Which of the following actions is commonly associated with fraudulent construction practices?

The submission of change orders is commonly associated with fraudulent construction practices because it presents a potential avenue for manipulation and overbilling. Change orders typically occur when a project requires modifications that alter the original scope of work. While legitimate changes can be necessary due to unforeseen circumstances, they can also be misused by contractors to increase costs insidiously.

Fraudulent activity may involve submitting exaggerated or unnecessary change orders, delaying work to justify higher costs, or billing for work that was never completed. Because these documents can drastically increase the total contract amount, they are often scrutinized for authenticity and reasonableness. The fraudulent submission of change orders can result in significant financial losses for clients and is a common scheme that fraud examiners may investigate in the construction industry.

The other choices reflect ethical practices and compliance measures that, while essential for legitimate operations, do not inherently carry the same potential for fraud as the manipulation of change orders does. Accurate bookkeeping, hiring licensed contractors, and ensuring compliance with building codes are all standard practices that contribute to transparency and accountability in construction projects.