The Competition and Markets Authority has fined 10 builders a total of £60m for “conspiring to rig bids” on major projects such as Bow Street magistrates court and Selfridges department store. This violation of competition law is unacceptable and the firms involved will suffer the consequences.
The Competition and Markets Authority (CMA) found that the companies had acted as a cartel over 19 private and public sector contracts that were worth a total of £150m.
Regulatory authorities have determined that contract bidding was manipulated between 2013 and 2018 by means of a tactic referred to as “cover bidding”.
Read more: UK’s Watchdog Fines 10 Building Firms For Bid-Rigging
Cover bidding involves companies conspiring to assist each other in winning contracts by submitting a substandard or overpriced tender that gives the false impression of competition while ensuring that the rival bid will win.
Ten companies in the demolition and the asbestos services trade were involved in the cartel, said the CMA, naming Keltbray, Brown and Mason, Cantillon, Clifford Devlin, DSM Demolition, Erith Contractors, John F Hunt, McGee, TE Scudder and Squibb.
