Law Firm Responds to New Dawn Raid Powers as CMA Targets Construction

A LAW FIRM is responding to new powers to seize evidence in dawn raids by the Competition and Markets Authority (CMA), as the watchdog is targeting investigations on the construction industry.

Last month, the CMA confirmed it is continuing its investigation into the roofing industry which it began in 2024. The watchdog is investigating suspected anti-competitive arrangements in the supply of roofing and other construction services.

The CMA suspects that roofing and construction companies – including building contractors and technical advisors – agreed to rig bids to get public funds for work on school buildings.

So-called ‘dawn raids’ have followed new powers under the Digital Markets, Competition and Consumers Act 2024 to “seize and sift” evidence when conducting unannounced raids on domestic premises. These increase personal scrutiny and anxiety for company directors caught up in CMA investigations.

As the construction industry is one of the sectors being targeted in particular by the CMA, national law firm Mills & Reeve has launched a specialist dawn raids response service for dealing with unannounced inspections by the CMA.

Dawn Raids

Kate Newman, Partner and Head of Competition

Kate Newman, Partner and Head of Competition at Mills & Reeve, commented: “The CMA has made it clear that dawn raids are a real possibility and can target any business, regardless of size or sector.

“What’s more, it isn’t just a business’ headquarters at risk of being raided – any of its facilities across the country or even the homes of company directors could be a target. With the regulator now particularly prioritising growth-critical industries, like construction, food and agribusiness, and life sciences, the risk profile for many businesses has changed significantly.”

The firm’s approach addresses critical points experienced during raids. These include a lack of preparedness, meaning staff often struggle to locate vital documents or inadvertently escalate risks at critical moments. The app serves as an immediate ‘first aid’ resource, while the firm’s lawyers provide on-the-ground support to ensure companies protect their rights and minimise exposure.

Kate continued: “When regulators arrive armed with warrants, they already hold substantial evidence. Companies can compound their problems within the first critical minutes – whether through poorly trained staff, inaccessible documents, or procedural missteps. Our offering has been developed to ensure that businesses are always well prepared and can quickly call on expert support in the event of an unannounced inspection.”

Recent data analysis indicates that unannounced inspections are believed to have been involved in 68% of all infringement decisions by the CMA. It reveals the importance of dawn raids in investigations by the CMA into suspected cartel activity or abuse of dominance.

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