Recent enforcement actions demonstrate how important a strong compliance program is for companies in the construction industry.
Contractors are accustomed to taking a lot of risks. Many
of those risks are obvious. Consider the contractor who agrees to
build a pipeline at a fixed price per foot. If his crews
can’t excavate, lay, and backfill as fast as his estimators
thought they could, the contractor is most likely on the hook for
the increased cost. Similarly, a contractor who agrees to
fixed prices for finish work that won’t be completed until
the end of the job typically owns the risk that the costs for the
finish materials will rise before the work is done. Most
contractors understand these types of performance risks are part of
the bargain and can be controlled by good management and making
sound deals. Contractors who successfully manage performance
risks are rewarded with profits. However, those profits can
quickly be depleted if contractors fail to manage
