The Office of Fair Trading has alleged that 112 construction companies in the UK have colluded to rig tenders for contracts, inflating their prices to the detriment of local authorities and other customers.
So far, 40 firms – including Carrillion and Balfour Beatty - have admitted price-fixing, and 37 have asked for leniency.
Balfour Beatty said that it had conducted a review of its practices, and neither promoted nor condoned anti-competitive behaviour. “We just did it, that’s all,” said a spokesman. “It’s like an addiction – we knew it was wrong and we often beat ourselves up about it, but we just couldn’t stop ourselves. Please don’t condemn us - or indeed fine us up to 10% of our turnover - for ripping off ordinary council taxpayers to fund our addiction. Have mercy on our huge performance-related bonuses.”
Carillion said that the OFT investigation only applied to its JM subsidiary, formerly Mowlem - and that the OFT had granted it leniency, ordering it to write out “I must not form cosy rip-off cartels with my so-called competitors” a thousand times.
The construction industry hopes the allegations will not tarnish the popular image of the friendly, honest, value-for-money builder.
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