Tradesmen have an advantage when it comes to theft or fraud from an employer, or even a client. They operate remotely, travel about, do work that has flexible billing time and are allowed relatively free rein in the businesses they visit. They also are subject to less scrutiny than other employees, which is counterintuitive.
Excess supplies checked out
Evey billable visit to a customer should include a record of parts and supplies used, with a record of any faulty pieces. These should be returned to the shop daily, and recorded, so as to avoid fraudulent claims of usage.
Longer than scale on a job
Like a mechanic, there is a universal estimate of time to do a repair or replacement on many of the parts, equipment and components that a tradesman works on. While each job is different, every tradesman should have a balance between jobs that take longer than scale and those that take less. An employee or subcontractor who takes longer on all projects should be evaluated and monitored, to discover if he is padding his hours, doing extra work under the table for the client or is billing the client for work done for someone else for which he also is paid.
High mileage billed
With current software and apps, it is easy to calculate distances between calls. Employees are supposed to record all stops, for income tax purposes, including use of vehicles for personal use. Many subcontractors find that adding a few kilometers to each project billing can add up substantially. High mileage may also indicate that the tradesman is working on side jobs.
Vehicle tracker data
A vehicle tracker, often attached to the obd2 reader port, can provide instantaneous data on speed, location, stops, routes, etc. and can be saved and downloaded for later review. It is a strong deterrent to fraudulent claims and an excellent tool for discovering problems.
Monitor calls in and out
If you supply your employee with a phone, monitor the records of all calls in and out and the times. This will help you determine if he is receiving calls from private jobs or from your clients and is working “off the book.”
No breaks booked
A worrisome trend is if an employee does not book breaks. This may indicate he is working on other jobs, or is overbilling a current client.