Bribery in construction
Bribery is a form of corruption and is seen as being more prevalent in construction and engineering than any other sector [1]. It is more likely to occur during the tendering and procurement stages of contracts although it can occur at any stage. This is mainly because on large contracts, individuals within organisations can influence or even decide on the procurement of goods. This provides the opportunity for corruption, compounded by a lack of transparency and governance and inaccurate recording in financial statements.
An example would be a payment by a supplier ‘A’ to a client employee in order to influence a purchase decision in favour of A’s product. A further example would be a subcontractor bribing an employee of the main contractor to gain their favour over a rival subcontractor. Bribery can ultimately affect the quality of the final construction – if an inferior product is used as a result of bribery, an inferior construction will almost certainly result.
The nature of building can make bribery easy to conceal. For instance, bribes might be made to ensure the inclusion of cheap, sub-standard materials on a building project. The money saved may be paid as a further bribe to ensure that the checkers sign-off the finished construction. This can then be difficult to discover, as works on construction projects are often covered up by other materials or embedded deep in hard to inspect places.
Bribes can be paid directly. But they are more likely to be paid through third-parties and intermediaries, something that is more prone to occur when companies move into new markets and place more of their operations with third parties, especially overseas.
The scope for bribery is greater on large, international projects due to:
- The scale involved.
- The complexity of projects allowing concealment of illegal activities.
- The myriad contractual links and supply chains involved.
- The reliance on local agents abroad.
- The acceptance of bribery in some cultures.
- The involvement of corrupt officials.
Many large companies, mindful of complying with the UK Bribery Act 2010, forbid or place strict restrictions on their employees receiving gifts from suppliers that may be construed as bribes. This includes lavish lunches and other forms of ‘entertainment'.
Notes
- PwC’s Global Economic Crime Survey found that 49% of all respondents experienced bribery and corruption, compared to the 27% of the overall sample covering other industries. 64% of engineering and construction executives saw bribery and corruption as the highest risk of operating globally. 29% said they were asked to pay a bribe while 38% said they lost an opportunity to a competitor who they suspect paid a bribe. Ref Fighting corruption and bribery in the construction industry. PwC 2014 Global Economic Crime Survey.
- Functional Standards Common Glossary, published by the Cabinet Office, defines bribery as: ‘The offering, promising or giving of a financial or other advantage to induce or reward improper performance and/or the request, or receipt of such an advantage. It includes the corporate offence of failing to prevent bribery (as set out in the Bribery Act 2010).’
[edit] Related articles on Designing Buildings
Featured articles and news
Design and construction industry podcasts
Professional development, practice, the pandemic, platforms and podcasts. Have we missed anything?
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.