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1. INTRODUCTION A general definition of corruption is the violation of established rules for personal profit and gain. Corruption is the behaviour which deviates from the norms, rules and duties governing the exercise of a privileged role for purposes of private gain. Corruption around the world is believed to be endemic and pervasive, and a significant contributor to the low economic growth, inhibition of the provision of public services and increase in the inequality. This has led to international organizations such as the World Bank to identify corruption as the single greatest obstacle to economic and social development. The World Bank has estimated the cost of corruption to the global economy at US$1.5 trillion a year. Corruption is likely to occur in procurement of works by governments, public authorities and other public entities due to large amount of money involved and the difficulty in monitoring the processes of money spending. Globally, the construction industry has been criticized for many years neither for its inability to innovate nor to adapt to modern management methods. The global construction market is worth around US $3,200 billion per year. The construction industry has a world wide reputation for incidences of corruption, asset misappropriation and bribery. The American Society of Civil Engineers (2004) claim that corruption accounts for 1

Strategies to Prevent Corruption in Construction Industry

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Page 1: Strategies to Prevent Corruption in Construction Industry

1. INTRODUCTION

A general definition of corruption is the violation of established rules for personal

profit and gain. Corruption is the behaviour which deviates from the norms, rules and

duties governing the exercise of a privileged role for purposes of private gain.

Corruption around the world is believed to be endemic and pervasive, and a significant

contributor to the low economic growth, inhibition of the provision of public services

and increase in the inequality. This has led to international organizations such as the

World Bank to identify corruption as the single greatest obstacle to economic and

social development. The World Bank has estimated the cost of corruption to the global

economy at US$1.5 trillion a year. Corruption is likely to occur in procurement of

works by governments, public authorities and other public entities due to large amount

of money involved and the difficulty in monitoring the processes of money spending.

Globally, the construction industry has been criticized for many years neither for its

inability to innovate nor to adapt to modern management methods.

The global construction market is worth around US $3,200 billion per year. The

construction industry has a world wide reputation for incidences of corruption, asset

misappropriation and bribery. The American Society of Civil Engineers (2004) claim

that corruption accounts for an estimated $340 billion of worldwide construction costs

each year. Construction industries are particularly susceptible to corruption in

licensing, taxation and obtaining government contracts. Estimates regarding the cost of

corruption in infrastructure suggest that five to twenty percent of construction costs are

being lost to bribe payments. In most of the cases, corruption is a result of the nature of

construction projects and that of the process itself. The characteristics of the

construction sector make it particularly prone to corruption: complex technical

requirements of projects, competition for ‘make or break’ contracts, the large number

of contractors, providers of goods and services, the numerous levels of official

approvals and permits, the uniqueness of many projects, complex contractual and

project implementation structures, the opportunities for delays and overruns, and the

simple fact that the quality of much work is rapidly concealed as it is covered over by

concrete, plaster and cladding.

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Corruption in the construction industry is initiated by project participants at every level

and in every phase of the process, and the professional advisers and consultants are the

first line of attack as well as defence. The situation has been compounded by the fact

that a low level of capital investment is required to set up construction companies,

which in turn, allows easy entry into the industry by new, and sometimes, unscrupulous

players. To overcome this problem, some governments have developed and

implemented procedural guidelines on procurement of services, goods and works to

ensure the contracting of government funded works and services are transparent and

fair, in order to achieve value for money and to prevent corruption risks from

happening.

According to Dreyer (2004), there were many grey areas in the transition between a

planned economy and a market economy, and some people sought to take advantage of

a situation in which the rules were unclear. Speculation, profiteering and bribery

became accepted norms for doing business. Newly built bridges and dams collapsed,

and just-finished highways developed cracks soon after completion that subsequently

rendered them unusable. Paying bribes raises the cost of doing business, and because

inspectors are regularly bribed, the quality of the goods sold is adversely affected.

However, in many cases, although the legal systems, checks and balances appear to be

in place to inhibit corrupt practices and risks, these systems, checks and balances by-

and-large, do not seem to be fully effective.

Consequences of corruption in the construction field are severe. Corruption not only

eats into profit but also leads to poor quality of the construction

work which would cause accidents and endanger human life. Even when these

construction defects can be discovered at an early stage, extra budget and time for

remedial work are incurred which means higher construction costs. Besides, the

reputation of the company involved will be affected too. Therefore, it is necessary to

develop strategies to minimize any corruption risks and corrupt behaviour in

procurement of construction projects.

