The Australian Competition and Consumer Commission (ACCC) is taking legal action against three construction companies for alleged price fixing in tendering for government construction projects in Queensland.
The ACCC is accusing T.F. Woollam & Son Pty Ltd, J.M. Kelly (Project Builders) Pty Ltd and Carmichael Builders Pty Ltd of ‘cover pricing’ between 2004 and 2007.
Cover pricing involves one company colluding with another during the tender process to obtain a price that is intended to be too high to win the contract for the project on price alone. The company then submits this price as a genuine tender.
The ACCC also alleges that in each instance of cover pricing the companies told the client that they had not discussed their tender with another company tendering for the project, when in fact they had done so through the exchange of a cover price. Senior managers were aware of the price fixing, the ACCC claims.
It is alleged that the conduct breached sections 45 and 52 of the Trade Practices Act 1974.
The ACCC is calling for fines for all five respondents, public correction notices and orders requiring the companies to implement trade practices compliance programs.
The matter has been listed for a directions hearing before Justice Logan in the Federal Court, Brisbane, on October 16.
