Assessment of Common Principles and Practices that make Fraud and Corruption Endemic in the Construction Industry

The construction industry has long been criticised for endless corrupt practices; and it is often alleged that nowhere is corruption more ingrained than in the construction and infrastructure sector. Historically, allegations and cases of fraud and corrupt practices in construction and infrastructure sector show that the acts are closely linked to principles and practices inherent in the industry. Hitherto, research concerning practices that fuel corrupt activities in the construction industry are scarce. The aim of the study is to examine contemporary principles and practices that make corrupt practices prevalent in the construction industry. The research question seeks to identify: what are organisational and non-organisational issues that inspire fraud and corruption in construction? The study employed mixed research methods in addition to examination of five case studies in six countries namely: Canada, France, Nigeria, UK, USA and Turkey. Findings show that fraud and corruption are endemic in construction and infrastructure sector due to ethical and institutionalise sharp practices. Quest for profit and greed were also identified as concerns that surreptitiously fuel corrupt attitudes among institutions and senior management personnel in most organisations.