Almost everyone who works in the construction industry has anecdotes of theft or fraud which they have encountered or heard about. Crime in construction is, of course, a covert activity, so it is difficult to find data which gives a clear picture of how big a problem crime may be. Many crimes go undetected. And even those which are discovered, many may not be prosecuted, simply to avoid bad publicity.
This webinar explores the scale of the problem of crime in construction, examines why the construction industry is so susceptible to crime, and provides a practical guide to the identification of common construction crimes. In particular, it explores practical ways crime can be detected, to allow practitioners in the construction industry avoid becoming victims of crime.
The role of technology is examined in detecting and preventing crime on sites. This includes:
- The use of CCTV to prevent theft and unauthorised access.
- The use of computerised site entry systems to provide accurate records of people on site.
- The use of AI in detecting collusion in bid documents.
- The use of GPS tracking in plant fleets and AI analysis of plant movements to prevent misuse of plant and materials.
- The use of survey drones to check the quantities of remeasured materials.
Crime detection is examined both contemporaneously, whilst it may be happening and forensically after the project may have been completed. The different measures which can be taken at each stage are discussed.
As all costs of crime in construction are detrimental to already very thin profit margins, crime is therefore an issue warranting serious attention. But law enforcement agencies have also expressed the view that crime in construction is often concealed in a “grey zone”, with costs bundled into claims for delay and disruption. Such claims are often submissions with which many of us are familiar or may prepare and develop in their professional lives.
Liam McVeigh argues that construction practitioners working on the development of such claims have an ethical duty to check for evidence of crime, to ensure that they are not, unwittingly, taking part in a cover-up of crimes to the detriment of our ultimate employers. In addition if a crime can be proven then the cost of that crime is usually covered by the contractor’s all-risk insurance policy which may provide an avenue for cost recovery.
