Cartels uncovered

Rather than residing firmly in spy novels, such activities are now emerging as much more of a reality in the construction industry. Since the Office of Fair Trading set its sights on the industry over a year ago there has been a spate of high profile activity in recent months related to price-fixing amongst contractors. This has included a raid at the head office of major contractor Mowlem, which has just been bought by rival Carillion. This is believed to be part of a probe into activity in the Nottingham area. Other probes included one completed in the roofing sector that saw nine firms being fined over £300,000 for price fixing and one started last summer among demolition contractors.

This focus is unlikely to disappear. The client for the London 2012 construction programme, the Olympic Delivery Authority, has pledged to pay close attention to any bid rigging activity during that high-profile body of work. ODA procurement director Ray Payne confirmed the body would look to work closely with the OFT if any such activity emerged. Given that an estimated 20,000 contracts will be put out to the market, which will receive around 120,000 bids, one can understand the ODA's vigilance.

So where does such price bidding or fixing leave the QS? For the contractor's QS - firmly in the spotlight given their integral role in bidding for work. For the PQS it is less legally clear. Should a firm go to the client first, or straight to the OFT? Could this also impact on adjudication procedures, if proof is provided that claims were falsely issued? Could QSs in fact become whistle-blowers themselves if they become aware of possible collusion? Two experts, one solicitor and one dispute resolution specialist, consider the possible implications for the profession.