- 2018 2018
- Grant Thornton announces new offering to help retailers navigate complex financial services environment
- Australia lags global average for 5th consecutive year on gender diversity
- Grant Thornton appoints lateral partner hire, Daniel Mastroianni to lead its new debt advisory service offering
- New Partners continue to strengthen Grant Thornton’s leadership team
- Diversity of thought - the missing ingredient for many family businesses
- Philip Campbell-Wilson joins the Grant Thornton restructuring team
- Continuing our commitment to retail, through our merger with GNC Group Consulting
- Mr Ian McCall Appointed as Partner of Growth Advisory Team
- Proudly supporting Windlab’s industry-leading renewable energy project
- Health and aged care the future for lending growth
- Grant Thornton appoints Anthony Beven to Partner, furthering its commitment to serving Australia’s Indigenous business community
- The ATO is coming no matter your size – are you ready?
- Canary indicates life in the tunnel for junior miners
- Cyber risk is indiscriminate: Census cyber-attack, a lesson for mid-size business
- Grant Thornton Australia congratulates Allegro Funds
- Lagging digital competitiveness creates bumpy economic transition
- Strong valuation multiples & private equity interest create better conditions ahead
- Investor demand for gold climbs further but will Brexit upset the early signs of uptick for junior miners?
- Brexit export opportunities & setbacks - agribusiness comes out on top as Australia becomes gate way to Asia
- Brexit signals opportunity for Australian Fintech’s and trouble for Britain’s Fintech community
- 11 new partners boost Grant Thornton’s leadership
- Brad Savage joins Grant Thornton, marking 8th lateral partner hire this financial year
- Changes uncork competitiveness in the wine industry
- Level playing field for local retailers as Government announced low value import threshold to be abolished
- "Public Sector Productivity” – no longer an oxymoron
- Mid-size businesses recognised and supported in 2016-17 Federal Budget
- Innovators more confident to undertake research as R&D incentives in question, finally remain untouched
- Junior miners and explorers not forgotten in the 2016 federal budget
- Manufacturers match made in heaven with invigorated workforce
- Agribusiness receives critical infrastructure investment which lays foundation for continued growth in Asia
- Flex-appeal goes a long way towards workplace happiness: Grant Thornton breaks the mould
- $300bn in cyber breaches: Mid-size business welcomes Cyber Security Strategy
- Statement re: Arrium Voluntary Administration
- Arrium Limited appoints Grant Thornton as Voluntary Administrators
- Highest economic contribution; yet mid-size business goes cap in hand on budget incentives
- What women really want in the boardroom
- Biggest contributors of technology innovation go cap in hand
- Netflix tax paves way for more to come
- Digesting the prospects of GST on fresh food
- Strategic Development Fund & Minister for Mid-Size Business set to fill Government’s revenue gap
- Proposed changes to insolvency laws allow reorganising for success and welcomed news for Australian mid-sized business
- ChAFTA provides platform for mid-size business to deliver jobs and revenue
- Outlook brightest for gold juniors
- TPP creates growth beyond limitations of local market margin squeeze for professional services
- Move on from equal representation and embrace independence
- Australia slips from top spot; ranking third on global dynamism index
- Real estate investment driven by gut feeling rather than data
- Speak now or forever hold your peace on innovation
- Burgeoning Queensland market creates 7 senior appointments
- Revision of board governance vital for growth
- Grant Thornton further invests in leadership and strengthens its capabilities
- Record low investment rates ≠ record high investment
- Grant Thornton named one of the 50 'World’s Most Attractive Global Employers'
- Automation is the way of the future
- Incentives to invest in innovation hang in the balance
- Mid-size food producers looking for fair share of the federal budget exports pie
- Grant Thornton bolsters its digital advisory offering through acquisition of the Consult Point Group
- Crack down on entertainment salary packaging following changes to FBT
- Federal Budget overlooks Australia's Life Sciences sector
- R&D in the firing line again
- Changes to the GST base marks the beginning of much more to come
- A friendly outcome for Financial Services
- Budget mixes messages for the tech sector
- Encouraging support for innovation
- Horse has bolted on innovation, now is the time for industry support
- Action needed to ensure ongoing retail growth
- Whistling the profitability tune in manufacturing
- Don’t tamper with tax on super
- New CEO appointed for Grant Thornton effective 1 July 2015
- Little known ways to avoid reliance on supermarkets & combat margin squeeze
- Capital conundrum in Australian Agriculture
- Property developers hit by disincentives to foreign investors
- Madeleine Mattera boosts Grant Thornton’s Financial Services offering
- Mid-size businesses welcome Senate support of innovation incentives
- Australia fails to measure up to Eastern European women in business
- Parliament set to provide explorers much needed investment incentive today
- FTA fast tracks Australia’s mid-size sector
- Property developers substantiate claims to abolish stamp duty
- Are our food & agri producers best positioned to take advantage of the FTA with China?
