Contractor fraud is a serious problem that you may encounter working in the construction industry. It can result in consequences such as inflated costs or the completion of dangerous, sub-standard projects.
This type of fraud becomes even more serious when it occurs on a federal project or a project utilizing federal funds. That is because the False Claims Act imposes liability on persons and companies who defraud governmental programs. You could get caught up in the mess if government contractor fraud happens on one of your job sites. Here is what you need to know.
Understand the Types of Contractor Fraud
Contractor fraud can be hard to detect. New schemes are emerging all the time. But some of the most common tactics used by unscrupulous contractors include:
- Bid rigging: Contractors pretend to compete against each other when they have actually agreed to cooperate on the winning bid to increase profit.
- Conflict of interest: A government contracting official has an undisclosed financial interest in a contractor.
- Kickbacks: A contractor falsely inflates the cost of performing work by paying a secret fee for being awarded the contract.
- Material and time overcharging: A contractor misrepresents how much material was used on a job or the distribution of employee labor.
- Product substitutions: A contractor misrepresents the quality or type of product used to cut costs.
- Quality control testing: A contractor misrepresents the results of quality control tests in order to benefit in some way.
Contact a Skilled Attorney
If you have become aware of contractor fraud in government construction, you need to report the problem. It is crucial to hold contractors and subcontractors accountable for illegal and unethical behavior. But you need the help of a skilled government construction fraud lawyer to navigate this difficult situation.
Attorney James H. Shoemaker handles a variety of government construction fraud matters. He can help protect your rights and advise you on the best course of action.
Schedule Your Consultation Today
If you are looking to expose government contractor fraud, it is in your best interest to schedule a complimentary consultation* with attorney James H. Shoemaker, Jr. Call 757-223-4580 to arrange your case evaluation today. As a partner in the law firm Patten, Wornom, Hatten & Diamonstein (PWHD), Mr. Shoemaker is able to serve clients in Virginia Beach, Hampton Roads, Washington D.C., and throughout the United States.