Contractors face blacklist fines and bidding bans

Grant Prior 6 years ago
Share

MPs investigating construction’s blacklist scandal will consider the question of compensation to victims in the latest stage of their long-running probe.

They will also look at whether contractors should face retrospective fines or be banned from bidding for public sector contracts.

More firms will be called before the Scottish Affairs Committee before it makes recommendations to the Government.

Industry giants who have already appeared before the committee were also accused of “continuing to avoid taking full responsibility for their actions” in an interim report.

Ian Davidson MP, Chair of the Committee, said: “We are appalled by what we have discovered during our committee hearings.

“We were neither convinced nor impressed by the attitude of the people involved in funding, operating and using this blacklist.

“The companies involved set up the blacklist for their own financial benefit, to avoid the risk of legitimate industrial relations or health and safety disputes on site resulting in delays to contracts, penalty clauses being invoked and financial loss.

“While some of the companies have expressed regret and taken steps to establish how this could have been allowed to go on, we are unclear whether they genuinely regret the practice, or more the fact that they got caught.

“This is an interim report; our inquiry so far has posed a series of key questions rather than answering them, particularly in regard to whether compensation should be offered to the people who suffered invasion of their privacy and loss of earnings as a result of this blacklist.

“We are now inviting further submissions on the four key question areas raised in this report, and we will be taking evidence from more of the firms involved.”

The committee will now concentrate on four areas:

• Is blacklisting still taking place, both within the construction industry and more widely, and especially in Scotland?

• Should compensation be paid, and to whom? Anyone whose name appeared on a blacklist? Those who can prove they were adversely affected by blacklisting? Who should provide the compensation?

• What penalties are appropriate for those firms and individuals who engaged in blacklisting and who benefited financially from the process, and is it appropriate to introduce a degree of retrospection? In addition, should firms which have been involved in blacklisting be prevented from tendering for public sector contracts in future? Or should they only be allowed to tender if they pay compensation to those who have been blacklisted?

• Is the existing legislation against blacklisting sufficient, if properly enforced, or do we need changes to the law to eradicate the practice?

 

Latest news

More contractors suspended from Prompt Payment Code

Galliford Try, Ferrovial and Alun Griffiths among firms not paying on time
35 mins ago

Lendlease names new London construction chief

Claire Pettett has over 11 years experience at Lendlease mostly on the finance side
1 hour ago

Construction restructure costs Galliford Try £10m

Average group net debt rises to £187m after year of writedowns
5 hours ago

Six climate activists arrested at concrete plant

Police chief warns construction companies they will be targeted during week of action
6 hours ago

Civils and concrete specialist OHOB delivers £27m profit

O’Halloran & O’Brien builds revenue to £300m after expanding from south east base into the Midlands
6 hours ago

Worker killed on Asda extension site

Victim "hit by digger bucket" in site tragedy
15 hours ago

Leeds Merrion Centre 17 storey office block approved

New office block in shopping centre will cost over £50m to build
6 hours ago

£17m Blackpool hotel project out to bid

Muse invited bids for Talbot Gateway scheme Holiday Inn
7 hours ago

Countryside wins £400m London Camden Lock estate rebuilds

Work could start on 700-home estate rebuild late next year
1 day ago

Contractor fined for ignoring site welfare order

Manchester firm failed to provide decent facilities for workers
7 hours ago

Murphy suffers £5.8m loss

Revenue up 4.4% to £781m driven by transport and power projects
1 day ago

London Mayor uproots Tulip Tower plan

Sadiq Khan blocks 305m skyscraper plan despite city planners' approval
2 days ago

Third Van Elle board director exits

John Foster, group commercial director, departs six months after joining piling specialist
1 day ago

Hunt starts for partner to deliver £1.5bn Wales schools plan

Welsh Government is looking for partner for new public private schools delivery model
1 day ago

HS2 unveils plans for “people mover” on new viaduct

2.3km route will transport people to Birmingham Airport
1 day ago

Manager merry-go-round causing mayhem for contractors

Construction bosses walk-in to new jobs no matter how poor their track record is
1 day ago

Contractor hunt starts for new £1.7bn Stonehenge route

Highways England hopes to attract bids from "some of the world’s best construction companies"
2 days ago

29 arrests in immigration raid on BAM King’s Cross site

Illegal Albanian, Indian and Lithuanian workers detained during swoop on flagship London job
2 days ago

Call to delay VAT changes as chaos looms for contractors

Industry leaders demand six month delay to October deadline as contractors unaware of tax changes
3 days ago

Hull contractor C Spencer back in profit

Specialist records £1.8m profit after revenue cut to £54m in year of consolidation
2 days ago

ISG wins £23m Cardiff Uni science building

Six-storey maths and computer block will be built on the Cathays campus
2 days ago

Local civils firm lands £17m London Airport job

East London civils contractor Kilnbridge wins biggest contract this year
5 days ago

Tolent starts £34m Leeds rental flats job

12-storey block is being built for Grainger as part of the Holbeck Urban Village
2 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Foundations specialist Aspin goes into administration

All staff sent home as ground engineering firm goes under
6 days ago

HPL cladding to be stripped from Oxford tower block

Housing associations and councils are now planning to remove HPL cladding following new Government guidance
5 days ago

HS2 forced to rebid £435m Curzon Street station

Poor interest from contractors forces risk transfer rethink
6 days ago

Mott MacDonald names new UK and Europe chief

Cathy Travers will be in charge of 7,500 staff generating £824m revenue
5 days ago

Galliford Try Infrastructure chief exits

Nick Salt leaves as construction chief Bill Hocking takes over infrastructure
5 days ago

Interserve appoints Alan Lovell as new chairman

Industry veteran pledges to help "continue delivering Interserve’s transformation"
5 days ago

Contractor services