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  • Writer's pictureJerry Ipsen, CFE, MBA

Construction Companies Interested in Saving $$

Did you know a proactive stance towards fraud prevention can possibly save you thousands of dollars each year? The Association of Fraud Examiners reports the median loss for those in construction is $203,000 annually. The estimate is that 5% of revenue is lost each year to fraud, which includes, theft, billing fraud, bid-rigging, payroll and material fraud. Employees with less than 10 years on the job and between the ages of 31 and 45 were found responsible in a majority of the cases. FYI... Those with less than 5 years on the job were found to be culpable in 47% of the reported cases. 6 to 10 years, 25%.

The semi-annual jobsite visit demonstrates your anti-fraud position and lets your subs and others know that fraudulent behavior will not be tolerated. The 2-hour onsite program to be conducted every six months includes a safety walk-through, questions for the GC, talks with employees, subcontractors, and material suppliers discussing what's expected of them when it comes to billing, material substitution, accurate reporting of hours, equipment usage as well as the prevention of theft. In addition, Ipsen Due Diligence will take the time to educate your key people on the warning signs pertaining to construction fraud and what to be on the lookout for.

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