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2. CAUSES OF CORRUPTION

The construction sector is estimated globally to be worth US$3,200 billion per year and

US$250 billion is spent annually on infrastructure in the developing world alone.

However, worldwide, the construction sector is known for its association with

corruption. Corruption in the construction industry covers new build contracts

refurbishment contracts, as well as maintenance contracts. Corruption in the sector

includes all forms and can be found at all levels from high ranking officials diverting

funds and international companies offering bribes for contracts. Transparency

International’s Global Corruption Report highlights the devastating impact of

corruption in construction industry such as wasted tender expenses, tendering

uncertainty, increased project costs, economic damage, blackmail, criminal

prosecutions, fines, blacklisting, brand damage, and reputational risk. Corruption in the

construction industry often results from a combination of:

• Deregulating the infrastructure sector.

• Large flow of public money.

• Highly competitive nature of the tendering process.

• Lack of transparent selection criteria for projects.

• Political interference and discretion in investment decisions and the cost of sector

assets.

• Monopolistic nature of service delivery

• Tight margins

• Close relationships between contractors

• Subcontractors and project owners and

• Complexity of institutional roles and functions the asymmetry of information

between user and provider, or cronyism in the industry.

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3. FORMS OF CORRUPTION

Forms of corruption in the construction industry can be summarized in two groups: (1)

contractor related and (2) professional consultants, clients or government officers

related. The forms of corruption related to consultants, clients or government officers

include administrative interference, illegal award of contract or subcontract of

construction projects, disclosure of confidential project baseline price information to

some companies prior to tendering, and clients or government officers asking for

money or in-kinds from contractors. The forms of corruptions related to contractors

include, for example, the construction company offer bribes to client or the tender

evaluation committee members in order to win the project; purposely lower the

tendering prices or collusion in the tendering prices among construction companies

using of substandard materials or workmanship, submitting false reports of project

expenditure, forging and altering original invoices, non-compliance with contract, and

supervision and construction companies colluding together.

Corruption can be collusive- the willing and planned cooperation of the giver and taker;

or anticipatory- paying a bribe in anticipation of favorable actions or decisions from an

authority; as well as extortionary- which is the forced extraction of bribes or other

favors from vulnerable people by those in authority

Corruption can include bribery, extortion, fraud, embezzlement, kickbacks and other

equivalent criminal offences.

3.1 BRIBERY

Bribery can be defined as the demanding, receiving, offering or giving of an undue

reward by or to any person in order to influence his behaviour. The perpetrators of

bribery will include both those who demand or receive the bribe and those who offer or

give it. Demand-side bribery refers to those who demand or receive the bribe and

supply-side bribery refers to those who offer or give the bribe. A bribe may be a cash

payment, or a non-cash advantage. It may be paid and received directly or indirectly. A

bribe may be paid or received with the full approval of the organisation which is known

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as institutional bribery. On the other hand, it may be paid or received by a

representative of an organisation without the approval of the organisation which is

known as personal bribery. Normally, the payment of a bribe in relation to a

construction project is an institutional act, and the receipt of the bribe is a personal act.

A bribe paid to win a project will normally be concealed with the aim that the project

appears from the outside to have been won on a genuine arms length basis.

3.2 EXORTION

Extortion is a form of blackmail. Extortion is a criminal offense, which occurs, when a

person unlawfully obtains either money, property or services from a person, entity, or

institution, through coercion. It is the term applied to the process of demanding a bribe

where the demander uses some form of physical or financial pressure, and where the

person from which the payment is demanded may feel that he has little choice but to

comply.

3.3 FRAUD

Fraud is theft through misrepresentation. A representative of one party may try to

deceive a representative of another party. The party using the deception will normally

be attempting wrongfully to extract payment or advantage from another party, or to

deny another party a due payment or advantage. These practices can also be referred to

by various different names such as deception, anti-competitive practices or claims

inflation.

3.4 EMBEZZLEMENT

Embezzlement is the misappropriation of corporate or public funds. Embezzlement is a

term used to describe the act of dishonestly misappropriating funds by an individual to

whom the funds have been entrusted. Embezzlement may range from the very minor in

nature, involving only small amounts, to the immense, involving large sums and

sophisticated schemes. More often than not, embezzlement is performed in a manner

that is premeditated, systematic and methodical, with the explicit intent to conceal the

activities from other individuals, usually because it is being done without their

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knowledge or consent. Often it involves the trusted person embezzling only a small

proportion or fraction of the funds received, in an attempt to minimize the risk of

detection. If successful, embezzlements can continue for a long time without detection.

