Construction Commission Fraud
Updated: Oct 1, 2022
Ever wonder how commissions are calculated and paid to your project managers or estimators? An article by Feeley & Driscoll, CPAs "Preventing & Detecting Fraud in Construction Companies" suggests that either one may overestimate costs in order for the contract (or project) to finish better than expected. Higher profits equate to a higher amount of paid commission.
Problems can also include the "cost shifting" of non-allowable expenses to billable and moving expenses from one project to another. Neither is acceptable.