Supporting Guidance: employer compliance: guidance by subject: construction industry scheme (CIS): following the risk
A contractor or subcontractor within the Construction Industry does not operate in isolation.
A contractor is likely to receive work from other businesses within the construction industry (other contractors).
A subcontractor may undertake work for several construction businesses (contractors).
A business can be a contractor when providing work to others and a subcontractor when carrying out work for others.
These links between different businesses within the industry mean that a risk in one business may indicate a likelihood of that risk occurring in another business linked to it.
For example if a subcontractor is using someone else’s identity to work for one contractor it is likely that he is doing the same with other contractors for whom he works. Likewise if a subcontractor is receiving gross payments from a contractor when the payments should be made net it is possible that that contractor is incorrectly making payments gross to other subcontractors engaged by him.
CI Caseworkers must
- build up a picture of how the contractor / subcontractor operates
- consider the full extent of any risk - contractor or subcontractor
- consider whether the risk is likely to occur in other linked businesses and
- make a referral to RISK where risks are apparent in other businesses.
Examples of how this could arise are attached.