Analysis of fraud risk in public construction projects in China

Abstract

This paper focuses on the root causes of construction fraud in China through detailed analysis of information collected from seven public construction projects. The three dimensions of ‘fraud triangle’ (pressure, rationalization, and opportunity) were used to identify factors that influence attitudes and behavior in fraudulent situations. Five measures are recommended to combat fraud on public projects.

Keywords:

• China
• corruption
• fraud
• managing construction fraud

Acknowledgement

The research project on which this paper is based was funded by the National Natural Science Foundation of China (Project No. 71073091).