Veidekke Entreprenør AS introduces a maximum of two stages of sub-contracting

 Information has recently been emerging indicating comprehensive evasion of legislation and regulations governing the building industry, particularly in the Oslo region. From what we understand from the authorities, this involves social dumping, money laundering, receiving stolen property and organised crime with international connections. These activities are often linked with sub-contractors and with the further outsourcing of jobs to many stages of sub-contracting.

Two stages of sub-contracting
" To get a better overview of the situation and to prevent our projects from becoming involved in such activities, Veidekke Entreprenør AS is now introducing a new rule that we shall have a maximum of two levels of sub-contracting," says Dag Andresen, Managing Director of Veidekke Entreprenør. This means that a chosen sub-contractor cannot let any job go more than one stage away from itself. Work on implementing the new routines is already in hand.  "The new rules will apply to future contracting and they shall apply to the whole of Veidekke Entreprenør. If any special cases arise where there is a particular need for more than two stages, this will require special dispensation," adds Andresen.

This corresponds to the rules that the Norwegian Public Roads Administration has decided to introduce and that the Norwegian United Federation of Trade Unions has given its support to.

Tightening up on checks when appointing sub-contractors
In addition to the new two-stage-only rule, Veidekke has also tightened up its routines for appointing sub-contractors. This will not mean any comprehensive changes, but ensuring that the routines and guidelines that already exist are strictly applied. "We recognise that social dumping and money laundering are a challenge for our industry, and for this reason we are also reviewing the routines that ensure that our partners are serious companies," concludes Andresen.

Photo: Jan Gunnar Fjeldstad, Byggeindustrien

For more information please contact:
President and CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no
Executive Vice President Dag Andresen, tel. +47 915 51 410, dag.andresen@veidekke.no
Communications director Grete Nykkelmo, tel. +47 913 11 000, grete.nykkelmo@veidekke.no

Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 20 billion (2012) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and crushed stone and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.