A Survey Report On The Uk Construction Industry - 1892 Words

A 2013 survey Corruption in the UK Construction Industry conducted by the Charted Institute of Builders (CIOB, 2013), which surveyed 701 construction professionals, the majority of whom described themselves as being of ‘senior management level’, although this survey involved mainly senior management, it is important to note that corruption can occur at any level within an organisation. The results of the survey presented a number of important findings about the state of the industry; first and most significantly that 49% of respondents believed that corruption is common (fairly or extremely) within the UK construction industry, this represents almost half of those surveyed and provides a damning insight into the prevalence of corruption.†¦show more content†¦Table 1 - Prevalence of different types of fraud in the UK (Grant Thornton, 2013) Type Prevalence Billing fraud Medium Bid/contract rigging (market collusion) High Bribery/corruption Low Fictitious vendors – falsifying payment applications Medium Change order manipulation High Theft or substitution of materials Medium False representation High Money laundering Low Further data from the Corruption in the UK Construction Industry (CIOB, 2013) report suggests that within the industry there is a strong feeling that bribery is a corrupt and unacceptable act, including; †¢ 89.3% - Perceive bribery to obtain a contract to be corrupt †¢ 86.7% - Perceive collusion and cartel activity to be corrupt †¢ 83.3% - Perceive billing for unperformed work to be corrupt †¢ 67.0% - Believe the use of gifts and corporate hospitality can be treated as bribery The perception of what can be considered a corrupt practice is highly subjective and down to individual experience, however, it provides a useful barometer for the overall feeling in the construction industry, this is particularly important for areas such as hospitality. Interestingly, 67% of individuals surveyed still believe gifts and hospitality may be treated as bribery even though the Bribery Act