North Midland Construction’s fine of £1.54m has been reduced to £300,000 on appeal.
GMI Construction Holdings and GMI Construction Group had been fined £1.8m by the OFT for two alleged incidents of cover pricing in 2000 and 2005. However, the CAT decided that the OFT had failed to prove its case, relying on witness statements and disputed hearsay evidence, and set aside the findings and penalties.
The appeal of AH Willis, facing a £120,000 fine, was based on its claim that the cover price supplied to another construction company was provided by a self-employed costs estimator without its knowledge. The appeal tribunal accepted this and also agreed that other infringements were also unproven. Findings and penalties against AH Willis were also set aside.
In the case of North Midland Construction, the CAT decided that the OFT’s case was sufficiently robust but agreed that the fine of more than £1.54m was excessive and disproportionate, and reduced it to £300,000.
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