Common Types of Construction Fraud

Types of Construction Fraud in Seattle & TacomaThere are many opportunities for parties to use fraud in order to wrongfully take money or property during a construction project. The following are only some of common construction fraud schemes.

False information on payment applications – Falsifying payment applications can cover up a wide range of fraudulent and wrongful actions, including funneling money, covering up the use of funds for personal purchases, and more. An accountant or project manager may falsify these applications in many ways, such as inflating rates, costs, or simply by using erroneous totals. You should always double check all payment applications for signs of errors, irregularities, or other signs of fraud. 

Taking or substituting materials – If you pay for a higher-grade material, you should always ensure that a subcontractor does not substitute a lesser material that may lead to problems with the project or property in the future. Additionally, make sure no subcontractors are taking any of the materials to use on other projects. 

False representation in construction contracts – Too many subcontractors attempt to provide false information in contracts regarding their materials, purchases, employees, insurance, and more in order to get you to sign a contract. All too often, a contractor may be held liable for the misrepresentations of a subcontractor in contracts. 

Billing for work not performed – Subcontractors may wrongfully over bill for production accomplished, equipment used, or labor performed. Additionally, a contractor may be held accountable if he signs off on a false subcontractor invoice. If billing for unperformed work occurs on a government job site, the action may further by a violation of the False Claims Act.1 

Contact an experienced construction law attorney in Seattle and Tacoma as soon as possible

Construction projects are complicated enough without having someone attempt to defraud you. If you believe you have been the victim of any type of construction fraud, make sure you call an experienced construction law attorney at the Dickson Frohlich as soon as possible. Proving fraud claims can often be challenging and complicated, but our lawyers will work to get you the compensation you deserve for your losses due to fraudulent conduct. Call today at (206) 621-1110 or (253) 572-1000 for a free 15 minute phone consultation.

1http://www.law.cornell.edu/uscode/text/31/3729