- Manufacturers to increase relevance in China’s supply chain
- Everyone’s a winner as coal tariffs set to be removed
- Mid-size businesses pay the price on profit shifting
- Growth sectors driving confidence in Australia's deals market
- Australia outranks global peers in sustainable practices
- Aussie business gains helping hand to compete & grow
- To succeed in China we must understand Chinese business better
- Grant Thornton expands national footprint to North Queensland
- What’s next for Australian retailers?
- Are we poised to maximize growth opportunities from the free trade agreements?
- Educational performance stagnates as funding dominates debate
- Clarity in sight for the automotive industry
- Property sector’s significant revenue burden could decrease
- Talk of a budget emergency won’t boost consumer confidence
- R&D Rate Reduction will hurt vital product development in F&B
- Manufacturers suffer structural imbalances inhibiting long-term growth
- – Industries of the future given the slip as Federal budget overlooks the ICT sector
- Affordable Housing backbenched
- GST reform left out in the cold on budget night
- The Sweet and Sour for the Life Sciences Industry
- Government announces $11.6bn infrastructure investment to build our nation
- Changes to the R&D tax offset do not encourage growth
- Save now, benefit in the future
- Fine line in downsizing achieving public sector productivity gains
- Food & beverage sector relishes ripe acquisition opportunities
- Pioneer charities reap rewards of social media governance
- Private equity firms shopping for Australian retail growth
- Australian innovators seek even playing field in attempt to reverse the brain drain
- Professional practices face new risk assessment on profits
- First glimmers of hope emerge from dire conditions for junior miners
- Business optimistic for further growth
- Lenders warn conditions will remain tight over the next 12 months
- Fraud and corruption pose threat to global growth in the construction industry
- Grant Thornton Australia wins Thomson Reuters “Advisory Firm of the Year”
- Private equity firms adapt to a “new road map” for fundraising
- Social enterprises ring warning bells for Not for Profit sector
- Collaboration needed to keep Not for Profit sector healthy
- Power of mega-retailers a global challenge for food and beverage sector
- Australian Construction fraud costs estimate at $5 billion per year
- Business advisory leader Grant Thornton teams up with MYOB for practice solutions
- Australia rated best for growing business
- Grant Thornton named one of the Top 50 Global Business Employers
- Grant Thornton Australia announces the appointment of Jason Sorby, Partner – Operational Advisory Lead for Queensland
- ATO on the warpath – 2013-14 Compliance program released
- A major blow for business as FBT administration on cars set to skyrocket
- Business resolutions for a new financial year – lessons from eCommerce
- Ford announcement not the Death-Knell for the Local Industry
- Infrastructure spend to keep pace with population growth in major cities
- Measures to encourage exploration critical, yet absent
- MBS indexation freeze set to transfer costs to patients
- Not for Profit: Status quo for now, but for how long?
- Federal Budget does little to encourage investment in Australia’s digital economy
- Budget shuns retail sector
- Education funding alone will not improve school performance
- Funding costs to rise for overseas investments
- Thin capitalization changes to stifle business investment
- Fair Work Commission to address bullying complaints
- CGT 10 % Non-Final withholding tax – Another disincentive for foreign investors
- Research and development: The give and the take
- Continued uncertainty for Australian businesses going offshore
- Has the Budget killed Australia’s Competitiveness in the Asian Century
- Government fails to commit to real reform for future Australians
- Government fails to address SME’s basic wish list
- Public sector hit hard by Budget shortfall
- How might the Federal Budget impact the Not–for–Profit sector?
- ‘Out of favour’ sectors should be reconsidered
- Work/life balance – everyone should strive for it!
- What women want
- Tax reform story not over for biotech industry
- Superannuation reforms – More about winning an election than long term reform
- Routes to the top – the best and worst places for women to get top job
- R&D Incentive update: A plan for Australian jobs
- Junior miners not on Government agenda
- International Women’s Day 2013
- Innovative companies will move offshore if tax rate not reviewed
- Grant Thornton named International Accounting Bulletin’s Network of the Year
Technology could save the global construction sector from a $1.5 trillion fraud bill in 2025
"With the Construction market coming out of recession – fraud will be hot on its heels.”
– Erik Lioy, Fraud specialist. Grant Thornton US.
As growth returns to the global economy, the international Construction industry risks being targeted as a weak link by fraudsters as levels of other crime fall, according to an international report released in Australia today.
The report calls for the global construction industry to make better use of information technology to fight fraud – an area where the sector is said to lag well behind others, particularly here in Australia.
