In this paper, we formulate a game theoretic model to analyze the mechanism of the corruption occurrence between the contractor and the upper officer or subordinate officers, whereby focusing the implementation stage of construction projects in developing countries. The major concerns are on the effects of the deterrence policies on the corruption in different internal structure of the governments. In the centralized structure, the proper external penalty can prevent the upper officer taking a bribe from the contractor. On the other hand, in the decentralized structure, the internal penalty might not be effective, and the external penalty for the upper officer and the internal penalty for the subordinate officers are simultaneously introduced to deter the corruption between the contractor and the subordinate officer.