Bid-rigging: clients knocking back firms whom accused

Commercial clients are taking a tough line with the 112 companies caught up in the Office of Fair Trading bid-rigging investigation.

Contractors have told CJ that firms on the list are being knocked-back for jobs by wary clients.

One company director said: "It's the first thing people have been asking when we start the tender process - 'are you on the list?'.

"There's no doubt that our rivals are being handicapped if they are among the 112 being investigated."

Another senior source said: "We're not on the list and have been using it to our advantage.

"If a client doesn't mention it, then we bring it up straight away. It's a competitive business at the moment so you use anything that gives you an edge.

"If we're pitching against a rival that is on the list then of course we're going to mention it. We'll raise doubt with the client as to whether they are going to get a fair price going with a firm that has been accused of collusion."

Contractors named by the OFT already face losing work from public sector clients keen to distance themselves from any allegations of bid-rigging or cover pricing.

Contractors have been assured that the departure of OFT executive director Sean Williams will have no impact on the investigation. He will be replaced by chief executive John Fingleton.