Construction fraud defence solicitors

Types of construction fraud

The types of fraud in this industry can be wide ranging. The main issue often revolves around improper gains by constructors. This is sometimes shared by the customer’s employee/s. It is the customer who often unwittingly pays out far more money than is required as a result of these actions. Many people can unwittingly become embroiled in the investigation particularly due to the prevailing culture on many building projects. The hidden rewards often involve cash, building work for nothing or ‘consultancy fees’. There is a large element of corruption in allegations of this nature and the incoming Bribery Act 2010 will put the corporations themselves in danger of committing offences by allowing their employees to accept these hidden rewards unchecked.

Issues can include

• Release of confidential bid information
• Collusion with other contractors in a cartel style bid
• Corrupt relationships
• Courtesy bidding where contractors deliberately put in a higher bid in an agreement with another contractor also known as providing a ‘cover price’

There have been cases of fraudulent activity being investigated by the HMRC. One of the areas of concern is a fraud very similar to MTIC type or carousel frauds. There has been trade in construction industry equipment and a chain of companies has been trading these goods and ultimately failed to account for the VAT. Another recent concern is apparent chains of companies claiming to subcontract labour and failing to pay the workers’ tax and national insurance. These activities have been reportedly wide spread in recent years. 

At Stephensons we are used to dealing with voluminous cases. These involve meticulous attention to detail and often require detailed consideration of contract paperwork and tender documentation. We can proactively defend your case and assist you through the investigation and prosecution with a view at securing the best possible outcome for you.

Our experienced team of construction fraud lawyers has the expertise and knowledge to look at the required level of detail to defend you. Contact our expert fraud solicitors on 01616 966 229 or complete our online enquiry form.