Construction Confederation responds to OFT E-mail
Thursday, 17 April 2008

The Construction Confederation has called on the Office of Fair Trading (OFT) to ensure a sensible and proportionate response to the findings of their four-year investigation into industry practices.

The bulk of the alleged infringements listed in the published Statement of Objections are examples of cover pricing, where busy companies who did not want to win the work submitted an artificially high bid.

While acknowledging that cover pricing may in some circumstances constitute a technical breach of competition law, the Confederation believes these historic infringements need to be viewed in context - there would usually have been no financial cost to the client or gain to the contractor and therefore did not have any effect on competition.

The Confederation says that if infringements are proven, then any fines levied by the OFT should be proportionate and those who are found to have contravened regulations in this way certainly should not face double jeopardy by being omitted from future public sector tendering lists.

 

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