Bid-rigging: ODA plays down accusations of cover pricing

The Olympic Delivery Authority (ODA) has played down today’s announcement by the Office of Fair Trading (OFT) that Balfour Beatty, its contractor for the £242m Aquatics Centre, has been accused of being involved in bid-rigging and 'cover pricing' activities.

Despite the fact that Balfour is one of 112 firms alleged to be involved in cover-pricing activities, the ODA said today’s announcement had no bearing on the Aquatics Centre contract, or the rest of its supply chain.

“The ODA has an open, transparent procurement process governed by EU and UK law and based on government guidelines and industry best practice,” the ODA said. “We have also appointed a delivery partner with a wealth of industry expertise to help ensure value for money in our procurement process and all major contracts are scrutinised by the Office of Government Commerce.”

In a statement to the OFT’s announcement, Balfour said: “Balfour Beatty announced in June 2007 that it had undertaken a full review of the group's compliance with the Competition Act, the results of which it has made available to the OFT.

“Balfour Beatty is confident that all of its subsidiaries are now fully compliant with the Competition Act. Balfour Beatty neither promotes nor condones anti-competitive behaviour.

“The company and its operating businesses have co-operated fully with the OFT in all aspects of its investigation. As a result, and subject to ongoing co-operation, the OFT has granted leniency to Balfour Beatty, thus reducing any fines which might ultimately be levied on Balfour Beatty or any of its operating businesses. The company will respond to the OFT in respect of its statement of objections in due course."