Advertisement

Corruption in Construction: A Global Review

  • Ming ShanEmail author
  • Yun Le
  • Albert P. C. Chan
  • Yi Hu
Chapter

Abstract

In the past decade, the corruption issue in the construction industry has attracted wide attention not only from researchers in developed countries such as the United States (Crist 2009; Sohail and Cavill 2008), the United Kingdom (Amaee 2011), and Australia (Brown and Loosemore 2015; Hartley 2009), but also from those in developing countries such as India (Tabish and Jha 2011, 2012), Nigeria (Alutu 2007; Alutu and Udhawuve 2009), Pakistan (Choudhry and Iqbal 2012), Ghana (Owusu et al. 2019), and South Africa (Bowen et al. 2007a, b, 2012).

References

  1. Alutu, O. (2007). Unethical practices in Nigerian construction industry: Prospective engineers’ viewpoint. Journal of Professional Issues in Engineering Education and Practice, 133(2), 84–88.Google Scholar
  2. Alutu, O., & Udhawuve, M. (2009). Unethical practices in Nigerian engineering industries: Complications for project management. Journal of Management in Engineering, 25(1), 40–43.Google Scholar
  3. Amaee, R. (2011). UK’s new wide-ranging Bribery Act comes into force in April 2011. Paper presented at the Proceedings of the Institution of Civil Engineers-Civil Engineering.Google Scholar
  4. Ameh, O. J., & Odusami, K. T. (2010). Professionals’ ambivalence toward ethics in the Nigerian construction industry. Journal of Professional Issues in Engineering Education and Practice, 136(1), 9–16.  https://doi.org/10.1061/(asce)1052-3928(2010)136:1(9).Google Scholar
  5. Badun, M. (2011). The relationship between political corruption and public investment—The case of Croatia. Drustvena Istrazivanja, 20(2), 295–316.  https://doi.org/10.5559/di.20.2.01.Google Scholar
  6. Barco, A. L. (1994). International expansion, ethics, and prohibited foreign trade practices. Journal of Management in Engineering, 10(5), 34–40.Google Scholar
  7. Besfamille, M. (2004). Collusion in local public works. International Economic Review, 45(4), 1193–1219.Google Scholar
  8. Bologna, R., & Del Nord, R. (2000). Effects of the law reforming public works contracts on the Italian building process. Building Research & Information, 28(2), 109–118.Google Scholar
  9. Bowen, P., Akintoye, A., Pearl, R., & Edwards, P. J. (2007a). Ethical behaviour in the South African construction industry. Construction Management and Economics, 25(6), 631–648.Google Scholar
  10. Bowen, P. A., Edwards, P. J., & Cattell, K. (2012). Corruption in the South African construction industry: A thematic analysis of verbatim comments from survey participants. Construction Management and Economics, 30(10), 885–901.Google Scholar
  11. Bowen, P., Pearl, R., & Akintoye, A. (2007b). Professional ethics in the South African construction industry. Building Research and Information, 35(2), 189–205.Google Scholar
  12. Boyd, J. M., & Padilla, J. D. (2009). FIDIC and integrity: A status report. Leadership and Management in Engineering, 9(3), 125–128.  https://doi.org/10.1061/(ASCE)1532-6748(2009)9:3(125).Google Scholar
  13. Brockmann, C. (2009). The mechanics of collusion. Organization, Technology & Management in Construction: An International Journal, 1(2), 51–58.Google Scholar
  14. Brown, J., & Loosemore, M. (2015). Behavioural factors influencing corrupt action in the Australian construction industry. Engineering, Construction and Architectural Management, 22(4), 372–389.Google Scholar
  15. Chan, A. P., & Owusu, E. K. (2017). Corruption forms in the construction industry: Literature review. Journal of Construction Engineering and Management, 143(8), 04017057.Google Scholar
