UK competition watchdog the Competition and Markets Authority (CMA) has slapped fines worth a combined £60mln on 10 construction firms for engaging in "illegally colluding" to rig bids for contracts.
Brown and Mason, Cantillon, Clifford Devlin, DSM, Erith, JF Hunt, Keltbray, McGee, Scudder and Squibb were found guilty of entering into cartel agreements related to 19 contracts worth over £150mln for public and private sector projects.
Three company directors – David Darsey at Erith and Michael Cantillon and Paul Cluskey at Cantillon – copped a disqualification for between four and seven years for “unlawful conduct”.
Bid rigging took place between 2013 and 2018, and involved contracts for the development of Bow Street Magistrates' Court and Police station, as well as at Selfridges department store in London.
The CMA's investigation concluded that the firms colluded to rig bids for demolition and asbestos removal contracts.
To make the process appear competitive, one or more firms agreed to submit deliberately overpriced bids to lose the tender, the investigation found.
Michael Grenfell, the CMA’s executive director for enforcement, said the fines “should serve as a clear warning: the CMA will not tolerate unlawful conduct which weakens competition and keeps prices up at the expense of businesses and taxpayers”.
Darren James, chief executive at Keltbray, said: “We strongly condemn anti-competitive practices and treat all matters that reflect on our compliance with statutory obligations with the utmost gravity.
“Keltbray has cooperated fully with the CMA throughout this inquiry relating to activities between 2009 and 2017.”