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Investigation on Construction Fraud Claims

How often the fraud claims frequency in construction industry?

Construction contract can be ranging from hundred thousand to multi billion project and subject to variety of the project from residential to government infrastructure project. There is no doubt that some of the project has been target fro fraud and manipulated by minority within the organisation to benefit it. The investigation of fraud claims are ranging from various aspect and can be to complex level and involvement of sensitive issues.

What type of common fraud that involved ?

  • Illegal kickbacks
  • brides
  • Bid-Rigging
  • Overcharging Materials
  • Overcharging Man Hours
  • Substandard Materials
  • Substandard Workmanship
  • Failing to follow contract specifications
  • Falsified Progress Reports and Documents

fraud claim

With more control and auditing procedures, it is able to reduce the chances of the fraud activities within the procurement and operation process. Many parties ( auditor, Claim consultants, QS, Private Investigator etc.) and protocol can be put in place to whistle-blower for early detection to avoid serious suffer in the end of project.

The QS will always be a first level of defence to audit the fairness and justifiable contract to be awarded. The rates and specification comparable to the cost can be always detected and pick up by the professional QS. While in the midst of project, the assessment and evaluation of progress claim will require on-site client representative verification to assist in assessment of claim.

When involving of the fraudulent and false claims, evidence collection and investigation will require to involve and the process can be lengthy and extensive. In most cases, despite involve of site representative and consultants, we may need to involve Private Investigator to perform the surveillance,  and detect the internal fraud practice. Tracing of missing assets, damages of property are beyond the availability of construction experts and require third party like Private Investigator or Detective.

If you believe you have information related to a claim of Construction or Procurement Fraud, and would like to speak and discuss with us.

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