Contract Management

Governments at all levels contract for any number of things: construction, supplies, professional services, outsourced governmental services…the list goes on and on. Due to the pervasiveness of contracts and contracting, the list of fraudulent contracting schemes also goes on and on. The size of governmental contracts and the difficulty in detecting fraud related to contract management make them attractive targets.

Bribery and corruption schemes are the most prevalent. These schemes are perpetrated when fraudsters use power or money to influence a transaction so that it benefits them at the expense of others.

Other schemes related to contract management involve unnecessary contract amendments, product substitution, and various types of inflated billing and performance misrepresentations.

Many of the same types of fraud, their related red flags and the best practices to combat them are similar to those involved in grants management.

Among the concerns of contract management are the prevention, detection and correction of fraudulent activities and their negative effects. Contract managers must be concerned when the red flags listed below are encountered.