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(CDR-2766) Unraveling the Complexities of Construction Fraud

This paper will discuss prevalent types of fraud within the construction industry. Construction fraud schemes discussed herein include the following: (1) false representations of project records including payment applications, change orders and internal records, (2) bid-rigging, (3) non-payment of subcontractors and vendors, (4) disadvantaged business enterprise fraud, and (5) tool and equipment theft. Common perpetrators of construction fraud, as well as ways to detect and deter construction fraud, will also be discussed. Finally, a case study involving the construction of a senior residence living facility will be presented. Construction fraud, including false representations of payment applications, was committed and later detected.