The OFT has issued its expected Statement of Objections after a three year investigation into bid rigging activities, and in particular cover pricing.

Cover pricing is where companies obtain a price from a competitor in the tender process, to go in purposely high as to not win the tender but stay on the client’s list.

The OFT says it has also found evidence of compensation payments where companies have entered into one or more arrangements whereby it has been agreed that the successful winner of the tenderer would pay an agreed sum of money to the successful tenderer.

The OFT has focused its investigation on approximately 240 alleged infringements.

The implicated firms now have the opportunity to make written and oral representations which the OFT will listen to before deciding on whether competition law has been breached.

Any company found to be a member of a cartel could be fined up to 10% of its global turnover.

John Fingleton, chief executive said the investigation will hopefully send out a strong message to the construction industry about the seriousness with which it views suspected anti-competitive behavior.

He said: “Businesses have no excuses for not knowing and abiding by the law.”

B&E April: What are the implications of the OFT’s inquiry and does the industry have a defence?