Bid rigging update

The Office of Fair Trading (OFT) faces a government investigation over fears that its campaigns, including the latest one into bid rigging in construction, are over hyped and unfairly draconian.

The National Audit Office (NAO) will carry out the investigation, examining the OFT’s management of cases and its approach to enforcement and communication. The results will be published early next year, reported Building magazine.

While the NAO will not question the findings of the OFT’s probe into bid rigging and anti-competitive behaviour, it is likely to consider the OFT’s conduct in inquiries since 2005, including the construction case.

The news may have come as a surprise to the OFT, which in 2005 was accused, in another report published by the NAO, of not doing enough high impact work. This led the organisation to switch its strategy to focus on big cases brought into the public eye.

Meanwhile, Contract Journal reported on the continuing client backlash against the 112 companies named on the OFT’s list, with commercial clients now taking action.

One company director told the magazine: ‘It’s the first thing people have been asking when we start the tender process – “are you on the list?” Another source said: ‘We’re not on the list and have been using it to our advantage...If a client doesn’t mention it, then we bring it up straight away. It’s a competitive business at the moment so you use anything that gives you an edge.’