The OFT fines six Construction Recruiters Almost £40m for price fixing and collective boycotting

price fixing

Six construction recruitment companies have been fined £39.27m following a lengthy price fixing investigation by the OFT.

Eden Brown, Fusion People, CDI AndersElite, Hays Specialist Recruitment, Hill McGlynn and Associates, A Warwick Associates, Beresford Blake Thomas and Henry Recruitment were all judged to have breached the Competition Act 1998. Hays has taken the biggest hit being fined a whopping £30,359,129 for its part in the cartel.

These companies formed a price and quality cartel innocuously called the ‘Construction Recruitment Forum‘ which met 5 times between 2004 and 2006 to fix fee rates for Parc UK (an intermediary which had placed pressure on the allied recruiters’ margins) and a range of construction clients, the biggest victuims being Vinci, Taylor Woodrow and Atkins.

Click here for the full OFT press release.

About the Author:

  • Mick HughesMick Hughes, Senior Consultant - Railway Engineering, Technology Resourcing Ltd.Mick has specialised in the recruitment of Railway Engineering professionals since 1994 and has led our Railways division since 1998, providing skilled engineering staff to work on some of the most prestigious rail projects in the world.Core skills recruited include: Signalling Design, IRSE license holders, Systems Engineering, Systems Assurance, Safety Assurance, Risk, RAMS, Validation and Verification, Permanent Way, Electrification / OHLE, Project Engineering, Project Management, CAD, Project Support, Civil Engineers, Consultant Design, Design Management, Installation Management, Test & Commissioning.Mick works in partnership with his clients, delivering a consultative service that is accurate, efficient and highly professional, resulting in long-term relationships with many railway consultancies, vendors, contractors, infrastructure owners and operators, throughout the UK and overseas.
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      Chris is just what you want from a recruitment specialist – personable, professional and always delivers. He is very thorough in everything that he does and focuses on quality of candidates rather than quantity. Whenever I get a short list of candidates I know they will always be relevant and quality people for me to choose from.Chris takes a real interest in planning and construction and has taken time out to attend some of the training courses I run to understand more about the industry and the roles within it. He helps run my Planning/Project Management under the NEC Form of Contract LinkedIn group which is providing great benefit to our profession.