Another demolition director banned after bid rigging probe

Grant Prior 11 months ago
Share

The Competition and Markets Authority (CMA) has secured the disqualification of another company director following its investigation into illegal cartel behaviour within the demolition industry.

Nicholas Brown, now Managing Director of the Brown and Mason Group, was a director of Brown and Mason Limited at the time the illegal cartel activity took place.

Following a number of admissions, Brown has been disqualified for a period of seven years.

He admitted being personally involved in two breaches of competition law affecting contracts for demolition services with a total value of over £30m including one relating to the Shell Building on London’s Southbank, and the other relating to the Lots Road Power Station in London.

‘Compensation payments’ with an aggregate value of £700,000 (excluding VAT) were paid to Brown and Mason by two competitors in return for Brown and Mason’s participation in the anti-competitive agreements.

Brown has admitted taking a ‘central role’ in this conduct, including by instructing staff to collect the payments by issuing invoices relating to ‘fictional services and goods’ that were not in fact ever supplied by Brown and Mason.

He further acknowledged that, as a shareholder in Brown and Mason, he stood to benefit personally from these payments, and that he understood at the time that his conduct was wrong.

In March 2023, 10 construction firms were fined nearly £60m after the CMA found following a full investigation they had broken competition law by engaging in a form of collusive tendering known as ‘cover bidding’.

Typically, cover bidding involves companies, when bidding in a competitive tender for a contract, agreeing with each other that one or more of them will place a bid that is deliberately intended to lose the contract, thereby reducing the intensity of competition.

The 10 companies involved were: Brown and Mason, Cantillon, Clifford Devlin, DSM, Erith, JF Hunt, Keltbray, McGee, Scudder and Squibb.

In addition, the CMA found that five of the firms, on at least one occasion each, were involved in arrangements by which the ‘losers’ of the contracts were set to be compensated by the winner. Some firms produced false invoices to hide this part of the illegal behaviour.

In February this year, the CMA secured legally binding disqualification undertakings from Michael Cantillon (former director of Cantillon), David Darsey (former director of Erith) and Paul Cluskey (director of Cantillon).

Brown did not offer an undertaking until after the CMA put him on formal notice of its intention to apply to the court for a disqualification order against him. Had he given an undertaking before the CMA issued the formal notice, his period of disqualification would not have been as long.

Giving an undertaking means Brown agrees to be disqualified from being a director of a company, or otherwise being involved in the management of any UK company, for seven years unless he has the permission of the court.

Michael Grenfell, the CMA’s Executive Director of Enforcement, said: “Company directors need to take personal responsibility for ensuring that their companies comply with competition law. People and businesses need to be protected from illegal anti-competitive practices. Company directors who fall short can expect to face the prospect of disqualification.”

Latest news

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
15 hours ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
20 hours ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
20 hours ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
20 hours ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
20 hours ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
2 days ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
2 days ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
2 days ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
2 days ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
3 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
2 days ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
3 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
2 days ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
2 days ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
3 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
3 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
4 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
3 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
3 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
3 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
4 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
4 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
4 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
5 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
4 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
5 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
4 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
5 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
5 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
5 days ago

Contractor services