Construction firms targeted by OFT
2008-04-17
A statement of objections has been issued against 112 construction companies by the Office of Fair Trading (OFT).The construction companies were allegedly involved in illegal cover pricing, along with other banned rigging activities.
Cover pricing is a way of pushing up bidding prices by colluding with competitors in order to ensure that people pay overly inflated prices for a contract.
John Fingleton, OFT chief executive, commented: "This investigation, together with the OFT's previous decisions in the roofing sector, will hopefully send out a strong message to the construction industry about the seriousness with which we view suspected anti-competitive behaviour."
Mr Fingleton described the behaviour of these firms as being responsible for elevating prices and slammed the companies for not following the laws.
The OFT is offering a £100,000 reward in return for any information which allows it to catch illegal cartels.