  16. Chan, A. P. C., Yeung, J. F. Y., Yu, C. C. P., Wang, S. Q., & Ke, Y. (2011). Empirical study of risk assessment and allocation of public-private partnership projects in China. Journal of Management in Engineering, 27(3), 136–148.  https://doi.org/10.1061/(asce)me.1943-5479.0000049.Google Scholar
  17. Chau, K. W. (1997). The ranking of construction management journals. Construction Management & Economics, 15(4), 387–398.Google Scholar
  18. Chotibhongs, R., & Arditi, D. (2012a). Analysis of collusive bidding behaviour. Construction Management and Economics, 30(3), 221–231.Google Scholar
  19. Chotibhongs, R., & Arditi, D. (2012b). Detection of collusive behavior. Journal of Construction Engineering and Management, 138(11), 1251–1258.Google Scholar
  20. Choudhry, R. M., & Iqbal, K. (2012). Identification of risk management system in construction industry in Pakistan. Journal of Management in Engineering, 29(1), 42–49.Google Scholar
  21. Choudhry, R. M., & Iqbal, K. (2013). Identification of risk management system in construction industry in Pakistan. Journal of Management in Engineering, 29(1), 42–49.  https://doi.org/10.1061/(asce)me.1943-5479.0000122.Google Scholar
  22. Crist, R. A., Jr. (2009). The ASCE committee of global principles for professional conduct. Leadership and Management in Engineering, 9(3), 144–146.Google Scholar
  23. Crosthwaite, D. (1998). The internationalization of British construction companies 1990–96: An empirical analysis. Construction Management and Economics, 16(4), 389–395.  https://doi.org/10.1080/014461998372178.Google Scholar
  24. De Jong, M., Henry, W. P., & Stansbury, N. (2009). Eliminating corruption in our engineering/construction industry. Leadership and Management in Engineering, 9(3), 105–111.  https://doi.org/10.1061/(asce)1532-6748(2009)9:3(105).
  25. Deng, F., Liu, G., & Jin, Z. (2013). Factors formulating the competitiveness of the chinese construction industry: Empirical investigation. Journal of management in engineering, 29(4), 435–445.  https://doi.org/10.1061/(ASCE)ME.1943-5479.0000161.Google Scholar
  26. Deng, X. M., Tian, Q., Ding, S. H., & Boase, B. (2003). Transparency in the procurement of public works. Public Money & Management, 23(3), 155–162.  https://doi.org/10.1111/1467-9302.00363.Google Scholar
  27. Dorée, A. G. (2004). Collusion in the Dutch construction industry: An industrial organization perspective. Building Research & Information, 32(2), 146–156.Google Scholar
  28. Fan, L., Ho, C., & Ng, V. (2001). A study of quantity surveyors’ ethical behaviour. Construction Management & Economics, 19(1), 19–36.Google Scholar
  29. Fernandez-Dengo, M., Naderpajouh, N., & Hastak, M. (2013). Risk assessment for the housing market in Mexico. Journal of Management in Engineering, 29(2), 122–132.  https://doi.org/10.1061/(asce)me.1943-5479.0000128.Google Scholar
  30. Foster, J. E., Horowitz, A. W., & Méndez, F. (2012). An axiomatic approach to the measurement of corruption: Theory and applications. The World Bank Economic Review, 26(2), 217–235.Google Scholar
  31. Goel, R. K., & Nelson, M. A. (2011). Measures of corruption and determinants of US corruption. Economics of Governance, 12(2), 155–176.  https://doi.org/10.1007/s10101-010-0091-x.Google Scholar
  32. Goldie-Scot, H. (2008). Briefing: Corruption in construction in developing countries. Paper presented at the Proceedings of the Institution of Civil Engineers-Municipal Engineer.Google Scholar
  33. Gurgun, A. P., & Touran, A. (2014). Public-private partnership experience in the international arena: Case of Turkey. Journal of Management in Engineering, 30(6).  https://doi.org/10.1061/(asce)me.1943-5479.0000213.Google Scholar
  34. Hartley, R. (2009). Fighting corruption in the Australian construction industry: The national code of practice. Leadership and Management in Engineering, 9(3), 131–135.Google Scholar
