The potential for fraud in the construction industry means that developers and owners must exercise careful vigilance over their projects. Unscrupulous contractors often seek to line their pockets, and the consequences have been predictable: economic and reputational damage to owners and developers in both the public and private sectors. By hiring an Integrity Monitor, owners can protect both the value of their brand, as well the project's budget.
Exiger's Construction Integrity Monitoring Program is dedicated to deterring fraud, waste, and abuse on construction engineers, forensic accountants, and project managers – all of whom have years of experience detecting and addressing fraudulent schemes. Our goal is to catch fraud before it grows into a full-fledged scandal by deterring it in the first instance or uncovering it in early stages, while it can still be remediated easily and cost efficiently.
Our initiative to fight corruption within the construction industry relies on decades of experience that our in-house management team and field personnel possess in investigating and monitoring residential, commercial, and capital infrastructure construction projects. We have deep experience recognizing, detecting, deterring, and even prosecuting the myriad fraudulent schemes that are possible in the construction industry. This experience also allows us to analyze compliance programs and design state-of-the-art controls to minimize the potential for fraud and misconduct and to recognize, detect and deter fraudulent schemes that may be attempted despite such strategic controls.
The Construction Integrity Monitorship Program can provide:
- Vendor/Contractor/Subcontractor Due Diligence
- Procurement Review
- Project Risk Assessment
- Compliance Policy Creation/Review
- Site Access Control
- On-Site Monitoring
- Labor Compliance Review (Prevailing Wage Compliance, M/W/DBE Compliance)
- Payment Requisition Review
- Vendor/ Contractor/ Specific Audit/ Job Cost Audit
- Investigative Services
- Change Order Review
- Construction Progress Monitoring
- Close-Out Audit
Highlights of construction monitoring and oversight projects undertaken by Exiger personnel, either at Exiger or at previous firms:
New York City Post Sandy Rapid Repair Program
Following Hurricane Sandy, three Construction Monitorship employees working for a previous firm managed the integrity monitorship of the New York City Rapid Repairs Program, a $300 million program to restore electricity, heat and hot water to thousands of private homes in the immediate aftermath of Hurricane Sandy. In this role, they monitored the work of one of the world's largest construction management firms and numerous electrical and plumbing subcontractors. In doing so, they detected numerous inflated billings and other irregularities, resulting in millions of dollars in savings to the City.
Newark Airport Terminal A Redevelopment Project
The Port Authority of New York and New Jersey has engaged Exiger's Construction Integrity Monitoring Program to monitor its nearly &1.5 billion Newark Airport Terminal A Redevelopment Program. The project includes the construction of a new terminal and parking garage under a design/build contract delivery system, as well as multiple design/bid/build contacts to construct bridges, roadways, utilities, and elements associated with the terminal.
Madison Square Garden
From 2011 through 2013, the Madison Square Garden Company, a privately held corporation, conducted a one-billion-dollar renovation of the Madison Square Garden, the most expensive arena renovation in history. A Managing Director of Exiger, while at a previous firm, directly oversaw the integrity monitorship of the construction, which was responsible for curbing fraud and waste on the project. He also oversaw the vetting process for subcontractors and ensured compliance with state and federal laws governing wages and employment conditions.
Hurricane Sandy Relief Program & Storm Hardening
In one of the largest repair projects ever monitored by the City of New York, the Exiger CIMP is currently implementing a construction integrity monitoring program to oversee the New York City Housing Authority's (NYCHA) expenditure of nearly $3 billion in FEMA federal disaster relief funds for repairs following the devastation inflicted on New York by Super Storm Sandy. The project spans more than 33 housing projects in Brooklyn, Queens, Staten Island and Manhattan.
Monitorships of Contractors
On behalf of NYCHA, Exiger is currently monitoring a general contractor with more than $100 million of NYCHA projects due to integrity concerns. Exiger is also monitoring a specialty contractor on behalf the Port Authority of New York and New Jersey and the New York State Department of Transportation, with combined project values exceeding $100 million.
A Managing Director at Exiger led a 5-year investigation while at OCTF that resulted in the RICO indictment, arrest, and conviction of more than 60 members and associates of the Gambino organized crime family, including the acting boss, underboss, and consigliere. The indictment centered on the family's control over a segment of New York's construction industry, and the murders committed in furtherance of the control. Corrupt construction industry and union officials were also charged as part of the massive prosecution.