resentment. If, for whatever reason, a company is unable to secure even a single subcontracting job, it will face resentment\u2014with people saying, \u201cBut we\u2019re paying kickbacks\u201d\u2014and in the worst-case scenario, this could lead to the scandal being exposed. In fact, this was the cause behind the discovery of fraudulent dealings at a major general contractor.<\/p>\n
It is extremely important to take a long-term view when trading so that you don\u2019t ruin your life for the sake of a momentary desire. Naturally, even if you see such trades happening around you, you must never get involved.<\/p>\n
<\/p>\n