The purpose of this paper is to develop an understanding about the internal fraud and corruption problem in the Turkish construction industry. The reasons behind the internal fraud and corruption problem as well as the types of prevention methods were investigated; and as a result various recommendations were made. To this end, a risk awareness questionnaire was used to understand the behavioral patterns of the construction industry, and to clarify possible proactive and reactive measures against internal fraud and corruption. The type of fraud experienced by Turkish construction companies was also surveyed in the questionnaire. The questionnaire was sent to 89 firms; and depending on the collected data, certain recommendations for construction industry professionals were provided.
"Considering that the construction industry in general and in Norway in particular typically receives attention as an industry of doubtful virtue, (1) where neither the police, the tax authorities nor the professional organisations fully master the challenges posed by professional practice (Andersen et al., 2014), (2) where the inherent complexity in itself opens the opportunity for suspicious dealings (Gunduz & Önder, 2012), (3) where fraudulent business practices undermine the reputation of the industry (Slettebøe et al., 2003), (4) that lacks a clear vision based on a fortified ethical foundation (Constructing Excellence, 2009:18). We find this strange. "
[Show abstract][Hide abstract] ABSTRACT: In this paper, a pilot study on the commissioning processes in Norwegian construction projects is reported upon. The study was undertaken in order to address both the general questions of ethics in construction project management, and more specific questions pertaining to the commissioning phase of such projects. In addition to a literature review and a documentation study, 13 semi-structured interviews were carried out according to a qualitative approach. Four of these were general in nature (with clients) and nine case-specific (with client, contractor and user representatives). Based on the results, a description of ethical challenges in commissioning in construction is established. The findings indicate that a commissioning process poses significant challenges in light of hidden agendas and power play among actors. Clients and contractors tend to be systematically suspicious of one another. Major costs in play reinforce this. The findings included the signs of actors repetitively utilising the complexity involved in the commissioning phase for own benefit at the expense of other actors, which is relevant for both clients and contractors. Further research is needed in order to clarify the challenges involved and to develop appropriate measures to address these challenges.
Procedia Economics and Finance 12/2015; 21. DOI:10.1016/S2212-5671(15)00175-6
"Considering that the AEC industry in general and in Norway in particular typically receives attention as an industry of doubtful virtue, 1) where neither the police, the tax authorities nor the professional organisations fully master the challenges posed by professional practice (Andersen, Eldring and Roed Steen, 2014), 2) where the inherent complexity in itself opens the opportunity for suspicious dealings (Gunduz and Önder, 2012), 3) where fraudulent business practices undermine the reputation of the industry (Slettebøe, et al., 2003) and 4) that lacks a clear vision based on a fortified ethical foundation (Wolstenholme, et al., 2009), we find this strange. As Hill, et al. (2013) comments, there is probably no simple solution, no " quick fix " , to the challenges of ethical nature that the industry face. "
[Show abstract][Hide abstract] ABSTRACT: This paper reports on a pilot study on the design phase in Norwegian construction projects using elements from lean construction approaches. The ambition has been to establish a descriptive picture of ethical challenges in the design phase in general, and of projects characterized by lean design in particular. In addition to a literature review and a document study, interviews with key participants were carried out according to a qualitative approach. The study was undertaken in order to address both general questions of ethics in construction project management, and more specific questions pertaining to the design phase of such projects. This research finds indications of actors manoeuvring in the design phase for own benefit at the expense of other actors. The findings indicate that the design phase poses significant challenges in light of tender documents pricing and exploiting cost reimbursement contracts. In some of the projects examined, participants were found to shift loyalty after transfer of contracts and they actively tried to steer the decision processes in their own favour. There does in fact seem to be a room of manoeuvre between what is unlawful and what is ethically sound in this phase.
International Group of Lean Construction, 23rd Annual Conference, Perth; 08/2015
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