The Criminal Liability Arising from Fraud in Construction Contracts

Abstract

Fraud in construction contracts represents one of the most serious offenses affecting public safety, economic stability, and confidence in contractual dealings. It involves deceptive practices that undermine the integrity of construction processes, including the use of non-standard materials, forgery of documents, and manipulation during project execution. This paper aims to analyze the concept of fraud in construction contracts and the criminal liability arising therefrom under Iraqi legislation, in comparison with Egyptian and French laws. The study adopts a comparative analytical methodology, examining statutory texts, judicial precedents, and professional standards to highlight the similarities and differences in legislative approaches. The results reveal that while France and Egypt have established comprehensive and stringent punitive frameworks, Iraqi legislation remains deficient, relying primarily on general criminal provisions that fail to ensure adequate deterrence. The French and Egyptian legislators explicitly criminalize construction-related fraud, imposing imprisonment, fines proportional to the value of non-compliant works, and complementary penalties such as license revocation and publication of judgments. In contrast, Iraqi law provides only limited sanctions, which are disproportionate to the gravity of the offenses. The paper concludes by recommending legislative reform to introduce specialized criminal provisions addressing construction fraud, the establishment of a national authority for construction quality control, and the enhancement of professional accountability to protect lives, property, and public trust.