2008 OFT issues statement of objections against 112 construction companies

source: National Archives


22 Sep 2009

OFT fines 103 construction firms £129.5m for bid rigging – Telegraph

Among those fined were big construction companies , including Kier and Interserve. Kier was given the biggest fine at £17.9m and Interserve the second biggest at £11.6m.

A subsidiary of Balfour Beatty, Mansell, is to be fined £5.2m. Balfour Beatty said the anti-competitive behaviour took place before it bought the company.

Eighty-six of the firms received reduced penalties because they admitted their involvement in cover pricing.  To read more – click here.

The BBC reported “The fines were largely for the practice known as “cover pricing”. This is where building firms submit quotes for jobs that are not actually priced to win the contract, so the client gets a misleading idea about the real extent of competition.” and “In 11 instances investigated by the OFT, the body found that the lowest bidder faced no competition because all other bids were cover bids.  It also found six instances where successful bidders had paid an agreed sum of money to the unsuccessful bidder. These payments were between £2,500 and £60,000 and were made using false invoices.” To read more, click here.


2011

OFT cover pricing fines slashed 89% on appeal – to read more, click here