22nd September 2009 – FOR IMMEDIATE RELEASE
The construction industry has already moved on ahead of today’s announcement by the Office of Fair Trading (OFT) to fine construction firms for past cover pricing in the construction industry, says the Federation of Master Builders (FMB).
Richard Diment, Director General of the FMB said:
“Today’s fines reflect old practices in the construction market which have since been changed. It is unfair that some firms have been singled out for fines when cover pricing was a widespread practice across the construction industry and was known to the OFT but the fundamental issue now must be to ensure that these companies are not further penalised by public sector clients refusing to do business with them. Given the current economic climate and the fact that the construction industry has already taken positive action to address the issue of cover pricing today’s fines serve little purpose other than adding to the industry’s woes.”
Diment continued:
“The construction industry has got its act together and the launch of the industry wide code of competition law compliance on 20th August will now help ensure that contractors know and meet their obligations. In addition the new Office of Government Commerce (OGC) guidance will hopefully help those companies fined today and help prevent them from being further penalised by public sector clients refusing to work with them in the future.”
Diment concluded:
“What is clear is that today’s decision makes it clear that that the practice of giving or taking a cover price is deemed to be illegal and can result in severe financial penalties for a company as well as possible criminal prosecution.”
