黑洞社区

Builders accused of price fixing

The Financial Times focuses on the impact potential punishments will have on the businesses involved, saying lawyers predict fines resulting from the OFT inquiry 鈥渨ill be in the tens of millions.鈥� The paper also quotes Sir Simon Milton, chairman of the Local Government Association, saying 鈥渢here are no excuses for collusion, bid rigging or cover pricing, which leaves the public and councils to pick up the tab.鈥�

Fines could be the least of the worries for wrongdoers

The FT also says that although the level of the penalties 鈥渨ill depend partly on the attitude taken by the OFT鈥�, many companies are risking exposure to other lines of legal or commercial attack, with the biggest potential worry for companies that they will be excluded from contract tender lists by authorities sensitive to the accusation that they have wasted taxpayers鈥� money.

Town halls accused of colluding in bid-rigging by building firms

The Times shifts the blame for the investigation partly away from contractors, reporting that local authorities have been colluding with builders in the bid rigging of construction projects to make it appear as if proper competition has taken place. The paper quotes Mark Denman, of T Denman & Sons 鈥� one of the contractors named in the inquiry - saying: 鈥淐lients, including those in the public sector, have been known to specifically request a cover price where their initial inquiries had produced sufficient response, in their own attempt to show competition.鈥� The paper also quotes Stephen Ratcliffe.

Builders 鈥榗onspired to rig their prices鈥�

The Daily Mail said yesterday was a 鈥渄amning day鈥� for the industry. It reported that builders could be fined up to 10 per cent of their 鈥渁nnual sales鈥� 鈥� the OFT will actually fine up to 10% of turnover. The Association for Public Service Excellence, the Local Government Association and the Liberal Democrats lined up to express their shock at the accusations and the cost to the public purse. Balfour Beatty and Carillion were quoted.

Can we price-fix it? Yes we can

With characteristic restraint, The Sun reported that UK construction firms have been accused of 鈥渞ipping off taxpayers鈥� in a 鈥減rice-fixing scandal鈥�. It reported suggestions of possible criminal charges, though the OFT has said publicly that it will be pursuing its inquiry as a civil investigation. Alan Ritchie and Stephen Ratcliffe were quoted.

Construction firms rigged bids, watchdog claims

The Guardian reports the story fairly straight, quoting sources suggesting the final tally of fines would run into 鈥渢ens of millions of pounds鈥�. Stephen Ratcliffe, Balfour Beatty, Kier and Carillion are all quoted alongside the LGA chairman Sir Simon Milton.

The builder鈥檚 bill

The Guardian鈥檚 leader says the OFT report makes 鈥渟hocking reading鈥�, going on to make a fairly devastating attack on Balfour Beatty. It reads: 鈥淔irms such as Balfour Beatty have grown fat on the sums poured by the state into public infrastructure. Its name pops up everywhere.鈥� The government has had a 鈥渕isplaced faith鈥� in the efficiency of private contractors, it says. 鈥淐ash has been wasted鈥�.

黑洞社区 firms could be fined billions over bid rigging

The Independent put a rough figure on the total fines that could be levied by the OFT 鈥� the 鈥渂illions鈥� in the headline 鈥� and also on the losses to the taxpayer, which it estimates at 拢300m. The Construction Confederation and DBERR are quoted, alongside the ubiquitous Sir Simon Milton.

Builders in 拢300m price-fix probe

The taxpayer is the victim in all this, said the Daily Telegraph. 鈥淭he alleged scam could have cost councils, NHS trusts and education authorities more than 拢300m,鈥� it reported. Its coverage handily includes a cut-out-and-keep guide to cover pricing. Matthew Elliot of the Taxpayers Alliance said the idea that 鈥渙rdinary people鈥� have been defrauded is 鈥渟ickening鈥�. Simon Milton, Alan Ritchie, Balfour Beatty, and Galliford Try are all quoted.

Cartels for dummies: A simple lesson from the OFT

Andrew Hill, writing in the FT鈥檚 Lombard column, claims that 鈥減ublicising the OFT鈥檚 findings is the best way to teach the wrongdoers a simple lesson.鈥� Hill defends the OFT for carrying out a lengthy investigation, saying 鈥渃ritics should ask themselves whether they would rather answer allegations that are the fruit of a thorough probe or a cursory one.鈥