Price fixing investigation

Five construction companies in the UK are being investigated by the Office of Fair Trading (OFT) regarding allegations of price fixing.

The OFT is understood to have carried out raids on offices owned by Mowlem, Bluestone Construction and three other unnamed publicly quoted construction companies.

According to the OFT, the investigations are focusing on cover pricing practices, where several companies deliberately submit late and inferior bids to help another secure the work. The companies are believed to have used the process to secure contracts involving schools and hospitals.