Construction fraud — it happens in owner-contractor and contractor-subcontractor relationships, and it’s committed by employees of any type or size of contracting firm. Last year’s Kroll Annual Global Fraud and Risk Report showed that 70% of construction companies experienced at least one incidence of fraud in 2016. The number was 75% in 2015, so a 5% reduction of such a high percentage isn’t much to celebrate.
Most instances of fraud go undetected, according to Frances Haynes, attorney at law firm Lewis Roca Rothgerber Christie’s Phoenix office, and only are detected when there are money problems or a dispute toward the end of a construction project.
