National Federation of Builders angered by OFT punishing small number of companies for widespread practice of cover pricing

The National Federation of Builders has slammed the OFT for fining a 鈥渞andom sample of companies鈥� who could now face 鈥渇inancial hardship鈥�.

The comments by chief executive Julia Evans came as she urged industry clients not to 鈥渋nflict further punishment鈥� on the construction companies fined today by denying them future work.

鈥淚t is acknowledged that at one time cover pricing was a common practice in the construction industry,鈥� she said. 鈥淚t does therefore seem unfair that a small, random sample of companies has been selected by the OFT to be punished as an example to the wider industry.

鈥淎s the construction economy continues to deteriorate, these fines will hit the businesses involved particularly hard. They should not now face additional financial hardship by losing access to public sector work.鈥�

Evans added: 鈥淭he withdrawal of so many companies from the tendering pool could actually make some local markets less competitive, a move which would disadvantage clients as well as contractors.鈥�

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