20 Oct 2010

Builders urged to stop rigging bids

7:25 am on 20 October 2010

The Commerce Commission is embarking on an education campaign to stop builders rigging bigs for projects.

The practice, called cover pricing, involves builders talking to each other to come up with a believable but not genuine bid for a job.

The commission says some construction businesses are not aware of competition law and this may be affecting competition for commercial building projects.

As part of the education campaign, the commission is encouraging participants in anti-competitive arrangements to be the first to report the conduct, and gain immunity from prosecution.