Bid-Rigging Contractors To Face Lower Penalties

September 1, 2009 by katieperry · Comments Off
Filed under: Piling News 

When the story bid rigging in the public sector broke over 18 months ago, it again raised the issues of inefficient tendering in the public sector and cover pricing. Cover pricing is a progress where a potential bidder and a client agree that the bidder will  tender an massively over priced bid without any intention of carrying out the work, in order to satisfy client requirements for a certain amount of competition and ultimately keep costs low.

At the time, leading industry experts claimed that private sector clients were well ahead of the public sector, mainly due to the fact that the government procures projects based on low price rather than quality and reputation.

The scandal prompted calls for an inquiry by the Office of Fair Trading, as piling contractors, and many other industry sectors felt the current situation was illegitimate.

A report in the Sunday Times revealed that the construction companies that co-operate with the OFT, will face much more lenient penalties.