The Authority for Consumers & Markets (ACM) has imposed fines on several civil engineering companies for bid rigging in a municipal tender. According to the regulator, Bouwhuis, Timmerhuis and Van Gelder agreed in advance on their bid prices and decided among themselves which company would win the contract.
The ACM said the companies cooperated in an expedited settlement and admitted the violations. As a result, their fines were reduced. Timmerhuis, which ultimately won the contract, was fined 30,000 euros. Bouwhuis received a fine of 15,500 euros. Van Gelder was not fined because it was the first to report the illegal agreement to the ACM, enabling the investigation. The company was therefore granted leniency.
“Companies must submit bids independently. Price-fixing and agreements on who wins a contract are prohibited and harm clients,” said ACM chairperson Martijn Snoep. “It is concerning that this still happens in the construction sector. The ACM intervenes where this occurs and calls on companies to come forward.”
The ACM noted that companies in the construction sector have been fined before for manipulating tenders. Such agreements restrict competition and result in less competitive offers for clients. This usually leads to higher prices, including for government bodies, meaning taxpayers ultimately bear the cost, the regulator said.
Van Gelder stated that the incident was isolated and that measures have been taken to prevent future breaches of the Competition Act.
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