It is often only when the funds are needed, or called upon for use, that the victims

realize the funds or savings are missing and that they have been duped by the

embezzler.

3.5 KICKBACKS

Kickbacks refer to sweeteners or rewards for favorable decisions. A kickback is

effectively a bribe; a collusive agreement designed to help or influence an individual,

company, or government entity. When a contractor promises to “kick back” some of

the proceeds from a contract to the hiring decision-makers, a kickback has been

offered. If the official suggests such an arrangement, a kickback has been solicited.

Kickbacks can be in the form of money, credits, gifts, gratuity, offering of services, or

anything of value.

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4. CONSEQUENCES OF CORRUPTION

Corruption is harmful and as such it has become increasingly unacceptable to a broad

range of stakeholders, including businesses, governments, academics, and ordinary

citizens (World Bank 2000). Corruption is a significant barrier to economic, social,

and political development, and poverty reduction.

Generally corruption lowers investment and growth, lowers foreign direct investment,

and leads to an underinvestment in education and over-investment in public

infrastructure. Data from the Global Competitiveness Report (of the World Economic

Forum) suggests that the frequency with which firms have to make undocumented extra

payments or bribes to gain public contracts is, on average, negatively correlated with

the income of the countries. Thus the poorer a country is, the bigger the corruption

problem in infrastructure. It is not uncommon for corrupt officials to direct resources

towards large capital-intensive infrastructure projects rather than operations and

maintenance; corruption can also create the incentive to build sub-standard

infrastructure in the wrong place and to operate it poorly.

Corruption in the construction sector typically results in:

• Lower economic growth rates.

• Ineffective government.

• Infringement of civil and political rights.

• Decrease in investment of foreign and domestic investors.

• Lower quality of public infrastructure due to the loss of revenue, diversion of public

funds, and evasion of taxes associated with corruption mean that governments have

less to spend on infrastructure and

• Reduced effectiveness of provision of public goods as sectors that do not lend

themselves to grand corruption, such as social services, are given less emphasis than

those that offer greater opportunities for corruption.

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5. STRATEGIES TO PREVENT CORRUPTION

Corruption delays and reduces expenditure on infrastructure investment, reduces the

growth generated by a given expenditure on infrastructure investment, raises the

operating cost of providing a given level of infrastructure services, reduces the quality

of infrastructure services and limits access, especially for the poor. World Bank

Institute research shows that countries that tackle corruption and improve their rule of

law can increase their national income by as much as four times in the long term.

Efforts at international and national levels are being made to curb corruption in

construction and to promote transparent public contracting processes. In most major

construction projects, the state is involved as the owner of utilities, as implementing

agency and through regulation; the private sector designs, implements and often

operates the projects. Broad reform approaches to reduce the extent and impact of

corruption include transparency, participation, competition, reduced discretionary

powers, removal of unnecessary regulation, improved financial management and

extended auditing. Tools for a broad approach to improved governance in the sector

highlight improved and more transparent processes for budgeting, project selection and

implementation processes, oversight, including community-driven approaches.

There has been very little direct anti-corruption activity in the sector earlier; however

recent initiatives include suggestion of strategies which focus on the following:

Awareness Raising: Greater transparency can make a significant contribution to

reducing corruption and embezzlement. Promoting greater transparency around the

actions of officials creates disincentives for them to engage in corrupt transactions and

also raises citizens’ awareness of the goods and services they should receive. Increasing

the amount of information such as public accounts, budgets, contracting arrangements,

and annual reports available to the public can also reduce corruption in the sector by

making it difficult for public officials to make decisions that misallocate resources, or

tap into limited budgets.

Strengthened Professional Institutions: Professional institutes have a key role in

regulating the conduct of members on the basis of peer judgment. Efforts are currently

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being made to develop ethical standards for the construction sector, as well as to ensure

due diligence actions by construction companies to ensure that their business partners

e.g., agents, consortium and joint venture partners, and major subcontractors do not

engage in corrupt activities. The four fundamental ethical principles which engineers

should achieve in professional life are accuracy and veracity; honesty and integrity;

respect life, law, and public good; and responsible leadership.

Adequate site supervision and physical audits: Consultants and companies have

instituted a number of measures at both the sectoral and project level to ensure due

diligence in the supervision and execution of their projects including monitoring

physical inputs and costs, surveying labour inputs and costs, and instituting clear

sanctions for non-compliance and, most importantly, effective enforcement procedures.

In particular, independently verified physical audits of outputs have been used to

combat corruption.

