Chartered Institute of Building: Not the construction industry’s finest hour

Over 100 construction companies in England have been issued a Statement of Objections (SO) by the Office of Fair Trading (OFT) following one of the largest Competition Act investigations.

The OFT has alleged that the construction companies named in the SO have engaged with bid rigging activities involving cover pricing.

Cover pricing arrangements have previously been found by the OFT and the Competition Appeal Tribunal to be illegal and in breach of the Competition Act 1998 due to the restrictions on competition that arise.

Chris Blythe chief executive of The Chartered Institute of Building (CIOB) said, “This is obviously not the industry’s finest hour, and as a result this should be the end of cover pricing.

“This investigation is very damaging for the industry; it affects confidence and has the potential of diverting people from the real work being done to improve standards, safety, and ethical practice.”

“Clients of the industry are not the only ones to have suffered from bid-rigging, everyone suffers. Other construction companies who have been excluded by anti-competitive activity have been affected as well.”

The CIOB is a member of the Anti-Corruption Forum, led by Transparency International. The Forum is an alliance of UK professional institutions, business associations and companies with interests in the domestic and international infrastructure, construction and engineering sectors. Its purpose is to promote industry-led actions to help eliminate corruption.

To view an online broadcast on the OFT investigation into the construction industry please go to www.ciob.org.uk/resources/onlinebroadcasts.

To see the CIOB’s research into corruption within the UK’s construction industry please click on the following link www.ciob.org.uk/resources/research.

ENDS

NOTES TO EDITORS

The Chartered Institute of Building (CIOB) represents on behalf of the public the most diverse set of professionals in the construction industry.

The CIOB’s role is to:

· Promote the importance of the built environment.

· Lead the industry to create a sustainable future worldwide.

· Encourage leadership potential.

· Set the highest standards in quality, safety and qualification.

· Create an industry where excellence prospers.

Further information is available by contacting Saul Townsend CIOB press and communications manager on 01344 630 766 – stownsend@ciob.org.uk.

Saul Townsend MCIPR MIPRA
Press & Communications Manager
The Chartered Institute of Building (CIOB)

t: + 44 (0) 1344 630766 f: + 44 (0) 1344 630770

e: stownsend@ciob.org.uk w: www.ciob.org

www.iconreview.org www.constructionbooksdirect.com