Office of Fair Trading sharpens its knives for cover bidding offenders

Cover bidding by major contractors is the Office of Fair Trading’s (OFT) latest target.

In the last two years, the OFT has concentrated on localised cartel activity, mostly associated with smaller firms. However, it has now turned its attention to cover bidding, insiders told CJ.

A legal source said: “The OFT is becoming more and more aggressive in its pursuit. The feeling is that it has made its point clear in its action against cartels in the roofing sector.

“Now the OFT wants to show its real teeth and turn to the area of cover bidding, which is why I think major contractors are being targeted. It is shocking to me that so many contractors I talk to don’t see cover bidding as an issue. They are going to get stung.”

In the last fortnight, the OFT has raided offices of Mowlem and Morgan Sindall subsidiary Bluestone, although there is no suggestion that these firms cover bid.

CJ understands that offices of Balfour Beatty have also been raided. A spokeswoman said: “We can’t comment on the activities of the OFT.”