Reporting Construction Contractor Fraud
Last updated on June 8, 2026
Construction contractor fraud occurs when contractors cheat the public by overcharging or cutting corners on the construction of courthouses, post offices, rail lines, prisons, airports, highways, bridges or other public works.
The False Claims Act (FCA) is a powerful tool that the government uses to fight back against fraud, using a combination of rewards and penalties. It has been very successful in stemming the tide of fraudulent claims. Fischer Legal Group is a leader in working with whistleblowers to do the right thing and receive a reward for doing so.
Application Of The False Claims Act In Construction Projects
In the construction industry, many projects involve government funding or oversight, including work tied to city, state and federal agencies. In areas such as New York City and the surrounding metro region, large-scale public projects through agencies like the Metropolitan Transportation Authority (MTA) and Port Authority create frequent opportunities for fraud to occur.
The FCA allows individuals with firsthand knowledge of fraudulent conduct on these projects to come forward and report it. These whistleblower cases often involve detailed billing practices, contract compliance issues and coordination with government investigations.
Construction Billing Fraud Occurs At Every Level Of Government
Qui tam cases may be filed at the federal, state or local levels. Cases can take many different shapes.
- Falsifying costs
- Overcharging
- Inflating rates
- Paying kickbacks to win contracts
- Rigging bids
- Using substandard or out-of-spec materials
- Falsifying material costs
- Performing substandard workmanship
- Failing to follow contract plans
- Committing payroll compliance fraud
- Failing to comply with subcontracting plans
- Employing or contracting unqualified or untrained personnel
Certain types of construction contractor fraud appear more frequently in government-funded projects. For example, bid rigging may involve contractors coordinating with competitors to manipulate the bidding process and secure contracts at inflated prices. Material substitution can occur when lower quality or noncompliant materials are used while billing for higher grade products.
Billing fraud may involve inflated labor hours, duplicate charges or misrepresented costs tied to project work. In some cases, fraud may also involve misuse of subcontracting requirements, including falsely reporting participation by minority- or disadvantaged-owned businesses to meet contract obligations.
Who Can Report Construction Contractor Fraud
Individuals with firsthand knowledge of fraud on government-funded construction projects may be able to report it under FCA. This can include employees, subcontractors, suppliers and others involved in project operations or oversight.
You do not need to be in a senior role to raise concerns. In many cases, those working directly with billing, compliance, materials or project management may be in a position to recognize irregularities. Reporting may involve sharing information about contract practices, billing activity or material use tied to government work.
Common Questions About Whistleblower Cases
Individuals who consider reporting fraud often want clear guidance. They want to know what to expect. They also want to understand what protections may apply. These questions may include the following.
Do I need proof before calling?
You do not need complete proof before you reach out. Many people contact a law firm with early concerns that come from daily work tasks such as a billing issue, an unusual email or something that raises questions. Even without full records, your observations may matter.
An initial discussion can help you sort through what you know. It can also help you understand whether your situation may involve fraud under FCA. If your case moves forward, you may need to share what you have. This may include emails, invoices or project records tied to government-funded work.
What if the contract is already completed?
A completed project does not block an FCA claim. Many issues appear after the work ends. For example, audits may uncover billing problems or compliance issues. In some cases, problems surface months later. Fraud may still depend on how the work was performed and billed. Because of this, timing still matters. When you raise concerns early, you help preserve key details and make it easier to review what happened.
How long does an investigation take?
Investigation timelines vary from case to case. Some projects involve many parties or large amounts of data. These factors can affect how long a review takes. When a case begins, the court places it under seal. This means the case stays private at first while the government reviews the claims.
The government then decides how to proceed. In many cases, the review period extends. Investigators may examine records, speak with witnesses, and review contracts and billing details. Some cases move faster, while others take more time based on the facts and available evidence.
Can my employer retaliate against me?
FCA includes protections against retaliation. These protections apply to employees, contractors and agents. They may apply when someone reports suspected fraud or tries to stop misconduct. Retaliation can take many forms. It may include termination, demotion or reassignment.
In some cases, duties may change or work conditions may shift. Many people worry about job security and long-term career impact. You can raise these concerns during an initial consultation to better understand what protections may apply.
Contact Us To Discuss Your Concerns
If you work in compliance or accounting, or have reason to know that your company’s dealings with the U.S. government involve fraudulent action, we would like to meet with you on a no-charge, no-obligation basis to assess the strength of your case. Conversations are always confidential and protected by the attorney-client privilege. Call Fischer Legal Group at 212-577-9231 or email our lawyers a brief description of the case.