The Competition and Markets Authority (CMA) has raided offices after opening an investigation into suspected bid rigging on school roofing contracts.
The watchdog revealed it has “reason to suspect” that firms providing roofing and construction services had colluded to fix bids for work funded through the Department for Education (DfE).
The CMA said its probe related to roofing contracts funded through the department’s Condition Improvement Fund (CIF). Its team is looking into whether the firms’ activities breached the Competition Act 1998.
The CMA statement said building contractors and technical advisors from several firms are involved. The parties under investigation are not being named at this stage.
The regulator revealed it had already carried out unannounced inspections at several business premises to gather evidence including digital documents. The DfE is supporting the investigation.
If the CMA provisionally decides that the companies have broken competition law, it will issue a statement of objections. Firms can then respond to the statement.
Juliette Enser, executive director of competition enforcement at the CMA, said: “While no assumptions should be made that competition law has been broken at this early stage, we will be investigating this issue thoroughly.
“We will now be making enquiries and assessing the evidence to see whether or not bid rigging has taken place – and what further action may be needed.”
The CIF covers academies, sixth-form colleges and voluntary-aided schools. Funding covers projects that address health and safety issues, building compliance, and buildings in poor condition.
Under the CMA’s leniency programme, a business that has been involved in anti-competitive conduct may be granted immunity from penalties or a significant reduction if they assist with an investigation.
According to the CMA, last year it issued fines totalling almost £60m to firms involved in rigging both public and private sector bids.
Construction is among the sectors most investigated for potential breaches of competition law, according to the Competition and Markets Authority (CMA).
