Crime in the Architecture, Engineering and Construction (AEC) Industry—The Role of Subcontractors

Abstract

This article examines the challenges posed by criminal subcontractors in the construction industry. It aims to delineate the specific crimes committed by these subcontractors and assess their impact against the broader backdrop of industry-related criminality. Employing a scoping literature review, the study explores the existing research, summarizes key findings, and highlights gaps in the current knowledge. The construction industry’s inherent complexities and reliance on extensive subcontracting create an environment ripe for criminal activities. The research questions addressed are the following: (1) What crimes are carried out by subcontractors? (2) What are the consequences of crimes carried out by subcontractors? This study identifies several major concerns: (1) adverse impacts on project management in terms of timelines, quality, and budgetary control; (2) widespread exploitation within supply chains, ranging from wage disparities to modern slavery; (3) prevalent fraudulent practices, such as bribery, collusion, and embezzlement; and (4) the detrimental effect on Health, Environment, and Safety (HES) standards. The article underscores the diversity of legal frameworks across jurisdictions and signals the need for concerted efforts to enhance crime prevention measures, foster industry-wide collaboration, and establish robust control systems. There is an urgent need for a profound understanding of the contractor–subcontractor dynamic and procurement of substandard materials. The findings suggest that the construction industry faces formidable challenges due to criminal elements, profoundly affecting project efficiency, legal compliance, and worker welfare.