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.