No OFT cover price appeal as construction cleans-up act

Grant Prior 14 years ago
Share

The Office of Fair Trading has decided not to appeal against massive reductions in cover pricing fines for contractors because the competition watchdog believes construction has cleaned-up its act.

The Competition Appeal Tribunal cut fines totaling £129m levied against 103 contractors in 2009 following the OFT’s long-running probe into cover pricing.

The tribunal decisions saw every contractor that appealed have their fines reduced by up to 94% or written-off completely.

The OFT was mulling an appeal against the cuts but has decided to let the tribunal’s decision go unopposed.

The decision follows a similar one last week which saw the OFT rule out an appeal against cuts for price-fixing penalties against construction recruitment companies from £39.27m to £14m.

OFT chiefs believe the high profile investigations have served their purpose by changing the way contractors operate.

A statement said: “The OFT’s decisions not to appeal have been influenced by the fact that substantial deterrence and change has already been achieved by the two cases.

“An independent evaluation has shown that the OFT’s enforcement action resulted in behavioural change and increasing awareness of competition law in the construction sector, and industry bodies have since launched initiatives to encourage compliance with the law.”

The OFT has been criticised for its heavy-handed assualt on construction and the watchdog is reviewing its tactics.

The statement said: “The OFT recognises that the judgments raise some issues for it to consider about how it carries out its enforcement work, and in particular how it sets penalties.

“It will review its penalty policy, including considering whether changes should be made to its penalties guidance to reinforce its ability to set substantial fines that ensure deterrence, in the light of these judgments and other factors.

“It will also review its internal penalty setting processes and some of its investigative procedures.”

Latest news

Kier wins first phase of £700m Warwick Uni campus build

Firm to start work on science and engineering precinct last this year
12 hours ago

Torsion and Khalbros to build new Leeds £1bn neighbourhood

Eastgate Quarter site acquired from Hammerson
12 hours ago

JCB to double size of US factory in wake of Trump tariffs

$500m Texas factory under construction to expand to 1m sq ft
13 hours ago

Green light for £2.4bn Luton Airport expansion

Government go-ahead to transform airport
13 hours ago

Diversification pays off for concrete frame specialist Statom

Strong results as £180m turnover firm expands into infrastructure sector
15 hours ago

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
20 hours ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
20 hours ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
21 hours ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
21 hours ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
20 hours ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
2 days ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
2 days ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
2 days ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
2 days ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
2 days ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
2 days ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
2 days ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
3 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
2 days ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
3 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
3 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
3 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
3 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
4 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
3 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
3 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
4 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
4 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
4 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
4 days ago

Contractor services