Researchers built upon a previous report in 2010 that identified steel, fasteners and valves as the top-counterfeited items in the construction industry. The latest study now pegs valves, electricals, pipes/tubes and bolts as the most-faked parts that land on construction projects.

Making matters worse, the majority of construction-related firms are not effectively detecting CFSI, researchers say. In more than half the cases mentioned in the study, firms identified fakes after they were already installed. Most companies, or 83% of the respondents, also said they did not have access to a CFSI database. In addition, more than 60% had no written guidelines or provided training to detect CFSI.

"Two-thirds of those surveyed are not effectively addressing the risk, said Gomen, whose panel called upon CII members to develop a construction-specific CFSI database to supplement broader existing ones, such as one that ERAI Inc. manages.

Tagging Goods

In addition to industry awareness, technology may soon play a larger role in mitigating CFSI, according to Reg Hunter, senior program director at research group Fiatech, who spoke to ENR during a recent phone interview.

"You can come up with these policies, but at the end of the day you need some technologies that can protect you," said Hunter, who is working with suppliers to install RFID tags and barcodes on products as part of a global material information (GMI) process that can be accessed via a handheld device.

Tracking a specific item's birthdate, serial number, specifications and other details can be used to validate authenticity, he noted.

"You can walk up to a container [of goods] and essentially have all the product information about it," said Hunter. One challenge, he warned, is getting suppliers to embed this information in their products.

"They would do it if they knew the industry was going to use it," he explained.

Call the Cops

Law enforcement is not just busy busting crooks selling fake Nike shoes; they are becoming more aware of the CFSI problem in construction, too. But officials at such agencies as the Federal Bureau of Investigation and U.S. Customs and Border Protection ask companies to call immediately when suspicious items crop up.

"We rely heavily on open-door communication from industry," explained Rebecca L. Keithley, a supervisory special agent with the FBI, who was at the CII meeting representing the National Intellectual Property Rights Coordination Center, a federal clearinghouse that coordinates with other agencies around the world.