Cartel leads 'significant', says OFT

More than 10 contractors have already approached the Office of Fair Trading (OFT) and given "significant leads" on bid rigging in the industry.
The unnamed contractors have taken advantage of the OFT's leniency programme. A further 20 firms will now face action as a result of the information received.
Under the leniency programme, companies that approach the OFT early on can be given full immunity from: fines of up to 10% of the fraudulent business; up to five years in jail; and the disqualification of directors.
"Immunity is the top prize for coming forward," Simon Williams, the OFT's director of cartel investigations, said. "Companies think they are not likely to get caught. I would warn them that their competitors might well use the leniency law to drop them in it."
As a result of one contractor coming forward, the OFT's enforcement arm took action last spring against 10 roofing contractors in the West Midlands. They were later successfully prosecuted for bid rigging (see below).
"The flat-roofing sector has proved to be a real problem," Williams said. "But other trouble sectors are now coming to light."
The consequences of just one contractor coming forward were highlighted recently in the Netherlands, where 344 construction companies involved in cartel activity are now facing fines totalling £100m.
"Although I am not making comparisons between here and there, it does show the snowball effect from just one company coming forward," Williams said.
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