False Claims Act Resource Center

Construction and Procurement Fraud

Federal and state Governments spend billions of dollars each year on a wide variety of construction projects, ranging from highways and bridges to government office buildings and federally subsidized private homes. These massive government construction programs have been a frequent target for fraud. Some of the most common types of fraud involving government construction contracts include:

• Bid-Rigging
• Falsifying Minority Contractor Status
• Bribes
• Illegal Kickbacks
• Overcharging Materials
• Overcharging Man Hours
• Substandard Materials
• Substandard Workmanship
• Failing to follow contract specifications
• Falsified Progress Reports and Documents

In January 2008, the United States Attorney for the District of Massachusetts and the Massachusetts Attorney General announced a $450 million settlement with the joint venture Bechtel/Parsons Brinckerhoff, Bechtel Infrastructure Corp., and PB Americas Inc., to resolve its criminal and civil liabilities in connection with the collapse of a part of the I-90 Connector Tunnel ceiling and defects in the slurry walls of the Tip O’Neill tunnel, part of the massive government funded construction project known as the “Big Dig.” The allegations resolved through this settlement included: the use of epoxy bolts that failed to withstand the weight of ceiling panels, failure to properly manage the construction of the slurry walls; and failure to correct defects in the slurry walls.

In addition to fraud involving construction projects, the government has also been the victim of fraudulent and false claims in connection with the procurement of goods, materials and services. Each year, federal and state governments spend billions of dollars purchasing goods, materials and services for use by government workers and in various government programs. These items include such things as: computers; office equipment, office space; vehicles; construction equipment; fuel; food; security services; and consulting services. Each time the federal or state governments spend money purchasing or procuring goods, materials or services there is a potential for fraudulent or false claims. Some common types of fraud include: bid-rigging; overcharging; providing used or sub-standard goods or materials; or failing to follow contract specifications.

In many instances, these types of construction and procurement fraud on the government would go undetected without the efforts of whistleblowers acting under the qui tam provisions of the federal and state false claims acts. If you believe you have information related to a claim of Construction or Procurement Fraud, and would like to speak with a member of our qui tam whistleblower practice group about a potential false claims case, please feel free to contact us directly or click the Contact Us link.

From Our Whistleblower Blog

• $47 Million to Settle False Claims Act Allegations Against Harbert Companies
• Grenade Makers Attempt to Defuse False Claims Act Charges Denied
• Massachusetts Contractor Sued For Not Using Minority- and Woman-owned Businesses
• Welcome to the False Claims Act – Whistleblowers Blog