Classification of Parties Affected by Crimes Against Property in the Construction Sector

Abstract

Last decade in Ukraine was marked with substantial increase of violations in the process of new objects construction, low performance quality, use of unsuitable materials and equipment, putting unfinished construction projects in operation. Comprehensive analysis of court practice proves that the most widespread ways of construction crimes committal are embezzlement of materials, instruments, ad scripts and finances, breach of duty (property securing), all types of financial fraud etc. Author presents a comprehensive study of crimes against property in the construction sector and provides arguments for the statement that criminal acts are mostly committed against construction activity coordinators – investors, applicants, real estate developers, contractors etc. That is why such crimes are committed primarily against construction contractors (multi corporate enterprises, industrial construction enterprises, holding companies, associations, corporations, syndicates, consortiums) – legal entities. Still all crimes committed in this sector interfere in interests of investors – individuals or legal entities exercising control over financial resource. It is identified that investors – individuals or legal entities putting money (owned or borrowed) in construction/reconstruction of construction object and different construction contractors – are usually victimized by criminals and suffer substantial material damage. It is grounded that further successful development of construction sector is impossible without development and implementation of efficient preventive mechanisms by the law enforcement in tight cooperation with private security services involved in construction activity.