The government spends billions every year to build highways, bridges, rail, airports, and other infrastructure projects. These massive public works undertakings have been a frequent target of construction and contractor fraud, and can include:
|Bid-rigging and bribery||Falsifying minority contractor status||
|Overcharging for materials and hours||Inferior materials and workmanship||Failing to follow contract
specs and falsifying documents
In 2014, McHugh Construction Co. was ordered to pay $12 million to resolve allegations of fraud against government programs designed to benefit women- and minority-owned sub-contractors. The construction company allegedly failed to abide by federal and state requirements for the participation of disadvantaged businesses in contracts to work on roads, highways, and transit lines.
McHugh Construction allegedly cheated both state and federal governments for seven years by fraudulently exploiting women-owned businesses to submit false claims that amounted to millions of dollars when, in fact, those businesses never completed the level of work required by law.