Value for money stipulates that a project must be economical, efficient and effective. This is not so in the construction sector worldwide, especially in the developing nations. Transparency International's 2013 said that susceptibility of construction industry to corruption is the highest for all sectors. According to Robert S. Khuzami, Director of Enforcement,. US Securities and Exchange Commission, "Any competitive advantage gained through corruption is a mirage.” The construction industry is the biggest spender among all industries, Corruption in the construction industry is corruption in all. To ensure a level playing field for all, what can be done to forestall corruption in the construction industry?
Corruption in construction projects, whether for the public sector or the private sector, is rampant in many countries. For public-sector projects, it begins with the bidding process, which is often non-transparent and rigged to favor firms that are somehow tied to politicians (nepotism) or that have paid bribes to acquire the contract (such as occurs when foreign firms bid on projects--construction is the area in which foreign firms are most likely to bribe, according to the Bribe-Payer's Index). During the project, it takes place in the form of cutting corners on materials and/or going over-budget. Transparency of the bidding process and accountability for results are important steps to take to counter corruption. For example, Benjamin Olken has some good articles on auditing and grass-roots monitoring of road projects in Indonesia. Transparency International does not have a "Focus Area" on Procurement or Construction, but there is some information on Public Procurement on their Gateway site: http://gateway.transparency.org/guides/intro/public_procurement
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