Bid-rigging: maximum penalties 'unlikely'

It is unlikely that the OFT will impose the maximum fine of 10% of contractors' relevant turnover, even if they were found guilty of bid-rigging, the anti-corruption body has admitted.

If all 112 firms alleged to be involved in the investigations were found to be guilty, and were fined the maximum allowable penalty, fines could run into billions of pounds.

But Brian Malone, the team leader on the OFT's investigation into construction, conceded that such high fines would be unlikely, at least for the majority.

He told CJ: "You may be aware that the OFT can fine up to 10% of an individual company’s turnover in the last business year. In previous cases of cover pricing in roofing, we imposed fines of 1% to 2% of total turnover."

But he warned that while the majority of fines may not hit the maximum allowable penalty, the OFT might feel moved to make an example of contractors.

"The OFT has detailed penalty calculation guidelines which we have available on our website and some companies may find that it comes up to 10% of their turnover. Others they may find that it’s less. But there is also the fact that in the roofing cases we imposed fines of 1% or 2% and yet we are still seeing bid-rigging in construction, so it may mean that we have to send a clearer message for the future."