UK competition watchdog launches bid rigging investigation into school construction work

Image: Competition and Markets Authority

The CMA said it had reason to suspect that companies – including building contractors and technical advisors – have been illegally colluding to rig bids to secure contracts.

The contracts in question were funded through the government’s Condition Improvement Fund (CIF) and the CMA said it has “particular concerns” in relation to roofing contracts.

CIF funds are mainly awarded to schools with buildings in poor condition, to ensure they remain safe and in good working order.

The investigation, launched this week, has started with unannounced inspections by the CMA at several business premises.

The CMA said it is gathering evidence, including physical and digital documents that will assist in its enquiries.

If it provisionally finds that companies have broken competition law, it will issue a “statement of objections” that details its findings and gives companies a chance to respond.

But it added, “Not all cases proceed to a statement of objections, and, at this stage, no assumptions should be made that the law has been broken.”

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 businesses which break competition law could also be banned from bidding on public contracts in the future – in addition to the risk of financial penalties and potential director disqualification, which are available under the current regime.