Newport Beach Construction Fraud Lawyer

Trusted Construction Fraud Attorney in Newport Beach

Construction projects may involve significant monetary investments, several parties, and complex contractual relationships. A Newport Beach construction fraud lawyer can provide legal guidance if a party is involved in a dispute related to representations about a construction project, financial disclosures, procurement practices, or other alleged wrongdoing.

Developers, contractors, property owners, investors, and other business entities may be the subject of construction fraud allegations in connection with a construction project. Engels-Janzen counsels clients on construction-related disputes and the legal and practical issues that may be involved when fraud-related claims are made.

Hire a Construction Fraud Lawyer

Engels-Janzen represents clients in construction-related disputes resulting from these complex business relationships. Our firm’s attorneys combine their legal experience with a working knowledge of the construction industry gained through Christopher Engels‘ 25 years of construction experience prior to entering the legal field.

This experience provides unique insight into many of the operational and contractual issues which can lead to construction-related disputes.

False Claims Act (FCA) Investigations

Contractors, subcontractors, consultants, and developers can all be the target of a False Claims Act investigation. A False Claims Act investigation may arise when questions are raised regarding certifications submitted in connection with a government-funded construction project, including certifications concerning compliance with project specifications or payment requirements.

When questions arise about the truthfulness of the certification or the information provided in support of the payment request, an investigation can result. An investigation can focus on project records, invoices, reporting requirements, and other information and communication generated during the course of the work.

Given the frequent complexity of public projects with their numerous stakeholders and oversight levels, pinpointing the origin of a purported problem often necessitates a thorough examination of both operational and financial data.

Bid Rigging & Antitrust Issues

Owners and developers typically rely on competitive bidding to provide price, qualification, and selection criteria for project participants. Bid rigging claims may be raised in response to concerns that the bidding process was manipulated by agreement among competitors or other inappropriate actions.

Issues related to bid suppression, market allocation, price fixing, or the exchange of confidential information can be raised in connection with both public and private construction projects. In many instances, an antitrust claim cannot be determined by examining the bid numbers in isolation.

Instead, procurement records, communications, historical bidding practices, or relationships among participants can all become relevant to evaluating whether the competitive process was impacted in selecting a project participant. Specific facts surrounding a procurement can become central to both claims and defenses.

Internal Investigations for Developers or Owners

A property owner or developer might decide to investigate an issue long before any legal action or official notification. Cost overruns, procurement issues, unexplained or suspicious payments, project delays, or complaints from project participants, for example, can all give rise to questions and concerns that merit further investigation.

An internal investigation can assist decision-makers in understanding what happened, identifying potential issues of concern, and weighing options for moving forward. In certain cases, concerns that arise during an internal investigation may implicate compliance obligations, especially where the project is publicly funded. Often, there is a great deal of clarity to be gained by investigating before positions harden and disputes intensify.

Prevailing Wage & Compliance Audits

Prevailing wage requirements, reporting obligations, licensing, and other regulatory issues are common concerns for public construction projects. Issues related to employee vs. independent contractor status, payroll, wages, and documentation for a project may lead to an investigation by a government agency or other interested party.

Examination of payroll records, certified payroll reports, contracts, and other project documentation may assist in determining whether the requirements have been met. Unlicensed contracting is subject to penalties under California Business and Professions Code § 7028, and licensing issues may be related to a broader range of compliance issues. These issues can be highly technical and often involve both construction and regulatory considerations.

Owner-Developer Fraud Disputes

Construction projects often rely on ongoing cooperation between property owners and developers. This is especially true when the costs are high, and there are long-term goals in place for the project’s completion. Disputes can occur when one party feels that important information about project costs, financing, timeframes, feasibility of the project, or anticipated returns was withheld or misrepresented.

Allegations can be about financial disclosures, project management decisions, budgeting practices, or the use of project funds. For example, the Federal Trade Commission reported that consumers lost over $12.5 billion to fraud in 2024. Allegations of misrepresentation or nondisclosure can also lead to significant financial losses if important business decisions are made on the basis of inaccurate or misleading information.

Construction Investment & Partnership Disputes

Construction and development projects often involve investors, business partners, joint venture participants, or other individuals or entities with a financial interest in a project. Problems can surface among project stakeholders regarding oversight, financial statements and profit payouts, capital contributions, or other financial concerns connected to the development and its resources.

The Justice Department announced that False Claims Act settlements and judgments totaled more than $6.8 billion in fiscal year 2025. Construction investment disputes may involve reviewing partnership or operating agreements, project budgets, accounting records, and communications among the parties, as well as evaluating the rights and obligations established by the governing agreements.

High-Value Construction Contract Misrepresentations

In large construction projects, negotiations on project costs, schedule, qualifications, resources, and expected performance can be extensive. A dispute may center around an accusation of misrepresentation or concealment of material information during contract negotiations or project performance.

Claims related to contractor qualifications, licensing status, financial stability, experience, or construction capabilities can occur on public and private projects. California Business and Professions Code § 7028 addresses penalties for acting as a contractor without a license, so licensing status can be a relevant issue in some cases.

Analysis of these types of claims may involve contracts, project records, proposals, and correspondence, as well as other evidence surrounding the representations made.

Contact a Newport Beach Construction Fraud Lawyer

Construction fraud cases often turn on large financial interests, complicated business relationships, and disputed interpretations of project records and contractual obligations. Disputes may involve developers, contractors, owners, investors, and other project participants, and often a thorough investigation of the facts is warranted.

Engels-Janzen advises clients on construction-related disputes in Orange County and Southern California and frequently litigates in the Orange County Superior Court. Our attorneys offer practical advice and aggressive representation based on the facts and circumstances of each case. Schedule a consultation today to hire a construction fraud lawyer.