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OFT FINES: UKCG writes to clients in bid to curb potential blacklisting

The UK Contractors Group has written to public sector clients, including all local authorities, to put forward the industry’s view on the investigation in a bid to ensure companies involved are not discriminated against on future projects.

The letter, sent by director Stephen Ratcliffe, states: “The OFT has made it clear that the penalties for the infringements are the fines it has imposed and that it is not their intention that companies should also lose access to public sector contracts. This would actually have the effect of reducing competition and so potentially have an adverse affect on both client and contractor.”

He adds: “It is understandable that public sector clients will want to be sure that such practices do not occur in the future. 

“As a consequence of the OFT investigation, which has been ongoing for the past five years, construction companies now have a clearer understanding of the fact that cover pricing is deemed to infringe competition law and have put in place strict competition law compliance policies and procedures to ensure that they do not become involved in this practice or any other similar practices in the future.”