Competition watchdog launches investigation into possible bid-rigging over school improvement contracts

The Competition and Markets Authority (CMA) has launched an investigation into suspected bid-rigging in relation to school improvement contracts.

It warned it has “reason to suspect” that several companies providing roofing and construction services – including building contractors and technical advisors – have “illegally colluded” to rig bids to secure contracts funded through the government’s Condition Improvement Fund (CIF).

CIF money is awarded annually by the Department for Education (DfE).

Funds are primarily awarded to schools with buildings in poor condition, to ensure educational buildings are safe and remain in good working order.

The watchdog noted: “The purpose of the inspections is to gather any relevant evidence, including physical or digital documents, to assist the CMA in its enquiries.

“[…] If the CMA provisionally decides that the companies have broken competition law, after assessing the evidence gathered, it will issue what is known as a statement of objections. This details the CMA’s concerns and businesses have an opportunity to respond. However, not all cases proceed to a statement of objections, and, at this stage, no assumptions should be made that the law has been broken.”

Launched this week, the investigation has commenced with unannounced inspections by the CMA at several business premises, it revealed.

Juliette Enser, Executive Director of Competition Enforcement, at the CMA said: “This fund is incredibly important and ensures that essential building improvements can be made to schools throughout England, meaning students are learning in safe and suitable environments.

“While no assumptions should be made that competition law has been broken at this early stage, we will be investigating this issue thoroughly. We will now be making enquiries and assessing the evidence to see whether or not bid rigging has taken place – and what further action may be needed.”

Lottie Winson