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Real Estate & Construction

Fighting fraud in construction

Time for a new direction: Fighting fraud in construction

The presence of fraud and corruption in construction can take many forms; from falsely representing the number of hours a contractor works, through to collusion when bidding for contracts or paying bribes to secure a contract. These inevitably increase costs and, in the case of bribes, inflate the contract price.

However, fraud does not have to be a cost of business. The report says that more construction companies need to wake up and recognise that fraud and corruption costs, in terms of profits and a company’s reputation. It’s a real threat to growth.

The report makes a range of recommendations to the construction industry to help it avoid it being the weak link in the fight against fraud including a phased five-step protection process; and a robust programme of tests, responsibilities and corrective measures. The commentary draws on perspectives from Australia, Canada, India, the UK and the US.