Contractors face blacklist fines and bidding bans

Grant Prior 5 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

Willmott homes arm fined £1.25m over gas blunder

Court hears how residents were put at risk of carbon monoxide poisoning
6 hours ago

Eggborough gas-fired power station gains consent

Work could start by summer next year at North Yorkshire site
5 hours ago

£100m Aberdeen Broadford Works village plan approved

Demolition work to start at historic former textile factory site
5 hours ago

Go-ahead for £160m Leeds Monk Bridge scheme

McAlpine is on board as preferred contractor for the project
15 hours ago

Opinion: Safety fines are getting out of control

We need more effective ways to improve safety than ever higher penalties
15 hours ago

Shake-up for £2.9bn MoD hard FM contracts

Post-Carillion bid race for MoD estate and housing regional FM contracts
1 day ago

Wates set to start on £53m Portsmouth sports centre

Contractor understood to have won contract race for new university complex
2 days ago

Lack of skilled roofers prompts Marley new launch

Easy to install roofing roll compensates for lack of skilled workers
14 hours ago

Caddick takes workforce plastic-free

Workers given aluminium drinks bottles in bid to bin single-use plastics
23 hours ago

Wates wins 7th Leeds Wellington Place job

Work will start of £35m 4 Wellington Place project next month
1 day ago

Kier targets £50m disposals to cut £375m debt

Firm sets out debt reduction plan in robust year-end results
2 days ago

Betting Spy: Spurs to shrug off recent troubles

Tottenham can kick-start a win treble with Leicester and Crystal Palace
23 hours ago

Keltbray concrete structures boss exits

Keltbray Structures MD Gordon Dunne on gardening leave
2 days ago

141 jobs axed as M&E specialist George Birchall fails

Larger FM business George Birchall Service avoids administration
2 days ago

Morgan Sindall bags £384m London scheme first phase

Hackney scheme includes an academy, leisure centre and six blocks of flats
2 days ago

Mace confirms £180m Olympic Park East Village deal

Firm will fine-tune its 'rising factory' method on the No6 East Village project
2 days ago

Contractor trials mixed reality headsets on school site

BIM and Microsoft HoloLens used to check M&E work
3 days ago

PM pledges extra £2bn for housing associations over 10 years

Longterm funding will be made available from 2022-2029
2 days ago

Jacobs to lead Edinburgh city centre transformation plan

Team will set out plan for historic overhaul of streets and public space
2 days ago

Costain and Galliford Try fined £2.8m after worker loses toes

Massive fine after accident at Cheshire water treatment works
3 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
5 months ago

Van Elle shareholders stage AGM revolt

Shareholders block board's ability to issue new shares for acquisitions
3 days ago

£100m Bristol sports arena plan at Ashton Gate stadium

Sports and convention centre will be attached to Lansdown Stand
3 days ago

Balfour Beatty raises £43m from hospital stake sale

Balfour sells 50% stake in Fife Hospital PPP
3 days ago

Kier offloads pensions unit for £3.5m

Third party pension management business administers half of all police pension
3 days ago

Willmott Dixon clinches £38m Winchester sports centre

Work to start in Spring 2019 on major leisure and sports complex
3 days ago

Architect TP Bennett reaches record turnover

Manchester office grows on back of city building boom
3 days ago

Brexit migration plan would “cripple construction”

Industry pleas ignored over need for steady flow of low-skilled site workers
3 days ago

Wates wins £16m Stockport college revamp

Work is due to start in the early new year on Wellington Road Campus
3 days ago

Balfour Beatty pioneers plastic pylons in Scotland

140 composite poles installed by new helicopter crane in just five days
3 days ago

Contractor services