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HomeProcurementFraud Prevention Strategies for Construction Procurement

Fraud Prevention Strategies for Construction Procurement

Procurement fraud is a growing global problem. It presents a particularly high profile and negative impact on the construction industry. It can cost a construction business millions of dollars and damage its reputation. Procurement fraud relates to purchasing goods, services or commissioning construction projects from third parties. From award to execution, employees and external parties (such as suppliers, distributors and competitors) have significant opportunities to commit procurement fraud.

Most procurement fraud schemes fall under the fraud category of “bribery and corruption.” In cases of the bribery, fraudsters wrongfully use their influence in a business transaction to procure benefits for themselves, or another person, contrary to their duty to their employer or the rights of another. Common examples include accepting kickbacks and engaging in conflicts of interest. The larger the construction project, the more sophisticated is the process needed to manage it. The following are the key strategies of fraud prevention for the construction procurement.


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Liong Sze Pei, DPSM
Liong Sze Pei has substantive years of experience in the field of purchasing management, and specifically in the construction industry. She is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Sze Pei completed the Diploma in Procurement and Supply Management (DPSM) on December 2019 at SIPMM Institute.
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