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Construction companies collude at the "calorie club"

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Posted by James Mace at 09:10 on 01 May 2008
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News & Updates

Two weeks ago, 112 construction companies were accused of rigging bids for contracts by the Office of Fair Trading (OFT).

And according to the Times Online, members of these companies had a series of get-togethers known as the “calorie club” These meetings were so-called because “everyone gets fat at the calorie club”.

The “calorie club” is at the centre of the investigation into the alleged cartel activity by the OFT. One contractor claimed: "The calorie club was well known in the industry as a place where firms could get together and discuss work and prices. We were invited to come along a few times, but our speciality is private housing and the club was mainly concerned with divvying-up public housing jobs."

The group is thought to be most active in the South East and would hold its meetings in hotels, restaurants or bars. They were held in different locations each time and would usually involve eight contractors.

The companies accused of price rigging have until June 30 to respond to the allegations made against them.

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