  35. Hu, Y., Chan, A. P., Le, Y., & Jin, R.-Z. (2013). From construction megaproject management to complex project management: Bibliographic analysis. Journal of management in engineering, 31(4), 04014052.Google Scholar
  36. Jimenez, F. (2009). Building boom and political corruption in Spain. South European Society and Politics, 14(3), 255–272.  https://doi.org/10.1080/13608740903356541.Google Scholar
  37. Kadembo, E. (2008). Corruption and the distortion of technology transfer and marketing processes: An insight into Africa’s economic malaise and the decadence of its social fabric. Journal of Sustainable Development, 1(1).Google Scholar
  38. Kale, S., & Arditi, D. (1998). Business failures: Liabilities of newness, adolescence, and smallness. Journal of Construction Engineering and Management, 124(6), 458–464.  https://doi.org/10.1061/(ASCE)0733-9364(1998)124:6(458).Google Scholar
  39. Ke, Y., Wang, S., Chan, A. P., & Cheung, E. (2009). Research trend of public-private partnership in construction journals. Journal of Construction Engineering and Management, 135(10), 1076–1086.Google Scholar
  40. Ke, Y., Wang, S., Chan, A. P. C., & Cheung, E. (2011). Understanding the risks in China’s PPP projects: Ranking of their probability and consequence. Engineering, Construction and Architectural Management, 18(5), 481–496.  https://doi.org/10.1108/09699981111165176.Google Scholar
  41. Kenny, C. (2009). Transport construction, corruption and developing countries. Transport Reviews, 29(1), 21–41.Google Scholar
  42. Kenny, C. (2012). Publishing construction contracts to improve efficiency and governance. Proceedings of the Institution of Civil Engineers-Civil Engineering, 165(5), 18–22.  https://doi.org/10.1680/cien.11.00007.Google Scholar
  43. Krishnan, C. (2009). Combating corruption in the construction and engineering sector: The role of transparency international. Leadership and Management in Engineering, 9(3), 112–114.  https://doi.org/10.1061/(ASCE)1532-6748(2009)9:3(112).Google Scholar
  44. Le, Y., Shan, M., Chan, A. P., & Hu, Y. (2014). Overview of corruption research in construction. Journal of Management in Engineering, 30(4), 02514001.Google Scholar
  45. Lee, T. (2009). Partnering against corruption initiative leads industry battle against corruption. Leadership and Management in Engineering, 9(3), 123–124.Google Scholar
  46. Ling, F. Y. Y., & Hoang, V. T. P. (2010). Political, economic, and legal risks faced in international projects: Case study of Vietnam. Journal of Professional Issues in Engineering Education and Practice, 136(3), 156–164.  https://doi.org/10.1061/(asce)ei.1943-5541.0000015.Google Scholar
  47. Ling, F. Y. Y., & Tran, P. Q. (2012). Effects of interpersonal relations on public sector construction contracts in Vietnam. Construction Management and Economics, 30(12), 1087–1101.  https://doi.org/10.1080/01446193.2012.729848.Google Scholar
  48. Liu, A. M., Fellows, R., & Ng, J. (2004). Surveyors’ perspectives on ethics in organisational culture. Engineering, Construction and Architectural Management, 11(6), 438–449.Google Scholar
  49. Mauro, P. (1995). Corruption and growth. The Quarterly Journal of Economics, 110(3), 681–712.Google Scholar
  50. Meduri, S. S., & Annamalai, T. R. (2013). Unit costs of public and PPP road projects: Evidence from India. Journal of Construction Engineering and Management, 139(1), 35–43.  https://doi.org/10.1061/(asce)co.1943-7862.0000546.Google Scholar
  51. Moodley, K., Smith, N., & Preece, C. N. (2008). Stakeholder matrix for ethical relationships in the construction industry. Construction Management and Economics, 26(6), 625–632.Google Scholar
  52. Ofori, G. (1999). Challenges of construction industries in developing countries: Lessons 300 from various countries. In 2nd International Conference on Construction in Developing Countries: Challenges Facing the Construction Industry in Developing Countries, Gaborone, November 15–17, 1999.Google Scholar
