Pittsburgh combats construction fraud

Pittsburgh Mayor William Peduto recently signed an executive order to fight construction fraud, promote worker safety, and protect city tax revenue.

The city recently experienced incidents involving unreported cash payments by subcontractors on construction projects. The Construction Fraud Executive Order cracks down on construction companies that commit tax, insurance, and workers’ compensation fraud.

It also aims to stop companies from paying workers in cash to avoid taxes. These practices allow corrupt firms to outbid honest ones and contribute to lost wages, decreased tax revenue, and unsafe and hazardous work sites, according to a news release from the mayor’s office. 

The city’s department of Permits, Licenses and Inspections, and its Finance Department, will form a committee with several local building trade groups to examine city code and to create more accountable and transparent construction development processes. The executive order requires that contractors or developers receiving city subsidies must report all workers on the project site.