Menu
17/04/2008
Over 100 Construction Firms Accused Of 'Bid-Rigging'
The Office of Fair Trading (OFT) has accused over 100 construction firms of "bid-rigging" in one of its largest ever investigations.
Construction giants Balfour Beatty, Carillion, Connaught, Interserve and Kier are among the 112 firms alleged to have taken part in a cartel to fix prices when bidding for business.
Approximately 40 companies had already admitted price-fixing in the inquiry, which began after an initial complaint in the East Midlands.
According to the OFT, another 37 firms have applied for leniency.
Balfour Beatty said in a statement: "The company and its operating businesses have co-operated fully with the OFT in all aspects of its investigation. As a result and subject to ongoing co-operation, the OFT has granted leniency to Balfour Beatty, thus reducing any fines which might ultimately be levied on Balfour Beatty or any of its operating businesses.
The inquiry spans 240 alleged cases where firms have colluded to inflate prices during a tender process, covering both the private and public sector."
The OFT has also received evidence of cover pricing implicating many more companies on thousands of tender processes, but has focused its investigation on approximately 240 alleged infringements which are being pursued in the Statement of Objections (SO).
No assumption should be made at this stage that there has been an infringement of competition law by any of the companies named in the SO.
The 112 parties concerned now have the opportunity to make written and oral representations which the OFT will take into account before making a final decision as to whether competition law has been infringed.
John Fingleton, OFT Chief Executive, said: "Cartel activity of the type alleged today harms the economy by distorting competition and keeping prices artificially high.
"This investigation, together with the OFT's previous decisions in the roofing sector, will hopefully send out a strong message to the construction industry about the seriousness with which we view suspected anti-competitive behaviour. Businesses have no excuses for not knowing and abiding by the law."
(CD/JM)
Construction giants Balfour Beatty, Carillion, Connaught, Interserve and Kier are among the 112 firms alleged to have taken part in a cartel to fix prices when bidding for business.
Approximately 40 companies had already admitted price-fixing in the inquiry, which began after an initial complaint in the East Midlands.
According to the OFT, another 37 firms have applied for leniency.
Balfour Beatty said in a statement: "The company and its operating businesses have co-operated fully with the OFT in all aspects of its investigation. As a result and subject to ongoing co-operation, the OFT has granted leniency to Balfour Beatty, thus reducing any fines which might ultimately be levied on Balfour Beatty or any of its operating businesses.
The inquiry spans 240 alleged cases where firms have colluded to inflate prices during a tender process, covering both the private and public sector."
The OFT has also received evidence of cover pricing implicating many more companies on thousands of tender processes, but has focused its investigation on approximately 240 alleged infringements which are being pursued in the Statement of Objections (SO).
No assumption should be made at this stage that there has been an infringement of competition law by any of the companies named in the SO.
The 112 parties concerned now have the opportunity to make written and oral representations which the OFT will take into account before making a final decision as to whether competition law has been infringed.
John Fingleton, OFT Chief Executive, said: "Cartel activity of the type alleged today harms the economy by distorting competition and keeping prices artificially high.
"This investigation, together with the OFT's previous decisions in the roofing sector, will hopefully send out a strong message to the construction industry about the seriousness with which we view suspected anti-competitive behaviour. Businesses have no excuses for not knowing and abiding by the law."
(CD/JM)
Related UK National News Stories
Click here for the latest headlines.
10 July 2013
OFT Review Sees 11 Payday Loan Firms Change Policies
An Office of Fair Trading (OFT) warning has resulted in 11 payday loan companies deciding to stop offering short-term loans. Some 22 other companies have yet to respond to the regulator. Following a year long review, which found widespread bad practice in the industry, the OFT began writing to the 50 largest payday lenders in March.
OFT Review Sees 11 Payday Loan Firms Change Policies
An Office of Fair Trading (OFT) warning has resulted in 11 payday loan companies deciding to stop offering short-term loans. Some 22 other companies have yet to respond to the regulator. Following a year long review, which found widespread bad practice in the industry, the OFT began writing to the 50 largest payday lenders in March.
18 July 2005
Engineering firm pleads guilty to Hatfield safety breach
Engineering firm Balfour Beattie has pleaded guilty to the charge that it breached safety standards before the Hatfield train disaster, in which four people died. The change of plea comes after the company, and five of its managers, were cleared of corporate manslaughter charges last week.
Engineering firm pleads guilty to Hatfield safety breach
Engineering firm Balfour Beattie has pleaded guilty to the charge that it breached safety standards before the Hatfield train disaster, in which four people died. The change of plea comes after the company, and five of its managers, were cleared of corporate manslaughter charges last week.
02 November 2005
OFT encourages firms to ‘blow the whistle’
Businesses who ‘blow the whistle’ on other firms involved in price-fixing and other anti-competitive behaviour will be entitled to partial and total immunity from fines, the Office of Fair Trading has announced.
OFT encourages firms to ‘blow the whistle’
Businesses who ‘blow the whistle’ on other firms involved in price-fixing and other anti-competitive behaviour will be entitled to partial and total immunity from fines, the Office of Fair Trading has announced.
17 August 2005
Government recommends care home changes
A Government's action plan to improve the quality of care home services has been welcomed as a "positive response" by the OFT. However, consumer group 'Which?' prompted the original OFT inquiry, has criticised the proposed reforms as "vague" and called for more detail to be included.
Government recommends care home changes
A Government's action plan to improve the quality of care home services has been welcomed as a "positive response" by the OFT. However, consumer group 'Which?' prompted the original OFT inquiry, has criticised the proposed reforms as "vague" and called for more detail to be included.
28 June 2011
OFT To Take Action Over Passenger Surcharges
The OFT has put passenger travel companies on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws.
OFT To Take Action Over Passenger Surcharges
The OFT has put passenger travel companies on notice to change misleading debit and credit card surcharging practices or face enforcement action under consumer protection laws.
-
Northern Ireland WeatherThis Evening and Tonight:A fine end to the day with some sunshine, then clear spells overnight. Low cloud could form around some Irish Sea coasts later in the night, or a few fog patches in prone spots.. Minimum temperature 9 °C.