  53. Owusu, E. K., Chan, A. P., & Ameyaw, E. (2019). Toward a cleaner project procurement: Evaluation of construction projects’ vulnerability to corruption in developing countries. Journal of Cleaner Production.Google Scholar
  54. Owusu, E. K., Chan, A. P., & Shan, M. (2017). Causal factors of corruption in construction project management: An overview. Science and Engineering Ethics, 1–31.Google Scholar
  55. Richard, A. P. (1972). A theory of negligence. The Journal of Legal Studies, 1(1), 29–96.Google Scholar
  56. Romero, J., Jimenez, F., & Villoria, M. (2012). (Un)sustainable territories: Causes of the speculative bubble in Spain (1996–2010) and its territorial, environmental, and sociopolitical consequences. Environment and Planning C-Government and Policy, 30(3), 467–486.  https://doi.org/10.1068/c11193r.Google Scholar
  57. Sampford, C., Shacklock, A., Connors, C., & Galtung, F. (2006). Measuring corruption. Hampshire, England: Ashgate Publishing Ltd.Google Scholar
  58. Sichombo, B., Muya, M., Shakantu, W., & Kaliba, C. (2009). The need for technical auditing in the Zambian construction industry. International Journal of Project Management, 27(8), 821–832.Google Scholar
  59. Singh, A., & Shoura, M. M. (1999). Improvement of management parameters in public construction agency. Journal of Management in Engineering, 15(3), 52–59.  https://doi.org/10.1061/(asce)0742-597x(1999)15:3(52).Google Scholar
  60. Skorupka, D. (2008). Identification and initial risk assessment of construction projects in Poland. Journal of Management in Engineering, 24(3), 120–127.  https://doi.org/10.1061/(asce)0742-597x(2008)24:3(120).Google Scholar
  61. Snaith, M. S., & Khan, M. U. (2008). Deleterious effects of corruption in the roads sector. Proceedings of the Institution of Civil Engineers-Transport, 161(4), 231–235.  https://doi.org/10.1680/tran.2008.161.4.231.Google Scholar
  62. Sohail, M., & Cavill, S. (2008). Accountability to prevent corruption in construction projects. Journal of Construction Engineering and Management-Asce, 134(9), 729–738.  https://doi.org/10.1061/(asce)0733-9364(2008)134:9(729).Google Scholar
  63. Sonuga, F., Aliboh, O., & Oloke, D. (2002). Particular barriers and issues associated with projects in a developing and emerging economy. Case study of some abandoned water and irrigation projects in Nigeria. International Journal of Project Management, 20(8), 611–616.  https://doi.org/10.1016/s0263-7863(02)00029-7.Google Scholar
  64. Stansbury, C. (2009). The global infrastructure anticorruption centre. Leadership and Management in Engineering, 9(3), 119–122.Google Scholar
  65. Tabish, S., & Jha, K. N. (2011). Analyses and evaluation of irregularities in public procurement in India. Construction Management and Economics, 29(3), 261–274.Google Scholar
  66. Tabish, S., & Jha, K. N. (2012). The impact of anti-corruption strategies on corruption free performance in public construction projects. Construction Management and Economics, 30(1), 21–35.Google Scholar
  67. Tang, L. C. M., Atkinson, B., & Zou, R. R. (2012). An entropy-based SWOT evaluation process of critical success factors for international market entry: A case study of a medium-sized consulting company. Construction Management and Economics, 30(10), 821–834.  https://doi.org/10.1080/01446193.2012.697180.Google Scholar
  68. Tow, D., & Loosemore, M. (2009). Corporate ethics in the construction and engineering industry. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 1(3), 122–129.Google Scholar
  69. Transparency International, T. (1999). Bribe Payers Index 1999. Retrieved from https://www.transparency.org/research/bpi/bpi_1999/0.
