The OFT said it is looking to fast track its current bid rigging cartel investigation in the construction industry, by making an offer of reduced financial penalty to all those implicated companies that have not so far applied for leniency but are willing to cooperate with the OFT in certain specific ways.

Over the last two years the OFT has carried out an investigation into bid rigging by construction companies in England. During this investigation 57 companies have been raided, and 37 companies have applied for leniency.

As a result of the investigation, the OFT has uncovered evidence of bid rigging in thousands of tenders with a combined estimated value approaching £3bn.

The OFT said in view of the extent and the quality of the evidence obtained so far, it will consider no further applications for leniency in this investigation.

Construction companies could face significant financial penalties for cartel behaviour, without the prospect of any reduction for leniency.

Any business found to be part of a cartel could be fined up to 10% of its worldwide turnover.
Under the OFT's leniency programme, members of cartels may have their financial penalty reduced substantially or they may be able to avoid a penalty altogether.

The OFT has today written to businesses that are a suspect party in the cartel investigation but have not so far applied for leniency. It told these companies that it will be making them an offer of a reduced financial penalty in exchange for admissions to participation in bid rigging along with certain ancillary promises.

The OFT said: “The reductions in penalty available to these companies will not be as large as those available to the companies that have applied for leniency, but will still be significant.”