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| Version 9 | Version 10 |
|---|---|
| Building firms 'rigged contracts' | Building firms 'rigged contracts' |
| (about 5 hours later) | |
| The Office of Fair Trading (OFT) has accused 112 construction companies of rigging bids for contracts. | The Office of Fair Trading (OFT) has accused 112 construction companies of rigging bids for contracts. |
| It said the firms colluded among themselves while bidding for contracts, leading to customers, such as local authorities, having to pay too much. | It said the firms colluded among themselves while bidding for contracts, leading to customers, such as local authorities, having to pay too much. |
| The regulator added that in a few cases firms entered into agreements whereby the successful tenderer would pay a sum of money to those that lost out. | The regulator added that in a few cases firms entered into agreements whereby the successful tenderer would pay a sum of money to those that lost out. |
| It said 40 firms had admitted price fixing, and 37 had asked for leniency. | It said 40 firms had admitted price fixing, and 37 had asked for leniency. |
| Businesses have no excuse for not knowing and abiding by the law John Fingleton, OFT chief executive See the full OFT release with names of all 112 companies | Businesses have no excuse for not knowing and abiding by the law John Fingleton, OFT chief executive See the full OFT release with names of all 112 companies |
| The cartel practice involved the use of false invoices. | The cartel practice involved the use of false invoices. |
| Construction giants Balfour Beatty and Carillion are among those the OFT accuses of taking part. | Construction giants Balfour Beatty and Carillion are among those the OFT accuses of taking part. |
| 'Cancer' | 'Cancer' |
| "Cartel activity of the type alleged today harms the economy by distorting competition and keeping prices artificially high," said OFT chief executive John Fingleton. | "Cartel activity of the type alleged today harms the economy by distorting competition and keeping prices artificially high," said OFT chief executive John Fingleton. |
| Office of Fair Trading explains how the 'rigging' worked | Office of Fair Trading explains how the 'rigging' worked |
| "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. | "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 excuse for not knowing and abiding by the law." | "Businesses have no excuse for not knowing and abiding by the law." |
| The OFT said its investigations first started in 2004 following an initial complaint regarding building contracts at Nottingham's Queens Medical Centre. | The OFT said its investigations first started in 2004 following an initial complaint regarding building contracts at Nottingham's Queens Medical Centre. |
| And on public projects, it was council tax-payers who were among the victims of the collusion, said Edward Walsh of the Local Government Association. | And on public projects, it was council tax-payers who were among the victims of the collusion, said Edward Walsh of the Local Government Association. |
| "We'll be seeking to find out whether or not councils will get any of this money back in the shape of fines," Mr Walsh said. | "We'll be seeking to find out whether or not councils will get any of this money back in the shape of fines," Mr Walsh said. |
| "Ultimately, council tax payers have had to pick up the bill if collusion has taken place." | "Ultimately, council tax payers have had to pick up the bill if collusion has taken place." |
| HAVE YOUR SAY I worked for a company which supplied the building trade in the 1980s, this sort of thing was rifeAlan, ZurichRead your comments | |
| Former quantity surveyor Bryan Rylands told the BBC that he left the industry because he was so disillusioned by the scale of the problem of price-fixing. | Former quantity surveyor Bryan Rylands told the BBC that he left the industry because he was so disillusioned by the scale of the problem of price-fixing. |
| "It continues from the self-employed builder right through to your major construction companies that are doing work here in the UK and overseas," he said. | "It continues from the self-employed builder right through to your major construction companies that are doing work here in the UK and overseas," he said. |
| "It's extensive, I mean it is a cancer, it's not benign, it is rife." | "It's extensive, I mean it is a cancer, it's not benign, it is rife." |
| Time to respond | Time to respond |
| Balfour Beatty confirmed that it had applied for leniency. | Balfour Beatty confirmed that it had applied for leniency. |
| It said in a statement that it had now reviewed its practices and was "confident that all of its subsidiaries are now fully compliant". | It said in a statement that it had now reviewed its practices and was "confident that all of its subsidiaries are now fully compliant". |
| "Balfour Beatty neither promotes nor condones anti-competitive behaviour," it said. | "Balfour Beatty neither promotes nor condones anti-competitive behaviour," it said. |
| Carillion said in a statement that the OFT's investigations only applied to its Carillion JM subsidiary, formerly separate company Mowlem. | Carillion said in a statement that the OFT's investigations only applied to its Carillion JM subsidiary, formerly separate company Mowlem. |
| This was bought by Carillion in February 2006. | This was bought by Carillion in February 2006. |
| Carillion added that the OFT had granted Carillion JM leniency. | Carillion added that the OFT had granted Carillion JM leniency. |
| An OFT spokesman said its accusations, issued in a Statement of Objections, will now go to the companies concerned. | An OFT spokesman said its accusations, issued in a Statement of Objections, will now go to the companies concerned. |
| They will then have a number of months in which to respond. | They will then have a number of months in which to respond. |
| Any firm found to be a member of a cartel can be fined up to 10% of its annual turnover, but penalties are reduced for those who co-operate with an investigation. | Any firm found to be a member of a cartel can be fined up to 10% of its annual turnover, but penalties are reduced for those who co-operate with an investigation. |