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Councils are being urged to take building firms to court, after the Office of Fair Trading (OFT) accused contractors of bid-rigging. The OFT published a list of 112 firms last week which were alleged to have taken part in a cartel to fix prices when bidding for business. The list included some of the biggest names in the industry, including Carillion and Balfour Beatty. The chief executive of the Association for Public Service Excellence (APSE), Paul O'Brien, said councils could sue contractors for any possible losses. ‘Local authorities have a duty to pursue best value, and where this practice has been going on, they might try and seek recovery of any leakage from the public purse.' He also rejected claims that councils colluded with contractors over price-fixing. ‘To blame the clients is just absurd. The myth that the private sector can deliver has been shattered,' he said. Legal firms such as Cohen, Milstein, Hausfeld & Toll are now lining up to help councils take legal action. ‘We have been following this issue for some time and welcome the OFT's firm action,' said partner, Anthony Maton. ‘The Government and local authorities across the country will also have made overpayments on school and hospital buildings as a result of this fraudulent activity, and we would urge them to come forward and contact us.' A parliamentary committee has called for MPs to be given more details about specific PFI agreements. The liaison committee said it would help MPs decide whether the contracts were good value for money. Larne BC has been criticised by Northern Ireland ombudsman, Tom Frawley, over how it tenders for contracts.

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WHITEHALL

Councils urged to sue over bid cartel

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