Integrity Pacts: These are agreements signed by all parties both the public and private

sectors during the bidding process, in which they undertake not to engage in corrupt

activities, accept that their financial and other records will be subject to independent

external scrutiny, and subscribe to an arrangement whereby they can be punished for

breaching the conditions of the pact.

To prevent corruption, the strategies suggested are:

Development of honest and ethical construction culture.

Institution of random and regular checks and

Supervision of processes and work over project life cycle.

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5.1 DEVELOPMENT OF HONEST AND ETHICAL CONSTRUCTION

CULTURE

In addition to laws and regulations, another important issue is the construction culture

at both corporate and industry levels. Regardless of how good the laws and regulations

are, people are root causes of any corruption; and therefore people are the key to make

sure the construction operation is honest, ethical, healthy and clean. Corporate which

may include statements, visions, customs, slogans, values, role models and social

rituals set the moral tone for an organization and can be used to resist corrupt practice

(Luo, 2004). It is suggested that the Chinese government pays more attention to the

development of a healthy construction culture. The government should put more effort

into promoting honest and healthy rights all the time, not only technically, but also

morally, ethically and culturally. When taking actions in promoting healthy and ethical

construction culture, the following issues should be considered:

a. political leadership and top management commitment is crucial

b. assess vulnerability and identify corruption risk factors, and educate staff about

these risks and actions to minimize the risks

c. improve the level of employees' awareness and understand the conduct of

corruption, and promote employees' positive attitude to report corruption

d. management should create an atmosphere of trust and feeling of safe to report

corruption; and

e. link contract award to best practice.

5.2 INSTITUTION OF REGULAR AND RANDOM CHECKS

It is important to review the conduct of the officials involved in the construction

industry through regular and/or random checks. The regular checks include detailed

review of the entire procurement process on selected projects. In this process a

supervisory official can be assured that the officials' responsibilities have been fully

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and properly discharged. The random checks include the review of a number of

different projects chosen randomly. The benefits of random reviews and inspections

include:

a. it is a fair process; no individual official or company is singled out or vicitimized;

b. the random nature of the process ensures that it cannot be anticipated and avoided

by corrupt officials;

c. consequently, officials are less likely to participate in corrupt conduct or deliberate

maladministration as they cannot be confident that their conduct will not be detected by

detailed scrutiny of supervisory officials; and

d. it maximizes the use of supervisory resources.

As a consequence of these random and regular reviews or checks, may be a pattern of

misconduct can be identified at one or more specific stages during the construction

process. If this occurs, it would be appropriate to target that particular aspect of the

process for review over as many projects as possible. This way, patterns of conduct or

impropriety, or institutionalized misconduct, may be identified which will in turn

facilitate the targeting of specific officials or eradication of shortcomings in the

systems. Further, where corrupt conduct or maladministration by individuals is

identified, all projects with which that particular official has been associated should be

targeted for detailed review in order to identify the extent of the official's corrupt

conduct, corrupt associations and any associated risks to public safety. It is considered

that by the use of the above processes, the effect of supervision can be maximized.

5.3 SUPERVISION OF PROCESS AND WORK DURING THE PROJECT LIFE

CYCLE

The supervisory officials have a role and responsibility in respect to the conduct of

public officials involved in the construction industry. It is not sufficient nor is a

complete discharge of duties for supervisory officials to simply rely on reports and

documents prepared or provided by officials. The supervisory officials must also

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identify and recognize areas in the construction processes where corruption has the

potential to occur. Having identified the appropriate areas of corruption risks, it is the

officials' responsibility to carry out focused and detailed supervisory activities at

random or on a targeted basis. The supervisory activity must also involve detailed

personal scrutiny of individual projects, with independent expert technical assistance if

necessary, and examination of relevant documentation for the project, or projects under

review.

According to Zhou (1998), the strategy of corruption prevention should be

comprehensive, consisting of precaution, relief and warning, and combine sanctions

and education, together with a constant reminder to the public servants of their duties

and reputations, and the penalties for breaches of the laws and regulations. In order to

carry out regular or random checks effectively, a supervision checklist is developed

here. This checklist provides guidelines for supervisory officials to undertake random

and targeted examinations at specific stages of a construction project, and specifically

addresses the areas of corruption risks or conduct. It highlights "areas of risks or

concerns” for supervisory officials to direct their attention and strategies for

supervisory inspection or review. This supervision checklist is designed according to

the procurement stages of a construction project from inception to completion.

