Sharechat Logo

Fletcher unit blows whistle on attempted price-fixing in Christchurch

Thursday 18th April 2019

Text too small?

The Commerce Commission has warned a Christchurch pipeline maintenance firm over attempted price-fixing after a Fletcher Building unit blew the whistle on two former staffers who shared pricing with a rival. 

Quik-Shot Limited and its director, Raad Al-Karbouli, have been issued formal warnings for trying to fix prices relating to pipe rehabilitation services in Christchurch, the Commerce Commission said in a statement. 

“Taking into account the lack of harm caused by Quik-Shot’s unsuccessful bid and the limited duration of the anti-competitive conduct, we considered a formal warning was sufficient in this instance. However, this case is a useful reminder to businesses to maintain strict oversight of their tender and pricing processes and avoid discussing pricing information with competitors,” commission chair Mark Berry said.

The investigation was opened after Fletcher Construction raised concerns about the conduct of two now former employees of its subsidiary company Pipeworks. The investigation ultimately focused on quotes requested by a business seeking pipe rehabilitation services in November 2017. 

According to the commission, the investigation found the Pipeworks employees had provided  Al-Karbouli with the price Pipeworks would be submitting for the contract through WhatsApp, and recommended a price range that Quik-Shot should quote to win the work. 

Al-Karbouli confirmed his receipt of this information and submitted a price for Quik-Shot within this range. These communications between competitors were unknown to the business and it ultimately awarded the contract to Pipeworks, the commission said. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares rise; trading quiet ahead of upcoming earnings
NZ dollar firms against the Aussie heading into federal election
Fletcher-commissioned Deloitte report shows building material costs are low
RBNZ censures ANZ, prescribes risk capital calculation
RBNZ censures ANZ, prescribes risk capital calculation
SeaDragon shareholders back $4M injection to stave off liquidation
SeaDragon shareholders back $4M injection to stave off liquidation
Businesses get some reprieve in March quarter on cheaper prices
NZ manufacturing activity expands on month in April but down on year
Xero's CEO says it still has a cautious future in the US

IRG See IRG research reports