Masonry Magazine August 2006 Page. 22
THEFT DETERRENCE
"We need to get some conformity so we can all talk about this and know what we're describing," Scafidi said. "Proper ID-that's the first step toward recovery."
A Heavy Price to Pay
ONE OF THE MOST TROUBLING ASPECTS of construction theft is the amount stolen by employees. "Sixty percent of thefts are internal," explained DeMoss, a former police officer and private investigator who now offers seminars on construction site theft control. "The construction industry is seasonal. [Employees] know they're going to get laid off. Before the job is over, the trade is being hit. It may not be the person working, but a friend who knows what tools and equipment are being used."
Sider agreed. "I think most of the theft is from employees of the company who know the vulnerability of the company and want to make some extra money," he said.
Obviously, employees aren't the only ones stealing. Professional thieves are preying and thriving - on construction equipment. In some instances, professional thieves are given a list of equipment to steal, and they do just that.
"There are two kinds of thieves. The first is impulsive; they're seeing something going by and they steal it. It's 'smash and grab. The second is the intentional thief, they're stealing for a market," DeMoss said. "A lot of it is 'steal to order."
The bottom line for contractors is that the thefts are costing them big money, and in more ways than one. "If you get hit enough, you're going to have very big [insurance] deductibles," DeMoss noted.
NER's Sider said that, aside from the cost of lost equipment, contractors suffer another $300 million to $1 billion in related losses, such as down time filling out reports, lost man hours waiting for equipment replacements, scheduling conflicts, and losses or penalties for not finishing the project on time.
"Not only do you have the theft, you have the business interruption," Sider said. "I have been told that the cost of theft is factored into the cost of the job."
Indeed, contractors have had to raise their prices to recoup their theft losses.
"The real reason the home prices are rising so rapidly is not market driven. A huge portion is theft driven," Brown stated. "You have to recover what's stolen on the next job. You only get so much from the insurance company."
The problem is significant enough that it has forced contractors out of business and not just small outfits. "I've seen one of the largest contractors go under because of theft," Brown said. "It could make or break a contractor."
Theft-related losses can be fatal for any contractor operating on a tight budget. "Some of these companies, their margins aren't that great that they can sustain this type of loss," Scafidi said. "When they go to work, they expect the equipment to be there."
Low Cost Theft Deterrence
AS DIRE AS THE SITUATION SOUNDS, experts say simple, inexpensive precautions can help protect tools and equipment. Scafidi recommends writing down the identification number and taking a picture of each piece of equipment.
"Today, with digital cameras, it's very easy to do," he said. The NICB, which works with the police, impound lots, insurers and others to recover stolen equipment, has recovered items valued at hundreds of thousands of dollars.
Another inexpensive precaution is to make sure employees know that the boss is paying attention. Once employees realize their bosses are serious about protecting their equipment, it will reduce internal stealing, DeMoss said.
"Your employees know if you have a system in place to write down serial numbers and control numbers," he said. "If they see it, they know it's being monitored. You've got to put an internal control system in place."
NER, which has also recovered millions of dollars in equipment, has developed national databases of equipment theft and ownership records that are provided to police.
"It's a cost-effective tool," Sider said. "A thief can't take the item off the database."
An extra bonus, some insurance companies are now offering discounts for safety measures, Brown said.
He also added that contractors have a responsibility to report thefts and be diligent about pursing thieves. "Seventy-five percent of thefts that are occurring are not being reported," he said. "Contractors aren't reporting the stealing. They get all excited at the moment. After a day or two goes by, they don't pursue it."
Proactive public relations can also be an effective theft deterrent, DeMoss said. He advises contractors to inform local police about their projects, set up a 24-hour hotline for suspicious activity on the job site, and hand out company brochures to local busi-