The Liability Act has been in force in Finland since January 2007. It is starting to be a familiar thing now to many of us. Compliance with the act is often associated with the construction industry, although it applies to almost all industries.
If work is performed at the buyer’s premises or site, the requirements of the act must be complied with. However, if the limit values specified in the act are not exceeded, the Liability Act does not need to be applied. In subcontracting work, the limit values are determined by the monetary value of the order, while in rental work, the limit value is determined by the duration of the work.
Ordering equipment with installation work carried out at the buyer’s premises included, is often not understood as work where Liability Act applies. Do pay special attention to such orders to avoid negligence fees. The number of different documents and clarifications needed and the time it takes to gather it all may come as a surprise to foreign companies. They may not have been aware and able to take into account the time needed for administrative work at the bidding stage. It is not nice having to explain the increased costs to the contractor or the buyer.
It is very important for those who work in procurement to be familiar with the requirements of the Liability Act and the operating procedures of the supervising authority. It is always a good idea to find out about the requirements in advance and strengthen the responsible operations of the company.
I have come across a number of situations where companies have an idea that their liability matters are handled well and correctly. However, a deeper examination of the situation has revealed negligence in the document review processes and in the competence of staff. If the operating models of the company are not clear and consistent, staff may start doing things their own way.
For this reason, it is important to first understand what is required by the Liability Act and how it affects the company’s operations. Then it is possible to establish a good process and implement it in use for the company’s personnel. Using practical methods is important when training the personnel; the examples used need to be close to everyday work, that way what is learnt can be incorporated into day-to-day operations.
My recommendations for managing liability issues:
Compliance with the Liability Act is largely based on preliminary work done well. Invest in clarifying operating models, developing staff skills, and always have an open line of communication with the supervising authority. If you are unsure about the correctness of the policies, do not hesitate to check with the authorities.
Anticipation is wisdom that often also makes things easier and more prosperous. Both mentally and physically, from the perspective of the liability act and also other perspectives.
