construction companies found running Cartel

[NaRvIcK DeViL]

112 construction companies including UK’s biggest firms Balfour Beatty, Carillion & Kier have been found to be involved in “Bid Rigging”.

This investigation carried out by the Office of Fair Trading (OFT), so far have found 240 breaches of competition law.

This investigation was started by an eagle-eyed auditor in Nottingham who raised the alarm on a trail which has lead to the biggest investigation ever undertaken by the OFT.

It has now ballooned into which the entire construction industry of the UK is now in the spotlight for uncompetitive practices.

The OFT probed suspect tendering on construction projects in the public and private sectors, this includes government contracts schools, hospitals etc under the ‘PFI’ Private Finance Initiative before focusing on 240 specific instances.

These instances relate to where supposedly “competing” firms all put in an artificial high price except for one company who would put in a price just undercutting the competition.

This is illegal and inflates prices giving clients the illusion of competition in the market place. This behaviour use to be known as the British mark up and was suppose to have been abolished in 1963.

The construction confederation who represents the industry accepts cover pricing is a breach of competition law if firms discuss in advance of tendering their intentions with each other.

Cover pricing is seen by them as acceptable behaviour, than the risk of upsetting a regular source of income by refusing to tender.

So far 40 firms have come clean and 37 have asked for leniency.

[kerrera]

Collusion isn't a new word.

[NaRvIcK DeViL]

The weird thing is, on the day i posted , a programme about how well us Brits are sha#ted (sorry ! rip-off doesn't seem to cover it) 'The Tonight programme' was on covering all the other areas we're taken for .

http://www.itv.com/News/tonight/epis...n/default.html

[Scottish_Republican]

"Us Brits?" - no thanks...

[doomandhume]

we scots may spit rhetoric about thatchers legacy but we still walk in her footsteps and pay homage to her ideals of runaway minimally regulated free enterprise constructing our future.

[Scottish_Republican]

No, I'm afraid we don't. Scots in the main do not like Thatcherism and never have.