The Competition and Markets Authority (CMA) has carried out searches at offices after launching an investigation into suspected bid rigging on school roofing contracts.
The watchdog found that it had "grounds to suspect" that companies providing roofing and construction services colluded to fix the winners of tenders for work funded through the Department for Education (DfE).
The CMA stated that the investigation concerns roofing contracts funded through the Department's Condition Improvement Fund (CIF). The CMA team is currently investigating whether the companies' activities breached the Competition Act 1998.
The CMA's statement revealed that construction contractors and technical consultants from several companies are involved in the investigation. The parties under investigation have not yet been named.
The regulator reported that it has already conducted unannounced inspections at several business premises to gather evidence, including digital documents. The Department for Education is supporting the investigation.
If the CMA issues a provisional decision that companies have breached competition law, it will issue a statement of objections. The firms will then have the opportunity to respond.
Juliette Enser, Executive Director of Competition at the CMA, said: “No assumptions should be made at this early stage that competition law has been breached, but we will thoroughly investigate the issue.
“We will now make inquiries and assess evidence to establish whether bid-rigging has occurred – and what further steps may be necessary.”
The CIF covers academies, sixth form colleges, and voluntarily aided schools. The funding covers projects addressing health and safety issues, compliance with building regulations, and building improvements.
Under the CMA’s leniency program, businesses involved in anti-competitive behavior may receive immunity from fines or significant reductions in penalties if they assist in the investigation.
According to the CMA, last year it imposed fines totaling nearly £60 million on companies involved in bid-rigging in both the public and private sectors.