Factors Contributing to Fraudulent Practices in Construction Project Life Cycle

 
 
 
  • Abstract
  • Keywords
  • References
  • PDF
  • Abstract


    This article managed to identify and complie factors contributing to fraudulent practices throughout the construction project life cycle from many research works conducted globally on fraudulent practices in the construction industry. These extracted fraudulent factors were mapped in the matrix form to check for the similarity among the factors. Finally, 42 contributing factors were accepted are parked into 5 stages of Construction Project Life Cycle. After checking frequency, the major factor for every stage are getting project approval in planning stage; collusion between tenderer and public officer in design and tendering stage; inadequate compliance with design for audit and report in construction stage; avoidance of difficulties in contract inspection in finishing stage and finally using substandard materials and services in maintenance stage.       

     

     


  • Keywords


    Fraudulent, construction industry, project life cycle stages

  • References


      [1] Adnan H, Kassim A.N & Chong H.Y. (2012) Success Factors on Joint Venture for Indigenuous Bumiputera Contractors in Malaysia. Journal of Applied Sciences Research. Vol 8(8). 4113-4125.

      [2] Bertoli J. (2016) Preventing Corruption in Public Procurement. OECD Biennial Publication. Paris. 1-30

      [3] Bowen P, Edwards P. &Cattell K. (2012) Corruption in the South African construction industry: A mixed methods study In: Smith, S.D (Ed) Procs 28th Annual ARCOM Conference, 3-5 September 2012, Edinburgh, UK, Association of Researchers in Construction Management, 521-531.

      [4] Brown J & Loosemore M, (2015)," Behavioural factors influencing corrupt action in the Australian construction industry ", Engineering, Construction and Architectural Management, Vol. 22 (4). 372 – 389

      [5] Davis, J. (2004) Corruption in public service delivery: experience from South Asia's water and sanitation sector. World Development, 32 (1), 53-71.

      [6] De Jong M., P. Henry W., Stansbury N. (2009) Eliminating Corruption in Our Engineering/ Construction Industry. Leadership and Management in Engineering. 105-111

      [7] Erasmus J. (2013) Understanding Tender Corruption. Corruption Watch. Johannesburg, South Africa.1-17.

      [8] Fukuyama F. (2005) Global Corruption Report: Corruption in Construction and Post-Conflict Reconstruction. Transperancy International. Pluto Press Publication. London.1-311

      [9] Gates K&L (2014) Biggest Risk of Corruption in the Construction Industry. The Global Picture. 1-4.

      [10] Hadiwattege C., De Silva L. & Pathirage C. (2010) Corruption in Sri Lankan Construction Industry. 141-152.

      [11] Kasimu M.A & Kolawole A.F (2015). Appraisal of the impact of corruption on sustainable development in Nigerian Construction Industry. Journal of Multidisciplinary Engineering Science and Technology (JMEST). Vol 2(10). 2834-2842

      [12] K. Jha A. et al. (2010) "Safer Homes, Stronger Communities: A Handbook for Reconstructing after Natural Disasters,".Monitoring and Information Management Mitigating the Risk of Corruption. Washington DC: World Bank. 285-302

      [13] Kenny C (2006) Measuring and Reducing the Impact of Corruption in Infrastructure. World Bank Policy Research Working Paper 4099. 1-22

      [14] Kenny C. (2007) Construction, Corruption and Developing Countries. World Bank Research Paper. No 4271. 1-31

      [15] Kenny C & Soreide T.(2008) Grand Corruption in Utilities. 1-24

      [16] Kenny C (2009) Measuring Corruption in Infrastructure: Evidence from Transition and Developing Countries, The Journal of Development Studies, 45:3, 314-332

      [17] Kenny C, Klein M & Sztajerowska M. (2011) A Trio of Perspectives on Corruption Bias, Speed Money and “Grand Theft Infrastructure”. 1-25

      [18] Le Y, Shan M, Chan A & Hu Y (2014) Overview of Corruption Research in Construction. Journal of Construction and Management Engineering. vol 140 (9). 1-7.

      [19] Liu X. (2016) A Literature Review on the Definition of Corruption and Factors Affecting the Risk of Corruption. Vol 4 (no 6). 1-8.

      [20] Locatelli G., Mariani G., Sainati T. & Greco M. (2016) Corruption in public projects and megaprojects: There is an elephant in the room!. International Journal of Project Management. Vol 35. 252-268

      [21] MACC. (2017). What is Corruption. Retrieved on July 6, 2017, from http://www.sprm.gov.my/index.php/en/education/what-is-corruption

      [22] MACC. (2017). Where it happen in construction industry. Retrieved on July 6, 2017, from http://www.sprm.gov.my/index.php/ace/education/industry/construction/whereithappen

      [23] MACC. (2017). 2017 Annual Statistics On Arrest. Retrieved on July 11,2017, from http://www.sprm.gov.my/index.php/penguatkuasaan/statistik-operasi/statistik-tangkapan?id=1917

