Construction site with crumbling foundations propped up by money, symbolizing corruption.

Unmasking Corruption: How it Hurts Construction and What We Can Do

Jordan Keane in Business & Economy August 2025 • 3 min read.

"A deep dive into corrupt practices in the Ghanaian construction sector and actionable strategies to combat them for a better future."

Corruption is a global menace, particularly devastating in the construction industry. It's more than just backroom deals; it's a major impediment to economic progress, fostering inequality, and diminishing the quality of infrastructure projects. When corruption takes hold, resources are siphoned away, standards are compromised, and the public suffers the consequences.

In developing nations, the construction sector is a critical engine for growth, providing essential infrastructure and driving economic activity. However, it's also a sector acutely vulnerable to corruption. From inflated contracts to substandard materials, corrupt practices undermine the very foundations upon which these nations are trying to build a better future for their citizens.

This article will examine the state of corruption within the construction industry, drawing on insights from a study conducted in Ghana. By understanding the forms and drivers of corruption, we can start a meaningful conversation about how to address this problem and promote transparency, accountability, and ethical conduct in construction.

What Does Corruption in Construction Actually Look Like?

Construction site with crumbling foundations propped up by money, symbolizing corruption.

Corruption isn't just a single act; it's a web of unethical behaviors that can manifest at every stage of a construction project. Research highlights several common forms of corruption, each with its own damaging consequences:

These corrupt practices create a ripple effect, harming not only individual projects but also the broader economy and society. Some of the key consequences include:

Inflated Costs: Kickbacks and bribes add unnecessary expenses to projects, diverting funds from essential resources.
Compromised Quality: When contractors cut corners to maximize profits, the quality of construction suffers, leading to unsafe buildings and infrastructure.
Stifled Competition: Corrupt practices create an uneven playing field, preventing honest companies from competing for projects.
Erosion of Public Trust: When citizens see corruption rampant in construction, they lose faith in their government and institutions.
Hindered Development: Corruption diverts resources from crucial development projects, slowing economic growth and perpetuating poverty.

The construction sector's susceptibility to corruption stems from a few inherent characteristics. Projects are large-scale, unique, and complex, involving multiple parties and intricate contractual relationships. This complexity can create opportunities for unethical behavior to go unnoticed.

Building a Future Free from Corruption

Addressing corruption in construction requires a multi-pronged approach, combining robust regulations, ethical leadership, and a commitment to transparency and accountability. By working together, governments, industry professionals, and citizens can create a construction sector that delivers quality infrastructure, promotes economic development, and builds a better future for all.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1061/(asce)me.1943-5479.0000555, Alternate LINK

Title: Corrupt Practices In The Construction Industry: Survey Of Ghanaian Experience

Subject: Management Science and Operations Research

Journal: Journal of Management in Engineering

Publisher: American Society of Civil Engineers (ASCE)

Authors: Ernest E. Ameyaw, Erika Pärn, Albert P.C. Chan, De-Graft Owusu-Manu, David John Edwards, Amos Darko

Published: 2017-11-01

Everything You Need To Know

What are some of the most common forms of corruption seen in construction projects?

Corruption in construction takes many forms, including bribery to secure contracts or approvals, bid rigging to eliminate fair competition, and extortion where illicit payments are coerced. There's also fraud involving falsified documents and the use of substandard materials, as well as collusion among contractors to inflate prices and divide up projects unfairly. These unethical practices manifest at every stage of a construction project causing significant damages.

How does corruption in the construction sector impact society and the economy?

Corruption in construction leads to inflated costs on projects, which means less money for other essential services. It also results in compromised quality, leading to unsafe buildings and infrastructure. Honest companies are prevented from competing fairly, stifling competition and innovation. Furthermore, rampant corruption erodes public trust in government and institutions, and it hinders development by diverting resources from crucial projects, ultimately slowing economic growth and perpetuating poverty.

What inherent characteristics of construction projects make the sector particularly vulnerable to corruption?

The construction sector is inherently vulnerable to corruption because projects are typically large-scale, unique, and complex, involving numerous parties and intricate contractual relationships. This complexity and the scale of the financial transactions create opportunities for unethical behavior to go unnoticed or be difficult to trace. The long duration of many construction projects also adds to the challenge of maintaining transparency and accountability throughout.

What is needed to effectively combat corruption within the construction industry and foster a more ethical environment?

Addressing corruption in construction requires a comprehensive strategy that includes robust regulations to deter unethical behavior, ethical leadership to set the right tone and standards, and a strong commitment to transparency and accountability in all processes. Governments, industry professionals, and citizens must work together to promote ethical conduct, ensuring the construction sector delivers quality infrastructure and supports sustainable economic development. Whistleblower protection and independent auditing are also vital components often missing.

How can transparency and accountability be improved within construction projects to minimize corruption opportunities?

Improving transparency and accountability involves several key measures. Implementing open bidding processes can help ensure fair competition. Regular audits and inspections can detect irregularities and enforce standards. Public access to project information, including contracts and financial data, can increase scrutiny and deter corruption. Additionally, establishing clear ethical guidelines and codes of conduct for all stakeholders, along with effective enforcement mechanisms, can promote a culture of integrity within the construction sector. However, without leveraging technology solutions, progress could be slow.