The Competition & Markets Authority (CMA) said that it has reason to suspect that several companies providing roofing and construction services – including building contractors and technical advisors – illegally colluded to rig bids to secure contracts funded through the government’s condition improvement fund (CIF).
The CMA said that it has “particular concerns” in relation to roofing contracts.
CIF money is awarded annually by the Department for Education (DfE) and can involve significant sums of money. Funds are primarily awarded to schools with buildings in poor condition.
Juliette Enser, executive director of competition enforcement at the CMA said: “This fund is incredibly important and ensures that essential building improvements can be made to schools throughout England, meaning students are learning in safe and suitable environments.
“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 investigation, launched this week, has begun with unannounced inspections at several business premises to gather evidence.
Last year the CMA issued fines totalling almost £60 million to firms involved in rigging both public and private sector bids.
The CMA’s investigation comes in advance of the new debarment regime, which is expected to come into force in February 2025. This means that any business that breaks competition law could also be banned from bidding on public contracts, as well as landing the fines and director disqualifications that are already available under the current regime.
