Fraud by contractor: Quality

Example:  The contract specified the quality of the aggregate for the road sub-base. 

• Contractor deliberately provides a cheaper and inferior quality aggregate for the road sub-base.
• Contractor invoices Road Agency for the quality of aggregate which it should have supplied, not the quality it actually supplied.
• Contractor attaches to the invoice false truck delivery notes which list the specified aggregate, not the supplied aggregate.

Fraudulent acts by the contractor:

• Creating and submitting an invoice which falsely states a different quality to that actually supplied.
• Creating and submitting truck delivery notes which falsely state a different quality to that actually supplied.

Result:

• Contractor receives unlawful profit by supplying cheaper quality aggregate, but being paid for the specified quality.
• RA overpays, and receives inferior quality aggregate.