Another demolition director banned after bid rigging probe

Grant Prior 2 years ago
Share

The Competition and Markets Authority (CMA) has secured the disqualification of another company director following its investigation into illegal cartel behaviour within the demolition industry.

Nicholas Brown, now Managing Director of the Brown and Mason Group, was a director of Brown and Mason Limited at the time the illegal cartel activity took place.

Following a number of admissions, Brown has been disqualified for a period of seven years.

He admitted being personally involved in two breaches of competition law affecting contracts for demolition services with a total value of over £30m including one relating to the Shell Building on London’s Southbank, and the other relating to the Lots Road Power Station in London.

‘Compensation payments’ with an aggregate value of £700,000 (excluding VAT) were paid to Brown and Mason by two competitors in return for Brown and Mason’s participation in the anti-competitive agreements.

Brown has admitted taking a ‘central role’ in this conduct, including by instructing staff to collect the payments by issuing invoices relating to ‘fictional services and goods’ that were not in fact ever supplied by Brown and Mason.

He further acknowledged that, as a shareholder in Brown and Mason, he stood to benefit personally from these payments, and that he understood at the time that his conduct was wrong.

In March 2023, 10 construction firms were fined nearly £60m after the CMA found following a full investigation they had broken competition law by engaging in a form of collusive tendering known as ‘cover bidding’.

Typically, cover bidding involves companies, when bidding in a competitive tender for a contract, agreeing with each other that one or more of them will place a bid that is deliberately intended to lose the contract, thereby reducing the intensity of competition.

The 10 companies involved were: Brown and Mason, Cantillon, Clifford Devlin, DSM, Erith, JF Hunt, Keltbray, McGee, Scudder and Squibb.

In addition, the CMA found that five of the firms, on at least one occasion each, were involved in arrangements by which the ‘losers’ of the contracts were set to be compensated by the winner. Some firms produced false invoices to hide this part of the illegal behaviour.

In February this year, the CMA secured legally binding disqualification undertakings from Michael Cantillon (former director of Cantillon), David Darsey (former director of Erith) and Paul Cluskey (director of Cantillon).

Brown did not offer an undertaking until after the CMA put him on formal notice of its intention to apply to the court for a disqualification order against him. Had he given an undertaking before the CMA issued the formal notice, his period of disqualification would not have been as long.

Giving an undertaking means Brown agrees to be disqualified from being a director of a company, or otherwise being involved in the management of any UK company, for seven years unless he has the permission of the court.

Michael Grenfell, the CMA’s Executive Director of Enforcement, said: “Company directors need to take personal responsibility for ensuring that their companies comply with competition law. People and businesses need to be protected from illegal anti-competitive practices. Company directors who fall short can expect to face the prospect of disqualification.”

Latest news

Willmott Dixon wins Great Yarmouth waterfront deal

North Quay 10.5 acres mixed-use scheme to advance
16 hours ago

Care home fire trial collapses

Prosecution withdrawn against four firms including Morgan Sindall Property Services
17 hours ago

Eight take key spots on £250m Prosper framework

Housing and public building upkeep deal for North East awarded
17 hours ago

McLaren storms April contracts league with flurry of wins

Cardiff Bay Arena job headlines a series of big contract wins
20 hours ago

Balfour Beatty lifts cash forecast after strong first quarter

Contractor set to hit £1bn average monthly net cash in 2025
21 hours ago

Goldman Sachs-owned Adler & Allan buys 180-strong civils outfit

West Country's Glanville Environmental gets new owner
20 hours ago

Caddick lands first contract for £200m Skelmersdale revamp

Developer gets green light for masterplan
21 hours ago

Van Elle sells HGV fleet to haulage firm

WS Specialist Logistics pays £2.9m to take on fleet and drivers
21 hours ago

Buyers more bullish about prospects for year ahead

Residential "resilient" but commercial work a weak spot
2 days ago

Council backs first Brutalist car park-to-flats scheme

Newcastle-under-Lyme multi-storey car park to be reborn as pioneering homes scheme
2 days ago

Hinkley Point C hits peak build with 26,000 jobs

3,000 more workers to join as fit-out work ramps up
2 days ago

Over 40 firms win Wessex Water M&E minor works deal

Broad sweep of specialists picked for AMP8 programme
2 days ago

Spencer lands Scottish bridge hat-trick

Steelwork, gantries and bearing upgrades on Kessock, Forth and Tay crossings
2 days ago

Winners revealed for £1.5bn decarbonisation deal

Fusion21 confirms places for 40 firms: Full list
2 days ago

Cladding firm fined £225,000 after fatal fall

Court hears how cherry picker didn't reach all parts of repair job
2 days ago

Early call-out for Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
2 days ago

Completed buildings caught-up in Gateway 2 chaos

Developer distraught after dealing with Building Safety Regulator
3 days ago

Aviva submits plans for 34-storey City office tower

Subject to planning work to start in autumn 2027
3 days ago

Murphy takes 40% stake in Aussie civils contractor

Firm enters Australasian market with stake in Sydney-based contractor Abergeldie
3 days ago

Moat seeks firm for £420m repairs and maintenance deal

15-year deal to upkeep 20,000 south east homes
3 days ago

Lynch takes over hotel for Sizewell plant operators

Hire giant now in the hotel business to guarantee accommodation for workers
3 days ago

Subcontractors wanted across Scotland

Latest Constructionline event in Glasgow: Register now
3 days ago

Six guilty of £2m bribery over Devon housing site deals

Corrupt building bosses and E.ON project chief and QS sentenced
1 week ago

1,650 former ISG staff launch legal claims

Redundancy Payment Service facing payout of more than £9m
1 week ago

Plans lodged for £1bn cancer research centre in Sutton

London Cancer Hub will deliver around 1m sq ft of lab and research space
7 days ago

London Met Uni seeks firm for £284m estate revamp

Contractor wanted to deliver capital works and FM
7 days ago

Delayed £2bn estate rebuild back on as Berkeley signs deal

Birmingham council development agreement paves way for 2028 Ladywood start
1 week ago

Tilbury Douglas boosts margin to 2.1% as profits double

Firm targets 3.5% margin by 2029 under new business plan
1 week ago

Subbies battle for fastest bricklayer title

Winchmore management team go back on the tools
1 week ago

Green light for revised McLaren Reading revamp

Mixed-use plans to transform Broad Street Mall site
7 days ago

Contractor services