5.3.1 Project conception stage – land use, urban planning and approval

At this stage, the areas of concerns and risks are project application documents

provided to the Bidding Office of the Construction Commission. Areas of risks and

associated strategies to mitigate corruption risks are provided in Table 1.

Table 1. Key Areas of Corruption Risks and Strategies at Project Conception

Stage

Areas of concern Actions or Strategies

1.Unauthorised use of land Check that project design confirms with land usage

conditions and city plan

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2.Failure to obtain all

necessary approvals or failure

to comply with planning and

land usage conditions

3.Avoidance of fees and taxes

4. Unauthorized changes to

the scope of the project

Examine all relevant approvals and receipts to ensure

they were properly obtained and relevant to the project

under review

Check if appropriate fees have been paid to the land

occupants with the pre-agreed amount of money or in-

kind. It is necessary to check with the developer and

the land occupants on their agreement and the actual

fees transaction history

Review project design documents and drawings to

ensure that project under review is not part of a larger

project (project splitting) and has not been otherwise

altered. Check for any other projects associated with

the same land by the same client

5.3.2 Tendering stage – call for tender and tender evaluation

Project tendering stage is a critical stage as it determines which construction company

will be awarded the contract. Therefore, there is a high level of corruption risk at this

stage. As such, supervision officials should pay special attention at this stage. Table 2

provides areas of risks and associated strategies.

Table 2. Key Areas of Corruption Risks and Prevention Strategies at Tendering

Stage

Areas of concern Actions or Strategies

1. Appropriateness of tender

evaluation criteria

Check if the tender evaluation criteria was prepared

strictly in relation to the nature and scope of the

project, and the preparation of the criteria was

completed prior to call for tender

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2. Preferential treatment of

tenderers

3. Invitation of unqualified

tenderers

4. Collusion between

tenderers

5. Tenderer offering bribes

6. Technical competence of

evaluation committee

Check if the tender teams and conditions favour any

individual tenderer

Ensure that original tendered qualification conditions

are attached to the invitations to tender.

Check qualification of tenderers and current project

commitment of the proposed project managers.

Review tenderers’ and project managers' past

performance reports for validity and completeness. If

necessary, review previous project completion reports

involving tenderers to confirm accuracy of past

performance reports

Review contract to ensure conformity with design

documentation and consistency with tender

documentation, especially in ensuring that the contract

does not provide additional benefits or rewards to

either party that are not included in the design or tender

documentation

Check to ensure only appropriate information is

provided to tenderers.

Review tender prices to ensure that prices provided are

adequately supported by documentation.

Check and audit the work done by committee members

to see if any preference has been given to particular

tenderer

Check if the members of the committee have met the

requirements set by the government.

Review the selection process of evaluation committee

to ensure that selection is truly random and experts

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chosen do not have a relationship with individual

tenderers or client.

Review adequacy of time allocated to tender

evaluation by evaluation committee.

Review evaluation report provided by tender

evaluation committee to ensure scoring is consistent

with pre-determined criteria and scale; review scoring

scale for suitability to project and impartiality.

Check tender documentation to ensure that the

recommendation of the tender evaluation committee

has been signed off by the Director of the Tendering

Office.

5.3.3 Construction stage – conduct of contractor and on-site supervision company

The supervisory check actions are to be carried out during project construction

particularly at the critical points of construction such as part-way through the concrete

pour and material testing reports. Areas of risks and strategies to mitigate corruption

risks are provided in Table 3.

Table 3. Key Areas of Corruption Risks and Prevention Strategies at Construction

Stage

Areas of concern Actions or Strategies

1. Qualifications and

suitability of on-site

supervision company or staff.

2. Appropriate checks and

monitoring of supervision

undertaken by the on-site

Review selection process of supervision company with

particular emphasis on qualifications, capacity and

experience of the company and staff employed on the

project.

Examine supervision company diaries for detail and

conformity with project progress, including

construction progress, day-to-day supervision

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supervision company.

3. Collusion between on-site

supervision company and

contractor

4. Substitution of second-

hand, substandard and

unauthorized materials

activities, quality testing and safety checks.

Check to ensure project manager’s attendance is

appropriate to the nature of the project and that he is

discharging his responsibilities properly.

Check to ensure that supervision team complies with

timetable outlined in project design and contract, and

that any variation from the timetable is justified.

Examine previous projects to identify unusual or

suspicious relationships between on-site supervision

company and contractor.

Confirm by on-site inspection that construction was

carried out according to design and specification.

Examine materials utilized during construction to

check if there was use of unauthorized materials.

