Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

'CONDITIONS EXIST FOR PRIVATE SECTOR COLLUSION' IN GROUNDS MAINT

  • Comment
Competition for grounds maintenance contracts is weak and an environment exists in which collusion could take place...
Competition for grounds maintenance contracts is weak and an environment exists in which collusion could take place between private companies, according to a study by the Association of London Authorities.

In a report on grounds maintenance contracts in London the ALA found the major firms in the market rarely submitted seriously competitive tenders against each other.

It concluded there was serious competition between the major firms active in the market in only four contracts out of 58 studied.

The ALA has asked the Office of Fair Trading to investigate.

In September the OFT found 11 grounds maintenance companies guilty of price fixing in central goverment grounds maintenance contracts.

'Weak markets and the lack of serious competition create the conditions in which semi monopoly conditions might develop and collusion between firms could take place', said ALA Chair Toby Harris at the launch of the report, Grounds for concern.

The association says its analysis does not prove collusion is taking place between firms but highlights some 'worrying signs'.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.