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The Construction Audit & Cost Control Institute Presents Seven Questions CEOs Can Use to Gain Insight into Construction Fraud
Date:8/28/2013

themselves into the procurement and contracting process? Leaders might suggest that someone be considered for a project. Leaders might suggest someone be given special consideration because of their relationship or friendship. The suggestions may be innocent or they may be indicators of corruption. Leaders should be told not to provide input unless that is part of their responsibilities. Advocating aggressively for a contractor may be a basis for investigation.

5.    Do we audit the books and records of contractors and subcontractors? Owners should have right-to-audit provisions in all contracts. Although some prefer to limit audit activities to control reviews, effective auditing of contractors and subcontractors may yield cost recoveries and process improvements.

6.    Are engineering decisions being made by people with other agendas? Owner managers attempting to save costs have overridden engineers or contractors who may be better qualified to determine the work and how it is to be done. The result has been rework or structural failure.

7.    Are our managers really involved in construction projects or do they leave it to the experts, that is, our contractors? Owners want good relationships with contractors they have faith in. No contractor or construction manager cares about your projects success as much as you do. Effective stewardship requires owner management to be involved in the detail.

Construction Fraud: Detection, Prevention & Response
October 7 – 8, 2013 in Dallas, Texas

This construction fraud seminar provides solutions. Protection against construction fraud is more than assuring accurate billing. Fraud may involve trusted inside
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