Time for a new direction: fighting fraud in Construction, a report released by Grant Thornton following research carried out in Australia, Canada, India, the US and the UK, estimates the cost of fraud to account for between 5% and 10% of revenues in the construction industry.
There are currently no authoritative figures on the scale of fraud in the Construction industry. However, with recent estimates valuing the global construction industry at US$8.6 trillion, expecting to grow to US$15 trillion by 2025, this could mean a cost to business of almost US$1trillion globally, rising to US$1.5 trillion by 2025 if action is not taken.
An ex-Detective for the City of London Police, Chris Watson now works as a Forensic Consulting partner at Grant Thornton Australia and was a contributor to the report. He argues that vital lessons can be learned from policing, where technology has been instrumental in the reduction of crime and is increasingly used to identify, gather evidence, and even predict where crime will occur.
“Since the early to mid-1990’s, crime against people and property has significantly fallen. In the G7 group of countries for example, between 1995 and 2010 robbery fell approximately 20%, murder by over 30%, and vehicle theft has halved . Reasons for these reductions are varied, but the adoption of technology in detection and prevention has definitely been a key factor.”
“While perpetrators of fraud have used technology to their own ends, on the whole, technology favours those investigating it. It is now possible to combine large amounts of data to identify threats and possible weaknesses in control,” said Watson.
Business has enlisted these measures against fraud in areas such as finance in the ways they have reacted to cybercrime and money laundering threats. However, Watson says construction companies are well behind the curve in their adoption of these types of protective measures.
“The Construction industry in Australia is 10-15 years behind the curve in the use of fraud detection and prevention technology.
“Fraud poses a significant threat to the profitability of these businesses. It is now so commonplace that it is often seen as part of the cost of doing business. With the systems now available, this does not have to be the case.
For example, given the prevalence of bid-rigging in Construction – where collusive tendering takes place during the procurement process - companies can use technology such as e-auctions, which can be effective in preventing supplier collusion or instances of corruption. Likewise, a data dump of employee and contractor addresses and bank accounts can be used to highlight suspicious links”, Watson said.
“There are now many ways available for the sector to raise their game”.
The report also recommends companies put aside reputational issues and speak more openly about the issue of fraud, and in turn, foster a greater willingness by companies to prosecute the perpetrators.
“More companies need to take their head out of the sand and recognise that fraud and corruption costs, not only in terms of profits, but also a company’s reputation. It’s a real threat to growth,” said co-contributor, Sian Sinclair, Grant Thornton’s Australian leader, Real Estate and Construction.
“Companies should consider a more open approach and prosecute perpetrators more often. This will send out a message that the construction industry is not open for fraud.”
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Grant Thornton Australia provides audit, tax and advisory services to dynamic, growing organisations and is a single national firm operating from eight offices, with over 150 Partners, more than 1,200 people across Australia and national turnover of AUD $232 million. Grant Thornton International is the fastest growing international accounting network in the world, with a global turnover of US$3.7billion and more than 30,000 people and 2,500 partners.
Notes to editors
Time for a new direction: fighting fraud in Real Estate and Construction is a report produced by Grant Thornton. The Chartered Institute of Loss Adjusters produced a report in 2011 estimating that fraud in construction in the UK amounted to 10% of revenue, totalling £6.5 billion, or £40,000 per company. In 2012 the Association of Certified Fraud Examiners estimated that globally 5% of construction revenue is lost to fraud. In July 2013 Global Construction Perspectives and Oxford Economics published a report entitled Global Construction 2025 in which they estimated that in 2012 the global construction market was worth US$8,663 trillion in 2012 and with projected growth of 4.3% a year would rise to a value of US$15,030 trillion by 2025.
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1 In July 2013 Global Construction Perspectives and Oxford Economics published a report entitled Global Construction 2025 in which they estimated that in 2012 the global construction market was worth US$8,663 trillion in 2012 and with projected growth of 4.3% a year would rise to a value of US$15,030 trillion by 2025. The Chartered Institute of Loss Adjusters produced a report in 2011 estimating that fraud in construction in the UK amounted to 10% of revenue. In 2012 the Association of Certified Fraud Examiners estimated that globally 5% of construction revenue is lost to fraud. Using the estimated 5% to 10% of revenue lost to fraud, would give an estimate of up to $US1.5 trillion in Construction fraud per year.
According to the Australian Bureau of Statistics in 2010/11 the Construction Industry produced $102 billion of value, equating to 7.7% of the total economy. Applying the Association of Certified Fraud Examiners 2012 estimate of 5% of revenue lost to fraud, would give a total estimate of AU$5.1 billion in Construction fraud per year.
2 The Economist (July 2013)