Bid rigging: UKCG condemns OFT fines and warns of job losses

The UK Contractors Group has condemned the heavy fines imposed today on contractors and warned they will cost jobs.

• View the full list of companies fined

Stephen Ratcliffe, director of UKCG said: “These fines could not have come at a worse time for the industry and are unfair."

"The industry is going through its sharpest downturn on record with huge falls in demand, employment and profits and on current trends is expected to contract 20% by the end of 2011.  These punitive fines will be hard to absorb and will cost jobs."

He said that the OFT knew cover pricing was a widespread practice in the past.  "It is perverse and unfair to impose such disproportionate penalties on a small number of  contractors selected by geographical sampling." 

Ratcliffe added: “It is important to remember that the infringements are historic and do not reflect practices in today’s market place."

The UKCG said that the fines should leave no doubt in the mind of any contractor that the practice of giving or taking cover prices was illegal and could result in severe financial penalties for the company, as well as criminal prosecution and/or director disqualification.

The industry has been working closely with the Office of Fair Trading (OFT) to ensure that contractors are aware of their obligations under competition law. 

In particular, UKCG supports the industry wide code of competition law compliance launched on 20 August and each of its members has procedures in place to ensure that breaches do not occur.