Federal Contractor Report

AGC Hot Topic Paper – Federal Fraud Investigations Update: Some Construction and Surety Industry Hotspots

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Increasingly, federal contractors are facing visits by fraud investigators and demands for information related to a particular contract. The government has added sureties, brokers, and bond producers to its ever-growing list of targets of False Claims Act (FCA) fraud investigations. Read the informative posting on AGC’s Reports & Hot Topic Papers page – Federal Fraud Investigations Update: Some Construction and Surety Industry Hotspots, by Timothy Heffernan and Nicole Gregory at Watt, Tieder, Hoffar & Fitzgerald, L.L.P. and William Boeck at Lockton Companies (June 2021) – to learn of compliance issues and potential for fraud, including the policy and other concerns raised by pending cases involving fraud claims, the recommended steps to take to avoid fraud investigations, and a discussion of how insurance policies respond to FCA claims.

Investigations of labor charging and progress payment applications remain a top priority for government auditors. Also under the spotlight is fraud in connection with the U.S. Small Business Administration’s (SBA) set-aside programs, preferences afforded to qualifying disadvantaged contractors, as well as SBA’s Paycheck Protection Program loans and self-certifications. The message to the construction and surety industries is clear -- be prepared and stay vigilant. To see AGC’s entire collection of hot topic (substantive research) papers on top business challenges facing today’s construction firms, as presented by leading experts at recent AGC Surety Bonding and Construction Risk Management meetings, visit AGC’s risk management website.

 

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