Public construction fraud refers to any fraud that taints any aspect of government-owned construction projects. This may include the construction of federal buildings such as post offices, courthouses, airports, military bases and related structures, interstate highways, subway systems, other public infrastructure, and the like.
The kinds of frauds that occur in public construction are wide ranging, and can include:
- Use of Defective, Substandard, or Out-of-Specification Materials
- Failure to Follow Contract Plans or Specifications
- Certified Payroll Compliance Fraud
- Subcontracting Plan Compliance Fraud
- Use of Unqualified Personnel
- Payment of Kickbacks to Obtain Contracts
- Falsification of Costs
- Inflated Billing
Real World Examples of Recent Public Construction Fraud False Claims Act Cases:
- 2011: Science Applications International Inc. (SAIC) and other defendants agreed to pay the government over $22 million to settle a whistleblower suit brought pursuant to the False Claims Act. The suit alleged that two government employees shared information with the SAIC bidding team that was not shared with other bidders, ensuring that the SAIC team would receive the contract.
- 2008: Bechtel/Parsons Brinckerhoff paid a total of over $70 million to resolve allegations of federal and state false claims act violations stemming from the collapse of a tunnel on I-90 in 2006. The suit alleged that the company made a variety of errors, failing to provide adequate services, in the “Big Dig” construction project.