Construction procurement fraud is costing the sector £2 billion
As well as fighting the highest levels of late payments, procurement fraud is also costing small and medium-sized enterprises (SMEs) in the construction sector billions, new research reveals.
The PKF Annual Fraud Indicator (2016) report shows that fraud is costing construction companies around £2 billion, with total UK fraud losses standing at £193 billion.
And while authorities can tackle some of the issues which lead to fraud in the sector including examine key data containing employee and contractor addresses, analysing bank accounts to highlight suspicious links, explains David Stapleton, chief executive and founder of collaboration platform TenderSpace.
With free online tools that SMEs can access to help combat fraud, he points out that by taking a few easy steps, contractors can gain more insight into who they work with, and enhance their reputation at the same time.
“By running a credit risk report on your supply chain partners, you can check their payment history and negate the risk of fraud and late payment,” says Stapleton.
“Specifiers also want to work with contractors who can show their qualifications and trustworthiness for jobs too. Prequalification documents can take time to fill in, but easy to use technology like TenderSpace can help with all of these issues and make collaborating easier - and safer.”