黑洞社区

The demolition sector鈥檚 principal trade body could make members sign regular anti-collusion declarations in an effort to restore trust in the sector following a bid-rigging probe by the Competition and Markets Authority.

In June, the provisional findings of a CMA investigation begun in 2019 named 10 demolition firms, including Keltbray, McGee and Careys-owned Scudder, which it said had illegally colluded to rig bids worth more than 拢150m over a five and a half-year period.

Howard Button, chief executive of the National Federation of Demolition Contractors, told 黑洞社区 that it was 鈥渉ighly likely鈥� that the trade body would introduce an annual or biannual anti-collusion policy to which all members will be required to sign up.

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Members found not to be complying with the declaration would then face suspension from the NFDC, with suspended members and the reason for their suspension clearly identified on the organisation鈥檚 website for clients to see, Button said.

He stressed that the final decision on the policy will be taken by the NFDC鈥檚 national council and is expected to be made before the next meeting in two month鈥檚 time.

According to the CMA, the firms had agreed to submit bids that were deliberately priced to lose the tender, with several receiving substantial 鈥渃ompensation payments鈥� worth as much as 拢500,000. Some firms also produced false invoices in order to hide their illegal behaviour.

The NFDC has also asked members who have been caught up in the CMA probe to submit reports to the national council outlining what mitigating measures they are taking to prevent bid-rigging. The body鈥檚 executive board will then make a decision on what actions it will take towards the firms.

Button said: 鈥淲e have made contact with members that have been named by the CMA and we have taken them to national council and it is an executive board decision as to where we go. They haven鈥檛 made that decision yet, but we are actively looking into what has gone on, what we can do to mitigate this ever happening again in the future.鈥�

He added: 鈥淚t鈥檚 very unfortunate, it鈥檚 serious but we are doing the best we can to mitigate it for the future.

鈥淭he NFDC are not actively involved in any of the price work of the industry. We are here to check the safety standards of the sector, not the financial side.

鈥淲e鈥檙e not trying to wash our hands of it, but we wouldn鈥檛 have any control over it.鈥�

In a statement published on its website in June responding to the CMA鈥檚 findings, the NFDC said it has a 鈥渃lear code of conduct, which all members sign up to, that is designed to ensure the highest standards of industry practice鈥�.

Demolition firm John F Hunt, which was one of the firms named in the CMA probe, said last month that it had set aside 拢5.6m for 鈥渁 matter relating to isolated historic regulatory breaches鈥� 鈥� believed to be a reference to the bid-rigging probe.

In its latest report and accounts, Careys said it had set aside a 拢9m provision for 鈥渁 regulatory matter鈥� while last week Keltbray said it was making a 拢6m provision for the same reason.

The CMA has said eight of the 10 firms have admitted participation but two, Erith and Squibb, have denied wrongdoing and are contesting the provisional findings.

In all, the CMA said 19 jobs were hit by bid-rigging including the Old War Office in London, the redevelopment of Bow Street Magistrates Court, the Metropolitan Police training centre in north London, redevelopment work at Selfridges on Oxford Street, redevelopment work for Oxford University, shopping centres in Reading and Taplow, a new building for the LSE at Lincoln鈥檚 Inn Fields and the refurbishment of a City office building at 135 Bishopsgate.

The CMA is expected to reveal its definitive findings by the end of the year.