Two years and a handful of days after the Competition and Markets Authority (CMA) handed down fines of £60 million to 10 NFDC member companies involved in a big-rigging, cover pricing and collusion scandal, it appears that the story is not yet over.
Construction Enquirer is reporting this morning that Hong Kong-based developer Circadian Limited has launched legal proceedings against UK construction firm Carey Group, alleging it was overcharged by £2.4 million for demolition work at the Lots Road Power Station redevelopment in West London.
Carey was the owner of Scudder, one of the 10 companies implicated in the CMA investigation. The Scudder name has since been absorbed into the Carey group.
The claim, filed under the Competition Act at the Competition Appeal Tribunal, argues that cartel-like pricing arrangements inflated the cost of construction services beyond fair market levels.
“The Cartel Arrangements caused the price of construction services to be higher than they would otherwise have been,” the legal filing states.
Circadian Limited is a subsidiary of CK Asset Holdings Limited, a major property developer listed on the Hong Kong Stock Exchange with a market capitalisation of £10.9 billion.
Construction Enquirer quotes one “industry expert” saying: “There will be a lot of people keeping a nervous eye on how this pans out because it could set a precedent for other developers to launch similar claims.”
