Another demolition director banned after bid rigging probe

Grant Prior 2 years 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

Fraudsters jailed after £22m construction tax scam

Gang sentenced after bogus payroll firm failed to pay VAT and CIS money to revenue
2 hours ago

MPB clinches substructure for HS2 Curzon Street station

Contracts for station superstructure to be let in coming months
18 hours ago

Flood defence spend rises to record £2.65bn over two-years

Key projects mapped as Government injects extra £250m to shore up defences
59 mins ago

Turnaround strategy continues to pay off for Careys

Profits continue to rise as £50m investment plan in full swing
19 hours ago

All change on £800m Eastern Highways Alliance

Octavius and Winvic sweep up all three lots in new line-up
58 mins ago

Vinci bags first phase of £350m Stockport scheme

Contractor edges-out Willmott Dixon to start major mixed-used project
18 hours ago

Crest Nicholson slumps to £144m loss

Incoming CEO review unearths further writedowns on fire remediation and closed divisions
1 day ago

Piling job cuts loom over safety regulator project delays

Bottleneck in high rise project approvals hits demolition and foundation firms
2 days ago

Developer Ghelamco swaps to self delivery for Battersea tower

John F Hunt no longer part of project team on 24-storey resi scheme
2 days ago

Pagabo starts renewal race for two mega frameworks

Contractors and developers asked for input on reshaping deals worth billions
1 day ago

Giant HS2 viaduct deck slide breaks records: Video

EKFB consortium oversees four-day installation
1 day ago

Ferrovial lands £230m National Grid tunnel

Work to start shortly on Grain to Tilbury electricity infrastructure upgrade
2 days ago

Tax-row tunnellers down tools on Balfour Hinkley job

Lodge allowance tax dispute hits tunnelling site
2 days ago

Go-ahead for Square Mile’s fifth tallest tower

Multiplex set to start 99 Bishopsgate job late next year
2 days ago

New £4.5bn funding model for stalled London rail schemes

Residential TIF funding offers key to unlock Bakerloo and DLR extensions
2 days ago

Speedy Hire latest to be hit by slow CP7 rail spending

Plant-hire firm flags issues with latest Network Rail spending round
2 days ago

FM Conway family chair steps away from business after Vinci deal

Joanne Conway steps away as Andrew Hansen becomes MD
2 days ago

Manchester Hotspur Press mill scheme rescued

37-storey student tower will now go-ahead
2 days ago

Watkin Jones to advance 260-room London aparthotel

Development deal for New Kent Road project
4 days ago

Plan for film studios switched to data centre cluster

Plans in for six data centre buildings in Buckinghamshire
6 days ago

Hunt for firm to deliver £75m Cambridge Civic Quarter

Work includes £41m Guildhall and £21m Corn Exchange revamps
5 days ago

Plans in for £200m Middlesbrough regen scheme

Wates is lined up to deliver landmark Gresham rental homes scheme
5 days ago

£600m Bristol shopping centre redevelopment approved

Galleries centre will be demolished for homes and offices quarter
5 days ago

Ant Yapi lands ultra prime London homes job

Prestige scheme replicates Regency mansions around nearby Regent’s Park
5 days ago

CITB survives another review

Report published after two more years talking about skills crisis
6 days ago

Strucktor wins record M&E package from Ardmore

Major subcontract on £240m Tribeca life science development
5 days ago

Over 800 high-rise resi jobs stalled by safety regulator

Building safety regulator project logjam hits Government growth plan
6 days ago

McAlpine under fire after another panel comes loose from hotel

High winds cause more problems at recently completed Woking hotel
7 days ago

McGee starts demolition for £500m South Bank scheme

Former ITV studios will be replaced by two office towers
6 days ago

Four arrested after hospital construction site burglary

Damage and copper wiring stolen at Hinckley and District General Hospital new building
7 days ago

Contractor services