Crest Nicholson appeals over OFT bid-rigging investigation

Crest Nicholson has appealed to a judge over the firm's handling in the Office of Fair Trading (OFT) investigation into bid-rigging.

The house builder's former subsidiary Pearce was one of 112 firms named in the investigation. Pearce was sold in 2003 and Crest Nicholson was only included in the OFT dragnet at a later date.

An insider close to the investigation said: "Crest was only brought in as a full party at the last minute and was not given a chance to take part in the early resolution process."

The OFT's early resolution process allows contractors that admit culpability to escape with a lighter fine.

The OFT is investigating allegations of bid rigging between 2000 and 2002 by Pearce Construction (Midlands), which was sold along with the rest of Pearce to a management buyout in 2003.

Crest chief executive Stephen Stone said: "Pearce Construction (Midlands) Ltd is no longer owned by Crest Nicholson and Crest Nicholson has no knowledge of any such infringements."

Pearce Construction (Midlands) was closed by the time that the Pearce Group was sold to ISG for up to £21.8m in 2007.

An ISG spokesman said: "The people who owned Pearce Construction Midland at that time were Crest Holdings. We have an indemnity from the vendors [the MBO] over the OFT investigation."

A judge heard Crest's case last month, but a ruling is not expected before the summer break on 1 August. A decision is likely in September, when the size of fines on all 112 contractors in the investigation is expected.