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Councils investigate possibility of legal action on bid rigging

12 May 2008

Up to 112 construction firms could find they face legal action following accusations of bid rigging, it has emerged.

Last month, the Office of Fair Trading (OFT) issued a Statement of Objections listing the firms as having entered into collusion in order to secure higher payment for contracts.

Now the Times reports that a number of local authorities are looking into the possibility of bringing legal action against the alleged colluders.

According to the publication, nine companies would be likely to face the greatest number of claims as part of class actions.

The remainder would probably relate to specific contracts, with local authorities required to prove they were financially disadvantaged by the bid rigging.

OFT chief executive John Fingleton previously asserted that such activity "harms the economy by distorting competition and keeping prices artificially high".

He added that there are "no excuses" for those businesses found to have broken the law, whether through ignorance or wilful disobedience.

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