Ten roofing contractors have been fined a total of £560,000
after being found guilty by the Office of Fair Trading (OFT) of
collusive tendering over flat roofing services in the North East
and Scotland.
The fines, reduced from £830,000 after a number of companies
pleaded for leniency, were ordered after the firms (see box) had
agreed to fix the prices, and in some cases to share markets, for
their work.
All parties were found to have been involved in a series of
individual agreements and concerted practices in tendering for the
contracts between 2000 and 2002 in breach of the Competition Act
1998.
In the North East, the contracts affected were for felt and
single-ply flat roofing services, and related to schools, a
college, a number of telephone exchanges and a business park
unit.
In Scotland, the contracts were for mastic asphalt flat roofing
services and related to diverse contracts, including a school,
tele-vision studios, a town hall, a supermarket and a
lighthouse.
The OFT concluded that the parties' collusion in setting tender
prices and allocating contracts between themselves was intended to
restrict or distort competition and meant that buyers were unable
to obtain competitive prices.
Last year nine roofing contractors in the West Midlands were fined
a total of £330,000 for price fixing.