Contractors implicated in OFT probe fear blacklisting

As the Office of Fair Trading (OFT) prepares to publish its findings into its investigations of over 150 firms over bid rigging later this month, some public sector clients have suggested that they may not work with contractors who have been found guilty, according to Construction News (CN).

Balfour Beatty, Kier, Galliford Try, Interserve, Rok and Connaught have all admitted to being involved in the investigation which has seen raids on 57 firms with 38 companies coming forward to give information in return for leniency. The probe, which started in the West Midlands in 2005, has spread around the country and covers projects with a combined value of £3bn. The OFT can impose penalties up to 10% of a firm’s turnover.

The Construction Confederation has called on the Office of Government Commerce to draw up guidance which says that contractors found guilty should not be omitted from tender lists. However an OGC spokeswoman told CN that this would not be possible.

The OFT has said that it would not recommend that clients blacklist firms, but that it is up to individual clients to decide how they draw up their tender lists.