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Guide to Combating Corruption & Fraud in Infrastructure Development Projects

  • Detection
    • Complaints
      • General initial interview questions
      • How to Generate Complaints and Reports
      • List of fraud reporting sites for Multilateral Development Banks
    • Red Flags
      • Red Flags Listed by Project Cycle
      • “Visible red flags” of Implementation Fraud
      • Proactive Fraud Detection Tests
    • Due Diligence
      • “Top Five” Due Diligence Background Checks
      • Free and Subscription Internet Sites
      • Local and On-Site Due Diligence Checks
      • Due Diligence Service Providers
  • Proof
    • Proving Common Schemes
      • Corruption Schemes
      • Bid Rigging Schemes
      • Collusive Bidding Schemes
      • Fraud Schemes
      • The Basic Steps of a Complex Fraud and Corruption Investigation
    • Elements of Proof for Sanctionable Offenses
      • Elements of Proof of Corrupt Practices
      • Elements of Proof of Obstructive Practices
      • Elements of Proof of Coercive Practices
      • Elements of Proof of Collusive Practices
      • Elements of Proof of Fraudulent Practices
  • Evidence
    • The Basics of Evidence for Investigators
  • Prevention
    • Anti-fraud Resources
Home » Detection » Red Flags of Corruption, Bid Rigging and Other Schemes » Red Flags of Change Order Abuse

Red Flags of Change Order Abuse

These are some “red flags” of change order abuse

  • Low bid contract awards followed promptly by change orders that increase the price of the contract
  • Sole source contract awards just below the competitive bidding threshold, followed promptly by change orders that increase the value of the contract
  • Numerous or questionable change orders for a specific contractor approved by the same project official
  • Poorly documented change order requests and approvals
  • Change order request is approved at a higher level than that of the original procurement request
  • Request for a change order comes from a different organization than the procuring entity
  • Weak controls and lax procedures regarding the review and approval of change orders, e.g., inadequate segregation of duties under which the same project official determines the need for and approves the request for a change order
Category: Red Flags of Corruption, Bid Rigging and Other Schemes

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