The Competition and Markets Authority (CMA) has released a detailed case study outlining the findings of a major enforcement action involving 10 construction firms. The investigation uncovered illegal bid‑rigging agreements relating to demolition and asbestos‑removal contracts, resulting in fines exceeding £60 million. This case study provides important learning for organisations involved in procurement, contract management and compliance.
Understanding the Case
The case study highlights several important lessons for public sector bodies:
- Illegal coordination between competitors including agreeing bid prices, service levels or timeframes is a serious breach of competition law.
- Compensation payments between firms to influence tender outcomes are unlawful and can result in significant penalties.
- Directors carry personal responsibility for ensuring compliance. In this case, four directors were disqualified for a combined total of nearly 25 years.
- The CMA uses sophisticated intelligence and evidence‑gathering techniques, meaning unlawful activity is likely to be detected even when attempts are made to conceal it.
These findings reinforce the importance of robust procurement oversight, clear internal guidance and strong leadership accountability.
Why This Matters to NAFN Members
This case demonstrates the real‑world risks associated with anti‑competitive behaviour and the impact such conduct can have on public funds, service quality and fair competition. For NAFN members, the case study offers valuable insight into:
- Identifying cover‑bidding behaviour
- Spotting concealed compensation payments
- Understanding the CMA’s evidence‑gathering capability