Overview

In September 2009, the OFT announced that it had imposed significant fines in relation to two different cartel rings in the construction industry.

First, 103 construction firms were fined a total of £129.5 million for illegal bid-rigging. Secondly, six construction recruitment agencies were fined a total of £39.27 million for collective boycotting and price fixing. This has left authorities wondering whether the procedures in place are sufficient to detect and prevent anti-competitive behaviour.

Furthermore, the widespread involvement in these cartels has resulted in authorities questioning whether they can disqualify parties who have previously been involved in cartels from the procurement process. This decision is made arguably more complex by the guidance issued by the Office of Government Commerce (OGC) and OFT.

This paper by Osborne Clarke looks more closely at the recent developments and goes on to outline the implications for buyers and contracting authorities and some practical steps for authorities.

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