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Saturday 19th April 2008

Of building controls and cartels

Optimalisation algorithms of building control system for intelligent building: Courtesy Alena Pivonka: http://dce.felk.cvut.cz/dipomky/2005.../eng/

The Building Control Training Academy at Westminster, London, has been officially launched with the help of Napier University’s Dr Sean Smith. He has been instrumental in designing Napier’s new post-graduate, Building Performance and Technical Direction course, which welcomes its inaugural students in September. Coming at a time when The Office of Fair Trading has formally accused 112 construction firms in England of participating in "bid rigging"the biggest investigation of cartel activity to date, building 'control' would seem to be a red hot topic


Dr Sean Smith, Acting Associate Dean (Knowledge Transfer), Faculty of Engineering, Computing and Creative Industries justifiably boasts: “Our new course will have a sharp focus on Building Control. The new academy in London has recognised our innovations in the field and that is why we were the only institution invited to speak at the launch.

“Building Control, put simply, is the system whereby buildings are checked to ensure that they meet regulations, such as driving down carbon emissions. It is a wide remit, which is constantly being updated, but our established work with construction companies has put us at the forefront.”

“We have been asked to work with the academy in regard to our online learning and lifelong learning expertise which will play a crucial role for the industry. Architects, Technical Directors and Building Inspectors will be able to access modules from the course which will enable them to progress in their chosen fields, be it part-time, full-time or through distance learning. There is a government focus on lifelong learning and an increasing focus on demand-led provision for industry.

 “Over the next 10-15 years provisions required for infrastructure and the built environment will be significant, including the 2012 London Olympics, a 45% increase in new build housing targets and around 2,000 projected new schools. Consequently, there will be a need for professionals to ensure that these new builds fully comply with regulations.”

OFT investigates some 240 alleged  infringements
The OFT investigation started with a specific complaint in the East Midlands in 2004, and has grown to approximately 240 alleged infringements cover projects, including tenders for schools, universities and hospitals. It visited the sites of 57 firms.

Some of the biggest names in construction in the UK — including Balfour Beatty, Carillion and ISG  granted leniency for cooperation, and Henry Boot, Connaught, Interserve and Kier were accused of defrauding the public sector by hundreds of millions of pounds. They were  issued with a "statement of objections" from the OFT, alleging that they participated in cartel-type activity in bidding for thousands of public sector construction contracts, worth £3bn, including tenders for schools, universities and hospitals.

Hefty  fines could result from the investigation, which began in 2004 after a complaint from an East Midlands council and spread across England. The focus of the OFT’s investigation is on “cover pricing”, where companies place a high bid for work that they have no intention of winning so that they are not left off a client’s tender list. The cover price is fixed after consultation with another supplier.

he OFT, disclosed that the price of building work at a college leapt by 25% after four bidders agreed artificially high bids and winning bid for a primary school contract was £500,000 over client budget. Cover pricing has been illegal since 2000. The OFT investigated thousands of contracts but is focused on 240 alleged offences which it is pursuing.

Source: http://www.allmediascotland.com/media_releases/2536/
Source: http://www.oft.gov.uk/news/press/2008/52-08
Web:http://www.wmin.ac.uk/

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