Property Owners Directory condemns price rigging in construction industry

Property Owners Directory condemns price rigging in construction industry

 

London, 17^th April 2008 —-The Property Owners Directory (POD) has welcomed the Office of Fair Trading’s decision to investigate more than 100 construction firms in England for ‘bid rigging’.

 

Andy Stern, POD Director, commented: “This decision shows just how widespread cowboy building practices are in the construction sector, and underlines the importance of finding reliable tradesmen who come recommended.”

 

Some of the biggest names in UK construction were today issued with a statement of objections from the OFT, alleging that companies were involved in cartel-type activities. At the centre of the investigation, which began in 2004, is ‘cover pricing’, where companies place a high bid when tendering for work that they have no desire to win. “What is most worrying from this investigation is that this unscrupulous practice appears to be so systematic throughout the building sector,” Andy says.

 

The POD was set up in response to increasing concerns by property owners and investors who feel they are being ripped off by a tradesman during a building project. “Recent Government surveys have shown that 51 per cent of people do not trust tradesmen and cowboy builders have overtaken used car salesmen as the number one consumer gripe,” says Andy. “Property owners and investors need to make sure they get at least two or three detailed written quotes from building contractors as well as recommendations from these contractors’ clients on work they have recently completed,” Andy recommends.

 

Another consistent problem that homeowners have reported to the POD is that builders continue to artificially inflate prices once they have started a job at an agreed price. “The POD exists to share information about recommended and trustworthy tradesmen throughout the country so that homeowners can avoid the cowboys.”

 

For more information, please contact Andy Stern of the Property Owners Directory on 020 7722 4334 or 07786626200.

 

Notes to editors:

 

1. The POD is a leading website for online recommendations for tradespeople. It is the only recognised supplier for recommended tradespeople of the National Landlords Association, the largest national landlords body in the UK. For more information about the POD see www.propertyownersdirectory.com.
2. Cover pricing involves contractors agree between themselves which one will win the contract under tender on the understanding that the winner will pay a form of compensation payment to the bidders who deliberately quoted higher prices than the winning bid.
3. For more information about the OFT investigation, see www.oft.gov.uk