Watchdog Probes Roofing Firms for School Bid Rigging

AN INVESTIGATION has started into suspected bid-rigging by roofing firms supplying schools, undertaken by the competition watchdog, the Competition and Markets Authority (CMA).

The CMA suspects that several roofing and construction companies – including building contractors and technical advisors – agreed to rig bids to get public funds for improving the condition of school buildings.

It says it “has reason” to suspect the firms colluded to secure contracts funded through the government’s Condition Improvement Fund (CIF). The CMA has particular concerns in relation to roofing contracts.

School Bid Rigging

CIF money is awarded yearly by the Department for Education (DfE) and contracts can involve significant sums of money.

Funding for school buildings in poor condition totalled £450 million this year and work was confirmed for 866 projects, many of which are for roofing repairs and replacement.

Investigating

Juliette Enser, Executive Director of Competition Enforcement, at the CMA said: “This fund is incredibly important and ensures that essential building improvements can be made to schools throughout England.

“While no assumptions should be made that competition law has been broken at this early stage, we will be investigating this issue thoroughly. We will now be making enquiries and assessing the evidence to see whether or not bid rigging has taken place – and what further action may be needed.”

The investigation, launched this week, started with unannounced inspections by the CMA at several business premises. The inspections are to gather any evidence, including physical or digital documents, to assist the CMA in its enquiries. The CMA has also worked closely with the DfE throughout its investigation.

Statement of Objections

The CMA is not naming the suspected firms under scrutiny yet. If it decides that the companies have broken the law, it will issue what is known as a statement of objections.

This details the CMA’s concerns and businesses have an opportunity to respond. However, not all cases proceed to a statement of objections, and, CMA says at this stage no assumptions should be made that the law has been broken.

Public procurement represents around a third of UK public expenditure. Last year the CMA fined firms involved in rigging bids £60 million.

The CMA’s probe comes as the new debarment regime comes into force in February 2025 which bans businesses which break competition law from bidding on public contracts in the future. This will add to the current financial penalties and director disqualifications imposed now.

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