Specialists voice fraud Bill concerns

The Specialist Engineering Contractors' (SEC) Group has warned that fraud cases in construction will increase if a new Bill becomes law.
The Home Office is considering responses to its 32-page Fraud Law Reform - Consultation for Proposals on Legislation
document.
The new Bill is expected to be put before Parliament by the end of the year and, under the proposed legislation, the definition of fraud is being expanded.
One of the main areas to affect construction will be a clampdown on fraud by false representation. If it can be proved that a defendant was aware that information might
be untrue, rather than the current law that states the information must be known to be untrue, it can now lead to a
prosecution.
Furthermore, the proposed legislation sets out three scenarios whereby, even if there isn't a legal duty to disclose, a prosecution can still be brought:
nÊIf the information is of a kind which a person trusts the defendant to disclose to him.
nÊIf the defendant knows the other person is trusting him to disclose information or is aware that he might be.
nÊIf any reasonable person would expect the defendant to disclose the information to the other person.
Companies or individuals found guilty of fraud face a fine or a maximum prison sentence of 10 years.
SEC Group chief executive Rudi Klein said: "The proposals are very general and will have a significant impact on construction, especially as the new powers will encourage police to pursue prosecutions.
"A clampdown on false representations will give better protection to subcontractors as main contractors will no longer be able to inflate the 'set-off' costs they impose on their supply chain when it comes to disputes. The new legislation will also stop the common problem of main contractors' cheques bouncing when it comes to subcontractors cashing them in.
"However, changes over the disclosure of information will seriously hamper partnering contracts, as members of the team will be able to report those who are not forthcoming with the principles of partnering and allowing open book information," he added.