Contractors found guilty of bid-rigging may face loss of public sector work

The Highways Agency is understood to be investigating whether its contractors are involved in the Office of Fair Trading inquiry into bid-rigging, fuelling fears that those found guilty may be axed from public work.

It is understood that the government body, which spends more than £1bn with the industry each year, has asked City lawyers if at least one of its contractors is caught up in a four-year OFT probe, the findings of which were published today.

Firms found guilty of cover pricing and bid rigging may be fined up to 10% of UK turnover, which could be as much as £300m for some.

Balfour Beatty, Carillion and Kier are among the 112 companies formally accused of bid-rigging activities.

One public sector body beside the Highway Agency has been asking contractors if they are involved in the inquiry. A source said: “Clients want to protect themselves from damage when the results of the inquiry are released. They’re asking themselves if they should deal with people caught up in it.â€

Meanwhile, industry bodies are urging the Office of Government Commerce (OGC) to clarify its advice to public sector procurers on the legality of dropping implicated contractors from framework lists.

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