Construction Industry Fights OFT Findings

The Construction Confederation has made a Public Statement following the revelations by the Office of Fair Trading.

In a press release, they have gone on recording stating that some of the inflated prices submitted by contractors may be due to what is know as 'cover pricing' where companies that do not want the work submit an artificially high price so they will not win the work.

Whilst the Construction Confederation appears to consider this as reasonable behaviour, they do accept that if one contractor contacts another during this price then it is an offence.

What they seem to have totally overlooked is that most companies are sent a tender enquiry before the release of tenders to gauge the interest of contractors. This alone should prevent any need to submit a cover price.

The Press Release goes on to try to limit the damages on contractors who are found guilty by ensuring that they do not suffer fines as well as taken off tendering lists. It would seem this is a matter of trust between two parties, whilst the OFT may seek this sanction, employers may not be as welcoming to invite a guilty contractor back onto their tender lists

The Press Release is an honest attempt by a supporting body to protect its members, it does not seem to take sufficient attempts to condone the activities of its members. This is a chance for the industry to clean itself up and become more transparent, not try to gloss over the problems.