Money laundering through road construction is apparently _very popular_ but I can't see what changed and why its not as popular abroad. Shouldn't the same conditions for this exist elsewhere?
Somebody direct me to a few papers on the subject but I frankly don't have the time to read them.
Generally no one employed by the city knows how to look at an expense report from a construction job and check it for plausibility; this allows some outrageous pricing for things like a few tons of bricks. Sometimes they'll hire a consultant to check the books, but often that consultant is chummy with the contractor.
In other countries where government is trusted a bit more, it's much more normal to have an engineer and a construction project manager on staff to look at a report and tell you you're getting bilked.
At a very broad I recall some of the items identified were:
- Illegal collusion between contractors capable of expensive jobs
- Illegal collusion between contractors and consultants hired by cities to help pick winning bids
- No expertise in government due to cutbacks, so no ability to vet a proposal or understand the progress made (see above)
- No accountability in government
- No accountability for contractors in in contracts
- Poorly thought out legislated process on choosing bidders
- Inefficiencies in mandated working conditions (think multiple people sitting around watching a hole)
- Government/private enterprise corruption
These are all over simplified high level points. The dynamics here get quite complex. For example, local government often signs a contract with a local contractor wherein they are able to put in stop work orders as desired without owing payment for the time. This is very expensive for the contractors, they must pay to move heavy machinery to another job or wait while paying their workers. Delays can add millions in cost/lost revenue for the contractor. The contractor thus has to drastically increase prices to hedge against these delays.
These issue touch every level of government: city, county, state, and federal. Sadly we no longer have a functional body politic capable of addressing issues of that scale.