Bid-rigging: Nigel Griffiths demands procurement inquiry

Former construction minister Nigel Griffiths is calling for an inquiry into public sector tendering practices in the wake of the Office of Fair Trading’s damning report on industry bid rigging.

Giving a robust defence of the construction industry, Labour MP Griffiths criticised the report’s impact on the industry’s reputation.

He told CJ: "The British Construction Industry has built up a world wide reputation for probity and efficiency. The OFT report is damaging and not typical of the industry."

He called for an inquiry into the procurement of public sector construction projects to restore public confidence in the industry. The inquiry panel should consist of leading construction, local authority and local Government procurement experts, as well as union officials, said Griffiths.

"I believe key people from within and outside of the industry should be brought together to draw up proposals to both improve the tender process, which I know as a minister is over complicated, and at the same time ensure any abuse is easily detected and quickly stamped out."

Public sector clients welcomed the idea. Professor Peter Woolliscroft, managing director of the London Area Procurement Network, which procures contractors for ten London ALMOs, commented: "I fully subscribe to any initiative that restores confidence in the industry."

However the Construction Confederation said the size of the problem did not warrant an inquiry. Chief executive Stephen Ratcliffe said: "This is not a massive problem. However both procurement practices and communication between contractors and public sector clients could be improved and to this end we have written to every local authority to explain why this happened and how it can be avoided."