|
Construction Bid Rigging
Allegations
LAPN
condemns the alleged price-rigging by builders revealed by the OFT report.
The
allegations concern Cover pricing which involves contractors
colluding together to ensure one contractor wins the contract. The others
submit tenders to keep in with the client but put in over-inflated prices
to ensure their bids are rejected.
The
winning contractor is then able to submit a higher than usual bid,
thereby artificially pushing up the price of the contract for the client.
The OFT report says that in some cases the winning contractor uses the
extra money to pay a sweetener to the other contractors.
The
report will naturally worry public sector clients, but LAPN believes it can
reassure members that they are much better protected from exposure to
price-rigging by contractors thanks to the collaborative framework
agreement it uses to procure contracts.
Responding
to calls for a full public enquiry (see press article)
Peter Woolliscroft, managing director of the London Area Procurement
Network said "I fully subscribe to any initiative that restores
confidence in the industry."
Full
details can be found under Latest News or click on the link below
Construction Bid Rigging
Allegations
Added 23 April
|