Example:

A sub-contractor signs a contract with the contractor to remove unsuitable excavated material from site and to replace it with suitable material.  The sub-contractor will be paid for each load of a 12 cubic metre truck.  The contractor appoints a supervisor to count on site the number of loads removed and replaced by the sub-contractor.  Each load will have a written load certificate which will be signed by the sub-contactor and counter-signed by the supervisor.  The manager of the sub-contractor agrees with the contractor’s supervisor that the supervisor will falsely certify more loads than the sub-contractor actually undertakes.  In return, the sub-contractor will pay the supervisor 30% of the payment received by the sub-contractor for each false load.  In addition to certifying the genuine loads removed and replaced, the supervisor certifies 50 false removals and 50 false replacements.  The sub-contractor submits both the genuine and false certificates to the contractor for payment.  The contractor pays the sub-contractor, who in turn pays the supervisor his agreed share.

Explanation:

The above conduct would constitute all of:

• payment of a bribe by the sub-contractor
• receipt of a bribe by the supervisor
• fraud by the sub-contractor in deliberately claiming payment for work not carried out
• fraud by the supervisor in deliberately signing work records for work not carried out
• abuse of power by the supervisor in failing to carry out his functions correctly in return for a personal payment.

In numerous cases on construction projects, work done by one party needs to be supervised and approved by another party.  This acts as a control against error or fraud.  Therefore, if a party wishes to act fraudulently on a project by claiming payment for work not done, or for equipment and materials not supplied, or for defective or inadequate work, they will normally need the supervisor to be negligent, or to deceive the supervisor, or to bribe the supervisor.   Consequently acts of fraud on construction projects are frequently accompanied by bribery.