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More OFT fines reduced on appeal

15 Apr 11 Another slate of construction companies have had their Office of Fair Trading (OFT) fines reduced on appeal by more than 60%.

Crest Nicholson, ISG Pearce and Quarmby Construction were unsuccessful in their bid to exonerate them of liability but did manage to get their fines significantly reduced by the Competition Appeal Tribunal (CAT).

Crest Nicholson and ISG share liability as past and present parent companies of Pearce Construction, one of 103 companies (including associated subsidiaries) on the original OFT list of offenders who were collectively fined close to £130m last year for bid rigging.

The widespread offence was colluding on bids in a practice known as cover pricing. This ensured that, although they submitted bids in order to stay on tender lists for future projects, their bids were high enough to ensure they would not be selected for contracts that they did not want to undertake.

Crest Nicholson and ISG Pearce saw their fine reduced by the appeal tribunal to £950,000 from an original £5,188,846. The CAT's judgment on this can be read in full by clicking here.

Quarmby’s fine was reduced on appeal from an original £881,749 to £213,750. The CAT's judgment on this can be read in full by clicking here.

The fine for GAJ Construction and GAJ (Holdings) was reduced on appeal from £109,683 to £42,750.

Allenbuild and Renew saw their fine cut from £3,547,931 to £926,250.

Robert Woodhead’s fine was reduced from £411,595 to £151,725.

JH Hallam (Contracts) and JH Hallam had their fine reduced from £359,588 to £99,000.

Hobson & Porter’s original penalty of £547,507 is cut to £123,750.

Francis Construction and Barrett Estate Services saw their fine cut from £530,238 to £169,575.

The CAT's judgment on this group of appeals can be read in full by clicking here.

This means that only three appeal decisions remain outstanding. These are the appeals of AH Willis & Sons, GMI Construction and North Midland Construction.

Those reduced fines in full

The total list of OFT fines reduced by the  Competition Appeal Tribunal to date reads:

Kier:  £17,894,438 reduced to £1,700,000

Galliford Try:  £8,333,329 reduced to £1,395,000

Ballast Nedam:  £8,333,116 reduced to £534,375

Bowmer& Kirkland: £7,574,736 reduced to £1,524,000

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Durkan:  £6,720,551 reduced to £2,436,000

John Sisk:  £6,191,627 reduced to 356,250

Crest Nicholson and ISG Pearce:  £5,188,846 reduced to £213,750

Allenbuild and Renew:  £3,547,931 reduced to £926,250

Apollo:  £2,150,536 reduced to £399,000

Sol:  £1,835,702 reduced to £702,000

Seddon:  £1,516,646 reduced to £492,000

Tomlinson: £1,269,270 reduced to £468,000

Thomas Vale:  £1,020,473 reduced to £171,000

Quarmby:  £881,749 reduced to £213,750

Corringway Conclusions:  £769,592 reduced to £119,344

Hobson & Porter:  £547,507 reduced to £123,750.

Francis Construction and Barrett Estate Services:  £530,238 reduced to £169,575

Interclass:  £464,406 reduced to £324,000

Robert Woodhead:  £411,595 reduced to £151,725

 JH Hallam:  £359,588 reduced  to £99,000

GAJ Construction and GAJ (Holdings):  £109,683 reduced to £42,750.

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