Independently confirm with testing laboratories that

quality testing was properly conducted.

5.3.4 Project post-construction stage – contract compliance, design variations,

final cost and quality evaluation

The post-construction stage is one of the most critical stages to check for any possible

corruption. A detailed and careful review on the completed project is essential because

the corruption would be purposely hidden. Table 4 provides key areas of corruption

risks or concerns and actions to be taken at this stage.

Table 4. Key Areas of Corruption Risks and Strategies at Post-Construction Stage

Areas of concern Actions or Strategies

1. Whether the contract price

is the same as the one

Compare the tender price, contract amount and the

final cost.

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determined during tendering

and the final cost aligns with

the contract price.

2. Contract compliance by

the client and construction

company

3. Improper commission of

electrical and hydraulic

equipment or plants.

4. Process for approving

progress payments and final

cost evaluations.

Review the sources and causes of design variations.

Review variation authorizations to ensure that

variations were necessary and unavoidable, cost

estimations were detailed and independently verified,

clear instructions were provided to contractor as to

extent of variation and financial approval prior to

variation work being commenced.

Ensure that progress has been completed in accordance

with the contract.

Review client's and on-site supervision company's

reports on contractor performance to ensure adequacy,

accuracy and fairness.

Review approvals for extension of time to ensure they

are appropriate in liability and extent in terms of the

contract.

Check to ensure there is no illegal subcontracting or

improper transfer of contract to another contractor.

Check if all electrical and hydraulic equipment or

plants have been properly tested and signed off by

licensed engineers.

Check completed project, with appropriate professional

assistance, to ensure that the project is of adequate

quality.

Review documentation to ensure there has not been

undue delay or impropriety in final cost evaluation and

approval.

Examine contract price and final price to ensure that

any variation between the two prices has been properly

authorized and is reasonable under all the

circumstances.

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6. STAKEHOLDERS IN COMBATING CORRUPTION

It is perhaps commercially impossible for one company to unilaterally combat

corruption. Successful reforms to combat corruption in the construction sector must

combine top-down government monitoring with private sector motivation and

grassroots oversight. All stakeholders have a role in combating corruption:

The government: Corruption cannot be overcome without political will. The

government has a key role in preventing and detecting corruption in

construction projects and regulation of services in their role as owners of

utilities and implementing agencies.

Staff: Training both of consultants and staff of construction companies, would

contribute to raising awareness of what practices are normal business acts and

which are corrupt practices and thus constitute criminal offences. This training

should stress the potential loss of credibility, compromising of professional

standards and the risks to the individuals reputation, of condoning corruption

and include the actions to be taken by the construction company to ensure that

their business partners such as agents, consortium and joint venture partners,

and major sub-contractors do not engage in corrupt activities.

The private sector: The role of the private sector is preventing corruption in the

design, operation and management of contracts. Business and customer surveys

can play an important role in uncovering and measuring corruption.

Professional trade bodies: These organizations could foster a zero tolerance

approach to corruption by raising awareness of the problems amongst their

members and in the wider industry. For example, the British Consultants &

Contractors Bureau (BCCB) is working with the Institute of Civil Engineers,

the Association for Consultancy and Engineering, the Institution for Structural

Engineers and Transparency International as part of the Anti- Corruption Forum

with the aim of promoting industry led action to eliminate corruption.

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Civil society organizations: These organizations helps in combating corruption

by monitoring their actions to check that they keep their promises and hold

them to account, supporting consumer voice and engaging in advocacy for

transparency i.e. public expenditure tracking surveys that track the flow of

resources, physical auditing of the status of built services.

Donors: Implementation of adequate accountability arrangements, research and

diagnosis are to be performed by the donors as part of arrangements to combat

corruption.

7. CONCLUSION

Corruption can increase the costs of delivering a particular service or else

means that sub-standard infrastructure is built and then operated badly.

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The challenges of corruption in the construction sector are significant: corrupt

practices, such as bribery, embezzlement, kickbacks, and fraud can occur at

every phase of a construction project.

In recent years, there has been a growing commitment to the anticorruption

agenda in the construction sector.

It is necessary to strengthen the management of the construction market through

the development of laws and regulations, and development of a transparent

work process as well as providing ethical education to the related personnel.

The most promising strategies against corruption focus on awareness raising,

strengthening professional institutions, adequate site supervision and physical

audits and integrity pacts.

With improved accountability and reduced corruption, it will be possible to

construct, operate, and maintain adequate quality and quantity of projects on a

more sustainable basis and thereby improve construction practice.

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