Investigation into suspected illegal collusion on school repair bids

The Competition and Markets Authority says it has reason to suspect some companies colluded to ‘rig bids’ for the Condition Improvement Fund
11th December 2024, 11:47am

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Investigation into suspected illegal collusion on school repair bids

https://www.tes.com/magazine/news/general/investigation-suspected-illegal-collusion-school-repair-bids
Investigation into suspected illegal collusion on school repair bids

An investigation has been launched into suspicions that several companies have “illegally colluded to rig bids” for Department for Education capital funding to improve the condition of school buildings.

The Competition and Markets Authority (CMA) said it has reason to suspect several companies providing roofing and construction services “illegally colluded to secure contracts funded through the government’s Condition Improvement Fund” (CIF).

CIF funding is primarily awarded to schools with buildings in poor condition, to ensure buildings are safe and remain in good working order.

The CMA said it has particular concerns around roofing contracts. The companies it will be making enquiries about include building contractors and technical advisers.

This comes after Tes revealed that the DfE had terminated funding to a number of projects originally awarded CIF funding “where serious irregularities had been identified within their applications”.

The CMA launched its investigation this week and started with unannounced inspections at several businesses. It has been working closely with the DfE.

Juliette Enser, executive director for competition enforcement at the CMA, said: “This fund is incredibly important and ensures that essential building improvements can be made to schools throughout England, meaning students are learning in safe and suitable environments.

“While no assumptions should be made that competition law has been broken at this early stage, we will be investigating this issue thoroughly. We will now be making enquiries and assessing the evidence to see whether or not bid rigging has taken place - and what further action may be needed.”

Smaller trusts, voluntary aided bodies and colleges have to bid for CIF every year for capital projects. Many use external companies to help them write bids.

The CMA will issue a statement of objections if it provisionally decides companies have broken competition law detailing the concerns and giving the companies the opportunity to respond. Not all cases proceed to this point.

The DfE previously said it has strengthened CIF guidance to protect schools and funding from this risk going forward, and committed to reviewing the CIF system.

The guidance for the 2025-26 round of CIF includes a new declaration that the accounting officer or a member of the senior management team must sign along with the application.

“This is to acknowledge their responsibility for the application, the management of any successful project, and meeting the requirements of the post approval guidance and complying with the terms and conditions,” the guidance states.

The DfE publishes a list of successful projects each year. Projects approved range from urgent roof repairs and electricity works to asbestos removal and boiler replacement.

Shortly after the list was announced earlier this year, several schools were told their funding had been put on hold while a “due diligence process” was carried out.

The number of projects approved for funding has been falling year-on-year, which consultants have called “devastating”.

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