OFT issues £129.5m of construction fines

The Office of Fair Trading has issued £129.5million fines to 103 construction firms found to be involved in anti-competitive practices including bid-rigging and cover pricing.

Kier received the largest fine at £17.9million, followed by Interserve at £11.6million. Galliford Trywere fined £8.3million; Ballast Nedam fined £8.3million and Bowmer & Kirkland fined £7.5million.

The OFT found that projects worth in excess of £200million were hit with cover pricing bids. These included schools, universities hospitals, and numerous private projects from the construction of apartment blocks to housing refurbishments.86 out of the 103 firms have received reductions in their penalties because they came clean about their involvement.

Simon Williams, the OFT's senior director for this case, said: "This decision sends a strong message that anti-competitive and illegal practices, including cover pricing, must cease...The OFT welcomes initiatives by the leadership of the construction industry to add weight to that message through a clear compliance code which we hope will help to embed more fully a culture of competition within the construction sector."

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