      [24] Mazigo D. Causes of Corruption in Construction Public Procurement in Tanzania: A Case of Manyara Region. Master. Mzumbe University: 2014. 1-88

      [25] Md Akhir N.S. Risk Level of Factors Causing Construction Waste Generation Throughout Construction Project Life Cycle. Master. University Tun Hussein Onn Malaysia; 2015

      [26] Mohd Nordin R, Takim R. & Nawawi, A.H. (2013). Behavioural Factors of Corruption in Construction Industry. Vol 105. 64-74

      [27] Mustafa Kamal E., Haron S.H., Md Ulang N & Baharum F. (2012) The Critical Review on the Malaysian Construction Industry. Journal of Economics and Sustainable Development. Vol 3 (13) 81-87

      [28] New Straits Times (2017). Bribery an ‘unwritten rule’ to secure project.

      [29] OECD (2016) Preventing Corruption in Public Procurement. 1-30

      [30] Pillay K. & Erasmus J. (2013) Understanding Corruption in Tenders. Corruption Watch publisher. Johannesburg, South Africa. 1-17.

      [31] Philp M. (2010). Project against Corruption in Albania (PACA). Strasbourg Cedex France: Europe Union. 1-25

      [32] Prabowo H.Y & Cooper K. (2016)"Re-understanding corruption in the Indonesian public sector through three behavioral lenses ", Journal of Financial Crime, Vol. 23(4). 1028 – 1062.

      [33] Reuters T (2013) "Bribery and Corruption in the Construction Industry: Challenges for International Construction and Engineering Projects," Construction Law Journal

      [34] Salim R. (2009) Strategies to prevent corruption in construction industry

      [35] Shabbir A. Corruption in Infrastructure Procurement - A Study Based on Procurement of Infrastructure Projects in Pakistan. Thesis Doctor of Philosophy: University of Manchester .2014

      [36] Selinsek L. (2015). Corruption Risk Assessment in Public Institutions in. South East Europe Comparative Research and Methodology. Bosnia and Herzegovina: Regional Cooperation Council. 1-107

      [37] Sohail M & Cavill S. (2006). Corruption in construction projects. Proceedings of the CIB W107 Construction in Developing Countries Symposium “Construction in Developing Economies: New Issues and Challenges”. January 18-20. Santiago, Chile.

      [38] Sohail M. & Cavill S. (2006) Combating corruption in the delivery of infrastructure services. Conference on Institutions and Development. 22-23 September.

      [39] Sohail M. & Cavill S (2008) Accountability to prevent corruption in construction project. Journal of Construction Engineering and Management. 134 (9). 729-738

      [40] Sohail M. & Cavill S. (2008) Does Corruption Affect Construction? .Construction in Developing Countries: Procurement, Ethics and Technology. 16-18 January 2008. Trinidad& Tobago, W.I.

      [41] Stansbury, N. (2005). “Exposing the foundations of corruption in construction.” In Global Corruption Report (2005) Special Focus: Corruption in Construction and Post Conflict Reconstruction. Pluto Press, London. 36- 50

      [42] Tabish S.Z.S.& Jha K.N. (2011) The impact of anti-corruption strategies on corruption free performance in public construction projects. Construction Management and Economics. 3. 21-35

      [43] Trading Economy.(2017). Malaysia GDP from Construction. Retrieved on July 12, 2017, from https://tradingeconomics.com/malaysia/gdp-from-construction

      [44] The Star. 25 April 2014. Mohamad Zin B. State director says corruption in construction industry at serious level.

      [45] Transparency International (2017) Anti- Corruption Glossary. Retrieved on July 15, 2017, from https://www.transparency.org/glossary

      [46] United Nations (2013) A Guide for Risk Assessment. United Nation Global Compact Office, NewYork,USA. 1-72

      [47] USAID (2005) Tools for Assessing Corruption & Integrity in Institutions: a Handbook. USA: IRIS Center.1-155

      [48] Wells J. (2015) Corruption in the construction of public infrastructure: Critical issues in project preparation. Anti-Corruption resources Centre U4. No 8. 1-21

      [49] Win W. (2013). Identifying and Reducing Corruption in Public Procurement in the EU. 1-371

      [50] World Bank. Helping countries combat corruption: the role of the World Bank, Washington, DC(1997).

      [51] Zakaria R, Lee Z.K, Nilashi M, Abd. Majid M.Z, Ibrahim O, Mohamad Z.R(2014) Ethical Behaviors In E-Tendering Process For Construction Project In Malaysia.. Journal of Theoretical and Applied Information Technology 10th. Vol.70 (1)

      [52] Zou, P.X.W. (2006) Strategies for minimizing corruption in the construction industry in China. Journal of Construction in Developing Countries, 11(2), 15-29.


 

View

Download

Article ID: 22965
 
DOI: 10.14419/ijet.v7i3.20.22965




Copyright © 2012-2015 Science Publishing Corporation Inc. All rights reserved.