  70. Transparency International, T. (2002). Bribe Payers Index 2002. Retrieved from https://www.transparency.org/research/bpi/bpi_2002/0.
  71. Transparency International, T. (2006). Bribe Payers Index 2006. Retrieved from https://www.transparency.org/research/bpi/bpi_2006/0.
  72. Transparency International, T. (2008). Bribe Payers Index 2008. Retrieved from https://www.transparency.org/research/bpi/bpi_2008/0.
  73. Transparency International, T. (2011). Bribe Payers Index 2011. Retrieved from https://www.transparency.org/research/bpi/bpi_2011/0.
  74. Unruh, J., & Shalaby, M. (2012). A volatile interaction between peacebuilding priorities: Road infrastructure (re)construction and land rights in Afghanistan. Progress in Development Studies, 12(1), 47–61.  https://doi.org/10.1177/146499341101200103.Google Scholar
  75. Van den Heuvel, G. (2005). The parliamentary enquiry on fraud in the Dutch construction industry collusion as concept between corruption and state-corporate crime. Crime, Law and Social Change, 44(2), 133–151.Google Scholar
  76. Vee, C., & Skitmore, C. (2003). Professional ethics in the construction industry. Engineering, Construction and Architectural Management, 10(2), 117–127.Google Scholar
  77. Wang, S. Q., Tiong, R. L. K., Ting, S. K., & Ashley, D. (1999). Political risks: Analysis of key contract clauses in China’s BOT project. Journal of Construction Engineering and Management-ASCE, 125(3), 190–197.  https://doi.org/10.1061/(asce)0733-9364(1999)125:3(190).Google Scholar
  78. Wang, S. Q., Tiong, R. L. K., Ting, S. K., & Ashley, D. (2000). Evaluation and management of political risks in China’s bot projects. Journal of Construction Engineering and Management-ASCE, 126(3), 242–250.  https://doi.org/10.1061/(asce)0733-9364(2000)126:3(242).Google Scholar
  79. Wu, Y., Yang, Y., Feng, T., & Huang, Y. (2013). Government investment projects’ collusion deterrence model based on prospect theory. Journal of Industrial Engineering and Engineering Management, 27(2), 168–176.Google Scholar
  80. Xu, Y., Yeung, J. F. Y., Chan, A. P. C., Chan, D. W. M., Wang, S. Q., & Ke, Y. (2010). Developing a risk assessment model for PPP projects in China—A fuzzy synthetic evaluation approach. Automation in Construction, 19(7), 929–943.  https://doi.org/10.1016/j.autcon.2010.06.006.Google Scholar
  81. Zarkada-Fraser, A. (2000). A classification of factors influencing participating in collusive tendering agreements. Journal of Business Ethics, 23(3), 269–282.Google Scholar
  82. Zarkada-Fraser, A., & Skitmore, M. (2000). Decisions with moral content: Collusion. Construction Management & Economics, 18(1), 101–111.Google Scholar
  83. Zou, P. X. W. (2006). Strategies for minimizing corruption in the construction industry in China. Journal of Construction in Developing Countries, 11(2), 15–29.Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.School of Civil EngineeringCentral South UniversityChangshaChina
  2. 2.School of Economics and ManagementTongji UniversityShanghaiChina
  3. 3.Department of Building and Real EstateThe Hong Kong Polytechnic UniversityKowloonHong Kong
  4. 4.School of Economics and ManagementTongji UniversityShanghaiChina

Personalised recommendations